[House Report 115-1000]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-1000
======================================================================
STRENGTHENING THE ECONOMY WITH CRITICAL UNTAPPED RESOURCES TO EXPAND
AMERICAN ENERGY ACT
_______
November 2, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bishop of Utah, from the Committee on Natural Resources, submitted
the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 4239]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 4239) to distribute revenues from oil and gas
leasing on the outer Continental Shelf to certain coastal
States, to require sale of approved offshore oil and gas
leases, to promote offshore wind lease sales, and to empower
States to manage the development and production of oil and gas
on available Federal land, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Strengthening the
Economy with Critical Untapped Resources to Expand American Energy
Act'' or the ``SECURE American Energy Act''.
(b) Table of Contents.--The table of contents for this Act is the
following:
Sec. 1. Short title; table of contents.
TITLE I--OFFSHORE
Sec. 101. Short title.
Sec. 102. Disposition of revenues from oil and gas leasing on the outer
Continental Shelf to producing States.
Sec. 103. Limitations on the amount of distributed qualified outer
Continental Shelf revenues under the Gulf of Mexico Energy Security Act
of 2006.
Sec. 104. Limitation of authority of the President to withdraw areas of
the outer Continental Shelf from oil and gas leasing.
Sec. 105. Modification to the outer Continental Shelf leasing program.
Sec. 106. Inspection fee collection.
Sec. 107. Arctic rule shall have no force or effect.
Sec. 108. Application of outer Continental Shelf Lands Act with respect
to territories of the United States.
Sec. 109. Wind lease sales for the outer Continental Shelf.
Sec. 110. Reducing permitting delays for taking of marine mammals.
Sec. 111. Effect.
TITLE II--ONSHORE
Sec. 201. Short title.
Sec. 202. Cooperative federalism in oil and gas permitting on available
Federal land.
Sec. 203. Conveyance to certain States of property interest in State
share of royalties and other payments.
Sec. 204. Permitting on non-Federal surface estate.
Sec. 205. State and Tribal authority for hydraulic fracturing
regulation.
Sec. 206. Review of Integrated Activity Plan for the National Petroleum
Reserve in Alaska.
Sec. 207. Protested lease sales.
Sec. 208. Clarification regarding liability under Migratory Bird Treaty
Act.
TITLE I--OFFSHORE
SEC. 101. SHORT TITLE.
This title may be cited as the ``Accessing Strategic Resources
Offshore Act'' or the ``ASTRO'' Act.
SEC. 102. DISPOSITION OF REVENUES FROM OIL AND GAS LEASING ON THE OUTER
CONTINENTAL SHELF TO PRODUCING STATES.
Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338)
is amended--
(1) by striking ``All rentals'' and inserting the following:
``(a) In General.--Except as otherwise provided in this section, all
rentals''; and
(2) by adding at the end the following:
``(b) Distribution of Revenue to Producing States.--
``(1) Definitions.--In this subsection:
``(A) Covered planning area.--
``(i) In general.--Subject to clause (ii),
the term `covered planning area' means each of
the following planning areas, as such planning
areas are generally depicted in the later of
the 2017-2022 Outer Continental Shelf Oil and
Gas Leasing Proposed Final Program, dated
November 2016, or a subsequent oil and gas
leasing program developed under section 18 of
the Outer Continental Shelf Lands Act (43
U.S.C. 1344):
``(I) Mid-Atlantic.
``(II) South Atlantic.
``(III) Any planning area located off
the coast of Alaska.
``(ii) Exclusions.--The term `covered
planning area' does not include any area in the
Atlantic--
``(I) north of the southernmost
lateral seaward administrative boundary
of the State of Maryland; or
``(II) south of the northernmost
lateral seaward administrative boundary
of the State of Florida.
``(B) Producing state.--The term `producing State'
means each of the following States:
``(i) Virginia.
``(ii) North Carolina.
``(iii) South Carolina.
``(iv) Georgia.
``(v) Alaska.
``(C) Qualified revenues.--
``(i) In general.--The term `qualified
revenues' means revenues derived from rentals,
royalties, bonus bids, and other sums due and
payable to the United States under oil and gas
leases entered into on or after the date of the
enactment of this Act for an area in a covered
planning area.
``(ii) Exclusions.--The term `qualified
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;
``(II) revenues generated from leases
subject to section 8(g); and
``(III) the portion of rental
revenues in excess of those that would
have been collected at the rental rates
in effect before August 5, 1993.
``(2) Deposit of qualified revenues.--
``(A) Phase i.--With respect to qualified revenues
under leases awarded under the first leasing program
approved under section 18(a) that takes effect after
the date of the enactment of this section, the
Secretary of the Treasury shall deposit or allocate, as
applicable--
``(i) 87.5 percent into the general fund of
the Treasury; and
``(ii) 12.5 percent to States in accordance
with paragraph (3).
``(B) Phase ii.--With respect to qualified revenues
under leases awarded under the second leasing program
approved under section 18(a) that takes effect after
the date of the enactment of this section, the
Secretary of the Treasury shall deposit or allocate, as
applicable--
``(i) 75 percent into the general fund of the
Treasury; and
``(ii) 25 percent to States in accordance
with paragraph (3).
``(C) Phase iii.--With respect to qualified revenues
under leases awarded under the third leasing program
approved under section 18(a) that takes effect after
the date of the enactment of this section and under any
such leasing program subsequent to such third leasing
program, the Secretary of the Treasury shall deposit or
allocate, as applicable--
``(i) 50 percent into the general fund of the
Treasury; and
``(ii) 50 percent into a special account in
the Treasury from which the Secretary of the
Treasury shall disburse--
``(I) 75 percent to States in
accordance with paragraph (3);
``(II) 12.5 percent to the Secretary
of Transportation for energy
infrastructure development in coastal
ports; and
``(III) 12.5 percent to the Secretary
of the Interior for units of the
National Park System.
``(3) Allocation to producing states.--
``(A) In general.--Subject to subparagraph (B), the
Secretary of the Treasury shall allocate the qualified
revenues distributed to States under paragraph (2) to
each producing State in an amount based on a formula
established by the Secretary of the Interior, by
regulation, that--
``(i) is inversely proportional to the
respective distances between--
``(I) the point on the coastline of
the producing State that is closest to
the geographical center of the
applicable leased tract; and
``(II) the geographical center of
that leased tract;
``(ii) does not allocate qualified revenues
to any producing State that is further than 200
nautical miles from the leased tract; and
``(iii) allocates not less than 10 percent of
qualified revenues to each producing State that
is 200 or fewer nautical miles from the leased
tract.
``(B) Payments to coastal political subdivisions.--
``(i) In general.--The Secretary of the
Treasury shall pay 20 percent of the allocable
share of each producing State determined under
this paragraph to the coastal political
subdivisions of the producing State.
``(ii) Allocation.--The amount paid by the
Secretary of the Treasury to coastal political
subdivisions shall be allocated to each coastal
political subdivision in accordance with
subparagraphs (B) and (E) of section 31(b)(4).
``(iii) Definition of coastal political
subdivision.--In this subparagraph, the term
`coastal political subdivision' means--
``(I) with respect to a contiguous
coastal State, a political subdivision
of such State, any part of which is--
``(aa) within the coastal
zone of the State (as defined
in section 304 of the Coastal
Zone Management 2 Act of 1972
(16 U.S.C. 1453)); and
``(bb) not more than 200
nautical miles from the
geographic center of any leased
tract; and
``(II) with respect to a
noncontiguous coastal State--
``(aa) a county-equivalent
subdivision of the State for
which--
``(AA) all or part
lies within the coastal
zone of the State (as
defined in section 304
of the Coastal Zone
Management Act of 1972
(16 U.S.C. 1453)); and
``(BB) the closest
coastal point is not
more than 200 nautical
miles from the
geographical center of
any leased tract on the
outer Continental
Shelf; or
``(bb) a municipal
subdivision of the State for
which--
``(AA) the closest
point is more than 200
nautical miles from the
geographical center of
a leased tract on the
outer Continental
Shelf; and
``(BB) the State has
determined to be a
significant staging
area for oil and gas
servicing, supply
vessels, operations,
suppliers, or workers.
``(4) Administration.--Amounts made available under paragraph
(2)(B) shall--
``(A) be made available, without further
appropriation, in accordance with this subsection;
``(B) remain available until expended;
``(C) be in addition to any amounts appropriated
under--
``(i) chapter 2003 of title 54, United States
Code;
``(ii) any other provision of this Act; and
``(iii) any other provision of law; and
``(D) be made available during the fiscal year
immediately following the fiscal year in which such
amounts were received.''.
SEC. 103. LIMITATIONS ON THE AMOUNT OF DISTRIBUTED QUALIFIED OUTER
CONTINENTAL SHELF REVENUES UNDER THE GULF OF MEXICO
ENERGY SECURITY ACT OF 2006.
Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006
(43 U.S.C. 1331 note) is amended to read as follows:
``(1) In general.--The total amount of qualified outer
Continental Shelf revenues described in section 102(9)(A)(ii)
that are made available under subsection (a)(2) shall remain
available until expended and shall not exceed--
``(A) for each of fiscal years 2019 through 2028,
$500,000,000; and
``(B) for each of fiscal years 2029 through 2059,
$649,800,000.''.
SEC. 104. LIMITATION OF AUTHORITY OF THE PRESIDENT TO WITHDRAW AREAS OF
THE OUTER CONTINENTAL SHELF FROM OIL AND GAS
LEASING.
(a) Limitation on Withdrawal From Disposition of Lands on the Outer
Continental Shelf.--Section 12 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1341) is amended by amending subsection (a) to read as
follows:
``(a) Limitation on Withdrawal.--
``(1) In general.--Except as otherwise provided in this
section, no lands of the outer Continental Shelf may be
withdrawn from disposition except by an Act of Congress.
``(2) National marine sanctuaries.--The President may
withdraw from disposition any of the unleased lands of the
outer Continental Shelf located in a national marine sanctuary
designated in accordance with the National Marine Sanctuaries
Act (16 U.S.C. 1431 et seq.) or otherwise by statute.
``(3) Existing withdrawals.--
``(A) In general.--Except for the withdrawals listed
in subparagraph (B), any withdrawal from disposition of
lands on the outer Continental Shelf before the date of
the enactment of this subsection shall have no force or
effect.
``(B) Exceptions.--Subparagraph (A) shall not apply
to the following withdrawals:
``(i) Any withdrawal in a national marine
sanctuary designated in accordance with the
National Marine Sanctuaries Act.
``(ii) Any withdrawal in a national monument
declared under section 320301 of title 54,
United States Code, or the Act of June 8, 1906
(ch. 3060; 34 Stat. 225).
``(iii) Any withdrawal in the North Aleutian
Basin Planning Area, including Bristol Bay.''.
(b) Termination of Authority To Establish Marine National
Monuments.--Section 320301 of title 54, United States Code, is amended
by adding at the end the following:
``(e) Limitation on Marine National Monuments.--
``(1) In general.--Notwithstanding subsections (a) and (b),
the President may not declare or reserve any ocean waters (as
such term is defined in section 3 of the Marine Protection,
Research, and Sanctuaries Act of 1972 (33 U.S.C. 1402)) or
lands beneath ocean waters as a national monument.
``(2) Marine national monuments designated before the date of
the enactment of this subsection.--This subsection shall not
affect any national monument designated by the President before
the date of the enactment of this Act.''.
SEC. 105. MODIFICATION TO THE OUTER CONTINENTAL SHELF LEASING PROGRAM.
Section 18(e) of the Outer Continental Shelf Lands Act (43 U.S.C.
1344(e)) is amended by adding at the end the following: ``The Secretary
shall include in any such revised leasing program each unexecuted lease
sale that was included in the most recent leasing program and the
Secretary shall execute each such lease sale as close as practicable to
the time specified in the most recent leasing program. Section
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C.
4332) shall be deemed to have been satisfied with respect to the
execution of such unexecuted lease sales if the Secretary, in the
Secretary's sole discretion, determines that such section was satisfied
with respect to such unexecuted lease sales for the most recent leasing
program.''.
SEC. 106. INSPECTION FEE COLLECTION.
Section 22 of the Outer Continental Shelf Lands Act (43 U.S.C. 1348)
is amended by adding at the end the following:
``(g) Inspection Fees.--
``(1) Establishment.--The Secretary of the Interior shall
collect from the operators of facilities subject to inspection
under subsection (c) non-refundable fees for such inspections--
``(A) at an aggregate level equal to the amount
necessary to offset the annual expenses of inspections
of outer Continental Shelf facilities (including mobile
offshore drilling units) by the Secretary of the
Interior; and
``(B) using a schedule that reflects the differences
in complexity among the classes of facilities to be
inspected.
``(2) Ocean energy safety fund.--There is established in the
Treasury a fund, to be known as the `Ocean Energy Safety Fund'
(referred to in this subsection as the `Fund'), into which
shall be deposited all amounts collected as fees under
paragraph (1) and which shall be available as provided under
paragraph (3).
``(3) Availability of fees.--
``(A) In general.--Notwithstanding section 3302 of
title 31, United States Code, all amounts deposited in
the Fund--
``(i) shall be credited as offsetting
collections;
``(ii) shall be available for expenditure for
purposes of carrying out inspections of outer
Continental Shelf facilities (including mobile
offshore drilling units) and the administration
of the inspection program under this section;
``(iii) shall be available only to the extent
provided for in advance in an appropriations
Act; and
``(iv) shall remain available until expended.
``(B) Use for field offices.--Not less than 75
percent of amounts in the Fund may be appropriated for
use only for the respective Department of the Interior
field offices where the amounts were originally
assessed as fees.
``(4) Initial fees.--Fees shall be established under this
subsection for the fiscal year in which this subsection takes
effect and the subsequent 10 years, and shall not be raised,
except as determined by the Secretary to be appropriate as an
adjustment equal to the percentage by which the Consumer Price
Index for the month of June of the calendar year preceding the
adjustment exceeds the Consumer Price Index for the month of
June of the calendar year in which the fee was determined or
last adjusted.
``(5) Annual fees.--Annual fees shall be collected under this
subsection for facilities that are above the waterline,
excluding drilling rigs, and are in place at the start of the
fiscal year. Fees for fiscal year 2019 shall be--
``(A) $10,500 for facilities with no wells, but with
processing equipment or gathering lines;
``(B) $17,000 for facilities with 1 to 10 wells, with
any combination of active or inactive wells; and
``(C) $31,500 for facilities with more than 10 wells,
with any combination of active or inactive wells.
``(6) Fees for drilling rigs.--Fees shall be collected under
this subsection for drilling rigs on a per inspection basis.
Fees for fiscal year 2019 shall be--
``(A) $30,500 per inspection for rigs operating in
water depths of 1,000 feet or more; and
``(B) $16,700 per inspection for rigs operating in
water depths of less than 1,000 feet.
``(7) Billing.--The Secretary shall bill designated operators
under paragraph (5) annually, with payment required within 30
days of billing. The Secretary shall bill designated operators
under paragraph (6) within 30 days of the end of the month in
which the inspection occurred, with payment required within 30
days after billing.
``(8) Annual reports.--
``(A) In general.--Not later than 60 days after the
end of each fiscal year beginning with fiscal year 2019
and ending with fiscal year 2029, the Secretary shall
submit to the Committee on Energy and Natural Resources
of the Senate and the Committee on Natural Resources of
the House of Representatives a report on the operation
of the Fund during the fiscal year.
``(B) Contents.--Each report shall include, for the
fiscal year covered by the report, the following:
``(i) A statement of the amounts deposited
into the Fund.
``(ii) A description of the expenditures made
from the Fund for the fiscal year, including
the purpose of the expenditures and the
additional hiring of personnel.
``(iii) A statement of the balance remaining
in the Fund at the end of the fiscal year.
``(iv) An accounting of pace of permit
approvals.
``(v) If fee increases are proposed, a proper
accounting of the potential adverse economic
impacts such fee increases will have on
offshore economic activity and overall
production.
``(vi) Recommendations to increase the
efficacy and efficiency of offshore
inspections.
``(vii) Any corrective actions levied upon
offshore inspectors as a result of any form of
misconduct.''.
SEC. 107. ARCTIC RULE SHALL HAVE NO FORCE OR EFFECT.
The rule entitled ``Oil and Gas and Sulfur Operations on the Outer
Continental Shelf - Requirements for Exploratory Drilling on the Arctic
Outer Continental Shelf'' and published in the Federal Register on July
15, 2016 (81 Fed. Reg. 46478), shall have no force or effect.
SEC. 108. APPLICATION OF OUTER CONTINENTAL SHELF LANDS ACT WITH RESPECT
TO TERRITORIES OF THE UNITED STATES.
(a) In General.--Section 2 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1331) is amended--
(1) in paragraph (a), by inserting after ``control'' the
following: ``or lying within the exclusive economic zone of the
United States'';
(2) in paragraph (p), by striking ``and'' after the semicolon
at the end;
(3) in paragraph (q), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(r) The term `State' includes each territory of the United
States.''.
(b) Exclusions.--
(1) Section 4(a) of the Outer Continental Shelf Lands Act (43
U.S.C. 1333) is amended by adding at the end the following:
``(4) This section shall not apply to the territories and possessions
of the United States.''.
(2) Section 18 of the Outer Continental Shelf Lands Act (43
U.S.C. 1344) is amended by adding at the end the following:
``(i) This section shall not apply to the scheduling of lease sales
in the outer Continental Shelf adjacent to the territories and
possessions of the United States.''.
(c) Exploration Licenses and Leases.--Section 8(k) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by adding at
the end the following:
``(3) Exploration licenses and leases on outer continental
shelf adjacent to territories and possessions.--
``(A) In general.--The Secretary is authorized to
grant to any qualified applicant an exploration license
which will provide the exclusive right to explore for
minerals, other than oil, gas, and sulphur, in an area
lying within the United States exclusive economic zone
and the outer Continental Shelf adjacent to any
territory or possession of the United States.
``(B) Application.--Subsection (a) shall not apply to
any area conveyed by Congress to a territorial
government for administration.
``(C) Exploration license duration.--Exploration
licenses granted under this paragraph will be issued
for a period pursuant to regulations prescribed by the
Secretary.
``(D) Lease.--Upon showing to the satisfaction of the
Secretary that valuable mineral deposits have been
discovered by the licensee within the area described by
the exploration license of the licensee, the licensee
will be entitled to a lease for any or all of that area
at a royalty rate established by regulation and lease
terms.
``(E) Lease duration.--Leases under this section will
be issued for a period established by regulation with a
preferential right in the lessee to renew.''.
SEC. 109. WIND LEASE SALES FOR THE OUTER CONTINENTAL SHELF.
The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is
amended by adding at the end the following:
``SEC. 33. WIND LEASE SALES FOR THE OUTER CONTINENTAL SHELF.
``(a) Authorization.--The Secretary may conduct wind lease sales for
the outer Continental Shelf.
``(b) Wind Lease Sale Procedure.--Any wind lease sale conducted under
this section shall be considered a lease under section 8(p).
``(c) Wind Lease Sale Off Coast of California.--The Secretary, in
consultation with the Secretary of Defense, shall offer a wind lease
sale for the outer Continental Shelf off the coast of California as
soon as practicable, but not later than one year after the date of
enactment of this section.
``(d) Wind Lease Sales Off Coast of Puerto Rico, Virgin Islands of
the United States, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands.--
``(1) Study on feasibility of conducting wind lease sales off
coast of puerto rico, virgin islands of the united states,
guam, american samoa, and the commonwealth of the northern
mariana islands.--
``(A) Study.--The Secretary shall conduct a study on
the feasibility, including the long term economic
feasibility, of conducting wind lease sales for the
outer Continental Shelf off the coast of Puerto Rico,
the Virgin Islands of the United States, Guam, American
Samoa, and the Commonwealth of the Northern Mariana
Islands.
``(B) Submission of results.--Not later than 180 days
after the date of the enactment of this section, the
Secretary shall submit to Congress the results of the
study conducted under subparagraph (A).
``(2) Wind lease sales conditional upon results of study.--
``(A) Wind lease sale off coast of puerto rico.--If
the study required under paragraph (1)(A) concludes
that a wind lease sale for the outer Continental Shelf
off the coast of Puerto Rico is feasible, then the
Secretary shall offer a wind lease sale for the outer
Continental Shelf off the coast of Puerto Rico as soon
as practicable, but not later than one year after the
date of the enactment of this section.
``(B) Wind lease sale off coast of virgin islands of
the united states.--If the study required under
paragraph (1)(A) concludes that a wind lease sale for
the outer Continental Shelf off the coast of the Virgin
Islands of the United States is feasible, then the
Secretary shall offer a wind lease sale for the outer
Continental Shelf off the coast of the Virgin Islands
of the United States as soon as practicable, but not
later than one year after the date of the enactment of
this section.
``(C) Wind lease sale off coast of guam.--If the
study required under paragraph (1)(A) concludes that a
wind lease sale for the outer Continental Shelf off the
coast of Guam is feasible, then the Secretary shall
offer a wind lease sale for the outer Continental Shelf
off the coast of Guam as soon as practicable, but not
later than one year after the date of the enactment of
this section.
``(D) Wind lease sale off coast of american samoa.--
If the study required under paragraph (1)(A) concludes
that a wind lease sale for the outer Continental Shelf
off the coast of American Samoa is feasible, then the
Secretary shall offer a wind lease sale for the outer
Continental Shelf off the coast of American Samoa as
soon as practicable, but not later than one year after
the date of the enactment of this section.
``(E) Wind lease sale off coast of the commonwealth
of the northern mariana islands.--If the study required
under paragraph (1)(A) concludes that a wind lease sale
for the outer Continental Shelf off the coast of the
Commonwealth of the Northern Mariana Islands is
feasible, then the Secretary shall offer a wind lease
sale for the outer Continental Shelf off the coast of
the Commonwealth of the Northern Mariana Islands as
soon as practicable, but not later than one year after
the date of the enactment of this section.
``(e) Wind Lease Sale Off Coast of Hawaii.--
``(1) Study on feasibility of conducting wind lease sales off
coast of the state of hawaii.--
``(A) Study.--The Secretary, in consultation with the
Secretary of Defense, shall conduct a study on the
feasibility of conducting wind lease sales for the
outer Continental Shelf off the coast of the State of
Hawaii.
``(B) Submission of results.--Not later than 180 days
after the date of the enactment of this section, the
Secretary shall submit to Congress the results of the
study conducted under subparagraph (A).
``(2) Wind lease sales conditional upon results of study.--If
the study required under paragraph (1)(A) concludes that a wind
lease sale for the outer Continental Shelf off the coast of the
State of Hawaii is feasible, then the Secretary shall offer a
wind lease sale for the outer Continental Shelf off the coast
of the State of Hawaii as soon as practicable, but not later
than one year after the date of the enactment of this
section.''.
SEC. 110. REDUCING PERMITTING DELAYS FOR TAKING OF MARINE MAMMALS.
(a) Addressing Permits for Taking of Marine Mammals.--Section
101(a)(5)(D) of the Marine Mammal Protection Act of 1972 (16 U.S.C.
1371(a)(5)(D)) is amended as follows:
(1) In clause (i)--
(A) by striking ``citizens of the United States'' and
inserting ``persons'';
(B) by striking ``within a specific geographic
region'';
(C) by striking ``of small numbers'';
(D) by striking ``such citizens'' and inserting
``such persons''; and
(E) by striking ``within that region''.
(2) In clause (ii)--
(A) in subclause (I), by striking ``, and other means
of effecting the least practicable impact on such
species or stock and its habitat'';
(B) in subclause (III), by striking ``requirements
pertaining to the monitoring and reporting of such
taking by harassment, including'' and inserting
``efficient and practical requirements pertaining to
the monitoring of such taking by harassment while the
activity is being conducted and the reporting of such
taking, including, as the Secretary determines
necessary,''; and
(C) by adding at the end the following:
``Any condition imposed pursuant to subclause (I), (II), or
(III) may not result in more than a minor change to the
specified activity and may not alter the basic design,
location, scope, duration, or timing of the specified
activity.''.
(3) In clause (iii), by striking ``receiving an application
under this subparagraph'' and inserting ``an application is
accepted or required to be considered complete under subclause
(I)(aa), (II)(aa), or (IV) of clause (viii), as applicable,''.
(4) In clause (vi), by striking ``a determination of `least
practicable adverse impact on such species or stock' under
clause (i)(I)'' and inserting ``conditions imposed under
subclause (I), (II), or (III) of clause (ii)''.
(5) By adding at the end the following:
``(viii)(I) The Secretary shall--
``(aa) accept as complete a written request for
authorization under this subparagraph for incidental
taking described in clause (i), by not later than 45
days after the date of submission of the request; or
``(bb) provide to the requester, by not later than 15
days after the date of submission of the request, a
written notice describing any additional information
required to complete the request.
``(II) If the Secretary provides notice under subclause
(I)(bb), the Secretary shall, by not later than 30 days after
the date of submission of the additional information described
in the notice--
``(aa) accept the written request for authorization
under this subparagraph for incidental taking described
in clause (i); or
``(bb) deny the request and provide the requester a
written explanation of the reasons for the denial.
``(III) The Secretary may not under this subparagraph make a
second request for information, request that the requester
withdraw and resubmit the request, or otherwise delay a
decision on the request.
``(IV) If the Secretary fails to respond to a request for
authorization under this subparagraph in the manner provided in
subclause (I) or (II), the request shall be considered to be
complete.
``(ix)(I) At least 90 days before the date of the expiration
of any authorization issued under this subparagraph, the holder
of such authorization may apply for a one-year extension of
such authorization. The Secretary shall grant such extension
within 14 days after the date of such request on the same terms
and without further review if there has been no substantial
change in the activity carried out under such authorization nor
in the status of the marine mammal species or stock, as
applicable, as reported in the final annual stock assessment
reports for such species or stock.
``(II) In subclause (I) the term `substantial change' means a
change that prevents the Secretary from making the required
findings to issue an authorization under clause (i) with
respect to such species or stock.
``(III) The Secretary shall notify the applicant of such
substantial changes with specificity and in writing within 14
days after the applicant's submittal of the extension request.
``(x) If the Secretary fails to make the required findings
and, as appropriate, issue the authorization within 120 days
after the application is accepted or required to be considered
complete under subclause (I)(aa), (II)(aa), or (III) of clause
(viii), as applicable, the authorization is deemed to have been
issued on the terms stated in the application and without
further process or restrictions under this Act.''.
(b) Removing Duplications.--Section 101(a)(5)(D) of the Marine Mammal
Protection Act of 1972 (16 U.S.C. 1371(a)(5)(D)), as amended by
subsection (a), is further amended by adding at the end the following:
``(xi) Any taking of a marine mammal in compliance with an
authorization under this subparagraph is exempt from the
prohibition on taking in section 9 of the Endangered Species
Act of 1973 (16 U.S.C. 1538). Any Federal agency authorizing,
funding, or carrying out an action that results in such taking,
and any agency action authorizing such taking, is exempt from
the requirement to consult regarding potential impacts to
marine mammal species or designated critical habitat under
section 7(a)(2) of such Act (16 U.S.C. 1536(a)(2)).''.
(c) Transfer of Certain Responsibilities to the Secretary of the
Interior.--Section 3(12) of the Marine Mammal Protection Act of 1972
(16 U.S.C. 1362(12)) is amended--
(1) in subparagraph (A), in the matter preceding clause (i),
by striking ``subparagraph (B)'' and inserting ``subparagraphs
(B) and (C)''; and
(2) by adding at the end the following:
``(C) In sections 101(a)(3), 101(a)(5), 103, and 104
(16 U.S.C. 1371(a)(3), 1371(a)(5), 1373, and 1374), for
activities associated with operations authorized under
the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.), the term `Secretary' means the Secretary of
the Interior with respect to all marine mammals.''.
SEC. 111. EFFECT.
Nothing in this Act, with respect to the State of Florida, shall be
construed to modify--
(1) the moratorium imposed by section 104 of the Gulf of
Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note); or
(2) the 2017-2022 leasing program prepared under section 18
of the Outer Continental Shelf Lands Act (43 U.S.C. 1344).
TITLE II--ONSHORE
SEC. 201. SHORT TITLE.
This title may be cited as the ``Opportunities for the Nation and
States to Harness Onshore Resources for Energy Act'' or the ``ONSHORE
Act''.
SEC. 202. COOPERATIVE FEDERALISM IN OIL AND GAS PERMITTING ON AVAILABLE
FEDERAL LAND.
(a) In General.--The Mineral Leasing Act (30 U.S.C. 181 et seq.) is
amended--
(1) by redesignating section 44 as section 47; and
(2) by adding after section 43 the following new section:
``SEC. 44. COOPERATIVE FEDERALISM IN OIL AND GAS PERMITTING ON
AVAILABLE FEDERAL LAND.
``(a) Authorizations.--
``(1) In general.--Upon receipt of an application under
subsection (b), the Secretary may delegate to a State exclusive
authority--
``(A) to issue an APD on available Federal land; or
``(B) to approve drilling plans on available Federal
land.
``(2) Sundry notices.--Any authorization under paragraph (1)
may, upon the request of the State, include authority to issue
sundry notices.
``(3) Inspection and enforcement.--Any authorization under
paragraph (1) may, upon the request of the State, include
authorization to inspect and enforce an APD or drilling plan,
as applicable. An authorization under paragraph (1)(A) shall
not affect the ability of the Secretary to collect inspection
fees under section 108(d) of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1718(d)).
``(b) State Application Process.--
``(1) Submission of application.--A State may submit an
application under subparagraph (A) or (B) of subsection (a)(1)
to the Secretary at such time and in such manner as the
Secretary may require.
``(2) Content of application.--An application submitted under
this subsection shall include--
``(A) a description of the State program that the
State proposes to administer under State law; and
``(B) a statement from the Governor or attorney
general of such State that the laws of such State
provide adequate authority to carry out the State
program.
``(3) Deadline for approval or disapproval.--Not later than
180 days after the date of receipt of an application under this
subsection, the Secretary shall approve or disapprove such
application.
``(4) Criteria for approval.--The Secretary may approve an
application received under this subsection only if the
Secretary has--
``(A) determined that the State applicant would be at
least as effective as the Secretary in issuing APDs or
in approving drilling plans, as applicable;
``(B) determined that the State program of the State
applicant--
``(i) complies with this Act; and
``(ii) provides for the termination or
modification of an issued APD or approved
drilling plan, as applicable, for cause,
including for--
``(I) the violation of any condition
of the issued APD or approved drilling
plan;
``(II) obtaining the issued APD or
approved drilling plan by
misrepresentation; or
``(III) failure to fully disclose in
the application all relevant facts;
``(C) determined that the State applicant has
sufficient administrative and technical personnel and
sufficient funding to carry out the State program;
``(D) provided notice to the public, solicited public
comment, and held a public hearing within the State;
``(E) determined that approval of the application
would not result in decreased royalty payments owed to
the United States under section 35(a), except as
provided in subsection (e) of that section; and
``(F) in the case of a State applicant seeking
authority under subsection (a)(3) to inspect and
enforce APDs or drilling plans, as applicable, entered
into a memorandum of understanding with a State
applicant that delineates the Federal and State
responsibilities with respect to such inspection and
enforcement.
``(5) Disapproval.--If the Secretary disapproves an
application submitted under this subsection, then the Secretary
shall--
``(A) notify, in writing, the State applicant of the
reason for the disapproval and any revisions or
modifications necessary to obtain approval; and
``(B) provide any additional information, data, or
analysis upon which the disapproval is based.
``(6) Resubmittal of application.--A State may resubmit an
application under this subsection at any time.
``(7) State memorandum of understanding.--Before a State
submits an application under this subsection, the Secretary
may, at the request of a State, enter into a memorandum of
understanding with the State regarding the proposed State
program--
``(A) to delineate the Federal and State
responsibilities for oil and gas regulations;
``(B) to provide technical assistance; and
``(C) to share best management practices.
``(c) Administrative Fees for APDs.--
``(1) In general.--A State for which authority has been
delegated under subsection (a)(1)(A) may collect a fee for each
application for an APD that is submitted to the State.
``(2) No collection of fee by secretary.--The Secretary may
not collect a fee from the applicant or from the State for an
application for an APD that is submitted to a State for which
authority has been delegated under subsection (a)(1)(A).
``(3) Fee amount.--The fee collected under paragraph (1)
shall be less than or equal to the amount of the fee collected
by the Secretary under section 35(d)(2)from States for which
authority has not been delegated under subsection (a)(1)(A).
``(4) Use.--A State shall use 100 percent of the fees
collected under this subsection for the administration of the
approved State program of the State.
``(d) Voluntary Termination of Authority.--A State may voluntarily
terminate any authority delegated to such State under subsection (a)
upon providing written notice to the Secretary 60 days in advance. Upon
expiration of such 60-day period, the Secretary shall resume any
activities for which authority was delegated to the State under
subsection (a).
``(e) Appeal of Denial of Application for APD or Application for
Approval of Drilling Plan.--
``(1) In general.--If a State for which the Secretary has
delegated authority under subsection (a)(1) denies an
application for an APD or an application for approval of a
drilling plan, the applicant may appeal such decision to the
Department of the Interior Office of Hearings and Appeals.
``(2) Fee allowed.--The Secretary may charge the applicant a
fee for the appeal referred to in paragraph (1).
``(f) Federal Administration of State Program.--
``(1) Notification.--If the Secretary has reason to believe
that a State is not administering or enforcing an approved
State program, the Secretary shall notify the relevant State
regulatory authority of any possible deficiencies.
``(2) State response.--Not later than 30 days after the date
on which a State receives notification of a possible deficiency
under paragraph (1), the State shall--
``(A) take appropriate action to correct the possible
deficiency; and
``(B) notify the Secretary of the action in writing.
``(3) Determination.--
``(A) In general.--On expiration of the 30-day period
referred to in paragraph (2), if the Secretary
determines that a violation of all or any part of an
approved State program has resulted from a failure of
the State to administer or enforce the approved State
program of the State or that the State has not
demonstrated its capability and intent to administer or
enforce such a program, the Secretary shall issue
public notice of such a determination.
``(B) Appeal.--A State may appeal the determination
of the Secretary under subparagraph (A) in the
applicable United States District Court. The Secretary
may not resume activities under paragraph (4) pending
the resolution of the appeal.
``(4) Resumption by secretary.--If the Secretary has made a
determination under paragraph (3), the Secretary shall resume
any activities for which authority was delegated to the State
during the period--
``(A) beginning on the date on which the Secretary
issues the public notice under paragraph (3); and
``(B) ending on the date on which the Secretary
determines that the State will administer or enforce,
as applicable, the approved State program of the State.
``(5) Standing.--States with approved regulatory programs
shall have standing to sue the Secretary for any action taken
under this subsection.
``(g) Definitions.--In this section:
``(1) Available federal land.--The term `available Federal
land' means any Federal land that--
``(A) is located within the boundaries of a State;
``(B) is not held by the United States in trust for
the benefit of a federally recognized Indian Tribe or a
member of such an Indian Tribe;
``(C) is not a unit of the National Park System;
``(D) is not a unit of the National Wildlife Refuge
System, except for the portion of such unit for which
oil and gas drilling is allowed under law;
``(E) is not a congressionally approved wilderness
area under the Wilderness Act (16 U.S.C. 1131 et seq.);
and
``(F) has been identified as land available for lease
or has been leased for the exploration, development,
and production of oil and gas--
``(i) by the Bureau of Land Management
under--
``(I) a resource management plan
under the process provided for in the
Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1701 et seq.); or
``(II) an integrated activity plan
with respect to the National Petroleum
Reserve in Alaska; or
``(ii) by the Forest Service under a National
Forest management plan under the Forest and
Rangeland Renewable Resources Planning Act of
1974 (16 U.S.C. 1600 et seq.).
``(2) Drilling plan.--The term `drilling plan' means a plan
described under section 3162.3-1(e) of title 43, Code of
Federal Regulations (or successor regulation).
``(3) APD.--The term `APD' means a permit--
``(A) that grants authority to drill for oil and gas;
and
``(B) for which an application has been received that
contains--
``(i) a drilling plan;
``(ii) a surface use plan of operations
described under section 3162.3-1(f) of title
43, Code of Federal Regulations (or successor
regulation);
``(iii) evidence of bond coverage; and
``(iv) such other information as may be
required by applicable orders and notices.
``(4) Secretary.--The term `Secretary' means the Secretary of
the Interior.
``(5) State.--The term `State' means each of the several
States.
``(6) State applicant.--The term `State applicant' means a
State that has submitted an application under subsection (b).
``(7) State program.--The term `State program' means a
program that provides for a State to--
``(A) issue APDs or approve drilling plans, as
applicable, on available Federal land; and
``(B) impose sanctions for violations of State laws,
regulations, or any condition of an issued APD or
approved drilling plan, as applicable.
``(8) Sundry notice.--The term `sundry notice' means a
written request--
``(A) to perform work not covered under an APD or
drilling plan; or
``(B) for a change to operations covered under a an
APD or drilling plan.''.
(b) Inspection Fees.--Section 108 of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1718) is amended by adding at the end
the following:
``(d) Inspection Fees for Certain States.--
``(1) In general.--The Secretary shall conduct inspections of
operations under each oil and gas lease. The Secretary shall
collect annual nonrefundable inspection fees in the amount
specified in paragraph (2), from each designated operator under
each oil and gas lease on Federal or Indian land that is
subject to inspection under subsection (b) and that is located
in a State for which the Secretary has delegated authority
under section 44(a)(1)(A) of the Mineral Leasing Act.
``(2) Amount.--The amount of the fees collected under
paragraph (1) shall be--
``(A) $700 for each lease or unit or communitization
agreement with no active or inactive wells, but with
surface use, disturbance or reclamation;
``(B) $1,225 for each lease or unit or
communitization agreement with 1 to 10 wells, with any
combination of active or inactive wells;
``(C) $4,900 for each lease or unit or
communitization agreement with 11 to 50 wells, with any
combination of active or inactive wells; and
``(D) $9,800 for each lease or unit or
communitization agreement with more than 50 wells, with
any combination of active or inactive wells.
``(3) Onshore energy safety fund.--There is established in
the Treasury a fund, to be known as the `Onshore Energy Safety
Fund' (referred to in this subsection as the `Fund'), into
which shall be deposited all amounts collected as fees under
paragraph (1) and which shall be available as provided under
paragraph (4).
``(4) Availability of fees.--Notwithstanding section 3302 of
title 31, United States Code, all amounts deposited in the
Fund--
``(A) shall be credited as offsetting collections;
``(B) shall be available for expenditure for purposes
of carrying out inspections of onshore oil and gas
operations in those States for which the Secretary has
delegated authority under section 44(a)(1)(A) of the
Mineral Leasing Act;
``(C) shall be available only to the extent provided
for in advance in an appropriations Act; and
``(D) shall remain available until expended.
``(5) Payment due date.--The Secretary shall require payment
of any fee assessed under this subsection within 30 days after
the Secretary provides notice of the assessment of the fee
after the completion of an inspection.
``(6) Penalty.--If a designated operator assessed a fee under
this subsection fails to pay the full amount of the fee as
prescribed in this subsection, the Secretary may, in addition
to utilizing any other applicable enforcement authority, assess
civil penalties against the operator under section 109 in the
same manner as if this section were a mineral leasing law.
``(7) Notification to state of noncompliance.--If, on the
basis of any inspection under subsection (b), the Secretary
determines that an operator is in noncompliance with the
requirements of mineral leasing laws and this chapter, the
Secretary shall notify the State of such noncompliance
immediately.''.
(c) Existing Authorities.--Section 390(a) of the Energy Policy Act of
2005 (42 U.S.C. 15942(a)) is amended--
(1) by striking ``Action by the Secretary'' and inserting
``The Secretary'';
(2) by striking ``with respect to any of the activities
described in subsection (b) shall be subject to a rebuttable
presumption that the use of'' and inserting ``shall apply'';
and
(3) by striking ``would apply if the activity'' and inserting
``for each action described in subsection (b) if the action''.
SEC. 203. CONVEYANCE TO CERTAIN STATES OF PROPERTY INTEREST IN STATE
SHARE OF ROYALTIES AND OTHER PAYMENTS.
(a) In General.--Section 35 of the Mineral Leasing Act (30 U.S.C.
191) is amended--
(1) in the first sentence of subsection (a), by striking
``shall be paid into the Treasury'' and inserting ``shall,
except as provided in subsection (e), be paid into the
Treasury'';
(2) in subsection (c)(1), by inserting ``and except as
provided in subsection (e)'' before ``, any rentals''; and
(3) by adding at the end the following:
``(e) Conveyance to Certain States of Property Interest in State
Share.--
``(1) In general.--Notwithstanding any other provision of
law, on request of a State and in lieu of any payments to the
State under subsection (a), the Secretary of the Interior shall
convey to the State all right, title, and interest in and to
the percentage specified in that subsection for that State that
would otherwise be required to be paid into the Treasury under
that subsection.
``(2) Amount.--Notwithstanding any other provision of law,
after a conveyance to a State under paragraph (1), any person
shall pay directly to the State any amount owed by the person
for which the right, title, and interest has been conveyed to
the State under this subsection.
``(3) Notice.--The Secretary of the Interior shall promptly
provide to each holder of a lease of public land to which
subsection (a) applies that is located in a State to which
right, title, and interest is conveyed under this subsection
notice that--
``(A) the Secretary of the Interior has conveyed to
the State all right, title, and interest in and to the
amounts referred to in paragraph (1); and
``(B) the leaseholder is required to pay the amounts
directly to the State.
``(4) Report.--A State that has received a conveyance under
this subsection shall report monthly to the Office of Natural
Resources Revenue of the Department of the Interior the amount
paid to such State pursuant to this subsection.
``(5) Application with respect to fogrma.--With respect to
the interest conveyed to a State under this subsection from
sales, bonuses, royalties (including interest charges), and
rentals collected under the Federal Oil and Gas Royalty
Management Act of 1983 (30 U.S.C. 1701 et seq.), this
subsection shall only apply with respect to States for which
the Secretary has delegated any authority under section
44(a)(1).''.
(b) Administrative Costs.--Section 35(b) of the Mineral Leasing Act
(30 U.S.C. 191(b)) is amended by striking ``In determining'' and
inserting ``Except with respect to States for which the Secretary has
delegated any authority under section 44(a)(1), in determining''.
(c) Conforming Amendment.--Section 205(f) of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1735(f)) is amended by
striking ``All'' in the seventh sentence and inserting ``Subject to
subsection (e) of section 35 of the Mineral Leasing Act (30 U.S.C.
191), all''.
SEC. 204. PERMITTING ON NON-FEDERAL SURFACE ESTATE.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by
inserting after section 44 (as added by section 202(a)(2)) the
following:
``SEC. 45. PERMITTING ON NON-FEDERAL SURFACE ESTATE.
``(a) Permits Not Required for Certain Activities on Non-Federal
Surface Estate.--The following activities conducted on non-Federal
surface estate shall not require a Bureau of Land Management drilling
permit under the Federal Oil and Gas Royalty Management Act of 1982 (30
U.S.C. 1701 et seq.) or section 3164.1 of title 43, Code of Federal
Regulations (or successor regulation) and shall not be considered a
major Federal action under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.):
``(1) Oil and gas operations for the exploration for or
development or production of oil and gas in a lease or unit or
communitization agreement in which the United States holds a
mineral ownership interest of 50 percent or less.
``(2) Oil and gas operations that may have potential drainage
impacts, as determined by the Bureau of Land Management, on oil
and gas in which the United States holds a mineral ownership
interest.
``(b) DOI Notification.--The Secretary of the Interior shall provide
to each State a map or list indicating Federal mineral ownership within
that State.
``(c) State Notification.--Each State that has issued an APD or
approved a drilling plan that would impact or extract oil and gas owned
by the United States shall notify the Secretary of the Interior within
7 days of issuing an APD.
``(d) Royalties.--Nothing in this section shall affect the amount of
royalties due to the United States under this Act from the production
of oil and gas or alter the Secretary's authority to conduct audits and
collect civil penalties pursuant to the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1711 et seq.).
``(e) Application.--This section shall only apply with respect to
States for which the Secretary has delegated any authority under
section 44(a)(1).''.
SEC. 205. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC FRACTURING
REGULATION.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by
inserting after section 45 (as added by section 204) the following:
``SEC. 46. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC FRACTURING
REGULATION.
``(a) In General.--The Secretary of the Interior shall not enforce
any Federal regulation, guidance, or permit requirement regarding
hydraulic fracturing relating to oil, gas, or geothermal production
activities on or under any land in any State that has regulations,
guidance, or permit requirements for that activity.
``(b) State Authority.--The Secretary of the Interior shall defer to
State regulations, guidance, and permit requirements for all activities
regarding hydraulic fracturing relating to oil, gas, or geothermal
production activities on Federal land.
``(c) Transparency of State Regulations.--
``(1) In general.--Each State shall submit to the Bureau of
Land Management a copy of the regulations of such State that
apply to hydraulic fracturing operations on Federal land,
including those that require disclosure of chemicals used in
hydraulic fracturing operations.
``(2) Availability.--The Secretary of the Interior shall make
available to the public on the website of the Secretary the
regulations submitted under paragraph (1).
``(d) Tribal Authority on Trust Land.--The Secretary of the Interior
shall not enforce any Federal regulation, guidance, or permit
requirement with respect to hydraulic fracturing on any land held in
trust or restricted status for the benefit of a federally recognized
Indian Tribe or a member of such an Indian Tribe, except with the
express consent of the beneficiary on whose behalf such land is held in
trust or restricted status.
``(e) Hydraulic Fracturing Defined.--In this section the term
`hydraulic fracturing' means the process of creating small cracks, or
fractures, in underground geological formations for well stimulation
purposes of bringing hydrocarbons into the wellbore and to the surface
for capture.''.
SEC. 206. REVIEW OF INTEGRATED ACTIVITY PLAN FOR THE NATIONAL PETROLEUM
RESERVE IN ALASKA.
The Secretary of the Interior shall--
(1) conduct a review of the National Petroleum Reserve-Alaska
Final Integrated Activity Plan/Environmental Impact Statement,
for which notice of availability was published in the Federal
Register on December 28, 2012 (77 Fed. Reg. 76515), to
determine which lands within the National Petroleum Reserve in
Alaska should be made available for oil and gas leasing; and
(2) make available the lands described in paragraph (1) for
oil and gas leasing.
SEC. 207. PROTESTED LEASE SALES.
Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C.
226(b)(1)(A)) is amended by inserting ``The Secretary shall resolve any
protest to a lease sale within 60 days following such payment.'' after
``annual rental for the first lease year.''.
SEC. 208. CLARIFICATION REGARDING LIABILITY UNDER MIGRATORY BIRD TREATY
ACT.
Section 6 of the Migratory Bird Treaty Act (16 U.S.C. 707) is amended
by adding at the end the following:
``(e) This Act shall not be construed to prohibit any activity
proscribed by section 2 of this Act that is accidental or incidental to
the presence or operation of an otherwise lawful activity.''.
Purpose of the Bill
The purpose of H.R. 4239 is to distribute revenues from oil
and gas leasing on the outer Continental Shelf to certain
coastal States, to require sale of approved offshore oil and
gas leases, to promote offshore wind lease sales, and to
empower States to manage the development and production of oil
and gas on available federal land.
Background and Need for Legislation
The Strengthening the Economy with Critical Untapped
Resources to Expand (SECURE) American Energy Act seeks to
optimize management of our nation's energy resources by
increasing access to and promoting the development of oil, gas,
and wind energy. Title I, the Accessing Strategic Resources
Offshore (ASTRO) Act, facilitates access to oil and gas
resources across America's Outer Continental Shelf (OCS) lands.
This bill establishes a revenue sharing framework to distribute
revenues collected from oil and gas leasing on the OCS to
certain coastal States. The bill increases the amount that can
be distributed to qualifying States under the Gulf of Mexico
Energy Security Act of 2006 (GOMESA, Public Law 109-432,
Division C, Title I; 43 U.S.C. 1331 note), and limits the
President's authority to withdraw certain areas of the OCS from
oil and gas leasing. Finally, this bill increases regulatory
certainty by requiring the execution of all approved oil and
gas lease sales, should the Secretary of the Interior call for
a revised national lease sale program. Furthermore, this bill
strategizes offshore wind lease sales by requiring feasibility
and compatibility studies, and streamlines the Marine Mammal
Protection Act of 1972 (16 U.S.C. 1361 et seq.) permitting
process. Title II, the Opportunities for the Nation and States
to Harness Onshore Resources for Energy (ONSHORE) Act, enables
States with established permitting and regulatory programs to
manage certain federal permitting and regulatory
responsibilities for oil and gas development on federal lands
within their borders. This bill reaffirms the States' authority
to manage oil and gas development on State and private land and
requires the Secretary to defer to the States regarding the
regulation of hydraulic fracturing practices.
TITLE I--ASTRO ACT
Our nation is uniquely positioned to safely develop diverse
energy sources, and is capable of satisfying domestic and
global demand. Impeding such progress and certainty is a
politicized series of laws and regulations. The Bureau of Ocean
Energy Management (BOEM) estimates that 89.9 billion barrels of
oil, and 327.5 trillion cubic feet of gas are contained, but
undiscovered, on the OCS.\1\ However, the vast majority, 94%,
of the OCS is excluded from oil and gas leasing under the 2017-
2022 OCS leasing plan and Presidential withdrawals.\2\
---------------------------------------------------------------------------
\1\Unlocking America's Offshore Energy Opportunity, (Oct. 6, 2017),
http://www.americasoffshoreenergy.com/#/?section=unlocking-
americasoffshore-energy-opportunity.
\2\Evaluating Federal Offshore Oil and Gas Development: Hearing
before the House Committee on Natural Resources, 115th Cong. (July 12,
2017) (statement of Katharine MacGregor, Acting Assistant Secretary,
Dep't of the Interior.
---------------------------------------------------------------------------
Currently, the Atlantic, Pacific, and nearly all of the
Alaskan OCS lands are off limits to development. Offshore
operators require long lead times to plan projects, so
restricting lease sales today directly reduces production in
decades to come. Department of the Interior Secretary Ryan
Zinke recognized the extremely harmful effects of such a
restricted leasing schedule, and called for the development of
a new leasing schedule to more carefully consider all potential
leasing areas on the OCS.\3\
---------------------------------------------------------------------------
\3\THE DEPARTMENT OF THE INTERIOR, Sec. Order No. 3350 (2017).
---------------------------------------------------------------------------
The exclusion of these resources comes at the expense of
the taxpayer and disadvantages our national and local
economies. Oil and gas revenues provide the second largest
source of revenue to the U.S. Treasury, second only to federal
income tax.\4\ In FY 2016, OCS revenues totaled $2.8 billion,
making up nearly half of all oil and gas revenues for the
federal government.\5\ Certain States also receive a share of
OCS revenues, supplementing their budgets and providing support
to coastal communities.
---------------------------------------------------------------------------
\4\Will revenue sharing spur more offshore drilling?, Global Energy
Institute, Platts McGraw-Hill https://www.globalenergyinstitute.org/
willrevenue-sharing-spur-more-offshore-drilling.
\5\Statistics, Office of Natural Resources Revenue, https://
statistics.onrr.gov/ReportTool.aspx.
---------------------------------------------------------------------------
GOMESA established a revenue distribution structure for the
Gulf States of Alabama, Louisiana, Mississippi, and Texas. The
shared revenues compensate these States for the large-scale
infrastructure required by OCS production, and to mitigate the
environmental risks presented by offshore development.
Facilitating access to exploration and production in
promising OCS areas will strengthen national, State, and local
economies. In addition, opening the OCS mid-Atlantic, South
Atlantic and Alaska planning areas to oil and gas development
would continue to strengthen the nation's position as a global
energy leader. A recent study found that development of the
resource potential in these areas and others would create
840,000 new jobs and would generate over $200 billion in
cumulative revenues for the nation.\6\
---------------------------------------------------------------------------
\6\Untapped Potential, The American Petroleum Institute. http://
maps.api.org/offshore/.
---------------------------------------------------------------------------
Allocation of revenues derived from oil and gas leasing on the Outer
Continental Shelf
The federal government is charged with managing and
realizing fair return for development of over 1.7 billion acres
of offshore lands.\7\ Until the passage of GOMESA, the federal
government generally received all revenues generated from oil
and gas development on the OCS. The Gulf of Mexico quickly
became the leader in offshore production, and as the number of
offshore wells grew, so did the associated infrastructure and
environmental risks of drilling. Ports, pipelines, and
refineries rapidly expanded along the Alabama, Louisiana,
Mississippi, and Texas coasts to support OCS development. Gulf
States successfully negotiated GOMESA, which established a
revenue sharing scheme for qualifying Gulf States. Under
GOMESA, States receive 37.5% of all qualifying OCS revenues,
with 20% of each State's share dedicated to ``coastal political
subdivisions.''
---------------------------------------------------------------------------
\7\Laura B. Comay, Five Year Program for Federal Offshore Oil and
Gas Leasing: Status and Issues in Brief, (CRS R44692), (Congressional
Research Service, Washington, DC), 3, March 31, 2017.
---------------------------------------------------------------------------
As OCS production necessarily demands onshore
infrastructure and requires States to assume environmental
risks, a revenue sharing scheme should be in place for coastal
States that will be directly affected by production on federal
lands. In the ongoing debate about opening the Atlantic OCS to
offshore production, many coastal governors and State lawmakers
have made clear their support depends on the existence of a
revenue sharing program that would equitably compensate their
States.\8\ Virginia Governor Terry McAuliffe stated in a letter
to BOEM that ``. . . primary concern that must be satisfied in
order for Virginia to be included in the leasing area is a
revenue sharing agreement between participating Atlantic coasts
and the federal government.''\9\ One of the main provisions of
this bill establishes revenue sharing for States in the Mid-
and South Atlantic planning areas, including Virginia, in an
attempt to fairly compensate the qualifying producing States,
and to ensure disbursement certainty into the future.
---------------------------------------------------------------------------
\8\Supra at 4.
\9\Letter from Virginia Governor Terry McAuliffe to Kelly Hammerle,
National Program Manager, BOEM, August 11, 2017, http://
governor.virginia.gov/media/9428/08162017-boem-letter.pdf.
---------------------------------------------------------------------------
Optimizing access to the Outer Continental Shelf
The federal offshore lease sale schedule is developed
through an extensive process that narrows down lease locations
within planning areas. BOEM weighs several factors, including
geology, economics, operator and public interest, and
environmental sensitivity when identifying lease sale areas.
The Administration, at present, cannot add lease sales to an
approved program, thereby limiting sales (and associated
development and revenue) to planning decisions made up to seven
years prior.
Withdrawals in December 2016 by President Obama compounded
the lack of access and precluded offshore oil and gas
production on millions of acres of OCS Atlantic and Alaska
federal lands.\10\ This unilateral removal of 118.8 million
acres from oil and gas development, created an immediate threat
to national security and barred economic growth along these
coasts. This withdrawal was predicated on Section 12(a) of the
Outer Continental Shelf Lands Act, which authorizes the
President to withdraw OCS lands from leasing consideration, but
does not provide insight into a President's ability to undo
such withdrawals.\11\ A key provision of this bill would
preclude a President from making such withdrawals, instead
leaving this critical decision to Congress.
---------------------------------------------------------------------------
\10\Representative David Brat (VA-7), H.R. 2157--OCEAN Act Summary.
\11\43 U.S.C. 1331 et seq.
---------------------------------------------------------------------------
In addition to oil and gas, the OCS contains diversified
renewable energy sources. Offshore wind has become the primary
focus of renewable energy development, and can potentially
provide over 4,000 gigawatts of energy to the mainland
grid.\12\ However, there exists considerable permitting and
regulatory delays preventing this power from getting on line,
and there are currently no constructed or approved wind farms
in federal waters. For instance, BOEM has issued 13 commercial
wind energy leases on the OCS, all of which are in the process
of navigating the challenging and duplicative series of
environmental regulations and stakeholder engagements required
for final construction approval.\13\ The nation's first
offshore wind farm, the Block Island Wind Farm, located in
State waters off Rhode Island, became operational at the end of
2016.\14\ As BOEM continues to lease federal offshore acreage
for wind development, it is essential that its method be
strategic and well informed.
---------------------------------------------------------------------------
\12\U.S. Offshore Wind, American Wind Energy Association, Nov 3,
2017 (https://www.awea.org/offshore-wind).
\13\BOEM Fact Sheet, Renewable Energy on the Outer Continental
Shelf, September 2017 (https://www.boem.gov/BOEM-Overview-
RenewableEnergy/).
\14\Supra, Note 12.
---------------------------------------------------------------------------
TITLE II--THE ONSHORE ACT
The Bureau of Land Management (BLM) is responsible for
managing the federal onshore mineral estate, which includes
roughly 700 million acres of land held primarily by the BLM and
U.S. Forest Service.\15\ BLM leases these lands to developers
through quarterly lease sales (when parcels are available for
lease)\16\ and issues the necessary federal permits to
leaseholders required for oil and gas development. At the end
of FY 2016, BLM managed a total of 40,143 onshore oil and gas
leases covering only 27 million acres, the lowest number of
leases since FY 1985.\17\
---------------------------------------------------------------------------
\15\Bureau of Land Management. About the BLM Oil and Gas Program.
https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/about
(Accessed October 10, 2017).
\16\Bureau of Land Management. Oil and Gas Leasing Instructions.
https://www.blm.gov/programs/energy-and-minerals/oil-andgas/leasing/
general-leasing (Accessed October 10, 2017).
\17\Bureau of Land Management. Oil and Gas Statistics. https://
www.blm.gov/programs/energy-and-minerals/oil-and-gas/oil-and-gas-
statistics (Accessed October 10, 2017).
---------------------------------------------------------------------------
Onshore oil and gas program management under the BLM
In recent years, unnecessary permitting delays, costly
regulatory requirements, and uncertainty in the leasing process
have discouraged oil and gas developers from operating on
federal land. While BLM manages a vast mineral estate of 700
million acres, only 113 million acres of onshore federal land
are open and accessible for oil and gas development.\18\ In
fact, 166 million acres are off limits or inaccessible to oil
and gas development altogether.\19\ Duplicative environmental
reviews under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.), along with frivolous protests on the
parcels made available for leasing, have resulted in
unnecessary delays in the leasing process and an overall
decrease in the number of leased parcels. Since 2008, the
number of acres of federal land leased for oil and gas
production has decreased by over 40 percent.\20\
---------------------------------------------------------------------------
\18\Marc Humphries. U.S. Crude Oil and Natural Gas Production in
Federal and Nonfederal Areas. June 22, 2016. http://www.crs.gov/
reports/pdf/R42432.
\19\Marc Humphries. U.S. Crude Oil and Natural Gas Production in
Federal and Nonfederal Areas. June 22, 2016. http://www.crs.gov/
reports/pdf/R42432.
\20\Bureau of Land Management. Oil and Gas Statistics. https://
www.blm.gov/programs/energy-and-minerals/oil-and-gas/oil-and-gas-
statistics (Accessed October 10, 2017).
---------------------------------------------------------------------------
Uncertainty associated with the issuance of required
permits presents additional challenges to oil and gas producers
seeking to develop federal land. For example, the BLM issued
Applications for Permits to Drill (APD) in an average of 257
days in 2016.\21\ By contrast, State agencies can issue permits
in just 30 days on average.\22\ While oil and gas production
has increased in recent years overall, this growth has occurred
largely on State and private lands.\23\ Unnecessary leasing
reductions coupled with lengthy and unpredictable permitting
processes have discouraged producers from developing federal
lands. Instead, they have opted to do business on State and
private lands where higher royalty rates exist.\24\
---------------------------------------------------------------------------
\21\Bureau of Land Management. Oil and Gas Statistics. https://
www.blm.gov/programs/energy-and-minerals/oil-and-gas/oil-and-gas-
statistics (Accessed October 10, 2017).
\22\Western Energy Alliance. Permitting. https://
www.westernenergyalliance.org/knowledge-center/land/onshore-
development/permitting.
\23\Michael Ratner. 21st Century U.S. Energy Sources: A Primer (May
19, 2017). http://www.crs.gov/reports/pdf/R44854.
\24\Center for Western Priorities. A Fair Share: The Case for
Updating Oil and Gas Royalties on Our Public Lands. Page 2. June 18,
2015. http://www.westernpriorities.org/wp-content/uploads/2015/06/
Royalties-Report_update.pdf.
---------------------------------------------------------------------------
States rely on mineral revenues to fund their schools,
universities, infrastructure projects, and a host of other
necessary public programs and services.\25\ The overly
burdensome leasing, permitting, and regulatory processes facing
oil and gas producers have resulted in lost revenue for the
federal government and energy producing States. This means lost
opportunities for economic development and job creation in
communities across the country.
---------------------------------------------------------------------------
\25\The United States Extractive Industries Transparency
Initiative. Explore Data, Montana. https://useiti.doi.gov/explore/MT/
#disbursements (Accessed October 10, 2017).
---------------------------------------------------------------------------
Delegation of authority to the States
The ONSHORE Act allows the Secretary of the Interior to
delegate authority to the States for permitting and regulatory
responsibilities for onshore oil and gas development on federal
lands within their borders. The current one-size-fits-all
federal regulatory scheme is burdensome for States and
producers alike and fails to recognize the unique challenges in
each State. States have extensive and sufficient regulatory
frameworks for permitting oil and gas development that have
been in place for decades.\26\ Delegating certain functions
currently performed by BLM to the States would ensure the
responsible development of oil and gas resources while
eliminating the uncertainty and significant costs associated
with the federal regulatory process.
---------------------------------------------------------------------------
\26\Western Energy Alliance. Comments on Bureau of Land Management
Regulatory Reform, DOI-2017-0003-0003. August 10, 2017.
---------------------------------------------------------------------------
Enabling States to assume these functions for oil and gas
development will result in greater certainty for producers and
allow BLM to focus its limited resources on the agency's core
mission of managing federal lands. These much-needed reforms
will encourage oil and gas development on federal land and
promote economic development and diversification in energy
producing States across the West.
Administrative fees assessed on mineral revenues
The Mineral Leasing Act (30 U.S.C. 181 et seq.) provides
for States to receive a 50 percent share of the revenues
resulting from the leasing and production of onshore mineral
resources on federal land within their borders.\27\ These
revenues include payments from rentals, bonuses, and royalties
on various forms of energy production on federal public
lands.\28\ Specifically, revenues are generated by payments
related to oil, gas, and coal leasing, as well as the leasing
of certain minerals, including phosphates, sulfur, sodium, and
potash.\29\
---------------------------------------------------------------------------
\27\30 U.S.C. Sec. 181. Alaska, which receives a higher percentage,
is the only exception.
\28\Marc Humphries, Energy and Mineral Development on Federal Land
(2015). http://www.crs.gov/Reports/
IF10127?source=search&guid=ab1ee1f40564437797071c178c8fa2ad
&index=.
\29\Briefing by Marc Humphries, Specialist in Energy Policy,
Congressional Research Service received by Energy and Mineral Resources
Subcommittee Majority Staff on August 20, 2017.
---------------------------------------------------------------------------
Within the Department of the Interior (DOI), the Office of
Natural Resources Revenue (ONRR) manages onshore and offshore
federal and Indian mineral revenues associated with the leasing
and production of oil, natural gas, solid minerals, and
renewable energy resources. ONRR is responsible for the
collection, verification, and disbursement of revenues
according to the Mineral Leasing Act.\30\ Once ONRR collects
and verifies these revenues, the agency disperses the
appropriate amounts to the States. While the law provides for
mineral revenues to be shared evenly between the federal
government and the States, DOI has assessed an administrative
fee on mineral revenue collection since 2007 under Public Law
110-161. In 2014, the Mineral Leasing Act was amended to make
this fee assessment authority permanent by Public Law 113-67.
This two percent fee is used by DOI to cover the cost of
collecting bonuses, rents, and royalties and dispersing
revenues to the States. In FY 2016, this fee amounted to
approximately $25 million.\31\
---------------------------------------------------------------------------
\30\30 U.S. Department of Interior. Office of Natural Resources
Revenue. Highlights. https://www.onrr.gov/about/pdfdocs/
Fact%20Sheet_ONRR%20Highlights_July%202016.pdf.
\31\United States Department of Interior. Budget Justifications and
Performance Information Fiscal Year 2018. Office of the Secretary
Department-Wide Programs. https://www.doi.gov/sites/doi.gov/files/
uploads/fy2018_os_budget_justication.pdf.
---------------------------------------------------------------------------
The ONSHORE Act would enable States to administer the
collection of their share of mineral revenues produced on their
lands, eliminating the need for this administrative fee charged
by the federal government. Specifically, this legislation would
amend the Mineral Leasing Act to remove the authorization for
the two percent administrative fee for States with approved
regulatory programs under the ONSHORE Act. This will enable
States with approved regulatory programs to receive the
entirety of their 50 percent share of federal mineral revenues.
Under the bill, States can still choose to forego this option
and continue to receive their revenue disbursements through the
current process administered by ONRR.
Federal mineral revenues are a crucial source of income for
the States, serving to offset losses in private tax revenue due
to the tax-exempt status of federal land.\32\ States utilize
these funds to mitigate the environmental impacts of mineral
development, support infrastructure projects,\33\ and fund
public services and programs, including public school systems
and community colleges.\34\ Allowing the States to receive the
entirety of their 50 percent share of federal mineral revenues
will contribute to the provision of these and other necessary
public services.
---------------------------------------------------------------------------
\32\Marc Humphries, Mineral Royalties on Federal Lands: Issues for
Congress (2015). http://www.crs.gov/reports/pdf/R43891.
\33\Marc Humphries, Mineral Royalties on Federal Lands: Issues for
Congress (2015). http://www.crs.gov/reports/pdf/R43891.
\34\The United States Extractive Industries Transparency
Initiative. Explore Data, Wyoming. https://useiti.doi.gov/explore/WY/
#disbursements (Accessed August 29, 2017).
---------------------------------------------------------------------------
Hydraulic fracturing regulations
In 2015, the Obama Administration finalized regulations
that would impose federal requirements on hydraulic fracturing
practices related to oil, gas, or geothermal production on
federal land.\35\ In 2016, the U.S. District Court of Wyoming
invalidated the regulations, noting that Congress has not
authorized DOI to regulate hydraulic fracturing practices.\36\
The Obama Administration appealed this decision to the 10th
Circuit Court of Appeals, which dismissed the case in September
2017 based on BLM's announcement that the agency would repeal
the rule in July of 2017.\37\
---------------------------------------------------------------------------
\35\Devin Henry, Court dismisses lawsuit over Obama-era fracking
rule (September 21, 2017). http://thehill.com/policy/energyenvironment/
351771-court-dismisses-lawsuit-over-obama-era-fracking-rule
\36\Timothy Cama, Obama-appointed judge strikes down federal
fracking rule (June 21, 2016). http://thehill.com/policy/
energyenvironment/284388-judge-strikes-down-federal-fracking-rule
\37\Devin Henry, Court dismisses lawsuit over Obama-era fracking
rule (September 21, 2017). http://thehill.com/policy/energyenvironment/
351771-court-dismisses-lawsuit-over-obama-era-fracking-rule
---------------------------------------------------------------------------
The ONSHORE Act prohibits DOI from enforcing federal
regulations regarding hydraulic fracturing relating to oil,
gas, or geothermal production activities in any State that has
corresponding regulations. Instead, the Department must defer
to the States' requirements concerning hydraulic fracturing on
federal land. The bill would also prevent the Department from
enforcing any federal regulations governing the hydraulic
fracturing process relating to oil, gas, or geothermal
production on land held either in trust or restricted status
for the benefit of Indians except with the consent of the
relevant beneficiaries.
Major Provisions of H.R. 4239
Section 102. Disposition of Revenues from Oil and Gas
Leasing on the Outer Continental Shelf to Producing States.
This section establishes oil and gas revenue sharing structure
for Virginia, North Carolina, South Carolina, Georgia and
Alaska. Modeled after GOMESA, the Atlantic States and Alaska
will ultimately receive 37.5% of the revenues generated by
offshore oil and gas leasing and development. Revenue
Allocations provided by this bill are phased in as follows:
Phase I: 87.5% to US Treasury and 12.5% to qualifying State
treasuries; Phase II: 75% to US Treasury and 25% to qualifying
State treasuries; and Phase III: 50% to the US Treasury; 37.5%
to qualifying State treasuries; 6.25% to the Department of
Transportation for investment in energy infrastructure and
supporting projects in coastal ports; and 6.25% to DOI for
projects on National Park System units. The section provides
for a minimum allocation of 10% of revenues among the States
within 200 nautical miles of a leased tract.
Section 103. Limitation on the Amount of Distributed
Qualified Outer Continental Shelf Revenues Under GOMESA. This
section modifies Section 105(f)(1) of GOMESA to increase the
limitations on distributions to Gulf producing States over
time.
Section 104. Limitation on Authority of the President to
Withdraw Areas of the Outer Continental Shelf from Oil and Gas
Leasing. This section requires an Act of Congress to establish
new moratoriums on offshore drilling and for the creation of
National Marine Monuments. It also rescinds all OCS
withdrawals, other than those explicitly listed in the bill.
Section 105. Modification to the Outer Continental Shelf
Leasing Program. This section requires the execution of each
approved lease sale in an existing Five Year Plan, should the
Secretary call for a revised plan, thereby improving planning
certainty by preventing the cancellation of an approved lease
sale.
Section 106. Inspection Fee Collection. This section
permanently authorizes the collection of offshore platform and
drill rig inspection fees, without raising or otherwise
affecting current fees.
Section 107. Arctic Rule Shall Have No Force or Effect.
This section precludes the enforcement of the ``Oil and Gas and
Sulfur Operations on the Outer Continental Shelf--Requirements
for Exploratory Drilling on the Arctic Outer Continental
Shelf'' rule, also known as the Arctic Rule.
Section 108. Application of the Outer Continental Shelf
Lands Act (OCSLA) to the Territories of the United States. This
section applies the OCSLA to all U.S. territories, providing
the Secretary the authority to conduct energy lease sales and
manage offshore natural resources.
Section 109. Wind Lease Sales on the Outer Continental
Shelf. This section mandates offshore wind lease sales offshore
California should this area be compatible with Department of
Defense activities. In addition, the section authorizes an
offshore wind lease sale offshore Hawaii if it would be
compatible with Department of Defense activities and the
feasibility study conducted by the Secretary supports. Finally,
the section requires the Secretary to conduct economic
feasibility studies for potential offshore wind leases off
Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
Section 110. Reducing Permitting Delays for Taking of
Marine Mammals. This section addresses permits for the taking
of marine mammals by clarifying certain definitions and
establishing timelines for permits under the Marine Mammal
Protection Act of 1972 (MMPA, 16 U.S.C. 1361 et seq.). It also
eliminates duplicative regulation by exempting authorized
permit holders from section 9 of the Endangered Species Act of
1972 (16 U.S.C. 1538). This section also transfers the MMPA
permitting responsibilities from the Department of Commerce to
the Department of the Interior for activities associated with
operations authorized under the OCSLA.
Section 111. Effect. This section affirms that nothing in
this bill shall modify the existing moratorium in the eastern
Gulf of Mexico as imposed by section 104 of GOMESA, and states
that no section of this Act will modify the 2017-2022 OCS
leasing program with respect to the State of Florida.
Section 202. Cooperative Federalism in Oil and Gas
Permitting on Available Federal Land. This section amends the
Mineral Leasing Act to allow the Secretary of the Interior to
delegate to the States authority for permitting and regulation
of oil and gas activities on federal land within that State.
Specifically, States may seek approval to process Applications
for Permit to Drill (APDs) or drilling plans. States that seek
approval to process APDs or drilling plans may also seek
delegated authority from the Secretary to process sundry
notices. States may also assume authority for the inspection
and enforcement of drilling operations on federal land by
entering in a Memorandum of Understanding (MOU) with the
Secretary delineating State and federal responsibilities. This
section directs States seeking to assume these responsibilities
to submit an application for approval to the Secretary
containing: (1) a description of the State program that the
State proposes to establish and administer under State law; and
(2) a statement from the Governor or attorney general of the
State that the laws of such State provide adequate authority to
carry out the State program. The section requires the Secretary
to approve or disapprove an application within 180 days of
receipt. The Secretary may approve an application if the
Secretary has: (1) determined that the State would be at least
as effective as the Secretary in issuing and enforcing permits;
(2) determined that the State applicant's program complies with
this Act and provides for the termination of permits if a
violation warrants such action; (3) determined that the State
applicant has sufficient personnel and funding to carry out the
State regulatory program; (4) provided public notice,
opportunity for public comment, and held a public hearing
within the State; (5) determined that approval of the State
program would not result in a proportional decrease in royalty
payments to the Treasury; and (6) entered into a MOU with a
State applicant that delineates the federal and State
responsibilities with respect to inspection and enforcement, if
applicable. The section permits States to enter into an MOU
with the Secretary of the Interior so that the Secretary may
offer technical assistance in developing a proposed State
program and delineate State and federal responsibilities. The
section allows States that choose to take over the entire APD
process to charge a fee less than or equal to the APD fee
charged by the federal government and requires such States to
use the fee to administer the State program. The section
provides permit applicants with the option to appeal any APD or
drilling plan application denied by the State to the Department
of the Interior Office of Hearings and Appeals. The section
allows, if a State is not adequately enforcing APDs or drilling
plans, the Secretary to provide for the federal administration
or enforcement of such permits or plans after notifying the
State of any deficiencies and allowing 30 days for the State to
correct those deficiencies. A State may appeal the Secretary's
decision to assume these delegated authorities in the
applicable U.S. District Court. The section also defines
available federal land as federal land that is located within
the boundaries of a State, is not held in trust for a
federally-recognized Indian Tribe, is not a unit of the
National Park System or National Wildlife Refuge System where
drilling is prohibited, is not a Congressionally-approved
wilderness area under the Wilderness Act, and has been
identified as land available for lease for exploration,
development and production of oil and gas by the BLM under a
Resource Management Plan or Integrated Activity Plan, or by the
Forest Service under a Forest Management Plan. This section
directs the Secretary to conduct inspections and charge
inspection fees to operators on federal land in States that
have been delegated the authority to administer the entire APD
process, even if those States have entered into an MOU with the
Secretary allowing the State to assume certain inspection and
enforcement authorities. This allows the Secretary to conduct
inspections in addition to those conducted by the State to
ensure federal oversight.
Section 203. Conveyance to Certain States of Property
Interest in State Share of Royalties and Other Payments. This
section amends the Mineral Leasing Act to provide that the two
percent administrative fee charged by the federal government on
mineral revenue collection is only assessed on States without
approved State programs. This section requires, upon request,
the Secretary of the Interior to convey to a State all right,
title, and interest in and to a percentage of the amounts
required to be paid into the Treasury from sales, bonuses,
royalties, and rentals for public land or deposits located in
that State. A State may only elect to collect oil and gas
revenues if that State has an approved State program. Once the
Secretary has conveyed the right, title and interest to a
State, mineral revenue payments will be made directly to the
State rather than to the Treasury.
Section 204. Permitting on Non-Federal Surface Estate. This
section amends the Mineral Leasing Act to clarify that
permitting for operations on State or private surface in which
less than 50% of minerals accessed are owned by the federal
government will not be considered a federal action and shall
not require a federal permit from the BLM. The section amends
the Mineral Leasing Act to clarify that permitting for oil and
gas operations on non-federal surface estate concerning non-
federal minerals that may have potential drainage impacts on
federal minerals is not a federal action and shall not require
a federal permit from the BLM.
Section 205. State and Tribal Authority for Hydraulic
Fracturing Regulation. This section amends the Mineral Leasing
Act to require the Secretary to defer to State regulations,
permitting, and guidance for all activities regarding hydraulic
fracturing relating to oil, gas, or geothermal production
activities on federal land. It also requires each State to
submit to BLM a copy of its regulations that: (1) apply to
hydraulic fracturing operations on federal land; and (2)
require disclosure of chemicals used in hydraulic fracturing
operations on federal land. The Secretary of the Interior must
make such State regulations available to the public. The
section also prohibits the Secretary of the Interior from
enforcing any federal regulation, guidance, or permit
requirement governing the hydraulic fracturing process relating
to oil, gas, or geothermal production activities on land held
either in trust or restricted status for the benefit of Indians
except with the express consent of the beneficiary on whose
behalf such land is held in trust or restricted status.
Section 206. Review of Integrated Activity Plan for the
National Petroleum Reserve in Alaska (NPR-A). This section
directs the Secretary of the Interior to review the areas open
to leasing within the NPR-A to determine which lands within the
NPR-A should be made available for oil and gas leasing, and
make additional lands available for leasing accordingly.
Section 207. Protested Lease Sales. This section directs
the Secretary to resolve any protests to a lease sale within 60
days of payment by a successful bidder of the remainder of the
bonus bid, if any, and the annual rental for the first lease
year.
Section 208. Clarification Regarding Liability under the
Migratory Bird Treaty Act. This section clarifies that the
Migratory Bird Treaty Act does not prohibit accidental or
incidental take as a result of an otherwise lawful activity.
Committee Action
H.R. 4239 was introduced on November 3, 2017, by
Congressman Steve Scalise (R-LA). The bill was referred to the
Committee on Natural Resources. On November 7, 2017, the
Subcommittee on Energy and Mineral Resources held a hearing on
a discussion draft of the legislation and held hearings on
October 11, 2017, and October 13, 2017, on discussion drafts of
Title I and Title II of H.R. 4239, respectively. On November 7,
2017, the Natural Resources Committee met to consider the bill.
Congressman Rob Bishop (R-UT) offered an amendment designated
#1; it was adopted by voice vote. Congressman Darren Soto (D-
FL) offered an amendment designated 075; it was not adopted by
voice vote. Congresswoman Nanette Diaz Barragan (D-CA) offered
an amendment designated 028; it was not adopted by a roll call
vote of 14 ayes to 16 noes, as follows:
Congressman Donald S. Beyer, Jr. (D-VA) offered an
amendment designated 010; it was not adopted by a roll call
vote of 15 ayes to 19 noes, as follows:
Congressman Donald S. Beyer, Jr. (D-VA) offered an
amendment designated 013; it was not adopted by a roll call
vote of 15 ayes to 19 noes, as follows:
Congressman Raul M. Grijalva (D-AZ) offered an amendment
designated 005; it was not adopted by a roll call vote of 15
ayes to 19 noes, as follows:
Congressman Raul M. Grijalva (D-AZ) offered an amendment
designated 012; it was not adopted by a roll call vote of 15
ayes to 19 noes, as follows:
Congressman A. Donald McEachin (D-VA) offered an amendment
designated 002; it was not adopted by voice vote. Congressman
A. Donald McEachin (D-VA) offered an amendment designated 008;
it was not adopted by a roll call vote of 14 ayes to 18 noes,
as follows:
Congressman Alan S. Lowenthal (D-CA) offered an amendment
designated 035; it was not adopted by a roll call vote of 14
ayes to 19 noes, as follows:
Congressman Alan S. Lowenthal (D-CA) offered an amendment
designated 036; it was not adopted by a roll call vote of 13
ayes to 23 noes, as follows:
Congressman Anthony G. Brown (D-MD) offered an amendment
designated 011; it was not adopted by a roll call vote of 13
ayes to 22 noes, as follows:
Congressman Stevan Pearce (R-NM) offered an amendment
designated 046; it was adopted by voice vote. Congressman Mike
Johnson (R-LA) offered an amendment designated 027; it was
adopted by a roll call vote of 23 ayes to 13 noes, as follows:
Congresswoman Liz Cheney (R-WY) offered an amendment
designated #1; it was adopted by a roll call vote of 20 ayes to
14 noes, as follows:
Congressman Daniel Webster (R-FL) offered an amendment
designated 007; it was adopted by voice vote. The bill, as
amended, was then ordered favorably reported to the House of
Representatives on November 8, 2017, by a roll call vote of 19
ayes and 14 noes, as follows:
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Compliance With House Rule XIII and Congressional Budget Act
1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, December 1, 2017.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4239, the SECURE
American Energy Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Kathleen
Gramp and Jeff LaFave.
Sincerely,
Mark P. Hadley
(For Keith Hall, Director).
Enclosure.
H.R. 4239--SECURE American Energy Act
Summary: H.R. 4239 would amend existing laws regarding
energy development on federal lands. Major provisions in the
bill would:
Increase the share of mineral receipts paid
to states under the Mineral Leasing Act (MLA) if states
assumed certain administrative functions related to oil
and gas development on federal lands;
Require the Department of the Interior (DOI)
to assess inspection fees for offshore oil and gas
leases, thereby changing the budgetary classification
of those fees;
Clarify DOI's authority to auction oil and
gas leases on both the Alaska Outer Continental Shelf
(OCS) and the Atlantic OCS;
Authorize new direct spending of OCS
receipts for payments to states and other programs; and
Authorize DOI to auction leases for
developing wind and mineral resources off the coast of
certain U.S. territories.
CBO estimates that enacting H.R. 4239 would reduce net
direct spending by $187 million over the 2018-2027 period. In
addition, CBO estimates that implementing the bill would cost
$186 million over the 2018-2022 period, subject to
appropriation of the necessary amounts. Enacting H.R. 4239
would affect direct spending; therefore, pay-as-you-go
procedures apply. Enacting the bill would not affect revenues.
CBO cannot determine whether enacting the bill would
increase net direct spending or on-budget deficits by more than
$2.5 billion in any of the four consecutive 10-year periods
beginning in 2028.
H.R. 4239 would impose an intergovernmental mandate as
defined in the Unfunded Mandates Reform Act (UMRA) by requiring
state agencies to send the Bureau of Land Management (BLM) a
copy of each state regulation that applies to hydraulic
fracturing on federal land as well as a copy of each state
regulation that requires disclosure of chemicals used in
hydraulic fracturing. Because of the low administrative cost
for each state to submit those reports to BLM, CBO estimates
that the costs of the mandate would be small and well below the
annual threshold established in UMRA for intergovernmental
mandates ($78 million in 2017, adjusted for inflation).
The bill contains no private-sector mandates as defined in
UMRA.
Estimated cost to the Federal Government: The estimated
budgetary effects of H.R. 4239 are shown in the following
table. The costs of this legislation fall within budget
functions 300 (natural resources and the environment), 800
(general government), and 950 (undistributed offsetting
receipts).
Basis of estimate: For this estimate, CBO assumes that H.R.
4239 will be enacted in fiscal year 2018 and that the necessary
amounts will be appropriated for each year.
Direct spending
CBO estimates that enacting H.R. 4239 would reduce net
direct spending by $187 million over the 2018-2027 period.
Payments to States Under the MLA. When companies acquire
oil and gas leases on federal lands, an application for a
permit to drill (APD) must be approved for each well. To obtain
approval, companies must submit a drilling plan; a surface use
plan, which requires the completion of an environmental
analysis to ensure compliance with the National Environmental
Policy Act; and other materials that must be approved by DOI
before a permit to drill is issued.
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-2022 2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Payments to States Under the MLA:
Estimated Budget Authority.................... 0 23 31 31 32 33 35 36 37 38 117 296
Estimated Outlays............................. 0 23 31 31 32 33 35 36 37 38 117 296
Fees from Applications for Permits to Drill:
Estimated Budget Authority.................... 1 1 1 0 0 0 0 0 0 0 3 3
Estimated Outlays............................. 1 1 1 0 0 0 0 0 0 0 3 3
Inspection Fees for Offshore Oil and Gas
Operations:
Estimated Budget Authority.................... 0 -40 -50 -45 -45 -45 -45 -45 -45 -45 -180 -405
Estimated Outlays............................. 0 -40 -50 -45 -45 -45 -45 -45 -45 -45 -180 -405
Authority to Offer Leases on the Alaska and the
Atlantic OCS:
Estimated Budget Authority.................... 0 0 0 0 0 -26 -26 -26 -26 -26 0 -130
Estimated Outlays............................. 0 0 0 0 0 -26 -26 -26 -26 -26 0 -130
Spending of Receipts from the Alaska and the
Atlantic OCS:
Estimated Budget Authority.................... 0 0 0 0 1 0 9 19 20 20 1 69
Estimated Outlays............................. 0 0 0 0 1 0 9 19 20 20 1 69
Renewable Energy Leases on the OCS:
Estimated Budget Authority.................... 0 0 0 0 0 -4 -4 -4 -4 -4 0 -20
Estimated Outlays............................. 0 0 0 0 0 -4 -4 -4 -4 -4 0 -20
Total Changes:
Estimated Budget Authority................ 1 -16 -18 -14 -12 -42 -31 -20 -18 -17 -59 -187
Estimated Outlays......................... 1 -16 -18 -14 -12 -42 -31 -20 -18 -17 -59 -187
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level..................... 6 40 50 45 45 46 45 45 46 45 186 413
Estimated Outlays................................. 0 42 52 47 45 45 46 45 45 46 186 413
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.
MLA = Mineral Leasing Act.
OCS = Outer Continental Shelf.
H.R. 4239 would authorize DOI to grant states the authority
to carry out administrative tasks associated with APDs. Under
the bill, states could request either a more limited authority
to take over the approval of drilling plans or they could opt
to manage the entire APD process, which would require them to
review surface use plans and other materials in addition to
drilling plans. Any state that chose to take over either of
those functions would be entitled to an additional 1 percent
share of amounts paid to DOI by the companies that extract
minerals from federal lands. Under the MLA, states receive 49
percent of all royalties, rents, and bonus bids, which are
amounts that companies must pay to the federal government to
acquire leases.\1\
---------------------------------------------------------------------------
\1\The state of Alaska is an exception to this provision of the
MLA. It receives 90 percent of royalties, rents, and bonus bids from
federal leases outside of the National Petroleum Reserve in Alaska.
---------------------------------------------------------------------------
Using information provided by DOI and by officials in
states with significant oil and gas production on federal
lands, CBO expects that slates would prefer the more limited
authority to approve drilling plans rather than the authority
to manage the entire APD process, because managing the entire
process would place a significantly higher administrative
burden on state agencies. CBO also expects that all states with
federal mineral leases under the MLA would pursue the more
limited authority because they would receive a higher share of
proceeds from federal leases. Under an assumption that DOI
would grant all states the authority to approve drilling plans
within two years of enactment, CBO estimates that this
provision would cost $296 million over the 2019-2027 period for
a 1 percent increase in royalty payments to states.\2\
---------------------------------------------------------------------------
\2\CBO expects that enacting this provision would reduce the amount
of appropriated funds necessary to administer APDs; however, any
reduction in amounts used for that purpose would be offset by increased
spending on other DOI activities.
---------------------------------------------------------------------------
Fees From Applications for Permits to Drill. Under H.R.
4239, companies would no longer need an approved APD for
operations on lands where the surface estate is owned by a
nonfederal entity and the federal interest in the mineral
estate is less than 50 percent. In 2017, DOI collected a total
of $31 million in fees from APDs. The agency is authorized to
spend, without further appropriation, 85 percent of the amounts
collected to administer the APD program through 2020. After
2020, the agency can spend all proceeds from APD fees. CBO
expects that gross fee collections will total between $31
million and $37 million and that net collections will total $5
million each year. The type of lands affected by this provision
account for between 10 percent and 30 percent of all APDs
issued, and CBO estimates that enacting this provision would
reduce net receipts by a similar amount. Thus, enacting this
provision would cost $3 million over the 2018-2020 period.
Inspection Fees for Offshore Oil and Gas Operations. H.R.
4239 would direct DOI to collect annual fees to cover the cost
of inspecting OCS facilities and drilling operations, subject
to certain conditions. The bill would specify the amounts due
for various types of activities and allow DOI to adjust those
fees for inflation in future years. Amounts collected under the
bill would be deposited into a new fund in the Treasury, and
that money could be spent only if appropriated in annual
appropriation acts.
Based on information from DOI and on historical trends in
such activities, CBO estimates that collecting the inspection
fees in H.R. 4239 would increase offsetting receipts by $405
million over the 2018-2027 period. Annual appropriation acts
have authorized DOI to assess similar fees each year, but that
authority expires at the end of 2018. For this estimate, CBO
assumes that the fees authorized by H.R. 4239 would take effect
in fiscal year 2019.
Authority to Offer Leases on the Alaska and the Atlantic
OCS. H.R. 4239 would expressly revoke existing restrictions on
oil and gas leasing on certain portions of the Alaska and
Atlantic OCS. Although the Administration issued an executive
order in April 2017 to reverse those restrictions, that action
is currently under judicial review. Given the legal uncertainty
surrounding DOI's authority to offer leases in those areas,
CBO's baseline projections reflect the assumption that there is
a 50 percent chance that the April 2017 executive order will be
upheld. Because H.R. 4239 would eliminate that uncertainty, CBO
estimates that enacting the bill would increase potential
receipts from those areas by a corresponding amount. Thus,
enacting this provision would increase offsetting receipts by
about $130 million over the 2018-2027 period, relative to
current law. CBO estimates that most of those additional
receipts would stem from leases on the Alaska OCS.
Spending of Receipts from the Alaska and the Atlantic OCS.
H.R. 4239 would authorize direct spending of a portion of the
offsetting receipts from leases awarded after the date of
enactment for the Alaska, mid-Atlantic, and south Atlantic OCS.
Under the bill, the portion spent each year would depend on the
timing of OCS lease sales, rising from 12.5 percent to 50
percent over a period of several years. The bill would allocate
that spending for various purposes, including payments to
states and for certain other programs. Funds would be disbursed
the year after receipts were collected.
CBO estimates that the receipts that would be available for
direct spending under this provision would total $315 million
over the 2018-2027 period--$210 million that will be collected
under current law and $105 million that would result from new
authority in the bill.\3\ Over the 2018-2029 period, the
formulas in the bill would authorize an average of 22 percent
to be spent without further appropriation. Thus, CBO estimates
that implementing this provision would increase direct spending
by $69 million over the 10-year period, with almost all of
those costs occurring after 2022.\4\
---------------------------------------------------------------------------
\3\CBO's estimate of receipts subject to revenue sharing reflects
the one-year lag between the time receipts are collected and spent. It
consists of $95 million from leases on the Atlantic OCS under current
law and about $220 million from the Alaska OCS ($115 million under
current law and another $105 million assuming enactment of provisions
in H.R. 4239 that would clarify DOI's leasing authority in areas
previously subject to restrictions).
\4\CBO estimates that most of the direct spending on would occur
after 2022 because the current five-year plan for OCS lease sales does
not include auctions on the Atlantic or most of the Alaska OCS over the
2017-2022 period. Decisions about whether to include those areas in
future five-year plans will be made administratively in consultation
with industry and states. Because scheduling policies for lease sales
have varied among Administrations, CBO assumes that there is a 50
percent chance that the affected areas would be included in the five-
year plan covering 2023 to 2027. If a new five-year plan is adopted
before 2023, CBO will update its baseline projections to reflect the
revised auction schedule.
---------------------------------------------------------------------------
Renewable Energy Leases on the OCS. H.R. 4239 would direct
DOI to study the potential for production of electricity
generated by wind off the coasts of Puerto Rico, the U.S.
Virgin Islands, Guam, American Samoa, and the Northern Marianas
Islands. If those studies showed that developing offshore wind
resources was feasible, the bill would direct DOI to conduct
lease sales in those areas. CBO estimates that implementing
those provisions would increase offsetting receipts by $20
million over the 2018-2027 period, net of payments to states
and territories.
Since 2013, auctions from leases of wind resources along
the Atlantic coast have generated gross receipts of almost $70
million, or a net of $50 million after payments to states.
Several factors suggest that receipts from auctions in the
Caribbean and Pacific may be considerably lower, at least for
the next few years. For example, technological advances are
needed to deploy systems that can withstand category 5
hurricane-force winds in the Caribbean. Similarly, current
technologies for producing electricity from offshore wind may
not be economically viable for the relatively small markets in
the Pacific territories. CBO estimates that any auctions in the
new areas probably would occur toward the end of the 10-year
period and that the proceeds would be similar to the amounts
received for smaller sales (between $1 million and $10 million
each).
Finally, the bill also would direct DOI to study and then
to conduct lease sales for wind resources off the coasts of
California and Hawaii. CBO estimates that those requirements
would have no significant net effect on offsetting receipts
because such auctions are expected to occur under current law
as soon as practical.
Mineral Licenses for the OCS Adjacent to U.S. Territories
and Possessions. H.R. 4239 would authorize DOI to issue
licenses to companies to explore and develop mineral resources
other than oil and gas in areas within the exclusive economic
zone (EEZ) on the OCS adjacent to any territory or possession
of the United States. The duration of and compensation for such
licenses would be determined by the Secretary of the Interior
and could be awarded noncompetitively. A licensee would be
entitled to a lease for the area for development if valuable
minerals were discovered, subject to royalty rates and lease
terms specified by the Secretary.
Based on the available information regarding deep-sea
mining opportunities in the South Pacific, CBO estimates that
any proceeds from issuing licenses for such mining would be
negligible over the 2018-2027 period. According to the World
Bank and others, the EEZs off the coast of American Samoa and
other territories are relatively small and no large nodules of
precious metals or minerals have been discovered.\5\
---------------------------------------------------------------------------
\5\See, for example, World Bank Precautionary Management of Deep
Sea Mining Potential in Pacific Island Countries (draft for discussion,
accessed November 29, 2017). http://tinyurl.com/y9a81q18 (PDF, 3.4 MB).
---------------------------------------------------------------------------
Spending subject to appropriation
CBO estimates that implementing H.R. 4239 would cost $186
million over the 2018-2022 period, subject to appropriation of
the necessary amounts, largely as a result of provisions
changing the budgetary classification of fees for inspections
of OCS facilities.
Based on historical trends in spending for similar
activities, CBO estimates that completing the studies and
activities related to leasing off the coast of U.S. territories
would cost about $6 million over the 2018-2022 period. Most of
that spending would be for the technical and environmental
assessments of offshore wind and mineral development off the
coasts of U.S. territories in the Caribbean and South Pacific.
CBO estimates that conducting lease sales in those areas would
cost about $2 million, but expects that such spending would
occur after 2022.
Under H.R. 4239, the proceeds from fees on inspections of
OCS facilities would be treated as reductions in direct
spending. In recent years, the authority for DOI to collect
fees for OCS inspections has been provided in annual
appropriation acts, and the proceeds were netted against
discretionary appropriations. As a result, CBO estimates that
implementing this change would increase DOI's net spending
subject to appropriation by a corresponding amount--$180
million over the 2018-2022 period and $405 million over the
2018-2027 period. CBO estimates that implementing H.R. 4239
would have no significant effect on the discretionary cost of
inspecting OCS operations.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4239, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON NOVEMBER 8, 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-2022 2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact.................... 1 -16 -18 -14 -12 -42 -31 -20 -18 -17 -59 -187
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long-term direct spending and deficits: CBO
cannot determine whether enacting H.R. 4239 would increase net
direct spending by more than $2.5 billion or on-budget deficits
by more than $5 billion in any of the four consecutive 10-year
periods beginning in 2028. Under H.R. 4239, DOI would be
authorized to spend proceeds from federal oil and gas leases
for several purposes without further appropriation after 2027.
CBO expects that outlays resulting from the bill would be less
than $2.5 billion in each of the respective decades if the
resources found on the Atlantic OCS remain undeveloped, but
would exceed $2.5 billion in at least one of the decades if
market conditions spurred production and generated significant
bonus payments and royalties from that area.
Spending of receipts from the Gulf of Mexico OCS
The bill would increase the amount authorized to be spent
from proceeds from leases in the Gulf of Mexico by $150 million
a year from 2029 through 2055, or by a total of $1.5 billion in
certain decades. H.R. 4239 would change the statutory cap on
those payments to about $650 million a year during the 2029-
2059 period. Under the technical and economic assumptions used
in CBO's June 2017 baseline projections CBO estimates that
enacting this provision would increase outlays by $150 million
each year over the 2029-2055 period. Applying that cap to
spending over the 2056-2059 period could reduce direct spending
in those years relative to current law.
Spending of receipts from the Alaska and the Atlantic OCS
In addition, the bill would authorize DOI to spend 50
percent of the proceeds from leasing on the Alaska and Atlantic
OCS during the period.\6\ Whether spending from the bonus bids,
rents, and royalties from the Atlantic OCS would equal or
exceed $1 billion in any decade (an average of $100 million a
year) would depend on the nature of the resources in the area
as well as on market conditions. Estimates of future bonus
payments and royalties are inherently uncertain, especially for
areas that have not been developed. During the 1970s and 1980s,
for example, companies spent $2.8 billion ($7.7 billion in
today's dollars) for leases on the Atlantic OCS although none
produced any oil or gas.
---------------------------------------------------------------------------
\6\The net effect of the legislation on direct spending from new
leases on the Alaska OCS after 2027 depends on the outcome of the
judicial review of Presidential actions restricting development. CBO
currently estimates that the cost of provisions authorizing direct
spending of receipts from the Alaska OCS would be offset by the
additional income stemming from provisions in the bill that increase
the probability that leasing would occur there. That estimate could
change, however, depending on the outcome of the judicial review.
---------------------------------------------------------------------------
Starting in 2029, H.R. 4239 would increase direct spending
of receipts from certain leases on the OCS. Under current law,
a portion of the receipts from leases issued after 2006 in the
Central and Western Gulf of Mexico may be spent for payments to
certain states and the Land and Water Conservation Fund without
further appropriation. Current law caps those payments at $500
million a year through 2055, after which payments will be
determined by formula.
Mandates: H.R. 4239 would impose an intergovernmental
mandate as defined in UMRA by requiring state agencies to send
BLM a copy of each state regulation that applies to hydraulic
fracturing on federal land as well as a copy of each state
regulation that requires disclosure of chemicals used in
hydraulic fracturing. Because of the low administrative cost of
meeting those requirements, CBO estimates that the costs of the
mandate would be small and well below the annual threshold
established in UMRA for intergovernmental mandates ($78 million
in 2017, adjusted for inflation).
The legislation would benefit state and local governments
by increasing the generation of royalties from oil and gas
production on public lands and in federal waters. Portions of
the royalties would be shared with those governments under
formulas specified by the bill and under federal laws governing
oil and gas production. Over the 2018-2027 period, CBO
estimates, state and local governments in which production
occurs would receive a total of about $370 million in
royalties.
The bill contains no private-sector mandates as defined in
UMRA.
Estimate prepared by: Federal costs: Kathleen Gramp and
Jeff LaFave; Mandates: Jon Sperl.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to distribute revenues from oil and
gas leasing on the outer Continental Shelf to certain coastal
States, to require sale of approved offshore oil and gas
leases, to promote offshore wind lease sales, and to empower
States to manage the development and production of oil and gas
on available federal land.
Earmark Statement
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Compliance With H. Res. 5
Directed Rule Making. Section 108, Application of Outer
Continental Shelf Lands Act With Respect to Territories of the
United States, contains one directed rulemaking for the
Secretary of the Interior for exploration licenses and leases
on the outer Continental Shelf adjacent to territories and
possessions.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
OUTER CONTINENTAL SHELF LANDS ACT
* * * * * * *
Sec. 2. Definitions.--When used in this Act--
(a) The term ``outer Continental Shelf'' means all submerged
lands lying seaward and outside of the area of lands beneath
navigable waters as defined in section 2 of the Submerged Lands
Act (Public Law 31, Eighty-third Congress, first session), and
of which the subsoil and seabed appertain to the United States
and are subject to its jurisdiction and control or lying within
the exclusive economic zone of the United States;
(b) The term ``Secretary'' means the Secretary of the
Interior, except that with respect to functions under this Act
transferred to, or vested in, the Secretary of Energy or the
Federal Energy Regulatory Commission by or pursuant to the
Department of Energy Organization Act (42 U.S.C. 7101 et seq.),
the term ``Secretary'' means the Secretary of Energy, or the
Federal Energy Regulatory Commission, as the case may be;
(c) The term ``lease'' means any form of authorization which
is issued under section 8 or maintained under section 6 of this
Act and which authorizes exploration for, and development and
production of, minerals;
(d) The term ``person'' includes, in addition to a natural
person, an association, a State, a political subdivision of a
State, or a private, public, or municipal corporation;
(e) The term ``coastal zone'' means the coastal waters
(including the lands therein and thereunder) and the adjacent
shorelands (including the waters therein and thereunder),
strongly influenced by each other and in proximity to the
shorelines of the several coastal States, and includes islands,
transition and intertidal areas, salt marshes, wetlands, and
beaches, which zone extends seaward to the outer limit of the
United States territorial sea and extends inland from the
shorelines to the extent necessary to control shorelands, the
uses of which have a direct and significant impact on the
coastal waters, and the inward boundaries of which may be
identified by the several coastal States, pursuant to the
authority of section 305(b)(1) of the Coastal Zone Management
Act of 1972 (16 U.S.C. 1454(b)(1));
(f) The term ``affected State'' means, with respect to any
program, plan, lease sale, or other activity, proposed,
conducted, or approved pursuant to the provisions of this Act,
any State--
(1) the laws of which are declared, pursuant to
section 4(a)(2) of this Act, to be the law of the
United States for the portion of the outer Continental
Shelf on which such activity is, or is proposed to be,
conducted;
(2) which is, or is proposed to be, directly
connected by transportation facilities to any
artificial island or structure referred to in section
4(a)(1) of this Act;
(3) which is receiving, or in accordance with the
proposed activity will receive, oil for processing,
refining, or transshipment which was extracted from the
outer Continental Shelf and transported directly to
such State by means of vessels or by a combination of
means including vessels;
(4) which is designated by the Secretary as a State
in which there is a substantial probability of
significant impact on or damage to the coastal, marine,
or human environment, or a State in which there will be
significant changes in the social, governmental, or
economic infrastructure, resulting from the
exploration, development, and production of oil and gas
anywhere on the Outer Continental Shelf; or
(5) in which the Secretary finds that because of such
activity there is, or will be, a significant risk of
serious damage, due to factors such as prevailing winds
and currents, to the marine or coastal environment in
the event of any oilspill, blowout, or release of oil
or gas from vessels, pipelines, or other transshipment
facilities;
(g) The term ``marine environment'' means the physical,
atmospheric, and biological components, conditions, and factors
which interactively determine the productivity, state,
condition, and quality of the marine ecosystem, including the
waters of the high seas, the contiguous zone, transitional and
intertidal areas, salt marshes, and wetlands within the coastal
zone and on the outer Continental Shelf;
(h) The term ``coastal environment'' means the physical
atmospheric, and biological components, conditions, and factors
which interactively determine the productivity, state,
condition, and quality of the terrestrial ecosystem from the
shoreline inward to the boundaries of the coastal zone;
(i) The term ``human environment'' means the physical,
social, and economic components, conditions, and factors which
interactively determine the state, condition, and quality of
living conditions, employment, and health of those affected,
directly or indirectly, by activities occurring on the outer
Continental Shelf;
(j) The term ``Governor'' means the Governor of a State, or
the person or entity designated by, or pursuant to, State law
to exercise the powers granted to such Governor pursuant to
this Act;
(k) The term ``exploration'' means the process of searching
for minerals, including (1) geophysical surveys where magnetic,
gravity, seismic, or other systems are used to detect or imply
the presence of such minerals, and (2) any drilling, whether on
or off known geological structures, including the drilling of a
well in which a discovery of oil or natural gas in paying
quantities is made and the drilling of any additional
delineation well after such discovery which is needed to
delineate any reservoir and to enable the lessee to determine
whether to proceed with development and production;
(l) The term ``development'' means those activities which
take place following discovery of minerals in paying
quantities, including geophysical activity, drilling, platform
construction, and operation of all onshore support facilities,
and which are for the purpose of ultimately producing the
minerals discovered;
(m) The term ``production'' means those activities which take
place after the successful completion of any means for the
removal of minerals, including such removal, field operations,
transfer of minerals to shore, operation monitoring,
maintenance, and work-over drilling;
(n) The term ``antitrust law'' means--
(1) the Sherman Act (15 U.S.C. 1 et seq.);
(2) the Clayton Act (15 U.S.C. 12 et seq.);
(3) the Federal Trade Commission Act (15 U.S.C. 41 et
seq.);
(4) the Wilson Tariff Act (15 U.S.C. 8 et seq.); or
(5) the Act of June 19, 1936, chapter 592 (15 U.S.C.
13, 13a, 13b, and 21a);
(o) The term ``fair market value'' means the value of any
mineral (1) computed at a unit price equivalent to the average
unit price at which such mineral was sold pursuant to a lease
during the period for which any royalty or net profit share is
accrued or reserved to the United States pursuant to such
lease, or (2) if there were no such sales, or if the Secretary
finds that there were an insufficient number of such sales to
equitably determine such value, computed at the average unit
price at which such mineral was sold pursuant to other leases
in the same region of the outer Continental Shelf during such
period, or (3) if there were no sales of such mineral from such
region during such period, or if the Secretary finds that there
are an insufficient number of such sales to equitably determine
such value, at an appropriate price determined by the
Secretary;
(p) The term ``major Federal action'' means any action or
proposal by the Secretary which is subject to the provisions of
section 102(2)(C) of the National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)); [and]
(q) The term ``minerals'' includes oil, gas, sulphur,
geopressured-geothermal and associated resources, and all other
minerals which are authorized by an Act of Congress to be
produced from ``public lands'' as defined in section 103 of the
Federal Land Policy and Management Act of 1976[.]; and
(r) The term ``State'' includes each territory of the United
States.
* * * * * * *
Sec. 4. Laws Applicable to Outer Continental Shelf.--(a)(1)
The Constitution and laws and civil and political jurisdiction
of the United States are hereby extended to the subsoil and
seabed of the outer Continental Shelf and to all artificial
islands, and all installations and other devices permanently or
temporarily attached to the seabed which may be erected thereon
for the purpose of exploring for, developing, or producing
resources therefrom, or any such installation or other device
(other than a ship or vessel) for the purpose of transporting
such resources, to the same extent as if the outer Continental
shelf were an area of exclusive Federal jurisdiction located
within a state: Provided, however, That mineral leases on the
outer Continental Shelf shall be maintained or issued only
under the provisions of this Act.
(2)(A) To the extent that they are applicable and not
inconsistent with this Act or with other Federal laws and
regulations of the Secretary now in effect or hereafter
adopted, the civil and criminal laws of each adjacent State,
now in effect or hereafter adopted, amended, or repealed are
hereby declared to be the law of the United States for that
portion of the subsoil and seabed of the outer Continental
Shelf, and artificial islands and fixed structures erected
thereon, which would be within the area of the State if its
boundaries were extended seaward to the outer margin of the
outer Continental Shelf, and the President shall determine and
publish in the Federal Register such projected lines extending
seaward and defining each such area. All of such applicable
laws shall be administered and enforced by the appropriate
officers and courts of the United States. State taxation laws
shall not apply to the outer Continental Shelf.
(B) Within one year after the date of enactment of this
subparagraph, the President shall establish procedures for
setting any outstanding international boundary dispute
respecting the outer Continental Shelf.
(3) The provisions of this section for adoption of State law
as the law of the United States shall never be interpreted as a
basis for claiming any interest in or jurisdiction on behalf of
any State for any purpose over the seabed and subsoil of the
Outer Continental Shelf, or the property and natural resources
thereof or the revenues therefrom.
(4) This section shall not apply to the territories and
possessions of the United States.
(b) With respect to disability or death of an employee
resulting from any injury occurring as the result of operations
conducted on the outer Continental Shelf for the purpose of
exploring for, developing, removing, or transporting by
pipeline the natural resources, or involving rights to the
natural resources, of the subsoil and seabed of the outer
Continental Shelf, compensation shall be payable under the
provisions of the Longshoremen's and Harbor Workers'
Compensation Act. For the purposes of the extension of the
provisions of the Longshoremen's and Harbor Workers'
Compensation Act under this section--
(1) the term ``employee'' does not include a master
or member of a crew of any vessel, or an officer or
employee of the United States or any agency thereof or
of any State or foreign government, or of any political
subdivision thereof;
(2) the term ``employer'' means an employer any of
whose employees are employed in such operations; and
(3) the term ``United States'' when used in a
geographical sense includes the outer Continental Shelf
and artificial islands and fixed structures thereon.
(c) For the purposes of the National Labor Relations Act, as
amended, any unfair labor practice, as defined in such Act,
occurring upon any artificial island, installation, or other
device referred to in subsection (a) of this section shall be
deemed to have occurred within the judicial district of the
State, the laws of which apply to such artificial island,
installation, or other device pursuant to such subsection,
except that until the President determines the areas within
which such State laws are applicable, the judicial district
shall be that of the State nearest the place of location of
such artifical island, installation, or other device.
(d)(1) The Secretary of the Department in which the Coast
Guard is operating shall have authority to promulgate and
enforce such reasonable regulations with respect to lights and
other warning devices, safety equipment, and other matters
relating to the promotion of safety of life and property on the
artificial islands, installations, and other devices referred
to in subsection (a) or on the waters adjacent thereto, as he
may deem necessary.
(2) The Secretary of the Department in which the Coast Guard
is operating may mark for the protection of navigation any
artificial island, installation, or other device referred to in
subsection (a) whenever the owner has failed suitably to mark
such island, installation, or other device in accordance with
regulation issued under this Act, and the owner shall pay the
cost of such marking.
(e) The authority of the Secretary of the Army to prevent
obstruction to navigation in the navigable waters of the United
States is hereby extended to the artificial islands,
installations, and other devices referred to in subsection (a).
(f) The specific application by this section of certain
provisions of law to the subsoil and seabed of the outer
Continental Shelf and the artificial islands, installations,
and other devices referred to in subsection (a) or to acts or
offenses occurring or committed thereon shall not give rise to
any inference that the application to such islands and
structures, acts, or offenses of any other provision of law is
not intended.
* * * * * * *
Sec. 8. Leases, Easements, and Rights-of-way on the Outer
Continental Shelf.--(a)(1) The Secretary is authorized to grant
to the highest responsible qualified bidder or bidders by
competitive bidding, under regulations promulgated in advance,
any oil and gas lease on submerged lands of the outer
Continental Shelf which are not covered by leases meeting the
requirements of subsection (a) of section 6 of this Act. Such
regulations may provide for the deposit of cash bids in an
interest-bearing account until the Secretary announces his
decision on whether to accept the bids, with the interest
earned thereon to be paid to the Treasury as to bids that are
accepted and to the unsuccessful bidders as to bids that are
rejected. The bidding shall be by sealed bid and, at the
discretion of the Secretary, on the basis of--
(A) cash bonus bid with a royalty at not less than
12\1/2\ per centum fixed by the Secretary in amount or
value of the production saved, removed, or sold;
(B) variable royalty bid based on a per centum in
amount or value of the production saved, removed, or
sold, with either a fixed work commitment based on
dollar amount for exploration or a fixed cash bonus as
determined by the Secretary, or both;
(C) cash bonus bid, or work commitment bid based on a
dollar amount for exploration with a fixed cash bonus,
and a diminishing or sliding royalty based on such
formulae as the Secretary shall determine as equitable
to encourage continued production from the lease area
as resources diminish, but not less than 12\1/2\ per
centum at the beginning of the lease period in amount
or value of the production saved, removed, or sold;
(D) cash bonus bid with a fixed share of the net
profits of no less than 30 per centum to be derived
from the production of oil and gas from the lease area;
(E) fixed cash bonus with the net profit share
reserved as the bid variable;
(F) cash bonus bid with a royalty at no less than
12\1/2\ per centum fixed by the Secretary in amount or
value of the production saved, removed, or sold and a
fixed per centum share of net profits of no less than
30 per centum to be derived from the production of oil
and gas from the lease area;
(G) work commitment bid based on a dollar amount for
exploration with a fixed cash bonus and a fixed royalty
in amount or value of the production saved, removed, or
sold;
(H) cash bonus bid with royalty at no less than 12
and \1/2\ per centum fixed by the Secretary in amount
or value of production saved, removed, or sold, and
with suspension of royalties for a period, volume, or
value of production determined by the Secretary, which
suspensions may vary based on the price of production
from the lease; or
(I) subject to the requirements of paragraph (4) of
this subsection, any modification of bidding systems
authorized in subparagraphs (A) through (G), or any
other systems of bid variables, terms, and conditions
which the Secretary determines to be useful to
accomplish the purposes and policies of this Act,
except that no such bidding system or modification
shall have more than one bid variable.
(2) The Secretary may, in his discretion, defer any part of
the payment of the cash bonus, as authorized in paragraph (1)
of this subsection, according to a schedule announced at the
time of the announcement of the lease sale, but such payment
shall be made in total no later than five years after the date
of the lease sale.
(3)(A) The Secretary may, in order to promote increased
production on the lease area, through direct, secondary, or
tertiary recovery means, reduce or eliminate any royalty or net
profit share set forth in the lease for such area.
(B) In the Western and Central Planning Areas of the Gulf of
Mexico and the portion of the Eastern Planning Area of the Gulf
of Mexico encompassing whole lease blocks lying west of 87
degrees, 30 minutes West longitude and in the Planning Areas
offshore Alaska, the Secretary may, in order to--
(i) promote development or increased production on
producing or non-producing leases; or
(ii) encourage production of marginal resources on
producing or non-producing leases; through primary,
secondary, or tertiary recovery means, reduce or
eliminate any royalty or net profit share set forth in
the lease(s). With the lessee's consent, the Secretary
may make other modifications to the royalty or net
profit share terms of the lease in order to achieve
these purposes.
(C)(i) Notwithstanding the provisions of this Act other than
this subparagraph, with respect to any lease or unit in
existence on the date of enactment of the Outer Continental
Shelf Deep Water Royalty Relief Act meeting the requirements of
this subparagraph, no royalty payments shall be due on new
production, as defined in clause (iv) of this subparagraph,
from any lease or unit located in water depths of 200 meters or
greater in the Western and Central Planning Areas of the Gulf
of Mexico, including that portion of the Eastern Planning Area
of the Gulf of Mexico encompassing whole lease blocks lying
west of 87 degrees, 30 minutes West longitude, until such
volume of production as determined pursuant to clause (ii) has
been produced by the lessee.
(ii) Upon submission of a complete application by the lessee,
the Secretary shall determine within 180 days of such
application whether new production from such lease or unit
would be economic in the absence of the relief from the
requirement to pay royalties provided for by clause (i) of this
subparagraph. In making such determination, the Secretary shall
consider the increased technological and financial risk of deep
water development and all costs associated with exploring,
developing, and producing from the lease. The lessee shall
provide information required for a complete application to the
Secretary prior to such determination. The Secretary shall
clearly define the information required for a complete
application under this section. Such application may be made on
the basis of an individual lease or unit. If the Secretary
determines that such new production would be economic in the
absence of the relief from the requirement to pay royalties
provided for by clause (i) of this subparagraph, the provisions
of clause (i) shall not apply to such production. If the
Secretary determines that such new production would not be
economic in the absence of the relief from the requirement to
pay royalties provided for by clause (i), the Secretary must
determine the volume of production from the lease or unit on
which no royalties would be due in order to make such new
production economically viable; except that for new production
as defined in clause (iv)(I), in no case will that volume be
less than 17.5 million barrels of oil equivalent in water
depths of 200 to 400 meters, 52.5 million barrels of oil
equivalent in 400-800 meters of water, and 87.5 million barrels
of oil equivalent in water depths greater than 800 meters.
Redetermination of the applicability of clause (i) shall be
undertaken by the Secretary when requested by the lessee prior
to the commencement of the new production and upon significant
change in the factors upon which the original determination was
made. The Secretary shall make such redetermination within 120
days of submission of a complete application. The Secretary may
extend the time period for making any determination or
redetermination under this clause for 30 days, or longer if
agreed to by the applicant, if circumstances so warrant. The
lessee shall be notified in writing of any determination or
redetermination and the reasons for and assumptions used for
such determination. Any determination or redetermination under
this clause shall be a final agency action. The Secretary's
determination or redetermination shall be judicially reviewable
under section 10(a) of the Administrative Procedures Act (5
U.S.C. 702), only for actions filed within 30 days of the
Secretary's determination or redetermination.
(iii) In the event that the Secretary fails to make the
determination or redetermination called for in clause (ii) upon
application by the lessee within the time period, together with
any extension thereof, provided for by clause (ii), no royalty
payments shall be due on new production as follows:
(I) For new production, as defined in clause (iv)(I)
of this subparagraph, no royalty shall be due on such
production according to the schedule of minimum volumes
specified in clause (ii) of this subparagraph.
(II) For new production, as defined in clause
(iv)(II) of this subparagraph, no royalty shall be due
on such production for one year following the start of
such production.
(iv) For purposes of this subparagraph, the term ``new
production'' is--
(I) any production from a lease from which no
royalties are due on production, other than test
production, prior to the date of enactment of the Outer
Continental Shelf Deep Water Royalty Relief Act; or
(II) any production resulting from lease development
activities pursuant to a Development Operations
Coordination Document, or supplement thereto that would
expand production significantly beyond the level
anticipated in the Development Operations Coordination
Document, approved by the Secretary after the date of
enactment of the Outer Continental Shelf Deep Water
Royalty Relief Act.
(v) During the production of volumes determined pursuant to
clauses (ii) or (iii) of this subparagraph, in any year during
which the arithmetic average of the closing prices on the New
York Mercantile Exchange for light sweet crude oil exceeds
$28.00 per barrel, any production of oil will be subject to
royalties at the lease stipulated royalty rate. Any production
subject to this clause shall be counted toward the production
volume determined pursuant to clause (ii) or (iii). Estimated
royalty payments will be made if such average of the closing
prices for the previous year exceeds $28.00. After the end of
the calendar year, when the new average price can be
calculated, lessees will pay any royalties due, with interest
but without penalty, or can apply for a refund, with interest,
of any overpayment.
(vi) During the production of volumes determined pursuant to
clause (ii) or (iii) of this subparagraph, in any year during
which the arithmetic average of the closing prices on the New
York Mercantile Exchange for natural gas exceeds $3.50 per
million British thermal units, any production of natural gas
will be subject to royalties at the lease stipulated royalty
rate. Any production subject to this clause shall be counted
toward the production volume determined pursuant to clauses
(ii) or (iii). Estimated royalty payments will be made if such
average of the closing prices for the previous year exceeds
$3.50. After the end of the calendar year, when the new average
price can be calculated, lessees will pay any royalties due,
with interest but without penalty, or can apply for a refund,
with interest, of any overpayment.
(vii) The prices referred to in clauses (v) and (vi) of this
subparagraph shall be changed during any calendar year after
1994 by the percentage, if any, by which the implicit price
deflator for the gross domestic product changed during the
preceding calendar year.
(4)(A) The Secretary of Energy shall submit any bidding
system authorized in subparagraph (H) of paragraph (1) to the
Senate and House of Respresentatives. The Secretary may
institute such bidding system unless either the Senate or the
House of Representatives passes a resolution of disapproval
within thirty days after receipt of the bidding system.
(B) Subparagraphs (C) through (J) of this paragraph are
enacted by Congress--
(i) as an exercise of the rulemaking power of the
Senate and the House of Representatives, respectively,
and as such they are deemed a part of the rules of each
House, respectively, but they are applicable only with
respect to the procedures to be followed in that House
in the case of resolutions described by this paragraph,
and they supersede other rules only to the extent that
they are inconsistent therewith; and
(ii) with full recognition of the constitutional
right of either House to change the rules (so far as
relating to the procedure of that House) at any time,
in the same manner, and to the same extent as in the
case of any other rule of that House.
(C) A resolution disapproving a bidding system submitted
pursuant to this paragraph shall immediately be referred to a
committee (and all resolutions with respect to the same request
shall be referred to the same committee) by the President of
the Senate or the Speaker of the House of Representative, as
the case may be.
(D) If the committee to which has been referred any
resolution disapproving the bidding system of the Secretary has
not reported the resolution at the end of ten calendar days
after its referral, it shall be in order to move either to
discharge the committee from further consideration of the
resolution or to discharge the committee from further
consideration of any other resolution with respect to the same
bidding system which has been referred to the committee.
(E) A motion to discharge may be made only by an individual
favoring the resolution, shall be highly privileged (except
that it may not be made after the committee has reported a
resolution with respect to the same recommendation), and debate
thereon shall be limited to not more than one hour, to be
divided equally between those favoring and those opposing the
resolution. An amendment to the motion shall not be in order,
and it shall not be in order to move to reconsider the vote by
which the motion is agreed to or disagreed to.
(F) If the motion to discharge is agreed to or disagreed to,
the motion may not be renewed, nor may another motion to
discharge the committee be made with respect to any other
resolution with respect to the same bidding system.
(G) When the committee has reported, or has been discharged
from further consideration of, a resolution as provided in this
paragraph, it shall be at any time thereafter in order (even
though a previous motion to the same effect has been disagreed
to) to move to proceed to the consideration of the resolution.
The motion shall be highly privileged and shall not be
debatable. An amendment to the motion shall not be in order,
and it shall not be in order to move to reconsider the vote by
which the motion is agreed to or disagreed to.
(H) Debate on the resolution is limited to not more than two
hours, to be divided equally between those favoring and those
opposing the resolution. A motion further to limit debate is
not debatable. An amendment to, or motion to recommit, the
resolution is not in order, and it is not in order to move to
reconsider the vote by which the resolution is agreed to or
disagreed to.
(I) Motions to postpone, made with respect to the discharge
from the committee, or the consideration of a resolution with
respect to a bidding system, and motions to proceed to the
consideration of other business, shall be decided without
debate.
(J) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate or the House of
Representatives, as the case may be, to the procedure relating
to a resolution with respect to a bidding system shall be
decided without debate.
(5)(A) During the five-year period commencing on the date of
enactment of this subsection, the Secretary may, in order to
obtain statistical information to determine which bidding
alternatives will best accomplish the purposes and policies of
this Act, require, as to no more than 10 per centum of the
tracts offered each year, each bidder to submit bids for any
area of the outer Continental Shelf in accordance with more
than one of the bidding systems set forth in paragraph (1) of
this subsection. For such statistical purposes, leases may be
awarded using a bidding alternative selected at random for the
acquisition of valid statistical data if such bidding
alternative is otherwise consistent with the provisions of this
Act.
(B) The bidding systems authorized by paragraph (1) of this
subsection, other than the system authorized by subparagraph
(A), shall be applied to not less than 20 per centum and not
more than 60 per centum of the total area offered for leasing
each year during the five-year period beginning on the date of
enactment of this subsection, unless the Secretary determines
that the requirements set forth in this subparagraph are
inconsistent with the purposes and policies of this Act.
(6) At least ninety days prior to notice of any lease sale
under subparagraph (D), (E), (F), or, if appropriate, (H) of
paragraph (1), the Secretary shall by regulation establish
rules to govern the calculation of net profits. In the event of
any dispute between the United States and a lessee concerning
the calculation of the net profits under the regulation issued
pursuant to this paragraph, the burden of proof shall be on the
lessee.
(7) After an oil and gas lease is granted pursuant to any of
the work commitment options of paragraph (1) of this
subsection--
(A) the lessee, at its option, shall deliver to the
Secretary upon issuance of the lease either (i) a cash
deposit for the full amount of the exploration work
commitment, or (ii) a performance bond in form and
substance and with a surety satisfactory to the
Secretary, in the principal amount of such exploration
work commitment assuring the Secretary that such
commitment shall be faithfully discharged in accordance
with this section, regulations, and the lease; and for
purposes of this subparagraph, the principal amount of
such cash deposit or bond may, in accordance with
regulations, be periodically reduced upon proof,
satisfactory to the Secretary, that a portion of the
exploration work commitment has been satisfied;
(B) 50 per centum of all exploration expenditures on,
or directly related to, the lease, including, but not
limited to (i) geological investigations and related
activities, (ii) geophysical investigations including
seismic, geomagnetic, and gravity surveys, data
processing and interpretation, and (iii) exploratory
drilling, core drilling, redrilling, and well
completion or abandonment, including the drilling of
wells sufficient to determine the size and area extent
of any newly discovered field, and including the cost
of mobilization and demobilization of drilling
equipment, shall be included in satisfaction of the
commitment, except that the lessee's general overhead
cost shall not be so included against the work
commitment, but its cost (including employee benefits)
of employees directly assigned to such exploration work
shall be so included; and
(C) if at the end of the primary term of the lease,
including any extension thereof, the full dollar amount
of the exploration work commitment has not been
satisfied, the balance shall then be paid in cash to
the Secretary.
(8) Not later than thirty days before any lease sale, the
Secretary shall submit to the Congress and publish in the
Federal Register a notice--
(A) identifying any bidding system which will be
utilized for such lease sale and the reasons for the
utilization of such bidding system; and
(B) designating the lease tracts selected which are
to be offered in such sale under the bidding system
authorized by subparagraph (A) of paragraph (1) and the
lease tracts selected which are to be offered under any
one or more of the bidding systems authorized by
subparagraphs (B) through (H) of paragraph (1), and the
reasons such lease tracts are to be offered under a
particular bidding system.
(b) An oil and gas lease issued pursuant to this
section shall--
(1) be for a tract consisting of a compact area not
exceeding five thousand seven hundred and sixty acres,
as the Secretary may determine, unless the Secretary
finds that a larger area is necessary to comprise a
reasonable economic production unit;
(2) be for an initial period of--
(A) five years; or
(B) not to exceed ten years where the
Secretary finds that such longer period is
necessary to encourage exploration and
development in areas because of unusually deep
water or other unusually adverse conditions,
and as long after such initial period as oil or gas is
produced from the area in paying quantities, or
drilling or well reworking operations as approved by
the Secretary are conducted thereon;
(3) require the payment of amount or value as
determined by one of the bidding systems set forth in
subsection (a) of this section;
(4) entitle the lessee to explore, develop, and
produce the oil and gas contained within the lease
area, conditioned upon due diligence requirements and
the approval of the development and production plan
required by this Act;
(5) provide for suspension or cancellation of the
lease during the initial lease term or thereafter
pursuant to section 5 of this Act;
(6) contain such rental and other provisions as the
Secretary may prescribe at the time of offering the
area for lease; and
(7) provide a requirement that the lessee offer 20
per centum of the crude oil, condensate, and natural
gas liquids produced on such lease, at the market value
and point of delivery applicable to Federal royalty
oil, to small or independent refiners as defined in the
Emergency Petroleum Allocation Act of 1973.
(c)(1) Following each notice of a proposed lease sale and
before the acceptance of bids and the issuance of leases based
on such bids, the Secretary shall allow the Attorney General,
in consultation with the Federal Trade Commission, thirty days
to review the results of such lease sale, except that the
Attorney General, after consultation with the Federal Trade
Commission, may agree to a shorter review period.
(2) The Attorney General may, in consultation with the
Federal Trade Commission, conduct such antitrust review on the
likely effects the issuance of such leases would have on
competition as the Attorney General, after consultation with
the Federal Trade Commission, deems appropriate and shall
advise the Secretary with respect to such review. The Secretary
shall provide such information as the Attorney General, after
consultation with the Federal Trade Commission, may require in
order to conduct any antitrust review pursuant to this
paragraph and to make recommendations pursuant to paragraph (3)
of this subsection.
(3) The Attorney General, after consultation with the Federal
Trade Commission, may make such recommendations to the
Secretary, including the nonacceptance of any bid, as may be
appropriate to prevent any situation inconsistent with the
antitrust laws. If the Secretary determines, or if the Attorney
General advises the Secretary, after consultation with the
Federal Trade Commission and prior to the issuance of any
lease, that such lease may create or maintain a situation
inconsistent with the antitrust laws, the Secretary may--
(A) refuse (i) to accept an otherwise qualified bid
for such lease, or (ii) to issue such lease,
notwithstanding subsection (a) of this section; or
(B) issue such lease, and notify the lessee and the
Attorney General of the reason for such decision.
(4)(A) Nothing in this subsection shall restrict the power
under any other Act or the common law of the Attorney General,
the Federal Trade Commission, or any other Federal department
or agency to secure information, conduct reviews, make
recommendations, or seek appropriate relief.
(B) Neither the issuance of a lease nor anything in this
subsection shall modify or abridge any private right of action
under the antitrust laws.
(d) No bid for a lease may be submitted if the Secretary
finds, after notice and hearing, that the bidder is not meeting
due diligence requirements on other leases.
(e) No lease issued under this Act may be sold, exchanged,
assigned, or otherwise transferred except with the approval of
the Secretary. Prior to any such approval, the Secretary shall
consult with and give due consideration to the views of the
Attorney General.
(f) Nothing in this Act shall be deemed to convey to any
person, association, corporation, or other business
organization immunity from civil or criminal liability, or to
create defenses to actions, under any antitrust law.
(g)(1) At the time of soliciting nominations for the leasing
of lands containing tracts wholly or partially within three
nautical miles of the seaward boundary of any coastal State,
and subsequently as new information is obtained or developed by
the Secretary, the Secretary, in addition to the information
required by section 26 of this Act, shall provide the Governor
of such State--
(A) an identification and schedule of the areas and
regions proposed to be offered for leasing;
(B) at the request of the Governor of such State, all
information from all sources concerning the
geographical, geological, and ecological
characteristics of such tracts;
(C) an estimate of the oil and gas reserves in the
areas proposed for leasing; and
(D) at the request of the Governor of such State, an
identification of any field, geological structure, or
trap located wholly or partially within three nautical
miles of the seaward boundary of such coastal State,
including all information relating to the entire field,
geological structure, or trap.
The provisions of the first sentence of subsection (c) and the
provisions of subsections (e)-(h) of section 26 of this Act
shall be applicable to the release by the Secretary of any
information to any coastal State under this paragraph. In
addition, the provisions of subsections (c) and (e)-(h) of
section 26 of this Act shall apply in their entirety to the
release by the Secretary to any coastal State of any
information relating to Federal lands beyond three nautical
miles of the seaward boundary of such coastal State.
(2) Notwithstanding any other provision of this Act, the
Secretary shall deposit into a separate account in the Treasury
of the United States all bonuses, rents, and royalties, and
other revenues (derived from any bidding system authorized
under subsection (a)(1), excluding Federal income and windfall
profits taxes, and derived from any lease issued after
September 18, 1978 of any Federal tract which lies wholly (or,
in the case of Alaska, partially until seven years from the
date of settlement of any boundary dispute that is the subject
of an agreement under section 7 of this Act entered into prior
to January 1, 1986 or until April 15, 1993 with respect to any
other tract) within three nautical miles of the seaward
boundary of any coastal State, or, (except as provided above
for Alaska) in the case where a Federal tract lies partially
within three nautical miles of the seaward boundary, a
percentage of bonuses, rents, royalties, and other revenues
(derived from any bidding system authorized under subsection
(a)(1), excluding Federal income and windfall profits taxes,
and derived from any lease issued after September 18, 1978 of
such tract equal to the percentage of surface acreage of the
tract that lies within such three nautical miles. Except as
provided in paragraph (5) of this subsection, not later than
the last business day of the month following the month in which
those revenues are deposited in the Treasury, the Secretary
shall transmit to such coastal State 27 percent of those
revenues, together with all accrued interest thereon. The
remaining balance of such revenues shall be transmitted
simultaneously to the miscellaneous receipts account of the
Treasury of the United States.
(3) Whenever the Secretary or the Governor of a coastal State
determines that a common potentially hydrocarbon-bearing area
may underlie the Federal and State boundary, the Secretary or
the Governor shall notify the other party in writing of his
determination and the Secretary shall provide to the Governor
notice of the current and projected status of the tract or
tracts containing the common potentially hydrocarbon-bearing
area. If the Secretary has leased or intends to lease such
tract or tracts, the Secretary and the Governor of the coastal
State may enter into an agreement to divide the revenues from
production of any common potentially hydrocarbon-bearing area,
by unitization or other royalty sharing agreement, pursuant to
existing law. If the Secretary and the Governor do not enter
into an agreement, the Secretary may nevertheless proceed with
the leasing of the tract or tracts. Any revenue received by the
United States under such an agreement shall be subject to the
requirements of paragraph (2).
(4) The deposits in the Treasury account described in this
section shall be invested by the Secretary of the Treasury in
securities backed by the full faith and credit of the United
States having maturities suitable to the needs of the account
and yielding the highest reasonably available interest rates as
determined by the Secretary of the Treasury.
(5)(A) When there is a boundary dispute between the United
States and a State which is subject to an agreement under
section 7 of this Act, the Secretary shall credit to the
account established pursuant to such agreement all bonuses,
rents, and royalties, and other revenues (derived from any
bidding system authorized under subsection (a)(1)), excluding
Federal income and windfall profits taxes, and derived from any
lease issued after September 18, 1978 of any Federal tract
which lies wholly or partially within three nautical miles of
the seaward boundary asserted by the State, if that money has
not otherwise been deposited in such account. Proceeds of an
escrow account established pursuant to an agreement under
section 7 shall be distributed as follows:
(i) Twenty-seven percent of all bonuses, rents, and
royalties, and other revenues (derived from any bidding
system authorized under subsection (a)(1)), excluding
Federal income and windfall profits taxes, and derived
from any lease issued after September 18, 1978, of any
tract which lies wholly within three nautical miles of
the seaward boundary asserted by the Federal Government
in the boundary dispute, together with all accrued
interest thereon, shall be paid to the State either--
(I) within thirty days of December 1, 1987,
or
(II) by the last business day of the month
following the month in which those revenues are
deposited in the Treasury, whichever date is
later.
(ii) Upon the settlement of a boundary dispute which
is subject to a section 7 agreement between the United
States and a State, the Secretary shall pay to such
State any additional moneys due such State from amounts
deposited in or credited to the escrow account. If
there is insufficient money deposited in the escrow
account, the Secretary shall transmit, from any
revenues derived from any lease of Federal lands under
this Act, the remaining balance due such State in
accordance with the formula set forth in section
8004(b)(1)(B) of the Outer Continental Shelf Lands Act
Amendments of 1985.
(B) This paragraph applies to all Federal oil and gas lease
sales, under this Act, including joint lease sales, occurring
after September 18, 1978.
(6) This section shall be deemed to take effect on October 1,
1985, for purposes of determining the amounts to be deposited
in the separate account and the States' shares described in
paragraph (2).
(7) When the Secretary leases any tract which lies wholly or
partially within three miles of the seaward boundary of two or
more States, the revenues from such tract shall be distributed
as otherwise provided by this section, except that the State's
share of such revenues that would otherwise result under this
section shall be divided equally among such States.
(h) Nothing contained in this section shall be construed to
alter, limit, or modify any claim of any State to any
jurisdiction over, or any right, title or interest in, any
submerged lands.
(i) In order to meet the urgent need for further exploration
and development of the sulphur deposits in the submerged lands
of the outer Continental Shelf, the Secretary is authorized to
grant to the qualified persons offering the highest cash
bonuses on a basis of competitive bidding sulphur leases on
submerged lands of the outer Continental Shelf, which are not
covered by leases which include sulphur and meet the
requirements of subsection (a) of section 6 of this Act, and
which sulphur leases shall be offered for bid by sealed bids
and granted on separate leases from oil and gas leases, and for
a separate consideration, and without priority or preference
accorded to oil and gas lessees on the same area.
(j) A sulphur lease issued by the Secretary pursuant to this
section shall (1) cover an area of such size and dimensions as
the Secretary may determine, (2) be for a period of not more
than ten years and so long thereafter as sulphur may be
produced from the area in paying quantities or drilling, well
reworking, plant construction, or other operations for the
production of sulphur, as approved by the Secretary, are
conducted thereon, (3) require the payment to the United States
of such royalty as may be specified in the lease but not less
than 5 per centum of the gross production of value of the
sulphur at the wellhead, and (4) contained such rental
provisions and such other terms and provisions as the Secretary
may by regulation prescribe at the time of offering the area
for lease.
(k)(1) The Secretary is authorized to grant to the qualified
persons offering the highest cash bonuses on a basis of
competitive bidding leases of any mineral other than oil, gas,
and sulphur in any area of the outer Continental Shelf not then
under lease for such mineral upon such royalty, rental, and
other terms and conditions as the Secretary may prescribe at
the time of offering the area for lease.
(2)(A) Notwithstanding paragraph (1), the Secretary may
negotiate with any person an agreement for the use of Outer
Continental Shelf sand, gravel and shell resources--
(i) for use in a program of, or project for, shore
protection, beach restoration, or coastal wetlands
restoration undertaken by a Federal, State, or local
government agency; or
(ii) for use in a construction project, other than a
project described in clause (i), that is funded in
whole or in part by or authorized by the Federal
Government.
(B) In carrying out a negotiation under this paragraph, the
Secretary may assess a fee based on an assessment of the value
of the resources and the public interest served by promoting
development of the resources. No fee shall be assessed directly
or indirectly under this subparagraph against a Federal, State,
or local government agency.
(C) The Secretary may, through this paragraph and in
consultation with the Secretary of Commerce, seek to facilitate
projects in the coastal zone, as such term is defined in
section 304 of the Coastal Zone Management Act of 1972 (16
U.S.C. 1453), that promote the policy set forth in section 303
of that Act (16 U.S.C. 1452).
(D) Any Federal agency which proposes to make use of sand,
gravel and shell resources subject to the provisions of this
Act shall enter into a Memorandum of Agreement with the
Secretary concerning the potential use of those resources. The
Secretary shall notify the Committee on Merchant Marine and
Fisheries and the Committee on Natural Resources of the House
of Representatives and the Committee on Energy and Natural
Resources of the Senate on any proposed project for the use of
those resources prior to the use of those resources.
(3) Exploration licenses and leases on outer
continental shelf adjacent to territories and
possessions.--
(A) In general.--The Secretary is authorized
to grant to any qualified applicant an
exploration license which will provide the
exclusive right to explore for minerals, other
than oil, gas, and sulphur, in an area lying
within the United States exclusive economic
zone and the outer Continental Shelf adjacent
to any territory or possession of the United
States.
(B) Application.--Subsection (a) shall not
apply to any area conveyed by Congress to a
territorial government for administration.
(C) Exploration license duration.--
Exploration licenses granted under this
paragraph will be issued for a period pursuant
to regulations prescribed by the Secretary.
(D) Lease.--Upon showing to the satisfaction
of the Secretary that valuable mineral deposits
have been discovered by the licensee within the
area described by the exploration license of
the licensee, the licensee will be entitled to
a lease for any or all of that area at a
royalty rate established by regulation and
lease terms.
(E) Lease duration.--Leases under this
section will be issued for a period established
by regulation with a preferential right in the
lessee to renew.
(l) Notices of sale of leases, and the terms of bidding
authorized by this section shall be published at least thirty
days before the date of sale in accordance with rules and
regulations promulgated by the Secretary.
(m) All moneys paid to the Secretary for or under leases
granted pursuant to this section shall be deposited in the
Treasury in accordance with section 9 of this Act.
(n) The issuance of any lease by the Secretary pursuant to
this Act, or the making of any interim arrangements by the
Secretary pursuant to section 7 of this Act shall not prejudice
the ultimate settlement or adjudication of the question as to
whether or not the area involved is in the outer Continental
Shelf.
(o) The Secretary may cancel any lease obtained by fraud or
misrepresentation.
(p) Leases, Easements, or Rights-of-way for Energy and
Related Purposes.--
(1) In general.--The Secretary, in consultation with
the Secretary of the Department in which the Coast
Guard is operating and other relevant departments and
agencies of the Federal Government, may grant a lease,
easement, or right-of-way on the outer Continental
Shelf for activities not otherwise authorized in this
Act, the Deepwater Port Act of 1974 (33 U.S.C. 1501 et
seq.), the Ocean Thermal Energy Conversion Act of 1980
(42 U.S.C. 9101 et seq.), or other applicable law, if
those activities--
(A) support exploration, development,
production, or storage of oil or natural gas,
except that a lease, easement, or right-of-way
shall not be granted in an area in which oil
and gas preleasing, leasing, and related
activities are prohibited by a moratorium;
(B) support transportation of oil or natural
gas, excluding shipping activities;
(C) produce or support production,
transportation, or transmission of energy from
sources other than oil and gas; or
(D) use, for energy-related purposes or for
other authorized marine-related purposes,
facilities currently or previously used for
activities authorized under this Act, except
that any oil and gas energy-related uses shall
not be authorized in areas in which oil and gas
preleasing, leasing, and related activities are
prohibited by a moratorium.
(2) Payments and revenues.--(A) The Secretary shall
establish royalties, fees, rentals, bonuses, or other
payments to ensure a fair return to the United States
for any lease, easement, or right-of-way granted under
this subsection.
(B) The Secretary shall provide for the payment of 27
percent of the revenues received by the Federal
Government as a result of payments under this section
from projects that are located wholly or partially
within the area extending three nautical miles seaward
of State submerged lands. Payments shall be made based
on a formula established by the Secretary by rulemaking
no later than 180 days after the date of enactment of
this section that provides for equitable distribution,
based on proximity to the project, among coastal states
that have a coastline that is located within 15 miles
of the geographic center of the project.
(3) Competitive or noncompetitive basis.--Except with
respect to projects that meet the criteria established
under section 388(d) of the Energy Policy Act of 2005,
the Secretary shall issue a lease, easement, or right-
of-way under paragraph (1) on a competitive basis
unless the Secretary determines after public notice of
a proposed lease, easement, or right-of-way that there
is no competitive interest.
(4) Requirements.--The Secretary shall ensure that
any activity under this subsection is carried out in a
manner that provides for--
(A) safety;
(B) protection of the environment;
(C) prevention of waste;
(D) conservation of the natural resources of
the outer Continental Shelf;
(E) coordination with relevant Federal
agencies;
(F) protection of national security interests
of the United States;
(G) protection of correlative rights in the
outer Continental Shelf;
(H) a fair return to the United States for
any lease, easement, or right-of-way under this
subsection;
(I) prevention of interference with
reasonable uses (as determined by the
Secretary) of the exclusive economic zone, the
high seas, and the territorial seas;
(J) consideration of--
(i) the location of, and any schedule
relating to, a lease, easement, or
right-of-way for an area of the outer
Continental Shelf; and
(ii) any other use of the sea or
seabed, including use for a fishery, a
sealane, a potential site of a
deepwater port, or navigation;
(K) public notice and comment on any proposal
submitted for a lease, easement, or right-of-
way under this subsection; and
(L) oversight, inspection, research,
monitoring, and enforcement relating to a
lease, easement, or right-of-way under this
subsection.
(5) Lease duration, suspension, and cancellation.--
The Secretary shall provide for the duration, issuance,
transfer, renewal, suspension, and cancellation of a
lease, easement, or right-of-way under this subsection.
(6) Security.--The Secretary shall require the holder
of a lease, easement, or right-of-way granted under
this subsection to--
(A) furnish a surety bond or other form of
security, as prescribed by the Secretary;
(B) comply with such other requirements as
the Secretary considers necessary to protect
the interests of the public and the United
States; and
(C) provide for the restoration of the lease,
easement, or right-of-way.
(7) Coordination and consultation with affected state
and local governments.--The Secretary shall provide for
coordination and consultation with the Governor of any
State or the executive of any local government that may
be affected by a lease, easement, or right-of-way under
this subsection.
(8) Regulations.--Not later than 270 days after the
date of enactment of the Energy Policy Act of 2005, the
Secretary, in consultation with the Secretary of
Defense, the Secretary of the Department in which the
Coast Guard is operating, the Secretary of Commerce,
heads of other relevant departments and agencies of the
Federal Government, and the Governor of any affected
State, shall issue any necessary regulations to carry
out this subsection.
(9) Effect of subsection.--Nothing in this subsection
displaces, supersedes, limits, or modifies the
jurisdiction, responsibility, or authority of any
Federal or State agency under any other Federal law.
(10) Applicability.--This subsection does not apply
to any area on the outer Continental Shelf within the
exterior boundaries of any unit of the National Park
System, National Wildlife Refuge System, or National
Marine Sanctuary System, or any National Monument.
Sec. 9. Disposition of Revenues.--[All rentals] (a) In
General._Except as otherwise provided in this section, all
rentals , royalties, and other sums paid to the Secretary or
the Secretary of the Navy under any lease on the outer
Continental Shelf for the period from June 5, 1950, to date,
and thereafter shall be deposited in the Treasury of the United
States and credited to miscellaneous receipts.
(b) Distribution of Revenue to Producing States.--
(1) Definitions.--In this subsection:
(A) Covered planning area.--
(i) In general.--Subject to clause
(ii), the term ``covered planning
area'' means each of the following
planning areas, as such planning areas
are generally depicted in the later of
the 2017-2022 Outer Continental Shelf
Oil and Gas Leasing Proposed Final
Program, dated November 2016, or a
subsequent oil and gas leasing program
developed under section 18 of the Outer
Continental Shelf Lands Act (43 U.S.C.
1344):
(I) Mid-Atlantic.
(II) South Atlantic.
(III) Any planning area
located off the coast of
Alaska.
(ii) Exclusions.--The term ``covered
planning area'' does not include any
area in the Atlantic--
(I) north of the southernmost
lateral seaward administrative
boundary of the State of
Maryland; or
(II) south of the
northernmost lateral seaward
administrative boundary of the
State of Florida.
(B) Producing state.--The term ``producing
State'' means each of the following States:
(i) Virginia.
(ii) North Carolina.
(iii) South Carolina.
(iv) Georgia.
(v) Alaska.
(C) Qualified revenues.--
(i) In general.--The term ``qualified
revenues'' means revenues derived from
rentals, royalties, bonus bids, and
other sums due and payable to the
United States under oil and gas leases
entered into on or after the date of
the enactment of this Act for an area
in a covered planning area.
(ii) Exclusions.--The term
``qualified 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;
(II) revenues generated from
leases subject to section 8(g);
and
(III) the portion of rental
revenues in excess of those
that would have been collected
at the rental rates in effect
before August 5, 1993.
(2) Deposit of qualified revenues.--
(A) Phase i.--With respect to qualified
revenues under leases awarded under the first
leasing program approved under section 18(a)
that takes effect after the date of the
enactment of this section, the Secretary of the
Treasury shall deposit or allocate, as
applicable--
(i) 87.5 percent into the general
fund of the Treasury; and
(ii) 12.5 percent to States in
accordance with paragraph (3).
(B) Phase ii.--With respect to qualified
revenues under leases awarded under the second
leasing program approved under section 18(a)
that takes effect after the date of the
enactment of this section, the Secretary of the
Treasury shall deposit or allocate, as
applicable--
(i) 75 percent into the general fund
of the Treasury; and
(ii) 25 percent to States in
accordance with paragraph (3).
(C) Phase iii.--With respect to qualified
revenues under leases awarded under the third
leasing program approved under section 18(a)
that takes effect after the date of the
enactment of this section and under any such
leasing program subsequent to such third
leasing program, the Secretary of the Treasury
shall deposit or allocate, as applicable--
(i) 50 percent into the general fund
of the Treasury; and
(ii) 50 percent into a special
account in the Treasury from which the
Secretary of the Treasury shall
disburse--
(I) 75 percent to States in
accordance with paragraph (3);
(II) 12.5 percent to the
Secretary of Transportation for
energy infrastructure
development in coastal ports;
and
(III) 12.5 percent to the
Secretary of the Interior for
units of the National Park
System.
(3) Allocation to producing states.--
(A) In general.--Subject to subparagraph (B),
the Secretary of the Treasury shall allocate
the qualified revenues distributed to States
under paragraph (2) to each producing State in
an amount based on a formula established by the
Secretary of the Interior, by regulation,
that--
(i) is inversely proportional to the
respective distances between--
(I) the point on the
coastline of the producing
State that is closest to the
geographical center of the
applicable leased tract; and
(II) the geographical center
of that leased tract;
(ii) does not allocate qualified
revenues to any producing State that is
further than 200 nautical miles from
the leased tract; and
(iii) allocates not less than 10
percent of qualified revenues to each
producing State that is 200 or fewer
nautical miles from the leased tract.
(B) Payments to coastal political
subdivisions.--
(i) In general.--The Secretary of the
Treasury shall pay 20 percent of the
allocable share of each producing State
determined under this paragraph to the
coastal political subdivisions of the
producing State.
(ii) Allocation.--The amount paid by
the Secretary of the Treasury to
coastal political subdivisions shall be
allocated to each coastal political
subdivision in accordance with
subparagraphs (B) and (E) of section
31(b)(4).
(iii) Definition of coastal political
subdivision.--In this subparagraph, the
term ``coastal political subdivision''
means--
(I) with respect to a
contiguous coastal State, a
political subdivision of such
State, any part of which is--
(aa) within the
coastal zone of the
State (as defined in
section 304 of the
Coastal Zone Management
2 Act of 1972 (16
U.S.C. 1453)); and
(bb) not more than
200 nautical miles from
the geographic center
of any leased tract;
and
(II) with respect to a
noncontiguous coastal State--
(aa) a county-
equivalent subdivision
of the State for
which--
(AA) all or
part lies
within the
coastal zone of
the State (as
defined in
section 304 of
the Coastal
Zone Management
Act of 1972 (16
U.S.C. 1453));
and
(BB) the
closest coastal
point is not
more than 200
nautical miles
from the
geographical
center of any
leased tract on
the outer
Continental
Shelf; or
(bb) a municipal
subdivision of the
State for which--
(AA) the
closest point
is more than
200 nautical
miles from the
geographical
center of a
leased tract on
the outer
Continental
Shelf; and
(BB) the
State has
determined to
be a
significant
staging area
for oil and gas
servicing,
supply vessels,
operations,
suppliers, or
workers.
(4) Administration.--Amounts made available under
paragraph (2)(B) shall--
(A) be made available, without further
appropriation, in accordance with this
subsection;
(B) remain available until expended;
(C) be in addition to any amounts
appropriated under--
(i) chapter 2003 of title 54, United
States Code;
(ii) any other provision of this Act;
and
(iii) any other provision of law; and
(D) be made available during the fiscal year
immediately following the fiscal year in which
such amounts were received.
* * * * * * *
Sec. 12. Reservations.--[(a) The President of the United
States may, from time to time, withdraw from disposition any of
the unleased lands of the outer Continental Shelf.]
(a) Limitation on Withdrawal.--
(1) In general.--Except as otherwise provided in this
section, no lands of the outer Continental Shelf may be
withdrawn from disposition except by an Act of
Congress.
(2) National marine sanctuaries.--The President may
withdraw from disposition any of the unleased lands of
the outer Continental Shelf located in a national
marine sanctuary designated in accordance with the
National Marine Sanctuaries Act (16 U.S.C. 1431 et
seq.) or otherwise by statute.
(3) Existing withdrawals.--
(A) In general.--Except for the withdrawals
listed in subparagraph (B), any withdrawal from
disposition of lands on the outer Continental
Shelf before the date of the enactment of this
subsection shall have no force or effect.
(B) Exceptions.--Subparagraph (A) shall not
apply to the following withdrawals:
(i) Any withdrawal in a national
marine sanctuary designated in
accordance with the National Marine
Sanctuaries Act.
(ii) Any withdrawal in a national
monument declared under section 320301
of title 54, United States Code, or the
Act of June 8, 1906 (ch. 3060; 34 Stat.
225).
(iii) Any withdrawal in the North
Aleutian Basin Planning Area, including
Bristol Bay.
(b) In time of war, or when the President shall so prescribe,
the United States shall have the right of first refusal to
purchase at the market price all or any portion of any mineral
produced from the outer Continental Shelf.
(c) All leases issued under this Act, and leases, the
maintenance and operation of which are authorized under this
Act, shall contain or be construed to contain a provision
whereby authority is vested in the Secretary, upon a
recommendation of the Secretary of Defense, during a state of
war or national emergency declared by the Congress or the
President of the United States after the effective date of this
Act, to suspend operations under any lease; and all such leases
shall contain or be construed to contain provisions for the
payment of just compensation to the lessee whose operations are
thus suspended.
(d) The United States reserves and retains the right to
designate by and through the Secretary of Defense, with the
approval of the President, as areas restricted from exploration
and operation that part of the outer Continental Shelf needed
for national defense; and so long as such designation remains
in effect no exploration or operations may be conducted on any
part of the surface of such area except with the concurrence of
the Secretary of Defense; and if operations or production under
any lease theretofore issued on lands within any such
restricted area shall be suspended, any payment of rentals,
minimum royalty, and royalty prescribed by such lease likewise
shall be suspended during such period of suspension of
operation and production, and the term of such lease shall be
extended by adding thereto any such suspension period, and the
United States shall be liable to the lessee for such
compensation as is required to be paid under the Constitution
of the United States.
(e) All uranium, thorium, and all other materials determined
pursuant to paragraph (1) of subsection (b) of section 5 of the
Atomic Energy Act of 1946, as amended, to be peculiarly
essential to the production of fissionable material, contained,
in whatever concentration, in deposits in the subsoil or seabed
of the outer Continental Shelf are hereby reserved for the use
of the United States.
(f) The United States reserves and retains the ownership of
and the right to extract all helium, under such rules and
regulations as shall be prescribed by the Secretary, contained
in gas produced from any portion of the outer Continental Shelf
which may be subject to any lease maintained or granted
pursuant to this Act, but the helium shall be extracted from
such gas so as to cause no substantial delay in the delivery of
gas produced to the purchaser of such gas.
* * * * * * *
Sec. 18. Outer Continental Shelf Leasing Program.--(a) The
Secretary, pursuant to procedures set forth in subsections (c)
and (d) of this section, shall prepare and periodically revise,
and maintain an oil and gas leasing program to implement the
policies of this Act. The leasing program shall consist of a
schedule of proposed lease sales indicating, as precisely as
possible, the size, timing, and location of leasing activity
which he determines will best meet national energy needs for
the five-year period following its approval or reapproval. Such
leasing program shall be prepared and maintained in a manner
consistent with the following principles:
(1) Management of the outer Continental Shelf shall
be conducted in a manner which considers economic,
social, and environmental values of the renewable and
nonrenewable resources contained in the outer
Continental Shelf, and the potential impact of oil and
gas exploration on other resource values of the outer
Continental Shelf and the marine, coastal, and human
environments.
(2) Timing and location of exploration, development,
and production of oil and gas among the oil- and gas-
bearing physiographic regions of the outer Continental
Shelf shall be based on a consideration of--
(A) existing information concerning the
geographical, geological, and ecological
characteristics of such regions;
(B) an equitable sharing of developmental
benefits and environmental risks among the
various regions;
(C) the location of such regions with respect
to, and the relative needs of, regional and
national energy markets;
(D) the location of such regions with respect
to other uses of the sea and seabed, including
fisheries, navigation, existing or proposed
sealanes, potential sites of deepwater ports,
and other anticipated uses of the resources and
space of the outer Continental Shelf;
(E) the interest of potential oil and gas
producers in the development of oil and gas
resources as indicated by exploration or
nomination;
(F) laws, goals, and policies of affected
States which have been specifically identified
by the Governors of such States as relevant
matters for the Secretary's consideration;
(G) the relative environmental sensitivity
and marine productivity of different areas of
the outer Continental Shelf; and
(H) relevant environmental and predictive
information for different areas of the outer
Continental Shelf.
(3) The Secretary shall select the timing and
location of leasing, to the maximum extent practicable,
so as to obtain a proper balance between the potential
for environmental damage, the potential for the
discovery of oil and gas, and the potential for adverse
impact on the coastal zone.
(4) Leasing activities shall be conducted to assure
receipt of fair market value for the lands leased and
the rights conveyed by the Federal Government.
(b) The leasing program shall include estimates of the
appropriations and staff required to--
(1) obtain resource information and any other
information needed to prepare the leasing program
required by this section;
(2) analyze and interpret the exploratory data and
any other information which may be compiled under the
authority of this Act;
(3) conduct environmental studies and prepare any
environmental impact statement required in accordance
with this Act and with section 102(2)(C) of the
National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C)); and
(4) supervise operations conducted pursuant to each
lease in the manner necessary to assure due diligence
in the exploration and development of the lease area
and compliance with the requirement of applicable laws
and regulations, and with the terms of the lease.
(c)(1) During the preparation of any proposed leasing program
under this section, the Secretary shall invite and consider
suggestions for such program from any interested Federal
agency, including the Attorney General, in consultation with
the Federal Trade Commission, and from the Governor of any
State which may become an affected State under such proposed
program. The Secretary may also invite or consider any
suggestions from the executive of any affected local government
in such an affected State, which have been previously submitted
to the Governor of such State, and from any other person.
(2) After such preparation and at least sixty days prior to
publication of a proposed leasing program in the Federal
Register pursuant to paragraph (3) of this subsection, the
Secretary shall submit a copy of such proposed program to the
Governor of each affected State for review and comment. The
Governor may solicit comments from those executives of local
governments in his State which he, in his discretion,
determines will be affected by the proposed program. If any
comment by such Governor is received by the Secretary at least
fifteen days prior to submission to the Congress pursuant to
such paragraph (3) and includes a request for any modification
of such proposed program, the Secretary shall reply in writing,
granting or denying such request in whole or in part, or
granting such request in such modified form as the Secretary
considers appropriate, and stating his reasons therefor. All
such correspondence between the Secretary and Governor of any
affected State, together with any additional information and
data relating thereto, shall accompany such proposed program
when it is submitted to the Congress.
(3) Within nine months after the date of enactment of this
section, the Secretary shall submit a proposed leasing program
to the Congress, the Attorney General, and the Governors of
affected States, and shall publish such proposed program in the
Federal Register. Each Governor shall, upon request, submit a
copy of the proposed leasing program to the executive of any
local government affected by the proposed program.
(d)(1) Within ninety days after the date of publication of a
proposed leasing program, the Attorney General may, after
consultation with the Federal Trade Commission, submit comments
on the anticipated effects of such proposed program upon
competition. Any State, local government, or other person may
submit comments and recommendations as to any aspect of such
proposed program.
(2) At least sixty days prior to approving a proposed leasing
program, the Secretary shall submit it to the President and the
Congress, together with any comments received. Such submission
shall indicate why any specific recommendation of the Attorney
General or a State or local government was not accepted.
(3) After the leasing program has been approved by the
Secretary, or after eighteen months following the date of
enactment of this section, whichever first occurs, no lease
shall be issued unless it is for an area included in the
approved leasing program and unless it contains provisions
consistent with the approved leasing program, except that
leasing shall be permitted to continue until such program is
approved and for so long thereafter as such program is under
judicial or administrative review pursuant to the provisions of
this Act.
(e) The Secretary shall review the leasing program approved
under this section at least once each year. He may revise and
reapprove such program, at any time, and such revision and
reapproval, except in the case of a revision which is not
significant, shall be in the same manner as originally
developed. The Secretary shall include in any such revised
leasing program each unexecuted lease sale that was included in
the most recent leasing program and the Secretary shall execute
each such lease sale as close as practicable to the time
specified in the most recent leasing program. Section 102(2)(C)
of the National Environmental Policy Act of 1969 (42 U.S.C.
4332) shall be deemed to have been satisfied with respect to
the execution of such unexecuted lease sales if the Secretary,
in the Secretary's sole discretion, determines that such
section was satisfied with respect to such unexecuted lease
sales for the most recent leasing program.
(f) The Secretary shall, by regulation, establish procedures
for--
(1) receipt and consideration of nominations for any
area to be offered for lease or to be excluded from
leasing;
(2) public notice of and participation in development
of the leasing program;
(3) review by State and local governments which may
be impacted by the proposed leasing;
(4) periodic consultation with State and local
governments, oil and gas lessees and permittees, and
representatives of other individuals or organizations
engaged in activity in or on the outer Continental
Shelf, including those involved in fish and shellfish
recovery, and recreational activities; and
(5) consideration of the coastal zone management
program being developed or administered by an affected
coastal State pursuant to section 305 or section 306 of
the Coastal Zone Management Act of 1972 (16 U.S.C.
1454, 1455).
Such procedures shall be applicable to any significant revision
or reapproval of the leasing program.
(g) The Secretary may obtain from public sources, or purchase
from private sources, any survey, data, report, or other
information (including interpretations of such data, survey,
report, or other information) which may be necessary to assist
him in preparing any environmental impact statement and in
making other evaluations required by this Act. Data of a
classified nature provided to the Secretary under the
provisions of this subsection shall remain confidential for
such period of time as agreed to by the head of the department
or agency from whom the information is requested. The Secretary
shall maintain the confidentiality of all privileged or
proprietary data or information for such period of time as is
provided for in this Act, established by regulation, or agreed
to by the parties.
(h) The heads of all Federal departments and agencies shall
provide the Secretary with any nonprivileged or nonproprietary
information he requests to assist him in preparing the leasing
program and may provide the Secretary with any privileged or
proprietary information he requests to assist him in preparing
the leasing program. Privileged or proprietary information
provided to the Secretary under the provisions of this
subsection shall remain confidential for such period of time as
agreed to by the head of the department or agency from whom the
information is requested. In addition, the Secretary shall
utilize the existing capabilities and resources of such Federal
departments and agencies by appropriate agreement.
(i) This section shall not apply to the scheduling of lease
sales in the outer Continental Shelf adjacent to the
territories and possessions of the United States.
* * * * * * *
Sec. 22. Enforcement.--(a) The Secretary, the Secretary of
the Department in which the Coast Guard is operating, and the
Secretary of the Army shall enforce safety and environmental
regulations promulgated pursuant to this Act. Each such Federal
department may by agreement utilize, with or without
reimbursement, the services, personnel, or facilities of other
Federal departments and agencies for the enforcement of their
respective regulations.
(b) It shall be the duty of any holder of a lease or permit
under this Act to--
(1) maintain all places of employment within the
lease area or within the area covered by such permit in
compliance with occupational safety and health
standards and, in addition, free from recognized
hazards to employees of the lease holder or permit
holder or of any contractor or subcontractor operating
within such lease area or within the area covered by
such permit on the outer Continental Shelf;
(2) maintain all operations within such lease area or
within the area covered by such permit in compliance
with regulations intended to protect persons, property,
and the environment on the outer Continental Shelf; and
(3) allow prompt access, at the site of any operation
subject to safety regulations, to any inspector, and to
provide such documents and records which are pertinent
to occupational or public health, safety, or
environmental protection, as may be requested.
(c) The Secretary and the Secretary of the Department in
which the Coast Guard is operating shall individually, or
jointly if they so agree, promulgate regulations to provide
for--
(1) scheduled onsite inspection, at least once a
year, of each facility on the outer Continental Shelf
which is subject to any environmental or safety
regulation promulgated pursuant to this Act, which
inspection shall include all safety equipment designed
to prevent or ameliorate blowouts, fires, spillages, or
other major accidents; and
(2) periodic onsite inspection without advance notice
to the operator of such facility to assure compliance
with such environmental or safety regulations.
(d)(1) The Secretary or the Secretary of the Department in
which the Coast Guard is operating shall make an investigation
and public report on each major fire and each major oil
spillage occurring as a result of operations conducted pursuant
to this Act, and may, in his discretion, make an investigation
and report of lesser oil spillages. For purposes of this
subsection, a major oil spillage is any spillage in one
instance of more than two hundred barrels of oil during a
period of thirty days. All holders of leases or permits issued
or maintained under this Act shall cooperate with the
appropriate Secretary in the course of any such investigation.
(2) The Secretary or the Secretary of the Department in which
the Coast Guard is operating shall make an investigation and
public report on any death or serious injury occurring as a
result of operations conducted pursuant to this Act, and may,
in his discretion, make an investigation and report of any
injury. For purposes of this subsection, a serious injury is
one resulting in substantial impairment of any bodily unit or
function. All holders of leases or permits issued or maintained
under this Act shall cooperate with the appropriate Secretary
in the course of any such investigation.
(e) The Secretary, or, in the case of occupational safety and
health, the Secretary of the Department in which the Coast
Guard is operating, may review any allegation from any person
of the existence of a violation of a safety regulation issued
under this Act.
(f) In any investigation conducted pursuant to this section,
the Secretary or the Secretary of the Department in which the
Coast Guard is operating shall have power to summon witnesses
and to require the production of books, papers, documents, and
any other evidence. Attendance of witnesses or the production
of books, papers, documents, or any other evidence shall be
compelled by a similar process, as in the district courts of
the United States. Such Secretary, or his designee, shall
administer all necessary oaths to any witnesses summoned before
such investigation.
(g) Inspection Fees.--
(1) Establishment.--The Secretary of the Interior
shall collect from the operators of facilities subject
to inspection under subsection (c) non-refundable fees
for such inspections--
(A) at an aggregate level equal to the amount
necessary to offset the annual expenses of
inspections of outer Continental Shelf
facilities (including mobile offshore drilling
units) by the Secretary of the Interior; and
(B) using a schedule that reflects the
differences in complexity among the classes of
facilities to be inspected.
(2) Ocean energy safety fund.--There is established
in the Treasury a fund, to be known as the ``Ocean
Energy Safety Fund'' (referred to in this subsection as
the ``Fund''), into which shall be deposited all
amounts collected as fees under paragraph (1) and which
shall be available as provided under paragraph (3).
(3) Availability of fees.--
(A) In general.--Notwithstanding section 3302
of title 31, United States Code, all amounts
deposited in the Fund--
(i) shall be credited as offsetting
collections;
(ii) shall be available for
expenditure for purposes of carrying
out inspections of outer Continental
Shelf facilities (including mobile
offshore drilling units) and the
administration of the inspection
program under this section;
(iii) shall be available only to the
extent provided for in advance in an
appropriations Act; and
(iv) shall remain available until
expended.
(B) Use for field offices.--Not less than 75
percent of amounts in the Fund may be
appropriated for use only for the respective
Department of the Interior field offices where
the amounts were originally assessed as fees.
(4) Initial fees.--Fees shall be established under
this subsection for the fiscal year in which this
subsection takes effect and the subsequent 10 years,
and shall not be raised, except as determined by the
Secretary to be appropriate as an adjustment equal to
the percentage by which the Consumer Price Index for
the month of June of the calendar year preceding the
adjustment exceeds the Consumer Price Index for the
month of June of the calendar year in which the fee was
determined or last adjusted.
(5) Annual fees.--Annual fees shall be collected
under this subsection for facilities that are above the
waterline, excluding drilling rigs, and are in place at
the start of the fiscal year. Fees for fiscal year 2019
shall be--
(A) $10,500 for facilities with no wells, but
with processing equipment or gathering lines;
(B) $17,000 for facilities with 1 to 10
wells, with any combination of active or
inactive wells; and
(C) $31,500 for facilities with more than 10
wells, with any combination of active or
inactive wells.
(6) Fees for drilling rigs.--Fees shall be collected
under this subsection for drilling rigs on a per
inspection basis. Fees for fiscal year 2019 shall be--
(A) $30,500 per inspection for rigs operating
in water depths of 1,000 feet or more; and
(B) $16,700 per inspection for rigs operating
in water depths of less than 1,000 feet.
(7) Billing.--The Secretary shall bill designated
operators under paragraph (5) annually, with payment
required within 30 days of billing. The Secretary shall
bill designated operators under paragraph (6) within 30
days of the end of the month in which the inspection
occurred, with payment required within 30 days after
billing.
(8) Annual reports.--
(A) In general.--Not later than 60 days after
the end of each fiscal year beginning with
fiscal year 2019 and ending with fiscal year
2029, the Secretary shall submit to the
Committee on Energy and Natural Resources of
the Senate and the Committee on Natural
Resources of the House of Representatives a
report on the operation of the Fund during the
fiscal year.
(B) Contents.--Each report shall include, for
the fiscal year covered by the report, the
following:
(i) A statement of the amounts
deposited into the Fund.
(ii) A description of the
expenditures made from the Fund for the
fiscal year, including the purpose of
the expenditures and the additional
hiring of personnel.
(iii) A statement of the balance
remaining in the Fund at the end of the
fiscal year.
(iv) An accounting of pace of permit
approvals.
(v) If fee increases are proposed, a
proper accounting of the potential
adverse economic impacts such fee
increases will have on offshore
economic activity and overall
production.
(vi) Recommendations to increase the
efficacy and efficiency of offshore
inspections.
(vii) Any corrective actions levied
upon offshore inspectors as a result of
any form of misconduct.
* * * * * * *
SEC. 33. WIND LEASE SALES FOR THE OUTER CONTINENTAL SHELF.
(a) Authorization.--The Secretary may conduct wind lease
sales for the outer Continental Shelf.
(b) Wind Lease Sale Procedure.--Any wind lease sale conducted
under this section shall be considered a lease under section
8(p).
(c) Wind Lease Sale Off Coast of California.--The Secretary,
in consultation with the Secretary of Defense, shall offer a
wind lease sale for the outer Continental Shelf off the coast
of California as soon as practicable, but not later than one
year after the date of enactment of this section.
(d) Wind Lease Sales Off Coast of Puerto Rico, Virgin Islands
of the United States, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.--
(1) Study on feasibility of conducting wind lease
sales off coast of Puerto Rico, Virgin Islands of the
United States, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.--
(A) Study.--The Secretary shall conduct a
study on the feasibility, including the long
term economic feasibility, of conducting wind
lease sales for the outer Continental Shelf off
the coast of Puerto Rico, the Virgin Islands of
the United States, Guam, American Samoa, and
the Commonwealth of the Northern Mariana
Islands.
(B) Submission of results.--Not later than
180 days after the date of the enactment of
this section, the Secretary shall submit to
Congress the results of the study conducted
under subparagraph (A).
(2) Wind lease sales conditional upon results of
study.--
(A) Wind lease sale off coast of puerto
rico.--If the study required under paragraph
(1)(A) concludes that a wind lease sale for the
outer Continental Shelf off the coast of Puerto
Rico is feasible, then the Secretary shall
offer a wind lease sale for the outer
Continental Shelf off the coast of Puerto Rico
as soon as practicable, but not later than one
year after the date of the enactment of this
section.
(B) Wind lease sale off coast of virgin
islands of the united states.--If the study
required under paragraph (1)(A) concludes that
a wind lease sale for the outer Continental
Shelf off the coast of the Virgin Islands of
the United States is feasible, then the
Secretary shall offer a wind lease sale for the
outer Continental Shelf off the coast of the
Virgin Islands of the United States as soon as
practicable, but not later than one year after
the date of the enactment of this section.
(C) Wind lease sale off coast of guam.--If
the study required under paragraph (1)(A)
concludes that a wind lease sale for the outer
Continental Shelf off the coast of Guam is
feasible, then the Secretary shall offer a wind
lease sale for the outer Continental Shelf off
the coast of Guam as soon as practicable, but
not later than one year after the date of the
enactment of this section.
(D) Wind lease sale off coast of american
samoa.--If the study required under paragraph
(1)(A) concludes that a wind lease sale for the
outer Continental Shelf off the coast of
American Samoa is feasible, then the Secretary
shall offer a wind lease sale for the outer
Continental Shelf off the coast of American
Samoa as soon as practicable, but not later
than one year after the date of the enactment
of this section.
(E) Wind lease sale off coast of the
commonwealth of the northern mariana islands.--
If the study required under paragraph (1)(A)
concludes that a wind lease sale for the outer
Continental Shelf off the coast of the
Commonwealth of the Northern Mariana Islands is
feasible, then the Secretary shall offer a wind
lease sale for the outer Continental Shelf off
the coast of the Commonwealth of the Northern
Mariana Islands as soon as practicable, but not
later than one year after the date of the
enactment of this section.
(e) Wind Lease Sale Off Coast of Hawaii.--
(1) Study on feasibility of conducting wind lease
sales off coast of the state of hawaii.--
(A) Study.--The Secretary, in consultation
with the Secretary of Defense, shall conduct a
study on the feasibility of conducting wind
lease sales for the outer Continental Shelf off
the coast of the State of Hawaii.
(B) Submission of results.--Not later than
180 days after the date of the enactment of
this section, the Secretary shall submit to
Congress the results of the study conducted
under subparagraph (A).
(2) Wind lease sales conditional upon results of
study.--If the study required under paragraph (1)(A)
concludes that a wind lease sale for the outer
Continental Shelf off the coast of the State of Hawaii
is feasible, then the Secretary shall offer a wind
lease sale for the outer Continental Shelf off the
coast of the State of Hawaii as soon as practicable,
but not later than one year after the date of the
enactment of this section.
----------
GULF OF MEXICO ENERGY SECURITY ACT OF 2006
* * * * * * *
DIVISION C--OTHER PROVISIONS
TITLE I--GULF OF MEXICO ENERGY SECURITY
* * * * * * *
SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES
FROM 181 AREA, 181 SOUTH AREA, AND 2002-2007
PLANNING AREAS OF GULF OF MEXICO.
(a) In General.--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
200305 of title 54, United States Code, which
shall be considered income to the Land and
Water Conservation Fund for purposes of section
200302 of that title.
(b) Allocation Among Gulf Producing States and Coastal
Political Subdivisions.--
(1) Allocation among gulf producing states for fiscal
years 2007 through 2016.--
(A) In general.--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) Minimum allocation.--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) In general.--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) Minimum allocation.--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) Historical lease sites.--
(i) In general.--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) Adjustment.--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) In general.--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) Allocation.--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) Timing.--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) Authorized Uses.--
(1) In general.--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) Limitation.--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) Administration.--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) chapter 2003 of title 54, UnitedStates
Code; or
(C) any other provision of law.
(f) Limitations on Amount of Distributed Qualified Outer
Continental Shelf Revenues.--
[(1) In general.--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.]
(1) In general.--The total amount of qualified outer
Continental Shelf revenues described in section
102(9)(A)(ii) that are made available under subsection
(a)(2) shall remain available until expended and shall
not exceed--
(A) for each of fiscal years 2019 through
2028, $500,000,000; and
(B) for each of fiscal years 2029 through
2059, $649,800,000.
(2) Expenditures.--For the purpose of paragraph (1),
for each of fiscal years 2016 through 2055,
expenditures under subsection (a)(2) 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) Pro rata reductions.--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.
----------
TITLE 54, UNITED STATES CODE
* * * * * * *
SUBTITLE III--NATIONAL PRESERVATION PROGRAMS
* * * * * * *
CHAPTER 3203--MONUMENTS, RUINS, SITES, AND OBJECTS OF ANTIQUITY
* * * * * * *
Sec. 320301. National monuments
(a) Presidential Declaration.--The President may, in the
President's discretion, declare by public proclamation historic
landmarks, historic and prehistoric structures, and other
objects of historic or scientific interest that are situated on
land owned or controlled by the Federal Government to be
national monuments.
(b) Reservation of Land.--The President may reserve parcels
of land as a part of the national monuments. The limits of the
parcels shall be confined to the smallest area compatible with
the proper care and management of the objects to be protected.
(c) Relinquishment to Federal Government.--When an object is
situated on a parcel covered by a bona fide unperfected claim
or held in private ownership, the parcel, or so much of the
parcel as may be necessary for the proper care and management
of the object, may be relinquished to the Federal Government
and the Secretary may accept the relinquishment of the parcel
on behalf of the Federal Government.
(d) Limitation on Extension or Establishment of National
Monuments in Wyoming.--No extension or establishment of
national monuments in Wyoming may be undertaken except by
express authorization of Congress.
(e) Limitation on Marine National Monuments.--
(1) In general.--Notwithstanding subsections (a) and
(b), the President may not declare or reserve any ocean
waters (as such term is defined in section 3 of the
Marine Protection, Research, and Sanctuaries Act of
1972 (33 U.S.C. 1402)) or lands beneath ocean waters as
a national monument.
(2) Marine national monuments designated before the
date of the enactment of this subsection.--This
subsection shall not affect any national monument
designated by the President before the date of the
enactment of this Act.
* * * * * * *
----------
MARINE MAMMAL PROTECTION ACT OF 1972
* * * * * * *
Definitions
Sec. 3. For the purposes of this Act--
(1) The term ``depletion'' or ``depleted'' means any
case in which--
(A) the Secretary, after consultation with
the Marine Mammal Commission and the Committee
of Scientific Advisors on Marine Mammals
established under title II of this Act,
determines that a species or population stock
is below its optimum sustainable population;
(B) a State, to which authority for the
conservation and management of a species or
population stock is transferred under section
109, determines that such species or stock is
below its optimum sustainable population; or
(C) a species or population stock is listed
as an endangered species or a threatened
species under the Endangered Species Act of
1973.
(2) The terms ``conservation'' and ``management''
mean the collection and application of biological
information for the purposes of increasing and
maintaining the number of animals within species and
populations of marine mammals at their optimum
sustainable population. Such terms include the entire
scope of activities that constitute a modern scientific
resource program, including, but not limited to,
research, census, law enforcement, and habitat
acquisition and improvement. Also included within these
terms, when and where appropriate, is the periodic or
total protection of species or populations as well as
regulated taking.
(3) The term ``district court of the United States''
includes the District Court of Guam, District Court of
the Virgin Islands, District Court of Puerto Rico,
District Court of the Canal Zone, and, in the case of
American Samoa and the Trust Territory of the Pacific
Islands, the District Court of the United States for
the District of Hawaii.
(4) The term ``humane'' in the context of the taking
of a marine mammal means that method of taking which
involves the least possible degree of pain and
suffering practicable to the mammal involved.
(5) The term ``intermediary nation'' means a nation
that exports yellowfin tuna or yellowfin tuna products
to the United States and that imports yellowfin tuna or
yellowfin tuna products that are subject to a direct
ban on importation into the United States pursuant to
section 101(a)(2)(B).
(6) The term ``marine mammal'' means any mammal which
(A) is morphologically adapted to the marine
environment (including sea otters and members of the
orders Sirenia, Pinnipedia and Cetacea), or (B)
primarily inhabits the marine environment (such as the
polar bear); and, for the purposes of this Act,
includes any part of any such marine mammal, including
its raw, dressed, or dyed fur or skin.
(7) The term ``marine mammal product'' means any item
of merchandise which consists, or is composed in whole
or in part, of any marine mammal.
(8) The term ``moratorium'' means a complete
cessation of the taking of marine mammals and a
complete ban on the importation into the United States
of marine mammals and marine mammal products, except as
provided in this Act.
(9) The term ``optimum sustainable population''
means, with respect to any population stock, the number
of animals which will result in the maximum
productivity of the population or the species, keeping
in mind the carrying capacity of the habitat and the
health of the ecosystem of which they form a
constituent element.
(10) The term ``person'' includes (A) any private
person or entity, and (B) any officer, employee, agent,
department, or instrumentality of the Federal
Government, of any State or political subdivision
thereof, or of any foreign government.
(11) The term ``population stock'' or ``stock'' means
a group of marine mammals of the same species or
smaller taxa in a common spatial arrangement, that
interbreed when mature.
(12)(A) Except as provided in [subparagraph (B)]
subparagraphs (B) and (C), the term ``Secretary''
means--
(i) The Secretary of the department in which
the National Oceanic and Atmospheric
Administration is operating, as to all
responsibility, authority, funding, and duties
under this Act with respect to members of the
order Cetacea and members, other than walruses,
of the order Pinnipedia, and
(ii) The Secretary of the Interior as to all
responsibility, authority, funding, and duties
under this Act with respect to all other marine
mammals covered by this Act.
(B) in section 118 and title IV (other than section
408) the term ``Secretary'' means the Secretary of
Commerce.
(C) In sections 101(a)(3), 101(a)(5), 103, and 104
(16 U.S.C. 1371(a)(3), 1371(a)(5), 1373, and 1374), for
activities associated with operations authorized under
the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.), the term ``Secretary'' means the Secretary of
the Interior with respect to all marine mammals.
(13) The term ``take'' means to harass, hunt,
capture, or kill, or attempt to harass, hunt, capture,
or kill any marine mammal.
(14) The term ``United States'' includes the several
States, the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands of the United States,
American Samoa, Guam, and Northern Mariana Islands.
(15) The term ``waters under the jurisdiction of the
United States'' means--
(A) the territorial sea of the United States;
(B) the waters included within a zone,
contiguous to the territorial sea of the United
States, of which the inner boundary is a line
coterminous with the seaward boundary of each
coastal State, and the other boundary is a line
drawn in such a manner that each point on it is
200 nautical miles from the baseline from which
the territorial sea is measured; and
(C) the areas referred to as eastern special
areas in Article 3(1) of the Agreement between
the United States of America and the Union of
Soviet Socialist Republics on the Maritime
Boundary, signed June 1, 1990; in particular,
those areas east of the maritime boundary, as
defined in that Agreement, that lie within 200
nautical miles of the baselines from which the
breadth of the territorial sea of Russia is
measured but beyond 200 nautical miles of the
baselines from which the breadth of the
territorial sea of the United States is
measured, except that this subparagraph shall
not apply before the date on which the
Agreement between the United States and the
Union of Soviet Socialist Republics on the
Maritime Boundary, signed June 1, 1990, enters
into force for the United States.
(16) The term ``fishery'' means--
(A) one or more stocks of fish which can be
treated as a unit for purposes of conservation
and management and which are identified on the
basis of geographical, scientific, technical,
recreational, and economic characteristics; and
(B) any fishing for such stocks.
(17) The term ``competent regional organization''--
(A) for the tuna fishery in the eastern
tropical Pacific Ocean, means the Inter-
American Tropical Tuna Commission; and
(B) in any other case, means an organization
consisting of those nations participating in a
tuna fishery, the purpose of which is the
conservation and management of that fishery and
the management of issues relating to that
fishery.
(18)(A) The term ``harassment'' means any act of
pursuit, torment, or annoyance which--
(i) has the potential to injure a marine
mammal or marine mammal stock in the wild; or
(ii) has the potential to disturb a marine
mammal or marine mammal stock in the wild by
causing disruption of behavioral patterns,
including, but not limited to, migration,
breathing, nursing, breeding, feeding, or
sheltering.
(B) In the case of a military readiness activity (as
defined in section 315(f) of Public Law 107-314; 16
U.S.C. 703 note) or a scientific research activity
conducted by or on behalf of the Federal Government
consistent with section 104(c)(3), the term
``harassment'' means--
(i) any act that injures or has the
significant potential to injure a marine mammal
or marine mammal stock in the wild; or
(ii) any act that disturbs or is likely to
disturb a marine mammal or marine mammal stock
in the wild by causing disruption of natural
behavioral patterns, including, but not limited
to, migration, surfacing, nursing, breeding,
feeding, or sheltering, to a point where such
behavioral patterns are abandoned or
significantly altered.
(C) The term ``Level A harassment'' means harassment
described in subparagraph (A)(i) or, in the case of a
military readiness activity or scientific research
activity described in subparagraph (B), harassment
described in subparagraph (B)(i).
(D) The term ``Level B harassment'' means harassment
described in subparagraph (A)(ii) or, in the case of a
military readiness activity or scientific research
activity described in subparagraph (B), harassment
described in subparagraph (B)(ii).
(19) The term ``strategic stock'' means a marine
mammal stock--
(A) for which the level of direct human-
caused mortality exceeds the potential
biological removal level;
(B) which, based on the best available
scientific information, is declining and is
likely to be listed as a threatened species
under the Endangered Species Act of 1973 within
the foreseeable future; or
(C) which is listed as a threatened species
or endangered species under the Endangered
Species Act of 1973 (16 U.S.C. 1531 et seq.),
or is designated as depleted under this Act.
(20) The term ``potential biological removal level''
means the maximum number of animals, not including
natural mortalities, that may be removed from a marine
mammal stock while allowing that stock to reach or
maintain its optimum sustainable population. The
potential biological removal level is the product of
the following factors:
(A) The minimum population estimate of the
stock.
(B) One-half the maximum theoretical or
estimated net productivity rate of the stock at
a small population size.
(C) A recovery factor of between 0.1 and 1.0.
(21) The term ``Regional Fishery Management Council''
means a Regional Fishery Management Council established
under section 302 of the Magnuson Fishery Conservation
and Management Act.
(22) The term ``bona fide research'' means scientific
research on marine mammals, the results of which--
(A) likely would be accepted for publication
in a referred scientific journal;
(B) are likely to contribute to the basic
knowledge of marine mammal biology or ecology;
or
(C) are likely to identify, evaluate, or
resolve conservation problems.
(23) The term ``Alaska Native organization'' means a
group designated by law or formally chartered which
represents or consists of Indians, Aleuts, or Eskimos
residing in Alaska.
(24) The term ``take reduction plan'' means a plan
developed under section 118.
(25) The term ``take reduction team'' means a team
established under section 118.
(26) The term ``net productivity rate'' means the
annual per capita rate of increase in a stock resulting
from additions due to reproduction, less losses due to
mortality.
(27) The term ``minimum population estimate'' means
an estimate of the number of animals in a stock that--
(A) is based on the best available scientific
information on abundance, incorporating the
precision and variability associated with such
information; and
(B) provides reasonable assurance that the
stock size is equal to or greater than the
estimate.
(28) The term ``International Dolphin Conservation
Program'' means the international program established
by the agreement signed in LaJolla, California, in
June, 1992, as formalized, modified, and enhanced in
accordance with the Declaration of Panama.
(29) The term ``Declaration of Panama'' means the
declaration signed in Panama City, Republic of Panama,
on October 4, 1995.
* * * * * * *
TITLE I--CONSERVATION AND PROTECTION OF MARINE MAMMALS
Moratorium and Exceptions
Sec. 101. (a) There shall be a moratorium on the taking and
importation of marine mammals and marine mammal products,
commencing on the effective date of this Act, during which time
no permit may be issued for the taking of any marine mammal and
no marine mammal or marine mammal product may be imported into
the United States except in the following cases:
(1) Consistent with the provisions of section 104,
permits may be issued by the Secretary for taking, and
importation for purposes of scientific research, public
display, photography for educational or commercial
purposes, or enhancing the survival or recovery of a
species or stock, or for importation of polar bear
parts (other than internal organs) taken in sport hunts
in Canada. Such permits, except permits issued under
section 104(c)(5), may be issued if the taking or
importation proposed to be made is first reviewed by
the Marine Mammal Commission and the Committee of
Scientific Advisors on Marine Mammals established under
title II. The Commission and Committee shall recommend
any proposed taking or importation, other than
importation under section 104(c)(5), which is
consistent with the purposes and policies of section 2
of this Act. If the Secretary issues such a permit for
importation, the Secretary shall issue to the importer
concerned a certificate to that effect in such form as
the Secretary of the Treasury prescribes, and such
importation may be made upon presentation of the
certificate to the customs officer concerned.
(2) Marine mammals may be taken incidentally in the
course of commercial fishing operations and permits may
be issued therefor under section 104 subject to
regulations prescribed by the Secretary in accordance
with section 103, or in lieu of such permits,
authorizations may be granted therefor under section
118, subject to regulations prescribed under that
section by the Secretary without regard to section 103.
Such authorizations may be granted under title III with
respect to purse seine fishing for yellowfin tuna in
the eastern tropical Pacific Ocean, subject to
regulations prescribed under that title by the
Secretary without regard to section 103. In any event
it shall be the immediate goal that the incidental kill
or incidental serious injury of marine mammals
permitted in the course of commercial fishing
operations be reduced to insignificant levels
approaching a zero mortality and serious injury rate.
The Secretary of the Treasury shall ban the importation
of commercial fish or products from fish which have
been caught with commercial fishing technology which
results in the incidental kill or incidental serious
injury of ocean mammals in excess of United States
standards. For purposes of applying the preceding
sentence, the Secretary--
(A) shall insist on reasonable proof from the
government of any nation from which fish or
fish products will be exported to the United
States of the effects on ocean mammals of the
commercial fishing technology in use for such
fish or fish products exported from such nation
to the United States;
(B) in the case of yellowfin tuna harvested
with purse seine nets in the eastern tropical
Pacific Ocean, and products therefrom, to be
exported to the United States, shall require
that the government of the exporting nation
provide documentary evidence that--
(i)(I) the tuna or products therefrom
were not banned from importation under
this paragraph before the effective
date of section 4 of the International
Dolphin Conservation Program Act; or
(II) the tuna or products therefrom
were harvested after the effective date
of section 4 of the International
Dolphin Conservation Program Act by
vessels of a nation which participates
in the International Dolphin
Conservation Program, and such
harvesting nation is either a member of
the Inter-American Tropical Tuna
Commission or has initiated (and within
6 months thereafter completed) all
steps required of applicant nations, in
accordance with article V, paragraph 3
of the Convention establishing the
Inter-American Tropical Tuna
Commission, to become a member of that
organization;
(ii) such nation is meeting the
obligations of the International
Dolphin Conservation Program and the
obligations of membership in the Inter-
American Tropical Tuna Commission,
including all financial obligations;
and
(iii) the total dolphin mortality
limits, and per-stock per-year dolphin
mortality limits permitted for that
nation's vessels under the
International Dolphin Conservation
Program do not exceed the limits
determined for 1997, or for any year
thereafter, consistent with the
objective of progressively reducing
dolphin mortality to a level
approaching zero through the setting of
annual limits and the goal of
eliminating dolphin mortality, and
requirements of the International
Dolphin Conservation Program;
(C) shall not accept such documentary
evidence if--
(i) the government of the harvesting
nation does not provide directly or
authorize the Inter-American Tropical
Tuna Commission to release complete and
accurate information to the Secretary
in a timely manner--
(I) to allow determination of
compliance with the
International Dolphin
Conservation Program; and
(II) for the purposes of
tracking and verifying
compliance with the minimum
requirements established by the
Secretary in regulations
promulgated under subsection
(f) of the Dolphin Protection
Consumer Information Act (16
U.S.C. 1385(f)); or
(ii) after taking into consideration
such information, findings of the
Inter-American Tropical Tuna
Commission, and any other relevant
information, including information that
a nation is consistently failing to
take enforcement actions on violations
which diminish the effectiveness of the
International Dolphin Conservation
Program, the Secretary, in consultation
with the Secretary of State, finds that
the harvesting nation is not in
compliance with the International
Dolphin Conservation Program.
(D) shall require the government of any
intermediary nation to certify and provide
reasonable proof to the Secretary that it has
not imported, within the preceding six months,
any yellowfin tuna or yellowfin tuna products
that are subject to a direct ban on importation
to the United States under subparagraph (B);
(E) shall, six months after importation of
yellowfin tuna or tuna products has been banned
under this section, certify such fact to the
President, which certification shall be deemed
to be a certification for the purposes of
section 8(a) of the Fishermen's Protective Act
of 1967 (22 U.S.C. 1978(a)) for as long as such
ban is in effect; and
(F)(i) except as provided in clause (ii), in
the case of fish or products containing fish
harvested by a nation whose fishing vessels
engage in high seas driftnet fishing, shall
require that the government of the exporting
nation provide documentary evidence that the
fish or fish product was not harvested with a
large-scale driftnet in the South Pacific Ocean
after July 1, 1991, or in any other water of
the high seas after January 1, 1993, and
(ii) in the case of tuna or a product
containing tuna harvested by a nation whose
fishing vessels engage in high seas driftnet
fishing, shall require that the government of
the exporting nation provide documentary
evidence that the tuna or tuna product was not
harvested with a large-scale driftnet anywhere
on the high seas after July 1, 1991.
For purposes of subparagraph (F), the term ``driftnet''
has the meaning given such term in section 4003 of the
Driftnet Impact Monitoring, Assessment, and Control Act
of 1987 (16 U.S.C. 1822 note), except that, until
January 1, 1994, the term ``driftnet'' does not include
the use in the northeast Atlantic Ocean of gillnets
with a total length not to exceed five kilometers if
the use is in accordance with regulations adopted by
the European Community pursuant to the October 28,
1991, decision by the Council of Fisheries Ministers of
the Community.
(3)(A) The Secretary, on the basis of the best
scientific evidence available and in consultation with
the Marine Mammal Commission, is authorized and
directed, from time to time, having due regard to the
distribution, abundance, breeding habits, and times and
lines of migratory movements of such marine mammals, to
determine when, to what extent, if at all, and by what
means, it is compatible with this Act to waive the
requirements of this section so as to allow taking, or
importing of any marine mammal, or any marine mammal
product, and to adopt suitable regulations, issue
permits, and make determinations in accordance with
sections 102, 103, 104, and 111 of this title
permitting and governing such taking and importing, in
accordance with such determinations: Provided, however,
That the Secretary, in making such determinations, must
be assured that the taking of such marine mammal is in
accord with sound principles of resource protection and
conservation as provided in the purposes and policies
of this Act: Provided further, however, That no marine
mammal or no marine mammal product may be imported into
the United States unless the Secretary certifies that
the program for taking marine mammals in the country of
origin is consistent with the provisions and policies
of this Act. Products of nations not so certified may
not be imported into the United States for any purpose,
including processing for exportation.
(B) Except for scientific research purposes,
photography for educational or commercial purposes, or
enhancing the survival or recovery of a species or
stock as provided for in paragraph (1) of this
subsection, or as provided for under paragraph (5) of
this subsection, during the moratorium no permit may be
issued for the taking of any marine mammal which has
been designated by the Secretary as depleted, and no
importation may be made of any such mammal.
(4)(A) Except as provided in subparagraphs (B) and
(C), the provisions of this Act shall not apply to the
use of measures--
(i) by the owner of fishing gear or catch, or
an employee or agent of such owner, to deter a
marine mammal from damaging the gear or catch;
(ii) by the owner of other private property,
or an agent, bailee, or employee of such owner,
to deter a marine mammal from damaging private
property;
(iii) by any person, to deter a marine mammal
from endangering personal safety; or
(iv) by a government employee, to deter a
marine mammal from damaging public property,
so long as such measures do not result in the death or
serious injury of a marine mammal.
(B) The Secretary shall, through consultation with
appropriate experts, and after notice and opportunity
for public comment, publish in the Federal Register a
list of guidelines for use in safely deterring marine
mammals. In the case of marine mammals listed as
endangered species or threatened species under the
Endangered Species Act of 1973, the Secretary shall
recommend specific measures which may be used to
nonlethally deter marine mammals. Actions to deter
marine mammals consistent with such guidelines or
specific measures shall not be a violation of this Act.
(C) If the Secretary determines, using the best
scientific information available, that certain forms of
deterrence have a significant adverse effect on marine
mammals, the Secretary may prohibit such deterrent
methods, after notice and opportunity for public
comment, through regulation under this Act.
(D) The authority to deter marine mammals pursuant to
subparagraph (A) applies to all marine mammals,
including all stocks designated as depleted under this
Act.
(5)(A)(i) Upon request therefor by citizens of the
United States who engage in a specified activity (other
than commercial fishing) within a specified
geographical region, the Secretary shall allow, during
periods of not more than five consecutive years each,
the incidental, but not intentional, taking by citizens
while engaging in that activity within that region of
small numbers of marine mammals of a species or
population stock if the Secretary, after notice (in the
Federal Register and in newspapers of general
circulation, and through appropriate electronic media,
in the coastal areas that may be affected by such
activity) and opportunity for public comment--
(I) finds that the total of such taking
during each five-year (or less) period
concerned will have a negligible impact on such
species or stock and will not have an
unmitigable adverse impact on the availability
of such species or stock for taking for
subsistence uses pursuant to subsection (b) or
section 109(f) or, in the case of a cooperative
agreement under both this Act and the Whaling
Convention Act of 1949, pursuant to section
112(c); and
(II) prescribes regulations setting forth
(aa) permissible methods of taking
pursuant to such activity, and other
means of effecting the least
practicable adverse impact on such
species or stock and its habitat,
paying particular attention to
rookeries, mating grounds, and areas of
similar significance, and on the
availability of such species or stock
for subsistence uses; and
(bb) requirements pertaining to the
monitoring and reporting of such
taking.
(ii) For a military readiness activity (as defined in
section 315(f) of Public Law 107-314; 16 U.S.C. 703
note), a determination of ``least practicable adverse
impact on such species or stock'' under clause
(i)(II)(aa) shall include consideration of personnel
safety, practicality of implementation, and impact on
the effectiveness of the military readiness activity.
Before making the required determination, the Secretary
shall consult with the Department of Defense regarding
personnel safety, practicality of implementation, and
impact on the effectiveness of the military readiness
activity.
(iii) Notwithstanding clause (i), for any
authorization affecting a military readiness activity
(as defined in section 315(f) of Public Law 107-314; 16
U.S.C. 703 note), the Secretary shall publish the
notice required by such clause only in the Federal
Register.
(B) The Secretary shall withdraw, or suspend for a
time certain (either on an individual or class basis,
as appropriate) the permission to take marine mammals
under subparagraph (A) pursuant to a specified activity
within a specified geographical region if the Secretary
finds, after notice and opportunity for public comment
(as required under subparagraph (A) unless subparagraph
(C)(i) applies), that--
(i) the regulations prescribed under
subparagraph (A) regarding methods of taking,
monitoring, or reporting are not being
substantially complied with by a person
engaging in such activity; or
(ii) the taking allowed under subparagraph
(A) pursuant to one or more activities within
one or more regions is having, or may have,
more than a negligible impact on the species or
stock concerned.
(C)(i) The requirement for notice and opportunity for
public comment in subparagraph (B) shall not apply in
the case of a suspension of permission to take if the
Secretary determines that an emergency exists which
poses a significant risk to the well-being of the
species or stock concerned.
(ii) Sections 103 and 104 shall not apply to the
taking of marine mammals under the authority of this
paragraph.
(D)(i) Upon request therefor by [citizens of the
United States] persons who engage in a specified
activity (other than commercial fishing) [within a
specific geographic region], the Secretary shall
authorize, for periods of not more than 1 year, subject
to such conditions as the Secretary may specify, the
incidental, but not intentional, taking by harassment
[of small numbers] of marine mammals of a species or
population stock by [such citizens] such persons while
engaging in that activity [within that region] if the
Secretary finds that such harassment during each period
concerned--
(I) will have a negligible impact on such
species or stock, and
(II) will not have an unmitigable adverse
impact on the availability of such species or
stock for taking for subsistence uses pursuant
to subsection (b), or section 109(f) or
pursuant to a cooperative agreement under
section 119.
(ii) The authorization for such activity shall
prescribe, where applicable--
(I) permissible methods of taking by
harassment pursuant to such activity[, and
other means of effecting the least practicable
impact on such species or stock and its
habitat], paying particular attention to
rookeries, mating grounds, and areas of similar
significance, and on the availability of such
species or stock for taking for subsistence
uses pursuant to subsection (b) or section
109(f) or pursuant to a cooperative agreement
under section 119,
(II) the measures that the Secretary
determines are necessary to ensure no
unmitigable adverse impact on the availability
of the species or stock for taking for
subsistence uses pursuant to subsection (b) or
section 109(f) or pursuant to a cooperative
agreement under section 119, and
(III) [requirements pertaining to the
monitoring and reporting of such taking by
harassment, including] efficient and practical
requirements pertaining to the monitoring of
such taking by harassment while the activity is
being conducted and the reporting of such
taking, including, as the Secretary determines
necessary, requirements for the independent
peer review of proposed monitoring plans or
other research proposals where the proposed
activity may affect the availability of a
species or stock for taking for subsistence
uses pursuant to subsection (b) or section
109(f) or pursuant to a cooperative agreement
under section 119.
Any condition imposed pursuant to subclause (I), (II),
or (III) may not result in more than a minor change to
the specified activity and may not alter the basic
design, location, scope, duration, or timing of the
specified activity.
(iii) The Secretary shall publish a proposed
authorization not later than 45 days after [receiving
an application under this subparagraph] an application
is accepted or required to be considered complete under
subclause (I)(aa), (II)(aa), or (IV) of clause (viii),
as applicable, and request public comment through
notice in the Federal Register, newspapers of general
circulation, and appropriate electronic media and to
all locally affected communities for a period of 30
days after publication. Not later than 45 days after
the close of the public comment period, if the
Secretary makes the findings set forth in clause (i),
the Secretary shall issue an authorization with
appropriate conditions to meet the requirements of
clause (ii).
(iv) The Secretary shall modify, suspend, or revoke
an authorization if the Secretary finds that the
provisions of clauses (i) or (ii) are not being met.
(v) A person conducting an activity for which an
authorization has been granted under this subparagraph
shall not be subject to the penalties of this Act for
taking by harassment that occurs in compliance with
such authorization.
(vi) For a military readiness activity (as defined in
section 315(f) of Public Law 107-314; 16 U.S.C. 703
note), [a determination of ``least practicable adverse
impact on such species or stock'' under clause (i)(I)]
conditions imposed under subclause (I), (II), or (III)
of clause (ii) shall include consideration of personnel
safety, practicality of implementation, and impact on
the effectiveness of the military readiness activity.
Before making the required determination, the Secretary
shall consult with the Department of Defense regarding
personnel safety, practicality of implementation, and
impact on the effectiveness of the military readiness
activity.
(vii) Notwithstanding clause (iii), for any
authorization affecting a military readiness activity
(as defined in section 315(f) of Public Law 107-314; 16
U.S.C. 703 note), the Secretary shall publish the
notice required by such clause only in the Federal
Register.
(viii)(I) The Secretary shall--
(aa) accept as complete a written request for
authorization under this subparagraph for
incidental taking described in clause (i), by
not later than 45 days after the date of
submission of the request; or
(bb) provide to the requester, by not later
than 15 days after the date of submission of
the request, a written notice describing any
additional information required to complete the
request.
(II) If the Secretary provides notice under subclause
(I)(bb), the Secretary shall, by not later than 30 days
after the date of submission of the additional
information described in the notice--
(aa) accept the written request for
authorization under this subparagraph for
incidental taking described in clause (i); or
(bb) deny the request and provide the
requester a written explanation of the reasons
for the denial.
(III) The Secretary may not under this subparagraph
make a second request for information, request that the
requester withdraw and resubmit the request, or
otherwise delay a decision on the request.
(IV) If the Secretary fails to respond to a request
for authorization under this subparagraph in the manner
provided in subclause (I) or (II), the request shall be
considered to be complete.
(ix)(I) At least 90 days before the date of the
expiration of any authorization issued under this
subparagraph, the holder of such authorization may
apply for a one-year extension of such authorization.
The Secretary shall grant such extension within 14 days
after the date of such request on the same terms and
without further review if there has been no substantial
change in the activity carried out under such
authorization nor in the status of the marine mammal
species or stock, as applicable, as reported in the
final annual stock assessment reports for such species
or stock.
(II) In subclause (I) the term ``substantial change''
means a change that prevents the Secretary from making
the required findings to issue an authorization under
clause (i) with respect to such species or stock.
(III) The Secretary shall notify the applicant of
such substantial changes with specificity and in
writing within 14 days after the applicant's submittal
of the extension request.
(x) If the Secretary fails to make the required
findings and, as appropriate, issue the authorization
within 120 days after the application is accepted or
required to be considered complete under subclause
(I)(aa), (II)(aa), or (III) of clause (viii), as
applicable, the authorization is deemed to have been
issued on the terms stated in the application and
without further process or restrictions under this Act.
(xi) Any taking of a marine mammal in compliance with
an authorization under this subparagraph is exempt from
the prohibition on taking in section 9 of the
Endangered Species Act of 1973 (16 U.S.C. 1538). Any
Federal agency authorizing, funding, or carrying out an
action that results in such taking, and any agency
action authorizing such taking, is exempt from the
requirement to consult regarding potential impacts to
marine mammal species or designated critical habitat
under section 7(a)(2) of such Act (16 U.S.C.
1536(a)(2)).
(E)(i) During any period of up to 3 consecutive
years, the Secretary shall allow the incidental, but
not the intentional, taking by persons using vessels of
the United States or vessels which have valid fishing
permits issued by the Secretary in accordance with
section 204(b) of the Magnuson Fishery Conservation and
Management Act (16 U.S.C. 1824(b)), while engaging in
commercial fishing operations, of marine mammals from a
species or stock designated as depleted because of its
listing as an endangered species or threatened species
under the Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.) if the Secretary, after notice and
opportunity for public comment, determines that--
(I) the incidental mortality and serious
injury from commercial fisheries will have a
negligible impact on such species or stock;
(II) a recovery plan has been developed or is
being developed for such species or stock
pursuant to the Endangered Species Act of 1973;
and
(III) where required under section 118, a
monitoring program is established under
subsection (d) of such section, vessels engaged
in such fisheries are registered in accordance
with such section, and a take reduction plan
has been developed or is being developed for
such species or stock.
(ii) Upon a determination by the Secretary that the
requirements of clause (i) have been met, the Secretary
shall publish in the Federal Register a list of those
fisheries for which such determination was made, and,
for vessels required to register under section 118,
shall issue an appropriate permit for each
authorization granted under such section to vessels to
which this paragraph applies. Vessels engaged in a
fishery included in the notice published by the
Secretary under this clause which are not required to
register under section 118 shall not be subject to the
penalties of this Act for the incidental taking of
marine mammals to which this paragraph applies, so long
as the owner or master of such vessel reports any
incidental mortality or injury of such marine mammals
to the Secretary in accordance with section 118.
(iii) If, during the course of the commercial fishing
season, the Secretary determines that the level of
incidental mortality or serious injury from commercial
fisheries for which a determination was made under
clause (i) has resulted or is likely to result in an
impact that is more than negligible on the endangered
or threatened species or stock, the Secretary shall use
the emergency authority granted under section 118 to
protect such species or stock, and may modify any
permit granted under this paragraph as necessary.
(iv) The Secretary may suspend for a time certain or
revoke a permit granted under this subparagraph only if
the Secretary determines that the conditions or
limitations set forth in such permit are not being
complied with. The Secretary may amend or modify, after
notice and opportunity for public comment, the list of
fisheries published under clause (ii) whenever the
Secretary determines there has been a significant
change in the information or conditions used to
determine such list.
(v) Sections 103 and 104 shall not apply to the
taking of marine mammals under the authority of this
subparagraph.
(vi) This subparagraph shall not govern the
incidental taking of California sea otters and shall
not be deemed to amend or repeal the Act of November 7,
1986 (Public Law 99-625; 100 Stat. 3500).
(F) Notwithstanding the provisions of this
subsection, any authorization affecting a military
readiness activity (as defined in section 315(f) of
Public Law 107-314; 16 U.S.C. 703 note) shall not be
subject to the following requirements:
(i) In subparagraph (A), ``within a specified
geographical region'' and ``within that region
of small numbers''.
(ii) In subparagraph (B), ``within a
specified geographical region'' and ``within
one or more regions''.
(iii) In subparagraph (D), ``within a
specific geographic region'', ``of small
numbers'', and ``within that region''.
(6)(A) A marine mammal product may be imported into
the United States if the product--
(i) was legally possessed and exported by any
citizen of the United States in conjunction
with travel outside the United States, provided
that the product is imported into the United
States by the same person upon the termination
of travel;
(ii) was acquired outside of the United
States as part of a cultural exchange by an
Indian, Aleut, or Eskimo residing in Alaska; or
(iii) is owned by a Native inhabitant of
Russia, Canada, or Greenland and is imported
for noncommercial purposes in conjunction with
travel within the United States or as part of a
cultural exchange with an Indian, Aleut, or
Eskimo residing in Alaska.
(B) For the purposes of this paragraph, the term--
(i) ``Native inhabitant of Russia, Canada, or
Greenland'' means a person residing in Russia,
Canada, or Greenland who is related by blood,
is a member of the same clan or ethnological
grouping, or shares a common heritage with an
Indian, Aleut, or Eskimo residing in Alaska;
and
(ii) ``cultural exchange'' means the sharing
or exchange of ideas, information, gifts,
clothing, or handicrafts between an Indian,
Aleut, or Eskimo residing in Alaska and a
Native inhabitant of Russia, Canada, or
Greenland, including rendering of raw marine
mammal parts as part of such exchange into
clothing or handicrafts through carving,
painting, sewing, or decorating.
(b) Except as provided in section 109, the provisions of this
Act shall not apply with respect to the taking of any marine
mammal by any Indian, Aleut, or Eskimo who resides in Alaska
and who dwells on the coast of the North Pacific Ocean or the
Arctic Ocean if such taking--
(1) is for subsistence purposes; or
(2) is done for purposes of creating and selling
authentic native articles of handicrafts and clothing:
Provided, That only authentic native articles of
handicrafts and clothing may be sold in interstate
commerce: And provided further, That any edible portion
of marine mammals may be sold in native villages and
towns in Alaska or for native consumption. For the
purposes of this subsection, the term ``authentic
native articles of handicrafts and clothing'' means
items composed wholly or in some significant respect of
natural materials, and which are produced, decorated,
or fashioned in the exercise of traditional native
handicrafts without the use of panto-graphs, multiple
carvers, or other mass copying devices. Traditional
native handicrafts include, but are not limited to
weaving, carving, stitching, sewing, lacing, beading,
drawing, and painting; and
(3) in each case, is not accomplished in a wasteful
manner.
Notwithstanding the preceding provisions of this subsection,
when, under this Act, the Secretary determines any species or
stock of marine mammal subject to taking by Indians, Aleuts, or
Eskimos to be depleted, he may prescribe regulations upon
thetaking of such marine mammals by any Indian, Aleut, or
Eskimo described in this subsection. Such regulations may be
established with reference to species or stocks, geographical
description of the area included, the season for taking, or any
other factors related to the reason for establishing such
regulations and consistent with the purposes of this Act. Such
regulations shall be prescribed after notice and hearing
required by section 103 of this title and shall be removed as
soon as the Secretary determines that the need for their
imposition has disappeared. In promulgating any regulation or
making any assessment pursuant to a hearing or proceeding under
this subsection or section 117(b)(2), or in making any
determination of depletion under this subsection or finding
regarding unmitigable adverse impacts under subsection (a)(5)
that affects stocks or persons to which this subsection
applies, the Secretary shall be responsible for demonstrating
that such regulation, assessment, determination, or finding is
supported by substantial evidence on the basis of the record as
a whole. The preceding sentence shall only be applicable in an
action brought by one or more Alaska Native organizations
representing persons to which this subsection applies.
(c) It shall not be a violation of this Act to take a marine
mammal if such taking is imminently necessary in self-defense
or to save the life of a person in immediate danger, and such
taking is reported to the Secretary within 48 hours. The
Secretary may seize and dispose of any carcass.
(d) Good Samaritan Exemption.--It shall not be a violation of
this Act to take a marine mammal if--
(1) such taking is imminently necessary to avoid
serious injury, additional injury, or death to a marine
mammal entangled in fishing gear or debris;
(2) reasonable care is taken to ensure the safe
release of the marine mammal, taking into consideration
the equipment, expertise, and conditions at hand;
(3) reasonable care is exercised to prevent any
further injury to the marine mammal; and
(4) such taking is reported to the Secretary within
48 hours.
(e) Act Not to Apply to Incidental Takings by United States
Citizens Employed on Foreign Vessels Outside the United States
EEZ.--The provisions of this Act shall not apply to a citizen
of the United States who incidentally takes any marine mammal
during fishing operations outside the United States exclusive
economic zone (as defined in section 3 of the Magnuson-Stevens
Fishery Conservation and Management Act (16 U.S.C. 1802)) when
employed on a foreign fishing vessel of a harvesting nation
which is in compliance with the International Dolphin
Conservation Program.
(f) Exemption of Actions Necessary for National Defense.--(1)
The Secretary of Defense, after conferring with the Secretary
of Commerce, the Secretary of the Interior, or both, as
appropriate, may exempt any action or category of actions
undertaken by the Department of Defense or its components from
compliance with any requirement of this Act, if the Secretary
determines that it is necessary for national defense.
(2) An exemption granted under this subsection--
(A) subject to subparagraph (B), shall be effective
for a period specified by the Secretary of Defense; and
(B) shall not be effective for more than 2 years.
(3)(A) The Secretary of Defense may issue additional
exemptions under this subsection for the same action or
category of actions, after--
(i) conferring with the Secretary of Commerce, the
Secretary of the Interior, or both as appropriate; and
(ii) making a new determination that the additional
exemption is necessary for national defense.
(B) Each additional exemption under this paragraph shall be
effective for a period specified by the Secretary of Defense,
of not more than 2 years.
(4) Not later than 30 days after issuing an exemption under
paragraph (1) or an additional exemption under paragraph (3),
the Secretary of Defense shall submit to the Committee on Armed
Services of the House of Representatives and the Committee on
Armed Services of the Senate notice describing the exemption
and the reasons therefor. The notice may be provided in
classified form if the Secretary of Defense determines that use
of the classified form is necessary for reasons of national
security.
* * * * * * *
----------
MINERAL LEASING ACT
* * * * * * *
Sec. 17. (a) All lands subject to disposition under this Act
which are known or believed to contain oil or gas deposits may
be leased by the Secretary.
(b)(1)(A) All lands to be leased which are not subject to
leasing under paragraphs (2) and (3) of this subsection shall
be leased as provided in this paragraph to the highest
responsible qualified bidder by competitive bidding under
general regulations in units of not more than 2,560 acres,
except in Alaska, where units shall be not more than 5,760
acres. Such units shall be as nearly compact as possible. Lease
sales shall be conducted by oral bidding, except as provided in
subparagraph (C). Lease sales shall be held for each State
where eligible lands are available at least quarterly and more
frequently if the Secretary of the Interior determines such
sales are necessary. A lease shall be conditioned upon the
payment of a royalty at a rate of not less than 12.5 percent in
amount or value of the production removed or sold from the
lease. The Secretary shall accept the highest bid from a
responsible qualified bidder which is equal to or greater than
the national minimum acceptable bid, without evaluation of the
value of the lands proposed for lease. Leases shall be issued
within 60 days following payment by the successful bidder of
the remainder of the bonus bid, if any, and the annual rental
for the first lease year. The Secretary shall resolve any
protest to a lease sale within 60 days following such payment.
All bids for less than the national minimum acceptable bid
shall be rejected. Lands for which no bids are received or for
which the highest bid is less than the national minimum
acceptable bid shall be offered promptly within 30 days for
leasing under subsection (c) of this section and shall remain
available for leasing for a period of 2 years after the
competitive lease sale.
(B) The national minimum acceptable bid shall be $2 per acre
for a period of 2 years from the date of enactment of the
Federal Onshore Oil and Gas Leasing Reform Act of 1987.
Thereafter, the Secretary, subject to paragraph (2)(B), may
establish by regulation a higher national minimum acceptable
bid for all leases based upon a finding that such action is
necessary: (i) to enhance financial returns to the United
States; and (ii) to promote more efficient management of oil
and gas resources on Federal lands. Ninety days before the
Secretary makes any change in the national minimum acceptable
bid, the Secretary shall notify the Committee on Natural
Resources of the United States House of Representatives and the
Committee on Energy and Natural Resources of the United States
Senate. The proposal or promulgation of any regulation to
establish a national minimum acceptable bid shall not be
considered a major Federal action subject to the requirements
of section 102(2)(C) of the National Environmental Policy Act
of 1969.
(C) In order to diversify and expand the Nation's onshore
leasing program to ensure the best return to the Federal
taxpayer, reduce fraud, and secure the leasing process, the
Secretary may conduct onshore lease sales through Internet-
based bidding methods. Each individual Internet-based lease
sale shall conclude within 7 days.
(2)(A)(i) If the lands to be leased are within a special tar
sand area, they shall be leased to the highest responsible
qualified bidder by competitive bidding under general
regulations in units of not more than 5,760 acres, which shall
be as nearly compact as possible, upon the payment by the
lessee of such bonus as may be accepted by the Secretary.
(ii) Royalty shall be 12\1/2\ per centum in amount of value
of production removed or sold from the lease subject to section
17(k)(1)(c).
(iii) The Secretary may lease such additional lands in
special tar sand areas as may be required in support of any
operations necessary for the recovery of tar sands.
(iv) No lease issued under this paragraph shall be
included in any chargeability limitation associated
with oil and gas leases.
(B) For any area that contains any combination of tar sand
and oil or gas (or both), the Secretary may issue under this
Act, separately--
(i) a lease for exploration for and extraction of tar
sand; and
(ii) a lease for exploration for and development of
oil and gas.
(C) A lease issued for tar sand shall be issued using the
same bidding process, annual rental, and posting period as a
lease issued for oil and gas, except that the minimum
acceptable bid required for a lease issued for tar sand shall
be $2 per acre.
(D) The Secretary may waive, suspend, or alter any
requirement under section 26 that a permittee under a permit
authorizing prospecting for tar sand must exercise due
diligence, to promote any resource covered by a combined
hydrocarbon lease.
(3)(A) If the United States held a vested future interest in
a mineral estate that, immediately prior to becoming a vested
present interest, was subject to a lease under which oil or gas
was being produced, or had a well capable of producing, in
paying quantities at an annual average production volume per
well per day of either not more than 15 barrels per day of oil
or condensate, or not more than 60,000 cubic feet of gas, the
holder of the lease may elect to continue the lease as a
noncompetitive lease under subsection (c)(1).
(B) An election under this paragraph is effective--
(i) in the case of an interest which vested after
January 1, 1990, and on or before the date of enactment
of this paragraph, if the election is made before the
date that is 1 year after the date of enactment of this
paragraph;
(ii) in the case of an interest which vests within 1
year after the date of enactment of this paragraph, if
the election is made before the date that is 2 years
after the date of enactment of this paragraph; and
(iii) in any case other than those described in
clause (i) or (ii), if the election is made prior to
the interest becoming a vested present interest.
(C) Notwithstanding the consent requirement referenced in
section 3 of the Mineral Leasing Act for Acquired Lands (30
U.S.C. 352), the Secretary shall issue a noncompetitive lease
under subsection (c)(1) to a holder who makes an election under
subparagraph (A) and who is qualified to hold a lease under
this Act. Such lease shall be subject to all terms and
conditions under this Act that are applicable to leases issued
under subsection (c)(1).
(D) A lease issued pursuant to this paragraph shall continue
so long as oil or gas continues to be produced in paying
quantities.
(E) This paragraph shall apply only to those lands under the
administration of the Secretary of Agriculture where the United
States acquired an interest in such lands pursuant to the Act
of March 1, 1911 (36 Stat. 961 and following).
(c)(1) If the lands to be leased are not leased under
subsection (b)(1) of this section or are not subject to
competitive leasing under subsection (b)(2) of this section,
the person first making application for the lease who is
qualified to hold a lease under this Act shall be entitled to a
lease of such lands without competitive bidding, upon payment
of a non-refundable application fee of at least $75. A lease
under this subsection shall be conditioned upon the payment of
a royalty at a rate of 12.5 percent in amount or value of the
production removed or sold from the lease. Leases shall be
issued within 60 days of the date on which the Secretary
identifies the first responsible qualified applicant.
(2)(A) Lands (i) which were posted for sale under subsection
(b)(1) of this section but for which no bids were received or
for which the highest bid was less than the national minimum
acceptable bid and (ii) for which, at the end of the period
referred to in subsection (b)(1) of this section no lease has
been issued and no lease application is pending under paragraph
(1) of this subsection, shall again be available for leasing
only in accordance with subsection (b)(1) of this section.
(B) The land in any lease which is issued under paragraph (1)
of this subsection or under subsection (b)(1) of this section
which lease terminates, expires, is cancelled or is
relinquished shall again be available for leasing only in
accordance with subsection (b)(1) of this section.
(d) All leases issued under this section, as amended by the
Federal Onshore Oil and Gas Leasing Reform Act of 1987, shall
be conditioned upon payment by the lessee of a rental of not
less than $1.50 per acre per year for the first through fifth
years of the lease and not less than $2 per acre per year for
each year thereafter. A minimum royalty in lieu of rental of
not less than the rental which otherwise would be required for
that lease year shall be payable at the expiration of each
lease year beginning on or after a discovery of oil or gas in
paying quantities on the lands leased.
(e) Competitive and noncompetitive leases issued under this
section shall be for a primary term of 10 years: Provided,
however, That competitive leases issued in special tar sand
areas shall also be for a primary term of ten years. Each such
lease shall continue so long after its primary term as oil or
gas is produced in paying quantities. Any lease issued under
this section for land on which, or for which under an approved
cooperative or unit plan of development or operation, actual
drilling operations were commenced prior to the end of its
primary term and are being diligently prosecuted at that time
shall be extended for two years and so long thereafter as oil
or gas is produced in paying quantities.
(f) At least 45 days before offering lands for lease under
this section, and at least 30 days before approving
applications for permits to drill under the provisions of a
lease or substantially modifying the terms of any lease issued
under this section, the Secretary shall provide notice of the
proposed action. Such notice shall be posted in the appropriate
local office of the leasing and land management agencies. Such
notice shall include the terms or modified lease terms and maps
or a narrative description of the affected lands. Where the
inclusion of maps in such notice is not practicable, maps of
the affected lands shall be made available to the public for
review. Such maps shall show the location of all tracts to be
leased, and of all leases already issued in the general area.
The requirements of this subsection are in addition to any
public notice required by other law.
(g) The Secretary of the Interior, or for National Forest
lands, the Secretary of Agriculture, shall regulate all
surface-disturbing activities conducted pursuant to any lease
issued under this Act, and shall determine reclamation and
other actions as required in the interest of conservation of
surface resources. No permit to drill on an oil and gas lease
issued under this Act may be granted without the analysis and
approval by the Secretary concerned of a plan of operations
covering proposed surface-disturbing activities within the
lease area. The Secretary concerned shall, by rule or
regulation, establish such standards as may be necessary to
ensure that an adequate bond, surety, or other financial
arrangement will be established prior to the commencement of
surface-disturbing activities on any lease, to ensure the
complete and timely reclamation of the lease tract, and the
restoration of any lands or surface waters adversely affected
by lease operations after the abandonment or cessation of oil
and gas operations on the lease. The Secretary shall not issue
a lease or leases or approve the assignment of any lease or
leases under the terms of this section to any person,
association, corporation, or any subsidiary, affiliate, or
person controlled by or under common control with such person,
association, or corporation, during any period in which, as
determined by the Secretary of the Interior or Secretary of
Agriculture, such entity has failed or refused to comply in any
material respect with the reclamation requirements and other
standards established under this section for any prior lease to
which such requirements and standards applied. Prior to making
such determination with respect to any such entity the
concerned Secretary shall provide such entity with adequate
notification and an opportunity to comply with such reclamation
requirements and other standards and shall consider whether any
administrative or judicial appeal is pending. Once the entity
has complied with the reclamation requirement or other standard
concerned an oil or gas lease may be issued to such entity
under this Act.
(h) The Secretary of the Interior may not issue any lease on
National Forest System Lands reserved from the public domain
over the objection of the Secretary of Agriculture.
(i) No lease issued under this section which is subject to
termination because of cessation of production shall be
terminated for this cause so long as reworking or drilling
operations which were commenced on the land prior to or within
sixty days after cessation of production are conducted thereon
with reasonable diligence, or so long as oil or gas is produced
in paying quantities as a result of such operations. No lease
issued under this section shall expire because operations or
production is suspended under any order, or with the consent,
of the Secretary. No lease issued under this section covering
lands on which there is a well capable of producing oil or gas
in paying quantities shall expire because the lessee fails to
produce the same unless the lessee is allowed a reasonable
time, which shall be not less than sixty days after notice by
registered or certified mail, within which to place such well
in producing status or unless, after such status is
established, production is discontinued on the leased premises
without permission granted by the Secretary under the
provisions of this Act.
(j) Whenever it appears to the Secretary that lands owned by
the United States are being drained of oil or gas by wells
drilled on adjacent lands, he may negotiate agreements whereby
the United States, or the United States and its lessees, shall
be compensated for such drainage. Such agreements shall be made
with the consent of the lessees, if any, affected thereby. If
such agreement is entered into, the primary term of any lease
for which compensatory royalty is being paid, or any extension
of such primary term, shall be extended for the period during
which such compensatory royalty is paid and for a period of one
year from discontinuance of such payment and so long thereafter
as oil or gas is produced in paying quantities.
(k) If, during the primary term or any extended term of any
lease issued under this section, a verified statement is filed
by any mining claimant pursuant to subsection (c) of section 7
of the Multiple Mineral Development Act of August 13, 1954 (68
Stat. 708), as amended (30 U.S.C. 527), whether such filing
occur prior to enactment of the Mineral Leasing Act Revision of
1960 or thereafter, asserting the existence of a conflicting
unpatented mining claim or claims upon which diligent work is
being prosecuted as to any lands covered by the lease, the
running of time under such lease shall be suspended as to the
lands involved from the first day of the month following the
filing of such verified statement until a final decision is
rendered in the matter.
(l) The Secretary of the Interior shall, upon timely
application therefor, issue a new lease in exchange for any
lease issued for a term of twenty years, or any renewal
thereof, or any lease issued prior to August 8, 1946, in
exchange for a twenty-year lease, such new lease to be for a
primary term of five years and so long thereafter as oil or gas
is produced in paying quantities and at a royalty rate of not
less than 12\1/2\ per centum in amount of value of the
production removed or sold from such leases, except that the
royalty rate shall be 12\1/2\ per centum in amount or value of
the production removed or sold from said leases as to (1) such
leases, or such parts of the lands subject thereto and the
deposits underlying the same, as are not believed to be within
the productive limits of any producing oil or gas deposit, as
such productive limits are found by the Secretary to have
existed on August 8, 1946; and (2) any production on a lease
from an oil or gas deposit which was discovered after May 27,
1941, by a well or wells drilled within the boundaries of the
lease, and which is determined by the Secretary to be a new
deposit; and (3) any production on or allocated to a lease
pursuant to an approved cooperative or unit plan of development
or operation from an oil or gas deposit which was discovered
after May 27, 1941, on land committed to such plan, and which
is determined by the Secretary to be a new deposit, where such
lease, or a lease for which it is exchanged, was included in
such plan at the time of discovery or was included in a duly
executed and filed application for the approval of such plan at
the time of discovery.
(m) For the purpose of more properly conserving the natural
resources of any oil or gas pool, field, or like area, or any
part thereof (whether or not any part of said oil or gas pool,
field, or like area, is then subject to any cooperative or unit
plan of development or operation), lessees thereof and their
representatives may unite with each other, or jointly or
separately with others, in collective adopting and operating
under a cooperative or unit plan of development or operation of
such pool, field, or like area, or any part thereof, whenever
determined and certified by the Secretary of the Interior to be
necessary or advisable in the public interest. The Secretary is
thereunto authorized, in his discretion, with the consent of
the holders of leases involved, to establish, alter, change, or
revoke drilling, producing, rental, minimum royalty, and
royalty requirements of such leases and to make such
regulations with reference to such leases, with like consent on
the part of the lessees, in connection with the institution and
operation of any such cooperative or unit plan as he may deem
necessary or proper to secure the proper protection of the
public interest. The Secretary may provide that oil and gas
leases hereafter issued under this Act shall contain a
provision requiring the lessee to operate under such a
reasonable cooperative or unit plan, and he may prescribe such
a plan under which such lessee shall operate, which shall
adequately protect the rights of all parties in interest,
including the United States.
Any plan authorized by the preceding paragraph which includes
lands owned by the United States may, in the discretion of the
Secretary, contain a provision whereby authority is vested in
the Secretary of the Interior, or any such person, committee,
or State or Federal officer or agency as may be designated in
the plan, to alter or modify from time to time the rate of
prospecting and development and the quantity and rate of
production under such plan. All leases operated under any such
plan approved or prescribed by the Secretary shall be excepted
in determining holdings or control under the provisions of any
section of this Act.
When separate tracts cannot be independently developed and
operated in conformity with an established well-spacing or
development program, any lease, or a portion thereof, may be
pooled with other lands, whether or not owned by the United
States, under a communitization or drilling agreement providing
for an apportionment of production or royalties among the
separate tracts of land comprising the drilling or spacing unit
when determined by the Secretary of the Interior to be in the
public interest, and operations or production pursuant to such
an agreement shall be deemed to be operations or production as
to each such lease committed thereto.
Any lease issued for a term of twenty years, or any renewal
thereof, or any portion of such lease that has become the
subject of a cooperative or unit plan of development or
operation of a pool, field, or like area, which plan has the
approval of the Secretary of the Interior, shall continue in
force until the termination of such plan. Any other lease
issued under any section of this Act which has heretofore or
may hereafter be committed to any such plan that contains a
general provision for allocation of oil or gas shall continue
in force and effect as to the land committed so long as the
lease remains subject to the plan: Provided, That production is
had in paying quantities under the plan prior to the expiration
date of the term of such lease. Any lease heretofore or
hereafter committed to any such plan embracing lands that are
in part within and in part outside of the area covered by any
such plan shall be segregated into separate leases as to the
lands committed and the lands not committed as of the effective
date of unitization: Provided, however, That any such lease as
to the nonunitized portion shall continue in force and effect
for the term thereof but for not less than two years from the
date of such segregation and so long thereafter as oil or gas
is produced in paying quantities. The minimum royalty or
discovery rental under any lease that has become subject to any
cooperative or unit plan of development or operation, or other
plan that contains a general provision for allocation of oil or
gas, shall be payable only with respect to the lands subject to
such lease to which oil or gas shall be allocated under such
plan. Any lease which shall be eliminated from any such
approved or prescribed plan, or from any communitization or
drilling agreement authorized by this section, and any lease
which shall be in effect at the termination of any such
approved or prescribed plan, or at the termination of any such
communitization or drilling agreement, unless relinquished,
shall continue in effect for the original term thereof, but for
not less than two years, and so long thereafter as oil or gas
is produced in paying quantities.
The Secretary of the Interior is hereby authorized, on such
conditions as he may prescribe, to approve operating, drilling,
or development contracts made by one or more lessees of oil or
gas leases, with one or more persons, associations, or
corporations whenever, in his discretion, the conservation of
natural products or the public convenience or necessity may
require it or the interests of the United States may be best
subserved thereby. All leases operated under such approved
operating, drilling, or development contracts, and interests
thereunder, shall be excepted in determining holdings or
control under the provisions of this Act.
The Secretary of the Interior, to avoid waste or to promote
conservation of natural resources, may authorize the subsurface
storage of oil or gas, whether or not produced from federally
owned lands, in lands leased or subject to lease under this
Act. Such authorization may provide for the payment of a
storage fee or rental on such stored oil or gas or, in lieu of
such fee or rental, for a royalty other than that prescribed in
the lease when such stored oil or gas is produced in
conjunction with oil or gas not previously produced. Any lease
on which storage is so authorized shall be extended at least
for the period of storage and so long thereafter as oil or gas
not previously produced is produced in paying quantities.
(n)(1)(A) The owner of (1) an oil and gas lease issued prior
to the date of enactment of the Combined Hydrocarbon Leasing
Act of 1981 or (2) a valid claim to any hydrocarbon resources
leasable under this section based on a mineral location made
prior to January 21, 1926, and located within a special tar
sand area shall be entitled to convert such lease or claim to a
combined hydrocarbon lease for a primary term of ten years upon
the filing of an application within two years from the date of
enactment of that Act containing an acceptable plan of
operations which assures reasonable protection of the
environment and diligent development of those resources
requiring enhanced recovery methods of development or mining.
For purposes of conversion, no claim shall be deemed invalid
solely because it was located as a placer location rather than
a lode location or vice versa, notwithstanding any previous
adjudication on that issue.
(B) The Secretary shall issue final regulations to implement
this section within six months of the effective date of this
Act. If any oil and gas lease eligible for conversion under
this section would otherwise expire after the date of this Act
and before six months following the issuance of implementing
regulations, the lessee may preserve his conversion right under
such lease for a period ending six months after the issuance of
implementing regulations by filing with the Secretary, before
the expiration of the lease, a notice of intent to file an
application for conversion. Upon submission of a complete plan
of operations in substantial compliance with the regulations
promulgated by the Secretary for the filing of such plans, the
Secretary shall suspend the running of the term of any oil and
gas lease proposed for conversion until the plan is finally
approved or disapproved. The Secretary shall act upon a
proposed plan of operations within fifteen months of its
submittal.
(C) When an existing oil and gas lease is converted to a
combined hydrocarbon lease, the royalty shall be that provided
for in the original oil and gas lease and for a converted
mining claim, 12\1/2\ per centum in amount or value of
production removed or sold from the lease.
(2) Except as provided in this section, nothing in the
Combined Hydrocarbon Leasing Act of 1981 shall be construed to
diminish or increase the rights of any lessee under any oil and
gas lease issued prior to the enactment of such Act.
(o) Certain Outstanding Oil and Gas.--(1) Prior to the
commencement of surface-disturbing activities relating to the
development of oil and gas deposits on lands described under
paragraph (5), the Secretary of Agriculture shall require,
pursuant to regulations promulgated by the Secretary, that such
activities be subject to terms and conditions as provided under
paragraph (2).
(2) The terms and conditions referred to in paragraph (1)
shall require that reasonable advance notice be furnished to
the Secretary of Agriculture at least 60 days prior to the
commencement of surface disturbing activities.
(3) Advance notice under paragraph (2) shall include each of
the following items of information:
(A) A designated field representative.
(B) A map showing the location and dimensions of all
improvements, including but not limited to, well sites
and road and pipeline accesses.
(C) A plan of operations, of an interim character if
necessary, setting forth a schedule for construction
and drilling.
(D) A plan of erosion and sedimentation control.
(E) Proof of ownership of mineral title.
Nothing in this subsection shall be construed to affect any
authority of the State in which the lands concerned are located
to impose any requirements with respect to such oil and gas
operations.
(4) The person proposing to develop oil and gas deposits on
lands described under paragraph (5) shall either--
(A) permit the Secretary to market merchantable
timber owned by the United States on lands subject to
such activities; or
(B) arrange to purchase merchantable timber on lands
subject to such surface disturbing activities from the
Secretary of Agriculture, or otherwise arrange for the
disposition of such merchantable timber, upon such
terms and upon such advance notice of the items
referred to in subparagraphs (A) through (E) of
paragraph (3) as the Secretary may accept.
(5)(A) The lands referred to in this subsection are those
lands referenced in subparagraph (B) which are under the
administration of the Secretary of Agriculture where the United
States acquired an interest in such lands pursuant to the Act
of March 1, 1911 (36 Stat. 961 and following), but does not
have an interest in oil and gas deposits that may be present
under such lands. This subsection does not apply to any such
lands where, under the provisions of its acquisition of an
interest in the lands, the United States is to acquire any oil
and gas deposits that may be present under such lands in the
future but such interest has not yet vested with the United
States.
(B) This subsection shall only apply in the Allegheny
National Forest.
(p) Deadlines for Consideration of Applications for
Permits.--
(1) In general.--Not later than 10 days after the
date on which the Secretary receives an application for
any permit to drill, the Secretary shall--
(A) notify the applicant that the application
is complete; or
(B) notify the applicant that information is
missing and specify any information that is
required to be submitted for the application to
be complete.
(2) Issuance or deferral.--Not later than 30 days
after the applicant for a permit has submitted a
complete application, the Secretary shall--
(A) issue the permit, if the requirements
under the National Environmental Policy Act of
1969 and other applicable law have been
completed within such timeframe; or
(B) defer the decision on the permit and
provide to the applicant a notice--
(i) that specifies any steps that the
applicant could take for the permit to
be issued; and
(ii) a list of actions that need to
be taken by the agency to complete
compliance with applicable law together
with timelines and deadlines for
completing such actions.
(3) Requirements for deferred applications.--
(A) In general.--If the Secretary provides
notice under paragraph (2)(B), the applicant
shall have a period of 2 years from the date of
receipt of the notice in which to complete all
requirements specified by the Secretary,
including providing information needed for
compliance with the National Environmental
Policy Act of 1969.
(B) Issuance of decision on permit.--If the
applicant completes the requirements within the
period specified in subparagraph (A), the
Secretary shall issue a decision on the permit
not later than 10 days after the date of
completion of the requirements described in
subparagraph (A), unless compliance with the
National Environmental Policy Act of 1969 and
other applicable law has not been completed
within such timeframe.
(C) Denial of permit.--If the applicant does
not complete the requirements within the period
specified in subparagraph (A) or if the
applicant does not comply with applicable law,
the Secretary shall deny the permit.
* * * * * * *
Sec. 35. (a) All money received from sales, bonuses,
royalties including interest charges collected under the
Federal Oil and Gas Royalty Management Act of 1982, and rentals
of the public lands under the provisions of this Act and the
Geothermal Steam Act of 1970, [shall be paid into the Treasury]
shall, except as provided in subsection (e), be paid into the
Treasury of the United States; 50 per centum thereof shall be
paid by the Secretary of the Treasury to the State other than
Alaska within the boundaries of which the leased lands or
deposits are or were located; said moneys paid to any of such
States on or after January 1, 1976, to be used by such State
and its subdivisions, as the legislature of the State may
direct giving priority to those subdivisions of the State
socially or economically impacted by development of minerals
leased under this Act, for (i) planning, (ii) construction and
maintenance of public facilities, and (iii) provision of public
service; and excepting those from Alaska, 40 per centum thereof
shall be paid into, reserved, appropriated, as part of the
reclamation fund created by the Act of Congress known as the
Reclamation Act, approved June 17, 1902, and of those from
Alaska as soon as practicable after March 31 and September 30
of each year, 90 per centum thereof shall be paid to the State
of Alaska for disposition by the legislature thereof: Provided,
That all moneys which may accrue to the United States under the
provisions of this Act and the Geothermal Steam Act of 1970
from lands within the naval petroleum reserves shall be
deposited in the Treasury as ``miscellaneous receipts'', as
provided by the Act of June 4, 1920 (41 Stat. 813), as amended
June 30, 1938 (52 Stat. 1252). All moneys received under the
provisions of this Act and the Geothermal Steam Act of 1970 not
otherwise disposed of by this section shall be credited to
miscellaneous receipts. Payments to States under this section
with respect to any moneys received by the United States, shall
be made not later than the last business day of the month in
which such moneys are warranted by the United States Treasury
to the Secretary as having been received, except for any
portion of such moneys which is under challenge and placed in a
suspense account pending resolution of a dispute. Such warrants
shall be issued by the United States Treasury not later than 10
days after receipt of such moneys by the Treasury. Moneys
placed in a suspense account which are determined to be payable
to a State shall be made not later than the last business day
of the month in which such dispute is resolved. Any such amount
placed in a suspense account pending resolution shall bear
interest until the dispute is resolved.
(b) Deduction for Administrative Costs.--[In determining]
Except with respect to States for which the Secretary has
delegated any authority under section 44(a)(1), in determining
the amount of payments to the States under this section,
beginning in fiscal year 2014 and for each year thereafter, the
amount of such payments shall be reduced by 2 percent for any
administrative or other costs incurred by the United States in
carrying out the program authorized by this Act, and the amount
of such reduction shall be deposited to miscellaneous receipts
of the Treasury.
(c)(1) Notwithstanding the first sentence of subsection (a)
and except as provided in subsection (e), any rentals received
from leases in any State (other than the State of Alaska) on or
after the date of enactment of this subsection shall be
deposited in the Treasury, to be allocated in accordance with
paragraph (2).
(2) Of the amounts deposited in the Treasury under paragraph
(1)--
(A) 50 percent shall be paid by the Secretary of the
Treasury to the State within the boundaries of which
the leased land is located or the deposits were
derived; and
(B) 50 percent shall be deposited in a special fund
in the Treasury, to be known as the ``BLM Permit
Processing Improvement Fund'' (referred to in this
subsection as the ``Fund'').
(3) Use of fund.--
(A) In general.--The Fund shall be available
to the Secretary of the Interior for
expenditure, without further appropriation and
without fiscal year limitation, for the
coordination and processing of oil and gas use
authorizations on onshore Federal and Indian
trust mineral estate land.
(B) Accounts.--The Secretary shall divide the
Fund into--
(i) a Rental Account (referred to in
this subsection as the ``Rental
Account'') comprised of rental receipts
collected under this section; and
(ii) a Fee Account (referred to in
this subsection as the ``Fee Account'')
comprised of fees collected under
subsection (d).
(4) Rental account.--
(A) In general.--The Secretary shall use the
Rental Account for--
(i) the coordination and processing
of oil and gas use authorizations on
onshore Federal and Indian trust
mineral estate land under the
jurisdiction of the Project offices
identified under section 365(d) of the
Energy Policy Act of 2005 (42 U.S.C.
15924(d)); and
(ii) training programs for
development of expertise related to
coordinating and processing oil and gas
use authorizations.
(B) Allocation.--In determining the
allocation of the Rental Account among Project
offices for a fiscal year, the Secretary shall
consider--
(i) the number of applications for
permit to drill received in a Project
office during the previous fiscal year;
(ii) the backlog of applications
described in clause (i) in a Project
office;
(iii) publicly available industry
forecasts for development of oil and
gas resources under the jurisdiction of
a Project office; and
(iv) any opportunities for
partnership with local industry
organizations and educational
institutions in developing training
programs to facilitate the coordination
and processing of oil and gas use
authorizations.
(5) Fee account.--
(A) In general.--The Secretary shall use the
Fee Account for the coordination and processing
of oil and gas use authorizations on onshore
Federal and Indian trust mineral estate land.
(B) Allocation.--The Secretary shall transfer
not less than 75 percent of the revenues
collected by an office for the processing of
applications for permits to the State office of
the State in which the fees were collected.
(d), BLM Oil and Gas Permit Processing Fee.--
(1) In general.--Notwithstanding any other provision
of law, for each of fiscal years 2016 through 2026, the
Secretary, acting through the Director of the Bureau of
Land Management, shall collect a fee for each new
application for a permit to drill that is submitted to
the Secretary.
(2) Amount.--The amount of the fee shall be $9,500
for each new application, as indexed for United States
dollar inflation from October 1, 2015 (as measured by
the Consumer Price Index).
(3) Use.--Of the fees collected under this subsection
for a fiscal year, the Secretary shall transfer--
(A) for each of fiscal years 2016 through
2019--
(i) 15 percent to the field offices
that collected the fees and used to
process protests, leases, and permits
under this Act, subject to
appropriation; and
(ii) 85 percent to the BLM Permit
Processing Improvement Fund established
under subsection (c)(2)(B) (referred to
in this subsection as the ``Fund'');
and
(B) for each of fiscal years 2020 through
2026, all of the fees to the Fund.
(4) Additional costs.--During each of fiscal years of
2016 through 2026, the Secretary shall not implement a
rulemaking that would enable an increase in fees to
recover additional costs related to processing
applications for permits to drill.
(e) Conveyance to Certain States of Property Interest in
State Share.--
(1) In general.--Notwithstanding any other provision
of law, on request of a State and in lieu of any
payments to the State under subsection (a), the
Secretary of the Interior shall convey to the State all
right, title, and interest in and to the percentage
specified in that subsection for that State that would
otherwise be required to be paid into the Treasury
under that subsection.
(2) Amount.--Notwithstanding any other provision of
law, after a conveyance to a State under paragraph (1),
any person shall pay directly to the State any amount
owed by the person for which the right, title, and
interest has been conveyed to the State under this
subsection.
(3) Notice.--The Secretary of the Interior shall
promptly provide to each holder of a lease of public
land to which subsection (a) applies that is located in
a State to which right, title, and interest is conveyed
under this subsection notice that--
(A) the Secretary of the Interior has
conveyed to the State all right, title, and
interest in and to the amounts referred to in
paragraph (1); and
(B) the leaseholder is required to pay the
amounts directly to the State.
(4) Report.--A State that has received a conveyance
under this subsection shall report monthly to the
Office of Natural Resources Revenue of the Department
of the Interior the amount paid to such State pursuant
to this subsection.
(5) Application with respect to fogrma.--With respect
to the interest conveyed to a State under this
subsection from sales, bonuses, royalties (including
interest charges), and rentals collected under the
Federal Oil and Gas Royalty Management Act of 1983 (30
U.S.C. 1701 et seq.), this subsection shall only apply
with respect to States for which the Secretary has
delegated any authority under section 44(a)(1).
* * * * * * *
SEC. 43. LANDS NOT SUBJECTED TO OIL AND GAS LEASING.
(a) Prohibition.--The Secretary shall not issue any lease
under this Act or under the Geothermal Steam Act of 1970 on any
of the following Federal lands:
(1) Lands recommended for wilderness allocation by
the surface managing agency.
(2) Lands within Bureau of Land Management wilderness
study areas.
(3) Lands designated by Congress as wilderness study
areas, except where oil and gas leasing is specifically
allowed to continue by the statute designating the
study area.
(4) Lands within areas allocated for wilderness or
further planning in Executive Communication 1504,
Ninety-Sixth Congress (House Document numbered 96-119),
unless such lands are allocated to uses other than
wilderness by a land and resource management plan or
have been released to uses other than wilderness by an
act of Congress.
(b) Exploration.--In the case of any area of National Forest
or public lands subject to this section, nothing in this
section shall affect any authority of the Secretary of the
Interior (or for National Forest Lands reserved from the public
domain, the Secretary of Agriculture) to issue permits for
exploration for oil and gas, coal, oil shale, phosphate,
potassium, sulphur, gilsonite or geothermal resources by means
not requiring construction of roads or improvement of existing
roads if such activity is conducted in a manner compatible with
the preservation of the wilderness environment.
SEC. 44. COOPERATIVE FEDERALISM IN OIL AND GAS PERMITTING ON AVAILABLE
FEDERAL LAND.
(a) Authorizations.--
(1) In general.--Upon receipt of an application under
subsection (b), the Secretary may delegate to a State
exclusive authority--
(A) to issue an APD on available Federal
land; or
(B) to approve drilling plans on available
Federal land.
(2) Sundry notices.--Any authorization under
paragraph (1) may, upon the request of the State,
include authority to issue sundry notices.
(3) Inspection and enforcement.--Any authorization
under paragraph (1) may, upon the request of the State,
include authorization to inspect and enforce an APD or
drilling plan, as applicable. An authorization under
paragraph (1)(A) shall not affect the ability of the
Secretary to collect inspection fees under section
108(d) of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1718(d)).
(b) State Application Process.--
(1) Submission of application.--A State may submit an
application under subparagraph (A) or (B) of subsection
(a)(1) to the Secretary at such time and in such manner
as the Secretary may require.
(2) Content of application.--An application submitted
under this subsection shall include--
(A) a description of the State program that
the State proposes to administer under State
law; and
(B) a statement from the Governor or attorney
general of such State that the laws of such
State provide adequate authority to carry out
the State program.
(3) Deadline for approval or disapproval.--Not later
than 180 days after the date of receipt of an
application under this subsection, the Secretary shall
approve or disapprove such application.
(4) Criteria for approval.--The Secretary may approve
an application received under this subsection only if
the Secretary has--
(A) determined that the State applicant would
be at least as effective as the Secretary in
issuing APDs or in approving drilling plans, as
applicable;
(B) determined that the State program of the
State applicant--
(i) complies with this Act; and
(ii) provides for the termination or
modification of an issued APD or
approved drilling plan, as applicable,
for cause, including for--
(I) the violation of any
condition of the issued APD or
approved drilling plan;
(II) obtaining the issued APD
or approved drilling plan by
misrepresentation; or
(III) failure to fully
disclose in the application all
relevant facts;
(C) determined that the State applicant has
sufficient administrative and technical
personnel and sufficient funding to carry out
the State program;
(D) provided notice to the public, solicited
public comment, and held a public hearing
within the State;
(E) determined that approval of the
application would not result in decreased
royalty payments owed to the United States
under section 35(a), except as provided in
subsection (e) of that section; and
(F) in the case of a State applicant seeking
authority under subsection (a)(3) to inspect
and enforce APDs or drilling plans, as
applicable, entered into a memorandum of
understanding with a State applicant that
delineates the Federal and State
responsibilities with respect to such
inspection and enforcement.
(5) Disapproval.--If the Secretary disapproves an
application submitted under this subsection, then the
Secretary shall--
(A) notify, in writing, the State applicant
of the reason for the disapproval and any
revisions or modifications necessary to obtain
approval; and
(B) provide any additional information, data,
or analysis upon which the disapproval is
based.
(6) Resubmittal of application.--A State may resubmit
an application under this subsection at any time.
(7) State memorandum of understanding.--Before a
State submits an application under this subsection, the
Secretary may, at the request of a State, enter into a
memorandum of understanding with the State regarding
the proposed State program--
(A) to delineate the Federal and State
responsibilities for oil and gas regulations;
(B) to provide technical assistance; and
(C) to share best management practices.
(c) Administrative Fees for APDs.--
(1) In general.--A State for which authority has been
delegated under subsection (a)(1)(A) may collect a fee
for each application for an APD that is submitted to
the State.
(2) No collection of fee by secretary.--The Secretary
may not collect a fee from the applicant or from the
State for an application for an APD that is submitted
to a State for which authority has been delegated under
subsection (a)(1)(A).
(3) Fee amount.--The fee collected under paragraph
(1) shall be less than or equal to the amount of the
fee collected by the Secretary under section
35(d)(2)from States for which authority has not been
delegated under subsection (a)(1)(A).
(4) Use.--A State shall use 100 percent of the fees
collected under this subsection for the administration
of the approved State program of the State.
(d) Voluntary Termination of Authority.--A State may
voluntarily terminate any authority delegated to such State
under subsection (a) upon providing written notice to the
Secretary 60 days in advance. Upon expiration of such 60-day
period, the Secretary shall resume any activities for which
authority was delegated to the State under subsection (a).
(e) Appeal of Denial of Application for APD or Application
for Approval of Drilling Plan.--
(1) In general.--If a State for which the Secretary
has delegated authority under subsection (a)(1) denies
an application for an APD or an application for
approval of a drilling plan, the applicant may appeal
such decision to the Department of the Interior Office
of Hearings and Appeals.
(2) Fee allowed.--The Secretary may charge the
applicant a fee for the appeal referred to in paragraph
(1).
(f) Federal Administration of State Program.--
(1) Notification.--If the Secretary has reason to
believe that a State is not administering or enforcing
an approved State program, the Secretary shall notify
the relevant State regulatory authority of any possible
deficiencies.
(2) State response.--Not later than 30 days after the
date on which a State receives notification of a
possible deficiency under paragraph (1), the State
shall--
(A) take appropriate action to correct the
possible deficiency; and
(B) notify the Secretary of the action in
writing.
(3) Determination.--
(A) In general.--On expiration of the 30-day
period referred to in paragraph (2), if the
Secretary determines that a violation of all or
any part of an approved State program has
resulted from a failure of the State to
administer or enforce the approved State
program of the State or that the State has not
demonstrated its capability and intent to
administer or enforce such a program, the
Secretary shall issue public notice of such a
determination.
(B) Appeal.--A State may appeal the
determination of the Secretary under
subparagraph (A) in the applicable United
States District Court. The Secretary may not
resume activities under paragraph (4) pending
the resolution of the appeal.
(4) Resumption by secretary.--If the Secretary has
made a determination under paragraph (3), the Secretary
shall resume any activities for which authority was
delegated to the State during the period--
(A) beginning on the date on which the
Secretary issues the public notice under
paragraph (3); and
(B) ending on the date on which the Secretary
determines that the State will administer or
enforce, as applicable, the approved State
program of the State.
(5) Standing.--States with approved regulatory
programs shall have standing to sue the Secretary for
any action taken under this subsection.
(g) Definitions.--In this section:
(1) Available federal land.--The term ``available
Federal land'' means any Federal land that--
(A) is located within the boundaries of a
State;
(B) is not held by the United States in trust
for the benefit of a federally recognized
Indian Tribe or a member of such an Indian
Tribe;
(C) is not a unit of the National Park
System;
(D) is not a unit of the National Wildlife
Refuge System, except for the portion of such
unit for which oil and gas drilling is allowed
under law;
(E) is not a congressionally approved
wilderness area under the Wilderness Act (16
U.S.C. 1131 et seq.); and
(F) has been identified as land available for
lease or has been leased for the exploration,
development, and production of oil and gas--
(i) by the Bureau of Land Management
under--
(I) a resource management
plan under the process provided
for in the Federal Land Policy
and Management Act of 1976 (43
U.S.C. 1701 et seq.); or
(II) an integrated activity
plan with respect to the
National Petroleum Reserve in
Alaska; or
(ii) by the Forest Service under a
National Forest management plan under
the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16
U.S.C. 1600 et seq.).
(2) Drilling plan.--The term ``drilling plan'' means
a plan described under section 3162.3-1(e) of title 43,
Code of Federal Regulations (or successor regulation).
(3) APD.--The term ``APD'' means a permit--
(A) that grants authority to drill for oil
and gas; and
(B) for which an application has been
received that contains--
(i) a drilling plan;
(ii) a surface use plan of operations
described under section 3162.3-1(f) of
title 43, Code of Federal Regulations
(or successor regulation);
(iii) evidence of bond coverage; and
(iv) such other information as may be
required by applicable orders and
notices.
(4) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.
(5) State.--The term ``State'' means each of the
several States.
(6) State applicant.--The term ``State applicant''
means a State that has submitted an application under
subsection (b).
(7) State program.--The term ``State program'' means
a program that provides for a State to--
(A) issue APDs or approve drilling plans, as
applicable, on available Federal land; and
(B) impose sanctions for violations of State
laws, regulations, or any condition of an
issued APD or approved drilling plan, as
applicable.
(8) Sundry notice.--The term ``sundry notice'' means
a written request--
(A) to perform work not covered under an APD
or drilling plan; or
(B) for a change to operations covered under
a an APD or drilling plan.
SEC. 45. PERMITTING ON NON-FEDERAL SURFACE ESTATE.
(a) Permits Not Required for Certain Activities on Non-
Federal Surface Estate.--The following activities conducted on
non-Federal surface estate shall not require a Bureau of Land
Management drilling permit under the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.) or
section 3164.1 of title 43, Code of Federal Regulations (or
successor regulation) and shall not be considered a major
Federal action under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.):
(1) Oil and gas operations for the exploration for or
development or production of oil and gas in a lease or
unit or communitization agreement in which the United
States holds a mineral ownership interest of 50 percent
or less.
(2) Oil and gas operations that may have potential
drainage impacts, as determined by the Bureau of Land
Management, on oil and gas in which the United States
holds a mineral ownership interest.
(b) DOI Notification.--The Secretary of the Interior shall
provide to each State a map or list indicating Federal mineral
ownership within that State.
(c) State Notification.--Each State that has issued an APD or
approved a drilling plan that would impact or extract oil and
gas owned by the United States shall notify the Secretary of
the Interior within 7 days of issuing an APD.
(d) Royalties.--Nothing in this section shall affect the
amount of royalties due to the United States under this Act
from the production of oil and gas or alter the Secretary's
authority to conduct audits and collect civil penalties
pursuant to the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1711 et seq.).
(e) Application.--This section shall only apply with respect
to States for which the Secretary has delegated any authority
under section 44(a)(1).
SEC. 46. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC FRACTURING
REGULATION.
(a) In General.--The Secretary of the Interior shall not
enforce any Federal regulation, guidance, or permit requirement
regarding hydraulic fracturing relating to oil, gas, or
geothermal production activities on or under any land in any
State that has regulations, guidance, or permit requirements
for that activity.
(b) State Authority.--The Secretary of the Interior shall
defer to State regulations, guidance, and permit requirements
for all activities regarding hydraulic fracturing relating to
oil, gas, or geothermal production activities on Federal land.
(c) Transparency of State Regulations.--
(1) In general.--Each State shall submit to the
Bureau of Land Management a copy of the regulations of
such State that apply to hydraulic fracturing
operations on Federal land, including those that
require disclosure of chemicals used in hydraulic
fracturing operations.
(2) Availability.--The Secretary of the Interior
shall make available to the public on the website of
the Secretary the regulations submitted under paragraph
(1).
(d) Tribal Authority on Trust Land.--The Secretary of the
Interior shall not enforce any Federal regulation, guidance, or
permit requirement with respect to hydraulic fracturing on any
land held in trust or restricted status for the benefit of a
federally recognized Indian Tribe or a member of such an Indian
Tribe, except with the express consent of the beneficiary on
whose behalf such land is held in trust or restricted status.
(e) Hydraulic Fracturing Defined.--In this section the term
``hydraulic fracturing'' means the process of creating small
cracks, or fractures, in underground geological formations for
well stimulation purposes of bringing hydrocarbons into the
wellbore and to the surface for capture.
SEC. [44.] 47. SHORT TITLE.
This Act may be cited as the ``Mineral Leasing Act''.
----------
FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT OF 1982
* * * * * * *
TITLE I--FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT
* * * * * * *
inspections
Sec. 108. (a)(1) On any lease site on Federal or Indian
lands, any authorized and properly identified representative of
the Secretary may stop and inspect any motor vehicle that he
has probable cause to believe is carrying oil from a lease site
on Federal or Indian lands or allocated to such a lease site,
for the purpose of determining whether the driver of such
vehicle has documentation related to such oil as required by
law.
(2) Any authorized and properly identified representative of
the Secretary, accompanied by any appropriate law enforcement
officer, or an appropriate law enforcement officer alone, may
stop and inspect any motor vehicle which is not on a lease site
if he has probable cause to believe the vehicle is carrying oil
from a lease site on Federal or Indian lands or allocated to
such a lease site. Such inspection shall be for the purpose of
determining whether the driver of such vehicle has the
documentation required by law.
(b) Authorized and properly identified representatives of the
Secretary may without advance notice, enter upon, travel across
and inspect lease sites on Federal or Indian lands and may
obtain from the operator immediate access to secured facilities
on such lease sites, for the purpose of making any inspection
or investigation for determining whether there is compliance
with the requirements of the mineral leasing laws and this Act.
The Secretary shall develop guidelines setting forth the
coverage and the frequency of such inspections.
(c) For the purpose of making any inspection or investigation
under this Act, the Secretary shall have the same right to
enter upon or travel across any lease site as the lessee or
operator has acquired by purchase, condemnation, or otherwise.
(d) Inspection Fees for Certain States.--
(1) In general.--The Secretary shall conduct
inspections of operations under each oil and gas lease.
The Secretary shall collect annual nonrefundable
inspection fees in the amount specified in paragraph
(2), from each designated operator under each oil and
gas lease on Federal or Indian land that is subject to
inspection under subsection (b) and that is located in
a State for which the Secretary has delegated authority
under section 44(a)(1)(A) of the Mineral Leasing Act.
(2) Amount.--The amount of the fees collected under
paragraph (1) shall be--
(A) $700 for each lease or unit or
communitization agreement with no active or
inactive wells, but with surface use,
disturbance or reclamation;
(B) $1,225 for each lease or unit or
communitization agreement with 1 to 10 wells,
with any combination of active or inactive
wells;
(C) $4,900 for each lease or unit or
communitization agreement with 11 to 50 wells,
with any combination of active or inactive
wells; and
(D) $9,800 for each lease or unit or
communitization agreement with more than 50
wells, with any combination of active or
inactive wells.
(3) Onshore energy safety fund.--There is established
in the Treasury a fund, to be known as the ``Onshore
Energy Safety Fund'' (referred to in this subsection as
the ``Fund''), into which shall be deposited all
amounts collected as fees under paragraph (1) and which
shall be available as provided under paragraph (4).
(4) Availability of fees.--Notwithstanding section
3302 of title 31, United States Code, all amounts
deposited in the Fund--
(A) shall be credited as offsetting
collections;
(B) shall be available for expenditure for
purposes of carrying out inspections of onshore
oil and gas operations in those States for
which the Secretary has delegated authority
under section 44(a)(1)(A) of the Mineral
Leasing Act;
(C) shall be available only to the extent
provided for in advance in an appropriations
Act; and
(D) shall remain available until expended.
(5) Payment due date.--The Secretary shall require
payment of any fee assessed under this subsection
within 30 days after the Secretary provides notice of
the assessment of the fee after the completion of an
inspection.
(6) Penalty.--If a designated operator assessed a fee
under this subsection fails to pay the full amount of
the fee as prescribed in this subsection, the Secretary
may, in addition to utilizing any other applicable
enforcement authority, assess civil penalties against
the operator under section 109 in the same manner as if
this section were a mineral leasing law.
(7) Notification to state of noncompliance.--If, on
the basis of any inspection under subsection (b), the
Secretary determines that an operator is in
noncompliance with the requirements of mineral leasing
laws and this chapter, the Secretary shall notify the
State of such noncompliance immediately.
* * * * * * *
TITLE II--STATES AND INDIAN TRIBES
* * * * * * *
SEC. 205. DELEGATION OF ROYALTY COLLECTIONS AND RELATED ACTIVITIES.
(a) Upon written request of any State, the Secretary
is authorized to delegate, in accordance with the
provisions of this section, all or part of the
authorities and responsibilities of the Secretary under
this Act to:
(1) conduct inspections, audits, and
investigations;
(2) receive and process production and
financial reports;
(3) correct erroneous report data;
(4) perform automated verification; and
(5) issue demands, subpoenas, and orders to
perform restructured accounting, for royalty
management enforcement purposes,
to any State with respect to all Federal land within the State.
(b) After notice and opportunity for a hearing, the Secretary
is authorized to delegate such authorities and responsibilities
granted under this section as the State has requested, if the
Secretary finds that--
(1) it is likely that the State will provide adequate
resources to achieve the purposes of this Act;
(2) the State has demonstrated that it will
effectively and faithfully administer the rules and
regulations of the Secretary under this Act in
accordance with the requirements of subsections (c) and
(d) of this section;
(3) such delegation will not create an unreasonable
burden on any lessee;
(4) the State agrees to adopt standardized reporting
procedures prescribed by the Secretary for royalty and
production accounting purposes, unless the State and
all affected parties (including the Secretary)
otherwise agree;
(5) the State agrees to follow and adhere to
regulations and guidelines issued by the Secretary
pursuant to the mineral leasing laws regarding
valuation of production; and
(6) where necessary for a State to have authority to
carry out and enforce a delegated activity, the State
agrees to enact such laws and promulgate such
regulations as are consistent with relevant Federal
laws and regulations
with respect to the Federal lands within the State.
(c) After notice and opportunity for hearing, the Secretary
shall issue a ruling as to the consistency of a State's
proposal with the provisions of this section and regulations
under subsection (d) within 90 days after submission of such
proposal. In any unfavorable ruling, the Secretary shall set
forth the reasons therefor and state whether the Secretary will
agree to delegate to the State if the State meets the
conditions set forth in such ruling.
(d) After consultation with State authorities, the Secretary
shall by rule promulgate, within 12 months after the date of
enactment of this section, standards and regulations pertaining
to the authorities and responsibilities to be delegated under
subsection (a), including standards and regulations pertaining
to--
(1) audits to be performed;
(2) records and accounts to be maintained;
(3) reporting procedures to be required by States
under this section;
(4) receipt and processing of production and
financial reports;
(5) correction of erroneous report data;
(6) performance of automated verification;
(7) issuance of standards and guidelines in order to
avoid duplication of effort;
(8) transmission of report data to the Secretary; and
(9) issuance of demands, subpoenas, and orders to
perform restructured accounting, for royalty management
enforcement purposes.
Such standards and regulations shall be designed to provide
reasonable assurance that a uniform and effective royalty
management system will prevail among the States. The records
and accounts under paragraph (2) shall be sufficient to allow
the Secretary to monitor the performance of any State under
this section.
(e) If, after notice and opportunity for a hearing, the
Secretary finds that any State to which any authority or
responsibility of the Secretary has been delegated under this
section is in violation of any requirement of this section or
any rule thereunder, or that an affirmative finding by the
Secretary under subsection (b) can no longer be made, the
Secretary may revoke such delegation. If, after providing
written notice to a delegated State and a reasonable
opportunity to take corrective action requested by the
Secretary, the Secretary determines that the State has failed
to issue a demand or order to a Federal lessee within the
State, that such failure may result in an underpayment of an
obligation due the United States by such lessee, and that such
underpayment may be uncollected without Secretarial
intervention, the Secretary may issue such demand or order in
accordance with the provisions of this Act prior to or absent
the withdrawal of delegated authority.
(f) Subject to appropriations, the Secretary shall compensate
any State for those costs which may be necessary to carry out
the delegated activities under this Section. Payment shall be
made no less than every quarter during the fiscal year.
Compensation to a State may not exceed the Secretary's
reasonably anticipated expenditure for performance of such
delegated activities by the Secretary. Such costs shall be
allocable for the purposes of section 35(b) of the Act entitled
``An act to promote the mining of coal, phosphate, oil, oil
shale, gas and sodium on the public domain'', approved February
25, 1920 (commonly known as the Mineral Leasing Act) (30 U.S.C.
191 (b)) to the administration and enforcement of laws
providing for the leasing of any onshore lands or interests in
land owned by the United States. Any further allocation of
costs under section 35(b) made by the Secretary for oil and gas
activities, other than those costs to compensate States for
delegated activities under this Act, shall be only those costs
associated with onshore oil and gas activities and may not
include any duplication of costs allocated pursuant to the
previous sentence. Nothing in this section affects the
Secretary's authority to make allocations under section 35(b)
for non-oil and gas mineral activities. [All] Subject to
subsection (e) of section 35 of the Mineral Leasing Act (30
U.S.C. 191), all moneys received from sales, bonuses, rentals,
royalties, assessments and interest, including money claimed to
be due and owing pursuant to a delegation under this section,
shall be payable and paid to the Treasury of the United States.
(g) Any action of the Secretary to approve or disapprove a
proposal submitted by a State under this section shall be
subject to judicial review in the United States district court
which includes the capital of the State submitting the
proposal.
(h) Any State operating pursuant to a delegation existing on
the date of enactment of this Act may continue to operate under
the terms and conditions of the delegation, except to the
extent that a revision of the existing agreement is adopted
pursuant to this section.
* * * * * * *
----------
ENERGY POLICY ACT OF 2005
* * * * * * *
TITLE III--OIL AND GAS
* * * * * * *
Subtitle G--Miscellaneous
* * * * * * *
SEC. 390. NEPA REVIEW.
(a) NEPA Review.--[Action by the Secretary] The Secretary of
the Interior in managing the public lands, or the Secretary of
Agriculture in managing National Forest System Lands, [with
respect to any of the activities described in subsection (b)
shall be subject to a rebuttable presumption that the use of]
shall apply a categorical exclusion under the National
Environmental Policy Act of 1969 (NEPA) [would apply if the
activity] for each action described in subsection (b) if the
action is conducted pursuant to the Mineral Leasing Act for the
purpose of exploration or development of oil or gas.
(b) Activities Described.--The activities referred to in
subsection (a) are the following:
(1) Individual surface disturbances of less than 5
acres so long as the total surface disturbance on the
lease is not greater than 150 acres and site-specific
analysis in a document prepared pursuant to NEPA has
been previously completed.
(2) Drilling an oil or gas well at a location or well
pad site at which drilling has occurred previously
within 5 years prior to the date of spudding the well.
(3) Drilling an oil or gas well within a developed
field for which an approved land use plan or any
environmental document prepared pursuant to NEPA
analyzed such drilling as a reasonably foreseeable
activity, so long as such plan or document was approved
within 5 years prior to the date of spudding the well.
(4) Placement of a pipeline in an approved right-of-
way corridor, so long as the corridor was approved
within 5 years prior to the date of placement of the
pipeline.
(5) Maintenance of a minor activity, other than any
construction or major renovation or a building or
facility.
* * * * * * *
----------
MIGRATORY BIRD TREATY ACT
* * * * * * *
Sec. 6. (a) Except as otherwise provided in this section, any
person, association, partnership, or corporation who shall
violate any provisions of said conventions or of this Act, or
who shall violate or fail to comply with any regulation made
pursuant to this Act shall be deemed guilty of a misdemeanor
and upon conviction thereof shall be fined not more than
$15,000 or be imprisoned not more than six months, or both.
(b) Whoever, in violation of this Act, shall knowingly--
(1) take by any manner whatsoever any migratory bird
with intent to sell, offer to sell, barter or offer to
barter such bird, or
(2) sell, offer for sale, barter or offer to barter,
any migratory bird shall be guilty of a felony and
shall be fined not more than $2,000 or imprisoned not
more than two years, or both.
(c) Whoever violates section 3(b)(2) shall be fined under
title 18, United States Code, imprisoned not more than 1 year,
or both.
(d) All guns, traps, nets and other equipment, vessels,
vehicles, and other means of transportation used by any person
when engaged in pursuing, hunting, taking, trapping, ensnaring,
capturing, killing, or attempting to take, capture, or kill any
migratory bird in violation of this Act with the intent to
offer for sale, or sell, or offer for barter, or barter such
bird in violation of this Act shall be forfeited to the United
States and may be seized and held pending the prosecution of
any person arrested for violating this Act and upon conviction
for such violation, such forfeiture shall be adjudicated as a
penalty in addition to any other provided for violation of this
Act. Such forfeited property shall be disposed of and accounted
for by, and under the authority of, the Secretary of the
Interior.
(e) This Act shall not be construed to prohibit any activity
proscribed by section 2 of this Act that is accidental or
incidental to the presence or operation of an otherwise lawful
activity.
* * * * * * *
DISSENTING VIEWS
H.R. 4239 is another attempt by the Majority to prioritize
drilling for oil and gas over all other uses of America's
public lands, and a back-door method to hand over the
management of those public lands to the states. Despite the
Majority's claims, it would do nothing to increase America's
energy independence or energy security, but it would overturn
longstanding principles of public land and forest management,
reduce opportunities for public and tribal input into land
management decisions, harm endangered species and marine
mammals, and encourage offshore drilling in the Arctic Ocean
while at the same time making it more dangerous.
Title I of the bill, the ASTRO Act, would share federal
revenues from offshore drilling with Alaska and certain
Atlantic states, a giveaway of federal funds in a blatant
attempt to entice states on the Atlantic seaboard to support
drilling off their beaches. While the Majority uses inflated
statistics to encourage state and local officials to dream of
oil and gas windfalls, they neglect to mention the potential
devastating impacts of offshore drilling to the vibrant
tourism, recreation, and fishing industries, which generate
more than $50 billion annually in GDP and support more than 1
million direct jobs along the eastern seaboard.\1\
---------------------------------------------------------------------------
\1\National Oceanic and Atmospheric Administration (NOAA).
Economics: National Ocean Watch (ENOW) Data for 2014. Based on data
from the Bureau of Labor Statistics and the Bureau of Economic Analysis
Charleston, SC: NOAA Office for Coastal Management.
---------------------------------------------------------------------------
Section 104 would eliminate the ability of future
Presidents to use their authority under the Antiquities Act to
protect underwater resources through the creation of Marine
National Monuments, an authority first used by a Republican
President, George W. Bush. Section 107 eliminates the Arctic
Drilling Safety Rule finalized just last year, which was based
on lessons learned from Shell's bungled attempts to drill in
the Arctic Ocean in 2012 and 2015. The Arctic is a uniquely
harsh and uncompromising environment, and operating safely in
that region requires very different safety regulations than
those governing drilling in the Gulf of Mexico. This
legislation, however, eliminates any additional protections for
the Arctic, increasing the chances of a future environmental
disaster.
Section 108 creates a new system for exploration licenses
and leases for seabed mining a few miles off the coasts of U.S.
territories. The need for or impact of this section has not
been discussed in the committee at all in recent years, yet it
could vastly expand this relatively new and potentially
destructive form of resource extraction. Far more discussion is
needed before Congress gives the green-light to wholesale
mining of our territorial waters.
Section 110 would severely weaken one of our bedrock
environmental laws, the Marine Mammal Protection Act (MMPA), in
order to make it even easier to conduct destructive seismic
testing for offshore oil and gas. The MMPA has been incredibly
effective in restoring populations of seals, sea lions, whales,
dolphins, and other marine mammals whose populations were
severely depleted. This section would virtually eliminate the
ability of the National Oceanic and Atmospheric Administration
from requiring mitigation measures to protect marine mammals,
and would automatically approve permits if the agency missed
arbitrary deadlines.
Title II of the bill, the ONSHORE Act, would completely
upend decades of public land management principles on Bureau of
Land Management (BLM) and U.S. Forest Service lands. Public
lands are a public trust, owned by all Americans, and managed
in such a way as to ensure that all Americans have a say in the
management of those lands and that multiple uses are allowed.
H.R. 4239, however, would shut the public out, make oil and gas
drilling the dominant use of public lands, and hand over
control of public lands to any state that applied for it.
Giving the states permitting authority for applications for
permits to drill on federal public land, including the surface
use plan of operations, creates a number of serious negative
consequences. Because permit approval would no longer be a
federal action, requirements for the federal government under
the National Historic Preservation Act, Endangered Species Act,
and National Environmental Policy Act, along with its public
comment opportunities, would no longer apply. States aren't
required to adhere to the multiple use mandate that drives
federal land management, so states could approve wells, roads,
drill pads, waste pits, and other surface impacts without
having to consider the impacts on recreation, grazing,
conservation, or other public land uses and resources. During a
hearing on a discussion draft of the bill, the Director of the
North Dakota Industrial Commission Department of Mineral
Resources pointed out that his state does not require permit
applicants to submit a biological study, a wildlife survey, an
endangered species review, a master development plan, a
reclamation plan, a waste management plan, a surface use plan,
or a number of other items that BLM requires to ensure
compliance with federal laws, the multiple use mandate, and
approved resource management plans.
While the legislation does require that permit applicants
submit ``such other information as may be required by
applicable orders and notices,'' that clause is meaningless.
Even if state permitting authorities had the necessary
expertise to review that additional information--which they
most likely would not--they would not be required to do so. And
nothing in the bill requires states to have requirements to
allow for public review and comment of drilling permits or
plans. People would be completely shut out from decisions that
impact public lands unless they live in one of the few states
that have their own public comment requirements for oil and gas
drilling.
The entire argument for handing permitting responsibility
to the states is built on quicksand. There is no shortage of
approved federal permits: at the end of Fiscal Year 2016,
companies held 7,950 approved permits they hadn't used yet, the
highest value ever reported by BLM, while only 2,552 permits
were waiting to be processed, the lowest number in nearly a
decade. Oil production on federal land went up 78 percent from
2008 to 2015, not much different from the 88 percent increase
in total U.S. oil production in the same timeframe. In fact, in
certain states such as New Mexico, the growth in oil production
on federal lands (213 percent) significantly outpaced overall
state oil production (145 percent). While the Majority
repeatedly claims that companies are fleeing federal lands, the
data clearly shows that is not the case.
Section 205 also prohibits the federal government from
setting commonsense baseline standards for hydraulic fracturing
(or ``fracking'') on federal lands in any state that has
existing fracking regulations of their own, no matter how weak.
Forbidding federal agencies from enacting rules to protect
federal resources--in this case federal land and mineral
resources--is completely inappropriate, and is evidence of a
severe misunderstanding of how federal and state oil and gas
regulations have coexisted on public lands for nearly a
century.
At markup on the bill, Democrats offered a number of
commonsense amendments designed to protect marine mammals,
marine monuments, air quality, military training areas, and the
Eastern Gulf of Mexico. All were rejected by the Republicans.
The Majority also rejected amendments that would have simply
required additional data collection and reporting, permanently
reauthorized the Land and Water Conservation Fund, and required
climate considerations to be taken into account. Two Majority
amendments--further weakening the MMPA and the Migratory Bird
Treaty Act--were adopted, making a damaging industry giveaway
bill even worse.
For all of these reasons, we strongly oppose H.R. 4239 as
reported.
Raul M. Grijalva,
Ranking Member, Committee on
Natural Resources.
Darren Soto.
Grace F. Napolitano.
Jimmy Gomez.
Jared Huffman.
Niki Tsongas.
Donald S. Beyer, Jr.
A. Donald McEachin.
Nanette Diaz Barragan.
Alan S. Lowenthal.