[House Report 111-575]
[From the U.S. Government Publishing Office]
111th Congress Rept. 111-575
2d Session HOUSE OF REPRESENTATIVES Part 1
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CONSOLIDATED LAND, ENERGY, AND AQUATIC RESOURCES ACT OF 2010
_______
July 28, 2010.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Rahall, from the Committee on Natural Resources, submitted the
following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 3534]
The Committee on Natural Resources, to whom was referred the
bill (H.R. 3534) to provide greater efficiencies, transparency,
returns, and accountability in the administration of Federal
mineral and energy resources by consolidating administration of
various Federal energy minerals management and leasing programs
into one entity to be known as the Office of Federal Energy and
Minerals Leasing of the Department of the Interior, 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 ``Consolidated Land,
Energy, and Aquatic Resources Act of 2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIES
Sec. 101. Bureau of Energy and Resource Management.
Sec. 102. Bureau of Safety and Environmental Enforcement.
Sec. 103. Office of Natural Resources Revenue.
Sec. 104. Ethics.
Sec. 105. References.
Sec. 106. Abolishment of Minerals Management Service.
Sec. 107. Conforming amendment.
Sec. 108. Outer Continental Shelf Safety and Environmental Advisory
Board.
TITLE II--FEDERAL OIL AND GAS DEVELOPMENT
Subtitle A--Safety, Environmental, and Financial Reform of the Outer
Continental Shelf Lands Act
Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. National policy for the Outer Continental Shelf.
Sec. 204. Jurisdiction of laws on the Outer Continental Shelf.
Sec. 205. Outer Continental Shelf leasing standard.
Sec. 206. Leases, easements, and rights-of-way.
Sec. 207. Disposition of revenues.
Sec. 208. Exploration plans.
Sec. 209. Outer Continental Shelf leasing program.
Sec. 210. Environmental studies.
Sec. 211. Safety regulations.
Sec. 212. Enforcement of safety and environmental regulations.
Sec. 213. Judicial review.
Sec. 214. Remedies and penalties.
Sec. 215. Uniform planning for Outer Continental Shelf.
Sec. 216. Oil and gas information program.
Sec. 217. Limitation on royalty-in-kind program.
Sec. 218. Restrictions on employment.
Sec. 219. Repeal of royalty relief provisions.
Sec. 220. Manning and buy- and build-American requirements.
Sec. 221. National Commission on Outer Continental Shelf Oil Spill
Prevention.
Subtitle B--Safety, Environmental, and Financial Reform of the Federal
Onshore Oil and Gas Leasing Program
Sec. 231. Diligent development.
Sec. 232. Reporting requirements.
Sec. 233. Notice requirements.
Sec. 234. Oil and gas leasing system.
Sec. 235. Electronic reporting.
Sec. 236. Best management practices.
Sec. 237. Surface disturbance, reclamation.
Sec. 238. Wildlife sustainability.
Sec. 239. Online availability to the public of information relating to
oil and gas chemical use.
Sec. 240. Limitation on royalty-in-kind program.
Sec. 241. Environmental review.
Sec. 242. Federal lands uranium leasing.
Subtitle C--Royalty Relief for American Consumers
Sec. 251. Short title.
Sec. 252. Eligibility for new leases and the transfer of leases.
Sec. 253. Price thresholds for royalty suspension provisions.
TITLE III--OIL AND GAS ROYALTY REFORM
Sec. 301. Amendments to definitions.
Sec. 302. Compliance reviews.
Sec. 303. Clarification of liability for royalty payments.
Sec. 304. Required recordkeeping.
Sec. 305. Fines and penalties.
Sec. 306. Interest on overpayments.
Sec. 307. Adjustments and refunds.
Sec. 308. Conforming amendment.
Sec. 309. Obligation period.
Sec. 310. Notice regarding tolling agreements and subpoenas.
Sec. 311. Appeals and final agency action.
Sec. 312. Assessments.
Sec. 313. Collection and production accountability.
Sec. 314. Natural gas reporting.
Sec. 315. Penalty for late or incorrect reporting of data.
Sec. 316. Required recordkeeping.
Sec. 317. Shared civil penalties.
Sec. 318. Applicability to other minerals.
Sec. 319. Entitlements.
TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION AND HISTORIC
PRESERVATION FUNDS
Subtitle A--Land and Water Conservation Fund
Sec. 401. Amendments to the Land and Water Conservation Fund Act of
1965.
Sec. 402. Extension of the Land and Water Conservation Fund.
Sec. 403. Permanent funding.
Subtitle B--National Historic Preservation Fund
Sec. 411. Permanent funding.
TITLE V--ALTERNATIVE ENERGY DEVELOPMENT
Sec. 501. Commercial wind and solar leasing program.
Sec. 502. Land management.
Sec. 503. Revenues.
Sec. 504. Recordkeeping and reporting requirements.
Sec. 505. Audits.
Sec. 506. Trade secrets.
Sec. 507. Interest and substantial underreporting assessments.
Sec. 508. Indian savings provision.
Sec. 509. Transmission savings provision.
TITLE VI--COORDINATION AND PLANNING
Sec. 601. Regional coordination.
Sec. 602. Regional Coordination Councils.
Sec. 603. Regional strategic plans.
Sec. 604. Regulations.
Sec. 605. Ocean Resources Conservation and Assistance Fund.
Sec. 606. Waiver.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Repeal of certain taxpayer subsidized royalty relief for the
oil and gas industry.
Sec. 702. Conservation fee.
Sec. 703. Leasing on Indian lands.
Sec. 704. Offshore aquaculture clarification.
Sec. 705. Outer Continental Shelf State boundaries.
Sec. 706. Liability for damages to national wildlife refuges.
Sec. 707. Strengthening coastal State oil spill planning and response.
Sec. 708. Information sharing.
Sec. 709. Repeal of funding.
Sec. 710. Limitation on use of funds.
Sec. 711. Additional public-right-to-know requirements.
Sec. 712. Federal response to State proposals to protect State lands
and waters.
TITLE VIII--GULF OF MEXICO RESTORATION
Sec. 801. Gulf of Mexico restoration program.
TITLE IX--GEOTHERMAL PRODUCTION EXPANSION
Sec. 901. Short title.
Sec. 902. Findings.
Sec. 903. Noncompetitive leasing of adjoining areas for development of
geothermal resources.
SEC. 2. DEFINITIONS.
For the purposes of this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the National Oceanic and Atmospheric
Administration.
(2) Affected indian tribe.--The term ``affected Indian
tribe'' means an Indian tribe that has federally reserved
rights that are affirmed by treaty, statute, Executive order,
Federal court order, or other Federal law in the area at issue.
(3) Alternative energy.--The term ``alternative energy''
means electricity generated by a renewable energy resource.
(4) Coastal state.--The term ``coastal State'' has the
meaning given the term ``coastal state'' in section 304 of the
Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
(5) Department.--The term ``Department'' means the Department
of the Interior, except as the context indicates otherwise.
(6) Ecosystem-based management.--The term ``ecosystem-based
management'' means an integrated approach to management that--
(A) considers the entire ecosystem, including humans,
and accounts for interactions among the ecosystem, the
range of activities affecting the ecosystem, and the
management of such activities;
(B) aims to maintain ecosystems in a healthy,
productive, sustainable, and resilient condition so
that they can provide the services humans want and
need;
(C) emphasizes the protection of ecosystem structure,
function, patterns, and important processes;
(D) considers the impacts, including cumulative
impacts, of the range of activities affecting an
ecosystem that fall within geographical boundaries of
the ecosystem;
(E) explicitly accounts for the interconnectedness
within an ecosystem, such as food webs, and
acknowledges the interconnectedness among systems, such
as between air, land, and sea; and
(F) integrates ecological, social, economic,
cultural, and institutional perspectives, recognizing
their strong interdependencies.
(7) Federal land management agency.--The term ``Federal land
management agency'' means--
(A) the Bureau of Land Management;
(B) the Forest Service;
(C) the United States Fish and Wildlife Service; and
(D) the National Park Service.
(8) Function.--The term ``function'' includes authorities,
powers, rights, privileges, immunities, programs, projects,
activities, duties, and responsibilities.
(9) Important ecological area.--The term ``important
ecological area'' means an area that contributes significantly
to local or larger marine ecosystem health or is an especially
unique or sensitive marine ecosystem.
(10) Indian land.--The term ``Indian land'' has the meaning
given the term in section 502(a) of title V of Public Law 109-
58 (25 U.S.C. 3501(2)).
(11) Marine ecosystem health.--The term ``marine ecosystem
health'' means the ability of an ecosystem in ocean and coastal
waters to support and maintain patterns, important processes,
and productive, sustainable, and resilient communities of
organisms, having a species composition, diversity, and
functional organization resulting from the natural habitat of
the region, such that it is capable of supporting a variety of
activities and providing a complete range of ecological
benefits. Such an ecosystem would be characterized by a variety
of factors, including--
(A) a complete diversity of native species and
habitat wherein each native species is able to maintain
an abundance, population structure, and distribution
supporting its ecological and evolutionary functions,
patterns, and processes; and
(B) a physical, chemical, geological, and microbial
environment that is necessary to achieve such
diversity.
(12) Mineral.--The term ``mineral'' has the same meaning that
the term ``minerals'' has in section 2(q) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1331(q)).
(13) Nonrenewable energy resource.--The term ``nonrenewable
energy resource'' means oil and natural gas.
(14) Operator.--The term ``operator'' means--
(A) the lessee; or
(B) a person designated by the lessee as having
control or management of operations on the leased area
or a portion thereof, who is--
(i) approved by the Secretary, acting through
the Bureau of Energy and Resource Management;
or
(ii) the holder of operating rights under an
assignment of operating rights that is approved
by the Secretary, acting through the Bureau of
Energy and Resource Management.
(15) Outer continental shelf.--The term ``Outer Continental
Shelf'' has the meaning that the term ``outer Continental
Shelf'' has in the Outer Continental Shelf Lands Act (43 U.S.C.
1331 et seq.).
(16) Public land state.--The term ``public land State''
means--
(A) each of the eleven contiguous Western States (as
that term is defined in section 103 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1702));
and
(B) Alaska.
(17) Regional ocean partnership.--The term ``Regional Ocean
Partnership'' means voluntary, collaborative management
initiatives developed and entered into by the Governors of two
or more coastal States or created by an interstate compact for
the purpose of addressing more than one ocean, coastal, or
Great Lakes issue and to implement policies and activities
identified under special area management plans under the
Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.) or
other agreements developed and signed by the Governors.
(18) Renewable energy resource.--The term ``renewable energy
resource'' means each of the following:
(A) Wind energy.
(B) Solar energy.
(C) Geothermal energy.
(D) Biomass or landfill gas.
(E) Marine and hydrokinetic renewable energy, as that
term is defined in section 632 of the Energy
Independence and Security Act of 2007 (42 U.S.C.
17211).
(19) Secretaries.--The term ``Secretaries'' means the
Secretary of the Interior and the Secretary of Commerce.
(20) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, except as otherwise provided in this Act.
(21) Surface use plan of operations.--The term ``surface use
plan of operations'' means a plan for surface use, disturbance,
and reclamation of Federal lands for energy development that is
submitted by a lessee and approved by the relevant land
management agency.
(22) Terms defined in other law.--Each of the terms ``Federal
land'', ``lease'', ``lease site'', and ``mineral leasing law''
has the meaning that term has under the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.), except
that such terms shall also apply to all minerals and renewable
energy resources in addition to oil and gas.
(23) Tribe.--The term ``tribe'' has the same meaning as the
term ``Indian tribe'' has in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIES
SEC. 101. BUREAU OF ENERGY AND RESOURCE MANAGEMENT.
(a) Establishment.--There is established in the Department of the
Interior a Bureau of Energy and Resource Management (referred to in
this section as the ``Bureau'') to be headed by a Director of Energy
and Resource Management (referred to in this section as the
``Director'').
(b) Director.--
(1) Appointment.--The Director shall be appointed by the
President, by and with the advice and consent of the Senate, on
the basis of--
(A) professional background, demonstrated competence,
and ability; and
(B) capacity to--
(i) administer the provisions of this Act;
and
(ii) ensure that the fiduciary duties of the
United States Government on behalf of the
people of the United States, as they relate to
development of nonrenewable and renewable
energy and mineral resources, are duly met.
(2) Compensation.--The Director shall be compensated at the
rate provided for Level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(c) Duties.--
(1) In general.--Except as provided in paragraph (4), the
Secretary shall carry out through the Bureau all functions,
powers, and duties vested in the Secretary relating to the
administration of a comprehensive program of nonrenewable and
renewable energy and mineral resources management--
(A) on the Outer Continental Shelf, pursuant to the
Outer Continental Shelf Lands Act as amended by this
Act (43 U.S.C. 1331 et seq.);
(B) on Federal public lands, pursuant to the Mineral
Leasing Act (30 U.S.C. 181 et seq.) and the Geothermal
Steam Act of 1970 (30 U.S.C. 1001 et seq.);
(C) on acquired Federal lands, pursuant to the
Mineral Leasing Act for Acquired Lands (30 U.S.C. 351
et seq.) and the Geothermal Steam Act of 1970 (30
U.S.C. 1001 et seq.);
(D) in the National Petroleum Reserve in Alaska,
pursuant to the Naval Petroleum Reserves Production Act
of 1976 (42 U.S.C. 6501 et seq.);
(E) on any Federal land pursuant to any mineral
leasing law; and
(F) pursuant to this Act and all other applicable
Federal laws, including the administration and approval
of all instruments and agreements required to ensure
orderly, safe, and environmentally responsible
nonrenewable and renewable energy and mineral resources
development activities.
(2) Specific authorities.--The Director shall promulgate and
implement regulations for the proper issuance of leases for the
exploration, development, and production of nonrenewable and
renewable energy and mineral resources, and for the issuance of
permits under such leases, on the Outer Continental Shelf and
lands managed by the Bureau of Land Management, the Forest
Service, or any other Federal land management agency, including
regulations relating to resource identification, access,
evaluation, and utilization.
(3) Independent environmental science.--
(A) In general.--The Secretary shall create an
independent office within the Bureau that--
(i) shall report to the Director;
(ii) shall be programmatically separate and
distinct from the leasing and permitting
activities of the Bureau; and
(iii) shall--
(I) carry out the environmental
studies program under section 20 of the
Outer Continental Shelf Lands Act (43
U.S.C. 1346);
(II) conduct any environmental
analyses necessary for the programs
administered by the Bureau; and
(III) carry out other functions as
deemed necessary by the Secretary.
(B) Consultation.--Studies and analyses carried out
by the office created under subparagraph (A) shall be
conducted in appropriate and timely consultation with
other relevant Federal agencies, including--
(i) the Bureau of Safety and Environmental
Enforcement;
(ii) the United States Fish and Wildlife
Service;
(iii) the United States Geological Survey;
and
(iv) the National Oceanic and Atmospheric
Administration.
(4) Limitation.--The Secretary shall not carry out through
the Bureau any function, power, or duty that is--
(A) required by section 102 to be carried out through
Bureau of Safety and Environmental Enforcement; or
(B) required by section 103 to be carried out through
the Office of Natural Resources Revenue.
(d) Comprehensive Data and Analyses on Outer Continental Shelf
Resources.--
(1) In general.--
(A) Programs.--The Director shall develop and carry
out programs for the collection, evaluation, assembly,
analysis, and dissemination of data and information
that is relevant to carrying out the duties of the
Bureau, including studies under section 20 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1346).
(B) Use of data and information.--The Director shall,
in carrying out functions pursuant to the Outer
Continental Lands Act (43 U.S.C. 1331 et seq.),
consider data and information referred to in
subparagraph (A) which shall inform the management
functions of the Bureau, and shall contribute to a
broader coordination of development activities within
the contexts of the best available science and marine
spatial planning.
(2) Interagency cooperation.--In carrying out programs under
this subsection, the Bureau shall--
(A) utilize the authorities of subsection (g) and (h)
of section 18 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1344);
(B) cooperate with appropriate offices in the
Department and in other Federal agencies;
(C) use existing inventories and mapping of marine
resources previously undertaken by the Minerals
Management Service, mapping undertaken by the United
States Geological Survey and the National Oceanographic
and Atmospheric Administration, and information
provided by the Department of Defense and other Federal
and State agencies possessing relevant data; and
(D) use any available data regarding renewable energy
potential, navigation uses, fisheries, aquaculture
uses, recreational uses, habitat, conservation, and
military uses of the Outer Continental Shelf.
(e) Responsibilities of Land Management Agencies.--Nothing in this
section shall affect the authorities of the Bureau of Land Management
under the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1701 et seq.) or of the Forest Service under the National Forest
Management Act of 1976 (Public Law 94-588).
SEC. 102. BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT.
(a) Establishment.--There is established in the Department a Bureau
of Safety and Environmental Enforcement (referred to in this section as
the ``Bureau'') to be headed by a Director of Safety and Environmental
Enforcement (referred to in this section as the ``Director'').
(b) Director.--
(1) Appointment.--The Director shall be appointed by the
President, by and with the advice and consent of the Senate, on
the basis of--
(A) professional background, demonstrated competence,
and ability; and
(B) capacity to administer the provisions of this
Act.
(2) Compensation.--The Director shall be compensated at the
rate provided for Level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(c) Duties.--
(1) In general.--The Secretary shall carry out through the
Bureau all functions, powers, and duties vested in the
Secretary relating to the administration of safety and
environmental enforcement activities related to nonrenewable
and renewable energy and mineral resources--
(A) on the Outer Continental Shelf pursuant to the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.);
(B) on Federal public lands, pursuant to the Mineral
Leasing Act (30 U.S.C. 181 et seq.) and the Geothermal
Steam Act of 1970 (30 U.S.C. 1001 et seq.);
(C) on acquired Federal lands, pursuant to the
Mineral Leasing Act for Acquired Lands (30 U.S.C. 351
et seq.) and the Geothermal Steam Act of 1970 (30
U.S.C. 1001 et seq.);
(D) in the National Petroleum Reserve in Alaska,
pursuant to the Naval Petroleum Reserves Production Act
of 1976 (42 U.S.C. 6501 et seq.); and
(E) pursuant to--
(i) the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et
seq.);
(ii) the Energy Policy Act of 2005 (Public
Law 109-58);
(iii) the Federal Oil and Gas Royalty
Simplification and Fairness Act of 1996 (Public
Law 104-185);
(iv) the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1600
et seq.);
(v) the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1701 et seq.);
(vi) this Act; and
(vii) all other applicable Federal laws,
including the authority to develop, promulgate, and
enforce regulations to ensure the safe and
environmentally sound exploration, development, and
production of nonrenewable and renewable energy and
mineral resources on the Outer Continental Shelf and
onshore federally managed lands.
(d) Authorities.--In carrying out the duties under this section, the
Secretary's authorities shall include--
(1) performing necessary oversight activities to ensure the
proper application of environmental reviews, including those
conducted pursuant to the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) by the Bureau of Energy and
Resource Management in the performance of its duties under the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.);
(2) suspending or prohibiting, on a temporary basis, any
operation or activity, including production--
(A) on leases held on the Outer Continental Shelf, in
accordance with section 5(a)(1) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1334(a)(1)); or
(B) on leases or rights-of-way held on Federal lands
under any other minerals or energy leasing statute, in
accordance with section 302(c) of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et
seq.);
(3) cancelling any lease, permit, or right-of way--
(A) on the Outer Continental Shelf, in accordance
with section 5(a)(2) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1334(a)(2)); or
(B) on onshore Federal lands, in accordance with
section 302(c) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1732(c));
(4) compelling compliance with applicable worker safety and
environmental laws and regulations;
(5) requiring comprehensive safety and environmental
management programs for persons engaged in activities connected
with the exploration, development, and production of energy or
mineral resources;
(6) developing and implementing regulations for Federal
employees to carry out any inspection or investigation to
ascertain compliance with applicable regulations, including
health, safety, or environmental regulations;
(7) collecting, evaluating, assembling, analyzing, and
publicly disseminating electronically data and information that
is relevant to inspections, failures, or accidents involving
equipment and systems used for exploration and production of
energy and mineral resources, including human factors
associated therewith;
(8) implementing the Offshore Technology Research and Risk
Assessment Program under section 21 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1347);
(9) summoning witnesses and directing the production of
evidence;
(10) levying fines and penalties and disqualifying operators;
and
(11) carrying out any safety, response, and removal
preparedness functions.
(e) Employees.--
(1) In general.--The Secretary shall ensure that the
inspection force of the Bureau consists of qualified, trained
employees who meet qualification requirements and adhere to the
highest professional and ethical standards.
(2) Qualifications.--The qualification requirements referred
to in paragraph (1)--
(A) shall be determined by the Secretary, subject to
subparagraph (B); and
(B) shall include--
(i) three years of practical experience in
oil and gas exploration, development, or
production; or
(ii) a degree in an appropriate field of
engineering from an accredited institution of
higher learning.
(3) Assignment.--In assigning oil and gas inspectors to the
inspection and investigation of individual operations, the
Secretary shall give due consideration to the extent possible
to their previous experience in the particular type of oil and
gas operation in which such inspections are to be made.
(4) Training academy.--
(A) In general.--The Secretary shall establish and
maintain a National Oil and Gas Health and Safety
Academy (referred to in this paragraph as the
``Academy'') as an agency of the Department of the
Interior.
(B) Functions of academy.--The Secretary, through the
Academy, shall be responsible for--
(i) the initial and continued training of
both newly hired and experienced oil and gas
inspectors in all aspects of health, safety,
environmental, and operational inspections;
(ii) the training of technical support
personnel of the Bureau;
(iii) any other training programs for oil and
gas inspectors, Bureau personnel, Department
personnel, or other persons as the Secretary
shall designate; and
(iv) certification of the successful
completion of training programs for newly hired
and experienced oil and gas inspectors.
(C) Cooperative agreements.--
(i) In general.--In performing functions
under this paragraph, and subject to clause
(ii), the Secretary may enter into cooperative
educational and training agreements with
educational institutions, related Federal
academies, other Federal agencies, State
governments, labor organizations, and oil and
gas operators and related industries.
(ii) Training requirement.--Such training
shall be conducted by the Academy in accordance
with curriculum needs and assignment of
instructional personnel established by the
Secretary.
(D) Use of departmental personnel.--In performing
functions under this subsection, the Secretary shall
use, to the extent practicable, the facilities and
personnel of the Department of the Interior. The
Secretary may appoint or assign to the Academy such
officers and employees as the Secretary considers
necessary for the performance of the duties and
functions of the Academy.
(5) Additional training programs.--
(A) In general.--The Secretary shall work with
appropriate educational institutions, operators, and
representatives of oil and gas workers to develop and
maintain adequate programs with educational
institutions and oil and gas operators, that are
designed--
(i) to enable persons to qualify for
positions in the administration of this Act;
and
(ii) to provide for the continuing education
of inspectors or other appropriate Departmental
personnel.
(B) Financial and technical assistance.--The
Secretary may provide financial and technical
assistance to educational institutions in carrying out
this paragraph.
SEC. 103. OFFICE OF NATURAL RESOURCES REVENUE.
(a) Establishment.--There is established in the Department an Office
of Natural Resources Revenue (referred to in this section as the
``Office'') to be headed by a Director of Natural Resources Revenue
(referred to in this section as the ``Director'').
(b) Appointment and Compensation.--
(1) In general.--The Director shall be appointed by the
President, by and with the advice and consent of the Senate, on
the basis of--
(A) professional competence; and
(B) capacity to--
(i) administer the provisions of this Act;
and
(ii) ensure that the fiduciary duties of the
United States Government on behalf of the
American people, as they relate to development
of nonrenewable and renewable energy and
mineral resources, are duly met.
(2) Compensation.--The Director shall be compensated at the
rate provided for Level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(c) Duties.--
(1) In general.--The Secretary shall carry out, through the
Office--
(A) all functions, powers, and duties vested in the
Secretary and relating to the administration of the
royalty and revenue management functions pursuant to--
(i) the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.);
(ii) the Mineral Leasing Act (30 U.S.C. 181
et seq.);
(iii) the Mineral Leasing Act for Acquired
Lands (30 U.S.C. 351 et seq.);
(iv) the Geothermal Steam Act of 1970 (30
U.S.C. 1001 et seq.);
(v) the Naval Petroleum Reserves Production
Act of 1976 (42 U.S.C. 6501 et seq.);
(vi) the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et
seq.);
(vii) the Federal Oil and Gas Royalty
Simplification and Fairness Act of 1996 (Public
Law 104-185);
(viii) the Energy Policy Act of 2005 (Public
Law 109-58);
(ix) the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1600
et seq.);
(x) the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1701 et seq.); and
(xi) this Act and all other applicable
Federal laws; and
(B) all functions, powers, and duties previously
assigned to the Minerals Management Service (including
the authority to develop, promulgate, and enforce
regulations) regarding--
(i) royalty and revenue collection;
(ii) royalty and revenue distribution;
(iii) auditing and compliance;
(iv) investigation and enforcement of royalty
and revenue regulations; and
(v) asset management for onshore and offshore
activities.
(d) Oversight.--In order to provide transparency and ensure strong
oversight over the revenue program, the Secretary shall--
(1) create within the Office an independent audit and
oversight program responsible for monitoring the performance of
the Office with respect to the duties and functions under
subsection (c), and conducting internal control audits of the
operations of the Office;
(2) facilitate the participation of those Indian tribes and
States operating pursuant to cooperative agreements or
delegations under the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1701 et seq.) on all of the management
teams, committees, councils, and other entities created by the
Office; and
(3) assure prior consultation with those Indian tribes and
States referred to in paragraph (2) in the formulation all
policies, procedures, guidance, standards, and rules relating
to the functions referred to in subsection (c).
SEC. 104. ETHICS.
(a) Certification.--The Secretary shall certify annually that all
Department of the Interior officers and employees having regular,
direct contact with lessees and operators as a function of their
official duties are in full compliance with all Federal employee ethics
laws and regulations under the Ethics in Government Act of 1978 (5
U.S.C. App.) and part 2635 of title 5, Code of Federal Regulations, and
all guidance issued under subsection (b).
(b) Guidance.--Not later than 90 days after the date of enactment of
this Act, the Secretary shall issue supplementary ethics guidance for
the employees for which certification is required under subsection (a).
SEC. 105. REFERENCES.
(a) Bureau of Energy and Resource Management.--Any reference in any
law, rule, regulation, directive, instruction, certificate, or other
official document, in force immediately before the enactment of this
Act--
(1) to the Minerals Management Service that pertains to any
of the duties and authorities referred to in section 101 is
deemed to refer and apply to the Bureau of Energy and Resource
Management established by section 101;
(2) to the Director of the Minerals Management Service that
pertains to any of the duties and authorities referred to in
section 101 is deemed to refer and apply to the Director of the
Bureau of Energy and Resource Management;
(3) to any other position in the Minerals Management Service
that pertains to any of the duties and authorities referred to
in section 101 is deemed to refer and apply to that same or
equivalent position in the Bureau of Energy and Resource
Management;
(4) to the Bureau of Land Management that pertains to any of
the duties and authorities referred to in section 101 is deemed
to refer and apply to the Bureau of Energy and Resource
Management;
(5) to the Director of the Bureau of Land Management that
pertains to any of the duties and authorities referred to in
section 101 is deemed to refer and apply to the Director of the
Bureau of Energy and Resource Management; and
(6) to any other position in the Bureau of Land Management
that pertains to any of the duties and authorities referred to
in section 101 is deemed to refer and apply to that same or
equivalent position in the Bureau of Energy and Resource
Management.
(b) Bureau of Safety and Environmental Enforcement.--Any reference in
any law, rule, regulation, directive, instruction, certificate or other
official document in force immediately before the enactment of this
Act--
(1) to the Minerals Management Service that pertains to any
of the duties and authorities referred to in section 102 is
deemed to refer and apply to the Bureau of Safety and
Environmental Enforcement established by section 102;
(2) to the Director of the Minerals Management Service that
pertains to any of the duties and authorities referred to in
section 102 is deemed to refer and apply to the Director of the
Bureau of Safety and Environmental Enforcement;
(3) to any other position in the Minerals Management Service
that pertains to any of the duties and authorities referred to
in section 102 is deemed to refer and apply to that same or
equivalent position in the Bureau of Safety and Environmental
Enforcement;
(4) to the Bureau of Land Management that pertains to any of
the duties and authorities referred to in section 102 is deemed
to refer and apply to the Bureau of Safety and Environmental
Enforcement;
(5) to the Director of the Bureau of Land Management that
pertains to any of the duties and authorities referred to in
section 102 is deemed to refer and apply to the Director of the
Bureau of Safety and Environmental Enforcement; and
(6) to any other position in the Bureau of Land Management
that pertains to any of the duties and authorities referred to
in section 102 is deemed to refer and apply to that same or
equivalent position in the Bureau of Safety and Environmental
Enforcement.
(c) Office of Natural Resources Revenue.--Any reference in any law,
rule, regulation, directive, or instruction, or certificate or other
official document, in force immediately prior to enactment--
(1) to the Minerals Management Service that pertains to any
of the duties and authorities referred to in section 103 is
deemed to refer and apply to the Office of Natural Resources
Revenue established by section 103;
(2) to the Director of the Minerals Management Service that
pertains to any of the duties and authorities referred to in
section 103 is deemed to refer and apply to the Director of
Natural Resources Revenue; and
(3) to any other position in the Minerals Management Service
that pertains to any of the duties and authorities referred to
in section 103 is deemed to refer and apply to that same or
equivalent position in the Office of Natural Resources Revenue.
SEC. 106. ABOLISHMENT OF MINERALS MANAGEMENT SERVICE.
(a) Abolishment.--The Minerals Management Service (in this section
referred to as the ``Service'') is abolished.
(b) Completed Administrative Actions.--
(1) In general.--Completed administrative actions of the
Service shall not be affected by the enactment of this Act, but
shall continue in effect according to their terms until
amended, modified, superseded, terminated, set aside, or
revoked in accordance with law by an officer of the United
States or a court of competent jurisdiction, or by operation of
law.
(2) Completed administrative action defined.--For purposes of
paragraph (1), the term ``completed administrative action''
includes orders, determinations, rules, regulations, personnel
actions, permits, agreements, grants, contracts, certificates,
licenses, registrations, and privileges.
(c) Pending Proceedings.--Subject to the authority of the Secretary
of the Interior and the officers of the Department of the Interior
under this Act--
(1) pending proceedings in the Service, including notices of
proposed rulemaking, and applications for licenses, permits,
certificates, grants, and financial assistance, shall continue,
notwithstanding the enactment of this Act or the vesting of
functions of the Service in another agency, unless discontinued
or modified under the same terms and conditions and to the same
extent that such discontinuance or modification could have
occurred if this Act had not been enacted; and
(2) orders issued in such proceedings, and appeals therefrom,
and payments made pursuant to such orders, shall issue in the
same manner and on the same terms as if this Act had not been
enacted, and any such orders shall continue in effect until
amended, modified, superseded, terminated, set aside, or
revoked by an officer of the United States or a court of
competent jurisdiction, or by operation of law.
(d) Pending Civil Actions.--Subject to the authority of the Secretary
of the Interior or any officer of the Department of the Interior under
this Act, pending civil actions shall continue notwithstanding the
enactment of this Act, and in such civil actions, proceedings shall be
had, appeals taken, and judgments rendered and enforced in the same
manner and with the same effect as if such enactment had not occurred.
(e) References.--References relating to the Service in statutes,
Executive orders, rules, regulations, directives, or delegations of
authority that precede the effective date of this Act are deemed to
refer, as appropriate, to the Department, to its officers, employees,
or agents, or to its corresponding organizational units or functions.
Statutory reporting requirements that applied in relation to the
Service immediately before the effective date of this Act shall
continue to apply.
SEC. 107. CONFORMING AMENDMENT.
Section 5316 of title 5, United States Code, is amended by striking
``Director, Bureau of Mines, Department of the Interior.'' and
inserting the following new items:
``Director, Bureau of Energy and Resource Management,
Department of the Interior.
``Director, Bureau of Safety and Environmental Enforcement,
Department of the Interior.
``Director, Office of Natural Resources Revenue, Department
of the Interior.''.
SEC. 108. OUTER CONTINENTAL SHELF SAFETY AND ENVIRONMENTAL ADVISORY
BOARD.
(a) Establishment.--The Secretary shall establish, under the Federal
Advisory Committee Act, an Outer Continental Shelf Safety and
Environmental Advisory Board (referred to in this section as the
``Board''), to provide the Secretary and the Directors of the bureaus
established by this title with independent scientific and technical
advice on safe and environmentally compliant nonrenewable and renewable
energy and mineral resource exploration, development, and production
activities.
(b) Membership.--
(1) Size.--The Board shall consist of not more than 12
members, chosen to reflect a range of expertise in scientific,
engineering, management, environmental, and other disciplines
related to safe and environmentally compliant renewable and
nonrenewable energy and mineral resource exploration,
development, and production activities. The Secretary shall
consult with the National Academy of Sciences and the National
Academy of Engineering to identify potential candidates for the
Board.
(2) Term.--The Secretary shall appoint Board members to
staggered terms of not more than 4 years, and shall not appoint
a member for more than 2 consecutive terms.
(3) Balance.--In appointing members to the Board, the
Secretary shall ensure a balanced representation of industry-
and nonindustry-related interests.
(c) Chair.--The Secretary shall appoint the Chair for the Board.
(d) Meetings.--The Board shall meet not less than 3 times per year
and, at least once per year, shall host a public forum to review and
assess the overall safety and environmental performance of Outer
Continental Shelf nonrenewable and renewable energy and mineral
resource activities.
(e) Reports.--Reports of the Board shall be submitted to the Congress
and made available to the public in electronically accessible form.
(f) Travel Expenses.--Members of the Board, other than full-time
employees of the Federal Government, while attending meeting of the
Board or while otherwise serving at the request of the Secretary or the
Director while serving away from their homes or regular places of
business, may be allowed travel expenses, including per diem in lieu of
subsistence, as authorized by section 5703 of title 5, United States
Code, for individuals in the Government serving without pay.
TITLE II--FEDERAL OIL AND GAS DEVELOPMENT
Subtitle A--Safety, Environmental, and Financial Reform of the Outer
Continental Shelf Lands Act
SEC. 201. SHORT TITLE.
This subtitle may be cited as the ``Outer Continental Shelf Lands Act
Amendments of 2010''.
SEC. 202. DEFINITIONS.
Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331)
is amended by adding at the end the following:
``(r) The term `safety case' means a body of evidence that provides a
basis for determining whether a system is adequately safe for a given
application in a given operating environment.''.
SEC. 203. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.
Section 3 of the Outer Continental Shelf Lands Act (43 U.S.C. 1332)
is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) the outer Continental Shelf is a vital national
resource reserve held by the Federal Government for the public,
that should be managed in a manner that--
``(A) recognizes the need of the United States for
domestic sources of energy, food, minerals, and other
resources;
``(B) minimizes the potential impacts of development
of those resources on the marine and coastal
environment and on human health and safety; and
``(C) acknowledges the long-term economic value to
the United States of the balanced and orderly
management of those resources that safeguards the
environment and respects the multiple values and uses
of the outer Continental Shelf;'';
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon;
(3) in paragraph (5), by striking ``should be'' and inserting
``shall be'', and striking ``; and'' and inserting a semicolon;
(4) by redesignating paragraph (6) as paragraph (7);
(5) by inserting after paragraph (5) the following:
``(6) exploration, development, and production of energy and
minerals on the outer Continental Shelf should be allowed only
when those activities can be accomplished in a manner that
minimizes--
``(A) harmful impacts to life (including fish and
other aquatic life) and health;
``(B) damage to the marine, coastal, and human
environments and to property; and
``(C) harm to other users of the waters, seabed, or
subsoil; and''; and
(6) in paragraph (7) (as so redesignated), by--
(A) striking ``should be'' and inserting ``shall
be'';
(B) inserting ``best available'' after ``using''; and
(C) striking ``or minimize''.
SEC. 204. JURISDICTION OF LAWS ON THE OUTER CONTINENTAL SHELF.
Section 4(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C.
1333(a)(1)) is amended by--
(1) inserting ``or producing or supporting production of
energy from sources other than oil and gas'' after
``therefrom'';
(2) inserting ``or transmitting such energy'' after
``transporting such resources''; and
(3) inserting ``and other energy'' after ``That mineral''.
SEC. 205. OUTER CONTINENTAL SHELF LEASING STANDARD.
(a) In General.--Section 5 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1334) is amended--
(1) in subsection (a), by striking ``The Secretary may at any
time'' and inserting ``The Secretary shall'';
(2) in the second sentence of subsection (a), by adding after
``provide for'' the following: ``operational safety, the
protection of the marine and coastal environment, and'';
(3) in subsection (a), by inserting ``and the Secretary of
Commerce with respect to matters that may affect the marine and
coastal environment'' after ``which may affect competition'';
(4) in clause (ii) of subsection (a)(2)(A), by striking ``a
reasonable period of time'' and inserting ``30 days'';
(5) in subsection (a)(7), by inserting ``in a manner that
minimizes harmful impacts to the marine and coastal
environment'' after ``lease area'';
(6) in subsection (a), by striking ``and'' after the
semicolon at the end of paragraph (7), redesignating paragraph
(8) as paragraph (12), and inserting after paragraph (7) the
following:
``(8) for independent third-party certification requirements
of safety systems related to well control, such as blowout
preventers;
``(9) for performance requirements for blowout preventers,
including quantitative risk assessment standards, subsea
testing, and secondary activation methods;
``(10) for independent third-party certification requirements
of well casing and cementing programs and procedures;
``(11) for the establishment of mandatory safety and
environmental management systems by operators on the Outer
Continental Shelf;'';
(7) in subsection (a), by striking the period at the end of
paragraph (12), as so redesignated, and inserting ``; and'',
and by adding at the end the following:
``(13) ensuring compliance with other applicable
environmental and natural resource conservation laws.''; and
(8) by adding at the end the following new subsection:
``(k) Documents Incorporated by Reference.--Any documents
incorporated by reference in regulations promulgated by the Secretary
pursuant to this Act shall be made available to the public, free of
charge, on a website maintained by the Secretary.''.
(b) Conforming Amendment.--Subsection (g) of section 25 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1351), as redesignated by
section 215(4) of this Act, is further amended by striking ``paragraph
(8) of section 5(a) of this Act'' each place it appears and inserting
``paragraph (12) of section 5(a) of this Act''.
SEC. 206. LEASES, EASEMENTS, AND RIGHTS-OF-WAY.
(a) Financial Assurance and Fiscal Responsibility.--Section 8 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by adding
at the end the following:
``(q) Review of Bond and Surety Amounts.--Not later than May 1, 2011,
and every 5 years thereafter, the Secretary shall review the minimum
financial responsibility requirements for leases issued under this
section and shall ensure that any bonds or surety required are adequate
to comply with the requirements of this Act or the Oil Pollution Act of
1990 (33 U.S.C. 2701 et seq.).
``(r) Periodic Fiscal Review and Report.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection and every 3 years thereafter, the
Secretary shall carry out a review and prepare a report setting
forth--
``(A)(i) the royalty and rental rates included in new
offshore oil and gas leases; and
``(ii) the rationale for the rates;
``(B) whether, in the view of the Secretary, the
royalty and rental rates described in subparagraph (A)
will yield a fair return to the public while promoting
the production of oil and gas resources in a timely
manner;
``(C)(i) the minimum bond or surety amounts required
pursuant to offshore oil and gas leases; and
``(ii) the rationale for the minimum amounts;
``(D) whether the bond or surety amounts described in
subparagraph (C) are adequate to comply with subsection
(q); and
``(E) whether the Secretary intends to modify the
royalty or rental rates, or bond or surety amounts,
based on the review.
``(2) Public participation.--In carrying out a review and
preparing a report under paragraph (1), the Secretary shall
provide to the public an opportunity to participate.
``(3) Report deadline.--Not later than 30 days after the date
on which the Secretary completes a report under paragraph (1),
the Secretary shall transmit copies of the report to--
``(A) the Committee on Energy and Natural Resources
of the Senate; and
``(B) the Committee on Natural Resources of the House
of Representatives.
``(s) Comparative Review of Fiscal System.--
``(1) In general.--Not later than 2 years after the date of
enactment of this subsection and every 5 years thereafter, the
Secretary shall carry out a comprehensive review of all
components of the Federal offshore oil and gas fiscal system,
including requirements for--
``(A) bonus bids;
``(B) rental rates;
``(C) royalties; and
``(D) oil and gas taxes.
``(2) Requirements.--
``(A) Contents; scope.--A review under paragraph (1)
shall include--
``(i) the information and analyses necessary
to compare the offshore bonus bids, rents,
royalties, and taxes of the Federal Government
to the offshore bonus bids, rents, royalties,
and taxes of other resource owners, including
States and foreign countries; and
``(ii) an assessment of the overall offshore
oil and gas fiscal system in the United States,
as compared to foreign countries.
``(B) Independent advisory committee.--In carrying
out a review under paragraph (1), the Secretary shall
convene and seek the advice of an independent advisory
committee comprised of oil and gas and fiscal experts
from States, Indian tribes, academia, the energy
industry, and appropriate nongovernmental
organizations.
``(3) Report.--
``(A) In general.--The Secretary shall prepare a
report that contains--
``(i) the contents and results of the review
carried out under paragraph (1) for the period
covered by the report; and
``(ii) any recommendations of the Secretary
based on the contents and results of the
review.
``(B) Report deadline.--Not later than 30 days after
the date on which the Secretary completes a report
under paragraph (1), the Secretary shall transmit
copies of the report to the Committee on Natural
Resources of the House of Representatives and the
Committee on Energy and Natural Resources of the
Senate.''.
(b) Environmental Diligence.--Section 8 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337) is amended by striking subsection (d)
and inserting the following:
``(d) Requirement for Certification of Responsible Stewardship.--
``(1) Certification requirement.--No bid or request for a
lease, easement, or right-of-way under this section, or for a
permit to drill under section 11(d), may be submitted by any
person unless the person certifies to the Secretary that the
person (including any related person and any predecessor of
such person or related person) meets each of the following
requirements:
``(A) The person is meeting due diligence, safety,
and environmental requirements on other leases,
easements, and rights-of-way.
``(B) In the case of a person that is a responsible
party for a vessel or a facility from which oil is
discharged, for purposes of section 1002 of the Oil
Pollution Act of 1990 (33 U.S.C. 2702), the person has
met all of its obligations under that Act to provide
compensation for covered removal costs and damages.
``(C) In the 7-year period ending on the date of
certification, the person, in connection with
activities in the oil industry (including exploration,
development, production, transportation by pipeline,
and refining)--
``(i) was not found to have committed willful
or repeated violations under the Occupational
Safety and Health Act of 1970 (29 U.S.C. 651 et
seq.) (including State plans approved under
section 18(c) of such Act (29 U.S.C. 667(c)))
at a rate that is higher than five times the
rate determined by the Secretary to be the oil
industry average for such violations for such
period;
``(ii) was not convicted of a criminal
violation for death or serious bodily injury;
``(iii) did not have more than 10 fatalities
at its exploration, development, and production
facilities and refineries as a result of
violations of Federal or State health, safety,
or environmental laws;
``(iv) was not assessed, did not enter into
an agreement to pay, and was not otherwise
required to pay, civil penalties and criminal
fines for violations the person was found to
have committed under the Federal Water
Pollution Control Act (33 U.S.C. 1251 et seq.)
(including State programs approved under
sections 402 and 404 of such Act (33 U.S.C.
1342 and 1344)) in a total amount that is equal
to more than $10,000,000; and
``(v) was not assessed, did not enter into an
agreement to pay, and was not otherwise
required to pay, civil penalties and criminal
fines for violations the person was found to
have committed under the Clean Air Act (42
U.S.C. 7401 et seq.) (including State plans
approved under section 110 of such Act (42
U.S.C. 7410)) in a total amount that is equal
to more than $10,000,000.
``(2) Enforcement.--If the Secretary determines that a
certification made under paragraph (1) is false, the Secretary
shall cancel any lease, easement, or right of way and shall
revoke any permit with respect to which the certification was
required under such paragraph.
``(3) Definition of related person.--For purposes of this
subsection, the term `related person' includes a parent,
subsidiary, affiliate, member of the same controlled group,
contractor, subcontractor, a person holding a controlling
interest or in which a controlling interest is held, and a
person with substantially the same board members, senior
officers, or investors.''.
(c) Alternative Energy Development.--
(1) Clarification relating to alternative energy
development.--Section 8(p) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(p)) is amended--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A),
by inserting ``or'' after ``1501 et seq.),'',
and by striking ``or other applicable law,'';
and
(ii) by amending subparagraph (D) to read as
follows:
``(D) use, for energy-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.''; and
(B) in paragraph (4)--
(i) in subparagraph (E), by striking
``coordination'' and inserting ``in
consultation''; and
(ii) in subparagraph (J)(ii), by inserting
``a potential site for an alternative energy
facility,'' after ``deepwater port,''.
(2) Noncompetitive alternative energy lease options.--Section
8(p)(3) of such Act (43 U.S.C. 1337(p)(3)) is amended to read
as follows:
``(3) Competitive or noncompetitive basis.--Any lease,
easement, right-of-way, or other authorization granted under
paragraph (1) shall be issued on a competitive basis, unless--
``(A) the lease, easement, right-of-way, or other
authorization relates to a project that meets the
criteria established under section 388(d) of the Energy
Policy Act of 2005 (43 U.S.C. 1337 note; Public Law
109-58);
``(B) the lease, easement, right-of-way, or other
authorization--
``(i) is for the placement and operation of a
meteorological or marine data collection
facility; and
``(ii) has a term of not more than 5 years;
or
``(C) the Secretary determines, after providing
public notice of a proposed lease, easement, right-of-
way, or other authorization, that no competitive
interest exists.''.
(d) Review of Impacts of Lease Sales on the Marine and Coastal
Environment by Secretary.--Section 8 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337) is amended by adding at the end of
subsection (a) the following:
``(9) At least 60 days prior to any lease sale, the Secretary
shall request a review by the Secretary of Commerce of the
proposed sale with respect to impacts on the marine and coastal
environment. The Secretary of Commerce shall complete and
submit in writing the results of that review within 60 days
after receipt of the Secretary of the Interior's request.''.
(e) Limitation on Lease Tract Size.--Section 8(b)(1) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(b)(1)) is amended by
striking ``, unless the Secretary finds that a larger area is necessary
to comprise a reasonable economic production unit''.
(f) Sulphur Leases.--Section 8(i) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(i)) is amended by striking ``meet the urgent
need'' and inserting ``allow''.
(g) Terms and Provisions.--Section 8(b) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(b)) is amended by striking ``An oil and
gas lease issued pursuant to this section shall'' and inserting ``An
oil and gas lease may be issued pursuant to this section only if the
Secretary determines that activities under the lease are not likely to
result in any condition described in section 5(a)(2)(A)(i), and
shall''.
SEC. 207. DISPOSITION OF REVENUES.
Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338)
is amended to read as follows:
``SEC. 9. DISPOSITION OF REVENUES.
``(a) General.--Except as provided in subsections (b), (c), and (d),
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) Land and Water Conservation Fund.--Effective for fiscal year
2011 and each fiscal year thereafter, $900,000,000 of the amounts
referred to in subsection (a) shall be deposited in the Treasury of the
United States and credited to the Land and Water Conservation Fund.
These sums shall be available to the Secretary, without further
appropriation or fiscal year limitation, for carrying out the purposes
of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4
et seq.).
``(c) Historic Preservation Fund.--Effective for fiscal year 2011 and
each fiscal year thereafter, $150,000,000 of the amounts referred to in
subsection (a) shall be deposited in the Treasury of the United States
and credited to the Historic Preservation Fund. These sums shall be
available to the Secretary, without further appropriation or fiscal
year limitation, for carrying out the purposes of the National Historic
Preservation Fund Act of 1966 (16 U.S.C. 470 et seq.).
``(d) Ocean Resources Conservation and Assistance Fund.--Effective
for each fiscal year 2011 and thereafter, 10 percent of the amounts
referred to in subsection (a) shall be deposited in the Treasury of the
United States and credited to the Ocean Resources Conservation and
Assistance Fund established by the Consolidated Land, Energy, and
Aquatic Resources Act of 2010. These sums shall be available to the
Secretary, without further appropriation or fiscal year limitation, for
carrying out the purposes of section 605 of the Consolidated Land,
Energy, and Aquatic Resources Act of 2010.
``(e) Savings Provision.--Nothing in this section shall decrease the
amount any State shall receive pursuant to section 8(g) of this Act or
section 105 of the Gulf of Mexico Energy Security Act (43 U.S.C. 1331
note).''.
SEC. 208. EXPLORATION PLANS.
(a) Limitation on Harm From Agency Exploration.--Section 11(a)(1) of
the Outer Continental Shelf Lands Act (43 U.S.C. 1340(a)(1)) is amended
by striking ``unduly harmful to'' and inserting ``likely to harm''.
(b) Exploration Plan Review.--Section 11(c) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1340(c)), is amended--
(1) by inserting ``(A)'' before the first sentence;
(2) in paragraph (1)(A), as designated by the amendment made
by paragraph (1) of this subsection--
(A) by striking ``and the provisions of such lease''
and inserting ``the provisions of such lease, and other
applicable environmental and natural resource
conservation laws''; and
(B) by striking the fourth sentence and inserting the
following:
``(B) The Secretary shall approve such plan, as submitted or
modified, within 90 days after its submission and it is made publicly
accessible by the Secretary, or within such additional time as the
Secretary determines is necessary to complete any environmental,
safety, or other reviews, if the Secretary determines that--
``(i) any proposed activity under such plan is not likely to
result in any condition described in section 5(a)(2)(A)(i);
``(ii) the plan complies with other applicable environmental
or natural resource conservation laws; and
``(iii) the applicant has demonstrated the capability and
technology to respond immediately and effectively to a worst-
case oil spill in real-world conditions in the area of the
proposed activity.''; and
(3) by adding at the end the following:
``(5) If the Secretary requires greater than 90 days to
review an exploration plan submitted pursuant to any oil and
gas lease issued or maintained under this Act, then the
Secretary may provide for a suspension of that lease pursuant
to section 5 until the review of the exploration plan is
completed.''.
(c) Requirements.--Section 11(c) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1340(c), is amended by amending paragraph (3) to read as
follows:
``(3) An exploration plan submitted under this subsection
shall include, in the degree of detail that the Secretary may
by regulation require--
``(A) a schedule of anticipated exploration
activities to be undertaken;
``(B) a detailed and accurate description of
equipment to be used for such activities, including--
``(i) a description of each drilling unit;
``(ii) a statement of the design and
condition of major safety-related pieces of
equipment, including independent third party
certification of such equipment; and
``(iii) a description of any new technology
to be used;
``(C) a map showing the location of each well to be
drilled;
``(D) a scenario for the potential blowout of the
well involving the highest potential volume of liquid
hydrocarbons, along with a complete description of a
response plan to both control the blowout and manage
the accompanying discharge of hydrocarbons, including
the likelihood for surface intervention to stop the
blowout, the availability of a rig to drill a relief
well, an estimate of the time it would take to drill a
relief well, a description of other technology that may
be used to regain control of the well or capture
escaping hydrocarbons and the potential timeline for
using that technology for its intended purpose, and the
strategy, organization, and resources necessary to
avoid harm to the environment and human health from
hydrocarbons;
``(E) an analysis of the potential impacts of the
worst-case-scenario discharge of hydrocarbons on the
marine, coastal, and human environments for activities
conducted pursuant to the proposed exploration plan;
and
``(F) such other information deemed pertinent by the
Secretary.''.
(d) Drilling Permits.--Section 11(d) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1340(d)) is amended by to read as follows:
``(d) Drilling Permits.--
``(1) In general.--The Secretary shall, by regulation,
require that any lessee operating under an approved exploration
plan obtain a permit prior to drilling any well in accordance
with such plan, and prior to any significant modification of
the well design as originally approved by the Secretary.
``(2) Engineering review required.--The Secretary may not
grant any drilling permit or modification of the permit prior
to completion of a full engineering review of the well system,
including a determination that critical safety systems,
including blowout prevention, will utilize best available
technology and that blowout prevention systems will include
redundancy and remote triggering capability.
``(3) Operator safety and environmental management
required.--The Secretary shall not grant any drilling permit or
modification of the permit prior to completion of a safety and
environmental management plan to be utilized by the operator
during all well operations.''.
(e) Exploration Permit Requirements.--Section 11(g) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1340(g)) is amended by--
(1) striking ``shall be issued'' and inserting ``may be
issued'';
(2) inserting ``and after consultation with the Secretary of
Commerce,'' after ``in accordance with regulations issued by
the Secretary'';
(3) striking the ``and'' at the end of paragraph (2);
(4) in paragraph (3) striking ``will not be unduly harmful
to'' and inserting ``is not likely to harm'';
(5) striking the period at the end of paragraph (3) and
inserting a semicolon; and
(6) adding at the end the following:
``(4) the exploration will be conducted in accordance with
other applicable environmental and natural resource
conservation laws;
``(5) in the case of geophysical surveys, the applicant shall
use the best available technologies and methods to minimize
impacts on marine life; and
``(6) in the case of drilling operations, the applicant has
available oil spill response and clean-up equipment and
technology that has been demonstrated to be capable of
effectively remediating a worst-case release of oil.''.
(f) Environmental Review of Plans; Deepwater Plan; Plan
Disapproval.--Section 11 of the Outer Continental Shelf Lands Act (43
U.S.C. 1340) is amended by adding at the end the following:
``(i) Environmental Review of Plans.--The Secretary shall treat the
approval of an exploration plan, or a significant revision of such a
plan, as an agency action requiring preparation of an environmental
assessment or environmental impact statement in accordance with the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and
shall require that such plan--
``(1) be based on the best available technology to ensure
safety in carrying out both the drilling of the well and any
oil spill response; and
``(2) contain a technical systems analysis of the safety of
the proposed activity, the blowout prevention technology, and
the blowout and spill response plans.
``(j) Disapproval of Plan.--
``(1) In general.--The Secretary shall disapprove the plan if
the Secretary determines, because of exceptional geological
conditions in the lease areas, exceptional resource values in
the marine or coastal environment, or other exceptional
circumstances, that--
``(A) implementation of the plan would probably cause
serious harm or damage to life (including fish and
other aquatic life), to property, to any mineral
deposits (in areas leased or not leased), to the
national security or defense, or to the marine,
coastal, or human environments;
``(B) the threat of harm or damage will not disappear
or decrease to an acceptable extent within a reasonable
period of time; and
``(C) the advantages of disapproving the plan
outweigh the advantages of exploration.
``(2) Cancellation of lease for disapproval of plan.--If a
plan is disapproved under this subsection, the Secretary may
cancel such lease in accordance with subsection (c)(1) of this
section.''.
SEC. 209. OUTER CONTINENTAL SHELF LEASING PROGRAM.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344)
is amended--
(1) in subsection (a) in the second sentence by striking
``meet national energy needs'' and inserting ``balance national
energy needs and the protection of the marine and coastal
environment and all the resources in that environment,'';
(2) in subsection (a)(1), by striking ``considers'' and
inserting ``gives equal consideration to'';
(3) in subsection (a)(2)(A)--
(A) by striking ``existing'' and inserting ``the best
available scientific''; and
(B) by inserting ``, including at least three
consecutive years of data'' after ``information'';
(4) in subsection (a)(2)(D), by inserting ``, potential and
existing sites of renewable energy installations'' after
``deepwater ports,'';
(5) in subsection (a)(2)(H), by inserting ``including the
availability of infrastructure to support oil spill response''
before the period;
(6) in subsection (a)(3), by--
(A) striking ``to the maximum extent practicable,'';
(B) striking ``obtain a proper balance between'' and
inserting ``minimize''; and
(C) striking ``damage,'' and all that follows through
the period and inserting ``damage and adverse impacts
on the marine, coastal, and human environments, and
enhancing the potential for the discovery of oil and
gas.'';
(7) in subsection (b)(1), by inserting ``environmental,
marine, and energy'' after ``obtain'';
(8) in subsection (b)(2), by inserting ``environmental,
marine, and'' after ``interpret the'';
(9) in subsection (b)(3), by striking ``and'' after the
semicolon at the end;
(10) by striking the period at the end of subsection (b)(4)
and inserting a semicolon;
(11) by adding at the end of subsection (b) the following:
``(5) provide technical review and oversight of exploration
plans and a systems review of the safety of well designs and
other operational decisions;
``(6) conduct regular and thorough safety reviews and
inspections; and
``(7) enforce all applicable laws and regulations.'';
(12) in the first sentence of subsection (c)(1), by inserting
``the National Oceanic and Atmospheric Administration and''
after ``including'';
(13) in subsection (c)(2)--
(A) by inserting after the first sentence the
following: ``The Secretary shall also submit a copy of
such proposed program to the head of each Federal
agency referred to in, or that otherwise provided
suggestions under, paragraph (1).'';
(B) in the third sentence, by inserting ``or head of
a Federal agency'' after ``such Governor''; and
(C) in the fourth sentence, by inserting ``or between
the Secretary and the head of a Federal agency,'' after
``affected State,'';
(14) in the second sentence of subsection (d)(2), by
inserting ``, the head of a Federal agency,'' after ``Attorney
General'';
(15) in subsection (g), by inserting after the first sentence
the following: ``Such information may include existing
inventories and mapping of marine resources previously
undertaken by the Department of the Interior and the National
Oceanic and Atmospheric Administration, information provided by
the Department of Defense, and other available data regarding
energy or mineral resource potential, navigation uses,
fisheries, aquaculture uses, recreational uses, habitat,
conservation, and military uses on the outer Continental
Shelf.''; and
(16) by adding at the end the following new subsection:
``(i) Research and Development.--The Secretary shall carry out a
program of research and development to ensure the continued improvement
of methodologies for characterizing resources of the outer Continental
Shelf and conditions that may affect the ability to develop and use
those resources in a safe, sound, and environmentally responsible
manner. Such research and development activities may include activities
to provide accurate estimates of energy and mineral reserves and
potential on the Outer Continental Shelf and any activities that may
assist in filling gaps in environmental data needed to develop each
leasing program under this section.''.
SEC. 210. ENVIRONMENTAL STUDIES.
(a) Information Needed for Assessment and Management of Environmental
Impacts.--Section 20 of the Outer Continental Shelf Lands Act (43
U.S.C. 1346) is amended by striking so much as precedes subsection
(a)(2) and inserting the following:
``SEC. 20. ENVIRONMENTAL STUDIES.
``(a)(1) The Secretary, in cooperation with the Secretary of
Commerce, shall conduct a study no less than once every three years of
any area or region included in any oil and gas lease sale or other
lease in order to establish information needed for assessment and
management of environmental impacts on the human, marine, and coastal
environments of the outer Continental Shelf and the coastal areas which
may be affected by oil and gas or other mineral development in such
area or region.''.
(b) Impacts of Deep Water Spills.--Section 20 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1346) is amended by--
(1) redesignating subsections (c) through (f) as (d) through
(g); and
(2) inserting after subsection (b) the following new
subsection:
``(c) The Secretary shall conduct research to identify and reduce
data gaps related to impacts of deepwater hydrocarbon spills,
including--
``(1) effects to benthic substrate communities and species;
``(2) water column habitats and species;
``(3) surface and coastal impacts from spills originating in
deep waters; and
``(4) the use of dispersants.''.
SEC. 211. SAFETY REGULATIONS.
Section 21 of the Outer Continental Shelf Lands Act (43 U.S.C. 1347)
is amended--
(1) in subsection (a), by striking ``Upon the date of
enactment of this section,'' and inserting ``Within 6 months
after the date of enactment of the Outer Continental Shelf
Lands Act Amendments of 2010 and every three years
thereafter,'';
(2) in subsection (b) by--
(A) striking ``for the artificial islands,
installations, and other devices referred to in section
4(a)(1) of'' and inserting ``under'';
(B) striking ``which the Secretary determines to be
economically feasible''; and
(C) adding at the end ``Not later than 6 months after
the date of enactment of the Outer Continental Shelf
Lands Act Amendments of 2010 and every 3 years
thereafter, the Secretary shall, in consultation with
the Outer Continental Shelf Safety and Environmental
Advisory Board established under title I of the
Consolidated Land, Energy, and Aquatic Resources Act of
2010, identify and publish an updated list of (1) the
best available technologies for key areas of well
design and operation, including blowout prevention and
blowout and oil spill response and (2) technology needs
for which the Secretary intends to identify best
available technologies in the future.''; and
(3) by adding at the end the following:
``(g) Safety Case.--Not later than 6 months after the date of
enactment of the Outer Continental Shelf Lands Act Amendments of 2010,
the Secretary shall promulgate regulations requiring a safety case be
submitted along with each new application for a permit to drill on the
outer Continental Shelf. Not later than 5 years after the date final
regulations promulgated under this subsection go into effect, and not
less than every 5 years thereafter, the Secretary shall enter into an
arrangement with the National Academy of Engineering to conduct a study
to assess the effectiveness of these regulations and to recommend
improvements in their administration.
``(h) Offshore Technology Research and Risk Assessment Program.--
``(1) In general.--The Secretary shall carry out a program of
research, development, and risk assessment to address
technology and development issues associated with exploration
for, and development and production of, energy and mineral
resources on the outer Continental Shelf, with the primary
purpose of informing its role relating to safety, environmental
protection, and spill response.
``(2) Specific focus areas.--The program under this
subsection shall include research and development related to--
``(A) risk assessment, using all available data from
safety and compliance records both within the United
States and internationally;
``(B) analysis of industry trends in technology,
investment, and frontier areas;
``(C) reviews of best available technologies,
including those associated with pipelines, blowout
preventer mechanisms, casing, well design, and other
associated infrastructure related to offshore energy
development;
``(D) oil spill response and mitigation;
``(E) risk associated with human factors;
``(F) technologies and methods to reduce the impact
of geophysical exploration activities on marine life;
and
``(G) renewable energy operations.''.
SEC. 212. ENFORCEMENT OF SAFETY AND ENVIRONMENTAL REGULATIONS.
Section 22 of the Outer Continental Shelf Lands Act (43 U.S.C. 1348)
is amended--
(1) by amending subsection (c) to read as follows:
``(c) Inspections.--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;
``(2) scheduled onsite inspection, at least once a month, of
each facility on the outer Continental Shelf engaged in
drilling operations and 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;
``(3) periodic onsite inspection without advance notice to
the operator of such facility to assure compliance with such
environmental or safety regulations; and
``(4) periodic audits of each required safety and
environmental management plan, and any associated safety case,
both with respect to their implementation at each facility on
the outer Continental Shelf for which such a plan or safety
case is required and with respect to onshore management support
for activities at such a facility.'';
(2) in subsection (d)(1)--
(A) by striking ``each major fire and each major oil
spillage'' and inserting ``each major fire, each major
oil spillage, each loss of well control, and any other
accident that presented a serious risk to human or
environmental safety''; and
(B) by inserting before the period at the end the
following: ``, as a condition of the lease or permit'';
(3) in subsection (d)(2), by inserting before the period at
the end the following: ``as a condition of the lease or
permit'';
(4) in subsection (e), by adding at the end the following:
``Any such allegation from any employee of the lessee or any
subcontractor of the lessee shall be investigated by the
Secretary.'';
(5) in subsection (b)(1), by striking ``recognized'' and
inserting ``uncontrolled''; and
(6) by adding at the end the following:
``(g) Information on Causes and Corrective Actions.--For any incident
investigated under this section, the Secretary shall promptly make
available to all lessees and the public technical information about the
causes and corrective actions taken. All data and reports related to
any such incident shall be maintained in a data base available to the
public.
``(h) Operator's Annual Certification.--
``(1) The Secretary, in cooperation with the Secretary of the
department in which the Coast Guard is operating, shall require
all operators of all new and existing drilling and production
operations to annually certify that their operations are being
conducted in accordance with applicable law and regulations.
``(2) Each certification shall include, but, not be limited
to, statements that verify the operator has--
``(A) examined all well control system equipment
(both surface and subsea) being used to ensure that it
has been properly maintained and is capable of shutting
in the well during emergency operations;
``(B) examined and conducted tests to ensure that the
emergency equipment has been function-tested and is
capable of addressing emergency situations;
``(C) reviewed all rig drilling, casing, cementing,
well abandonment (temporary and permanent), completion,
and workover practices to ensure that well control is
not compromised at any point while emergency equipment
is installed on the wellhead;
``(D) reviewed all emergency shutdown and dynamic
positioning procedures that interface with emergency
well control operations; and
``(E) taken the necessary steps to ensure that all
personnel involved in well operations are properly
trained and capable of performing their tasks under
both normal drilling and emergency well control
operations.
``(i) CEO Annual Certification.--Operators of all drilling and
production operations shall annually submit to the Secretary a general
statement by the operator's chief executive officer that certifies to
the operators' compliance with all applicable laws and operating
regulations.
``(j) Third Party Certification.--All operators that modify or
upgrade any emergency equipment placed on any operation to prevent
blow-outs or other well control events, shall have an independent third
party conduct a detailed physical inspection and design review of such
equipment within 30-days of its installation. The independent third
party shall certify that the equipment will operate as originally
designed and any modifications or upgrades conducted after delivery
have not compromised the design, performance or functionality of the
equipment. Failure to comply with this subsection shall result in
suspension of the lease.''.
SEC. 213. JUDICIAL REVIEW.
Section 23(c)(3) of the Outer Continental Shelf Lands Act (43 U.S.C.
1349(c)(3)) is amended by striking ``sixty'' and inserting ``90''.
SEC. 214. REMEDIES AND PENALTIES.
(a) Civil Penalty, Generally.--Section 24(b) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1350(b)) is amended to read as follows:
``(b)(1) Except as provided in paragraph (2), any person who fails to
comply with any provision of this Act, or any term of a lease, license,
or permit issued pursuant to this Act, or any regulation or order
issued under this Act, shall be liable for a civil administrative
penalty of not more than $75,000 for each day of the continuance of
such failure. The Secretary may assess, collect, and compromise any
such penalty. No penalty shall be assessed until the person charged
with a violation has been given an opportunity for a hearing. The
Secretary shall, by regulation at least every 3 years, adjust the
penalty specified in this paragraph to reflect any increases in the
Consumer Price Index (all items, United States city average) as
prepared by the Department of Labor.
``(2) If a failure described in paragraph (1) constitutes or
constituted a threat of harm or damage to life (including fish and
other aquatic life), property, any mineral deposit, or the marine,
coastal, or human environment, a civil penalty of not more than
$150,000 shall be assessed for each day of the continuance of the
failure.''.
(b) Knowing and Willful Violations.--Section 24(c) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1350(c)) is amended in paragraph
(4) by striking ``$100,000$100,000'' and inserting ``$10,000,000''.
(c) Officers and Agents of Corporations.--Section 24(d) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1350(d)) is amended by inserting
``, or with willful disregard,'' after ``knowingly and willfully''.
SEC. 215. UNIFORM PLANNING FOR OUTER CONTINENTAL SHELF.
Section 25 of the Outer Continental Shelf Lands Act (43 U.S.C. 1351)
is amended--
(1) by striking ``other than the Gulf of Mexico,'' in each
place it appears;
(2) in subsection (c), by striking ``and'' after the
semicolon at the end of paragraph (5), redesignating paragraph
(6) as paragraph (11), and inserting after paragraph (5) the
following new paragraphs:
``(6) a detailed and accurate description of equipment to be
used for the drilling of wells pursuant to activities included
in the development and production plan, including--
``(A) a description of the drilling unit or units;
``(B) a statement of the design and condition of
major safety-related pieces of equipment, including
independent third-party certification of such
equipment; and
``(C) a description of any new technology to be used;
``(7) a scenario for the potential blowout of each well to be
drilled as part of the plan involving the highest potential
volume of liquid hydrocarbons, along with a complete
description of a response plan to both control the blowout and
manage the accompanying discharge of hydrocarbons, including
the likelihood for surface intervention to stop the blowout,
the availability of a rig to drill a relief well, an estimate
of the time it would take to drill a relief well, a description
of other technology that may be used to regain control of the
well or capture escaping hydrocarbons and the potential
timeline for using that technology for its intended purpose,
and the strategy, organization, and resources necessary to
avoid harm to the environment and human health from
hydrocarbons;
``(8) an analysis of the potential impacts of the worst-case-
scenario discharge on the marine, coastal, and human
environments for activities conducted pursuant to the proposed
development and production plan;
``(9) a comprehensive survey and characterization of the
coastal or marine environment within the area of operation,
including bathymetry, currents and circulation patterns within
the water column, and descriptions of benthic and pelagic
environments;
``(10) a description of the technologies to be deployed on
the facilities to routinely observe and monitor in real time
the marine environment throughout the duration of operations,
and a description of the process by which such observation data
and information will be made available to Federal regulators
and to the System established under section 12304 of Public Law
111-11 (33 U.S.C. 3603); and'';
(3) in subsection (e), by striking so much as precedes
paragraph (2) and inserting the following:
``(e)(1) The Secretary shall treat the approval of a development and
production plan, or a significant revision of a development and
production plan, as an agency action requiring preparation of an
environmental assessment or environmental impact statement, in
accordance with the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).'';
(4) by striking subsections (g) and (l), and redesignating
subsections (h) through (k) as subsections (g) through and (j);
and
(5) in subsection (g), as so redesignated, by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4), respectively,
and inserting after paragraph (1) the following:
``(2) The Secretary shall not approve a development and
production plan, or a significant revision to such a plan,
unless-
``(A) the plan is in compliance with all other
applicable environmental and natural resource
conservation laws; and
``(B) the applicant has available oil spill response
and clean-up equipment and technology that has been
demonstrated to be capable of effectively remediating
the projected worst-case release of oil from activities
conducted pursuant to the development and production
plan.''.
SEC. 216. OIL AND GAS INFORMATION PROGRAM.
Section 26(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C.
1352(a)(1)) is amended by--
(1) striking the period at the end of subparagraph (A) and
inserting, ``, provided that such data shall be transmitted in
electronic format either in real-time or as quickly as
practicable following the generation of such data.''; and
(2) striking subparagraph (C) and inserting the following:
``(C) Lessees engaged in drilling operations shall
provide to the Secretary all daily reports generated by
the lessee, or any daily reports generated by
contractors or subcontractors engaged in or supporting
drilling operations on the lessee's lease, no more than
24 hours after the end of the day for which they should
have been generated.''.
SEC. 217. LIMITATION ON ROYALTY-IN-KIND PROGRAM.
Section 27(a) of the Outer Continental Shelf Lands Act (43 U.S.C.
1353(a)) is amended by striking the period at the end of paragraph (1)
and inserting ``, except that the Secretary shall not conduct a regular
program to take oil and gas lease royalties in oil or gas.''.
SEC. 218. RESTRICTIONS ON EMPLOYMENT.
Section 29 of the Outer Continental Shelf Lands Act (43 U.S.C. 1355)
is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``sec. 29'' and all that follows
through ``No full-time'' and inserting the following:
``SEC. 29. RESTRICTIONS ON EMPLOYMENT.
``(a) In General.--No full-time''; and
(B) by striking ``, and who was at any time during
the twelve months preceding the termination of his
employment with the Department compensated under the
Executive Schedule or compensated at or above the
annual rate of basic pay for grade GS-16 of the General
Schedule'';
(2) in paragraph (1)--
(A) in subparagraph (A), by inserting ``or advise''
after ``represent'';
(B) in subparagraph (B), by striking ``with the
intent to influence, make'' and inserting ``act with
the intent to influence, directly or indirectly, or
make''; and
(C) in the matter following subparagraph (C)--
(i) by inserting ``inspection or enforcement
action,'' before ``or other particular
matter''; and
(ii) by striking ``or'' at the end;
(3) in paragraph (2)--
(A) in subparagraph (A), by inserting ``or advise''
after ``represent'';
(B) in subparagraph (B), by striking ``with the
intent to influence, make'' and inserting ``act with
the intent to influence, directly or indirectly, or
make''; and
(C) by striking the period at the end and inserting
``; or''; and
(4) by adding at the end the following:
``(3) during the 2-year period beginning on the date on which
the employment of the officer or employee ceased at the
Department, accept employment or compensation from any party
that has a direct and substantial interest--
``(A) that was pending under the official
responsibility of the officer or employee as an officer
at any point during the 2-year period preceding the
date of termination of the responsibility; or
``(B) in which the officer or employee participated
personally and substantially as an officer or employee
of the Department.
``(b) Prior Dealings.--No full-time officer or employee of the
Department of the Interior who directly or indirectly discharged duties
or responsibilities under this Act shall participate personally and
substantially as a Federal officer or employee, through decision,
approval, disapproval, recommendation, the rendering of advice,
investigation, or otherwise, in a proceeding, application, request for
a ruling or other determination, contract, claim, controversy, charge,
accusation, inspection, enforcement action, or other particular matter
in which, to the knowledge of the officer or employee--
``(1) the officer or employee or the spouse, minor child, or
general partner of the officer or employee has a financial
interest;
``(2) any organization in which the officer or employee is
serving as an officer, director, trustee, general partner, or
employee has a financial interest;
``(3) any person or organization with whom the officer or
employee is negotiating or has any arrangement concerning
prospective employment has a financial interest; or
``(4) any person or organization in which the officer or
employee has, within the preceding 1-year period, served as an
officer, director, trustee, general partner, agent, attorney,
consultant, contractor, or employee.
``(c) Gifts From Outside Sources.--No full-time officer or employee
of the Department of the Interior who directly or indirectly discharges
duties or responsibilities under this Act shall, directly or
indirectly, solicit or accept any gift in violation of subpart B of
part 2635 of title 5, Code of Federal Regulations (or successor
regulations).
``(d) Penalty.--Any person that violates subsection (a) or (b) shall
be punished in accordance with section 216 of title 18, United States
Code.''.
SEC. 219. REPEAL OF ROYALTY RELIEF PROVISIONS.
(a) Repeal of Provisions of Energy Policy Act of 2005.--The following
provisions of the Energy Policy Act of 2005 (Public Law 109-58) are
repealed:
(1) Section 344 (42 U.S.C. 15904; relating to incentives for
natural gas production from deep wells in shallow waters of the
Gulf of Mexico).
(2) Section 345 (42 U.S.C. 15905; relating to royalty relief
for deep water production in the Gulf of Mexico).
(b) Repeal of Provisions Relating to Planning Areas Offshore
Alaska.--Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(a)(3)(B)) is amended by striking ``and in the Planning
Areas offshore Alaska''.
SEC. 220. MANNING AND BUY- AND BUILD-AMERICAN REQUIREMENTS.
Section 30 of the Outer Continental Shelf Lands Act (43 U.S.C. 1356)
is amended--
(1) in subsection (a), by striking ``shall issue regulations
which'' and inserting ``shall issue regulations that shall be
supplemental to and complementary with and under no
circumstances a substitution for the provisions of the
Constitution and laws of the United States extended to the
subsoil and seabed of the outer Continental Shelf pursuant to
section 4(a)(1) of this Act, except insofar as such laws would
otherwise apply to individuals who have extraordinary ability
in the sciences, arts, education, or business, which has been
demonstrated by sustained national or international acclaim,
and that''; and
(2) by adding at the end the following:
``(d) Buy and Build American.--It is the intention of the Congress
that this Act, among other things, result in a healthy and growing
American industrial, manufacturing, transportation, and service sector
employing the vast talents of America's workforce to assist in the
development of energy from the outer Continental Shelf. Moreover, the
Congress intends to monitor the deployment of personnel and material on
the outer Continental Shelf to encourage the development of American
technology and manufacturing to enable United States workers to benefit
from this Act by good jobs and careers, as well as the establishment of
important industrial facilities to support expanded access to American
resources.''.
SEC. 221. NATIONAL COMMISSION ON OUTER CONTINENTAL SHELF OIL SPILL
PREVENTION.
(a) Establishment.--There is established in the Legislative branch
the National Commission on Outer Continental Shelf Oil Spill Prevention
(referred to in this section as the ``Commission'').
(b) Purposes.--The purposes of the Commission are--
(1) to examine and report on the facts and causes relating to
the Deepwater Horizon explosion and oil spill of 2010;
(2) to ascertain, evaluate, and report on the evidence
developed by all relevant governmental agencies regarding the
facts and circumstances surrounding the incident;
(3) to build upon the investigations of other entities, and
avoid unnecessary duplication, by reviewing the findings,
conclusions, and recommendations of--
(A) the Committees on Energy and Natural Resources
and Commerce, Science, and Transportation of the
Senate;
(B) the Committee on Natural Resources and the
Subcommittee on Oversight and Investigations of the
House of Representatives; and
(C) other Executive branch, congressional, or
independent commission investigations into the
Deepwater Horizon incident of 2010, other fatal oil
platform accidents and major spills, and major oil
spills generally;
(4) to make a full and complete accounting of the
circumstances surrounding the incident, and the extent of the
preparedness of the United States for, and immediate response
of the United States to, the incident; and
(5) to investigate and report to the President and Congress
findings, conclusions, and recommendations for corrective
measures that may be taken to prevent similar incidents.
(c) Composition of Commission.--
(1) Members.--The Commission shall be composed of 10 members,
of whom--
(A) 1 member shall be appointed by the President, who
shall serve as Chairperson of the Commission;
(B) 1 member shall be appointed by the majority or
minority (as the case may be) leader of the Senate from
the Republican Party and the majority or minority (as
the case may be) leader of the House of Representatives
from the Republican Party, who shall serve as Vice
Chairperson of the Commission;
(C) 2 members shall be appointed by the senior member
of the leadership of the Senate from the Democratic
Party;
(D) 2 members shall be appointed by the senior member
of the leadership of the House of Representatives from
the Republican Party;
(E) 2 members shall be appointed by the senior member
of the leadership of the Senate from the Republican
Party; and
(F) 2 members shall be appointed by the senior member
of the leadership of the House of Representatives from
the Democratic Party.
(2) Qualifications; initial meeting.--
(A) Political party affiliation.--Not more than 5
members of the Commission shall be from the same
political party.
(B) Nongovernmental appointees.--An individual
appointed to the Commission may not be a current
officer or employee of the Federal Government or any
State or local government.
(C) Other qualifications.--It is the sense of
Congress that individuals appointed to the Commission
should be prominent United States citizens, with
national recognition and significant depth of
experience and expertise in such areas as--
(i) engineering;
(ii) environmental compliance;
(iii) health and safety law (particularly oil
spill legislation);
(iv) oil spill insurance policies;
(v) public administration;
(vi) oil and gas exploration and production;
(vii) environmental cleanup; and
(viii) fisheries and wildlife management.
(D) Deadline for appointment.--All members of the
Commission shall be appointed on or before September
15, 2010.
(E) Initial meeting.--The Commission shall meet and
begin the operations of the Commission as soon as
practicable after the date of enactment of this Act.
(3) Quorum; vacancies.--
(A) In general.--After the initial meeting of the
Commission, the Commission shall meet upon the call of
the Chairperson or a majority of the members of the
Commission.
(B) Quorum.--6 members of the Commission shall
constitute a quorum.
(C) Vacancies.--Any vacancy in the Commission shall
not affect the powers of the Commission, but shall be
filled in the same manner in which the original
appointment was made.
(d) Functions of Commission.--
(1) In general.--The functions of the Commission are--
(A) to conduct an investigation that--
(i) investigates relevant facts and
circumstances relating to the Deepwater Horizon
incident of April 20, 2010, and the associated
oil spill thereafter, including any relevant
legislation, Executive order, regulation, plan,
policy, practice, or procedure; and
(ii) may include relevant facts and
circumstances relating to--
(I) permitting agencies;
(II) environmental and worker safety
law enforcement agencies;
(III) national energy requirements;
(IV) deepwater and ultradeepwater oil
and gas exploration and development;
(V) regulatory specifications,
testing, and requirements for offshore
oil and gas well explosion prevention;
(VI) regulatory specifications,
testing, and requirements offshore oil
and gas well casing and cementing
regulation;
(VII) the role of congressional
oversight and resource allocation; and
(VIII) other areas of the public and
private sectors determined to be
relevant to the Deepwater Horizon
incident by the Commission;
(B) to identify, review, and evaluate the lessons
learned from the Deepwater Horizon incident of April
20, 2010, regarding the structure, coordination,
management policies, and procedures of the Federal
Government, and, if appropriate, State and local
governments and nongovernmental entities, and the
private sector, relative to detecting, preventing, and
responding to those incidents; and
(C) to submit to the President and Congress such
reports as are required under this section containing
such findings, conclusions, and recommendations as the
Commission determines to be appropriate, including
proposals for organization, coordination, planning,
management arrangements, procedures, rules, and
regulations.
(2) Relationship to inquiry by congressional committees.--In
investigating facts and circumstances relating to energy
policy, the Commission shall--
(A) first review the information compiled by, and any
findings, conclusions, and recommendations of, the
committees identified in subparagraphs (A) and (B) of
subsection (b)(3); and
(B) after completion of that review, pursue any
appropriate area of inquiry, if the Commission
determines that--
(i) those committees have not investigated
that area;
(ii) the investigation of that area by those
committees has not been completed; or
(iii) new information not reviewed by the
committees has become available with respect to
that area.
(e) Powers of Commission.--
(1) Hearings and evidence.--The Commission or, on the
authority of the Commission, any subcommittee or member of the
Commission, may, for the purpose of carrying out this section--
(A) hold such hearings, meet and act at such times
and places, take such testimony, receive such evidence,
and administer such oaths; and
(B) require, by subpoena or otherwise, the attendance
and testimony of such witnesses and the production of
such books, records, correspondence, memoranda, papers,
documents, tapes, and materials;
as the Commission or such subcommittee or member considers to be
advisable.
(2) Subpoenas.--
(A) Issuance.--
(i) In general.--A subpoena may be issued
under this paragraph only--
(I) by the agreement of the
Chairperson and the Vice Chairperson;
or
(II) by the affirmative vote of 6
members of the Commission.
(ii) Signature.--Subject to clause (i), a
subpoena issued under this paragraph--
(I) shall bear the signature of the
Chairperson or any member designated by
a majority of the Commission;
(II) and may be served by any person
or class of persons designated by the
Chairperson or by a member designated
by a majority of the Commission for
that purpose.
(B) Enforcement.--
(i) In general.--In the case of contumacy or
failure to obey a subpoena issued under
subparagraph (A), the United States district
court for the district in which the subpoenaed
person resides, is served, or may be found, or
where the subpoena is returnable, may issue an
order requiring the person to appear at any
designated place to testify or to produce
documentary or other evidence.
(ii) Judicial action for noncompliance.--Any
failure to obey the order of the court may be
punished by the court as a contempt of that
court.
(iii) Additional enforcement.--In the case of
any failure of any witness to comply with any
subpoena or to testify when summoned under
authority of this subsection, the Commission
may, by majority vote, certify a statement of
fact constituting such failure to the
appropriate United States attorney, who may
bring the matter before the grand jury for
action, under the same statutory authority and
procedures as if the United States attorney had
received a certification under sections 102
through 104 of the Revised Statutes (2 U.S.C.
192 through 194).
(3) Contracting.--The Commission may, to such extent and in
such amounts as are provided in appropriation Acts, enter into
contracts to enable the Commission to discharge the duties of
the Commission under this section.
(4) Information from federal agencies.--
(A) In general.--The Commission may secure directly
from any Executive department, bureau, agency, board,
commission, office, independent establishment, or
instrumentality of the Federal Government, information,
suggestions, estimates, and statistics for the purposes
of this section.
(B) Cooperation.--Each Federal department, bureau,
agency, board, commission, office, independent
establishment, or instrumentality shall, to the extent
authorized by law, furnish information, suggestions,
estimates, and statistics directly to the Commission,
upon request made by the Chairperson, the Chairperson
of any subcommittee created by a majority of the
Commission, or any member designated by a majority of
the Commission.
(C) Receipt, handling, storage, and dissemination.--
Information shall be received, handled, stored, and
disseminated only by members of the Commission and the
staff of the Commission in accordance with all
applicable laws (including regulations and Executive
orders).
(5) Assistance from federal agencies.--
(A) General services administration.--The
Administrator of General Services shall provide to the
Commission on a reimbursable basis administrative
support and other services for the performance of the
functions of the Commission.
(B) Other departments and agencies.--In addition to
the assistance prescribed in subparagraph (A),
departments and agencies of the United States may
provide to the Commission such services, funds,
facilities, staff, and other support services as are
determined to be advisable and authorized by law.
(6) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property, including travel,
for the direct advancement of the functions of the Commission.
(7) Postal services.--The Commission may use the United
States mails in the same manner and under the same conditions
as departments and agencies of the United States.
(f) Public Meetings and Hearings.--
(1) Public meetings and release of public versions of
reports.--The Commission shall--
(A) hold public hearings and meetings, to the extent
appropriate; and
(B) release public versions of the reports required
under paragraphs (1) and (2) of subsection (j).
(2) Public hearings.--Any public hearings of the Commission
shall be conducted in a manner consistent with the protection
of proprietary or sensitive information provided to or
developed for or by the Commission as required by any
applicable law (including a regulation or Executive order).
(g) Staff of Commission.--
(1) In general.--
(A) Appointment and compensation.--
(i) In general.--The Chairperson, in
consultation with the Vice Chairperson and in
accordance with rules agreed upon by the
Commission, may, without regard to the civil
service laws (including regulations), appoint
and fix the compensation of a staff director
and such other personnel as are necessary to
enable the Commission to carry out the
functions of the Commission.
(ii) Maximum rate of pay.--No rate of pay
fixed under this subparagraph may exceed the
equivalent of that payable for a position at
level V of the Executive Schedule under section
5316 of title 5, United States Code.
(B) Personnel as federal employees.--
(i) In general.--The staff director and any
personnel of the Commission who are employees
shall be considered to be employees under
section 2105 of title 5, United States Code,
for purposes of chapters 63, 81, 83, 84, 85,
87, 89, and 90 of that title.
(ii) Members of commission.--Clause (i) shall
not apply to members of the Commission.
(2) Detailees.--
(A) In general.--An employee of the Federal
Government may be detailed to the Commission without
reimbursement.
(B) Civil service status.--The detail of the employee
shall be without interruption or loss of civil service
status or privilege.
(3) Procurement of temporary and intermittent services.--The
Chairperson of the Commission may procure temporary and
intermittent services in accordance with section 3109(b) of
title 5, United States Code, at rates for individuals that do
not exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under section
5316 of that title.
(h) Compensation and Travel Expenses.--
(1) Compensation of members.--
(A) Non-federal employees.--A member of the
Commission who is not an officer or employee of the
Federal Government shall be compensated at a rate equal
to the daily equivalent of the annual rate of basic pay
prescribed for level IV of the Executive Schedule under
section 5315 of title 5, United States Code, for each
day (including travel time) during which the member is
engaged in the performance of the duties of the
Commission.
(B) Federal employees.--A member of the Commission
who is an officer or employee of the Federal Government
shall serve without compensation in addition to the
compensation received for the services of the member as
an officer or employee of the Federal Government.
(2) Travel expenses.--A member of the Commission shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for an employee of an agency
under subchapter I of chapter 57 of title 5, United States
Code, while away from the home or regular place of business of
the member in the performance of the duties of the Commission.
(i) Security Clearances for Commission Members and Staff.--
(1) In general.--Subject to paragraph (2), the appropriate
Federal agencies or departments shall cooperate with the
Commission in expeditiously providing to the members and staff
of the Commission appropriate security clearances, to the
maximum extent practicable, pursuant to existing procedures and
requirements.
(2) Proprietary information.--No person shall be provided
with access to proprietary information under this section
without the appropriate security clearances.
(j) Reports of Commission; Adjournment.--
(1) Interim reports.--The Commission may submit to the
President and Congress interim reports containing such
findings, conclusions, and recommendations for corrective
measures as have been agreed to by a majority of members of the
Commission.
(2) Final report.--Not later than 180 days after the date of
the enactment of this Act, the Commission shall submit to the
President and Congress a final report containing such findings,
conclusions, and recommendations for corrective measures as
have been agreed to by a majority of members of the Commission.
(3) Temporary adjournment.--
(A) In general.--The Commission, and all the
authority provided under this section, shall adjourn
and be suspended, respectively, on the date that is 60
days after the date on which the final report is
submitted under paragraph (2).
(B) Administrative activities before termination.--
The Commission may use the 60-day period referred to in
subparagraph (A) for the purpose of concluding
activities of the Commission, including--
(i) providing testimony to committees of
Congress concerning reports of the Commission;
and
(ii) disseminating the final report submitted
under paragraph (2).
(C) Reconvening of commission.--The Commission shall
stand adjourned until such time as the President or the
Secretary of Homeland Security declares an oil spill of
national significance to have occurred, at which time--
(i) the Commission shall reconvene in
accordance with subsection (c)(3); and
(ii) the authority of the Commission under
this section shall be of full force and effect.
(k) Funding.--
(1) Authorization of appropriations.--There are authorized to
be appropriated to carry out this section--
(A) $10,000,000 for the first fiscal year in which
the Commission convenes; and
(B) $3,000,000 for each fiscal year thereafter in
which the Commission convenes.
(2) Availability.--Amounts made available to carry out this
section shall be available--
(A) for transfer to the Commission for use in
carrying out the functions and activities of the
Commission under this section; and
(B) until the date on which the Commission adjourns
for the fiscal year under subsection (j)(3).
(l) Nonapplicability of Federal Advisory Committee Act.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the
Commission.
Subtitle B--Safety, Environmental, and Financial Reform of the Federal
Onshore Oil and Gas Leasing Program
SEC. 231. DILIGENT DEVELOPMENT.
(a) Regulations.--The Secretary shall issue regulations within one
year after the date of enactment of this Act that define ``diligent
development'' for purposes of all new leases issued under the Mineral
Leasing Act (30 U.S.C. 181 et seq.) and all new leases issued under the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.). Such
regulations shall--
(1) include benchmarks for oil and gas development that will
ensure that leaseholders take all appropriate measures
necessary to produce oil and gas from each lease that contains
commercial quantities of oil and gas within the original term
of the lease;
(2) require each leaseholder to submit to the Secretary a
diligent development plan showing how the lessee will meet the
benchmarks;
(3) provide accommodation for development delays, including
lease suspensions, directed by the Secretary that restrict
diligent development in order to meet environmental
stipulations and considerations; and
(4) require submission of diligent development plans in an
electronic format proscribed by the Secretary, which the
Secretary shall make available for public review.
(b) Beginning of Lease Term.--The regulations shall provide that the
term of a lease shall not begin until the completion of all civil
actions challenging--
(1) the issuance of the lease; and
(2) the issuance of all permits required to initiate
operations under the lease.
(c) Failure to Comply With Requirements.--If any person fails to
comply with the requirements of any regulation issued under this
section, or any order issued to implement such a regulation, with
respect to a lease, such lease may be terminated by the Secretary.
SEC. 232. REPORTING REQUIREMENTS.
(a) Biannual Reports.--The Secretary shall require biannual reports
from each Federal oil and gas lessee that holds a nonproducing lease on
the actions the lessee has taken to diligently develop each Federal
lease the lessee holds.
(b) Electronic Database.--The Secretary shall establish and maintain
an electronic database that is available to the public that identifies
each Federal oil and gas lease, each lessee under such lease, the
acreage held by each such lessee, and the progress made toward
production under each such lease.
SEC. 233. NOTICE REQUIREMENTS.
Section 17(f) of the Mineral Leasing Act (30 U.S.C. 226(f)) is
amended--
(1) by striking all through the first 2 sentences and
inserting the following:
``(f)(1) 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 to--
``(A) the general public by posting such notice in the
appropriate local office and on the electronic website of the
leasing and land management agencies offering the lands for
lease;
``(B) all surface land owners in the area of the lands being
offered for lease; and
``(C) the holders of special recreation permits for
commercial use, competitive events, and other organized
activities on the lands being offered for lease.
``(2)''; and
(2) by designating the last sentence as paragraph (3).
SEC. 234. OIL AND GAS LEASING SYSTEM.
(a) Onshore Oil and Gas Leasing.--Section 17(a) of the Mineral
Leasing Act (30 U.S.C. 226(a)) is amended to read as follows:
``(a)(1) All lands subject to disposition under this Act that are
known or believed to contain oil or gas deposits may be leased by the
Secretary.
``(2) Leasing activities under this Act shall be conducted to assure
receipt of fair market value for the lands and resources leased and the
rights conveyed by the Federal Government.''.
(b) Competitive Bidding.--Section 17(b) of the Mineral Leasing Act
(30 U.S.C. 226(b)), is amended by striking so much as precedes
paragraph (2) and inserting the following:
``(b)(1)(A) All lands to be leased 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 sealed bid. Lease sales shall be held for a State
on a statewide basis where eligible lands in such States are available
no more than 3 times per year per State, unless the Secretary of the
Interior determines additional 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 may issue a lease to the responsible qualified
bidder with the highest bid that is equal to or greater than the
national minimum acceptable bid, with evaluation of the value of the
lands proposed for lease. The Secretary shall decide whether to accept
a bid and issue a lease within 90 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. All bids for less than the
national minimum acceptable bid shall be rejected.
``(B)(i) The national minimum acceptable bid shall be $2.50 per acre,
except that the Secretary may establish a higher minimum acceptable bid
for leases of areas in a State for all leases awarded after the 2-year
period beginning on the date of enactment of the Consolidated Land,
Energy, and Aquatic Resources Act of 2010, if the Secretary finds that
such a higher amount 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.
``(ii) The proposal or promulgation of any regulation to establish a
higher minimum acceptable bid for a State shall not be considered a
major Federal action that is subject to the requirements of section
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(c)).''.
(c) Rentals.--Section 17(d) of the Mineral Leasing (30 U.S.C. 226(d))
is amended to read as follows:
``(d)(1) During the 2-year period beginning on the date of enactment
of the Consolidated Land, Energy, and Aquatic Resources Act of 2010,
all leases issued under this section shall be conditioned upon payment
by the lessee of a rental of not less than $2.50 per acre per year for
the first through fifth years of the lease and not less than $3 per
acre per year for each year thereafter. After the end of such 2-year
period, the Secretary may establish higher rental rates for all
subsequent years, if the Secretary finds that such action is
necessary--
``(A) to enhance financial returns to the United States; and
``(B) to promote more efficient management of oil and gas and
alternative energy resources on Federal lands.
``(2) A minimum royalty in lieu of rental of not less than the rental
that 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 land leased.''.
(d) Elimination of Noncompetitive Leasing.--The Mineral Leasing Act
is amended--
(1) in section 17(b) (30 U.S.C. 226(b)), by striking
paragraph (3);
(2) in section 17 (30 U.S.C. 226) by striking subsection (c);
(3) in section 17(e) (30 U.S.C. 226(e))--
(A) by striking ``Competitive and noncompetitive
leases'' and inserting ``Leases''; and
(B) by striking ``competitive'';
(4) in section 31(d)(1) (30 U.S.C. 188(d)(1) by striking ``or
section 17(c)'';
(5) in section 31(e) (30 U.S.C. 188(e))--
(A) in paragraph (2) by striking ``, or the
inclusion'' and all that follows and inserting a
semicolon; and
(B) in paragraph (3) by striking ``(A)'' and by
striking subparagraph (B);
(6) by striking section 31(f) (30 U.S.C. 188(f)); and
(7) in section 31(g) (30 U.S.C. 188(g))--
(A) in paragraph (1) by striking ``a competitive''
and all that follows through the period and inserting
``in the same manner as the original lease issued
pursuant to section 17.'';
(B) by striking paragraph (2); and
(C) in paragraph (3) by striking ``, applicable to
leases issued under subsection 17(c) of this Act (30
U.S.C. 226(c)) except,'' and inserting ``, except''.
SEC. 235. ELECTRONIC REPORTING.
(a) Rights-of-way.--Section 28(w) of the Mineral Leasing Act (30
U.S.C. 185(w)) is amended by adding at the end the following:
``(4) Upon request of a Committee listed under paragraph (2),
that Committee may receive notifications under this subsection
in electronic format in addition to in writing, or in
electronic format alone. The Committee shall designate to the
Secretary the appropriate individual or individuals on the
Committee to receive such electronic notices.''.
(b) Lease Reinstatement.--Section 31(e) of the Mineral Leasing Act
(30 U.S.C. 188(e)) is amended by adding at the end the following:
``Upon request of such a Committee, that Committee may receive
notifications under this subsection in electronic format in addition to
in writing, or in electronic format alone. The Committee shall
designate to the Secretary the appropriate individual or individuals on
the Committee to receive such electronic notices.''.
SEC. 236. BEST MANAGEMENT PRACTICES.
Not later than one year after the date of enactment of this Act, the
Secretary of the Interior shall promulgate final regulations that
require oil and gas operators to use best management practices that
ensure the sound, efficient, and environmentally responsible
development of oil and gas on Federal lands in a manner that avoids
where practical, minimizes, and mitigates actual and anticipated
impacts to environmental habitat functions resulting from oil and gas
development. Such regulations may allow the Secretary to approve site-
specific adjustments to address unique issues and circumstances, on a
case-by-case basis. All such regulations shall be consistent with the
United States trust responsibility to Indian tribes.
SEC. 237. SURFACE DISTURBANCE, RECLAMATION.
Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is
amended to read as follows:
``(g) Regulation of Surface-disturbing Activities; Approval of Plan
of Operations; Bond or Surety; Failure to Comply With Reclamation
Requirements as Barring Lease; Opportunity to Comply With Requirements;
Standards; Monitoring.--
``(1) Definitions.--In this subsection:
``(A) Interim reclamation plan.--The term `Interim
Reclamation Plan' means an ongoing plan specifying
reclamation steps to be taken on all disturbed areas
covered by any lease issued under this Act which are
not needed for active operations. Such Interim
Reclamation Plans shall be reviewed by the relevant
Secretary at regular intervals and shall be amended as
warranted, subject to the approval of the relevant
Secretary.
``(B) Final reclamation plan.--The term `Final
Reclamation Plan' includes a detailed description of
all reclamation activity to be conducted for all
disturbed areas covered by a lease issued under this
Act prior to final abandonment. Final Reclamation Plans
shall include reclamation of all locations, facilities,
trenches, rights-of-way, roads and any other surface
disturbance on lands covered by the lease.
``(2) In general.--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.
``(3) Reclamation plans required.--
``(A) Applications for permits to drill.--Each
application for a permit to drill submitted to the
Secretary pursuant to this Act shall include both an
Interim Reclamation Plan and a Final Reclamation Plan.
``(B) Analysis and approval required.--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 both an interim reclamation plan
and a final reclamation plan covering proposed surface-
disturbing activities within the lease area.
``(C) Plans of operations.--All Plans of Operations
submitted and approved pursuant to this Act shall
include an Interim Reclamation Plan.
``(4) Bonding.--The Secretary concerned shall, by regulation,
require 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.
``(5) Standards.--The Secretary of the Interior and the
Secretary of Agriculture shall, by regulation, establish
uniform standards for all Interim and Final Reclamation Plans.
The goal of such plans shall be the restoration of the affected
ecosystem to a condition approximating or equal to that which
existed prior to the surface disturbance. Such standards shall
include, but are not limited to, restoration of natural
vegetation and hydrology, habitat restoration, salvage, storage
and reuse of topsoils, erosion control, control of invasive
species and noxious weeds and natural contouring.
``(6) Monitoring.--The Secretary concerned shall not approve
final abandonment and shall not release any bond required by
this Act until the standards and requirement for final
reclamation established pursuant to this Act have been met.''.
SEC. 238. WILDLIFE SUSTAINABILITY.
(a) Definitions.--In this section:
(1) Desired nonnative species.--The term ``desired nonnative
species'' means those wild species of plants or animals that
are not indigenous to a planning area but are valued for their
contribution to species diversity or their social, cultural, or
economic value.
(2) Focal species.--The term ``focal species'' means species
selected, based on best available science, for monitoring
because their population status and trends are believed to
provide useful information regarding the effects of management
activities, or other factors, on the diversity of ecological
systems to which they belong, and to validate the monitoring of
habitats and ecological conditions.
(3) Native species.--The term ``native species'' means
species of plants and animals indigenous to a planning area.
(4) Planning area.--The term ``planning area'' means any
geographic unit of National Forest System lands or Bureau of
Land Management lands covered by an individual management plan.
(5) Secretary.--The term ``Secretary'' means--
(A) the Secretary of the Interior, with respect to
land under such Secretary's jurisdiction; and
(B) the Secretary of Agriculture, with respect to
land under such Secretary's jurisdiction.
(6) Sustainable population.--The term ``sustainable
population'' means a population of a species that has a high
likelihood of persisting well distributed throughout its range
within a planning area based on the best available scientific
information, including information obtained through the
monitoring program under subsection (c), regarding its habitat
and ecological conditions, abundance and distribution.
(b) Planning for and Management of Sustainable Populations.--
(1) Management direction.--Each Secretary, in cooperation
with the appropriate State fish and wildlife agency, shall plan
for and manage planning areas under the Secretary's respective
jurisdiction in order to maintain sustainable populations of
native species and desired nonnative species within each
planning area consistent with--
(A) the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1701 et seq.);
(B) the National Forest Management Act (16 U.S.C.
1600); and
(C) all other applicable laws.
(2) Management coordination.--If a population of a species
extends across more than one planning area, each Secretary
shall coordinate the management of lands in the planning areas
containing such population in order to maintain a sustainable
population of such species.
(3) Extrinsic conditions.--If a Secretary, using the best
available science and after providing notice to the public by
publication in the Federal Register and opportunity for public
comment for a period of at least 60 days, determines that
conditions beyond such Secretary's authority make it impossible
for the Secretary to maintain a sustainable population of a
native species or desired nonnative species within a planning
area, or, under the circumstances identified in paragraph (2),
within two or more planning areas, such Secretary shall--
(A) manage lands within the planning area or areas in
order to achieve, to the maximum extent possible, the
survival and health of that population; and
(B) certify that, to the maximum extent practicable,
any activity authorized, funded, or carried out within
the planning area or areas does not increase the
likelihood of extirpation of the population in such
planning area or areas.
(4) Compliance.--Each Secretary shall certify that land
management plans for a planning area under the Secretary's
respective jurisdiction and actions implementing or authorized
under such plans comply with this section.
(c) Monitoring and Evaluation.--
(1) Establishment of monitoring programs.--To provide a basis
for determining the sustainability of native species and
desired nonnative species populations for purposes of
subsection (b), each Secretary shall adopt and implement, as
part of the land management planning for a planning area, a
strategically targeted monitoring program for identified focal
species to determine the status and trends of such species
populations in such planning area.
(2) Monitoring program requirements.--The monitoring programs
established under paragraph (1) shall designate focal species
representing the diversity of ecological systems in the
planning area and provide for--
(A) monitoring of the status and trends of the
habitats and ecological conditions that support focal
species; and
(B) population surveys of focal species identified in
the monitoring program to establish that monitoring of
habitats and ecological conditions is providing
accurate information regarding the status and trends of
species' populations in the planning area.
(3) Consultation and cooperation with states.--Each Secretary
shall develop and implement, to the maximum extent practicable,
the monitoring program established under this section,
including the selection of native species and desired nonnative
species, focal species, habitat, and ecological conditions to
be monitored and methodologies for conducting such monitoring,
in consultation with the United States Fish and Wildlife
Service, State fish and wildlife agencies and in coordination
with other State agencies with responsibility for management of
natural resources. Each Secretary shall consider and utilize
relevant population data maintained by other Federal agencies,
State agencies, tribes, or other relevant entities.
(d) Coordination.--
(1) Management coordination.--To the maximum extent
practicable and consistent with applicable law, each Secretary
shall coordinate the management of planning areas with the
management of the National Wildlife Refuge System and the
National Park System, other Federal agencies, State fish and
wildlife agencies, other State agencies with responsibility for
management of natural resources, tribes, local governments, and
nongovernmental organizations engaged in species conservation
in order to--
(A) maintain sustainable populations of native
species and desired nonnative species;
(B) develop strategies to address the impacts of
climate change on native species and desired nonnative
species;
(C) establish linkages between habitats and discrete
populations;
(D) reintroduce extirpated species, where
appropriate, when a species population is no longer
present; and
(E) conduct other joint efforts in support of
sustainable plant and animal communities across
jurisdictional boundaries.
(2) Coordination with conservation activities.--In planning
for the management of lands for the purpose of maintaining
sustainable populations of native species and desired nonnative
species in a planning area, each Secretary shall, to the
maximum extent practicable and consistent with Federal law--
(A) consult with and offer opportunities for
participation to adjoining Federal, State, tribal,
local, and private landowners, State and tribal fish
and wildlife agencies, and other State and tribal
agencies with responsibility for management of natural
resources; and
(B) coordinate such management planning with relevant
conservation plans for fish, plants, and wildlife and
their habitats, including State comprehensive wildlife
strategies and other State conservation strategies for
species, National Fish Habitat partnerships, North
American Wetland Conservation Joint Ventures, and the
Federal-State-private partnership known as Partners in
Flight.
(3) No effect on national wildlife refuge system or national
park system.--Nothing in this section affects the laws or
management standards applicable to lands or species populations
within the National Wildlife Refuge System or National Park
System.
(e) Implementing Regulations.--
(1) Regulations.--Not later than one year following the date
of enactment of this Act, each Secretary shall issue
regulations implementing all provisions of this section.
(2) Regulations under the national forest management act.--
Issuance of regulations consistent with the requirements of
this section shall be deemed consistent with the Secretary's
obligation to promulgate regulations to specify guidelines for
land management plans for the National Forest System which
provide for diversity of plant and animal communities pursuant
to the National Forest Management Act (16 U.S.C. sec.
1604(g)(3)(B)).
(f) Construction.--Nothing in this section shall be construed to--
(1) affect the authority, jurisdiction, or responsibility of
each of the several States to manage, control, or regulate
fish, plants, and wildlife under the laws and regulations of
each of the States; or
(2) authorize a Secretary to control or regulate within a
State the fishing or hunting of fish and wildlife within the
State except insofar as the Secretary may exercise authority
granted to him or her under other laws.
SEC. 239. ONLINE AVAILABILITY TO THE PUBLIC OF INFORMATION RELATING TO
OIL AND GAS CHEMICAL USE.
(a) In General.--An operator authorized to explore for, develop, or
produce oil and gas under any Federal mineral leasing law shall, within
30 days after completion of drilling a well on a lease area or any
portion thereof, make the list of chemicals used in drilling or
completing the well, including the chemical constituents of mixtures,
Chemical Abstracts Service numbers, and material safety data sheets,
available to the public on an Internet website created and maintained
by the Bureau of Safety and Environmental Enforcement.
(b) Proprietary Chemical Formulas.--This section does not authorize
the Director of the Bureau of Safety and Environmental Enforcement to
require the public disclosure of proprietary chemical formulas.
(c) Rulemaking Authority.--Not later than 1 year after the date of
enactment of this Act, the Secretary, after providing notice and an
opportunity for public comment, shall promulgate regulations to
implement this section.
SEC. 240. LIMITATION ON ROYALTY-IN-KIND PROGRAM.
Section 36 of the Mineral Leasing Act (30 U.S.C. 192) is amended by
inserting before the period at the end of the first sentence the
following: ``, except that the Secretary shall not conduct a regular
program to take oil and gas lease royalties in oil or gas''.
SEC. 241. ENVIRONMENTAL REVIEW.
Section 390 of the Energy Policy Act of 2005 (Public Law 109-58; 42
U.S.C. 15942) is repealed.
SEC. 242. FEDERAL LANDS URANIUM LEASING.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by
redesignating section 44 as section 45, and by inserting after section
43 the following new section:
``SEC. 44. LEASING OF LANDS FOR URANIUM MINING.
``(a) In General.--
``(1) Withdrawal from entry; leasing requirement.--Effective
upon the date of enactment of the Consolidated Land, Energy,
and Aquatic Resources Act of 2010, all Federal lands are hereby
permanently withdrawn from location and entry under section
2319 of the Revised Statutes (30 U.S.C. 22 et seq.) for
uranium. After the end of the 2-year period beginning on such
date of enactment, no uranium may be produced from Federal
lands except pursuant to a lease issued under this Act.
``(2) Leasing.--The Secretary--
``(A) may divide any lands subject to this Act that
are not withdrawn from mineral leasing and that are
otherwise available for uranium leasing under
applicable law, including lands available under the
terms of land use plans prepared by the Federal agency
managing the land, into leasing tracts of such size as
the Secretary finds appropriate and in the public
interest; and
``(B) thereafter shall, in the Secretary's
discretion, upon the request of any qualified applicant
or on the Secretary's own motion, from time to time,
offer such lands for uranium leasing and award uranium
leases thereon by competitive bidding.
``(b) Fair Market Value Required.--
``(1) In general.--No bid for a uranium lease shall be
accepted that is less than the fair market value, as determined
by the Secretary, of the uranium subject to the lease.
``(2) Public comment.--Prior to the Secretary's determination
of the fair market value of the uranium subject to the lease,
the Secretary shall give opportunity for and consideration to
public comments on the fair market value.
``(3) Disclosure not required.--Nothing in this section shall
be construed to require the Secretary to make public the
Secretary's judgment as to the fair market value of the uranium
to be leased, or the comments the Secretary receives thereon
prior to the issuance of the lease.
``(c) Lands Under the Jurisdiction of Other Agencies.--Leases
covering lands the surface of which is under the jurisdiction of any
Federal agency other than the Department of the Interior may be issued
only--
``(1) upon consent of the head of the other Federal agency;
and
``(2) upon such conditions the head of such other Federal
agency may prescribe with respect to the use and protection of
the nonmineral interests in those lands.
``(d) Consideration of Effects of Mining.--Before issuing any uranium
lease, the Secretary shall consider effects that mining under the
proposed lease might have on an impacted community or area, including
impacts on the environment, on agricultural, on cultural resources, and
other economic activities, and on public services.
``(e) Notice of Proposed Lease.--No lease sale shall be held for
lands until after a notice of the proposed offering for lease has been
given once a week for three consecutive weeks in a newspaper of general
circulation in the county in which the lands are situated, or in
electronic format, in accordance with regulations prescribed by the
Secretary.
``(f) Auction Requirements.--All lands to be leased under this
section shall be leased to the highest responsible qualified bidder--
``(1) under general regulations;
``(2) in units of not more than 2,560 acres that are as
nearly compact as possible; and
``(3) by oral bidding.
``(g) Required Payments.--
``(1) In general.--A lease under this section shall be
conditioned upon the payment by the lessee of--
``(A) a royalty at a rate of not less than 12.5
percent in amount or value of the production removed or
sold under the lease; and
``(B) a rental of--
``(i) not less than $2.50 per acre per year
for the first through fifth years of the lease;
and
``(ii) not less than $3 per acre per year for
each year thereafter.
``(2) Use of revenues.--Amounts received as revenues under
this subsection with respect to a lease may be used by the
Secretary of the Interior, subject to the availability of
appropriations, for cleaning up uranium mill tailings and
reclaiming abandoned uranium mines on Federal lands in
accordance with the priorities and eligibility restrictions,
respectively, under subsections (c) and (d) of section 411 of
the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1240a), or may be transferred by the Secretary, subject
to the availability of appropriations, to the Attorney General
for use by the Attorney General to pay claims filed under the
Radiation Exposure Compensation Act (42 U.S.C. 2210 note) that
the Attorney General determines meet the requirements of that
Act.
``(h) Lease Term.--A lease under this section--
``(1) shall be effective for a primary term of 10 years; and
``(2) shall continue in effect after such primary term for so
long is as uranium is produced under the lease in paying
quantities.
``(i) Exploration Licenses.--
``(1) In general.--The Secretary may, under such regulations
as the Secretary may prescribe, issue to any person an
exploration license. No person may conduct uranium exploration
for commercial purposes on lands subject to this Act without
such an exploration license. Each exploration license shall be
for a term of not more than two years and shall be subject to a
reasonable fee. An exploration license shall confer no right to
a lease under this Act. The issuance of exploration licenses
shall not preclude the Secretary from issuing uranium leases at
such times and locations and to such persons as the Secretary
deems appropriate. No exploration license may be issued for any
land on which a uranium lease has been issued. A separate
exploration license shall be required for exploration in each
State. An application for an exploration license shall identify
general areas and probable methods of exploration. Each
exploration license shall be limited to specific geographic
areas in each State as determined by the Secretary, and shall
contain such reasonable conditions as the Secretary may
require, including conditions to ensure the protection of the
environment, and shall be subject to all applicable Federal,
State, and local laws and regulations. Upon violation of any
such conditions or laws the Secretary may revoke the
exploration license.
``(2) Limitations.--A licensee may not cause substantial
disturbance to the natural land surface. A licensee may not
remove any uranium for sale but may remove a reasonable amount
of uranium from the lands subject to this Act included under
the Secretary's license for analysis and study. A licensee must
comply with all applicable rules and regulations of the Federal
agency having jurisdiction over the surface of the lands
subject to this Act. Exploration licenses covering lands the
surface of which is under the jurisdiction of any Federal
agency other than the Department of the Interior may be issued
only upon such conditions as it may prescribe with respect to
the use and protection of the nonmineral interests in those
lands.
``(3) Sharing of data.--The licensee shall furnish to the
Secretary copies of all data (including geological,
geophysical, and core drilling analyses) obtained during such
exploration. The Secretary shall maintain the confidentiality
of all data so obtained until after the areas involved have
been leased or until such time as the Secretary determines that
making the data available to the public would not damage the
competitive position of the licensee, whichever comes first.
``(4) Exploration without a license.--Any person who
willfully conducts uranium exploration for commercial purposes
on lands subject to this Act without an exploration license
issued under this subsection shall be subject to a fine of not
more than $1,000 for each day of violation. All data collected
by such person on any Federal lands as a result of such
violation shall be made immediately available to the Secretary,
who shall make the data available to the public as soon as it
is practicable. No penalty under this subsection shall be
assessed unless such person is given notice and opportunity for
a hearing with respect to such violation.
``(j) Conversion of Mining Claims to Mineral Leases.--
``(1) In general.--The owner of any mining claim (in this
subsection referred to as a `claimant') located prior to the
date of enactment of the Consolidated Land, Energy, and Aquatic
Resources Act of 2010 may, within two years after such date,
apply to the Secretary of the Interior to convert the claim to
a lease under this section. The Secretary shall issue a uranium
lease under this section to the claimant upon a demonstration
by the claimant, to the satisfaction of the Secretary, within
one year after the date of the application to the Secretary,
that the claim was, as of such date of enactment, supported by
the discovery of a valuable deposit of uranium on the claimed
land. The holder of a lease issued upon conversion from a
mining claim under this subsection shall be subject to all the
requirements of this section governing uranium leases, except
that the holder shall pay a royalty of 6.25 percent on the
value of the uranium produced under the lease, until beginning
ten years after the date the claim is converted to a lease.
``(2) Other claims extinguished.--All mining claims located
for uranium on Federal lands whose claimant does not apply to
the Secretary for conversion to a lease, or whose claimant
cannot make such a demonstration of discovery, shall become
null and void by operation of law three years after such date
of enactment.''.
Subtitle C--Royalty Relief for American Consumers
SEC. 251. SHORT TITLE.
This subtitle may be cited as the ``Royalty Relief for American
Consumers Act of 2010''.
SEC. 252. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES.
(a) Issuance of New Leases.--
(1) In general.--The Secretary shall not issue any new lease
that authorizes the production of oil or natural gas under the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) to a
person described in paragraph (2) unless the person has
renegotiated each covered lease with respect to which the
person is a lessee, to modify the payment responsibilities of
the person to require the payment of royalties if the price of
oil and natural gas is greater than or equal to the price
thresholds described in clauses (v) through (vii) of section
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)).
(2) Persons described.--A person referred to in paragraph (1)
is a person that--
(A) is a lessee that--
(i) holds a covered lease on the date on
which the Secretary considers the issuance of
the new lease; or
(ii) was issued a covered lease before the
date of enactment of this Act, but transferred
the covered lease to another person or entity
(including a subsidiary or affiliate of the
lessee) after the date of enactment of this
Act; or
(B) any other person that has any direct or indirect
interest in, or that derives any benefit from, a
covered lease.
(3) Multiple lessees.--
(A) In general.--For purposes of paragraph (1), if
there are multiple lessees that own a share of a
covered lease, the Secretary may implement separate
agreements with any lessee with a share of the covered
lease that modifies the payment responsibilities with
respect to the share of the lessee to include price
thresholds that are equal to or less than the price
thresholds described in clauses (v) through (vii) of
section 8(a)(3)(C) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(a)(3)(C)).
(B) Treatment of share as covered lease.--Beginning
on the effective date of an agreement under
subparagraph (A), any share subject to the agreement
shall not constitute a covered lease with respect to
any lessees that entered into the agreement.
(b) Transfers.--A lessee or any other person who has any direct or
indirect interest in, or who derives a benefit from, a lease shall not
be eligible to obtain by sale or other transfer (including through a
swap, spinoff, servicing, or other agreement) any covered lease, the
economic benefit of any covered lease, or any other lease for the
production of oil or natural gas in the Gulf of Mexico under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), unless the lessee
or other person has--
(1) renegotiated each covered lease with respect to which the
lessee or person is a lessee, to modify the payment
responsibilities of the lessee or person to include price
thresholds that are equal to or less than the price thresholds
described in clauses (v) through (vii) of section 8(a)(3)(C) of
the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)); or
(2) entered into an agreement with the Secretary to modify
the terms of all covered leases of the lessee or other person
to include limitations on royalty relief based on market prices
that are equal to or less than the price thresholds described
in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
(c) Use of Amounts for Deficit Reduction.--Notwithstanding any other
provision of law, any amounts received by the United States as rentals
or royalties under covered leases shall be deposited in the Treasury
and used for Federal budget deficit reduction or, if there is no
Federal budget deficit, for reducing the Federal debt in such manner as
the Secretary of the Treasury considers appropriate.
(d) Definitions.--In this section--
(1) Covered lease.--The term ``covered lease'' means a lease
for oil or gas production in the Gulf of Mexico that is--
(A) in existence on the date of enactment of this
Act;
(B) issued by the Department of the Interior under
section 304 of the Outer Continental Shelf Deep Water
Royalty Relief Act (43 U.S.C. 1337 note; Public Law
104-58); and
(C) not subject to limitations on royalty relief
based on market price that are equal to or less than
the price thresholds described in clauses (v) through
(vii) of section 8(a)(3)(C) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
(2) Lessee.--The term ``lessee'' includes any person or other
entity that controls, is controlled by, or is in or under
common control with, a lessee.
(3) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
SEC. 253. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.
The Secretary of the Interior shall agree to a request by any lessee
to amend any lease issued for any Central and Western Gulf of Mexico
tract in the period of January 1, 1996, through November 28, 2000, to
incorporate price thresholds applicable to royalty suspension
provisions, that are equal to or less than the price thresholds
described in clauses (v) through (vii) of section 8(a)(3)(C) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). Any
amended lease shall impose the new or revised price thresholds
effective October 1, 2010. Existing lease provisions shall prevail
through September 30, 2010.
TITLE III--OIL AND GAS ROYALTY REFORM
SEC. 301. AMENDMENTS TO DEFINITIONS.
Section 3 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1702) is amended--
(1) in paragraph (8), by striking the semicolon and inserting
``including but not limited to the Act of October 20, 1914 (38
Stat. 741); the Act of February 25, 1920 (41 Stat. 437); the
Act of April 17, 1926 (44 Stat. 301); the Act of February 7,
1927 (44 Stat. 1057); and all Acts heretofore or hereafter
enacted that are amendatory of or supplementary to any of the
foregoing Acts;'';
(2) in paragraph (20)(A), by striking ``: Provided, That''
and all that follows through ``subject of the judicial
proceeding'';
(3) in paragraph (20)(B), by striking ``(with written notice
to the lessee who designated the designee)'';
(4) in paragraph (23)(A), by striking ``(with written notice
to the lessee who designated the designee)'';
(5) by striking paragraph (24) and inserting the following:
``(24) `designee' means a person who pays, offsets, or
credits monies, makes adjustments, requests and receives
refunds, or submits reports with respect to payments a lessee
must make pursuant to section 102(a);'';
(6) in paragraph (25)(B)--
(A) by striking ``(subject to the provisions of
section 102(a) of this Act)''; and
(B) in clause (ii) by striking the matter after
subclause (IV) and inserting the following:
``that arises from or relates to any lease, easement, right-of-way,
permit, or other agreement regardless of form administered by the
Secretary for, or any mineral leasing law related to, the exploration,
production, and development of oil and gas or other energy resource on
Federal lands or the Outer Continental Shelf;''.
(7) in paragraph (29), by inserting ``or permit'' after
``lease''; and
(8) by striking ``and'' after the semicolon at the end of
paragraph (32), by striking the period at the end of paragraph
(33) and inserting a semicolon, and by adding at the end the
following new paragraphs:
``(34) `compliance review' means a full-scope or a limited-
scope examination of a lessee's lease accounts to compare one
or all elements of the royalty equation (volume, value, royalty
rate, and allowances) against anticipated elements of the
royalty equation to test for variances; and
``(35) `marketing affiliate' means an affiliate of a lessee
whose function is to acquire the lessee's production and to
market that production.''.
SEC. 302. COMPLIANCE REVIEWS.
Section 101 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1711) is amended by adding at the end the following new
subsection:
``(d) The Secretary may, as an adjunct to audits of accounts for
leases, utilize compliance reviews of accounts. Such reviews shall not
constitute nor substitute for audits of lease accounts. Any disparity
uncovered in such a compliance review shall be immediately referred to
a program auditor. The Secretary shall, before completion of a
compliance review, provide notice of the review to designees whose
obligations are the subject of the review.''.
SEC. 303. CLARIFICATION OF LIABILITY FOR ROYALTY PAYMENTS.
Section 102(a) of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1712(a)) is amended to read as follows:
``(a) In order to increase receipts and achieve effective collections
of royalty and other payments, a lessee who is required to make any
royalty or other payment under a lease, easement, right-of-way, permit,
or other agreement, regardless of form, or under the mineral leasing
laws, shall make such payment in the time and manner as may be
specified by the Secretary or the applicable delegated State. Any
person who pays, offsets, or credits monies, makes adjustments,
requests and receives refunds, or submits reports with respect to
payments the lessee must make is the lessee's designee under this Act.
Notwithstanding any other provision of this Act to the contrary, a
designee shall be liable for any payment obligation of any lessee on
whose behalf the designee pays royalty under the lease. The person
owning operating rights in a lease and a person owning legal record
title in a lease shall be liable for that person's pro rata share of
payment obligations under the lease.''.
SEC. 304. REQUIRED RECORDKEEPING.
Section 103(b) of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1712(a)) is amended by striking ``6'' and inserting
``7''.
SEC. 305. FINES AND PENALTIES.
Section 109 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1719) is amended--
(1) in subsection (a) in the matter following paragraph (2),
by striking ``$500'' and inserting ``$1,000'';
(2) in subsection (a)(2)(B), by inserting ``(i)'' after
``such person'', and by striking the period at the end and
inserting ``; and (ii) has not received notice, pursuant to
paragraph (1), of more than two prior violations in the current
calendar year.'';
(3) in subsection (b), by striking ``$5,000'' and inserting
``$10,000'';
(4) in subsection (c)--
(A) in paragraph (2), by striking ``; or'' and
inserting ``, including any failure or refusal to
promptly tender requested documents;'';
(B) in the text following paragraph (3)--
(i) by striking ``$10,000'' and inserting
``$20,000''; and
(ii) by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
``(4) knowingly or willfully fails to make any royalty
payment in the amount or value as specified by statute,
regulation, order, or terms of the lease; or
``(5) fails to correctly report and timely provide operations
or financial records necessary for the Secretary or any
authorized designee of the Secretary to accomplish lease
management responsibilities,'';
(5) in subsection (d), by striking ``$25,000'' and inserting
``$50,000'';
(6) in subsection (h), by striking ``by registered mail'' and
inserting ``a common carrier that provides proof of delivery'';
and
(7) by adding at the end the following subsection:
``(m)(1) Any determination by the Secretary or a designee of the
Secretary that a person has committed a violation under subsection (a),
(c), or (d)(1) shall toll any applicable statute of limitations for all
oil and gas leases held or operated by such person, until the later
of--
``(A) the date on which the person corrects the violation and
certifies that all violations of a like nature have been
corrected for all of the oil and gas leases held or operated by
such person; or
``(B) the date a final, nonappealable order has been issued
by the Secretary or a court of competent jurisdiction.
``(2) A person determined by the Secretary or a designee of the
Secretary to have violated subsection (a), (c), or (d)(1) shall
maintain all records with respect to the person's oil and gas leases
until the later of--
``(A) the date the Secretary releases the person from the
obligation to maintain such records; and
``(B) the expiration of the period during which the records
must be maintained under section 103(b).''.
SEC. 306. INTEREST ON OVERPAYMENTS.
Section 111 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1721) is amended--
(1) by amending subsections (h) and (i) to read as follows:
``(h) Interest shall not be allowed nor paid nor credited on any
overpayment, and no interest shall accrue from the date such
overpayment was made.
``(i) A lessee or its designee may make a payment for the approximate
amount of royalties (hereinafter in this subsection referred to as the
`estimated payment') that would otherwise be due for such lease by the
date royalties are due for that lease. When an estimated payment is
made, actual royalties are payable at the end of the month following
the month in which the estimated payment is made. If the estimated
payment was less than the amount of actual royalties due, interest is
owed on the underpaid amount. If the lessee or its designee makes a
payment for such actual royalties, the lessee or its designee may apply
the estimated payment to future royalties. Any estimated payment may be
adjusted, recouped, or reinstated by the lessee or its designee
provided such adjustment, recoupment, or reinstatement is made within
the limitation period for which the date royalties were due for that
lease.'';
(2) by striking subsection (j); and
(3) in subsection (k)(4)--
(A) by striking ``or overpaid royalties and
associated interest''; and
(B) by striking ``, refunded, or credited''.
SEC. 307. ADJUSTMENTS AND REFUNDS.
Section 111A of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1721a) is amended--
(1) in subsection (a)(3), by inserting ``(A)'' after ``(3)'',
and by striking the last sentence and inserting the following:
``(B) Except as provided in subparagraph (C), no
adjustment may be made with respect to an obligation
that is the subject of an audit or compliance review
after completion of the audit or compliance review,
respectively, unless such adjustment is approved by the
Secretary or the applicable delegated State, as
appropriate.
``(C) If an overpayment is identified during an
audit, the Secretary shall allow a credit in the amount
of the overpayment.'';
(2) in subsection (a)(4)--
(A) by striking ``six'' and inserting ``four''; and
(B) by striking ``shall'' the first time such term
appears and inserting ``may''; and
(3) in subsection (b)(1) by striking ``and'' after the
semicolon at the end of subparagraph (C), by striking the
period at the end of subparagraph (D) and inserting ``; and'',
and by adding at the end the following:
``(E) is made within the adjustment period for that
obligation.''.
SEC. 308. CONFORMING AMENDMENT.
Section 114 of the Federal Oil and Gas Royalty Management Act of 1982
is repealed.
SEC. 309. OBLIGATION PERIOD.
Section 115(c) of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1724(c)) is amended by adding at the end the following
new paragraph:
``(3) Adjustments.--In the case of an adjustment under
section 111A(a) in which a recoupment by the lessee results in
an underpayment of an obligation, for purposes of this Act the
obligation becomes due on the date the lessee or its designee
makes the adjustment.''.
SEC. 310. NOTICE REGARDING TOLLING AGREEMENTS AND SUBPOENAS.
(a) Tolling Agreements.--Section 115(d)(1) of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(1)) is amended by
striking ``(with notice to the lessee who designated the designee)''.
(b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) is amended by
striking ``(with notice to the lessee who designated the designee,
which notice shall not constitute a subpoena to the lessee)''.
SEC. 311. APPEALS AND FINAL AGENCY ACTION.
Paragraphs (1) and (2) of section 115(h) the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1724(h)) are amended by
striking ``33'' each place it appears and inserting ``48''.
SEC. 312. ASSESSMENTS.
Section 116 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1724) is repealed.
SEC. 313. COLLECTION AND PRODUCTION ACCOUNTABILITY.
(a) Pilot Project.--Within two years after the date of enactment of
this Act, the Secretary shall complete a pilot project with willing
operators of oil and gas leases on the Outer Continental Shelf that
assesses the costs and benefits of automatic transmission of oil and
gas volume and quality data produced under Federal leases on the Outer
Continental Shelf in order to improve the production verification
systems used to ensure accurate royalty collection and audit.
(b) Report.--The Secretary shall submit to Congress a report on
findings and recommendations of the pilot project within 3 years after
the date of enactment of this Act.
SEC. 314. NATURAL GAS REPORTING.
The Secretary shall, within 180 days after the date of enactment of
this Act, implement the steps necessary to ensure accurate
determination and reporting of BTU values of natural gas from all
Federal oil and gas leases to ensure accurate royalty payments to the
United States. Such steps shall include, but not be limited to--
(1) establishment of consistent guidelines for onshore and
offshore BTU information from gas producers;
(2) development of a procedure to determine the potential BTU
variability of produced natural gas on a by-reservoir or by-
lease basis;
(3) development of a procedure to adjust BTU frequency
requirements for sampling and reporting on a case-by-case
basis;
(4) systematic and regular verification of BTU information;
and
(5) revision of the ``MMS-2014'' reporting form to record, in
addition to other information already required, the natural gas
BTU values that form the basis for the required royalty
payments.
SEC. 315. PENALTY FOR LATE OR INCORRECT REPORTING OF DATA.
(a) In General.--The Secretary shall issue regulations by not later
than 1 year after the date of enactment of this Act that establish a
civil penalty for late or incorrect reporting of data under the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.).
(b) Amount.--The amount of the civil penalty shall be--
(1) an amount (subject to paragraph (2)) that the Secretary
determines is sufficient to ensure filing of data in accordance
with that Act; and
(2) not less than $10 for each failure to file correct data
in accordance with that Act.
(c) Content of Regulations.--Except as provided in subsection (b),
the regulations issued under this section shall be substantially
similar to part 216.40 of title 30, Code of Federal Regulations, as
most recently in effect before the date of enactment of this Act.
SEC. 316. REQUIRED RECORDKEEPING.
Within 1 year after the date of enactment of this Act, the Secretary
shall publish final regulations concerning required recordkeeping of
natural gas measurement data as set forth in part 250.1203 of title 30,
Code of Federal Regulations (as in effect on the date of enactment of
this Act), to include operators and other persons involved in the
transporting, purchasing, or selling of gas under the requirements of
that rule, under the authority provided in section 103 of the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1713).
SEC. 317. SHARED CIVIL PENALTIES.
Section 206 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1736) is amended by striking ``Such amount shall be deducted
from any compensation due such State or Indian Tribe under section 202
or section 205 or such State under section 205.''.
SEC. 318. APPLICABILITY TO OTHER MINERALS.
Section 304 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1753) is amended by adding at the end the following new
subsection:
``(e) Applicability to Other Minerals.--
``(1) Notwithstanding any other provision of law, sections
107, 109, and 110 of this Act and the regulations duly
promulgated with respect thereto shall apply to any lease
authorizing the development of coal or any other solid mineral
on any Federal lands or Indian lands, to the same extent as if
such lease were an oil and gas lease, on the same terms and
conditions as those authorized for oil and gas leases.
``(2) Notwithstanding any other provision of law, sections
107, 109, and 110 of this Act and the regulations duly
promulgated with respect thereto shall apply with respect to
any lease, easement, right-of-way, or other agreement,
regardless of form (including any royalty, rent, or other
payment due thereunder)--
``(A) under section 8(k) or 8(p) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(k) and
1337(p)); or
``(B) under the Geothermal Steam Act (30 U.S.C. 1001
et seq.), to the same extent as if such lease,
easement, right-of-way, or other agreement were an oil
and gas lease on the same terms and conditions as those
authorized for oil and gas leases.
``(3) For the purposes of this subsection, the term `solid
mineral' means any mineral other than oil, gas, and geo-
pressured-geothermal resources, that is authorized by an Act of
Congress to be produced from public lands (as that term is
defined in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)).''.
SEC. 319. ENTITLEMENTS.
Not later than 180 days after the date of enactment of this Act, the
Secretary shall publish final regulations prescribing when a Federal
lessee or designee must report and pay royalties on the volume of oil
and gas it takes under either a Federal or Indian lease or on the
volume to which it is entitled to based upon its ownership interest in
the Federal or Indian lease. The Secretary shall give consideration to
requiring 100 percent entitlement reporting and paying based upon the
lease ownership.
TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION AND HISTORIC
PRESERVATION FUNDS
Subtitle A--Land and Water Conservation Fund
SEC. 401. AMENDMENTS TO THE LAND AND WATER CONSERVATION FUND ACT OF
1965.
Except as otherwise expressly provided, whenever in this subtitle an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.).
SEC. 402. EXTENSION OF THE LAND AND WATER CONSERVATION FUND.
Section 2 (16 U.S.C. 460l-5) is amended by striking ``September 30,
2015'' both places it appears and inserting ``September 30, 2040''.
SEC. 403. PERMANENT FUNDING.
(a) In General.--The text of section 3 (16 U.S.C. 460l-6) is amended
to read as follows: ``Of the moneys covered into the fund, $900,000,000
shall be available each fiscal year for expenditure for the purposes of
this Act without further appropriation. Moneys made available for
obligation or expenditure from the fund or from the special account
established under section 4(i)(1) may be obligated or expended only as
provided in this Act.''.
(b) Conforming Amendment.--Section 2(c)(2) (16 U.S.C. 460l-5(c)(2))
is amended by striking ``: Provided'' and all that follows through the
end of the sentence and inserting a period.
Subtitle B--National Historic Preservation Fund
SEC. 411. PERMANENT FUNDING.
The text of section 108 of the National Historic Preservation Act (16
U.S.C. 470h) is amended to read as follows: ``To carry out the
provisions of this Act, there is hereby established the Historic
Preservation Fund (hereinafter referred to as the `fund') in the
Treasury of the United States. There shall be covered into the fund
$150,000,000 for fiscal years 1982 through 2040 from revenues due and
payable to the United States under the Outer Continental Shelf Lands
Act (67 Stat. 462, 469), as amended (43 U.S.C. 1338) and/or under the
Act of June 4, 1920 (41 Stat. 813), as amended (30 U.S.C. 191),
notwithstanding any provision of law that such proceeds shall be
credited to miscellaneous receipts of the Treasury. Such moneys shall
be used only to carry out the purposes of this Act and shall be
available for expenditure without further appropriation.''.
TITLE V--ALTERNATIVE ENERGY DEVELOPMENT
SEC. 501. COMMERCIAL WIND AND SOLAR LEASING PROGRAM.
(a) In General.--Pursuant to the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1701 et seq.) and the National Forest Management
Act of 1976 (16 U.S.C. 1600 et seq.), the Secretary, acting through the
Director of the Bureau of Energy and Resource Management, may issue
leases, on a competitive basis, for commercial electricity generation
from solar or wind resources on Federal lands under the administrative
jurisdiction of the Bureau of Land Management or of the Forest Service,
except that the Secretary may not issue any such lease on National
Forest System lands over the objection of the Secretary of Agriculture.
(b) Final Regulations.--Not later than 18 months after the date of
enactment of this Act, the Secretary of the Interior shall publish
final regulations establishing a commercial wind and solar leasing
program under subsection (a).
(c) Commencement of Commercial Leasing for Solar and Wind Energy on
Public Lands.--Not later than 90 days after completion of regulations
required under subsection (b), or as soon as practicable thereafter,
and following consultation with affected governors and other
stakeholders, the Secretary may conduct lease sales under the
regulations under this title.
(d) Easements, Special-use Permits, and Rights-of-way.--Upon
completion of regulations required under subsection (b), easements,
special-use permits, and rights-of-way shall not be available for
commercial wind and solar projects on Federal lands under the
administrative jurisdiction of the Bureau of Land Management or Forest
Service, except for the placement and operation of testing or data
collection devices or facilities that will not result in the commercial
sale of electric power.
(e) Noncompetitive Leasing.--
(1) In general.--The Secretary may issue leases under this
section on a noncompetitive basis if--
(A) the lease is for resource data collection or
equipment testing;
(B) the lease will not result in the commercial sale
of electric power;
(C) the lease has a term of not more than 5 years;
and
(D) the Secretary, after public notice of a proposed
lease, determines that there is no competitive
interest.
(2) Preference.--In any competitive lease sale for lands
subject to a lease awarded under this subsection, the Secretary
may give a preference to the holder of the lease under this
subsection.
(f) Transition to Commercial Leasing.--The Secretary of the Interior,
for lands under the jurisdiction of the Bureau of Land Management, and
the Secretary of Agriculture, for lands under the jurisdiction of the
Forest Service, may issue an easement, special-use permit, or right-of-
way for a commercial wind or solar project for which--
(1) an application for a solar or wind right-of-way permit,
or for a permit for a meteorological tower or to construct a
wind farm, was submitted before July 1, 2010; or
(2) a meteorological testing tower or other data collection
device has been installed under an approved easement, special-
use permit, or right-of-way before the date of enactment of
this Act.
(g) Diligent Development Requirements.--The Secretary shall, by
regulation, designate work requirements and milestones to ensure that
diligent development is carried out under each lease issued under this
title, and that such leases are not obtained for speculative purposes.
(h) Criteria for Bidders.--Before issuing leases under this title,
the Secretary shall establish criteria for bidders for such leases,
including for proof of financial ability to achieve project commitments
and completion, and for a demonstrated understanding of the technology
to be deployed under a lease.
SEC. 502. LAND MANAGEMENT.
The Secretary, in consultation with the Director of the Bureau of
Land Management and the Chief of the Forest Service, shall issue
regulations that--
(1) establish the duration of leases under this title, which
shall be not less than 30 years;
(2) require the holder of a lease granted under this title
to--
(A) furnish a surety bond or other form of security,
as prescribed by the Director of the Bureau of Energy
and Resource Management, to assure the completion of--
(i) interim and final reclamation and the
restoration of the area that is subject to the
lease to the condition in which the area
existed before the granting of the lease; or
(ii) mitigation activities, including
compensatory mitigation, if restoration to such
condition is impractical; and
(B) comply with such other requirements as the
Director of the Bureau of Energy and Resource
Management and affected Federal land manager consider
necessary to protect the interests of the public and
the United States; and
(3) establish best management practices and require renewable
energy operators to comply with those practices to ensure the
sound, efficient, and environmentally responsible development
of wind and solar resources on Federal lands in a manner that
shall avoid, minimize, and mitigate actual and anticipated
impacts to habitat and ecosystem function resulting from such
development and to areas proposed for wilderness or other
protection.
SEC. 503. REVENUES.
(a) Establishment of Payment Requirements.--The Secretary shall
establish royalties, fees, rentals, bonus bids, or other payments for
leases issued under this title, that shall--
(1) encourage development of solar and wind energy on public
lands;
(2) ensure a fair return to the United States; and
(3) be commensurate with similar payments for the development
of solar and wind energy on State and private lands.
(b) Deposit.--All revenues for payments established under this
section shall be deposited in the general fund of the Treasury.
(c) Promote Development of Previously Impacted Lands.--To promote the
priority development of renewable energy resources on lands that have
already been adversely impacted by significant prior use, the Secretary
may waive the rental payment until generation commences under a lease
under section 501 of such land determined by the Secretary in
consultation with the Secretaries of Agriculture and Energy, and the
Administrator of the Environmental Protection Agency.
SEC. 504. RECORDKEEPING AND REPORTING REQUIREMENTS.
(a) In General.--A lessee, permit holder, operator, or other person
directly involved in developing, producing, processing, transporting,
purchasing, or selling renewable energy under this title, through the
point of royalty computation, shall establish and maintain any records,
make any reports, and provide any information that the Secretary may
reasonably require for the purposes of implementing this section or
determining compliance with rules or orders under this section. Such
records shall include, but not be limited to, periodic reports,
records, documents, and other data. Such reports may include, but not
be limited to, pertinent technical and financial data relating to the
resources being developed under the lease. Upon the request of any
officer or employee duly designated by the Secretary conducting an
audit or investigation pursuant to this section, the appropriate
records, reports, or information that may be required by this section
shall be made available for inspection and duplication by such officer
or employee. Failure by a claim holder, operator, or other person
referred to in the first sentence to cooperate with such an audit,
provide data required by the Secretary, or grant access to information
may, at the discretion of the Secretary, result in involuntary
forfeiture of the lease or permit.
(b) Maintenance.--Records required by the Secretary under this
section shall be maintained for 7 years after release of financial
assurance unless the Secretary notifies the operator that the Secretary
has initiated an audit or investigation involving such records and that
such records must be maintained for a longer period. In any case when
an audit or investigation is underway, records shall be maintained
until the Secretary releases the operator of the obligation to maintain
such records.
SEC. 505. AUDITS.
The Secretary may conduct such audits of all lessees and permit
holders, operators, transporters, purchasers, processors, or other
persons directly or indirectly involved in the production or sales of
renewable energy resources covered by this Act, as the Secretary deems
necessary for the purposes of ensuring compliance with the requirements
of this title. For purposes of performing such audits, the Secretary
shall, at reasonable times and upon request, have access to, and may
copy, all books, papers and other documents that relate to compliance
with any provision of this section by any person.
SEC. 506. TRADE SECRETS.
Trade secrets, proprietary information, and other confidential
information protected from disclosure under section 552 of title 5,
United States Code (popularly known as the Freedom of Information Act),
shall be made available by the Secretary to other Federal agencies as
necessary to assure compliance with this Act and other Federal laws.
SEC. 507. INTEREST AND SUBSTANTIAL UNDERREPORTING ASSESSMENTS.
(a) Interest.--In the case of renewable energy resources leases or
permits under which royalty payments are not received by the Secretary
on the date that such payments are due, the Secretary shall charge
interest on such under payments at the same interest rate as the rate
applicable under section 6621(a)(2) of the Internal Revenue Code of
1986. In the case of an underpayment, interest shall be computed and
charged only on the amount of the deficiency and not on the total
amount.
(b) Penalty.--If there is any underreporting of royalty owed on
production from a lease or permit for any production month by any
person liable for royalty payments under this title, the Secretary
shall assess a penalty of not greater than 25 percent of the amount of
that underreporting.
(c) Underreporting Defined.--For the purposes of this section, the
term ``underreporting'' means the difference between the royalty on the
value of the production that should have been reported and the royalty
on the value of the production that was reported, if the value that
should have been reported is greater than the value that was reported.
(d) Waiver or Reduction.--
(1) In general.--The Secretary may waive or reduce the
assessment provided in subsection (b) if the person liable for
royalty payments under this section corrects the underreporting
before the date such person receives notice from the Secretary
that an underreporting may have occurred, or before 90 days
after the date of the enactment of this section, whichever is
later.
(2) Required waiver.--The Secretary shall waive any portion
of an assessment under subsection (b) attributable to that
portion of the underreporting for which the person responsible
for paying the royalty demonstrates that--
(A) such person had written authorization from the
Secretary to report royalty on the value of the
production on basis on which it was reported;
(B) such person had substantial authority for
reporting royalty on the value of the production on the
basis on which it was reported;
(C) such person previously had notified the
Secretary, in such manner as the Secretary may by rule
prescribe, of relevant reasons or facts affecting the
royalty treatment of specific production that led to
the underreporting; or
(D) such person meets any other exception that the
Secretary may, by rule, establish.
(e) Expanded Royalty Obligations.--Each person liable for royalty
payments under this section shall be jointly and severally liable for
royalty on renewable energy resources produced under a lease issued
under this Act when such loss or waste is due to negligence on the part
of any person or due to the failure to comply with any rule,
regulation, or order issued under this section.
(f) Failure to Comply With Royalty Requirements.--Any person who
fails to comply with the requirements of this section or any regulation
or order issued to implement this section shall be liable for a civil
penalty under section 109 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1719) to the same extent as if the failure to
comply occurred under that Act.
(g) Deposit of Penalties.--All penalties collected under this
subsection shall be deposited in the general fund of the Treasury.
SEC. 508. INDIAN SAVINGS PROVISION.
Nothing in this title shall abridge, diminish, or alter any right or
interest of any affected Indian tribe. Nothing in this title shall
authorize any Federal agency or official to abridge, diminish, or alter
any right or interest of any affected Indian tribe.
SEC. 509. TRANSMISSION SAVINGS PROVISION.
Nothing in this title shall affect the authority of a Federal agency
to issue right-of-way grants for electric transmission facilities.
TITLE VI--COORDINATION AND PLANNING
SEC. 601. REGIONAL COORDINATION.
(a) In General.--The purpose of this title is to promote--
(1) better coordination, communication, and collaboration
between Federal agencies with authorities for ocean, coastal,
and Great Lakes management; and
(2) coordinated and collaborative regional planning efforts
using the best available science, and to ensure the protection
and maintenance of marine ecosystem health, in decisions
affecting the sustainable development and use of Federal
renewable and nonrenewable resources on, in, or above the ocean
(including the Outer Continental Shelf) and the Great Lakes for
the long-term economic and environmental benefit of the United
States.
(b) Objectives of Regional Efforts.--Such regional efforts shall
achieve the following objectives:
(1) Greater systematic communication and coordination among
Federal, coastal State, and affected tribal governments
concerned with the conservation of and the sustainable
development and use of Federal renewable and nonrenewable
resources of the oceans, coasts, and Great Lakes.
(2) To the maximum extent feasible, greater reliance on a
multiobjective, science- and ecosystem-based, spatially
explicit management approach that integrates regional economic,
ecological, affected tribal, and social objectives into ocean,
coastal, and Great Lakes management decisions.
(3) Identification and prioritization of shared State and
Federal ocean, coastal, and Great Lakes management issues.
(4) Identification of data and information needed by the
Regional Coordination Councils established under section 602.
(c) Regions.--There are hereby designated the following Coordination
Regions:
(1) Pacific region.--The Pacific Coordination Region, which
shall consist of the coastal waters and Exclusive Economic Zone
adjacent to the States of Washington, Oregon, and California.
(2) Gulf of mexico region.--The Gulf of Mexico Coordination
Region, which shall consist of the coastal waters and Exclusive
Economic Zone adjacent to the States of Texas, Louisiana,
Mississippi, and Alabama, and the west coast of Florida.
(3) North atlantic region.--The North Atlantic Coordination
Region, which shall consist of the coastal waters and Exclusive
Economic Zone adjacent to the States of Maine, New Hampshire,
Massachusetts, Rhode Island, and Connecticut
(4) Mid atlantic region.--The Mid Atlantic Coordination
Region, which shall consist of the coastal waters and Exclusive
Economic Zone adjacent to the States of New York, New Jersey,
Pennsylvania, Delaware, Maryland, and Virginia.
(5) South atlantic region.--The South Atlantic Coordination
Region, which shall consist of the coastal waters and Exclusive
Economic Zone adjacent to the States of North Carolina, South
Carolina, Georgia, the east coast of Florida, and the Straits
of Florida Planning Area.
(6) Alaska region.--The Alaska Coordination Region, which
shall consist of the coastal waters and Exclusive Economic Zone
adjacent to the State of Alaska.
(7) Pacific islands region.--The Pacific Islands Coordination
Region, which shall consist of the coastal waters and Exclusive
Economic Zone adjacent to the State of Hawaii, the Commonwealth
of the Northern Mariana Islands, American Samoa, and Guam.
(8) Caribbean region.--The Caribbean Coordination Region,
which shall consist of the coastal waters and Exclusive
Economic Zone adjacent to Puerto Rico and the United States
Virgin Islands.
(9) Great lakes region.--The Great Lakes Coordination Region,
which shall consist of waters of the Great Lakes in the States
of Illinois, Indiana, Michigan, Minnesota, New York, Ohio,
Pennsylvania, and Wisconsin.
SEC. 602. REGIONAL COORDINATION COUNCILS.
(a) In General.--Within 180 days after the date of enactment of this
Act, the Chairman of the Council on Environmental Quality, in
consultation with the affected coastal States and affected Indian
tribes, shall establish or designate a Regional Coordination Council
for each of the Coordination Regions designated by section 601(c).
(b) Membership.--
(1) Federal representatives.--Within 90 days after the date
of enactment of this Act, the Chairman of the Council on
Environmental Quality shall publish the titles of the officials
of each Federal agency and department that shall participate in
each Council. The Councils shall include representatives of
each Federal agency and department that has authorities related
to the development of ocean, coastal, or Great Lakes policies
or engages in planning, management, or scientific activities
that significantly affect or inform the use of ocean, coastal,
or Great Lakes resources. The Chairman of the Council on
Environmental Quality shall determine which Federal agency
representative shall serve as the chairperson of each Council.
(2) Coastal state representatives.--
(A) Notice of intent to participate.--The Governor of
each coastal State within each Coordination Region
designated by section 601(c) shall within 3 months
after the date of enactment of this Act, inform the
Chairman of the Council on Environmental Quality
whether or not the State intends to participate in the
Regional Coordination Council for the Region.
(B) Appointment of responsible state official.--If a
coastal State intends to participate in such Council,
the Governor of the coastal State shall appoint an
officer or employee of the coastal State agency with
primary responsibility for overseeing ocean and coastal
policy or resource management to that Council.
(3) Regional fishery management council representation.--The
Chairman of each Regional Fishery Management Council with
jurisdiction in the Coordination Region of a Regional
Coordination Council and the executive director of the
interstate marine fisheries commission with jurisdiction in the
Coordination Region of a Regional Coordination Council shall
each serve as a member of the Council.
(4) Regional ocean partnership representation.--A
representative of any Regional Ocean Partnership that has been
established for any part of the Coordination Region of a
Regional Coordination Council may appoint a representative to
serve on the Council in addition to any Federal or State
appointments.
(5) Tribal representation.--An appropriate tribal official
selected by affected Indian tribes situated in the affected
Coordination Region may elect to appoint a representative of
such tribes collectively to serve as a member of the Regional
Coordination Council for that Region.
(6) Local representation.--The Chairman of the Council on
Environmental Quality shall, in consultation with the Governors
of the coastal States within each Coordination Region, identify
and appoint representatives of county and local governments, as
appropriate, to serve as members of the Regional Coordination
Council for that Region.
(c) Advisory Committee.--Each Regional Coordination Council shall
establish an advisory committee made up of a balanced representation
from the energy, shipping, and transportation, marine tourism, and
recreation industries, from marine environmental nongovernmental
organizations, and from scientific and educational authorities with
expertise in the conservation and management of ocean, coastal, and
Great Lakes resources to advise the Council during the development of
Regional Assessments and Regional Strategic Plans and in its other
activities.
(d) Coordination With Existing Programs.--Each Regional Coordination
Council shall build upon and complement current State, multistate, and
regional capacity and governance and institutional mechanisms to manage
and protect ocean waters, coastal waters, and ocean resources.
SEC. 603. REGIONAL STRATEGIC PLANS.
(a) Initial Regional Assessment.--
(1) In general.--Each Regional Coordination Council, shall,
within one year after the date of enactment of this Act,
prepare an initial assessment of its Coordination Region that
shall identify deficiencies in data and information necessary
to informed decisionmaking. Each initial assessment shall to
the extent feasible--
(A) identify the Coordination Region's renewable and
non renewable resources, including current and
potential energy resources;
(B) identify and include a spatially and temporally
explicit inventory of existing and potential uses of
the Coordination Region, including fishing and fish
habitat, tourism, recreation, and energy development;
(C) document the health and relative environmental
sensitivity of the marine ecosystem within the
Coordination Region, including a comprehensive survey
and status assessment of species, habitats, and
indicators of ecosystem health;
(D) identify marine habitat types and important
ecological areas within the Coordination Region;
(E) assess the Coordination Region's marine economy
and cultural attributes and include regionally-specific
ecological and socio-economic baseline data;
(F) identify and prioritize additional scientific and
economic data necessary to inform the development of
Strategic Plans; and
(G) include other information to improve decision
making as determined by the Regional Coordination
Council.
(2) Data.--Each initial assessment shall--
(A) use the best available data;
(B) collect and provide data in a spatially explicit
manner wherever practicable and provide such data to
the interagency comprehensive digital mapping
initiative as described in section 2 of Public Law 109-
58 (42 U.S.C. 15801); and
(C) make publicly available any such data that is not
classified information.
(3) Public participation.--Each Regional Coordination Council
shall provide adequate opportunity for review and input by
stakeholders and the general public during the preparation of
the initial assessment and any revised assessments.
(b) Regional Strategic Plans.--
(1) Requirement.--Each Regional Coordination Council shall,
within 3 years after the completion of the initial regional
assessment, prepare and submit to the Chairman of the Council
on Environmental Quality a multiobjective, science- and
ecosystem-based, spatially explicit, integrated Strategic Plan
in accordance with this subsection for the Council's
Coordination Region.
(2) Management objective.--The management objective of the
Strategic Plans under this subsection shall be to foster
comprehensive, integrated, and sustainable development and use
of ocean, coastal, and Great Lakes resources, while protecting
marine ecosystem health and sustaining the long-term economic
and ecosystem values of the oceans.
(3) Contents.--Each Strategic Plan prepared by a Regional
Coordination Council shall--
(A) be based on the initial regional assessment and
updates for the Coordination Region under subsections
(a) and (c), respectively;
(B) foster the sustainable and integrated development
and use of ocean, coastal, and Great Lakes resources in
a manner that protects the health of marine ecosystems;
(C) identify areas with potential for siting and
developing renewable and nonrenewable energy resources
in the Coordination Region covered by the Strategic
Plan;
(D) identify other current and potential uses of the
ocean and coastal resources in the Coordination Region;
(E) identify and recommend long-term monitoring needs
for ecosystem health and socioeconomic variables within
the Coordination Region covered by the Strategic Plan;
(F) identify existing State and Federal regulating
authorities within the Coordination Region covered by
the Strategic Plan;
(G) identify best available technologies to minimize
adverse environmental impacts and use conflicts in the
development of ocean and coastal resources in the
Coordination Region;
(H) identify additional research, information, and
data needed to carry out the Strategic Plan;
(I) identify performance measures and benchmarks for
purposes of fulfilling the responsibilities under this
section to be used to evaluate the Strategic Plan's
effectiveness;
(J) define responsibilities and include an analysis
of the gaps in authority, coordination, and resources,
including funding, that must be filled in order to
fully achieve those performance measures and
benchmarks; and
(K) include such other information at the Chairman of
the Council on Environmental Quality determines is
appropriate.
(4) Public participation.--Each Regional Coordination Council
shall provide adequate opportunities for review and input by
stakeholders and the general public during the development of
the Strategic Plan and any Strategic Plan revisions.
(c) Updated Regional Assessments.--Each Regional Coordination Council
shall update the initial regional assessment prepared under subsection
(a) in coordination with each Strategic Plan revision under subsection
(e), to provide more detailed information regarding the required
elements of the assessment and to include any relevant new information
that has become available in the interim.
(d) Review and Approval.--
(1) Commencement of review.--Within 10 days after receipt of
a Strategic Plan under this section, or any revision to such a
Strategic Plan, from a Regional Coordination Council, the
Chairman of the Council of Environmental Quality shall commence
a review of the Strategic Plan or the revised Strategic Plan,
respectively.
(2) Public notice and comment.--Immediately after receipt of
such a Strategic Plan or revision, the Chairman of the Council
of Environmental Quality shall publish the Strategic Plan or
revision in the Federal Register and provide an opportunity for
the submission of public comment for a 90-day period beginning
on the date of such publication.
(3) Requirements for approval.--Before approving a Strategic
Plan, or any revision to a Strategic Plan, the Chairman of the
Council on Environmental Quality must find that the Strategic
Plan or revision--
(A) is consistent with the Outer Continental Shelf
Lands Act;
(B) complies with subsection (b); and
(C) complies with the purposes of this title as
identified in section 601(a) and the objectives
identified in section 601(b).
(4) Deadline for completion.--Within 180 days after the
receipt of a Strategic Plan, or a revision to a Strategic Plan,
the Chairman of the Council of Environmental Quality shall
approve or disapprove the Strategic Plan or revision. If the
Chairman disapproves the Strategic Plan or revision, the
Chairman shall transmit to the Regional Coordination Council
that submitted the Strategic Plan or revision, an
identification of the deficiencies and recommendations to
improve it. The Council shall submit a revised Strategic Plan
or revision to such plan with 180 days after receiving the
recommendations from the Chairman.
(e) Plan Revision.--Each Strategic Plan shall be reviewed and revised
by the relevant Regional Coordination Council at least once every 5
years. Such review and revision shall be based on the most recently
updated regional assessment. Any proposed revisions to the Strategic
Plan shall be submitted to the Chairman of the Council on Environmental
Quality for review and approval pursuant to this section.
SEC. 604. REGULATIONS.
The Chairman of the Council on Environmental Quality may issue such
regulations as the Chairman considers necessary to ensure proper
administration of this title.
SEC. 605. OCEAN RESOURCES CONSERVATION AND ASSISTANCE FUND.
(a) Establishment.--
(1) In general.--There is established in the Treasury of the
United States a separate account to be known as the Ocean
Resources Conservation and Assistance Fund.
(2) Credits.--The ORCA Fund shall be credited with amounts as
specified in section 9 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1338), as amended by section 207 of this Act.
(3) Allocation of the orca fund.--
(A) In general.--Of the amounts deposited in the ORCA
Fund each fiscal year--
(i) 70 percent shall be allocated to the
Secretary, of which--
(I) 1/2 shall be used to make grants
to coastal States and affected Indian
tribes under subsection (b); and
(II) 1/2 shall be used for the ocean,
coastal, and Great Lakes grants program
established by subsection (c);
(ii) 20 percent shall be allocated to the
Secretary to carry out the purposes of
subsection (e); and
(iii) 10 percent shall be allocated to the
Secretary to make grants to Regional Ocean
Partnerships under subsection (d).
(B) Availability.--Amounts allocated to the Secretary
under subparagraph (A) shall be available without
further appropriation.
(4) Procedures.--The Secretary shall establish application,
review, oversight, financial accountability, and performance
accountability procedures for each grant program for which
funds are allocated under this subsection.
(b) Grants to Coastal States.--
(1) Grant authority.--The Secretary may use amounts allocated
under subsection (a)(3)(A)(I)(I) to make grants to--
(A) coastal States pursuant to the formula
established under section 306(c) of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1455(c)); and
(B) affected Indian tribes based on and proportional
to any specific coastal and ocean management authority
granted to an affected tribe pursuant to affirmation of
a Federal reserved right.
(2) Eligibility.--To be eligible to receive a grant under
this subsection, a coastal State or affected Indian tribe must
prepare and revise a 5-year plan and annual work plans that--
(A) demonstrate that activities for which the coastal
State or affected Indian tribe will use the funds are
consistent with the eligible uses of the Fund described
in subsection (f); and
(B) provide mechanisms to ensure that funding is made
available to government, nongovernment, and academic
entities to carry out eligible activities at the county
and local level.
(3) Approval of state and affected tribal plans.--
(A) In general.--Plans required under paragraph (2)
must be submitted to and approved by the Secretary.
(B) Public input and comment.--In determining whether
to approve such plans, the Secretary shall provide
opportunity for, and take into consideration, public
input and comment on the plans from stakeholders and
the general public.
(5) Energy planning grants.--For each of the fiscal years
2011 through 2015, the Secretary may use funds allocated for
grants under this subsection to make grants to coastal States
and affected tribes under section 320 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1451 et seq.), as amended by
this Act.
(6) Use of funds.--Any amounts provided as a grant under this
subsection, other than as a grants under paragraph (5), may
only be used for activities described in subsection (f).
(c) Ocean and Coastal Competitive Grants Program.--
(1) Establishment.--The Secretary shall use amounts allocated
under subsection (a)(3)(A)(I)(II) to make competitive grants
for conservation and management of ocean, coastal, and Great
Lakes ecosystems and marine resources.
(2) Ocean, coastal, and great lakes review panel.--
(A) In general.--The Secretary shall establish an
Ocean, Coastal, and Great Lakes Review Panel (in this
subsection referred to as the ``Panel''), which shall
consist of 12 members appointed by the Secretary with
expertise in the conservation and management of ocean,
coastal, and Great Lakes ecosystems and marine
resources. In appointing members to the Council, the
Secretary shall include a balanced diversity of
representatives of relevant Federal agencies, the
private sector, nonprofit organizations, and academia.
(B) Functions.--The Panel shall--
(i) review, in accordance with the procedures
and criteria established under paragraph (3),
grant applications under this subsection;
(ii) make recommendations to the Secretary
regarding which grant applications should be
funded and the amount of each grant; and
(iii) establish any specific requirements,
conditions, or limitations on a grant
application recommended for funding.
(3) Procedures and eligibility criteria for grants.--
(A) In general.--The Secretary shall establish--
(i) procedures for applying for a grant under
this subsection and criteria for evaluating
applications for such grants; and
(ii) criteria, in consultation with the
Panel, to determine what persons are eligible
for grants under the program.
(B) Eligible persons.--Persons eligible under the
criteria under subparagraph (A)(ii) shall include
Federal, State, affected tribal, and local agencies,
fishery or wildlife management organizations, nonprofit
organizations, and academic institutions.
(4) Approval of grants.--In making grants under this
subsection the Secretary shall give the highest priority to the
recommendations of the Panel. If the Secretary disapproves a
grant recommended by the Panel, the Secretary shall explain
that disapproval in writing.
(5) Use of grant funds.--Any amounts provided as a grant
under this subsection may only be used for activities described
in subsection (f).
(d) Grants to Regional Ocean Partnerships.--
(1) Grant authority.--The Secretary may use amounts allocated
under subsection (a)(3)(A)(iii) to make grants to Regional
Ocean Partnerships.
(2) Eligibility.--In order to be eligible to receive a grant,
a Regional Ocean Partnership must prepare and annually revise a
plan that--
(A) identifies regional science and information
needs, regional goals and priorities, and mechanisms
for facilitating coordinated and collaborative
responses to regional issues;
(B) establishes a process for coordinating and
collaborating with the Regional Coordination Councils
established under section 602 to address regional
issues and information needs and achieve regional goals
and priorities; and
(C) demonstrates that activities to be carried out
with such funds are eligible uses of the funds
identified in subsection (f).
(3) Approval by secretary.--Such plans must be submitted to
and approved by the Secretary.
(4) Public input and comment.--In determining whether to
approve such plans, the Secretary shall provide opportunity
for, and take into consideration, input and comment on the
plans from stakeholders and the general public.
(5) Use of funds.--Any amounts provided as a grant under this
subsection may only be used for activities described in
subsection (f).
(e) Long-term Ocean and Coastal Observations.--
(1) In general.--The Secretary shall use the amounts
allocated under subsection (a)(3)(A)(ii) to build, operate, and
maintain the system established under section 12304 of Public
Law 111-11 (33 U.S.C. 3603), in accordance with the purposes
and policies for which the system was established.
(2) Administration of funds.--The Secretary shall administer
and distribute funds under this subsection based upon
comprehensive system budgets adopted by the Council referred to
in section 12304(c)(1)(A) of the Integrated Coastal and Ocean
Observation System Act of 2009 (33 U.S.C. 3603(c)(1)(A)).
(f) Eligible Use of Funds.--Any funds made available under this
section may only be used for activities that contribute to the
conservation, protection, maintenance, and restoration of ocean,
coastal, and Great Lakes ecosystems in a manner that is consistent with
Federal environmental laws and that avoids environmental degradation,
including--
(1) activities to conserve, protect, maintain, and restore
coastal, marine, and Great Lakes ecosystem health;
(2) activities to protect marine biodiversity and living
marine and coastal resources and their habitats, including fish
populations;
(3) the development and implementation of multiobjective,
science- and ecosystem-based plans for monitoring and managing
the wide variety of uses affecting ocean, coastal, and Great
Lakes ecosystems and resources that consider cumulative impacts
and are spatially explicit where appropriate;
(4) activities to improve the resiliency of those ecosystems;
(5) activities to improve the ability of those ecosystems to
become more resilient, and to adapt to and withstand the
impacts of climate change and ocean acidification;
(6) planning for and managing coastal development to minimize
the loss of life and property associated with sea level rise
and the coastal hazards resulting from it;
(7) research, assessment, monitoring, and dissemination of
information that contributes to the achievement of these
purposes;
(8) research of, protection of, enhancement to, and
activities to improve the resiliency of culturally significant
areas and resources; and
(9) activities designed to rescue, rehabilitate, and recover
injured marine mammals, marine birds, and sea turtles.
(g) Definitions.--In this section:
(1) Orca fund.--The term ``ORCA Fund'' means the Ocean
Resources Conservation and Assistance Fund established by this
section
(2) Secretary.--Notwithstanding section 3, the term
``Secretary'' means the Secretary of Commerce.
SEC. 606. WAIVER.
The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to
the Regional Coordination Councils established under section 602.
TITLE VII--MISCELLANEOUS PROVISIONS
SEC. 701. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY RELIEF FOR THE
OIL AND GAS INDUSTRY.
(a) Provisions Relating to Planning Areas Offshore Alaska.--Section
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas
offshore Alaska'' after ``West longitude''.
(b) Provisions Relating to Naval Petroleum Reserve in Alaska.--
Section 107 of the Naval Petroleum Reserves Production Act of 1976 (as
transferred, redesignated, moved, and amended by section 347 of the
Energy Policy Act of 2005 (119 Stat. 704)) is amended--
(1) in subsection (i) by striking paragraphs (2) through (6);
and
(2) by striking subsection (k).
SEC. 702. CONSERVATION FEE.
(a) Establishment.--The Secretary shall, within 180 days after the
date of enactment of this Act, issue regulations to establish an annual
conservation fee for all oil and gas leases on Federal onshore and
offshore lands.
(b) Amount.--The amount of the fee shall be, for each barrel or
barrel equivalent produced from land that is subject to a lease from
which oil or natural gas is produced in a calendar year, $2 per barrel
of oil and 20 cents per million BTU of natural gas in 2010 dollars.
(c) Assessment and Collection.--The Secretary shall assess and
collect the fee established under this section.
(d) Regulations.--The Secretary may issue regulations to prevent
evasion of the fee under this section.
(e) Sunset.--This section and the fee established under this section
shall expire on December 31, 2021.
SEC. 703. LEASING ON INDIAN LANDS.
Nothing in this Act modifies, amends, or affects leasing on Indian
lands as currently carried out by the Bureau of Indian Affairs.
SEC. 704. OFFSHORE AQUACULTURE CLARIFICATION.
(a) No Authority.--The Secretary of Commerce, the Administrator of
the National Oceanic and Atmospheric Administration, or the Regional
Fishery Management Councils shall not develop or approve a fishery
management plan or fishery management plan amendment to permit or
regulate offshore aquaculture.
(b) Permits Invalid.--Any permit issued for the conduct of offshore
aquaculture, including the siting or operation of offshore aquaculture
facilities, under the Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. 1801 et seq.) shall be invalid upon enactment
of this Act.
(c) Definitions.--In this section:
(1) Offshore aquaculture.--The term ``offshore aquaculture''
means all activities related to--
(A) the placement of any installation, facility, or
structure in the exclusive economic zone for the
purposes of propagation or rearing, or attempting to
propagate or rear, any species; or
(B) the operation of offshore aquaculture facilities
in the exclusive economic zone involved in the
propagation or rearing, or attempted propagation or
rearing, of species.
(2) Offshore aquaculture facility.--The term ``offshore
aquaculture facility'' means--
(A) a structure, installation, or other complex used,
in whole or in part, for offshore aquaculture; or
(B) an area of the seabed or the subsoil used for
offshore aquaculture.
SEC. 705. OUTER CONTINENTAL SHELF STATE BOUNDARIES.
(a) General.--Not later than 2 years after the date of enactment of
this Act, the President, acting through the Secretary of the Interior,
shall publish a final determination under section 4(a)(2) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)) of the boundaries of
coastal States projected seaward to the outer margin of the Outer
Continental Shelf.
(b) Notice and Comment.--In determining the projected boundaries
specified in subsection (a), the Secretary shall comply with the notice
and comment requirements under chapter 5 of title 5, United States
Code.
(c) Savings Clause.--The determination and publication of projected
boundaries under subsection (a) shall not be construed to alter, limit,
or modify the jurisdiction, control, or any other authority of the
United States over the Outer Continental Shelf.
SEC. 706. LIABILITY FOR DAMAGES TO NATIONAL WILDLIFE REFUGES.
Section 4 of the National Wildlife Refuge System Administration Act
of 1966 (16 U.S.C. 668dd) is amended by adding at the end the following
new subsection:
``(p) Destruction or Loss of, or Injury to, Refuge Resources.--
``(1) Liability.--
``(A) Liability to united states.--Any person who
destroys, causes the loss of, or injures any refuge
resource is liable to the United States for an amount
equal to the sum of--
``(i) the amount of the response costs and
damages resulting from the destruction, loss,
or injury; and
``(ii) interest on that amount calculated in
the manner described under section1005 of the
Oil Pollution Act of 1990 (33 U.S.C. 2705).
``(B) Liability in rem.--Any instrumentality,
including a vessel, vehicle, aircraft, or other
equipment, that destroys, causes the loss of, or
injures any refuge resource shall be liable in rem to
the United States for response costs and damages
resulting from such destruction, loss, or injury to the
same extent as a person is liable under subparagraph
(A).
``(C) Defenses.--A person is not liable under this
paragraph if that person establishes that--
``(i) the destruction or loss of, or injury
to, the refuge resource was caused solely by an
act of God, an act of war, or an act or
omission of a third party, and the person acted
with due care;
``(ii) the destruction, loss, or injury was
caused by an activity authorized by Federal or
State law; or
``(iii) the destruction, loss, or injury was
negligible.
``(D) Limits to liability.--Nothing in sections 30501
to 30512 or section 30706 of title 46, United States
Code, shall limit the liability of any person under
this section.
``(2) Response actions.--The Secretary may undertake or
authorize all necessary actions to prevent or minimize the
destruction or loss of, or injury to, refuge resources, or to
minimize the imminent risk of such destruction, loss, or
injury.
``(3) Civil actions for response costs and damages.--
``(A) In general.--The Attorney General, upon request
of the Secretary, may commence a civil action against
any person or instrumentality who may be liable under
paragraph (1) for response costs and damages. The
Secretary, acting as trustee for refuge resources for
the United States, shall submit a request for such an
action to the Attorney General whenever a person may be
liable for such costs or damages.
``(B) Jurisdiction and venue.--An action under this
subsection may be brought in the United States district
court for any district in which--
``(i) the defendant is located, resides, or
is doing business, in the case of an action
against a person;
``(ii) the instrumentality is located, in the
case of an action against an instrumentality;
or
``(iii) the destruction of, loss of, or
injury to a refuge resource occurred.
``(4) Use of recovered amounts.--Response costs and damages
recovered by the Secretary under this subsection shall be
retained by the Secretary in the manner provided for in section
107(f)(1) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9607(f)(1))
and used as follows:
``(A) Response costs.--Amounts recovered by the
United States for costs of response actions and damage
assessments under this subsection shall be used, as the
Secretary considers appropriate--
``(i) to reimburse the Secretary or any other
Federal or State agency that conducted those
activities; and
``(ii) after reimbursement of such costs, to
restore, replace, or acquire the equivalent of
any refuge resource.
``(B) Other amounts.--All other amounts recovered
shall be used, in order of priority--
``(i) to restore, replace, or acquire the
equivalent of the refuge resources that were
the subject of the action, including the costs
of monitoring the refuge resources;
``(ii) to restore degraded refuge resources
of the refuge that was the subject of the
action, giving priority to refuge resources
that are comparable to the refuge resources
that were the subject of the action; and
``(iii) to restore degraded refuge resources
of other refuges.
``(5) Definitions.--In this subsection, the term--
``(A) `damages' includes--
``(i) compensation for--
``(I)(aa) the cost of replacing,
restoring, or acquiring the equivalent
of a refuge resource; and
``(bb) the value of the lost use of a
refuge resource pending its restoration
or replacement or the acquisition of an
equivalent refuge resource; or
``(II) the value of a refuge resource
if the refuge resource cannot be
restored or replaced or if the
equivalent of such resource cannot be
acquired;
``(ii) the cost of conducting damage
assessments;
``(iii) the reasonable cost of monitoring
appropriate to the injured, restored, or
replaced refuge resource; and
``(iv) the cost of enforcement actions
undertaken by the Secretary in response to the
destruction or loss of, or injury to, a refuge
resource;
``(B) `response costs' means the costs of actions
taken or authorized by the Secretary to minimize
destruction or loss of, or injury to, refuge resources,
or to minimize the imminent risks of such destruction,
loss, or injury, including costs related to seizure,
forfeiture, storage, or disposal arising from
liability, or to monitor ongoing effects of incidents
causing such destruction, loss, or injury under this
subsection; and
``(C) `refuge resource' means any living or nonliving
resource of a refuge that contributes to the
conservation, management, and restoration mission of
the System, including living or nonliving resources of
a marine national monument that may be managed as a
unit of the System.''.
SEC. 707. STRENGTHENING COASTAL STATE OIL SPILL PLANNING AND RESPONSE.
The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.) is
amended adding at the end the following new section:
``SEC. 320. STRENGTHENING COASTAL STATE OIL SPILL RESPONSE AND
PLANNING.
``(a) Grants to States.--The Secretary may make grants to eligible
coastal states--
``(1) to revise management programs approved under section
306 (16 U.S.C. 1455) to identify and implement new enforceable
policies and procedures to ensure sufficient response
capabilities at the state level to address the environmental,
economic and social impacts of oil spills or other accidents
resulting from Outer Continental Shelf energy activities with
the potential to affect any land or water use or natural
resource of the coastal zone; and
``(2) to review and revise where necessary applicable
enforceable policies within approved state management programs
affecting coastal energy activities and energy to ensure that
these policies are consistent with--
``(A) other emergency response plans and policies
developed under Federal or State law; and
``(B) new policies and procedures developed under
paragraph (1); and
``(3) after a State has adopted new or revised enforceable
policies and procedures under paragraphs (1) and (2)--
``(A) the State shall submit the policies and
procedures to the Secretary; and
``(B) the Secretary shall notify the State whether
the Secretary approves or disapproves the incorporation
of the policies and procedures into the State's
management program pursuant to section 306(e).
``(b) Elements.--New enforceable policies and procedures developed by
coastal states with grants awarded under this section shall consider,
but not be limited to--
``(1) other existing emergency response plans, procedures and
enforceable policies developed under other Federal or State law
that affect the coastal zone;
``(2) identification of critical infrastructure essential to
facilitate spill or accident response activities;
``(3) identification of coordination, logistics and
communication networks between Federal and State government
agencies, and between State agencies and affected local
communities, to ensure the efficient and timely dissemination
of data and other information;
``(4) inventories of shore locations and infrastructure and
equipment necessary to respond to oil spills or other accidents
resulting from Outer Continental Shelf energy activities;
``(5) identification and characterization of significant or
sensitive marine ecosystems or other areas possessing important
conservation, recreational, ecological, historic, or aesthetic
values;
``(6) inventories and surveys of shore locations and
infrastructure capable of supporting alternative energy
development; and
``(7) other information or actions as may be necessary.
``(c) Guidelines.--The Secretary shall, within 180 days after the
date of enactment of this section and after consultation with the
coastal states, publish guidelines for the application for and use of
grants under this section.
``(d) Participation.--A coastal state shall provide opportunity for
public participation in developing new enforceable policies and
procedures under this section pursuant to sections 306(d)(1) and
306(e), especially by relevant Federal agencies, other coastal state
agencies, local governments, regional organizations, port authorities,
and other interested parties and stakeholders, public and private, that
are related to, or affected by Outer Continental Shelf energy
activities.
``(e) Annual Grants.--
``(1) In general.--For each of fiscal years 2011 through
2015, the Secretary may make a grant to a coastal state to
develop new enforceable polices and procedures as required
under this section.
``(2) Grant amounts and limit on awards.--The amount of any
grant to any one coastal State under this section shall not
exceed $750,000 for any fiscal year. No coastal state may
receive more than two grants under this section.
``(3) No state matching contribution required.--As it is in
the national interest to be able to respond efficiently and
effectively at all levels of government to oil spills and other
accidents resulting from Outer Continental Shelf energy
activities, a coastal state shall not be required to contribute
any portion of the cost of a grant awarded under this section.
``(4) Secretarial review and limit on awards.--After an
initial grant is made to a coastal state under this section, no
subsequent grant may be made to that coastal state under this
section unless the Secretary finds that the coastal state is
satisfactorily developing revisions to address offshore energy
impacts. No coastal state is eligible to receive grants under
this section for more than 2 fiscal years.
``(f) Applicability.--The requirements of this section shall only
apply if appropriations are provided to the Secretary to make grants
under this section. This section shall not be construed to convey any
new authority to any coastal state, or repeal or supersede any existing
authority of any coastal state, to regulate the siting, licensing,
leasing, or permitting of energy facilities in areas of the Outer
Continental Shelf under the administration of the Federal Government.
Nothing in this section repeals or supersedes any existing coastal
state authority.
``(g) Assistance by the Secretary.--The Secretary as authorized under
section 310(a) and to the extent practicable, shall make available to
coastal states the resources and capabilities of the National Oceanic
and Atmospheric Administration to provide technical assistance to the
coastal states to prepare revisions to approved management programs to
meet the requirements under this section.''.
SEC. 708. INFORMATION SHARING.
Section 388(b) of the Energy Policy Act of 2005 (43 U.S.C. 1337 note)
is amended by adding at the end the following:
``(4) Availability of data and information.--All heads of
departments and agencies of the Federal Government shall, upon
request of the Secretary, provide to the Secretary all data and
information that the Secretary deems necessary for the purpose
of including such data and information in the mapping
initiative, except that no department or agency of the Federal
Government shall be required to provide any data or information
that is privileged or proprietary.''.
SEC. 709. REPEAL OF FUNDING.
Effective October 1, 2010, section 999H of the Energy Policy Act of
2005 (42 U.S.C. 16378) is amended--
(1) by striking subsections (a), (b), (c), and (f);
(2) by redesignating subsections (d) and (e) as subsections
(a) and (b), respectively;
(3) in subsection (a), as so redesignated, by striking
``obligated from the Fund under subsection (a)(1)'' and
inserting ``available under this section''; and
(4) in subsection (b), as so redesignated, by striking ``In
addition to other amounts that are made available to carry out
this section, there'' and inserting ``There''.
SEC. 710. LIMITATION ON USE OF FUNDS.
None of the funds authorized or made available by this Act may be
used to carry out any activity or pay any cost for which a responsible
party (as such term is defined in section 1001 of the Oil Pollution Act
of 1990 (33 U.S.C. 2701)) is liable under the Oil Pollution Act of 1990
(33 U.S.C. 2701 et seq.) or other law.
SEC. 711. ADDITIONAL PUBLIC-RIGHT-TO-KNOW REQUIREMENTS.
The Secretary of the Interior shall make publicly available in a
database that is accessible by the public through the Internet
information regarding judicial actions filed against the Department of
the Interior regarding leasing, production, exploration, or any related
activities under the Outer Continental Shelf Lands Act, the Mineral
Leasing Act, the Geothermal Steam Act of 1970, including any action
under any amendment to any of those laws made by this Act. The database
shall include a list the full amount of attorney's fees required to be
paid in such actions by court order or settlement agreement.
SEC. 712. FEDERAL RESPONSE TO STATE PROPOSALS TO PROTECT STATE LANDS
AND WATERS.
Any State shall be entitled to timely decisions regarding permit
applications or other approvals from any Federal official, including
the Secretary of the Interior or the Secretary of Commerce, for any
State or local government response activity to protect State lands and
waters that is directly related to the discharge of oil determined to
be a spill of national significance. Within 48 hours of the receipt of
the State application or request for approval, the Federal official
shall provide a clear determination on the permit application or
approval request to the State, or provide a definite date by which the
determination shall be made to the State. If the Federal official fails
to meet either of these deadlines, the permit application is presumed
to be approved or other approval granted.
TITLE VIII--GULF OF MEXICO RESTORATION
SEC. 801. GULF OF MEXICO RESTORATION PROGRAM.
(a) Program.--There is established a Gulf of Mexico Restoration
Program for the purposes of coordinating Federal, State, and local
restoration programs and projects to maximize efforts in restoring
biological integrity, productivity and ecosystem functions in the Gulf
of Mexico.
(b) Gulf of Mexico Restoration Task Force.--
(1) Establishment.--There is established a task force to be
known as the Gulf of Mexico Restoration Task Force (in this
section referred to as the ``Restoration Task Force'').
(2) Membership.--The Restoration Task Force shall consist of
the Governors of each of the Gulf coast States and the heads of
appropriate Federal agencies selected by the President. The
chairperson of the Restoration Task Force (in this subsection
referred to as the ``Chair'') shall be appointed by the
President. The Chair shall be a person who, as the result of
experience and training, is exceptionally well-qualified to
manage the work of the Restoration Task Force. The Chair shall
serve in the Executive Office of the President.
(3) Advisory committees.--The Restoration Task Force may
establish advisory committees and working groups as necessary
to carry out is its duties under this Act.
(c) Gulf of Mexico Restoration Plan.--
(1) In general.--Not later than nine months after the date of
enactment of this Act, the Restoration Task Force shall issue a
proposed comprehensive plan for long-term restoration of the
Gulf of Mexico. Not later than 12 months after the date of
enactment and after notice and opportunity for public comment,
the Restoration Task Force shall publish a final plan. The Plan
shall be updated every five years in the same manner.
(2) Elements of restoration plans.--The Plan shall--
(A) identify processes and strategies for
coordinating Federal, State, and local restoration
programs and projects to maximize efforts in restoring
biological integrity, productivity and ecosystem
functions in the Gulf of Mexico region;
(B) identify mechanisms for scientific review and
input to evaluate the benefits and long-term
effectiveness of restoration programs and projects;
(C) identify, using the best science available,
strategies for implementing restoration programs and
projects for natural resources including--
(i) restoring species population and habitat
including oyster reefs, sea grass beds, coral
reefs, tidal marshes and other coastal wetlands
and barrier islands and beaches;
(ii) restoring fish passage and improving
migratory pathways for wildlife;
(iii) research that directly supports
restoration programs and projects;
(iv) restoring the biological productivity
and ecosystem function in the Gulf of Mexico
region; and
(v) improving the resilience of natural
resources to withstand the impacts of climate
change and ocean acidification to ensure the
long-term effectiveness of the restoration
program.
(3) Report.--The Task Force shall annually provide a report
to Congress about the progress in implementing the Plan.
(d) Definitions.--For purposes of this section, the term--
(1) ``Gulf coast State'' means each of the States of Texas,
Louisiana, Mississippi, Alabama, and Florida; and
(2) ``restoration programs and projects'' means activities
that support the restoration, rehabilitation, replacement, or
acquisition of the equivalent, of injured or lost natural
resources including the ecological services and benefits
provided by such resources.
(e) Relationship to Other Law.--Nothing in this section affects the
ability or authority of the Federal Government to recover costs from a
person determined to be a responsible party pursuant to the Oil
Pollution Act of 1990 (33 U.S.C. 2701 et seq.) or other law.
TITLE IX--GEOTHERMAL PRODUCTION EXPANSION
SEC. 901. SHORT TITLE.
This title may be cited as the ``Geothermal Production Expansion
Act''.
SEC. 902. FINDINGS.
The Congress finds the following:
(1) It is in the best interest of the United States to
develop clean renewable geothermal energy.
(2) Development of such energy should be promoted on
appropriate Federal lands.
(3) Under the Energy Policy Act of 2005, the Bureau of Land
Management is authorized to issue three different types of non-
competitive leases for production of geothermal energy on
Federal lands, including non-competitive geothermal leases to
mining claim holders that have a valid operating plan, direct
use leases, and leases on parcels that do not sell at a
competitive auction.
(4) Federal geothermal energy leasing activity should be
directed towards those seeking to develop the land as opposed
to those seeking to speculate on geothermal resources and
thereby artificially raising the cost of legitimate geothermal
energy development.
(5) Developers of geothermal energy on Federal lands that
have invested substantial capital and made high risk
investments should be allowed to secure a discovery of
geothermal energy resources.
(6) Successful geothermal development on Federal lands will
provide increased revenue to the Federal Government, with the
payment of production royalties over decades.
SEC. 903. NONCOMPETITIVE LEASING OF ADJOINING AREAS FOR DEVELOPMENT OF
GEOTHERMAL RESOURCES.
(a) In General.--Section 4(b) of the Geothermal Steam Act of 1970 (30
U.S.C. 1003(b)) by adding at the end the following:
``(4) Adjoining lands.--
``(A) In general.--An area of qualified Federal lands
that adjoins other lands for which a qualified lessee
holds a legal right to develop geothermal resources may
be available for noncompetitive lease under this
section to the qualified lessee at the fair market
value per acre, if--
``(i) the area of qualified Federal lands--
``(I) consists of not less than 1
acre, and not more than 640 acres; and
``(II) is not already leased under
this Act or nominated to be leased
under subsection (a);
``(ii) the qualified lessee has not
previously received a noncompetitive lease
under this paragraph in connection with the
valid discovery for which data has been
submitted under subclause (I) of clause (iii);
and
``(iii) sufficient geological and other
technical data prepared by a qualified
geothermal professional has been submitted by
the qualified lessee to the relevant Federal
land management agency that would engender a
belief in individuals who are experienced in
the subject matter that--
``(I) there is a valid discovery of
geothermal resources on the lands for
which the qualified lessee holds the
legal right to develop geothermal
resources; and
``(II) such thermal feature extends
into the adjoining areas.
``(B) Determination of fair market value.--
``(i) In general.--The Secretary shall--
``(I) publish a notice of any request
to lease land under this paragraph;
``(II) determine fair market value
for purposes of this paragraph in
accordance with procedures for making
such determinations that are
established by regulations issued by
the Secretary;
``(III) provide to a qualified lessee
and publish any proposed determination
under this subparagraph of the fair
market value of an area that the
qualified lessee seeks to lease under
this paragraph;
``(IV) provide to such qualified
lessee the opportunity to appeal such
proposed determination within the 30-
day period after it is provided to the
qualified lessee; and
``(V) provide to any interested
member of the public the opportunity to
appeal such proposed determination in
accordance with the process set forth
in parts 4, 1840, and 3200.5 of title
43, Code of Federal Regulations (as in
effect on the date of enactment of the
Geothermal Production Expansion Act)
within the 30-day period after it
published.
``(ii) Limitation on nomination.--After
publication of a notice of request to lease
land under this paragraph, the Secretary may
not accept under subsection (a) any nomination
of the land for leasing unless the request has
been denied or withdrawn.
``(iii) Regulations: deadline; publication of
proposed regulations.--The regulations required
under clause (i) shall be issued by not later
than 90 days after the date of enactment of
this Act, and after publication of, and an
opportunity for public comment on, the proposed
regulations.
``(C) Definitions.--In this paragraph--
``(i) the term `fair market value per acre'
means a dollar amount per acre that--
``(I) except as provided in this
clause, shall be equal to the market
value per acre as determined by the
Secretary under regulations under this
paragraph;
``(II) shall be determined by the
Secretary with respect to a lease under
this paragraph, by not later than the
end of the 90-day period beginning on
the date the Secretary receives an
application for the lease; and
``(III) shall be not less than the
greater of--
``(aa) four times the median
amount paid per acre for all
lands leased under this Act in
the preceding year; or
``(bb) $50;
``(ii) the term `industry standards' means
the standards by which a qualified geothermal
professional assesses whether downhole or
flowing temperature measurements with
indications of permeability are sufficient to
produce energy from geothermal resources as
determined through flow or injection testing or
measurement of lost circulation while drilling;
``(iii) the term `qualified Federal lands'
means lands that are otherwise available for
leasing under this Act;
``(iv) the term `qualified geothermal
professional' means an individual who is an
engineer or geoscientist in good professional
standing with at least five years of experience
in geothermal exploration, development, project
assessment, or any combination of the forgoing;
``(v) the term `qualified lessee' means a
person that may hold a geothermal lease under
part 3202.10 of title 43, Code of Federal
Regulations, as in effect on the date of
enactment of the Geothermal Production
Expansion Act; and
``(vi) the term `valid discovery' means a
discovery of a geothermal resource by a new or
existing slim hole or production well, that
exhibits downhole or flowing temperature
measurements with indications of permeability
sufficient to meet industry standards.''.
(b) Deadline for Regulations.--The Secretary shall issue regulations
to implement the amendment made by subsection (a), by not later than 6
months after the date of the enactment of this Act.
Purpose of the Bill
The purpose of H.R. 3534, the Consolidated Land, Energy,
and Aquatic Resources (CLEAR) Act of 2010, as ordered reported,
is to promote energy policy reforms and public accountability,
improve the safety of offshore drilling, coordinate restoration
activities in the Gulf of Mexico, provide for better management
of renewable energy on public lands, create a new planning
process for oceans, coastal zones, and the Great Lakes, and for
other purposes.
Background and Need for Legislation
H.R. 3534 is fiscally responsible legislation which
addresses the nation's needs for a more sound energy policy
with regard to public lands and natural resources. The bill
reorganizes the Department of the Interior to provide for
better management of energy resources on federal lands and
waters, and to eliminate the conflicts that can arise between
the missions of leasing, inspection and enforcement, and
revenue collection. In response to the Deepwater Horizon
tragedy of April 20, 2010, and the subsequent spilling of 94
million to 184 million gallons of oil into the Gulf of Mexico
over the following three months, the bill also substantially
amends the Outer Continental Shelf Lands Act to require
significantly stronger safety standards and increased
environmental reviews of offshore drilling activities. To
address the environmental devastation caused by the spill, the
bill creates a Gulf of Mexico Restoration Task Force to help
coordinate recovery efforts. In order to ensure that American
taxpayers receive their fair share from companies that extract
resources from public lands, the bill includes numerous fiscal
accountability provisions that close royalty loopholes and
increase penalties on violators.
This legislation is the culmination of more than three
dozen hearings conducted by the full Committee and its
subcommittees since January of 2007. The legislation was
initially introduced on September 8, 2009, and was
substantially amended in the aftermath of the Deepwater Horizon
incident, which highlighted the need for enhanced safety
standards on the Outer Continental Shelf. Key provisions
included in H.R. 3534 as reported by the Committee will:
Create three separate agencies within the Department of the
Interior for the management of energy and mineral resources on
federal lands and waters: the Bureau of Energy and Resource
Management, which will be responsible for leasing and
permitting; the Bureau of Safety and Environmental Enforcement,
which will be responsible for safety and environmental
inspections; and the Office of Natural Resources Revenue, which
will be responsible for all revenue collection from energy and
mineral-related activities. The duties for all three agencies
extend to onshore and offshore activities.
Require more stringent safety regulations for oil and gas
operations on the Outer Continental Shelf, including
determinations that lessees are able to immediately effectively
respond to worst-case oil spills, independent third-party
certifications of crucial safety components, the adoption of
safety cases and safety and environmental management systems,
stiffer penalties for regulatory violations, certifications
from operators of safe practices, more frequent and thorough
inspections, and enhanced requirements to use best-available
technologies.
Forbid companies with egregious safety and environmental
records from obtaining new leases on the Outer Continental
Shelf.
Impose supplemental ethics requirements on Department of
the Interior employees who have regular, direct contact with
lessees, and impose new revolving-door restrictions to prevent
individuals from moving back and forth from the Department to
the energy industry.
Establish a Gulf of Mexico Restoration Task Force, made up
of federal agencies and Gulf state governors, to develop a
long-term restoration plan for the Gulf Coast.
Provide for new standards to ensure that federal energy
lessees are diligently developing their leases.
Reform the onshore oil and gas leasing system to eliminate
noncompetitive oil and gas leasing, allow for auctions with
sealed bids, increase the minimum bid and yearly rentals, allow
the Secretary of the Interior to ensure that the American
people are receiving the appropriate value for the mineral
leasing rights, and reduce the mandated number of lease sales.
Require companies that are producing oil or gas from the
Gulf of Mexico royalty-free because of a lack of price
thresholds in their leases to renegotiate those leases to
include price thresholds before they can obtain new leases.
Because of a lawsuit brought against the government by the
Kerr-McGee Corporation (now Anadarko), companies are currently
paying no royalties on production from leases issued between
1996 and 2000. The Government Accountability Office has
calculated that this could cost American taxpayers up to $53
billion over the life of the leases.
Permanently eliminate the scandal-ridden Royalty-in-Kind
Program.
Eliminate the categorical exclusions that were statutorily
included in the Energy Policy Act of 2005, and which the
Government Accountability Office has found ``may have thwarted
[the National Environmental Policy Act's] twin aims of ensuring
that the Bureau of Land Management (BLM) and the public are
fully informed of the environmental consequences of BLM's
actions.''
Make uranium a leasable mineral, subject to rental and
royalty rates, which will increase predictability of where and
when development occurs, and help protect national treasures
such as the Grand Canyon.
Fully fund the Land and Water Conservation Fund and the
Historic Preservation Fund with $900 million and $150 million
each year, respectively, taken from offshore drilling revenues.
Create a new Ocean Resources Conservation and Assistance
(ORCA) Fund, which will receive 10% of offshore drilling
revenues each year, and would provide grants to coastal states
and Regional Ocean Partnerships for activities that contribute
to the protection, maintenance, and restoration of ocean,
coastal and Great Lakes ecosystems.
Committee Action
H.R. 3534 was introduced by Natural Resources Committee
Chairman Nick J. Rahall II (D-WV) on September 8, 2009. The
bill was referred to the Committee on Natural Resources. Full
committee hearings were held on September 16 and 17, 2009, and
again on June 30, 2010 on a new discussion draft revised in
order to address the impacts and issues associated with the
Deepwater Horizon oil spill.
In addition, 14 hearings were held by the full Committee or
its subcommittees on topics related to H.R. 3534 during the
111th Congress:
February 11, 2009, Full Committee oversight
hearing on ``Offshore Drilling: Environmental and Commercial
Perspectives.'' This was the first of a three-part series of
full committee hearings held to examine the question of what
comes next on the Outer Continental Shelf (OCS) in the
aftermath of the expiration of the Congressional moratorium and
the revocation of the Presidential withdrawal, which had both
protected large swaths of the Atlantic and Pacific coasts from
oil and gas drilling. In this hearing, the Committee heard from
representatives of environmental groups, tourist bureaus, and
fishing groups, who argued that an expansion of offshore
drilling into areas previously under a moratorium could lead to
environmental and economic damage.
February 24, 2009, Full Committee oversight
hearing on ``Offshore Drilling: State Perspectives.'' This was
the second of the three-part series on the future of the OCS in
the post-moratorium landscape, and the Committee heard
testimony from two Members of Congress from California, as well
as state witnesses from California, Maine, Virginia, and
Louisiana. The witnesses from Virginia and Louisiana were
supportive of additional oil and gas drilling off their coasts,
while the witnesses from California and Maine were opposed to
additional drilling.
February 25, 2009, Full Committee oversight
hearing on ``Offshore Drilling: Industrial Perspectives.'' This
was the final hearing of the three-part series. During this
hearing the Committee heard testimony from top executives from
BP, Shell, ExxonMobil, Chevron, and Devon, who testified about
their ability to expand oil and gas drilling into new areas in
a safe and environmentally protective manner.
March 5, 2009, Subcommittee on Energy and Mineral
Resources oversight hearing on ``Energy Outlooks, and the Role
of Federal Onshore and Offshore Resources in Meeting Future
Energy Demand.'' The Subcommittee heard testimony from the
acting head of the Energy Information Administration (EIA), the
chief economist of the International Energy Agency (IEA), and
the coordinator of the U.S. Geological Survey's Energy Resource
Program, on their outlooks for future energy supply and demand,
and how federal lands and the OCS fit into this picture. The
EIA previewed their Annual Energy Outlook 2009, in which they
calculated that restoring the moratorium on the Atlantic and
Pacific coasts would result in a roughly 540,000 barrel/day
reduction in domestic production by 2030, a 7.4% decrease,
which translates to a 3-cent increase in the price of a gallon
of gasoline.
March 17, 2009, Subcommittee on Energy and Mineral
Resources oversight hearing on ``Leasing and Development of Oil
and Gas Resources on the Outer Continental Shelf.'' This
hearing focused largely on the question of whether companies
were diligently developing their leases on the OCS. The
Department of the Interior's Acting Inspector General (IG)
testified that companies that own federal drilling leases
``have little obligation to actually produce,'' and that the
Department of the Interior, ``has no formal policy to compel
companies to bring these leases into production.'' The IG also
testified that BLM and the Minerals Management Service (MMS)
employed ``inconsistent procedures and definitions and that
BLM's records are often incomplete and inaccurate, all of which
call into question both the integrity and usefulness of their
data.'' The Government Accountability Office testified that
``Interior does less to encourage development of federal oil
and gas leases than some state and private landowners,'' and
that the U.S. ``receives one of the lowest shares of revenue
for oil and gas resources compared with other countries.''
March 24, 2009, Subcommittees on Energy and
Mineral Resources and Insular Affairs, Oceans & Wildlife joint
oversight hearing on ``Energy Development on the Outer
Continental Shelf and the Future of our Oceans.'' The
subcommittees heard testimony from state and local government
officials, academics, environmental groups, and representatives
of the private sector regarding recommendations on how to have
offshore energy development coexist with healthy, productive
oceans. Many of the witnesses stressed the need to conduct
marine spatial planning to determine the most effective and
protective ways to site activities in the oceans. Two witnesses
also testified about the impacts of offshore energy
development--in particular chemical discharges and seismic
surveys--on marine life.
May 11, 2009, Subcommittee on Energy and Mineral
Resources oversight field hearing on ``Solar Energy Development
on Federal Lands: The Road To Consensus.'' The subcommittee met
in Palm Desert, California, to hear testimony regarding efforts
to build solar energy facilities on federal lands. The
California desert is one of the most promising locations for
solar energy facilities in the world, but local landowners and
environmental groups have expressed concern about a wholesale
land rush that would destroy sensitive desert habitats and
negatively impact endangered or threatened species. The Bureau
of Land Management testified about the large backlog of
applications they were processing, while officials from the
State of California discussed their Renewable Energy
Transmission Initiative (RETI), a stakeholder-driven
collaborative process designed to find the best locations for
new transmission lines for electricity generated from renewable
sources.
September 9, 2009, Subcommittee on Energy and
Mineral Resources legislative hearing on the ``American
Conservation and Clean Energy Independence Act'' (H.R. 2227).
The subcommittee met to hear testimony on legislation
introduced by Representatives Tim Murphy (R-PA) and Neil
Abercrombie (D-HI) that would expand and accelerate leasing on
the Outer Continental Shelf, and provide for revenue sharing
with coastal states.
February 24, 2010, Subcommittee on Energy and
Mineral Resources legislative hearing on the ``Geothermal
Production Expansion Act'' (H.R. 3709). The subcommittee heard
testimony on a bill introduced by Representative Jay Inslee (D-
WA) that would provide for noncompetitive geothermal leasing of
federal lands in instances where a prospective lessee had made
a discovery of geothermal resources on adjacent lands.
May 26 & 27, 2010, Full Committee oversight
hearing on the ``Outer Continental Shelf Oil and Gas Strategy
and Implications of the Deepwater Horizon Rig Explosion.'' This
two-day hearing investigated the causes and aftermath of the
explosion and sinking of the Mobile Offshore Drilling Unit
(MODU) Deepwater Horizon in the Gulf of Mexico. The Committee
questioned the Chairman of BP America and the CEO of
TransOcean, LLC about the circumstances leading up to the
disaster and their companies' respective responsibilities with
respect to the cleanup. The Committee also heard from Secretary
of the Interior Ken Salazar about his plans to reorganize the
Minerals Management Service, and how this incident would impact
future oil and gas activity on the OCS. In addition, the Acting
Inspector General of the Department of the Interior presented
the results of her office's latest report, which detailed
ethical issues within the offshore inspection program. In
particular, the IG highlighted problems with the ``revolving
door'' that exists between MMS and the oil and gas industry.
June 10, 2010, Subcommittee on Insular Affairs,
Oceans and Wildlife oversight hearing on ``Our Natural
Resources at Risk: The Short and Long Term Impacts of the
Deepwater Horizon Oil Spill.'' This hearing explored short and
long term impacts to trust resources, including fisheries,
birds and other wildlife, marine mammals, tribal resources, and
protected fish and wildlife habitat and other natural areas as
a result of the Deepwater Horizon oil spill. It also examined
the implications for local communities who depend on many of
those resources for their livelihoods. The National Oceanic and
Atmospheric Administration and the Department of Interior both
testified on the need for more resources to provide oil spill
trajectory models to guide response and recovery activities and
to conduct accurate and legally defensible natural resource
damage assessments.
The Committee also heard from the Louisiana Department of
Wildlife and Fisheries, the Marine Mammal Commission, the
United Houma Nation, and representatives from the commercial
and recreational fishing industries, seafood industry, tourism
industry, scientific community, and environmental
organizations, all of whom testified as to on-the-ground social
and environmental impacts of the oil spill and the critical
need for up-to-date, transparent, and consistent lines of
communication with state and federal government officials
regarding response and recovery activities.
June 15, 2010, Subcommittee on Insular Affairs,
Oceans and Wildlife oversight hearing on ``Ocean Science and
Data Limits in a Time of Crisis: Do NOAA and the Fish and
Wildlife Service (FWS) Have the Resources to Respond?'' This
hearing explored what we know and do not know about the
environment to guide oil spill response and recovery activities
in the Gulf of Mexico. In particular, it examined the gaps and
limits in our understanding of the complex estuarine, coastal,
and marine environments of the Gulf, and especially, how
limited investments in coastal science programs and ocean
observation systems have affected the capability of federal
agencies to provide timely and accurate scientific information
to target response activities and to assess damages to natural
resources.
June 17, 2010, Subcommittee on Energy and Mineral
Resources oversight hearing on ``The Deepwater Horizon
Incident: Are the Minerals Management Service Regulations Doing
The Job?'' This hearing examined both the existing MMS
regulatory structure for offshore drilling, and the plans
proposed by the Secretary of the Interior for reorganizing the
Minerals Management Service. The Acting Inspector General of
the Department of the Interior testified on the problems with
MMS's inspection program: a shortage of regulations covering
the program, difficulty in recruiting and retaining inspectors
due to competition with industry, out-of-date inspector
training programs, and an inadequate number of inspectors to
cover all offshore facilities. The Government Accountability
Office testified about their investigations into the
shortcomings of the inspection and enforcement program,
including high turnover rates, inconsistent procedures between
BLM and MMS, and inappropriate relationships between Interior
Department staff and the oil and gas industry.
The committee also heard from a whistleblower about a
potential shortage of technical documentation for another
offshore drilling rig, the BP Atlantis production platform;
from an international regulatory expert about how safety cases
are implemented to other countries to improve offshore drilling
safety; from the American Petroleum Institute about how the
industry develops standards and recommended practices; from the
Project on Government Oversight about the need for strong new
ethics requirements; and from the Pew Environment Group about
recommended changes to the Outer Continental Shelf Lands Act.
June 24, 2010, Subcommittee on Insular Affairs,
Oceans and Wildlife oversight hearing on ``State Planning for
Offshore Energy Development: Standards for Preparedness.'' This
hearing explored coastal state planning for offshore energy
development and examined whether current planning efforts and
requirements under existing law were sufficient to ensure a
coordinated and effective response to major spills. The hearing
also examined whether coastal states have adequate emergency
response infrastructure in place, and if their capabilities to
inform and mobilize networks of potentially affected
communities are sufficient.
The Committee heard from the Chair of the Gulf of Mexico
Alliance, who testified on the significant role played by this
regional ocean partnership to respond to the research,
monitoring, and remediation needs brought on by the Deepwater
Horizon disaster. The Executive Director of the Coastal States
Organization testified on the need for further guidance and
funding to coastal states to strengthen their federally-
approved state coastal management plans for oil spill response
and planning. A Jackson County, Mississippi Supervisor
testified on the need to build local capacity, both in
personnel and infrastructure, to increase communication and
coordination in the event of another oil spill. The Executive
Director from the National Estuarine Research Reserve (NERR)
Association testified on the necessary role that NERRs play in
collecting long-term baseline data that can help serve as a
foundation for natural resource damage assessments. The
Executive Vice President of the Ocean Conservancy testified on
the need for industry to fund research to increase
understanding of the fate of oil and dispersant in the ocean
environment and to increase capacity in responding to and
recovering from oil spills.
Full Committee Markup Action
On Wednesday, July 14, and Thursday, July 15, 2010, the
Natural Resources Committee met in open session to consider
H.R. 3534. Natural Resources Committee Chairman Nick J. Rahall,
II (D-WV) offered an amendment in the nature of a substitute.
Rep. George Miller (D-CA) offered an amendment.184 to
section 206 of the amendment in the nature of a substitute to
disqualify companies from bidding on leases or drilling wells
if they have certain violations of health, safety, and
environmental laws in the preceding 7 years, which was agreed
to by voice vote.
Ranking Member Doc Hastings (R-WA) offered an amendment.110
to the amendment in the nature of a substitute to strike Titles
II, III, IV, V, VI, and VII (except sections 703 and 710),
which was not agreed to by a roll call vote of 17 yeas and 21
nays, as follows:
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Rep. Miller offered an amendment.009 to the amendment in
the nature of a substitute to require consultation with the
Secretary of Labor to address worker safety and health, which
was withdrawn.
Rep. Miller offered an amendment.002 to the amendment in
the nature of a substitute to amend Title VII to extend
whistleblower and anti-retaliation protections to workers on
the Outer Continental Shelf, which was withdrawn.
Rep. Bill Cassidy (R-LA) offered an amendment.010 to the
amendment in the nature of a substitute to establish a National
Commission on Oil Spill Prevention in the legislative branch,
which was agreed to by voice vote.
Rep. Edward Markey (D-MA) offered an amendment.090 to the
amendment in the nature of a substitute to prohibit the
issuance of new leases to any company holding a lease issued
from 1996-2000 and has not renegotiated that lease to add price
thresholds, which was agreed to by voice vote.
Rep. Jeff Flake (R-AZ) offered an amendment.241 to the
amendment in the nature of a substitute to strike section 242,
which was not agreed to by a roll call vote of 18 yeas and 22
nays, as follows:
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Rep. Markey offered an amendment.091 to the amendment in
the nature of a substitute to establish a pilot leasing program
for wind and solar energy on federal lands and a National
Academy of Sciences study examining competitive versus
noncompetitive leasing systems for wind and solar projects,
which was not agreed to by a roll call vote of 15 yeas and 28
nays, as follows:
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Rep. Hastings offered an amendment.120 to the amendment in
the nature of a substitute to strike Title V, which was
withdrawn.
Rep. Ben Ray Lujan offered an amendment.059 to the
amendment in the nature of a substitute to require the
Secretary of the Interior to promulgate regulations that
discourage speculation in acquisition of leases for wind and
solar energy development, which was agreed to by voice vote.
Rep. Jason Chaffetz (R-UT) offered an amendment.121 to the
amendment in the nature of a substitute to strike the funding
described in section 207, Title V, and section 605, which was
not agreed to by a roll call vote of 16 yeas and 25 nays, as
follows:
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Rep. Heinrich (D-NM) offered an amendment.049 to the
amendment in the nature of a substitute to strengthen surface
owner protections and notice requirements in cases of split
estate, which was withdrawn.
Rep. Fleming (R-LA) offered an amendment.108 to the
amendment in the nature of a substitute to strike section 239,
which was not agreed to by a roll call vote of 19 yeas and 25
nays, as follows:
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Rep. Jay Inslee (D-WA) offered an en bloc amendment.136 and
.137 to the amendment in the nature of a substitute to
establish risk assessment standards for blowout preventers and
other best available technologies, which was agreed by voice
vote.
Rep. Inslee offered a further amendment.140 to the
amendment in the nature of a substitute to require the
consideration of the availability of oil spill response
infrastructure in developing a 5-year leasing plan, which was
agreed to by voice vote.
Rep. Don Young (R-AK) offered an amendment.069 to the
amendment in the nature of a substitute to allow activities
that rescue and rehabilitate marine mammals, turtles and sea
birds to compete for funding under section 605, which was
agreed to by voice vote.
Rep. Raul Grijalva (D-AZ) offered an amendment.089 to
section 503 of the amendment in the nature of a substitute to
waive rental fees for lands already adversely impacted by prior
use when leased and redeveloped for renewable energy, which was
agreed to by voice vote.
Rep. Grijalva offered a further amendment.084 to section
501 of the amendment in the nature of a substitute to require
the issuing of guidance for evaluation and approval of those
wind and solar projects on public lands which are grandfathered
under the right of way authorization process in that section,
which was withdrawn.
Rep. Grijalva offered a further amendment.090 to the
amendment in the nature of a substitute to amend sections 208
and 215 to require Environmental Impact Statements for
exploration or development plans when they involve frontier
areas or new technologies, which was withdrawn.
Rep. Chaffetz offered an amendment.004 to the amendment in
the nature of a substitute to prohibit earmarking of funds
authorized under Title IV or section 605, which was not agreed
to by a roll call vote of 20 yeas and 25 nays, as follows:
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Rep. John Sarbanes (D-MD) offered an amendment to the
amendment in the nature of a substitute to require the
promulgation of regulations to calculate royalty payments
without deductions for transportation or processing costs,
which was withdrawn.
Rep. Sarbanes offered a further amendment.042 to the
amendment in the nature of a substitute to require CEO
certification that oil spill response plans are able to respond
to a worst-case scenario, which was withdrawn.
Rep. Paul Broun (R-GA) offered an amendment.119 to the
amendment in the nature of a substitute to require free and
open access of the media to oil spill cleanup activities, which
was ruled out of order as non-germane.
Rep. Lujan offered an en bloc amendment.060 and .063 to the
amendment in the nature of a substitute to amend sections 211
and 242, which was agreed to by voice vote.
Rep. Louie Gohmert (R-TX) offered an amendment.013 to the
amendment in the nature of a substitute to prohibit Interior
Department inspectors from going on strike, which was not
agreed to by a roll call vote of 19 yeas and 26 nays, as
follows:
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Rep. Inslee offered an amendment.138 to section 501 of the
amendment in the nature of a substitute to allow all solar and
wind projects with applications submitted before July 1, 2010,
to be permitted using the existing process, which was agreed to
by voice vote.
Rep. Inslee offered a further amendment.141 to the
amendment in the nature of a substitute to create a renewable
energy development office within the Bureau of Energy and
Resource Management, and establish renewable energy permit
coordination offices, which was withdrawn.
Rep. Inslee offered a further amendment.142 to the
amendment in the nature of a substitute to add an additional
title providing for non-competitive geothermal leases when a
geothermal discovery is made adjacent to federal lands, which
was agreed to by a roll call vote of 26 yeas and 19 nays, as
follows:
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Rep. Tom McClintock (R-CA) offered an amendment.105 to the
amendment in the nature of a substitute to strike section 238,
which was not agreed to by a roll call vote of 21 yeas and 24
nays, as follows:
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Rep. Frank Pallone, Jr. (D-NJ) offered an amendment.049 to
the amendment in the nature of a substitute to institute a
moratorium on all new leasing on the OCS in the event of
another spill of greater than 5,000 barrels of oil, which was
withdrawn.
Rep. Pallone offered a further amendment.051 to the
amendment in the nature of a substitute to prohibit oil and gas
leasing in certain areas of the OCS, which was withdrawn.
Rep. Robert Wittman (R-VA) offered an en bloc amendment.047
and .109 to the amendment in the nature of a substitute to
address impacts of the Gulf oil spill on the fishing and
seafood industries, and to expedite offshore wind development
off the coast of Virginia, which was withdrawn.
Rep. Wittman offered a further amendment.106 to the
amendment in the nature of a substitute to strike section 704,
which was not agreed to by a roll call vote of 21 yeas and 26
nays, as follows:
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Rep. Inslee offered an amendment.135 to the amendment in
the nature of a substitute to delay the implementation of
competitive leasing requirements for renewable energy sources
until those sources become cost-competitive with non-
renewables, which was withdrawn.
Rep. Doug Lamborn (R-CO) offered an amendment.061 to the
amendment in the nature of a substitute to amend section 231,
which was agreed to (as modified) by voice vote.
Rep. Wittman offered an amendment.043 to the amendment in
the nature of a substitute to require an Environmental Impact
Statement and seismic study for Virginia Lease Sale 220 no
later than one year after enactment, which was not agreed to by
voice vote.
Rep. Cynthia Lummis (R-WY) offered an amendment.007 to the
amendment in the nature of a substitute to apply new ethics
requirements described in section 104 to all employees of the
Department of the Interior, which was agreed to by voice vote.
Rep. Lummis offered a further amendment.020 to the
amendment in the nature of a substitute to reallocate 40% of
the appropriations under the Land and Water Conservation Fund
for state purposes, which was withdrawn.
Rep. Lummis offered a further amendment.021 to the
amendment in the nature of a substitute to amend Title VII to
impose additional public-right-to-know requirements, which was
agreed to by voice vote.
Rep. Lummis offered a further amendment.111 to the
amendment in the nature of a substitute to strike Title II,
Subtitle B, which was not agreed to by a roll call vote of 20
yeas and 28 nays, as follows:
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Rep. Hastings offered an amendment.117 to the amendment in
the nature of a substitute to remove ``hydropower'' from the
definition of ``renewable energy resources,'' which was agreed
to by voice vote.
Rep. Hastings offered a further amendment.122 to the
amendment in the nature of a substitute to require timely
responses to state requests for activities related to oil
spills of national significance, which was agreed to (as
modified) by voice vote.
Rep. Cassidy offered an amendment.006 to section 702 of the
amendment in the nature of a substitute to provide for federal
and state revenue sharing, which was not agreed to by a roll
call vote of 18 yeas and 30 nays, as follows:
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Rep. Cassidy offered a further amendment.032 to the
amendment in the nature of a substitute to terminate the
Secretary of the Interior's July 12, 2010 moratorium of
offshore drilling activities on the OCS, and prohibit future
moratoria, which was not agreed to by a roll call vote of 22
yeas and 26 nays, as follows:
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Rep. Cassidy offered a further amendment.115 to the
amendment in the nature of a substitute to delay the effective
date of the bill's provisions until certification that they
will not have certain economic impacts, which was not agreed to
by a roll call vote of 21 yeas and 27 nays, as follows:
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The amendment in the nature of a substitute, as amended,
was then agreed to by voice vote. The bill, as amended, was
then favorably reported to the House of Representatives by a
roll call vote of 27 yeas and 21 nays, as follows:
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Section-by-Section Analysis
Sec. 1. Short title
Section 1 provides that this Act may be cited as the
``Consolidated Land, Energy, and Aquatic Resources Act of
2010.''
Sec. 2. Definitions
Section 2 provides definitions for key terms used in this
Act.
TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIES
Sec. 101. Bureau of Energy and Resource Management
Section 101 establishes within the Department of the
Interior a Bureau of Energy and Resource Management (BERM),
with a mandate to manage the leasing and permitting for
renewable energy, non-renewable energy, and mineral resources
on all onshore and offshore federal lands in the United States;
however, leasing on Indian lands would not be handled by BERM.
The BERM Director is to be appointed by the President and
subject to Senate confirmation. Subsection (d) provides
additional authority and direction to the Secretary of the
Interior (Secretary) for conducting studies and collecting data
that are necessary to fulfill the Secretary's environmental
responsibilities under the Outer Continental Shelf Lands Act; a
separate office within BERM is to be responsible for managing
the Bureau's environmental studies and analysis activities.
Under subsection (e), the Bureau of Land Management and the
U.S. Forest Service retain their authorities as the multiple-
use managers of lands under their jurisdiction. The Committee
believes this language clearly indicates that there is to be no
reduction in the authority of the Forest Service and the Bureau
of Land Management to manage the lands under their respective
jurisdictions as a result of the creation of BERM. The
Committee intends for the Forest Service and the Bureau of Land
Management to identify lands through the land use planning
process that are appropriate for energy and mineral
development, establish best management practices for energy
development on their lands, review surface land use plans and
inspect areas of operation to ensure that operations are being
conducted in compliance with those plans and best management
practices, establish and enforce financial assurance and
reclamation requirements, determine and enforce conditions for
surface occupancy, establish stipulations for leases and
authorize or reject any requested modifications to those
stipulations, and do all other necessary activities to ensure
that energy development on their managed lands is accomplished
in a manner that is protective of natural ecosystems and the
human environment. The Committee does not intend for BERM to be
able to lease any lands for energy exploration or development
over the objections of the appropriate land management agency,
and believes the language of section 101 makes this clear.
Having one agency in charge of land management and another
responsible for leasing describes the current situation on
Forest Service lands, on which the Bureau of Land Management
acts as the leasing agent. Although the Committee does not
believe that BLM's management of oil and gas leasing has been
exemplary, whether on Forest Service lands or its own, the
current system does provide a parallel that illustrates how the
Committee intends the BERM-BLM and BERM-Forest Service
interaction to function.
Sec. 102. Bureau of Safety and Environmental Enforcement
Section 102 establishes within the Department of the
Interior a Bureau of Safety and Environmental Enforcement
(BSEE), with a mandate to carry out all the safety and
environmental regulatory activities, including inspections, on
all onshore and offshore federal lands in the United States.
The BSEE Director is to be appointed by the President and
subject to Senate confirmation. Subsection (d) gives BSEE the
following responsibilities: oversight of BERM's OCS National
Environmental Policy Act (NEPA) reviews; suspension or
cancellation of leases in the event that activities under those
leases threatens health or the environment; development of
health, safety, and environmental regulations for operations on
onshore and offshore federal lands, including mandatory Safety
and Environmental Management programs; conducting
investigations; and implementing the new Offshore Technology
Research and Risk Assessment Program established under Section
211 of this Act. Subsection (e) requires that BSEE inspectors
be highly qualified and well-trained, and establishes a
National Oil and Gas Health and Safety Academy for training the
national oil and gas inspector workforce. Subsection (e) also
allows the Secretary to work with educational institutions and
the oil and gas industry to create appropriate training and
continuing education programs outside the Academy.
The Committee has for years been receiving reports about
inadequacies in the Department of the Interior's Oil and Gas
Inspection program. A June 2005 report (GAO-05-418, ``Increased
Permitting Activity Has Lessened BLM's Ability to Meet Its
Environmental Protection Responsibilities'') indicated that
increases in permit workload were preventing BLM from meeting
its environmental inspection requirements. In testimony before
the Subcommittee on Energy and Mineral Resources in March, 2008
(GAO-08-560T, ``Data Management Problems and Reliance on Self-
Reported Data for Compliance Efforts Put MMS Royalty
Collections at Risk''), GAO reported that neither BLM nor MMS
were meeting inspection targets. And a GAO report issued in
March, 2010 (GAO-10-313, ``Oil and Gas Management: Interior's
Oil and Gas Production Verification Efforts Do Not Provide
Reasonable Assurance of Accurate Measurement of Production
Volume'') detailed difficulties that the Department of the
Interior faces ``in hiring, retaining, and training staff in
key oil and gas oversight positions'', as well as problems with
inconsistent inspection policies between BLM and MMS.
The Committee believes that combining the onshore and
offshore inspection forces and establishing an academy to train
both will be a major step towards addressing many of these
problems. The Academy will ensure that new inspectors are fully
trained and that experienced inspectors are kept up-to-date
with the latest technologies and procedures; it will also
ensure that onshore and offshore inspections are conducted
using standardized procedures. The Committee believes that a
combined inspection force would allow for greater
specialization of inspectors, and could also result in
decreased turnover by providing additional opportunities for
inspectors to transfer between work locations.
Sec. 103. Office of Natural Resources Revenue
Section 103 establishes within the Department of the
Interior an Office of Natural Resources Revenue (ONRR), which
would be responsible for collecting and disbursing all
royalties and other revenues from energy and mineral related
activities on onshore and offshore federal lands, auditing such
collections, and promulgating regulations relevant to revenue
collection and management. Subsection (d) creates an
independent program within ONRR to carry out auditing and
oversight of revenue collection. The ONRR is to be headed by a
Director appointed by the President and subject to Senate
confirmation.
Sec. 104. Ethics
Section 104 requires that the Secretary of the Interior
certify that all Department of the Interior employees that
interact with oil and gas companies are in full compliance with
all federal employee ethics laws and regulations, as well as
supplemental guidance that would be issued by the Secretary.
Sec. 105. References
Section 105 provides that all references to functions that
previously existed in the Minerals Management Service or in the
Bureau of Land Management energy program are transferred to the
appropriate new entities created in this Act.
Sec. 106. Abolishment of Minerals Management Service
Section 106 formally abolishes the Minerals Management
Service (MMS), and ensures that all completed administrative
proceedings, pending administrative proceedings, and pending
civil actions related to MMS are not affected by this
abolishment.
Sec. 107. Conforming amendment
Section 107 adds the titles of the heads of the new
agencies to the appropriate pay scale section of the U.S. Code.
Sec. 108. Outer Continental Shelf safety and environmental advisory
board
Section 108 creates a new safety and advisory board under
the Federal Advisory Committee Act. This board would be
composed of a balance of industry and non-industry members, and
tasked with providing to the Secretary advice on safety and
environmental issues surrounding energy and mineral development
issues on the Outer Continental Shelf.
TITLE II--FEDERAL OIL AND GAS DEVELOPMENT
Subtitle A--Safety, Environmental, and Financial Reform of the Outer
Continental Shelf Lands Act
Sec. 201. Short title
Section 201 provides that this subtitle may be cited as the
``Outer Continental Shelf Lands Act Amendments of 2010.''
Sec. 202. Definitions
Section 202 amends the Outer Continental Shelf Lands Act
(OCSLA) to add a definition for ``safety case''. A safety case
is defined as a body of evidence that provides a basis for
determining whether a system is adequately safe for a given
application in a given operating environment, and requirements
for its use in offshore drilling operations have been adopted
by a number of countries around the world, including Norway and
the United Kingdom.
Sec. 203. National policy for the Outer Continental Shelf
Section 203 amends Section 3 of the OCSLA to require a more
balanced approach to energy development that acknowledges the
other resources of the OCS, and to emphasize that energy-
related activities should be conducted in a matter that
minimizes impacts to the marine, coastal, and human
environments.
Sec. 204. Jurisdiction of laws on the Outer Continental Shelf
Section 204 amends Section 4 of the OCSLA to ensure that
the laws of the United States also apply to renewable energy
facilities on the OCS. Currently, the language of Section
4(a)(1) of the OCSLA could be interpreted to extend the laws of
the United States only to offshore installations that are
installed for the purpose of oil, natural gas, or other mineral
exploration, development, and production. This is due to the
specific way that the terms ``exploration'', ``development'',
and ``production'' are defined in the OCSLA to refer to
minerals.
Legislative history makes it amply clear that previous
Congresses intended the language of Section 4 to apply broadly.
The conference report for the OCSLA Amendments of 1978 changed
the language of Section 4 from ``fixed structures'' to ``all
installations and other devices permanently or temporarily
attached to the seabed'' in order to clarify what the conferees
stated was the original intent of the OCSLA: that ``Federal law
is to be applicable to all activities on all devices in contact
with the seabed for exploration, development, and production.''
The Committee believes that the operative part of that phrase
is, ``to all activities on all devices in contact with the
seabed,'' and that federal law should apply to renewable energy
facilities, such as windmills or hydrokinetic devices, which
are attached to the seabed. However, because neither Section 4
nor the definitions of ``exploration'', ``development'', and
``production'' were amended in 2005 to reflect the concurrent
expansion of the OCSLA to cover renewable energy development,
the current text of Section 4 can be read to imply that federal
laws do not apply to non-mineral facilities that are attached
to the seabed. The Committee rejects this implication, and the
amendments to Section 4 are designed to ensure that federal law
applies to renewable energy facilities sited on the Outer
Continental Shelf.
Sec. 205. Outer Continental Shelf Leasing Standard
Section 205 amends Section 5 of the OCSLA to clarify the
authority of the Secretary to issue regulations related to
operational safety and environmental protection on the OCS, and
would require the Secretary to issue regulations mandating:
independent third-party certification of crucial pieces of
safety equipment (such as blowout preventers); new requirements
for subsea testing and secondary activation of blowout
preventers; independent third-party certification of the well
casing and cementing procedures; adoption of safety and
environmental management systems by operators on the OCS; and
compliance with other environmental and natural resource
conservation laws. The Secretary would also be required to
consult with the Secretary of Commerce on any regulation that
may affect the marine or coastal environment. This section
would also require that the Secretary provide to the public,
free of charge, any documents incorporated by reference into
any OCS-related regulations.
Sec. 206. Leases, easements, and rights-of-way
Section 206 amends Section 8 of the OCSLA by adding three
new subsections related to royalties and financial assurances.
New subsection 8(q) requires the Secretary to conduct a bonding
study at least once every five years to determine if financial
assurance levels are adequate for operations on the OCS. New
subsection 8(r) requires the Secretary to conduct a fiscal
system review at least once every three years that would
outline in-place royalty and rental rates and indicate whether
the Secretary intended to modify those rates. New subsection
8(s) requires the Secretary to conduct a comparative fiscal
review at least once every five years, to assess the overall
oil and gas fiscal system of the United States and compare it
to systems in place in other countries.
Subsection (b) of Section 206 forbids companies from
obtaining new leases or permits to drill unless the Secretary
can certify that the company is meeting safety and
environmental requirements on its existing leases, does not
have outstanding obligations under the Oil Pollution Act of
1990, and over the preceding seven years: has not had an
excessive rate of violations of the Occupational Health and
Safety Act; has not been convicted of a criminal violation for
a fatality or serious bodily injury in connection with oil-
related activities; did not have more than 10 fatalities as a
result of violating health, safety, or environmental laws; and
was not assessed over $10 million in fines under the Clean
Water Act or the Clean Air Act.
Subsection (c) amends the alternative energy leasing
subsection of OCSLA (43 U.S.C. 1337(p)) to delete ambiguous
language that could be interpreted to allow non-energy
development under the Secretary's offshore alternative energy
leasing authority. The section also provides for non-
competitive authorizations if an applicant were seeking to
carry out short-term meteorological or marine testing.
The Committee believes that deletion of the reference to
``other applicable law'' in Section 8(p) of the OSCLA helps to
clarify that the intent of Congress in originally enacting
Section 8(p) was that the Department of the Interior would have
exclusive jurisdiction with regard to the production,
transportation, or transmission of energy from non-hydrokinetic
(such as wind or solar) and hydrokinetic (such as tidal, wave,
or current) renewable energy projects on the Outer Continental
Shelf. However, including the phrase ``other applicable law''
created some confusion as to which laws were, in fact,
applicable on the OCS, leading to a situation where the process
for siting and licensing non-hydrokinetic projects and
hydrokinetic projects is different. This creates the potential
for considerable amounts of confusion in the future,
particularly if hybrid projects that combine non-hydrokinetic
and hydrokinetic technologies are proposed.
The Committee further believes that the language of
Presidential Proclamation Number 5928, issued on December 27,
1988, which extended the territorial sea of the United States
to 12 nautical miles from the baseline, is unambiguous when it
states that, ``[n]othing in this Proclamation . . . extends or
otherwise alters existing Federal or State law or any
jurisdiction, rights, legal interest, or obligations derived
therefrom . . .''. Such language makes it clear that the
jurisdiction of laws in existence prior to the Proclamation
were not extended outwards beyond the prior 3-mile territorial
sea. As such, the Federal Power Act does not apply on the Outer
Continental Shelf. Although the Committee believes that
removing ``other applicable law'' is unnecessary, as the
Federal Power Act is not an applicable law on the OCS, the
Committee also believes that this small change makes the
original Congressional intent clear.
Subsection (d) requires the Secretary to request a review
by the Secretary of Commerce of any proposed lease sale.
Subsection (e) eliminates the authority of the Secretary to
lease a tract greater than 5,760 acres. Subsection (g)
prohibits the issuance of leases if the Secretary determines
that such leases would likely result in harm to life, property,
or the marine, coastal, or human environments.
Sec. 207. Disposition of revenues
Section 207 amends Section 9 of the OCSLA to provide for
yearly mandatory funding of $900 million for the Land and Water
Conservation Fund, $150 million for the Historic Preservation
Fund, and 10% of total offshore revenues for a new Ocean
Resources Conservation and Assistance (ORCA) Fund, as created
by Section 605 of this Act.
Sec. 208. Exploration plans
Section 208 amends Section 11 of the OCSLA to strengthen
and create new requirements for exploration plans and eliminate
the 30-day deadline for approval of those plans. Exploration
plans would be required to include blowout scenarios with
estimated timelines for drilling a potential relief well, and
an analysis of the impact of a worst-case-scenario discharge
from drilling. Categorical exclusions would no longer be
allowed for approving plans, and plans and permits could only
be approved if the applicant will be using best-available
technology for drilling the well and responding to spills, and
has demonstrated capability and technology to respond
immediately to a worst-case-scenario oil spill.
The Committee intends for worst-case-scenarios to be far
more realistic and robust than they have been in the past. As
illustrated by the Deepwater Horizon incident, simply stating
that a potential worst-case blowout could lead to several
hundred thousand barrels of oil per day being released for 30
days may not remotely address the actual complexity of a real-
world incident. A failure of imagination leading up to the
Deepwater Horizon explosion resulted in a number of response
strategies that were developed on-the-fly which were inadequate
to deal with the reality of the situation. The Committee
believes that it is incumbent upon all offshore operators to
truly prepare for the worst potential scenario prior to
drilling a well, and that any plan to deal with such a scenario
should factor in: the maximum potential time that a blowout
could continue; the water depth of the well site and the
ability of response equipment to operate at that depth; the
potential for inclement weather, such as hurricanes, to
complicate response activities; potential instability of the
seafloor at the well site; methane hydrate formation;
contingency planning for the failure of early attempts to stop
the blowout; the possibility of debris around the well site
preventing access to the well or to well control equipment; and
any other eventuality that could complicate efforts to stop the
blowout and recover the released oil. The Department should
provide guidance in this process to ensure that such scenarios
are truly worst-case, and pursuant to provisions in this
section and in other parts of this bill, require that the
operator's oil spill response plan is adequate to prevent
excessive damage to the marine, coastal, and human environments
in the event these scenarios come to pass.
Subsection (d) mandates a full engineering review of the
well design and the existence of a safety and environmental
management plan before a drilling permit can be issued. New
subsection 11(j) provides additional authority for the
disapproval of a plan if the exploration activities would
probably cause damage to the marine, coastal, or human
environments.
Sec. 209. Outer Continental Shelf Leasing program
Section 209 amends Section 18 of the OCSLA to provide for
additional consideration of environmental factors in the
preparation of 5-year leasing plans. This section also requires
consultation with the Secretary of Commerce during the
preparation of those plans. In addition, a new subsection 18(i)
is added, which establishes a research and development program
designed to improve the ability to estimate oil and gas
resources and address gaps in environmental data on the OCS.
Sec. 210. Environmental studies
Section 210 amends Section 20 of the OCSLA to require
environmental studies, in cooperation with the Secretary of
Commerce, at least once every three years of OCS areas where
oil and gas lease sales are scheduled. Subsection (b) directs
the Secretary to conduct research on the impacts of deepwater
oil spills and the use of dispersants.
Sec. 211. Safety regulations
Section 211 amends Section 21 of the OCSLA to require more
frequent studies by the Secretaries of Interior and Homeland
Security on the adequacy of health and safety regulations
relevant to operations on the OCS. This section also broadens
the requirement to use best available and safest technologies,
and requires the Secretary to publish lists of the best
available technologies for key areas of well design and
operation, including blowout preventers and oil spill response
technologies.
New subsection 21(g) mandates regulations requiring all
operators to have safety cases before they can receive new
permits to drill, and mandates reviews of the effectiveness of
safety case regulations. The Committee believes that the
regulations promulgated by the Secretary under this subsection
should require that safety cases, at a minimum: provide
assurance of compliance with all applicable legal and
regulatory requirements; document the commitment of the
operator to be prudent in protecting safety, health, and the
environment and to maintain a proactive culture dedicated to
protecting safety, health, and the environment; document the
operator's competency to protect safety, health, and the
environment; document the operator's analysis of any risk to
safety, health, and the environment and procedures and systems
to minimize such risks for each phase of an operation;
incorporate international industry best practices, and be
periodically improved as necessary to maintain such practices;
provide for the active and continuous monitoring of the
operation for potential risks to safety, health, and the
environment; be updated as necessary to account for changes in
the operation, equipment, staffing levels, staffing
competencies, or other factors that may change overall risk;
demonstrate that the workforce meaningfully participates in the
development, revision, and review of the safety case;
demonstrate that the workforce is trained to be knowledgeable
about the risks and procedures to minimize such risks of each
distinct work task, and that their training is updated as
needed and the training efficacy is ascertained; and
demonstrate that emergency plans and arrangements are in place
to provide effective response to all reasonably foreseeable
emergencies. The Committee also encourages the Secretary to
include in such regulations provisions that would make
submitted safety cases available to the public for a comment
period prior to final approval, provided that proprietary
information is protected; and provisions that require reporting
to the Secretary of any incident or change in conditions that
was not foreseen in, and that affects the basis for, the safety
case.
New subsection 21(h) creates an Offshore Technology
Research and Risk Assessment Program designed to research and
assess industry trends, new drilling technologies, and oil
spill response technologies, among other topics.
Sec. 212. Enforcement of safety and environmental regulations
Section 212 amends Section 22 of the OCSLA to require
monthly inspections of drilling rigs, more frequent
investigations of safety-related incidents on the OCS,
investigations of all allegations brought by employees of
operators or contractors, and certifications from operators,
operators' Chief Executive Officers, and independent third
parties regarding compliance with safety and other regulations.
Audits of safety cases and safety and environmental management
plans are further authorized.
Sec. 213. Judicial review
Section 213 extends the timeframe for filing petitions
against Secretarial actions pursuant to the OCSLA.
Sec. 214. Remedies and penalties
Section 214 amends Section 24 of the OCSLA to increase
civil penalties from $20,000 per day to $75,000 or $150,000 per
day, depending on the violation. Subsection (b) raises the
maximum criminal fine under the Act from $100,000 to
$10,000,000.
Sec. 215. Uniform planning for Outer Continental Shelf
Section 215 amends Section 25 of the OCSLA to strengthen
and create new requirements for development and production
plans, and to ensure that such requirements extend to all areas
of the OCS (whereas in existing law the Gulf of Mexico is
exempt). As with exploration plans, this section requires
development and production plans to include blowout scenarios
with estimated timelines for drilling a potential relief well,
and an analysis of the impact of a worst-case-scenario
discharge from drilling. Approval of plans through categorical
exclusions is no longer allowed. This section also requires
applicants to provide a comprehensive survey of the marine and
coastal environment within their proposed area of operations,
and to use production platforms as observation stations for
collecting data for the Integrated Coastal and Ocean Observing
System. This section further provides that development and
production plans shall not be approved unless the applicant has
the demonstrated ability to effectively remediate a worst-case
release of oil from activities conducted under the plan.
Sec. 216. Oil and gas information program
Section 216 amends Section 26 of the OCSLA to require
lessees to provide additional data on drilling operations to
the Secretary, and to provide such in electronic format in
real-time, or as quickly as possible if real-time is not
feasible. This section also deletes provisions requiring the
government to pay for data reproduction costs.
Sec. 217. Limitation on Royalty-in-Kind program
Section 217 amends Section 27 of the OCSLA to eliminate the
authority for the Secretary of the Interior to conduct a
regular royalty-in-kind (RIK) program for offshore leases. The
Committee has been concerned for years about the aggressive
expansion of the RIK program during the Bush Administration.
The Committee has long viewed the marketing of oil and natural
gas as an inherently private sector function, and multiple GAO
reports have found that the financial benefits of the RIK
program are uncertain at best. The Committee's worst fears were
realized with the release of the DOI Inspector General's report
in September 2008, which detailed serious ethical problems in
the RIK office. The Committee, in one sense, agrees with the
RIK marketers who argued that socializing with the industry was
a necessary part of being an effective marketer, because it
highlights the fact that this is a business the government
should not be directly involved in. While the Committee
strongly approves of the current Administration's decision to
end the RIK program--a decision that was announced during a
Committee hearing in September 2009--there is still the concern
that future administrations could attempt to revive this deeply
flawed program. Section 217 eliminates that possibility,
although the intent of the language is not to completely
eliminate the authority of the Secretary to take royalties in
kind when necessary. The Committee simply wishes to ensure that
such authority is exercised sparingly, if at all.
Sec. 218. Restrictions on employment
Section 218 strengthens ``revolving door'' prohibitions on
employees of the Department of the Interior who carry out
duties under the OCSLA, by broadening the scope of prohibited
activities and adding a 2-year ban on accepting employment with
certain companies. This section further adds new recusal
requirements and provides stricter penalties for violations.
Sec. 219. Repeal of royalty relief provisions
Section 219 repeals the shallow-water-deep-gas, deep-water,
and Alaskan OCS royalty relief provisions that were enacted in
the Energy Policy Act of 2005 (EPAct) (P.L. 109-58).
Sec. 220. Manning and buy- and build-american requirements
Section 220 amends Section 30 of the OCSLA to clarify that
U.S. immigration laws apply to facilities on the OCS, and add
an ``intention of Congress'' section stating that energy
development activities on the OCS should be conducted in a way
so as to support domestic industry and jobs.
Sec. 221. National Commission on Outer Continental Shelf Oil spill
prevention
This section establishes a 10-member bipartisan Commission
in the legislative branch to investigate the Deepwater Horizon
incident, and to make recommendations on how to prevent similar
incidents in the future.
Subtitle B--Safety, Environmental, and Financial Reform of the Federal
Onshore Oil and Gas Leasing Program
Sec. 231. Diligent development
Section 231 requires the Secretary of the Interior to
promulgate new regulations that would define ``diligent
development,'' to ensure that the public can be confident that
federal oil and gas leases are being diligently developed and
not held for speculative purposes. This section provides that
such rules shall require all new onshore and offshore oil and
gas leases to meet certain benchmarks during the primary term
of a lease in order to show that energy development is being
responsibly pursued. The regulations shall provide for
extension of those benchmarks in situations where diligent
development is not possible due to environmental or other
restrictions beyond a lessee's control. As amended, this
section assures suspension of lease terms during the periods
when protests to leases or permits to drill are being resolved.
The Committee has received numerous reports and extensive
testimony underscoring the need to improve diligent development
requirements. Both the Inspector General of the Department of
the Interior and the Government Accountability Office have
recommended in testimony before the Committee on Natural
Resources and the Subcommittee on Energy and Minerals that the
Interior Department develop a strategy to encourage faster and
diligent development of oil and gas leases on federal lands
(March 17, 2009, September 16, 2009).
A February 2009 report by the Office of the Inspector
General of the Department of the Interior (``Oil and Gas
Production on Federal Leases: No Simple Answer,'' C-EV-MOA-
0009-2008) determined that ``the Department [of the Interior]
has done little to provide specific guidance to lessees on the
`due diligence' production requirements.'' The Government
Accountability Office (GAO) similarly concluded in 2008 that
neither MMS or BLM has precisely defined the activities or time
frames that constitute reasonable diligence in the development
and production of oil and gas on federal leases (GAO-09-74;
``Oil and Gas Leasing: Interior Could Do More to Encourage
Diligent Development''). GAO's review of data on 55,000
offshore and onshore federal leases issued from 1987 through
1996--those that have exceed their primary 10 year lease term--
found that development occurred only on about 26% of offshore
and 6% of onshore leases.
Sec. 232. Reporting requirements
Section 232 requires lessees to report twice a year on the
steps that are being taken to develop each of their non-
producing leases. This information will be put into an
electronic searchable database available to the public.
Currently, according to the Department of the Interior's
Inspector General (OIG Evaluation C-EV-MOA-0009-2008, ``Oil and
Gas Production on Federal Leases: No Simple Answer,'' February
2009) the Department does not know exactly what is occurring on
non-producing leases.
Sec. 233. Notice requirements
Section 233 requires the Secretary of the Interior to
notify surface land owners and holders of commercial use
permits (such as outdoor recreation companies and hosts of
annual events on public lands) when oil and gas leases are
offered on lands which would affect their property or permits--
in addition to the general public as currently required under
the Mineral Leasing Act.
Approximately 58 million acres of federal minerals underlie
privately-owned surface in the United States, and there are
roughly 3,500 holders of commercial, competitive use, and
special event permits, according to BLM's ``Public Land
Statistics 2010.'' In 2006, pursuant to Section 1835 of the
Energy Policy Act of 2005, BLM reviewed the effects of federal
subsurface oil and gas policies on surface owners. This ``Split
Estate Report to Congress'' acknowledged ``a need to further
inform surface owners and operators of their rights and
responsibilities regarding Federal leasing and oil and gas
operations on split estate lands'' as well as noting the desire
of surface owners to be notified at key points in the land use
planning process. In response, BLM issued IM No. 2007-165 which
directed State and Field Offices to ``increase outreach to
media and surface owner groups in land use planning processes,
to increase media notification to inform public of the
availability of leasing information when there is a lease sale
planned, and to do more public outreach after the lease sale.''
However, there is still a need for specific statutory
requirements regarding notice to split estate surface owners--
for example, notice prior to leasing.
The Committee expects that this section will address this
issue, but notes that notice is only part of the problem facing
some surface owners in split estate situations. The Committee
urges the Secretary to develop additional protections for
private property owners who do not own the oil and gas below
their land, including strengthened rights and abilities to
negotiate surface use agreements with operators, reclamation
requirements, and assurances of compensation for damages.
Sec. 234. Oil and gas leasing system
Section 234 amends Section 17 of the Mineral Leasing Act
(30 U.S.C. 181 et seq.) to assure receipt of fair market value
for lands leased for oil and gas, including requirements for
sealed bids rather than oral auctions of leases, elimination of
non-competitive leasing, and issuance of leases to bidders
whose bid is equal to or higher than a national minimum
acceptable bid, based on evaluation of the value of the lands
proposed for lease.
The Committee notes that Section 234 will make the onshore
process of offering leases for bid similar to the proven
offshore process, to provide a more fair return to the
government. For offshore leases, companies submit written
sealed bids to the Minerals Management Service's Office of
Energy and Minerals Management (OEEM), and the OEEM compares
those bids to its own independent assessment of the value of
the potential oil and gas in each lease; the bidder that
submits the highest bonus bid that exceeds MMS' estimate of
fair market value of a lease is awarded the lease. Currently,
BLM relies exclusively on competitors, participating in an oral
auction, to determine the leases' market value. If few bidders
are present, there is potential for the bidding process to
undervalue the lease. In 2009 testimony, the GAO noted that MMS
has found that, since 1995, the offshore process of rejecting
low bids and reoffering those leases at a later sale has
resulted in an overall increase in bonus receipts of $373
million between 1997 and 2006 (GAO-09-1014T). Furthermore,
unlike BLM, MMS does not offer noncompetitively those leases
that receive no bids, while BLM issued about 10% of oil and gas
leases noncompetitively in FY 2009. This section also gives
Secretary 90 days to issue the lease rather than 60 as
currently required by the Mineral Leasing Act, to allow
additional time for the agency to review the bids for adequacy
against fair market valuation of the lease, as this section
would require. While BLM does not currently have the expertise
that MMS does to appropriately value lease tracts based on
geologic factors, this Act's creation of a single entity, the
BERM, to handle onshore and offshore leasing will provide
access to that expertise for valuing onshore lease tracts.
Section 234 also directs the Secretary to hold a minimum of
three lease sales per state per year, rather than the current
requirement of four. This change will allow additional time for
agency review of parcels proposed for lease sales, consistent
with the conclusions of the report to Secretary Salazar by
Deputy Secretary of the Interior David Hayes (``Final BLM
Review of 77 Oil and Gas Lease Parcels Offered in BLM-Utah's
December 2008 Lease Sale,'' October 2009). The Committee
concurs with that report's determination that leasing decisions
would benefit from better coordination at the federal and state
level and the use of interdisciplinary teams for all proposed
lease sales to reduce conflicts, errors, and protests. The
Committee also believes that the scaled-back minimum lease sale
requirement will also allow field offices more time to balance
leasing with their non-leasing work; see, for example, ``Oil
and Gas Development: Increased Permitting Activity Has Lessened
BLM's Ability to Meet Its Environmental Protection
Responsibilities,'' GAO-05-418, June 2005.
Section 234 further raises the national minimum acceptable
bid from $2 per acre to $2.50 per acre and raises rentals from
the current structure of $1.50/acre for the first five years
and $2/acre for the remaining years to $2.50/acre for the first
five years and $3/acre for the remaining years on future
leases. Such rates have been unchanged for over 20 years. The
Secretary is given explicit authority to increase rental rates
if necessary to enhance financial returns to the United States
and to promote more efficient management of oil and gas
resources on federal lands. Recent reports by the IG and the
GAO emphasize that increased rental rates can encourage
diligent development and a fair return to taxpayer. See, for
example, ``Oil and Gas Royalties: The Federal System for
Collecting Oil and Gas Revenues Needs Comprehensive
Reassessment,'' GAO-08-691, September 3, 2008.
Sec. 235. Electronic reporting
Section 235 authorizes the Secretary to inform
Congressional committees of large pipeline right-of-way
applications and proposed lease reinstatements electronically
instead of through a paper copy, if the committee requests,
saving the federal government paper and postage costs.
Sec. 236. Best management practices
Section 236 requires oil and gas operators on federal lands
to adhere to best management practices (BMPs), with site-
specific adjustments allowed to account for special
circumstances. The Committee believes that, with appropriate
flexibility, adherence to a required set of common-sense BMPs
can result in reduced permit processing times, reduced numbers
of conditions of approval for permits, reclamation cost savings
for industry, and environmental benefits.
Sec. 237. Surface disturbance, reclamation
Section 237 amends Section 18 of the Mineral Leasing Act to
require the submission of interim and final reclamation plans
along with each application for a permit to drill. Lessees who
have not completed reclamation activities on existing leases no
longer in production will be unable to obtain new leases.
The Committee believes that this section fills the need for
a clear statutory requirement for both interim and final
reclamation plans before approval of a permit to drill to
minimize permanent impacts on ecosystems and wildlife and
encourage prompt restoration. Under current practice, BLM
generally does not require interim reclamation in all permits
it issues. Yet, typically interim reclamation can be started as
soon as a well is drilled. For example, the size of the pad can
be reduced to a few acres necessary to service the well, some
roads can be removed, and drill fluids pit reclaimed. According
to BLM, interim reclamation can reduce costs and increase
effectiveness of final reclamation.
Section 237 also requires the Secretary to require
financial assurances adequate to ensure complete and timely
reclamation of the lease tract and restoration of land and
waters adversely affected by the lease can be undertaken if
necessary. A March 2010 report by the Government Accountability
Office (GAO-10-245, ``Oil and Gas Bonds: Bonding Requirements
and BLM Expenditures to Reclaim Orphaned Wells'') found that
the current reclamation and bond requirements have saddled
taxpayers with $3.8 million in cleanup costs between 1988 and
2009 for abandoned oil and gas wells, with at least 144
additional sites still to be evaluated and addressed. Federal
minimum required bond amounts were last established five
decades ago, and are not based on the expected reclamation
costs for a site. Instead, an operator can post a minimum bond
of $10,000 for an individual lease, $25,000 to cover all the
operator's leases in a state, or $150,000 to cover all leases
nationwide. In contrast, federal bonding requirements for the
extraction of other resources, such as coal, gold, silver, and
copper, require operators to post bonds that cover the full
estimated cost of reclamation.
Sec. 238. Wildlife sustainability
Section 238 directs the Secretaries of the Interior and
Agriculture to utilize the best available science to plan for
and manage areas under their respective jurisdictions in order
to maintain sustainable populations of native and desirable
non-native species of plants and animals, consistent with the
requirements of existing law. The Committee intends that this
section provide an unambiguous directive and clear standards to
both the BLM and the Forest Service that clarifies their role
as wildlife stewards, in addition to other existing resource
management responsibilities. The Committee believes this will
facilitate greater landscape coordination in the management of
wildlife populations among federal agencies and between the
federal government, states, and other landowners.
This section further provides that if conditions beyond
each Secretary's control prevent sustainability, the Secretary
concerned is required to protect the survival of the species
and certify that management activities do not increase the
likelihood of extirpation. The Secretaries would be required to
establish monitoring programs using identified focal species to
evaluate sustainability. Finally, this section requires
extensive cooperation between federal and state governments and
recognizes the vital role played by states in wildlife
management.
Sec. 239. Online availability to the public of information relating to
oil and gas chemical use
Section 239 requires the list of chemicals (as well as
information about those chemicals) used in drilling or
completing a well under any Federal Mineral Leasing Law to be
posted online within 30 days after completion of drilling the
well. Proprietary information is specifically exempted from
disclosure. The Committee is not persuaded by arguments that
state requirements for disclosure will adequately address the
need for public disclosure of chemicals used in drilling on
federal lands; only five states currently require disclosure of
chemicals used in drilling and completing wells. Furthermore,
the Committee believes that disclosure offers a means to
demystify industry practices and reduce suspicion of the
natural gas industry.
Sec. 240. Limitation on royalty-in-kind program
Section 240 eliminates the authority of the Secretary to
establish a regular program of taking royalties in kind from
onshore leases. The rationale for this section is the same as
that for Section 217, described above.
Sec. 241. Environmental review
Section 241 repeals Section 390 of the Energy Policy Act of
2005 (EPAct) (P.L. 109-58; 42 U.S.C. 15942), which established
five statutory categorical exclusions for onshore oil and gas
operations. Section 390 has allowed BLM and industry to bypass
environmental reviews for thousands of oil and gas drilling
permits across the West.
Section 390 of EPAct allows BLM to use categorical
exclusions under the National Environmental Policy Act of 1969
for individual sites that involve surface disturbance of less
than five acres; for a well at a location on which drilling has
previously occurred within 5 years; for a well within a
developed field that has an approved land use plan ``or any
environmental document prepared pursuant to NEPA'' within the
preceding 5 years; for a new pipeline in an approved right-of-
way corridor as long as the approval occurred within five years
of construction of the pipeline; and for maintenance of a minor
activity.
Since 2007, the Committee has heard criticism and calls for
repeal of Section 390. In a resolution approved Feb. 27, 2007,
the Western Governors' Association called on Congress to remove
the categorical exclusion language for exploration or
development of oil and gas in wildlife corridors and crucial
wildlife habitat on federal land. Governor Dave Freudenthal and
sportsmen and conservationists in Wyoming warned that Section
390 categorical exclusions do not adequately protect big game
habitat and migration corridors, particularly in southwest
Wyoming. Witnesses at full Committee and Subcommittee hearings
in the 110th Congress (April 17, 2007, April 26, 2007)
recommended repeal of Section 390 of EPACT 2005, asserting that
without the blanket exemption for oil and gas activities on
federal lands, BLM would be able to consider applications for
``categorical exclusions'' from NEPA review, but all such
applications would be subject to the ``extraordinary
circumstances'' criteria of the Department of the Interior's
NEPA rules. In other words, repeal of the provision would allow
the BLM some discretion in applying a categorical exclusion to
NEPA for oil and gas activities.
In 2009, a report by the Government Accountability Office
confirmed concerns that BLM's use of the Section 390
categorical exclusions was frequently out of compliance, both
with the law and with the agency's own guidelines. The study
showed that categorical exclusions were used from 2006-2008 to
approve approximately 6,100 of the 22,000 applications for
drilling permits, or about a quarter of permits (``Energy
Policy Act of 2005: Greater Clarity Needed to Address Concerns
with Categorical Exclusions for Oil and Gas Development Under
Section 390 of the Act,'' GAO-09-872, September 2009). Among
those, the GAO review found numerous examples--in 85% of BLM
field offices--where officials did not correctly follow the
agency's guidelines, most often by failing to adequately
justify the use of categorical exclusions. While some of the
violations and noncompliance were acknowledged as technical in
nature, the GAO found that ``others are more significant and
may have thwarted NEPA's twin aims of ensuring that BLM and the
public are fully informed of the environmental consequences of
BLM's actions.''
Although the Committee appreciates that categorical
exclusions can offer efficiency gains, sometimes allowing
faster permit processing, the Committee believes the record is
clear that faster has not necessarily proven better in the case
of special categorical exclusions. In 2010 the Department of
the Interior under the leadership of Secretary Salazar reversed
the way in which the agency applies Section 390, committing to
no longer using categorical exclusions in cases involving
``extraordinary circumstances;'' however, the Committee
believes it is not appropriate to leave Section 390 open to
reinterpretation by future administrations in light of the long
record of the provision's failings.
Sec. 242. Federal lands uranium leasing
Section 242 amends the Mineral Leasing Act to make uranium
a leasable mineral, subject to rental and royalty rates.
Currently, uranium is a ``locatable'' mineral under the 1872
Mining Law; therefore, no royalties or other production fees
are collected by the federal government. Two years are allowed
to convert claims to leases, and revenues are dedicated to
abandoned uranium mine cleanup and claims filed under the
Radiation Exposure Compensation Program (42 U.S.C. Sec. 2210).
The Committee believes that moving uranium to a leasing
system will increase predictability as to where and when
development occurs; past and current controversies about
uranium mining around national treasures like the Grand Canyon
underscore how ill-suited the 1872 Mining Law is to govern
uranium development, given the lack of explicit authority of a
land manager to disapprove a proposed hardrock mine on federal
lands that threatens devastating harm to natural or cultural
resources.
The Committee notes that all other energy minerals or
fuels--coal, oil and gas, tar sands, oil shale, and geothermal
resources--are governed by leasing systems, most dating back to
1920. The Committee also notes the Department of Energy already
administers a productive leasing system for uranium on 25,000
acres of federal lands in Colorado, pursuant to the Atomic
Energy Act of 1954. This program was originally established
specifically to ensure adequate supplies of uranium to meet the
nation's defense needs. On the 31 leases in the DOE's Uranium
Leasing Program (ULP), companies pay royalties ranging from
7.57% to 36.2%.
The Committee is not convinced by unsubstantiated industry
claims that requiring the leasing of uranium will end uranium
mining in the United States or jeopardize the nation's access
to uranium. Uranium prices rebounded from lows of around $10 a
pound in the 1980s to more than $100 per pound in 2008, and as
of July 2010 about $41 a pound. Market projections are for
growing demand for uranium worldwide to supply nuclear power
plants--with accordant growth in prices, in turn stimulating
uranium exploration and development. In just the past few
years, significant increases in the uranium market price and
demand have resulted in renewed interest in reopening mines in
the U.S. that were closed or on standby. Meanwhile, the
government faces an unfunded multi-billion dollar uranium mine
and tailings cleanup problem on western lands, while giving
away uranium on public land without royalty payment to the
government.
Subtitle C--Royalty Relief for American Consumers
Sec. 251. Short title
Section 251 provides that this subtitle may be cited as the
``Royalty Relief for American Consumers Act of 2010.''
Sec. 252. Eligibility for new leases and the transfer of leases
Section 252 prohibits the issuance of new leases to any
entity that holds a lease issued between January 1, 1996, and
December 31, 2000, unless those leases are renegotiated such
that royalties will be owed on them if the price of oil and
natural gas is above a certain level.
Sec. 253. Price thresholds for royalty suspension provisions
Section 253 requires the Secretary of the Interior to agree
to amend any lease issued in 1996 through 2000 to ensure that
royalties are paid on these leases if the price of oil and
natural gas rises above a certain level. The section also
establishes that existing lease terms, without price
thresholds, would be effective through September 30, 2010.
TITLE III--OIL AND GAS ROYALTY REFORM
Sec. 301. Amendments to definitions
Section 301 adds additional detail to the definition of
``mineral leasing law'' in the Federal Oil and Gas Royalty
Management Act of 1982, as amended (FOGRMA) (30 U.S.C. 1701 et
seq.); clarifies the definition of ``designee'' under FOGRMA in
order to allow the Secretary to correspond with a designee
only, as opposed to having to contact each individual lessee
(that has designated a designee) in writing as is required
under current law; allows penalties to be assessed for permit
violations as opposed to merely for lease violations as is the
case in existing law; includes a definition of ``compliance
review'' (increasingly used reviews of royalty payments that
are less intensive than audits) in FOGRMA; and modifies a
definition of ``marketing affiliate'' that existed in
regulation by no longer requiring that the affiliate's sole
function be the marketing of the lessee's production.
Sec. 302. Compliance reviews
Section 302 provides statutory authority for the Secretary
to conduct compliance reviews of royalty payments, and requires
any uncovered discrepancies to be referred to an auditor. The
Secretary would have to provide notice to payors that a
compliance review was being conducted.
Sec. 303. Clarification of liability for royalty payments
Section 303 clarifies that designees are liable for royalty
payments under a lease, and that lease owners and operators are
liable for their pro-rated share of payment obligations under a
lease.
Sec. 304. Required recordkeeping
Section 304 requires oil and gas records to be kept by
payors for seven years instead of the current six, which aligns
that timeframe with the statue of limitations for the
government established under the Royalty Fairness and
Simplification Act of 1995 (P.L. 104-185) to collect unpaid
royalties.
Sec. 305. Fines and penalties
Section 305 amends FOGRMA to double fines for underpayment
or late payment of royalties, and also doubles the penalty for
theft. These penalties have not been increased since 1983. The
section further extends the statute of limitations for oil and
gas leases held by violators.
Sec. 306. Interest on overpayments
Section 306 eliminates the current requirement that the
federal government pay interest on royalty overpayments made by
operators. The Committee believes that this would eliminate the
incentive that operators have to make errors in their favor on
their royalty calculation and receive a guaranteed return of
the payment made in error plus interest.
Sec. 307. Adjustments and refunds
Section 307 eliminates the opportunity for lessees to make
adjustments to their royalty obligations after a compliance
review or audit is completed on a lease in question, and limits
the ability to make adjustments to four years after the date
royalties were initially due.
Sec. 308. Conforming amendment
Section 308 repeals Section 114 of FOGRMA, which related to
a study on noncompetitive leases that was due in 1983.
Sec. 309. Obligation period
Section 309 establishes that in the case of an adjustment
made by a lessee that results in an underpayment, the lessee
would be obligated to repay that amount (plus interest) from
the date the lessee makes the adjustment, thus extending the
statute of limitations on that royalty payment.
Sec. 310. Notice regarding tolling agreements and subpoenas
Section 310 allows the Secretary to correspond only with
the lease designee in the case of subpoenas or agreements to
pause the statute of limitations, as opposed to having to
contact each lessee individually.
Sec. 311. Appeals and final agency action
Section 311 extends the timeframe for the Secretary to
issue final decisions on any appeals on demands or orders to
pay royalties or penalties to 48 months, from the current 33
months.
Sec. 312. Assessments
Section 312 repeals Section 116 of FOGRMA, which prohibited
the Secretary from imposing assessments on payors who
chronically submit erroneous royalty reports.
Sec. 313. Collection and production accountability
Section 313 establishes a pilot project for the automated
transmission of electronic data from offshore wellheads and
meters to the federal government, in order to improve the
accuracy and efficiency of data and royalty collection.
Sec. 314. Natural gas reporting
Section 314 requires the Secretary to implement the steps
necessary to ensure accurate reporting of heat content values
of natural gas.
Sec. 315. Penalty for late or incorrect reporting of data
Section 315 establishes a penalty for companies that file
late or incorrect data, to be set at a level the Secretary
determines is sufficient to ensure that companies file correct
data on time, but no less than $10 per incorrect line of data.
Sec. 316. Required recordkeeping
Section 316 requires the Secretary to amend existing
regulations to encompass the full authority granted under
FOGRMA Section 103 to require lessees, operators, or anyone
involved in developing, producing, transporting, purchasing, or
selling oil or natural gas from federal lands to provide
records to the federal government upon request, if the
Secretary implements such authority by rule. The current
regulations promulgated under section 103 apply only to lessees
and operators, ignoring the federal government's authority to
audit natural gas purchasers.
Sec. 317. Shared civil penalties
Section 317 amends Section 206 of FOGRMA to eliminate a
disincentive for states and tribes to diligently pursue royalty
violators. Under current law, any civil penalties that are
collected under FOGRMA due to the work of state or tribal
auditors are divided evenly between the states or tribes and
the federal government. The amount the state or tribe receives
from the civil penalty is then subtracted from the amount of
money they would have received under their cooperative
agreements with MMS. This means that, currently, state and
tribal auditors receive no benefit for any work they do in
identifying royalty violators.
Sec. 318. Applicability to other minerals
Section 318 extends the civil and criminal enforcement
authority in FOGRMA to coal and other solid minerals on federal
lands, as well as to solid mineral mining or alternative energy
development on the Outer Continental Shelf.
Sec. 319. Entitlements
Section 319 requires the Secretary to publish final
regulations regarding procedures for reporting royalties on
entitled shares of production from unitized leases when lessees
do not actually sell their share of production from that lease.
TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION FUND
Subtitle A--Land and Water Conservation Fund
Pursuant to the Land and Water Conservation Fund (LWCF) Act
of 1965 (16 U.S.C. 460l-4 et seq.) $900,000,000 is deposited
into the Land and Water Conservation Fund annually. The vast
majority of that funding is derived from miscellaneous receipts
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.).
The LWCF Act specifies that not less than 40% of the money
allocated from the Fund shall be available for federal purposes
which include acquisition of land, waters, or interests in land
or waters within National Parks, within or near National
Forests, or related to important fish and wildlife habitat.
The LWCF Act further authorizes matching grants to States
for planning, acquisition of land, waters, or interests in land
or waters, or development, related to recreation. A percentage
of the funding awarded to the States is apportioned equally
while the remainder is awarded based on need, with need
determined based on population and the demand placed on
existing recreation facilities. The LWCF Act does not specify a
percentage for the state program.
Currently, the amount of funding provided for actual
expenditure under the LWCF Act is determined through the annual
appropriations process. While the full $900,000,000 is credited
to the Fund each year, only a fraction of that amount is
expended for the programs and purposes included in the Act. As
a result, a balance of more than $17 billion has accrued in the
Fund over the years.
This Subtitle amends the LWCF Act to make the full
$900,000,000 available annually to the federal and stateside
programs, without further appropriation. Further, the Subtitle
amends the LWCF Act to extend authorization for the LWCF
through September 30, 2040. Subtitle A leaves in place all
other existing provisions of the LWCF, including the 40%
minimum requirement for the federal program. It is the
Committee's expectation that LWCF funding will be allocated
equitably between the federal and state programs.
Since its passage in 1965, deposits into the LWCF, and the
expenditure of these funds on critical conservation projects,
have been part of federal policy governing energy development
in the Outer Continental Shelf. LWCF expenditures have not kept
pace with OCS development, however, and the Committee intends
that Subtitle A will correct this imbalance.
Sec. 401. Amendments to the Land and Water Conservation Fund Act of
1965
Section 401 establishes that all language in this subtitle
amends the Land and Water Conservation Fund (LWCF) Act of 1965
(16 U.S.C. 460l-4 et seq.).
Sec. 402. Extension of the Land and Water Conservation Fund
Section 402 extends the authorization of the LWCF until
2040.
Sec. 403. Permanent funding
Section 403 provides for $900 million to be available to
the LWCF each year out of OCS receipts without further
appropriation.
Subtitle B--National Historic Preservation Fund
Sec. 411. Permanent funding
Pursuant to the National Historic Preservation Act (16
U.S.C. 470 et seq.), $150,000,000 is deposited in the Historic
Preservation Fund (HPF) annually for the purposes of that Act.
These funds are also derived from revenue due and payable to
the United States under the Outer Continental Shelf Lands Act.
As with LWCF funding, expenditures from the HPF are subject
to appropriations; the HPF currently has a balance of $2.8
billion. Section 411 amends the National Historic Preservation
Act to make the full $150,000,000 available annually, without
further appropriation. This section also extends authorization
for the HPF through 2040.
Payment into the HPF, and expenditure of those funds for
preservation of historic and cultural resources, has also been
part of federal OCS policy for decades but will only be fully
realized with enactment of full, mandatory funding.
TITLE V--ALTERNATIVE ENERGY DEVELOPMENT
Sec. 501. Commercial wind and solar leasing program
Section 501 establishes a leasing program for wind and
solar projects on federal lands, in contrast to the special use
permits and rights-of-way authorizations that are currently
used. The Secretary is no longer authorized to lease Forest
Service lands for renewable energy over the objections of the
Secretary of Agriculture. This section further provides that
final regulations establishing a leasing program be published
within 18 months after the date of enactment, and leasing
commence no later than 90 days after issuance of the
regulations.
The Committee believes a leasing system for wind and solar
energy on federal lands is the simplest and fairest way to
ensure responsible development. Most other forms of energy
development (oil and gas, coal, renewable energy on the OCS,
geothermal energy) have competitive leasing systems. In the
absence of the direct statutory guidance this Act provides, BLM
has elected to approve renewable energy projects through right-
of-way authorizations (ROW) established by the Federal Land
Policy and Management Act of 1976 (FLPMA). ROW authorizations
are traditionally used by BLM to locate power lines, pipelines,
and communications towers and lines on federal land. They are
intended for linear uses of lands, rather than commercial
development of a resource from the land. Even BLM's
implementing regulations for FLPMA indicate that renewable
energy development is more appropriately handled by leasing: 30
CFR 2920.1-1(a) states, ``Leases shall be used to authorize
uses of public lands involving substantial construction,
development, or land improvement and the investment of large
amounts of capital which are to be amortized over time.''
The Committee is not persuaded by industry assertions that
competitive leasing is inappropriate because the solar industry
is not mature, and competitive leasing will result in little or
no solar development on public lands. BLM has identified 23
million acres of public lands with utility-scale solar energy
potential and already over 200 right of way applications have
been submitted to BLM. Importantly, BLM data shows that of
those applications for solar projects, 35% are for overlapping
areas; about 10% of wind applications overlap. Clearly, there
is strong interest in prime, valuable parcels of sun and wind-
rich public lands, as well as a need for a competitive lease
process as a simple way to ensure that sites are awarded to
companies with the best project proposal--those that have the
financial and technical expertise to bring a project to
fruition.
Subsection (d) eliminates the ability to site commercial
solar or wind projects on BLM or Forest Service land using a
right-of-way or special use permit. However, subsection (f), as
amended, allows rights-of-way or special use permits to be
issued for projects that have submitted an application for a
solar or wind right of way permit, or for a permit for a
meteorological tower or to construct a wind farm, or have
already installed a data collection device, prior to the date
of enactment.
Subsection (e) allows for the issuance of noncompetitive
leases for noncommercial testing purposes, and gives the
Secretary the authority to award preference to holders of
noncompetitive leases during a commercial lease sale.
Subsection (g) requires the Secretary to promulgate diligent
development requirements for solar and wind leases and, as
amended, regulations to ensure that leases are not obtained for
speculative purposes.
The Committee emphasizes its support for the
Administration's priority of dramatically increasing the
nation's clean energy capacity, and the Department of the
Interior's efforts to permit 34 wind and solar ``fast-track''
projects on public lands by the end of 2010. However, the
Committee is concerned that a lack of clear guidance for siting
these projects has caused permitting and development delays. To
remedy the situation and expedite projects currently under
consideration (including those that will be grandfathered under
the ROW process by this Act) the Committee urges the Department
of the Interior to promptly issue clear and specific interim
guidance on project siting and the environmental review
process. Interim guidance will provide important benefits until
BLM completes its Programmatic Solar Environmental Impact
Study; it would help BLM staff meet legal requirements and
achieve federal and state priorities, provide consistency in
documents and authorizations for conditions of use, and enable
more efficient, coordinated and expeditious permitting by
Renewable Energy Coordination Offices.
At a minimum, the Committee believes that interim guidance
for renewable energy development on federal lands should ensure
that the permitting process complies with all applicable
federal environmental laws; guides development to complement
forthcoming programmatic plans; and, ultimately, expedites the
approval and development of environmentally-sound renewable
energy projects.
Sec. 502. Land management
Section 502 requires the Secretary to issue regulations for
solar and wind leasing, establishing the lease terms, bonding
requirements, and land reclamation requirements. Section 502
also ensures that solar and wind lease terms would be for no
less than 30 years.
Sec. 503. Revenues
Section 503 requires the Secretary to set rates for
rentals, royalties, fees, bonus bids and other payments at a
level to ensure a fair return to the United States and
encourage development of wind and solar energy on federal
lands. Section 503 also allows the Secretary to waive the
rental payment for the development of renewable energy projects
on lands that have already been adversely impacted by
significant prior use.
The Office of the Inspector General of the Department of
the Interior testified in support of obtaining fair market
value for revenues from solar and wind projects (Mary L.
Kendall, Acting Inspector General, House Committee on Natural
Resources Hearing on H.R. 3534, September 16, 2009). In
response to concerns that charging royalties will put solar at
a competitive disadvantage compared to mature electricity
sources, the Committee notes that this section gives the
Secretary both discretion and direction to establish royalties
and other payments that ``encourage development of solar and
wind on federal lands'' which could include phased in
royalties, royalties tied to production volumes or prices, or
other measures that provide a fair return to the government but
also facilitate viable renewable energy projects on public
lands.
The Committee does not accept the assertion that solar and
wind developers should pay only minimal rentals and no royalty
because they are not ``removing'' a commodity from the land.
The Committee notes that commercial scale solar projects will
make large-scale landscape changes and prevent other uses of
those lands during the lease terms, as well as the fact that
some wet-cooled technologies could use substantial amounts of
water.
Equally importantly, the key consideration is not whether
solar or wind development removes a resource from public lands,
it is whether solar and wind developers pay fair market value
or a fair return for use of the public's lands. Many prime
sites for solar and wind have considerable value that the
current ROW structure, which is based on agricultural use
values, does not capture, nor can it distinguish among the most
promising sites with the maximum potential for electricity
generation, and value them accordingly. Among the well-
established statutory goals of payments for federal lands by a
variety of users are realizing a fair return to the taxpayer
for the use the lands, offsetting damage caused by the
permitted uses, and obtaining funds to compensate for the
reduction or loss of other uses of the lands. Royalties are a
key means of capturing the added value of land--or the loss of
the value of that land--beyond the direct physical occupation
of the land.
With regard to those lands already adversely impacted by
development, the Committee believes multiple benefits can be
achieved by waiving rental fees for renewable energy projects
on those areas. Reuse of already developed or contaminated
parcels for renewable energy can provide energy and jobs, and
relieve development pressure on undeveloped ``green'' spaces.
As an added benefit, an old mine site, decommissioned landfill,
or gravel pit may already be located near transmission
capacity. The Committee encourages the Secretary to consider
other ways to provide incentives for reuse of previously
impacted sites for renewable energy, including expedited
processing and permitting of renewable energy projects on those
lands
Sec. 504. Recordkeeping and reporting requirements
Section 504 requires lessees, permit holders, or renewable
energy operators to maintain records for seven years, in order
to allow for future audits or compliance reviews of renewable
energy production on federal lands.
Sec. 505. Audits
Section 505 authorizes the Secretary to conduct audits of
onshore wind and solar leases.
Sec. 506. Trade secrets
Section 506 allows confidential or proprietary information
to be made available by the Secretary to other federal agencies
if necessary to carry out the provisions of this Act or other
federal law.
Sec. 507. Interest and substantial underreporting assessments
Section 507 allows interest to be charged on late royalty
payments for wind and solar leases, and also establishes a
civil penalty of up to 25% for underpayments, in addition to
making royalty violators subject to the civil penalty
provisions of FOGRMA. The Secretary is authorized to waive
penalties if the underpayment is corrected before the payor
receives a notice from the Secretary of that underpayment, and
for other reasons. This section also establishes joint and
several liability for royalty payments on a lease.
Sec. 508. Indian savings provision
Section 508 provides that the rights and interests of
Indian tribes are not affected by this Title.
Sec. 509. Transmission savings provision
Section 509 clarifies that the renewable energy leasing
authorities of the Bureau of Energy and Resource Management do
not affect the authority of other federal agencies with respect
to the permitting of electric transmission facilities.
TITLE VI--COORDINATION AND PLANNING
Sec. 601. Regional coordination
Section 601 addresses the need for long-term coordination
and planning amongst federal agencies with authorities for
ocean, coastal, and Great Lakes management and between those
federal agencies and states, and establishes nine Coordination
Regions in the Pacific, Gulf of Mexico, North Atlantic, Mid
Atlantic, South Atlantic, Alaska, Pacific Islands, and the
Caribbean.
Sec. 602. Regional Coordination Councils
Section 602 establishes Regional Coordination Councils,
designated by the Chairman of the Council on Environmental
Quality, which are to include representatives of relevant
federal agencies, coastal states, Regional Fishery Management
Councils, interstate fisheries commissions, Regional Ocean
Partnerships, affected Tribes, and county and local
governments. This section also requires each Regional
Coordination Council to establish an Advisory Committee with
balanced representation to give advice during the development
of Regional Assessments and Regional Strategic Plans.
Sec. 603. Regional Strategic Plans
Section 603 authorizes the Regional Coordination Councils
to prepare and complete Strategic Plans, within 3 years after
completion of an initial regional assessment, to foster
comprehensive, integrated, and sustainable development and use
of ocean, coastal, and Great Lakes resources, while protecting
marine ecosystem health and sustaining the long-term economic
and ecosystem values of the oceans.
Sec. 604. Regulations
Section 604 authorizes the Chair of the Council on
Environmental Quality to issue regulations necessary to
administer this Title.
Sec. 605. Ocean Resources Conservation and Assistance Fund
Section 605 establishes an Ocean Resources Conservation and
Assistance (ORCA) Fund. A percentage of all OCS revenues would
be deposited into the ORCA Fund, which would provide grants to
coastal states and Regional Ocean Partnerships for activities
that contribute to the protection, maintenance, and restoration
of ocean, coastal and Great Lakes ecosystems including: the
development and implementation of comprehensive, science-based
plans for monitoring and managing the wide variety of uses
affecting the oceans, coasts and Great Lakes ecosystems;
activities to improve the ability of those ecosystems to become
more resilient and adapt to and withstand the impacts of
climate change and ocean acidification; planning for and
managing coastal development to minimize the loss of life and
property associated with sea-level rise and the coastal hazards
resulting from it; research, assessment and monitoring that
contribute to these purposes; strengthened planning for coastal
State oil spill response; and the build-out and operation and
maintenance of an Integrated Ocean Observation System as
authorized under Public Law 111-11 to continuously provide
quality-controlled environmental data and information on
current and future conditions of the U.S. ocean and coastal
environment.
With so much revenue being generated by energy development
in the outer Continental Shelf, the Committee believes it is
sensible to reinvest some of those revenues back into the
conservation and management of the oceans and coasts that yield
these benefits, and so many others. The Deepwater Horizon
disaster highlighted how little is known about the Gulf of
Mexico ecosystem and how little planning has been conducted to
manage and protect these resources in the event of a
catastrophic oil spill. As noted in testimony before the
Subcommittee on Insular Affairs, Oceans and Wildlife, during
hearings on the spill, federal regulatory and trustee agencies
lack baseline information on the Gulf of Mexico ecosystem and
the necessary in-house capacity to properly assess the impacts
of this unprecedented oil spill now and into the future. In
addition, strategic and contingency planning for this worst-
case scenario was revealed to be wholly inadequate, by both
industry and by federal and state government agencies. The
Subcommittee also received testimony that suggested that the
costs of preparedness planning should be born largely by the
industry that is the source of the risk.
Sec. 606. Waiver
Section 606 exempts the Regional Coordination Councils from
the Federal Advisory Committee Act.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Repeal of certain taxpayer subsidized royalty relief for the
oil and gas industry
Section 701 repeals the shallow-water-deep-gas, deep-water,
and Alaskan OCS royalty relief provisions that were enacted in
the Energy Policy Act of 2005 (EPAct) (P.L. 109-58). Subsection
(c) repeals language from EPAct that provided for leases
extensions and royalty relief in the National Petroleum
Reserve-Alaska.
Sec. 702. Conservation fee
Section 702 imposes a fee of $2 per barrel of oil, or 20
cents per million Btu of natural gas, for production from all
new and existing Federal onshore and offshore leases. This
section provides that the fee will be deposited in the Land and
Water Conservation Fund, the Historic Preservation Fund, the
ORCA Fund, and the U.S. Treasury, and will expire on December
31, 2021.
Sec. 703. Leasing on Indian lands
Section 703 provides that nothing in this Act would amend
or modify leasing as it is currently carried out on Indian
lands by the Bureau of Indian Affairs.
Sec. 704. Offshore aquaculture clarification
Section 704 clarifies that the Secretary of Commerce and
the Regional Fishery Management Councils do not have the
authority to develop or approve fishery management plans for
the purposes of permitting or regulating aquaculture in the
U.S. Exclusive Economic Zone. The Committee believes that a
national aquaculture policy and a regulatory program with
consistent standards and environmental protections is a more
appropriate route for the development of offshore aquaculture
in the United States.
Offshore aquaculture is a new, emerging ocean use and if
poorly sited could conflict with existing ocean uses, including
offshore oil and gas activities. The National Oceanic and
Atmospheric Administration (NOAA) assumes that the Magnuson-
Stevens Fishery Conservation and Management Act (16 U.S.C. 1801
et seq.) gives that agency the authority to regulate offshore
aquaculture, but the Committee believes that it was never the
intent of Congress to provide this authority. The Committee
further believes that use of the law for this purpose sets a
dangerous precedent where offshore aquaculture would be
regulated on a case-by-case basis, with an inconsistent
application of regulations and standards.
Sec. 705. Outer Continental Shelf State Boundaries
Section 705 directs the Secretary to carry out the OCSLA
Section 4(a)(2)(A) mandate to determine the seaward boundaries
of the states to the outer margin of the OCS. The Committee
notes that the mandate was originally included in 1953, when
the OCSLA was first passed. The 1977 Committee Report from the
Ad Hoc Select Committee on the Outer Continental Shelf (report
No. 95-590) states, ``[t]he committee, although concerned that
such determinations have still not yet been completed, has left
the section untouched . . . the committee strongly believes
that the President should promptly determine and publish such
lines and establish procedures, if necessary, for the settling
of any disputes relating to the projection of such lines, prior
to such determination.''
Although the Outer Continental Shelf and the resources
therein are entirely federal, rendering such lines not strictly
necessary, the Department of the Interior has in recent years
increasingly moved towards planning within what it considers to
be the administrative boundaries of certain states on the OCS.
For example, the area chosen for Lease Sale 220 in the Atlantic
Region was based on administrative lines published in 2006 by
the Minerals Management Service (71 Fed. Reg. 127; January 3,
2006). The Committee does not believe that the 2006
administrative lines adequately fulfill the mandate of Section
4 of the OCSLA. These lines are drawn purely based on
equidistance principles, and do not take ``special
circumstances'', as referred to in Article 12 of the United
Nations Convention on the Territorial Sea and the Contiguous
Zone, into account. Along the Atlantic seaboard in particular,
the concavity and convexity of state coastlines creates large,
and potentially inequitable, disparities between the amount of
the OCS deemed to be within the administrative planning area of
each state. Certain states, such as Virginia, have already
protested the amount of the OCS that is deemed to be within
their administrative boundaries. Given that these boundaries
may become increasingly important in planning future activities
on the OCS, it is unacceptable that the Department of the
Interior has not conducted a formal, open process to establish
the boundaries mandated in Section 4 of the OCSLA, and the
Committee intends that this section will rectify that
situation.
Sec. 706. Liability for damages to National Wildlife Refuges
Section 706 amends the National Wildlife Refuge System
Administration Act of 1966 to hold any person or
instrumentality which destroys, causes the loss of, or injures
a refuge resource, or any living or nonliving resource of the
refuge system or marine national monument, liable to the United
States for such damages. This section further authorizes the
Secretary to use the amounts recovered for costs of response
actions and damage assessments and to recover, restore, or when
necessary, replace damaged resources. This authority does not
apply in those instances when the activity is permitted by
federal or state law, is caused by an act of God or an act of
war, or results in damage that was negligible. This section
establishes a three-year statute of limitation for response
costs and damages beginning on the date the Secretary completes
a damage assessment and recovery for actions.
The Committee notes that there are 36 National Wildlife
Refuges in the Gulf of Mexico region at risk from the Deepwater
Horizon disaster, but the organic act for the National Wildlife
Refuge System contains no liability for natural resource
damages. These liability provisions occur in other statutes,
including the Park System Resource Protection Act (16 U.S.C.
19jj) and the National Marine Sanctuaries Act (16 U.S.C. 1431
et seq.). These authorities have been used judiciously to
enable the federal government to hold responsible parties
accountable when trust resources are damaged or destroyed, and
to recover compensation for these losses on behalf of the
American taxpayer. The Committee believes that the nation's
wildlife refuges deserve no less consideration than other
federal recreation lands, and this section provides that the
same liability standard applies.
Sec. 707. Strengthening coastal State oil spill planning and response
Section 707 amends Section 306 of the Coastal Zone
Management Act of 1972 to provide grants, not to exceed
$750,000, to eligible coastal states to revise management
programs to develop and implement new enforceable policies and
procedures to ensure sufficient oil spill response
capabilities. Coastal states would be eligible to receive a
maximum of two grants in different fiscal years under this
section.
Under the Coastal Zone Management Act, eligible coastal
states were required to provide a planning process and
enforceable policies for energy facilities likely to be located
in, or which may significantly affect, the coastal zone,
including a process for anticipating the management of impacts
resulting from such facilities. Responding to oil spills
requires planning at various scales and integration of these
efforts to ensure the coordination and effectiveness of
response and recovery activities. Various plans were in place
before the Deepwater Horizon incident and while response and
recovery activities have adhered to these plans, these actions
have been insufficient and ineffective due to unprecedented
complexity and magnitude of this oil spill.
Sec. 708. Information sharing
Section 708 amends Section 388(b) of the Energy Policy Act
of 2005 (P.L. 109-58) to require other federal agencies to
provide data and information to the Secretary of the Interior
in support of the Coordinated OCS Mapping Initiative.
Sec. 709. Repeal of funding
Section 709 amends Section 999H of the Energy Policy Act of
2005 (P.L. 109-58) to eliminate the automatic $50 million in
funding from offshore revenues that the Ultra-deepwater and
Unconventional Onshore Natural Gas and Other Petroleum Research
and Development Program receives each year. Such research has
been primarily focused on new methods of extracting
hydrocarbons, and the Committee believes it is more
appropriately funded by the oil and gas industry.
Sec. 710. Savings clause
Section 710 provides that no funds from this Act would be
able to pay any cost for which any responsible party is liable
under the Oil Pollution Act of 1990.
Sec. 711. Additional public right-to-know requirements
Section 711 requires the Secretary of the Interior to
maintain a public database listing all lawsuits filed against
the Department pursuant to the OCSLA, Mineral Leasing Act, and
Geothermal Steam Act of 1970. This section also requires
attorney's fees to be included in this database.
Sec. 712. Federal response to state proposals to protect lands and
waters
Section 712 requires that when states apply for a permit to
undertake a project in response to an oil spill of national
significance, federal agencies must either decide on the
application within 48 hours or provide a definitive date by
which the application will be decided by. Failure by the
federal agency to meet deadlines under this section results in
the application being deemed approved.
TITLE VIII--GULF OF MEXICO RESTORATION
Sec. 801. Gulf of Mexico restoration program
Section 801 establishes a Gulf of Mexico Restoration Task
Force, composed of the heads of the relevant federal agencies
and the governors of the Gulf coast states, to develop and
publish a long-term restoration plan within one year after the
date of enactment. The Plan would identify processes and
strategies for coordinating and implementing federal, state,
and local restoration programs and projects, using the best-
available science. The Committee recognizes that significant
resources will be spent by federal, state and local entities to
restore the Gulf ecosystem, and it is very important that the
efforts of those entities is coordinated to maximize their
effectiveness, to eliminate redundant activities, and to ensure
that responsible parties fulfill their obligations and are held
accountable under any future settlements for natural resource
damages.
TITLE IX--GEOTHERMAL PRODUCTION EXPANSION
Sec. 901. Short title
Section 901 provides that this title may be cited as the
``Geothermal Production Expansion Act.''
Sec. 902. Findings
Section 902 provides that Congress makes certain findings
related to geothermal energy.
Sec. 903. Noncompetitive leasing of adjoining areas for development of
geothermal resources committee
Section 903 amends the Geothermal Steam Act of 1970 to
provide an opportunity for the noncompetitive leasing of up to
1 square mile of federal land when a geothermal discovery has
been made immediately adjacent to those lands. Such leases
would be available at the fair market value as determined by
the Secretary, but not less than $50 per acre, or four times
the median amount paid per acre for all geothermal leases
issued in the preceding year, whichever is greater. This
section also requires that any potential noncompetitive
geothermal leases be publicly noticed, and that prospective
lessees and the public be able to appeal the determination of
fair market value.
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.
Federal Advisory Committee Statement
The functions of the proposed advisory committee authorized
in the bill are not currently being nor could they be performed
by one or more agencies, an advisory committee already in
existence or by enlarging the mandate of an existing advisory
committee.
Constitutional Authority Statement
Article I, section 8 and Article IV, section 3 of the
Constitution of the United States grant Congress the authority
to enact this bill.
Compliance With House Rule XIII
1. Cost of Legislation. Clause 3(c)(2) of rule XIII of the
Rules of the House of Representatives is satisfied when a cost
estimate and comparison prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974 has been timely submitted
prior to the filing of the committee report and is included in
the report. The Committee has not yet received a cost estimate
for H.R. 3534 from the Director of the Congressional Budget
Office. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
section 308(a) of the Congressional Budget Act of 1974, the
Committee references the Committee Cost Estimate, included
below.
2. Congressional Budget Act. With respect to the
requirement of clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives and section 402 of the Congressional
Budget Act of 1974, a cost estimate from the Director of the
Congressional Budget Office is not available.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII of the Rules of the House of
Representatives, the general performance goal and objective of
this legislation is to provide greater efficiencies,
transparency, returns, and accountability in the administration
of Federal mineral and energy resources, and for other
purposes.
Committee Cost Estimate
H.R. 3534, as ordered reported, would reform the regulation
of energy development on and within federal land and waters.
The bill would also establish a federal framework to protect
natural resources affected by federal energy development and
provide for a fair return to the federal government for the use
of public resources. To achieve this, H.R. 3534 would create
new Department of the Interior agencies to regulate federal
energy development; provide safety, environmental and financial
reform of offshore and onshore federal energy development; end
unwarranted royalty relief for the oil and gas industry and
reform the federal oil and gas royalty program; provide full
funding for the Land and Water Conservation and Historic
Preservation Funds; provide for rational alternative energy
development on federal land and waters; establish coordination
and planning on the development and use of federal renewable
and nonrenewable resources affecting the ocean, coastal, and
Great Lakes environments; and authorize a program for the
restoration of the Gulf of Mexico.
H.R. 3534 would authorize increases in discretionary
spending to carry out necessary reforms of the federal offshore
and onshore energy programs and protect important resources.
The Committee believes these discretionary increases are
necessary to achieve the safety, environmental, and financial
benefits provided by the bill. In addition, the bill would
affect revenue and direct spending by establishing a new
conservation fee, providing for renegotiation of certain
royalty-free leases, repealing existing mandatory spending
programs, and providing funding for the Land and Water
Conservation Fund (LWCF), the Historic Preservation Fund (HPF),
and the Ocean Resources Conservation and Assistance (ORCA) Fund
established by section 605 of the reported bill.
The conservation fee established by section 702 and the
renegotiation of leases and subsequent collection of royalties
provided for by Subtitle C of Title II have previously been
considered and passed by the House of Representatives. Although
the exact amount of revenue to be raised by the fee and lease
renegotiation are uncertain, the Committee believes these
provisions would generate significant revenue. A previous
estimate provided by the Congressional Budget Office for H.R. 6
in the 110th Congress estimated that a similar conservation fee
would generate $6.1 billion over a 10-year period.
The other provisions significantly affecting direct
spending involve full funding for the LWCF ($900 million
annually) and HPF ($150 million annually), and funding for the
newly established ORCA Fund (10 percent of qualified OCS
leasing revenue annually). For more than three decades,
revenues generated by oil and gas leasing in the Outer
Continental Shelf (OCS) have been credited to the LWCF and HPF.
Providing direct spending for the LWCF and HPF will fulfill the
longstanding premise behind these two funds; namely that as we
deplete one natural resource (oil and gas in the OCS) we should
dedicate a portion of the revenues to the preservation of the
natural, historical and recreational resources of the United
States. Further, it is the view of the Committee that we should
dedicate a portion of the revenues generated from our oceans to
the preservation of our ocean resources.
Compliance With Public Law 104-4
The Committee has not received an estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (UMRA) (Public Law 104-4). The Committee estimates that
H.R. 3534 contains private-sector mandates as defined in UMRA
because it would impose new safety standards and other
requirements on offshore and onshore federal energy
development. The Committee estimates that the aggregate cost of
complying with the private-sector mandates in the bill could be
significant, and may exceed the annual threshold established in
UMRA ($141 million, adjusted annually for inflation).
Earmark Statement
H.R. 3435 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
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 italic, existing law in which no change is
proposed is shown in roman):
TITLE 5, UNITED STATES CODE
* * * * * * *
PART III--EMPLOYEES
* * * * * * *
SUBPART D--PAY AND ALLOWANCES
* * * * * * *
CHAPTER 53--PAY RATES AND SYSTEMS
* * * * * * *
SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES
* * * * * * *
Sec. 5316. Positions at level V
Level V of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay shall be the
rate determined with respect to such level under chapter 11 of
title 2, as adjusted by section 5318 of this title:
Administrator, Bonneville Power Administration,
Department of the Interior.
* * * * * * *
[Director, Bureau of Mines, Department of the
Interior.]
Director, Bureau of Energy and Resource Management,
Department of the Interior.
Director, Bureau of Safety and Environmental
Enforcement, Department of the Interior.
Director, Office of Natural Resources Revenue,
Department of the Interior.
* * * * * * *
----------
OUTER CONTINENTAL SHELF LANDS ACT
* * * * * * *
Sec. 2. Definitions.--When used in this Act--
(a) * * *
* * * * * * *
(r) The term ``safety case'' means a body of evidence that
provides a basis for determining whether a system is adequately
safe for a given application in a given operating environment.
Sec. 3. National Policy for the Outer Continental Shelf.--It
is hereby declared to be the policy of the United States that--
(1) * * *
* * * * * * *
[(3) the outer Continental Shelf is a vital national
resource reserve held by the Federal Government for the
public, which should be made available for expeditious
and orderly development, subject to environmental
safeguards, in a manner which is consistent with the
maintainence of competition and other national needs;]
(3) the outer Continental Shelf is a vital national
resource reserve held by the Federal Government for the
public, that should be managed in a manner that--
(A) recognizes the need of the United States
for domestic sources of energy, food, minerals,
and other resources;
(B) minimizes the potential impacts of
development of those resources on the marine
and coastal environment and on human health and
safety; and
(C) acknowledges the long-term economic value
to the United States of the balanced and
orderly management of those resources that
safeguards the environment and respects the
multiple values and uses of the outer
Continental Shelf;
(4) since exploration, development, and production of
the minerals of the outer Continental Shelf will have
significant impacts on coastal and non-coastal areas of
the coastal States, and on other affected States, and,
in recognition of the national interest in the
effective management of the marine, coastal, and human
environments--
(A) * * *
* * * * * * *
(C) such States, and through such States,
affected local governments, are entitled to an
opportunity to participate, to the extent
consistent with the national interest, in the
policy and planning decisions made by the
Federal Government relating to exploration for,
and development and production of, minerals of
the outer Continental Shelf[.];
(5) the rights and responsibilities of all States
and, where appropriate, local governments, to preserve
and protect their marine, human, and coastal
environments through such means as regulation of land,
air, and water uses, of safety, and of related
development and activity [should be] shall be
considered and recognized; [and]
(6) exploration, development, and production of
energy and minerals on the outer Continental Shelf
should be allowed only when those activities can be
accomplished in a manner that minimizes--
(A) harmful impacts to life (including fish
and other aquatic life) and health;
(B) damage to the marine, coastal, and human
environments and to property; and
(C) harm to other users of the waters,
seabed, or subsoil; and
[(6)] (7) operations in the outer Continental Shelf
[should be] shall be conducted in a safe manner by
well-trained personnel using best available technology,
precautions, and techniques sufficient to prevent [or
minimize] the likelihood of blowouts, loss of well
control, fires, spillage, physical obstruction to other
users of the waters or subsoil and seabed, or other
occurrences which may cause damage to the environment
or to property, or endanger life or health.
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 producing or supporting production of
energy from sources other than oil and gas, or any such
installation or other device (other than a ship or vessel) for
the purpose of transporting such resources or transmitting such
energy, 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 and other energy leases
on the outer Continental Shelf shall be maintained or issued
only under the provisions of this Act.
* * * * * * *
Sec. 5. Administration of Leasing of the Outer Continental
Shelf.--(a) The Secretary shall administer the provisions of
this Act relating to the leasing of the outer Continental
Shelf, and shall prescribe such rules and regulations as may be
necessary to carry out such provisions. [The Secretary may at
any time] The Secretary shall prescribe and amend such rules
and regulations as he determines to be necessary and proper in
order to provide for operational safety, the protection of the
marine and coastal environment, and the prevention of waste and
conservation of the natural resources of the outer Continental
Shelf, and the protection of correlative rights therein, and,
not withstanding any other provisions herein, such rules and
regulations shall, as of their effective date, apply to all
operations conducted under a lease issued or maintained under
the provisions of this Act. In the enforcement of safety,
environmental, and conservation laws and regulations, the
Secretary shall cooperate with the relevant departments and
agencies of the Federal Government and of the affected States.
In the formulation and promulgation of regulations, the
Secretary shall request and give due consideration to the views
of the Attorney General with respect to matters which may
affect competition and the Secretary of Commerce with respect
to matters that may affect the marine and coastal environment.
In considering any regulations and in preparing any such views
the Attorney General shall consult with the Federal Trade
Commission. The regulations prescribed by the Secretary under
this subsection shall include, but not be limited to,
provisions--
(1) * * *
(2) with respect to cancellation of any lease or
permit--
(A) that such cancellation may occur at any
time, if the Secretary determines, after a
hearing, that--
(i) * * *
(ii) the threat of harm or damage
will not disappear or decrease to an
acceptable extent within [a reasonable
period of time] 30 days; and
* * * * * * *
(7) for the prompt and efficient exploration and
development of a lease area in a manner that minimizes
harmful impacts to the marine and coastal environment;
[and]
(8) for independent third-party certification
requirements of safety systems related to well control,
such as blowout preventers;
(9) for performance requirements for blowout
preventers, including quantitative risk assessment
standards, subsea testing, and secondary activation
methods;
(10) for independent third-party certification
requirements of well casing and cementing programs and
procedures;
(11) for the establishment of mandatory safety and
environmental management systems by operators on the
Outer Continental Shelf;
[(8)] (12) for compliance with the national ambient
air quality standards pursuant to the Clean Air Act (42
U.S.C. 7401 et seq.), to the extent that activities
authorized under this Act significantly affect the air
quality of any State[.]; and
(13) ensuring compliance with other applicable
environmental and natural resource conservation laws.
* * * * * * *
(k) Documents Incorporated by Reference.--Any documents
incorporated by reference in regulations promulgated by the
Secretary pursuant to this Act shall be made available to the
public, free of charge, on a website maintained by the
Secretary.
* * * * * * *
Sec. 8. Leases, Easements, and Rights-of-Way on the Outer
Continental Shelf.--(a)(1) * * *
* * * * * * *
(3)(A) * * *
(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) * * *
* * * * * * *
(9) At least 60 days prior to any lease sale, the Secretary
shall request a review by the Secretary of Commerce of the
proposed sale with respect to impacts on the marine and coastal
environment. The Secretary of Commerce shall complete and
submit in writing the results of that review within 60 days
after receipt of the Secretary of the Interior's request.
(b) [An oil and gas lease issued pursuant to this section
shall] An oil and gas lease may be issued pursuant to this
section only if the Secretary determines that activities under
the lease are not likely to result in any condition described
in section 5(a)(2)(A)(i), and 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];
* * * * * * *
[(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.]
(d) Requirement for Certification of Responsible
Stewardship.--
(1) Certification requirement.--No bid or request for
a lease, easement, or right-of-way under this section,
or for a permit to drill under section 11(d), may be
submitted by any person unless the person certifies to
the Secretary that the person (including any related
person and any predecessor of such person or related
person) meets each of the following requirements:
(A) The person is meeting due diligence,
safety, and environmental requirements on other
leases, easements, and rights-of-way.
(B) In the case of a person that is a
responsible party for a vessel or a facility
from which oil is discharged, for purposes of
section 1002 of the Oil Pollution Act of 1990
(33 U.S.C. 2702), the person has met all of its
obligations under that Act to provide
compensation for covered removal costs and
damages.
(C) In the 7-year period ending on the date
of certification, the person, in connection
with activities in the oil industry (including
exploration, development, production,
transportation by pipeline, and refining)--
(i) was not found to have committed
willful or repeated violations under
the Occupational Safety and Health Act
of 1970 (29 U.S.C. 651 et seq.)
(including State plans approved under
section 18(c) of such Act (29 U.S.C.
667(c))) at a rate that is higher than
five times the rate determined by the
Secretary to be the oil industry
average for such violations for such
period;
(ii) was not convicted of a criminal
violation for death or serious bodily
injury;
(iii) did not have more than 10
fatalities at its exploration,
development, and production facilities
and refineries as a result of
violations of Federal or State health,
safety, or environmental laws;
(iv) was not assessed, did not enter
into an agreement to pay, and was not
otherwise required to pay, civil
penalties and criminal fines for
violations the person was found to have
committed under the Federal Water
Pollution Control Act (33 U.S.C. 1251
et seq.) (including State programs
approved under sections 402 and 404 of
such Act (33 U.S.C. 1342 and 1344)) in
a total amount that is equal to more
than $10,000,000; and
(v) was not assessed, did not enter
into an agreement to pay, and was not
otherwise required to pay, civil
penalties and criminal fines for
violations the person was found to have
committed under the Clean Air Act (42
U.S.C. 7401 et seq.) (including State
plans approved under section 110 of
such Act (42 U.S.C. 7410)) in a total
amount that is equal to more than
$10,000,000.
(2) Enforcement.--If the Secretary determines that a
certification made under paragraph (1) is false, the
Secretary shall cancel any lease, easement, or right of
way and shall revoke any permit with respect to which
the certification was required under such paragraph.
(3) Definition of related person.--For purposes of
this subsection, the term ``related person'' includes a
parent, subsidiary, affiliate, member of the same
controlled group, contractor, subcontractor, a person
holding a controlling interest or in which a
controlling interest is held, and a person with
substantially the same board members, senior officers,
or investors.
* * * * * * *
(i) In order to [meet the urgent need] allow 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.
* * * * * * *
(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.), or the Ocean Thermal Energy Conversion Act of
1980 (42 U.S.C. 9101 et seq.), [or other applicable
law,] if those activities--
(A) * * *
* * * * * * *
[(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.]
(D) use, for energy-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.
* * * * * * *
[(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.]
(3) Competitive or noncompetitive basis.--Any lease,
easement, right-of-way, or other authorization granted
under paragraph (1) shall be issued on a competitive
basis, unless--
(A) the lease, easement, right-of-way, or
other authorization relates to a project that
meets the criteria established under section
388(d) of the Energy Policy Act of 2005 (43
U.S.C. 1337 note; Public Law 109-58);
(B) the lease, easement, right-of-way, or
other authorization--
(i) is for the placement and
operation of a meteorological or marine
data collection facility; and
(ii) has a term of not more than 5
years; or
(C) the Secretary determines, after providing
public notice of a proposed lease, easement,
right-of-way, or other authorization, that no
competitive interest exists.
(4) Requirements.--The Secretary shall ensure that
any activity under this subsection is carried out in a
manner that provides for--
(A) * * *
* * * * * * *
(E) [coordination] in consultation with
relevant Federal agencies;
* * * * * * *
(J) consideration of--
(i) * * *
(ii) any other use of the sea or
seabed, including use for a fishery, a
sealane, a potential site of a
deepwater port, a potential site for an
alternative energy facility, or
navigation;
* * * * * * *
(q) Review of Bond and Surety Amounts.--Not later than May 1,
2011, and every 5 years thereafter, the Secretary shall review
the minimum financial responsibility requirements for leases
issued under this section and shall ensure that any bonds or
surety required are adequate to comply with the requirements of
this Act or the Oil Pollution Act of 1990 (33 U.S.C. 2701 et
seq.).
(r) Periodic Fiscal Review and Report.--
(1) In general.--Not later than 1 year after the date
of enactment of this subsection and every 3 years
thereafter, the Secretary shall carry out a review and
prepare a report setting forth--
(A)(i) the royalty and rental rates included
in new offshore oil and gas leases; and
(ii) the rationale for the rates;
(B) whether, in the view of the Secretary,
the royalty and rental rates described in
subparagraph (A) will yield a fair return to
the public while promoting the production of
oil and gas resources in a timely manner;
(C)(i) the minimum bond or surety amounts
required pursuant to offshore oil and gas
leases; and
(ii) the rationale for the minimum amounts;
(D) whether the bond or surety amounts
described in subparagraph (C) are adequate to
comply with subsection (q); and
(E) whether the Secretary intends to modify
the royalty or rental rates, or bond or surety
amounts, based on the review.
(2) Public participation.--In carrying out a review
and preparing a report under paragraph (1), the
Secretary shall provide to the public an opportunity to
participate.
(3) Report deadline.--Not later than 30 days after
the date on which the Secretary completes a report
under paragraph (1), the Secretary shall transmit
copies of the report to--
(A) the Committee on Energy and Natural
Resources of the Senate; and
(B) the Committee on Natural Resources of the
House of Representatives.
(s) Comparative Review of Fiscal System.--
(1) In general.--Not later than 2 years after the
date of enactment of this subsection and every 5 years
thereafter, the Secretary shall carry out a
comprehensive review of all components of the Federal
offshore oil and gas fiscal system, including
requirements for--
(A) bonus bids;
(B) rental rates;
(C) royalties; and
(D) oil and gas taxes.
(2) Requirements.--
(A) Contents; scope.--A review under
paragraph (1) shall include--
(i) the information and analyses
necessary to compare the offshore bonus
bids, rents, royalties, and taxes of
the Federal Government to the offshore
bonus bids, rents, royalties, and taxes
of other resource owners, including
States and foreign countries; and
(ii) an assessment of the overall
offshore oil and gas fiscal system in
the United States, as compared to
foreign countries.
(B) Independent advisory committee.--In
carrying out a review under paragraph (1), the
Secretary shall convene and seek the advice of
an independent advisory committee comprised of
oil and gas and fiscal experts from States,
Indian tribes, academia, the energy industry,
and appropriate nongovernmental organizations.
(3) Report.--
(A) In general.--The Secretary shall prepare
a report that contains--
(i) the contents and results of the
review carried out under paragraph (1)
for the period covered by the report;
and
(ii) any recommendations of the
Secretary based on the contents and
results of the review.
(B) Report deadline.--Not later than 30 days
after the date on which the Secretary completes
a report under paragraph (1), the Secretary
shall transmit copies of the report to the
Committee on Natural Resources of the House of
Representatives and the Committee on Energy and
Natural Resources of the Senate.
[Sec. 9. Disposition of Revenues.--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.]
SEC. 9. DISPOSITION OF REVENUES.
(a) General.--Except as provided in subsections (b), (c), and
(d), 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) Land and Water Conservation Fund.--Effective for fiscal
year 2011 and each fiscal year thereafter, $900,000,000 of the
amounts referred to in subsection (a) shall be deposited in the
Treasury of the United States and credited to the Land and
Water Conservation Fund. These sums shall be available to the
Secretary, without further appropriation or fiscal year
limitation, for carrying out the purposes of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.).
(c) Historic Preservation Fund.--Effective for fiscal year
2011 and each fiscal year thereafter, $150,000,000 of the
amounts referred to in subsection (a) shall be deposited in the
Treasury of the United States and credited to the Historic
Preservation Fund. These sums shall be available to the
Secretary, without further appropriation or fiscal year
limitation, for carrying out the purposes of the National
Historic Preservation Fund Act of 1966 (16 U.S.C. 470 et seq.).
(d) Ocean Resources Conservation and Assistance Fund.--
Effective for each fiscal year 2011 and thereafter, 10 percent
of the amounts referred to in subsection (a) shall be deposited
in the Treasury of the United States and credited to the Ocean
Resources Conservation and Assistance Fund established by the
Consolidated Land, Energy, and Aquatic Resources Act of 2010.
These sums shall be available to the Secretary, without further
appropriation or fiscal year limitation, for carrying out the
purposes of section 605 of the Consolidated Land, Energy, and
Aquatic Resources Act of 2010.
(e) Savings Provision.--Nothing in this section shall
decrease the amount any State shall receive pursuant to section
8(g) of this Act or section 105 of the Gulf of Mexico Energy
Security Act (43 U.S.C. 1331 note).
* * * * * * *
Sec. 11. Geological and Geophysical Explorations.--(a)(1) Any
agency of the United States and any person authorized by the
Secretary may conduct geological and geophysical explorations
in the outer Continental Shelf, which do not interfere with or
endanger actual operations under any lease maintained or
granted pursuant to this Act, and which are not [unduly harmful
to] likely to harm aquatic life in such area.
* * * * * * *
(c)(1)(A) Except as otherwise provided in the Act, prior to
commencing exploration pursuant to any oil and gas lease issued
or maintained under this Act, the holder thereof shall submit
an exploration plan to the Secretary for approval. Such plan
may apply to more than one lease held by a lessee in any one
region of the outer Continental Shelf, or by a group of lessees
acting under a unitization, pooling, or drilling agreement, and
shall be approved by the Secretary if he finds that such plan
is consistent with the provisions of this Act, regulations
prescribed under this Act, including regulations prescribed by
the Secretary pursuant to paragraph (8) of section 5(a) of this
Act, [and the provisions of such lease] the provisions of such
lease, and other applicable environmental and natural resource
conservation laws. The Secretary shall require such
modifications of such plan as are necessary to achieve such
consistency. [The Secretary shall approve such plan, as
submitted or modified, within thirty days of its submission,
except that the Secretary shall disapprove such plan if he
determines that (A) any proposed activity under such plan would
result in any condition described in section 5(a)(2)(A)(i) of
this Act, and (B) such proposed activity cannot be modified to
avoid such condition]
(B) The Secretary shall approve such plan, as submitted or
modified, within 90 days after its submission and it is made
publicly accessible by the Secretary, or within such additional
time as the Secretary determines is necessary to complete any
environmental, safety, or other reviews, if the Secretary
determines that--
(i) any proposed activity under such plan is not
likely to result in any condition described in section
5(a)(2)(A)(i);
(ii) the plan complies with other applicable
environmental or natural resource conservation laws;
and
(iii) the applicant has demonstrated the capability
and technology to respond immediately and effectively
to a worst-case oil spill in real-world conditions in
the area of the proposed activity. If the Secretary
disapproves a plan under the preceding sentence, he
may, subject to section 5(a)(2)(B) of this Act, cancel
such lease and the lessee shall be entitled to
compensation in accordance with the regulations
prescribed under section 5(a)(2)(C) (i) or (ii) of this
Act.
* * * * * * *
[(3) An exploration plan submitted under this subsection
shall include, in the degree of detail which the Secretary may
by regulation require--
[(A) a schedule of anticipated exploration activities
to be undertaken;
[(B) a description of equipment to be used for such
activities;
[(C) the general location of each well to be drilled;
and
[(D) such other information deemed pertinent by the
Secretary.]
(3) An exploration plan submitted under this subsection shall
include, in the degree of detail that the Secretary may by
regulation require--
(A) a schedule of anticipated exploration activities
to be undertaken;
(B) a detailed and accurate description of equipment
to be used for such activities, including--
(i) a description of each drilling unit;
(ii) a statement of the design and condition
of major safety-related pieces of equipment,
including independent third party certification
of such equipment; and
(iii) a description of any new technology to
be used;
(C) a map showing the location of each well to be
drilled;
(D) a scenario for the potential blowout of the well
involving the highest potential volume of liquid
hydrocarbons, along with a complete description of a
response plan to both control the blowout and manage
the accompanying discharge of hydrocarbons, including
the likelihood for surface intervention to stop the
blowout, the availability of a rig to drill a relief
well, an estimate of the time it would take to drill a
relief well, a description of other technology that may
be used to regain control of the well or capture
escaping hydrocarbons and the potential timeline for
using that technology for its intended purpose, and the
strategy, organization, and resources necessary to
avoid harm to the environment and human health from
hydrocarbons;
(E) an analysis of the potential impacts of the
worst-case-scenario discharge of hydrocarbons on the
marine, coastal, and human environments for activities
conducted pursuant to the proposed exploration plan;
and
(F) such other information deemed pertinent by the
Secretary.
* * * * * * *
(5) If the Secretary requires greater than 90 days to review
an exploration plan submitted pursuant to any oil and gas lease
issued or maintained under this Act, then the Secretary may
provide for a suspension of that lease pursuant to section 5
until the review of the exploration plan is completed.
[(d) The Secretary may, by regulation, require any lessee
operating under an approved exploration plan to obtain a permit
prior to drilling any well in accordance with such plan.]
(d) Drilling Permits.--
(1) In general.--The Secretary shall, by regulation,
require that any lessee operating under an approved
exploration plan obtain a permit prior to drilling any
well in accordance with such plan, and prior to any
significant modification of the well design as
originally approved by the Secretary.
(2) Engineering review required.--The Secretary may
not grant any drilling permit or modification of the
permit prior to completion of a full engineering review
of the well system, including a determination that
critical safety systems, including blowout prevention,
will utilize best available technology and that blowout
prevention systems will include redundancy and remote
triggering capability.
(3) Operator safety and environmental management
required.--The Secretary shall not grant any drilling
permit or modification of the permit prior to
completion of a safety and environmental management
plan to be utilized by the operator during all well
operations.
* * * * * * *
(g) Any permit for geological explorations authorized by this
section [shall be issued] may be issued only if the Secretary
determines, in accordance with regulations issued by the
Secretary and after consultation with the Secretary of
Commerce, that--
(1) * * *
(2) the exploration will not interfere with or
endanger operations under any lease issued or
maintained pursuant to this Act; [and]
(3) such exploration [will not be unduly harmful to]
is not likely to harm aquatic life in the area, result
in pollution, create hazardous or unsafe conditions,
unreasonably interfere with other uses of the area, or
disturb any site, structure, or object of historical or
archeological significance[.];
(4) the exploration will be conducted in accordance
with other applicable environmental and natural
resource conservation laws;
(5) in the case of geophysical surveys, the applicant
shall use the best available technologies and methods
to minimize impacts on marine life; and
(6) in the case of drilling operations, the applicant
has available oil spill response and clean-up equipment
and technology that has been demonstrated to be capable
of effectively remediating a worst-case release of oil.
* * * * * * *
(i) Environmental Review of Plans.--The Secretary shall treat
the approval of an exploration plan, or a significant revision
of such a plan, as an agency action requiring preparation of an
environmental assessment or environmental impact statement in
accordance with the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.), and shall require that such plan--
(1) be based on the best available technology to
ensure safety in carrying out both the drilling of the
well and any oil spill response; and
(2) contain a technical systems analysis of the
safety of the proposed activity, the blowout prevention
technology, and the blowout and spill response plans.
(j) Disapproval of Plan.--
(1) In general.--The Secretary shall disapprove the
plan if the Secretary determines, because of
exceptional geological conditions in the lease areas,
exceptional resource values in the marine or coastal
environment, or other exceptional circumstances, that--
(A) implementation of the plan would probably
cause serious harm or damage to life (including
fish and other aquatic life), to property, to
any mineral deposits (in areas leased or not
leased), to the national security or defense,
or to the marine, coastal, or human
environments;
(B) the threat of harm or damage will not
disappear or decrease to an acceptable extent
within a reasonable period of time; and
(C) the advantages of disapproving the plan
outweigh the advantages of exploration.
(2) Cancellation of lease for disapproval of plan.--
If a plan is disapproved under this subsection, the
Secretary may cancel such lease in accordance with
subsection (c)(1) of this section.
* * * * * * *
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]
balance national energy needs and the protection of the marine
and coastal environment and all the resources in that
environment, 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] gives equal
consideration to 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] the best available scientific
information, including at least three
consecutive years of data concerning the
geographical, geological, and ecological
characteristics of such regions;
* * * * * * *
(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,
potential and existing sites of renewable
energy installations, and other anticipated
uses of the resources and space of the outer
Continental Shelf;
* * * * * * *
(H) relevant environmental and predictive
information for different areas of the outer
Continental Shelf including the availability of
infrastructure to support oil spill response.
(3) The Secretary shall select the timing and
location of leasing, [to the maximum extent
practicable,] so as to [obtain a proper balance
between] minimize the potential for environmental
[damage, the potential for the discovery of oil and
gas, and the potential for adverse impact on the
coastal zone.] damage and adverse impacts on the
marine, coastal, and human environments, and enhancing
the potential for the discovery of oil and gas.
* * * * * * *
(b) The leasing program shall include estimates of the
appropriations and staff required to--
(1) obtain environmental, marine, and energy resource
information and any other information needed to prepare
the leasing program required by this section;
(2) analyze and interpret the environmental, marine,
and 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[.];
(5) provide technical review and oversight of
exploration plans and a systems review of the safety of
well designs and other operational decisions;
(6) conduct regular and thorough safety reviews and
inspections; and
(7) enforce all applicable laws and regulations.
(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 National Oceanic and Atmospheric
Administration and 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
Secretary shall also submit a copy of such proposed program to
the head of each Federal agency referred to in, or that
otherwise provided suggestions under, paragraph (1). 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 or head of a Federal agency 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, or between the Secretary and the head of a
Federal agency, together with any additional information and
data relating thereto, shall accompany such proposed program
when it is submitted to the Congress.
* * * * * * *
(d)(1) * * *
(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, the head of a Federal agency, or a State or local
government was not accepted.
* * * * * * *
(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. Such information
may include existing inventories and mapping of marine
resources previously undertaken by the Department of the
Interior and the National Oceanic and Atmospheric
Administration, information provided by the Department of
Defense, and other available data regarding energy or mineral
resource potential, navigation uses, fisheries, aquaculture
uses, recreational uses, habitat, conservation, and military
uses on the outer Continental Shelf. 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.
* * * * * * *
(i) Research and Development.--The Secretary shall carry out
a program of research and development to ensure the continued
improvement of methodologies for characterizing resources of
the outer Continental Shelf and conditions that may affect the
ability to develop and use those resources in a safe, sound,
and environmentally responsible manner. Such research and
development activities may include activities to provide
accurate estimates of energy and mineral reserves and potential
on the Outer Continental Shelf and any activities that may
assist in filling gaps in environmental data needed to develop
each leasing program under this section.
* * * * * * *
[Sec. 20. Environmental Studies.--(a)(1) The Secretary shall
conduct a study of any area or region included in any oil and
gas lease sale or other lease in order to establish information
needed for assessment and management of environmental impacts
on the human, marine, and coastal environments of the outer
Continental Shelf and the coastal areas which may be affected
by oil and gas or other mineral development in such area or
region.]
SEC. 20. ENVIRONMENTAL STUDIES.
(a)(1) The Secretary, in cooperation with the Secretary of
Commerce, shall conduct a study no less than once every three
years of any area or region included in any oil and gas lease
sale or other lease in order to establish information needed
for assessment and management of environmental impacts on the
human, marine, and coastal environments of the outer
Continental Shelf and the coastal areas which may be affected
by oil and gas or other mineral development in such area or
region.
* * * * * * *
(c) The Secretary shall conduct research to identify and
reduce data gaps related to impacts of deepwater hydrocarbon
spills, including--
(1) effects to benthic substrate communities and
species;
(2) water column habitats and species;
(3) surface and coastal impacts from spills
originating in deep waters; and
(4) the use of dispersants.
[(c)] (d) The Secretary shall, by regulation, establish
procedures for carrying out his duties under this section, and
shall plan and carry out such duties in full cooperation with
affected States. To the extent that other Federal agencies have
prepared environmental impact statements, are conducting
studies, or are monitoring the affected human, marine, or
coastal environment, the Secretary may utilize the information
derived therefrom in lieu of directly conducting such
activities. The Secretary may also utilize information obtained
from any State of local government, or from any person, for the
purposes of this section. For the purpose of carrying out his
responsibilities under this section, the Secretary may by
agreement utilize, with or without reimbursement, the services,
personnel, or facilities of any Federal, State, or local
government agency.
[(d)] (e) The Secretary shall consider available relevant
environmental information in making decisions (including those
relating to exploration plans, drilling permits, and
development and production plans), in developing appropriate
regulations and lease conditions, and in issuing operating
orders.
[(e)] (f) As soon as practicable after the end of every 3
fiscal years, the Secretary shall submit to the Congress and
make available to the general public an assessment of the
cumulative effect of activities conducted under this Act on the
human, marine, and coastal environments.
[(f)] (g) In executing his responsibilities under this
section, the Secretary shall, to the maximum extent
practicable, enter into appropriate arrangements to utilize on
a reimbursable basis the capabilities of the Department of
Commerce. In carrying out such arrangements, the Secretary of
Commerce is authorized to enter into contract or grants with
any person, organization, or entity with funds appropriated to
the Secretary of the Interior pursuant to this Act.
Sec. 21. Safety Regulations.--(a) [Upon the date of enactment
of this section,] Within 6 months after the date of enactment
of the Outer Continental Shelf Lands Act Amendments of 2010 and
every three years thereafter, the Secretary and the Secretary
of the Department in which the Coast Guard is operating shall,
in consultation with each other and, as appropriate, with the
heads of other Federal departments and agencies, promptly
commence a joint study of the adequacy of existing safety and
health regulations and of the technology, equipment, and
techniques available for the exploration, development, and
production of the minerals of the outer Continental Shelf. The
results of such study shall be submitted to the President who
shall submit a plan to the Congress of his proposals to promote
safety and health in the exploration, development, and
production of the minerals of the outer Continental Shelf.
(b) In exercising their respective responsibilities [for the
artificial islands, installations, and other devices referred
to in section 4(a)(1) of] under this Act, the Secretary, and
the Secretary of the Department in which the Coast Guard is
operating, shall require, on all new drilling and production
operations and, wherever practicable, on existing operations,
the use of the best available and safest technologies [which
the Secretary determines to be economically feasible], wherever
failure of equipment would have a significant effect on safety,
health, or the environment, except where the Secretary
determines that the incremental benefits are clearly
insufficient to justify the incremental costs of utilizing such
technologies. Not later than 6 months after the date of
enactment of the Outer Continental Shelf Lands Act Amendments
of 2010 and every 3 years thereafter, the Secretary shall, in
consultation with the Outer Continental Shelf Safety and
Environmental Advisory Board established under title I of the
Consolidated Land, Energy, and Aquatic Resources Act of 2010,
identify and publish an updated list of (1) the best available
technologies for key areas of well design and operation,
including blowout prevention and blowout and oil spill response
and (2) technology needs for which the Secretary intends to
identify best available technologies in the future.
* * * * * * *
(g) Safety Case.--Not later than 6 months after the date of
enactment of the Outer Continental Shelf Lands Act Amendments
of 2010, the Secretary shall promulgate regulations requiring a
safety case be submitted along with each new application for a
permit to drill on the outer Continental Shelf. Not later than
5 years after the date final regulations promulgated under this
subsection go into effect, and not less than every 5 years
thereafter, the Secretary shall enter into an arrangement with
the National Academy of Engineering to conduct a study to
assess the effectiveness of these regulations and to recommend
improvements in their administration.
(h) Offshore Technology Research and Risk Assessment
Program.--
(1) In general.--The Secretary shall carry out a
program of research, development, and risk assessment
to address technology and development issues associated
with exploration for, and development and production
of, energy and mineral resources on the outer
Continental Shelf, with the primary purpose of
informing its role relating to safety, environmental
protection, and spill response.
(2) Specific focus areas.--The program under this
subsection shall include research and development
related to--
(A) risk assessment, using all available data
from safety and compliance records both within
the United States and internationally;
(B) analysis of industry trends in
technology, investment, and frontier areas;
(C) reviews of best available technologies,
including those associated with pipelines,
blowout preventer mechanisms, casing, well
design, and other associated infrastructure
related to offshore energy development;
(D) oil spill response and mitigation;
(E) risk associated with human factors;
(F) technologies and methods to reduce the
impact of geophysical exploration activities on
marine life; and
(G) renewable energy operations.
Sec. 22. Enforcement.--(a) * * *
(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]
uncontrolled 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;
* * * * * * *
[(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.]
(c) Inspections.--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;
(2) scheduled onsite inspection, at least once a
month, of each facility on the outer Continental Shelf
engaged in drilling operations and 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;
(3) periodic onsite inspection without advance notice
to the operator of such facility to assure compliance
with such environmental or safety regulations; and
(4) periodic audits of each required safety and
environmental management plan, and any associated
safety case, both with respect to their implementation
at each facility on the outer Continental Shelf for
which such a plan or safety case is required and with
respect to onshore management support for activities at
such a facility.
(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] each major fire, each major oil spillage, each loss
of well control, and any other accident that presented a
serious risk to human or environmental safety 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, as a condition of the lease
or permit.
(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 as a condition of the
lease or permit.
(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. Any such allegation from any employee of the
lessee or any subcontractor of the lessee shall be investigated
by the Secretary.
* * * * * * *
(g) Information on Causes and Corrective Actions.--For any
incident investigated under this section, the Secretary shall
promptly make available to all lessees and the public technical
information about the causes and corrective actions taken. All
data and reports related to any such incident shall be
maintained in a data base available to the public.
(h) Operator's Annual Certification.--
(1) The Secretary, in cooperation with the Secretary
of the department in which the Coast Guard is
operating, shall require all operators of all new and
existing drilling and production operations to annually
certify that their operations are being conducted in
accordance with applicable law and regulations.
(2) Each certification shall include, but, not be
limited to, statements that verify the operator has--
(A) examined all well control system
equipment (both surface and subsea) being used
to ensure that it has been properly maintained
and is capable of shutting in the well during
emergency operations;
(B) examined and conducted tests to ensure
that the emergency equipment has been function-
tested and is capable of addressing emergency
situations;
(C) reviewed all rig drilling, casing,
cementing, well abandonment (temporary and
permanent), completion, and workover practices
to ensure that well control is not compromised
at any point while emergency equipment is
installed on the wellhead;
(D) reviewed all emergency shutdown and
dynamic positioning procedures that interface
with emergency well control operations; and
(E) taken the necessary steps to ensure that
all personnel involved in well operations are
properly trained and capable of performing
their tasks under both normal drilling and
emergency well control operations.
(i) CEO Annual Certification.--Operators of all drilling and
production operations shall annually submit to the Secretary a
general statement by the operator's chief executive officer
that certifies to the operators' compliance with all applicable
laws and operating regulations.
(j) Third Party Certification.--All operators that modify or
upgrade any emergency equipment placed on any operation to
prevent blow-outs or other well control events, shall have an
independent third party conduct a detailed physical inspection
and design review of such equipment within 30-days of its
installation. The independent third party shall certify that
the equipment will operate as originally designed and any
modifications or upgrades conducted after delivery have not
compromised the design, performance or functionality of the
equipment. Failure to comply with this subsection shall result
in suspension of the lease.
Sec. 23. Citizen Suits, Court Jurisdiction, and Judicial
Review.--(a) * * *
* * * * * * *
(c)(1) * * *
* * * * * * *
(3) The judicial review specified in paragraphs (1) and (2)
of this subsection shall be available only to a person who (A)
participated in the administrative proceedings related to the
actions specified in such paragraphs, (B) is adversely affected
or aggrieved by such action, (C) files a petition for review of
the Secretary's action within [sixty] 90 days after the date of
such action, and (D) promptly transmits copies of the petition
to the Secretary and to the Attorney General.
* * * * * * *
Sec. 24. Remedies and Penalties.--(a) * * *
[(b)(1) Except as provided in paragraph (2), if any person
fails to comply with any provision of this Act, or any term of
a lease, or permit issued pursuant to this Act, or any
regulation or order issued under this Act, after notice of such
failure and expiration of any reasonable period allowed for
corrective action, such person shall be liable for a civil
penalty of not more than $20,000 for each day of the
continuance of such failure. The Secretary may assess, collect,
and compromise any such penalty. No penalty shall be assessed
until the person charged with a violation has been given an
opportunity for a hearing. The Secretary shall, by regulation
at least every 3 years, adjust the penalty specified in this
paragraph to reflect any increases in the Consumer Price Index
(all items, United States city average) as prepared by the
Department of Labor.
[(2) If a failure described in paragraph (1) constitutes or
constituted a threat of serious, irreparable, or immediate harm
or damage to life (including fish and other aquatic life),
property, any mineral deposit, or the marine, coastal, or human
environment, a civil penalty may be assessed without regard to
the requirement of expiration of a period allowed for
corrective action.]
(b)(1) Except as provided in paragraph (2), any person who
fails to comply with any provision of this Act, or any term of
a lease, license, or permit issued pursuant to this Act, or any
regulation or order issued under this Act, shall be liable for
a civil administrative penalty of not more than $75,000 for
each day of the continuance of such failure. The Secretary may
assess, collect, and compromise any such penalty. No penalty
shall be assessed until the person charged with a violation has
been given an opportunity for a hearing. The Secretary shall,
by regulation at least every 3 years, adjust the penalty
specified in this paragraph to reflect any increases in the
Consumer Price Index (all items, United States city average) as
prepared by the Department of Labor.
(2) If a failure described in paragraph (1) constitutes or
constituted a threat of harm or damage to life (including fish
and other aquatic life), property, any mineral deposit, or the
marine, coastal, or human environment, a civil penalty of not
more than $150,000 shall be assessed for each day of the
continuance of the failure.
(c) Any person who knowingly and willfully (1) violates any
provision of this Act, any term of a lease, license, or permit
issued pursuant to this Act, or any regulations or order issued
under the authority of this Act designed to protect health,
safety, or the environment or conserve natural resources, (2)
makes any false statement, representation, or certification in
any application, record, report, or other document filed or
required to be maintained under this Act, (3) falsifies,
tampers with, or renders inaccurate any monitoring device or
method of record required to be maintained under this Act, or
(4) reveals any data or information required to be kept
confidential by this Act shall, upon conviction, be punished by
a fine of not more than [$100,000] $10,000,000, or by
imprisonment for not more than ten years, or both. Each day
that a violation under clause (1) of this subsection continues,
or each day that any monitoring devise or data recorder remains
inoperative or inaccurate because of any activity described in
clause (3) of this subsection, shall constitute a separate
violation.
(d) Whenever a corporation or other entity is subject to
prosecution under subsection (c) of this section, any officer
or agent of such corporation or entity who knowingly and
willfully, or with willful disregard, authorized, ordered, or
carried out the proscribed activity shall be subject to the
same fines or imprisonment, or both, as provided for under
subsection (c) of this section.
* * * * * * *
Sec. 25. Oil and Gas Development and Production.--(a)(1)
Prior to development and production pursuant to an oil and gas
lease issued after the date of enactment of this section in any
area of the outer Continental Shelf, [other than the Gulf of
Mexico,] or issued or maintained prior to such date of
enactment in any area of the outer Continental Shelf, [other
than the Gulf of Mexico,] with respect to which no oil or gas
has been discovered in paying quantities prior to such date of
enactment, the lessee shall submit a development and production
plan (hereinafter in this section referred to as a ``plan'') to
the Secretary, for approval pursuant to this section.
* * * * * * *
(b) After the date of enactment of this section, no oil and
gas lease may be issued pursuant to this Act in any region of
the outer Continental Shelf, [other than the Gulf of Mexico,]
unless such lease requires that development and production
activities be carried out in accordance with a plan which
complies with the requirements of this section.
(c) A plan may apply to more than one oil and gas lease, and
shall set forth, in the degree of detail established by
regulations issued by the Secretary--
(1) * * *
* * * * * * *
(5) an expected rate of development and production
and a time schedule for performance; [and]
(6) a detailed and accurate description of equipment
to be used for the drilling of wells pursuant to
activities included in the development and production
plan, including--
(A) a description of the drilling unit or
units;
(B) a statement of the design and condition
of major safety-related pieces of equipment,
including independent third-party certification
of such equipment; and
(C) a description of any new technology to be
used;
(7) a scenario for the potential blowout of each well
to be drilled as part of the plan involving the highest
potential volume of liquid hydrocarbons, along with a
complete description of a response plan to both control
the blowout and manage the accompanying discharge of
hydrocarbons, including the likelihood for surface
intervention to stop the blowout, the availability of a
rig to drill a relief well, an estimate of the time it
would take to drill a relief well, a description of
other technology that may be used to regain control of
the well or capture escaping hydrocarbons and the
potential timeline for using that technology for its
intended purpose, and the strategy, organization, and
resources necessary to avoid harm to the environment
and human health from hydrocarbons;
(8) an analysis of the potential impacts of the
worst-case-scenario discharge on the marine, coastal,
and human environments for activities conducted
pursuant to the proposed development and production
plan;
(9) a comprehensive survey and characterization of
the coastal or marine environment within the area of
operation, including bathymetry, currents and
circulation patterns within the water column, and
descriptions of benthic and pelagic environments;
(10) a description of the technologies to be deployed
on the facilities to routinely observe and monitor in
real time the marine environment throughout the
duration of operations, and a description of the
process by which such observation data and information
will be made available to Federal regulators and to the
System established under section 12304 of Public Law
111-11 (33 U.S.C. 3603); and
[(6)] (11) such other relevant information as the
Secretary may by regulation require.
* * * * * * *
[(e)(1) At least once the Secretary shall declare the
approval of a development and production plan in any area or
region (as defined by the Secretary) of the outer Continental
Shelf, to be a major Federal action.]
(e)(1) The Secretary shall treat the approval of a
development and production plan, or a significant revision of a
development and production plan, as an agency action requiring
preparation of an environmental assessment or environmental
impact statement, in accordance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
* * * * * * *
[(g) If approval of a development and production plan is not
found to be a major Federal action, the Governor of any
affected State and the executive of any affected local
government shall have sixty days from the date of receipt of
the plan from the Secretary to submit comments and
recommendations. Prior to submitting recommendations to the
Secretary, the executive of any affected local government must
forward his recommendations to the Governor of his State. Such
comments and recommendations shall be made available to the
public upon request. In addition, any interested person may
submit comments and recommendations.]
[(h)] (g)(1) After reviewing the record of any public hearing
held with respect to the approval of a plan pursuant to the
National Environmental Policy Act of 1969 or the comments and
recommendations submitted under subsection (g) of this section,
the Secretary shall, within sixty days after the release of the
final environmental impact statement prepared pursuant to the
National Environmental Policy Act of 1969 in accordance with
subsection (e) of this section, or sixty days after the period
provided for comment under subsection (g) of this section,
approve, disapprove, or require modifications of the plan. The
Secretary shall require modification of a plan if he determines
that the lessee has failed to make adequate provision in such
plan for safe operations on the lease area or for protection of
the human, marine, or coastal environment, including compliance
with the regulations prescribed by the Secretary pursuant to
[paragraph (8) of section 5(a) of this Act] paragraph (12) of
section 5(a) of this Act. Any modification required by the
Secretary which involves activities for which a Federal license
or permit is required and which affects any land use or water
use in the coastal zone of a State with a coastal zone
management program approved pursuant to section 306 of the
Coastal Zone Management Act of 1972 (16 U.S.C. 1455) must
receive concurrence by such State with respect to the
consistency certification accompanying such plan pursuant to
section 307(c)(3)(B) (i) or (ii) of such Act unless the
Secretary of Commerce makes the finding authorized by section
307(c)(3)(B)(iii) of such Act. The Secretary shall disapprove a
plan--
(A) if the lessee fails to demonstrate that he can
comply with the requirements of this Act or other
applicable Federal law, including the regulations
prescribed by the Secretary pursuant to [paragraph (8)
of section 5(a) of this Act] paragraph (12) of section
5(a) of this Act;
* * * * * * *
(2) The Secretary shall not approve a development and
production plan, or a significant revision to such a plan,
unless-
(A) the plan is in compliance with all other
applicable environmental and natural resource
conservation laws; and
(B) the applicant has available oil spill response
and clean-up equipment and technology that has been
demonstrated to be capable of effectively remediating
the projected worst-case release of oil from activities
conducted pursuant to the development and production
plan.
[(2)] (3)(A) * * *
* * * * * * *
[(3)] (4) The Secretary shall, from time to time, review each
plan approved under this section. Such review shall be based
upon changes in available information and other onshore or
offshore conditions affecting or impacted by development and
production pursuant to such plan. If the review indicates that
the plan should be revised to meet the requirements of this
subsection, the Secretary shall require such revision.
[(i)] (h) The Secretary may approve any revision of an
approved plan proposed by the lessee if he determines that such
revision will lead to greater recovery of oil and natural gas,
improve the efficiency, safety and environmental protection of
the recovery operation, is the only means available to avoid
substantial economic hardship to the lessee, or is otherwise
not inconsistent with the provisions of this Act, to the extent
such revision is consistent with protection of the human,
marine, and coastal environments. Any revision of an approved
plan which the Secretary determines is significant shall be
reviewed in accordance with subsections (d) through (f) of this
section.
[(j)] (i) Whenever the owner of any lease fails to submit a
plan in accordance with regulations issued under this section,
or fails to comply with an approved plan, the lease may be
canceled in accordance with sections 5 (c) and (d). Termination
of a lease because of failure to comply with an approved plan,
including required modifications or revisions, shall not
entitle a lessee to any compensation.
[(k)] (j) If any development and production plan submitted to
the Secretary pursuant to this section provides for the
production and transportation of natural gas, the lessee shall
contemporaneously submit to the Federal Energy Regulatory
Commission that portion of such plan which relates to
production of natural gas and the facilities for transportation
of natural gas. The Secretary and the Federal Energy Regulatory
Commission shall agree as to which of them shall prepare an
environmental impact statement pursuant to the National
Environmental Policy Act of 1969 applicable to such portion of
such plan, or conduct studies as to the effect on the
environment of implementing it. Thereafter, the findings and
recommendations by the agency preparing such environmental
impact statement or conducting such studies pursuant to such
agreement shall be adopted by the other agency, and such other
agency shall not independently prepare another environmental
impact statement or duplicate such studies with respect to such
portion of such plan, but the Federal Energy Regulatory
Commission, in connection with its review of an application for
a certificate of public convenience and necessity applicable to
such transportation facilities pursuant to section 7 of the
Natural Gas Act (15 U.S.C. 717), may prepare such environmental
studies or statement relevant to certification of such
transportation facilities as have not been covered by an
environmental impact statement or studies prepared by the
Secretary. The Secretary, in consultation with the Federal
Energy Regulatory Commission, shall promulgate rules to
implement this subsection, but the Federal Energy Regulatory
Commission shall retain sole authority with respect to rules
and procedures applicable to the filing of any application with
the Commission and to all aspects of the Commission's review
of, and action on, any such application.
[(l) The Secretary may require the provisions of this section
to apply to an oil and gas lease issued or maintained under
this Act, which is located in that area of the Gulf of Mexico
which is adjacent to the State of Florida, as determined
pursuant to section 4(a)(2) of this Act.]
Sec. 26. Outer Continental Shelf Oil and Gas Information
Program.--(a)(1)(A) Any lessee or permittee conducting any
exploration for, or development or production of, oil or gas
pursuant to this Act shall provide the Secretary access to all
data and information (including processed, analyzed, and
interpreted information) obtained from such activity and shall
provide copies of such data and information as the Secretary
may request. Such data and information shall be provided in
accordance with regulations which the Secretary shall
prescribed[.], provided that such data shall be transmitted in
electronic format either in real-time or as quickly as
practicable following the generation of such data.
* * * * * * *
[(C) Whenever any data and information is provided to the
Secretary, pursuant to subparagraph (A) of this paragraph--
[(i) by a lessee, in the form and manner of
processing which is utilized by such lessee in the
normal conduct of his business, the Secretary shall pay
the reasonable cost of reproducing such data and
information;
[(ii) by a lessee, in such other form and manner of
processing as the Secretary may request, the Secretary
shall pay the reasonable cost of processing and
reproducing such data and information;
[(iii) by a permittee, in the form and manner of
processing which is utilized by such permittee in the
normal conduct of his business, the Secretary shall pay
such permittee the reasonable cost of reproducing such
data and information for the Secretary and shall pay at
the lowest rate available to any purchaser for
processing such data and information the costs
attributable to such processing; and
[(iv) by the permittee, in such other form and manner
of processing as the Secretary may request, the
Secretary shall pay such permittee the reasonable cost
of processing and reproducing such data and information
for the Secretary,
pursuant to such regulations as he may prescribe.]
(C) Lessees engaged in drilling operations shall provide to
the Secretary all daily reports generated by the lessee, or any
daily reports generated by contractors or subcontractors
engaged in or supporting drilling operations on the lessee's
lease, no more than 24 hours after the end of the day for which
they should have been generated.
* * * * * * *
Sec. 27. Federal Purchase and Disposition of Oil and Gas.--
(a)(1) Except as may be necessary to comply with the provisions
of sections 6 and 7 of this Act, all royalties or net profit
shares, or both accruing to the United States under any oil and
gas lease issued or maintained in accordance with this Act,
shall, on demand of the Secretary, be paid in oil or gas[.],
except that the Secretary shall not conduct a regular program
to take oil and gas lease royalties in oil or gas.
* * * * * * *
[Sec. 29. Restrictions on Employment.--No full-time]
SEC. 29. RESTRICTIONS ON EMPLOYMENT.
(a) In General.--No full-time officer or employee of the
Department of the Interior who directly or indirectly
discharged duties or responsibilities under this Act[, and who
was at any time during the twelve months preceding the
termination of his employment with the Department compensated
under the Executive Schedule or compensated at or above the
annual rate of basic pay for grade GS-16 of the General
Schedule] shall--
(1) within two years after his employment with the
Department has ceased--
(A) knowingly act as agent or attorney for,
or otherwise represent or advise, any other
person (except the United States) in any formal
or informal appearance before;
(B) [with the intent to influence, make] act
with the intent to influence, directly or
indirectly, or make any oral or written
communication on behalf of any other person
(except the United States) to; or
* * * * * * *
any department, agency, or court of the United States,
or any officer or employee thereof, in connection with
any judicial or other proceeding, application, request
for a ruling or other determination, regulation, order,
lease, permit, rulemaking, inspection or enforcement
action, or other particular matter involving a specific
party or parties in which the United States is a party
or has a direct and substantial interest which was
actually pending under his official responsibility as
an officer or employee within a period of one year
prior to the termination of such responsibility or in
which he participated personally and substantially as
an officer or employee; [or]
(2) within one year after his employment with the
Department has ceased--
(A) knowingly act as agent or attorney for,
or otherwise represent or advise, any other
person (except the United States) in any formal
or informal appearance before; or
(B) [with the intent to influence, make] act
with the intent to influence, directly or
indirectly, or make any oral or written
communication on behalf of any other person
(except the United States) to,
the Department of the Interior, or any officer or
employee thereof, in connection with any judicial,
rulemaking, regulation, order, lease, permit,
regulation, or other particular matter which is pending
before the Department of the Interior or in which the
Department has a direct and substantial interest[.]; or
(3) during the 2-year period beginning on the date on
which the employment of the officer or employee ceased
at the Department, accept employment or compensation
from any party that has a direct and substantial
interest--
(A) that was pending under the official
responsibility of the officer or employee as an
officer at any point during the 2-year period
preceding the date of termination of the
responsibility; or
(B) in which the officer or employee
participated personally and substantially as an
officer or employee of the Department.
(b) Prior Dealings.--No full-time officer or employee of the
Department of the Interior who directly or indirectly
discharged duties or responsibilities under this Act shall
participate personally and substantially as a Federal officer
or employee, through decision, approval, disapproval,
recommendation, the rendering of advice, investigation, or
otherwise, in a proceeding, application, request for a ruling
or other determination, contract, claim, controversy, charge,
accusation, inspection, enforcement action, or other particular
matter in which, to the knowledge of the officer or employee--
(1) the officer or employee or the spouse, minor
child, or general partner of the officer or employee
has a financial interest;
(2) any organization in which the officer or employee
is serving as an officer, director, trustee, general
partner, or employee has a financial interest;
(3) any person or organization with whom the officer
or employee is negotiating or has any arrangement
concerning prospective employment has a financial
interest; or
(4) any person or organization in which the officer
or employee has, within the preceding 1-year period,
served as an officer, director, trustee, general
partner, agent, attorney, consultant, contractor, or
employee.
(c) Gifts From Outside Sources.--No full-time officer or
employee of the Department of the Interior who directly or
indirectly discharges duties or responsibilities under this Act
shall, directly or indirectly, solicit or accept any gift in
violation of subpart B of part 2635 of title 5, Code of Federal
Regulations (or successor regulations).
(d) Penalty.--Any person that violates subsection (a) or (b)
shall be punished in accordance with section 216 of title 18,
United States Code.
Sec. 30. Documentation, Registry, and Manning Requirements.--
(a) Within six months after the date of enactment of this
section, the Secretary of the Department in which the Coast
Guard is operating [shall issue regulations which] shall issue
regulations that shall be supplemental to and complementary
with and under no circumstances a substitution for the
provisions of the Constitution and laws of the United States
extended to the subsoil and seabed of the outer Continental
Shelf pursuant to section 4(a)(1) of this Act, except insofar
as such laws would otherwise apply to individuals who have
extraordinary ability in the sciences, arts, education, or
business, which has been demonstrated by sustained national or
international acclaim, and that require that any vessel, rig,
platform, or other vehicle or structure--
(1) * * *
* * * * * * *
(d) Buy and Build American.--It is the intention of the
Congress that this Act, among other things, result in a healthy
and growing American industrial, manufacturing, transportation,
and service sector employing the vast talents of America's
workforce to assist in the development of energy from the outer
Continental Shelf. Moreover, the Congress intends to monitor
the deployment of personnel and material on the outer
Continental Shelf to encourage the development of American
technology and manufacturing to enable United States workers to
benefit from this Act by good jobs and careers, as well as the
establishment of important industrial facilities to support
expanded access to American resources.
* * * * * * *
----------
ENERGY POLICY ACT OF 2005
* * * * * * *
TITLE III--OIL AND GAS
* * * * * * *
Subtitle E--Production Incentives
* * * * * * *
[SEC. 344. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE
SHALLOW WATERS OF THE GULF OF MEXICO.
[(a) Royalty Incentive Regulations for Ultra Deep Gas
Wells.--
[(1) In general.--Not later than 180 days after the
date of enactment of this Act, in addition to any other
regulations that may provide royalty incentives for
natural gas produced from deep wells on oil and gas
leases issued pursuant to the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.), the Secretary shall
issue regulations granting royalty relief suspension
volumes of not less than 35 billion cubic feet with
respect to the production of natural gas from ultra
deep wells on leases issued in shallow waters less than
400 meters deep located in the Gulf of Mexico wholly
west of 87 degrees, 30 minutes west longitude.
Regulations issued under this subsection shall be
retroactive to the date that the notice of proposed
rulemaking is published in the Federal Register.
[(2) Suspension volumes.--The Secretary may grant
suspension volumes of not less than 35 billion cubic
feet in any case in which--
[(A) the ultra deep well is a sidetrack; or
[(B) the lease has previously produced from
wells with a perforated interval the top of
which is at least 15,000 feet true vertical
depth below the datum at mean sea level.
[(3) Definitions.-- In this subsection:
[(A) Ultra deep well.--The term ``ultra deep
well'' means a well drilled with a perforated
interval, the top of which is at least 20,000
true vertical depth below the datum at mean sea
level.
[(B) Sidetrack.--
[(i) In general.--The term
``sidetrack'' means a well resulting
from drilling an additional hole to a
new objective bottom-hole location by
leaving a previously drilled hole.
[(ii) Inclusion.--The term
``sidetrack'' includes--
[(I) drilling a well from a
platform slot reclaimed from a
previously drilled well;
[(II) re-entering and
deepening a previously drilled
well; and
[(III) a bypass from a
sidetrack, including drilling
around material blocking a hole
or drilling to straighten a
crooked hole.
[(b) Royalty Incentive Regulations for Deep Gas Wells.--Not
later than 180 days after the date of enactment of this Act, in
addition to any other regulations that may provide royalty
incentives for natural gas produced from deep wells on oil and
gas leases issued pursuant to the Outer Continental Shelf Lands
Act (43 U.S.C. 1331 et seq.), the Secretary shall issue
regulations granting royalty relief suspension volumes with
respect to production of natural gas from deep wells on leases
issued in waters more than 200 meters but less than 400 meters
deep located in the Gulf of Mexico wholly west of 87 degrees,
30 minutes west longitude. The suspension volumes for deep
wells within 200 to 400 meters of water depth shall be
calculated using the same methodology used to calculate the
suspension volumes for deep wells in the shallower waters of
the Gulf of Mexico, and in no case shall the suspension volumes
for deep wells within 200 to 400 meters of water depth be lower
than those for deep wells in shallower waters. Regulations
issued under this subsection shall be retroactive to the date
that the notice of proposed rulemaking is published in the
Federal Register.
[(c) Limitations.--The Secretary may place limitations on the
royalty relief granted under this section based on market
price. The royalty relief granted under this section shall not
apply to a lease for which deep water royalty relief is
available.
[SEC. 345. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.
[(a) In General.--Subject to subsections (b) and (c), for
each tract located in water depths of greater than 400 meters
in the Western and Central Planning Area of the Gulf of Mexico
(including 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), any oil or gas lease sale
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) occurring during the 5-year period beginning on the date
of enactment of this Act shall use the bidding system
authorized under section 8(a)(1)(H) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)).
[(b) Suspension of Royalties.--The suspension of royalties
under subsection (a) shall be established at a volume of not
less than--
[(1) 5,000,000 barrels of oil equivalent for each
lease in water depths of 400 to 800 meters;
[(2) 9,000,000 barrels of oil equivalent for each
lease in water depths of 800 to 1,600 meters;
[(3) 12,000,000 barrels of oil equivalent for each
lease in water depths of 1,600 to 2,000 meters; and
[(4) 16,000,000 barrels of oil equivalent for each
lease in water depths greater than 2,000 meters.
[(c) Limitation.--The Secretary may place limitations on
royalty relief granted under this section based on market
price.]
* * * * * * *
Subtitle G--Miscellaneous
* * * * * * *
SEC. 388. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.
(a) * * *
(b) Coordinated OCS Mapping Initiative.--
(1) * * *
* * * * * * *
(4) Availability of data and information.--All heads
of departments and agencies of the Federal Government
shall, upon request of the Secretary, provide to the
Secretary all data and information that the Secretary
deems necessary for the purpose of including such data
and information in the mapping initiative, except that
no department or agency of the Federal Government shall
be required to provide any data or information that is
privileged or proprietary.
* * * * * * *
[SEC. 390. NEPA REVIEW.
[(a) NEPA Review.--Action by 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 a categorical
exclusion under the National Environmental Policy Act of 1969
(NEPA) would apply if the activity 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.]
* * * * * * *
TITLE IX--RESEARCH AND DEVELOPMENT
* * * * * * *
Subtitle J--Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Resources
* * * * * * *
SEC. 999H. FUNDING.
[(a) Oil and Gas Lease Income.--For each of fiscal years 2007
through 2017, from any Federal royalties, rents, and bonuses
derived from Federal onshore and offshore oil and gas leases
issued under the Outer Continental Shelf Lands Act (43 U.S.C.
1331 et seq.) and the Mineral Leasing Act (30 U.S.C. 181 et
seq.) which are deposited in the Treasury, and after
distribution of any such funds as described in subsection (c),
$50,000,000 shall be deposited into the Ultra-Deepwater and
Unconventional Natural Gas and Other Petroleum Research Fund
(in this section referred to as the ``Fund''). For purposes of
this section, the term ``royalties'' excludes proceeds from the
sale of royalty production taken in kind and royalty production
that is transferred under section 27(a)(3) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)).
[(b) Obligational Authority.--Monies in the Fund shall be
available to the Secretary for obligation under this part
without fiscal year limitation, to remain available until
expended.
[(c) Prior Distributions.--The distributions described in
subsection (a) are those required by law--
[(1) to States and to the Reclamation Fund under the
Mineral Leasing Act (30 U.S.C. 191(a)); and
[(2) to other funds receiving monies from Federal oil
and gas leasing programs, including--
[(A) any recipients pursuant to section 8(g)
of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(g));
[(B) the Land and Water Conservation Fund,
pursuant to section 2(c) of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 4601-
5(c));
[(C) the Historic Preservation Fund, pursuant
to section 108 of the National Historic
Preservation Act (16 U.S.C. 470h); and
[(D) the coastal impact assistance program
established under section 31 of the Outer
Continental Shelf Lands Act (as amended by
section 384).]
[(d)] (a) Allocation.--Amounts [obligated from the Fund under
subsection (a)(1)] available under this section in each fiscal
year shall be allocated as follows:
(1) * * *
* * * * * * *
[(e)] (b) Authorization of Appropriations.--[In addition to
other amounts that are made available to carry out this
section, there] There is authorized to be appropriated to carry
out this section $100,000,000 for each of fiscal years 2007
through 2016.
[(f) Fund.--There is hereby established in the Treasury of
the United States a separate fund to be known as the ``Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum
Research Fund''.]
* * * * * * *
----------
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. 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. 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.]
(a)(1) All lands subject to disposition under this Act that
are known or believed to contain oil or gas deposits may be
leased by the Secretary.
(2) Leasing activities under this Act shall be conducted to
assure receipt of fair market value for the lands and resources
leased and the rights conveyed by the Federal Government.
(b)(1)(A) All lands to be leased 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 sealed
bid. Lease sales shall be held for a State on a statewide basis
where eligible lands in such States are available no more than
3 times per year per State, unless the Secretary of the
Interior determines additional 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 may issue a lease
to the responsible qualified bidder with the highest bid that
is equal to or greater than the national minimum acceptable
bid, with evaluation of the value of the lands proposed for
lease. The Secretary shall decide whether to accept a bid and
issue a lease within 90 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. All bids for
less than the national minimum acceptable bid shall be
rejected.
(B)(i) The national minimum acceptable bid shall be $2.50 per
acre, except that the Secretary may establish a higher minimum
acceptable bid for leases of areas in a State for all leases
awarded after the 2-year period beginning on the date of
enactment of the Consolidated Land, Energy, and Aquatic
Resources Act of 2010, if the Secretary finds that such a
higher amount 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.
(ii) The proposal or promulgation of any regulation to
establish a higher minimum acceptable bid for a State shall not
be considered a major Federal action that is subject to the
requirements of section 102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)(c)).
* * * * * * *
[(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.]
(d)(1) During the 2-year period beginning on the date of
enactment of the Consolidated Land, Energy, and Aquatic
Resources Act of 2010, all leases issued under this section
shall be conditioned upon payment by the lessee of a rental of
not less than $2.50 per acre per year for the first through
fifth years of the lease and not less than $3 per acre per year
for each year thereafter. After the end of such 2-year period,
the Secretary may establish higher rental rates for all
subsequent years, if the Secretary finds that such action is
necessary--
(A) to enhance financial returns to the United
States; and
(B) to promote more efficient management of oil and
gas and alternative energy resources on Federal lands.
(2) A minimum royalty in lieu of rental of not less than the
rental that 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 land leased.
(e) [Competitive and noncompetitive leases] 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.]
(f)(1) 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 to--
(A) the general public by posting such notice in the
appropriate local office and on the electronic website
of the leasing and land management agencies offering
the lands for lease;
(B) all surface land owners in the area of the lands
being offered for lease; and
(C) the holders of special recreation permits for
commercial use, competitive events, and other organized
activities on the lands being offered for lease.
(2) 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.
(3) 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.]
(g) Regulation of Surface-Disturbing Activities; Approval of
Plan of Operations; Bond or Surety; Failure to Comply With
Reclamation Requirements as Barring Lease; Opportunity to
Comply With Requirements; Standards; Monitoring.--
(1) Definitions.--In this subsection:
(A) Interim reclamation plan.--The term
``Interim Reclamation Plan'' means an ongoing
plan specifying reclamation steps to be taken
on all disturbed areas covered by any lease
issued under this Act which are not needed for
active operations. Such Interim Reclamation
Plans shall be reviewed by the relevant
Secretary at regular intervals and shall be
amended as warranted, subject to the approval
of the relevant Secretary.
(B) Final reclamation plan.--The term ``Final
Reclamation Plan'' includes a detailed
description of all reclamation activity to be
conducted for all disturbed areas covered by a
lease issued under this Act prior to final
abandonment. Final Reclamation Plans shall
include reclamation of all locations,
facilities, trenches, rights-of-way, roads and
any other surface disturbance on lands covered
by the lease.
(2) In general.--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.
(3) Reclamation plans required.--
(A) Applications for permits to drill.--Each
application for a permit to drill submitted to
the Secretary pursuant to this Act shall
include both an Interim Reclamation Plan and a
Final Reclamation Plan.
(B) Analysis and approval required.--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 both an interim reclamation plan
and a final reclamation plan covering proposed
surface-disturbing activities within the lease
area.
(C) Plans of operations.--All Plans of
Operations submitted and approved pursuant to
this Act shall include an Interim Reclamation
Plan.
(4) Bonding.--The Secretary concerned shall, by
regulation, require 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.
(5) Standards.--The Secretary of the Interior and the
Secretary of Agriculture shall, by regulation,
establish uniform standards for all Interim and Final
Reclamation Plans. The goal of such plans shall be the
restoration of the affected ecosystem to a condition
approximating or equal to that which existed prior to
the surface disturbance. Such standards shall include,
but are not limited to, restoration of natural
vegetation and hydrology, habitat restoration, salvage,
storage and reuse of topsoils, erosion control, control
of invasive species and noxious weeds and natural
contouring.
(6) Monitoring.--The Secretary concerned shall not
approve final abandonment and shall not release any
bond required by this Act until the standards and
requirement for final reclamation established pursuant
to this Act have been met.
* * * * * * *
GRANT OF AUTHORITY
Sec. 28. (a) * * *
* * * * * * *
reports
(w)(1) * * *
* * * * * * *
(4) Upon request of a Committee listed under paragraph (2),
that Committee may receive notifications under this subsection
in electronic format in addition to in writing, or in
electronic format alone. The Committee shall designate to the
Secretary the appropriate individual or individuals on the
Committee to receive such electronic notices.
* * * * * * *
Sec. 31. (a) * * *
* * * * * * *
(d)(1) Where any oil and gas lease issued pursuant to section
17(b) [or section 17(c)] of this Act or the Mineral Leasing Act
for Acquired Lands (30 U.S.C. 351 et seq.) has been, or is
hereafter, terminated automatically by operation of law under
this section for failure to pay on or before the anniversary
date the full amount of the rental due, and such rental is not
paid or tendered within twenty days thereafter, and it is shown
to the satisfaction of the Secretary of the Interior that such
failure was justifiable or not due to lack of reasonable
diligence on the part of the lessee, or, no matter when the
rental is paid after termination, it is shown to the
satisfaction of the Secretary that such failure was
inadvertent, the Secretary may reinstate the lease as of the
date of termination for the unexpired portion of the primary
term of the original lease or any extension thereof remaining
at the date of termination, and so long thereafter as oil or
gas is produced in paying quantities. In any case where a lease
is reinstated under this subsection and the Secretary finds
that the reinstatement of such lease (A) occurs after the
expiration of the primary term or any extension thereof, or (B)
will not afford the lessee a reasonable opportunity to continue
operations under the lease, the Secretary may, at his
discretion, extend the term of such lease for such period as he
deems reasonable, but in no event for more than two years from
the date the Secretary authorizes the reinstatement and so long
thereafter as oil or gas is produced in paying quantities.
* * * * * * *
(e) Any reinstatement under subsection (d) of this section
shall be made only if these conditions are met:
(1) * * *
(2) payment of back rentals and either the inclusion
in a reinstated lease issued pursuant to the provisions
of section 17(b) of this Act of a requirement for
future rentals at a rate of not less than $10 per acre
per year[, or the inclusion in a reinstated lease
issued pursuant to the provisions of section 17(c) of
this Act of a requirement that future rentals shall be
at a rate not less than $5 per acre per year, all as
determined by the Secretary;];
(3)[(A)] payment of back royalties and the inclusion
in a reinstated lease issued pursuant to the provisions
of section 17(b) of this Act of a requirement for
future royalties at a rate of not less than 16\2/3\
percent computed on a sliding scale based upon the
average production per well per day, at a rate which
shall be not less than 4 percentage points greater than
the competitive royalty schedule then in force and used
for royalty determination for competitive leases issued
pursuant to such section as determined by the
Secretary: Provided, That royalty on such reinstated
lease shall be paid on all production removed or sold
from such lease subsequent to the termination of the
original lease;
[(B) payment of back royalties and inclusion in a
reinstated lease issued pursuant to the provisions of
section 17(c) of this Act of a requirement for future
royalties at a rate not less than 16\2/3\ percent:
Provided, That royalty on such reinstated lease shall
be paid on all production removed or sold from such
lease subsequent to the cancellation or termination of
the original lease; and]
* * * * * * *
A copy of said notice, together with information concerning
rental, royalty, volume of production, if any, and any other
matter which the Secretary deemed significant in making this
determination to reinstate, shall be furnished to the Committee
on Natural Resources of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate at
least thirty days in advance of the reinstatement. The lessee
of a reinstated lease shall reimburse the Secretary for the
administrative costs of reinstating the lease, but not to
exceed $500. In addition the lessee shall reimburse the
Secretary for the cost of publication in the Federal Register
of the notice of proposed reinstatement. Upon request of such a
Committee, that Committee may receive notifications under this
subsection in electronic format in addition to in writing, or
in electronic format alone. The Committee shall designate to
the Secretary the appropriate individual or individuals on the
Committee to receive such electronic notices.
[(f) Where an unpatented oil placer mining claim validly
located prior to February 24, 1920, which has been or is
currently producing or is capable of producing oil or gas, has
been or is hereafter deemed conclusively abandoned for failure
to file timely the required instruments or copies of
instruments required by section 314 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1744), and it is shown to
the satisfaction of the Secretary that such failure was
inadvertent, justifiable, or not due to lack of reasonable
diligence on the part of the owner, the Secretary may issue,
for the lands covered by the abandoned unpatented oil placer
mining claim, a noncompetitive oil and gas lease, consistent
with the provisions of section 17(e) of this Act, to be
effective from the statutory date the claim was deemed
conclusively abandoned. Issuance of such a lease shall be
conditioned upon:
[(1) a petition for issuance of a noncompetitive oil
and gas lease, together with the required rental and
royalty, including back rental and royalty accruing
from the statutory date of abandonment of the oil
placer mining claim, being filed with the Secretary--
[(A) with respect to any claim deemed
conclusively abandoned on or before the date of
enactment of the Federal Oil and Gas Royalty
Management Act of 1982, on or before the one
hundred and twentieth day after such date of
enactment, or
[(B) with respect to any claim deemed
conclusively abandoned after such date of
enactment, on or before the one hundred and
twentieth day after final notification by the
Secretary or a court of competent jurisdiction
of the determination of the abandonment of the
oil placer mining claim;
[(2) a valid lease not having been issued affecting
any of the lands covered by the abandoned oil placer
mining claim prior to the filing of such petition:
Provided, however, That after the filing of a petition
for issuance of a lease under this subsection, the
Secretary shall not issue any new lease affecting any
of the lands covered by such abandoned oil placer
mining claim for a reasonable period, as determined in
accordance with regulations issued by him;
[(3) a requirement in the lease for payment of
rental, including back rentals accruing from the
statutory date of abandonment of the oil placer mining
claim, of not less than $5 per acre per year;
[(4) a requirement in the lease for payment of
royalty on production removed or sold from the oil
placer mining claim, including all royalty on
production made subsequent to the statutory date the
claim was deemed conclusively abandoned, of not less
than 12\1/2\ percent; and
[(5) compliance with the notice and reimbursement of
costs provisions of paragraph (4) of subsection (e) but
addressed to the petition covering the conversion of an
abandoned unpatented oil placer mining claim to a
noncompetitive oil and gas lease.]
(g)(1) Except as otherwise provided in this section, a
reinstated lease shall be treated as [a competitive or a
noncompetitive oil and gas lease in the same manner as the
original lease issued pursuant to section 17(b) or 17(c) of
this Act.] in the same manner as the original lease issued
pursuant to section 17.
[(2) Except as otherwise provided in this section, the
issuance of a lease in lieu of an abandoned patented oil placer
mining claim shall be treated as a noncompetitive oil and gas
lease issued pursuant to section 17(c) of this Act.]
(3) Notwithstanding any other provision of law, any lease
issued pursuant to section 14 of this Act shall be eligible for
reinstatement under the terms and conditions set forth in
subsections (c), (d), and (e) of this section[, applicable to
leases issued under subsection 17(c) of this Act (30 U.S.C.
226(c)) except,], except that, upon reinstatement, such lease
shall continue for twenty years and so long thereafter as oil
or gas is produced in paying quantities.
* * * * * * *
Sec. 36. That all royalty accruing to the United States under
any oil or gas lease or permit under this Act on demand of the
Secretary of the Interior shall be paid in oil or gas, except
that the Secretary shall not conduct a regular program to take
oil and gas lease royalties in oil or gas.
* * * * * * *
SEC. 44. LEASING OF LANDS FOR URANIUM MINING.
(a) In General.--
(1) Withdrawal from entry; leasing requirement.--
Effective upon the date of enactment of the
Consolidated Land, Energy, and Aquatic Resources Act of
2010, all Federal lands are hereby permanently
withdrawn from location and entry under section 2319 of
the Revised Statutes (30 U.S.C. 22 et seq.) for
uranium. After the end of the 2-year period beginning
on such date of enactment, no uranium may be produced
from Federal lands except pursuant to a lease issued
under this Act.
(2) Leasing.--The Secretary--
(A) may divide any lands subject to this Act
that are not withdrawn from mineral leasing and
that are otherwise available for uranium
leasing under applicable law, including lands
available under the terms of land use plans
prepared by the Federal agency managing the
land, into leasing tracts of such size as the
Secretary finds appropriate and in the public
interest; and
(B) thereafter shall, in the Secretary's
discretion, upon the request of any qualified
applicant or on the Secretary's own motion,
from time to time, offer such lands for uranium
leasing and award uranium leases thereon by
competitive bidding.
(b) Fair Market Value Required.--
(1) In general.--No bid for a uranium lease shall be
accepted that is less than the fair market value, as
determined by the Secretary, of the uranium subject to
the lease.
(2) Public comment.--Prior to the Secretary's
determination of the fair market value of the uranium
subject to the lease, the Secretary shall give
opportunity for and consideration to public comments on
the fair market value.
(3) Disclosure not required.--Nothing in this section
shall be construed to require the Secretary to make
public the Secretary's judgment as to the fair market
value of the uranium to be leased, or the comments the
Secretary receives thereon prior to the issuance of the
lease.
(c) Lands Under the Jurisdiction of Other Agencies.--Leases
covering lands the surface of which is under the jurisdiction
of any Federal agency other than the Department of the Interior
may be issued only--
(1) upon consent of the head of the other Federal
agency; and
(2) upon such conditions the head of such other
Federal agency may prescribe with respect to the use
and protection of the nonmineral interests in those
lands.
(d) Consideration of Effects of Mining.--Before issuing any
uranium lease, the Secretary shall consider effects that mining
under the proposed lease might have on an impacted community or
area, including impacts on the environment, on agricultural, on
cultural resources, and other economic activities, and on
public services.
(e) Notice of Proposed Lease.--No lease sale shall be held
for lands until after a notice of the proposed offering for
lease has been given once a week for three consecutive weeks in
a newspaper of general circulation in the county in which the
lands are situated, or in electronic format, in accordance with
regulations prescribed by the Secretary.
(f) Auction Requirements.--All lands to be leased under this
section shall be leased to the highest responsible qualified
bidder--
(1) under general regulations;
(2) in units of not more than 2,560 acres that are as
nearly compact as possible; and
(3) by oral bidding.
(g) Required Payments.--
(1) In general.--A lease under this section shall be
conditioned upon the payment by the lessee of--
(A) a royalty at a rate of not less than 12.5
percent in amount or value of the production
removed or sold under the lease; and
(B) a rental of--
(i) not less than $2.50 per acre per
year for the first through fifth years
of the lease; and
(ii) not less than $3 per acre per
year for each year thereafter.
(2) Use of revenues.--Amounts received as revenues
under this subsection with respect to a lease may be
used by the Secretary of the Interior, subject to the
availability of appropriations, for cleaning up uranium
mill tailings and reclaiming abandoned uranium mines on
Federal lands in accordance with the priorities and
eligibility restrictions, respectively, under
subsections (c) and (d) of section 411 of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1240a), or may be transferred by the Secretary, subject
to the availability of appropriations, to the Attorney
General for use by the Attorney General to pay claims
filed under the Radiation Exposure Compensation Act (42
U.S.C. 2210 note) that the Attorney General determines
meet the requirements of that Act.
(h) Lease Term.--A lease under this section--
(1) shall be effective for a primary term of 10
years; and
(2) shall continue in effect after such primary term
for so long is as uranium is produced under the lease
in paying quantities.
(i) Exploration Licenses.--
(1) In general.--The Secretary may, under such
regulations as the Secretary may prescribe, issue to
any person an exploration license. No person may
conduct uranium exploration for commercial purposes on
lands subject to this Act without such an exploration
license. Each exploration license shall be for a term
of not more than two years and shall be subject to a
reasonable fee. An exploration license shall confer no
right to a lease under this Act. The issuance of
exploration licenses shall not preclude the Secretary
from issuing uranium leases at such times and locations
and to such persons as the Secretary deems appropriate.
No exploration license may be issued for any land on
which a uranium lease has been issued. A separate
exploration license shall be required for exploration
in each State. An application for an exploration
license shall identify general areas and probable
methods of exploration. Each exploration license shall
be limited to specific geographic areas in each State
as determined by the Secretary, and shall contain such
reasonable conditions as the Secretary may require,
including conditions to ensure the protection of the
environment, and shall be subject to all applicable
Federal, State, and local laws and regulations. Upon
violation of any such conditions or laws the Secretary
may revoke the exploration license.
(2) Limitations.--A licensee may not cause
substantial disturbance to the natural land surface. A
licensee may not remove any uranium for sale but may
remove a reasonable amount of uranium from the lands
subject to this Act included under the Secretary's
license for analysis and study. A licensee must comply
with all applicable rules and regulations of the
Federal agency having jurisdiction over the surface of
the lands subject to this Act. Exploration licenses
covering lands the surface of which is under the
jurisdiction of any Federal agency other than the
Department of the Interior may be issued only upon such
conditions as it may prescribe with respect to the use
and protection of the nonmineral interests in those
lands.
(3) Sharing of data.--The licensee shall furnish to
the Secretary copies of all data (including geological,
geophysical, and core drilling analyses) obtained
during such exploration. The Secretary shall maintain
the confidentiality of all data so obtained until after
the areas involved have been leased or until such time
as the Secretary determines that making the data
available to the public would not damage the
competitive position of the licensee, whichever comes
first.
(4) Exploration without a license.--Any person who
willfully conducts uranium exploration for commercial
purposes on lands subject to this Act without an
exploration license issued under this subsection shall
be subject to a fine of not more than $1,000 for each
day of violation. All data collected by such person on
any Federal lands as a result of such violation shall
be made immediately available to the Secretary, who
shall make the data available to the public as soon as
it is practicable. No penalty under this subsection
shall be assessed unless such person is given notice
and opportunity for a hearing with respect to such
violation.
(j) Conversion of Mining Claims to Mineral Leases.--
(1) In general.--The owner of any mining claim (in
this subsection referred to as a ``claimant'') located
prior to the date of enactment of the Consolidated
Land, Energy, and Aquatic Resources Act of 2010 may,
within two years after such date, apply to the
Secretary of the Interior to convert the claim to a
lease under this section. The Secretary shall issue a
uranium lease under this section to the claimant upon a
demonstration by the claimant, to the satisfaction of
the Secretary, within one year after the date of the
application to the Secretary, that the claim was, as of
such date of enactment, supported by the discovery of a
valuable deposit of uranium on the claimed land. The
holder of a lease issued upon conversion from a mining
claim under this subsection shall be subject to all the
requirements of this section governing uranium leases,
except that the holder shall pay a royalty of 6.25
percent on the value of the uranium produced under the
lease, until beginning ten years after the date the
claim is converted to a lease.
(2) Other claims extinguished.--All mining claims
located for uranium on Federal lands whose claimant
does not apply to the Secretary for conversion to a
lease, or whose claimant cannot make such a
demonstration of discovery, shall become null and void
by operation of law three years after such date of
enactment.
SEC. [44.] 45. SHORT TITLE.
This Act may be cited as the ``Mineral Leasing Act''.
* * * * * * *
----------
FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT OF 1982
* * * * * * *
DEFINITIONS
Sec. 3. For the purposes of this Act, the term--
(1) * * *
* * * * * * *
(8) ``mineral leasing law'' means any Federal law
administered by the Secretary authorizing the
disposition under lease of oil or gas [;] including but
not limited to the Act of October 20, 1914 (38 Stat.
741); the Act of February 25, 1920 (41 Stat. 437); the
Act of April 17, 1926 (44 Stat. 301); the Act of
February 7, 1927 (44 Stat. 1057); and all Acts
heretofore or hereafter enacted that are amendatory of
or supplementary to any of the foregoing Acts;
* * * * * * *
(20) ``commence'' means--
(A) with respect to a judicial proceeding,
the service of a complaint, petition,
counterclaim, cross claim, or other pleading
seeking affirmative relief or seeking credit or
recoupment[: Provided, That if the Secretary
commences a judicial proceeding against a
designee, the Secretary shall give notice of
that commencement to the lessee who designated
the designee, but the Secretary is not required
to give notice to other lessees who may be
liable pursuant to section 102(a) of this Act,
for the obligation that is the subject of the
judicial proceeding]; or
(B) with respect to a demand, the receipt by
the Secretary or a delegated State or a lessee
or its designee [(with written notice to the
lessee who designated the designee)] of the
demand;
* * * * * * *
(23) ``demand'' means--
(A) an order to pay issued by the Secretary
or the applicable delegated State to a lessee
or its designee [(with written notice to the
lessee who designated the designee)] that has a
reasonable basis to conclude that the
obligation in the amount of the demand is due
and owing; or
* * * * * * *
[(24) ``designee'' means the person designated by a
lessee pursuant to section 102(a) of this Act, with
such written designation effective on the date such
designation is received by the Secretary and remaining
in effect until the Secretary receives notice in
writing that the designation is modified or
terminated;]
(24) ``designee'' means a person who pays, offsets,
or credits monies, makes adjustments, requests and
receives refunds, or submits reports with respect to
payments a lessee must make pursuant to section 102(a);
(25) ``obligation'' means--
(A) * * *
(B) any duty of a lessee or its designee
[(subject to the provisions of section 102(a)
of this Act)]--
(i) * * *
(ii) to pay, offset or credit monies
including (but not limited to)--
(I) * * *
* * * * * * *
[which arises from or relates to any
lease administered by the Secretary
for, or any mineral leasing law related
to, the exploration, production and
development of oil or gas on Federal
lands or the Outer Continental Shelf;]
that arises from or relates to any
lease, easement, right-of-way, permit,
or other agreement regardless of form
administered by the Secretary for, or
any mineral leasing law related to, the
exploration, production, and
development of oil and gas or other
energy resource on Federal lands or the
Outer Continental Shelf;
* * * * * * *
(29) ``penalty'' means a statutorily authorized civil
fine levied or imposed for a violation of this Act, any
mineral leasing law, or a term or provision of a lease
or permit administered by the Secretary;
* * * * * * *
(32) ``underpayment'' means any payment or nonpayment
by a lessee or its designee that is less than the
amount legally required to be paid on an obligation;
[and]
(33) ``United States'' means the United States
Government and any department, agency, or
instrumentality thereof, the several States, the
District of Columbia, and the territories of the United
States [.];
(34) ``compliance review'' means a full-scope or a
limited-scope examination of a lessee's lease accounts
to compare one or all elements of the royalty equation
(volume, value, royalty rate, and allowances) against
anticipated elements of the royalty equation to test
for variances; and
(35) ``marketing affiliate'' means an affiliate of a
lessee whose function is to acquire the lessee's
production and to market that production.
TITLE I--FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT
DUTIES OF THE SECRETARY
Sec. 101. (a) * * *
* * * * * * *
(d) The Secretary may, as an adjunct to audits of accounts
for leases, utilize compliance reviews of accounts. Such
reviews shall not constitute nor substitute for audits of lease
accounts. Any disparity uncovered in such a compliance review
shall be immediately referred to a program auditor. The
Secretary shall, before completion of a compliance review,
provide notice of the review to designees whose obligations are
the subject of the review.
DUTIES OF LESSEES, OPERATORS, AND MOTOR VEHICLE TRANSPORTERS
Sec. 102.
[(a) In order to increase receipts and achieve effective
collections of royalty and other payments, a lessee who is
required to make any royalty or other payment under a lease or
under the mineral leasing laws, shall make such payments in the
time and manner as may be specified by the Secretary or the
applicable delegated State. A lessee may designate a person to
make all or part of the payments due under a lease on the
lessee's behalf and shall notify the Secretary or the
applicable delegated State in writing of such designation, in
which event said designated person may, in its own name, pay,
offset or credit monies, make adjustments, request and receive
refunds and submit reports with respect to payments required by
the lessee. Notwithstanding any other provision of this Act to
the contrary, a designee shall not be liable for any payment
obligation under the lease. The person owning operating rights
in a lease shall be primarily liable for its pro rata share of
payment obligations under the lease. If the person owning the
legal record title in a lease is other than the operating
rights owner, the person owning the legal record title shall be
secondarily liable for its pro rata share of such payment
obligations under the lease.]
(a) In order to increase receipts and achieve effective
collections of royalty and other payments, a lessee who is
required to make any royalty or other payment under a lease,
easement, right-of-way, permit, or other agreement, regardless
of form, or under the mineral leasing laws, shall make such
payment in the time and manner as may be specified by the
Secretary or the applicable delegated State. Any person who
pays, offsets, or credits monies, makes adjustments, requests
and receives refunds, or submits reports with respect to
payments the lessee must make is the lessee's designee under
this Act. Notwithstanding any other provision of this Act to
the contrary, a designee shall be liable for any payment
obligation of any lessee on whose behalf the designee pays
royalty under the lease. The person owning operating rights in
a lease and a person owning legal record title in a lease shall
be liable for that person's pro rata share of payment
obligations under the lease.
* * * * * * *
REQUIRED RECORDKEEPING
Sec. 103. (a) * * *
(b) Records required by the Secretary with respect to oil and
gas leases from Federal or Indian lands or the Outer
Continental Shelf shall be maintained for [6] 7 years after the
records are generated unless the Secretary notifies the record
holder that he has initiated an audit or investigation
involving such records and that such records must be maintained
for a longer period. In any case when an audit or investigation
is underway, records shall be maintained until the Secretary
releases the record holder of the obligation to maintain such
records.
* * * * * * *
CIVIL PENALTIES
Sec. 109. (a) Any person who--
(1) * * *
(2) fails to permit inspection authorized in section
108 or fails to notify the Secretary of any assignment
under section 102(a)(2)
shall be liable for a penalty of up to [$500] $1,000 per
violation for each day such violation continues, dating from
the date of such notice or report. A penalty under this
subsection may not be applied to any person who is otherwise
liable for a violation of paragraph (1) if:
(A) * * *
(B) after the due notice of violation required in
paragraph (1) has been given to such person (i) by the
Secretary or his authorized representative, such person
has corrected the violation within 20 days of such
notification or such longer time as the Secretary may
agree to[.]; and (ii) has not received notice, pursuant
to paragraph (1), of more than two prior violations in
the current calendar year.
(b) If corrective action is not taken within 40 days or a
longer period as the Secretary may agree to, after due notice
or the report referred to in subsection (a)(1), such person
shall be liable for a civil penalty of not more than [$5,000]
$10,000 per violation for each day such violation continues,
dating from the date of such notice or report.
(c) Any person who--
(1) * * *
(2) fails or refuses to permit lawful entry,
inspection, or audit[; or], including any failure or
refusal to promptly tender requested documents;
* * * * * * *
shall be liable for a penalty of up to [$10,000] $20,000 per
violation for each day such violation continues[.];
(4) knowingly or willfully fails to make any royalty
payment in the amount or value as specified by statute,
regulation, order, or terms of the lease; or
(5) fails to correctly report and timely provide
operations or financial records necessary for the
Secretary or any authorized designee of the Secretary
to accomplish lease management responsibilities,
(d) Any person who--
(1) * * *
* * * * * * *
(h) Notice under this subsection (a) shall be by personal
service by an authorized representative of the Secretary or [by
registered mail] a common carrier that provides proof of
delivery. Any person may, in the manner prescribed by the
Secretary, designate a representative to receive any notice
under this subsection.
* * * * * * *
(m)(1) Any determination by the Secretary or a designee of
the Secretary that a person has committed a violation under
subsection (a), (c), or (d)(1) shall toll any applicable
statute of limitations for all oil and gas leases held or
operated by such person, until the later of--
(A) the date on which the person corrects the
violation and certifies that all violations of a like
nature have been corrected for all of the oil and gas
leases held or operated by such person; or
(B) the date a final, nonappealable order has been
issued by the Secretary or a court of competent
jurisdiction.
(2) A person determined by the Secretary or a designee of the
Secretary to have violated subsection (a), (c), or (d)(1) shall
maintain all records with respect to the person's oil and gas
leases until the later of--
(A) the date the Secretary releases the person from
the obligation to maintain such records; and
(B) the expiration of the period during which the
records must be maintained under section 103(b).
* * * * * * *
ROYALTY TERMS AND CONDITIONS, INTEREST, AND PENALTIES
Sec. 111. (a) * * *
* * * * * * *
[(h) Interest shall be allowed and paid or credited on any
overpayment, with such interest to accrue from the date such
overpayment was made, at the rate obtained by applying the
provisions of subparagraphs (A) and (B) of section 6621(a)(1)
of the Internal Revenue Code of 1986, but determined without
regard to the sentence following subparagraph (B) of section
6621(a)(1). Interest which has accrued on any overpayment may
be applied to reduce an underpayment. This subsection applies
to overpayments made later than six months after the date of
enactment of this subsection or September 1, 1996, whichever is
later. Such interest shall be paid from amounts received as
current receipts from sales, bonuses, royalties (including
interest charges collected under this section) and rentals of
the public lands and the Outer Continental Shelf under the
provisions of the Mineral Leasing Act, and the Outer
Continental Shelf Lands Act, which are not payable to a State
or the Reclamation Fund. The portion of any such interest
payment attributable to any amounts previously disbursed to a
State, the Reclamation Fund, or any other recipient designated
by law shall be deducted from the next disbursements to that
recipient made under the applicable law. Such amounts deducted
from subsequent disbursements shall be credited to
miscellaneous receipts in the Treasury.
[(i) Upon a determination by the Secretary that an excessive
overpayment (based upon all obligations of a lessee or its
designee for a given reporting month) was made for the sole
purpose of receiving interest, interest shall not be paid on
the excessive amount of such overpayment. For purposes of this
Act, an ``excessive overpayment'' shall be the amount that any
overpayment a lessee or its designee pays for a given reporting
month (excluding payments for demands for obligations
determined to be due as a result of judicial or administrative
proceedings or agreed to be paid pursuant to settlement
agreements) for the aggregate of all of its Federal leases
exceeds 10 percent of the total royalties paid that month for
those leases.
[(j) A lessee or its designee may make a payment for the
approximate amount of royalties (hereinafter in this subsection
``estimated payment'') that would otherwise be due for such
lease by the date royalties are due for that lease. When an
estimated payment is made, actual royalties are payable at the
end of the month following the month in which the estimated
payment is made. If the estimated payment was less than the
amount of actual royalties due, interest is owed on the
underpaid amount. If the estimated payment exceeds the actual
royalties due, interest is owed on the overpayment. If the
lessee or its designee makes a payment for such actual
royalties, the lessee or its designee may apply the estimated
payment to future royalties. Any estimated payment may be
adjusted, recouped, or reinstated at any time by the lessee or
its designee.]
(h) Interest shall not be allowed nor paid nor credited on
any overpayment, and no interest shall accrue from the date
such overpayment was made.
(i) A lessee or its designee may make a payment for the
approximate amount of royalties (hereinafter in this subsection
referred to as the ``estimated payment'') that would otherwise
be due for such lease by the date royalties are due for that
lease. When an estimated payment is made, actual royalties are
payable at the end of the month following the month in which
the estimated payment is made. If the estimated payment was
less than the amount of actual royalties due, interest is owed
on the underpaid amount. If the lessee or its designee makes a
payment for such actual royalties, the lessee or its designee
may apply the estimated payment to future royalties. Any
estimated payment may be adjusted, recouped, or reinstated by
the lessee or its designee provided such adjustment,
recoupment, or reinstatement is made within the limitation
period for which the date royalties were due for that lease.
(k)(1) * * *
* * * * * * *
(4) The Secretary or the delegated State shall grant an
exception from the reporting and payment requirements for
marginal properties by allowing for any calendar year or
portion thereof royalties to be paid each month based on the
volume of production sold. Interest shall not accrue on the
difference for the entire calendar year or portion thereof
between the amount of oil and gas actually sold and the share
of production allocated to the lease until the beginning of the
month following such calendar year or portion thereof. Any
additional royalties due [or overpaid royalties and associated
interest] shall be paid[, refunded, or credited] within six
months after the end of each calendar year in which royalties
are paid based on volumes of production sold. For the purpose
of this subsection, the term ``marginal property'' means a
lease that produces on average the combined equivalent of less
than 15 barrels of oil per well per day or 90 thousand cubic
feet of gas per well per day, or a combination thereof,
determined by dividing the average daily production of crude
oil and natural gas from producing wells on such lease by the
number of such wells, unless the Secretary, together with the
State concerned, determines that a different production is more
appropriate.
* * * * * * *
SEC. 111A. ADJUSTMENTS AND REFUNDS.
(a) Adjustments to Royalties Paid to the Secretary or a
Delegated State.--
(1) * * *
* * * * * * *
(3)(A) An adjustment or a request for a refund for an
obligation may be made after the adjustment period only
upon written notice to and approval by the Secretary or
the applicable delegated State, as appropriate, during
an audit of the period which includes the production
month for which the adjustment is being made. [If an
overpayment is identified during an audit, then the
Secretary or the applicable delegated State, as
appropriate, shall allow a credit or refund in the
amount of the overpayment.]
(B) Except as provided in subparagraph (C), no
adjustment may be made with respect to an obligation
that is the subject of an audit or compliance review
after completion of the audit or compliance review,
respectively, unless such adjustment is approved by the
Secretary or the applicable delegated State, as
appropriate.
(C) If an overpayment is identified during an audit,
the Secretary shall allow a credit in the amount of the
overpayment.
(4) For purposes of this section, the adjustment
period for any obligation [shall] may be the [six]
four-year period following the date on which an
obligation became due. The adjustment period shall be
suspended, tolled, extended, enlarged, or terminated by
the same actions as the limitation period in section
115.
(b) Refunds.--
(1) In general.--A request for refund is sufficient
if it--
(A) * * *
* * * * * * *
(C) provides the Secretary information that
reasonably enables the Secretary to identify
the overpayment for which such refund is
sought; [and]
(D) provides the reasons why the payment was
an overpayment[.]; and
(E) is made within the adjustment period for
that obligation.
* * * * * * *
[NONCOMPETITIVE OIL AND GAS LEASE ROYALTY RATES
[Sec. 114. The Secretary is directed to conduct a thorough
study of the effects of a change in the royalty rate under
section 17(c) of the Mineral Leasing Act of 1920 on: (a) the
exploration, development, or production of oil or gas; and (b)
the overall revenues generated by such change. Such study shall
be completed and submitted to Congress within six months after
the date of enactment of this Act.]
SEC. 115. SECRETARIAL AND DELEGATED STATES' ACTIONS AND LIMITATION
PERIODS.
(a) * * *
* * * * * * *
(c) Obligation Becomes Due.--
(1) * * *
* * * * * * *
(3) Adjustments.--In the case of an adjustment under
section 111A(a) in which a recoupment by the lessee
results in an underpayment of an obligation, for
purposes of this Act the obligation becomes due on the
date the lessee or its designee makes the adjustment.
(d) Tolling of Limitation Period.--The running of the
limitation period under subsection (b) shall not be suspended,
tolled, extended, or enlarged for any obligation for any reason
by any action, including an action by the Secretary or a
delegated State, other than the following:
(1) Tolling agreement.--A written agreement executed
during the limitation period between the Secretary or a
delegated State and a lessee or its designee [(with
notice to the lessee who designated the designee)]
shall toll the limitation period for the amount of time
during which the agreement is in effect.
(2) Subpoena.--
(A) The issuance of a subpoena to a lessee or
its designee [(with notice to the lessee who
designated the designee, which notice shall not
constitute a subpoena to the lessee)] in
accordance with the provisions of subparagraph
(B)(i) shall toll the limitation period with
respect to the obligation which is the subject
of a subpoena only for the period beginning on
the date the lessee or its designee receives
the subpoena and ending on the date on which
(i) the lessee or its designee has produced
such subpoenaed records for the subject
obligation, (ii) the Secretary or a delegated
State receives written notice that the
subpoenaed records for the subject obligation
are not in existence or are not in the lessee's
or its designee's possession or control, or
(iii) a court has determined in a final
decision that such records are not required to
be produced, whichever occurs first.
* * * * * * *
(h) Appeals and Final Agency Action.--
(1) 33-month period.--Demands or orders issued by the
Secretary or a delegated State are subject to
administrative appeal in accordance with the
regulations of the Secretary. No State shall impose any
conditions which would hinder a lessee's or its
designee's immediate appeal of an order to the
Secretary or the Secretary's designee. The Secretary
shall issue a final decision in any administrative
proceeding, including any administrative proceedings
pending on the date of enactment of this section,
within [33] 48 months from the date such proceeding was
commenced or [33] 48 months from the date of such
enactment, whichever is later. The [33] 48-month period
may be extended by any period of time agreed upon in
writing by the Secretary and the appellant.
(2) Effect of failure to issue decision.--If no such
decision has been issued by the Secretary within the
[33] 48-month period referred to in paragraph (1)--
(A) * * *
* * * * * * *
[SEC. 116. ASSESSMENTS.
[Beginning eighteen months after the date of enactment of
this section, to encourage proper royalty payment the Secretary
or the delegated State shall impose assessments on a person who
chronically submits erroneous reports under this Act.
Assessments under this Act may only be issued as provided for
in this section.]
* * * * * * *
TITLE II--STATES AND INDIAN TRIBES
* * * * * * *
SHARED CIVIL PENALTIES
Sec. 206. An amount equal to 50 per centum of any civil
penalty collected by the Federal Government under this Act
resulting from activities conducted by a State or Indian tribe
pursuant to a cooperative agreement under section 202 or a
State under a delegation under section 205, shall be payable to
such State or tribe. [Such amount shall be deducted from any
compensation due such State or Indian tribe under section 202
or such State under section 205.]
* * * * * * *
TITLE III--GENERAL PROVISIONS
* * * * * * *
RELATION TO OTHER LAWS
Sec. 304. (a) * * *
* * * * * * *
(e) Applicability to Other Minerals.--
(1) Notwithstanding any other provision of law,
sections 107, 109, and 110 of this Act and the
regulations duly promulgated with respect thereto shall
apply to any lease authorizing the development of coal
or any other solid mineral on any Federal lands or
Indian lands, to the same extent as if such lease were
an oil and gas lease, on the same terms and conditions
as those authorized for oil and gas leases.
(2) Notwithstanding any other provision of law,
sections 107, 109, and 110 of this Act and the
regulations duly promulgated with respect thereto shall
apply with respect to any lease, easement, right-of-
way, or other agreement, regardless of form (including
any royalty, rent, or other payment due thereunder)--
(A) under section 8(k) or 8(p) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(k)
and 1337(p)); or
(B) under the Geothermal Steam Act (30 U.S.C.
1001 et seq.), to the same extent as if such
lease, easement, right-of-way, or other
agreement were an oil and gas lease on the same
terms and conditions as those authorized for
oil and gas leases.
(3) For the purposes of this subsection, the term
``solid mineral'' means any mineral other than oil,
gas, and geo-pressured-geothermal resources, that is
authorized by an Act of Congress to be produced from
public lands (as that term is defined in section 103 of
the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1702)).
* * * * * * *
----------
LAND AND WATER CONSERVATION FUND ACT OF 1965
TITLE I--LAND AND WATER CONSERVATION PROVISIONS
* * * * * * *
Sec. 2. Separate Fund.--During the period ending [September
30, 2015] September 30, 2040, there shall be covered into the
land and water conservation fund in the Treasury of the United
States, which fund is hereby established and is hereinafter
referred to as the ``fund'', the following revenues and
collections:
(a) * * *
* * * * * * *
(c)(1) Other Revenues.--In addition to the sum of the
revenues and collections estimated by the Secretary of the
Interior to be covered into the fund pursuant to this section,
as amended, there are authorized to be appropriated annually to
the fund out of any money in the Treasury not otherwise
appropriated such amounts as are necessary to make the income
of the fund not less than $300,000,000 for fiscal year 1977,
and $900,000,000 for fiscal year 1978 and for each fiscal year
thereafter through [September 30, 2015] September 30, 2040.
(2) To the extent that any such sums so appropriated are not
sufficient to make the total annual income of the fund
equivalent to the amounts provided in clause (1), an amount
sufficient to cover the remainder thereof shall be credited to
the fund from revenues due and payable to the United States for
deposit in the Treasury as miscellaneous receipts under the
Outer Continental Shelf Lands Act, as amended (43 U.S.C. 1331
et seq.)[: Provided, That notwithstanding the provisions of
section 3 of this Act, moneys covered into the fund under this
paragraph shall remain in the fund until appropriated by the
Congress to carry out the purpose of this Act].
Sec. 3. Appropriations.--[Moneys covered into the fund shall
be available for expenditure for the purposes of this Act only
when appropriated therefor. Such appropriations may be made
without fiscal-year limitation. Moneys made available for
obligation or expenditure from the fund or from the special
account established under section 4(i)(1) may be obligated or
expended only as provided in this Act.] Of the moneys covered
into the fund, $900,000,000 shall be available each fiscal year
for expenditure for the purposes of this Act without further
appropriation. Moneys made available for obligation or
expenditure from the fund or from the special account
established under section 4(i)(1) may be obligated or expended
only as provided in this Act.
* * * * * * *
----------
SECTION 108 OF THE NATIONAL HISTORIC PRESERVATION ACT OF 1966
Sec. 108. [To carry out the provisions of this Act, there is
hereby established the Historic Preservation Fund (hereafter
referred to as the ``fund'') in the Treasury of the United
States.
There shall be covered into such fund $24,400,000 for fiscal
year 1977, $100,000,000 for fiscal year 1978, $100,000,000 for
fiscal year 1979, $150,000,000 for fiscal year 1980, and
$150,000,000 for fiscal year 1981 and $150,000,000 for each of
fiscal years 1982 through 2015, from revenues due and payable
to the United States under the Outer Continental Shelf Lands
Act (67 Stat. 462, 469), as amended (43 U.S.C. 1338), and/or
under the Act of June 4, 1920 (41 Stat. 813), as amended (30
U.S.C. 191), notwithstanding any provision of law that such
proceeds shall be credited to miscellaneous receipts of the
Treasury. Such moneys shall be used only to carry out the
purposes of this Act and shall be available for expenditure
only when appropriated by the Congress. Any moneys not
appropriated shall remain available in the fund until
appropriated for said purposes: Provided, That appropriations
made pursuant to this paragraph may be made without fiscal year
limitation.] To carry out the provisions of this Act, there is
hereby established the Historic Preservation Fund (hereinafter
referred to as the ``fund'') in the Treasury of the United
States. There shall be covered into the fund $150,000,000 for
fiscal years 1982 through 2040 from revenues due and payable to
the United States under the Outer Continental Shelf Lands Act
(67 Stat. 462, 469), as amended (43 U.S.C. 1338) and/or under
the Act of June 4, 1920 (41 Stat. 813), as amended (30 U.S.C.
191), notwithstanding any provision of law that such proceeds
shall be credited to miscellaneous receipts of the Treasury.
Such moneys shall be used only to carry out the purposes of
this Act and shall be available for expenditure without further
appropriation.
----------
NAVAL PETROLEUM RESERVES PRODUCTION ACT OF 1976
* * * * * * *
TITLE I--NATIONAL PETROLEUM RESERVE IN ALASKA
* * * * * * *
SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.
(a) * * *
* * * * * * *
(i) Terms.--
(1) * * *
[(2) Renewal of leases with discoveries.--At the end
of the primary term of a lease the Secretary shall
renew for an additional 10-year term a lease that does
not meet the requirements of paragraph (1) if the
lessee submits to the Secretary an application for
renewal not later than 60 days before the expiration of
the primary lease and the lessee certifies, and the
Secretary agrees, that hydrocarbon resources were
discovered on one or more wells drilled on the leased
land in such quantities that a prudent operator would
hold the lease for potential future development.
[(3) Renewal of leases without discoveries.--At the
end of the primary term of a lease the Secretary shall
renew for an additional 10-year term a lease that does
not meet the requirements of paragraph (1) if the
lessee submits to the Secretary an application for
renewal not later than 60 days before the expiration of
the primary lease and pays the Secretary a renewal fee
of $100 per acre of leased land, and--
[(A) the lessee provides evidence, and the
Secretary agrees that, the lessee has
diligently pursued exploration that warrants
continuation with the intent of continued
exploration or future potential development of
the leased land; or
[(B) all or part of the lease--
[(i) is part of a unit agreement
covering a lease described in
subparagraph (A); and
[(ii) has not been previously
contracted out of the unit.
[(4) Applicability.--This subsection applies to a
lease that is in effect on or after the date of
enactment of the Energy Policy Act of 2005.
[(5) Expiration for failure to produce.--
Notwithstanding any other provision of this Act, if no
oil or gas is produced from a lease within 30 years
after the date of the issuance of the lease the lease
shall expire.
[(6) Termination.--No lease issued under this section
covering lands capable of producing oil or gas in
paying quantities shall expire because the lessee fails
to produce the same due to circumstances beyond the
control of the lessee.]
* * * * * * *
[(k) Exploration Incentives.--
[(1) In general.--
[(A) Waiver, suspension, or reduction.--To
encourage the greatest ultimate recovery of oil
or gas or in the interest of conservation, the
Secretary may waive, suspend, or reduce the
rental fees or minimum royalty, or reduce the
royalty on an entire leasehold (including on
any lease operated pursuant to a unit
agreement), whenever (after consultation with
the State of Alaska and the North Slope Borough
of Alaska and the concurrence of any Regional
Corporation for leases that include land that
was made available for acquisition by the
Regional Corporation under the provisions of
section 1431(o) of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3101 et
seq.)) in the judgment of the Secretary it is
necessary to do so to promote development, or
whenever in the judgment of the Secretary the
leases cannot be successfully operated under
the terms provided therein.
[(B) Applicability.--This paragraph applies
to a lease that is in effect on or after the
date of enactment of the Energy Policy Act of
2005..
[(2) Suspension of operations and production.--The
Secretary may direct or assent to the suspension of
operations and production on any lease or unit.
[(3) Suspension of payments.--If the Secretary, in
the interest of conservation, shall direct or assent to
the suspension of operations and production on any
lease or unit, any payment of acreage rental or minimum
royalty prescribed by such lease or unit likewise shall
be suspended during the period of suspension of
operations and production, and the term of such lease
shall be extended by adding any such suspension period
to the lease.]
* * * * * * *
----------
NATIONAL WILDLIFE REFUGE SYSTEM ADMINISTRATION ACT OF 1966
* * * * * * *
Sec. 4. (a) * * *
* * * * * * *
(p) Destruction or Loss Of, or Injury To, Refuge Resources.--
(1) Liability.--
(A) Liability to united states.--Any person
who destroys, causes the loss of, or injures
any refuge resource is liable to the United
States for an amount equal to the sum of--
(i) the amount of the response costs
and damages resulting from the
destruction, loss, or injury; and
(ii) interest on that amount
calculated in the manner described
under section1005 of the Oil Pollution
Act of 1990 (33 U.S.C. 2705).
(B) Liability in rem.--Any instrumentality,
including a vessel, vehicle, aircraft, or other
equipment, that destroys, causes the loss of,
or injures any refuge resource shall be liable
in rem to the United States for response costs
and damages resulting from such destruction,
loss, or injury to the same extent as a person
is liable under subparagraph (A).
(C) Defenses.--A person is not liable under
this paragraph if that person establishes
that--
(i) the destruction or loss of, or
injury to, the refuge resource was
caused solely by an act of God, an act
of war, or an act or omission of a
third party, and the person acted with
due care;
(ii) the destruction, loss, or injury
was caused by an activity authorized by
Federal or State law; or
(iii) the destruction, loss, or
injury was negligible.
(D) Limits to liability.--Nothing in sections
30501 to 30512 or section 30706 of title 46,
United States Code, shall limit the liability
of any person under this section.
(2) Response actions.--The Secretary may undertake or
authorize all necessary actions to prevent or minimize
the destruction or loss of, or injury to, refuge
resources, or to minimize the imminent risk of such
destruction, loss, or injury.
(3) Civil actions for response costs and damages.--
(A) In general.--The Attorney General, upon
request of the Secretary, may commence a civil
action against any person or instrumentality
who may be liable under paragraph (1) for
response costs and damages. The Secretary,
acting as trustee for refuge resources for the
United States, shall submit a request for such
an action to the Attorney General whenever a
person may be liable for such costs or damages.
(B) Jurisdiction and venue.--An action under
this subsection may be brought in the United
States district court for any district in
which--
(i) the defendant is located,
resides, or is doing business, in the
case of an action against a person;
(ii) the instrumentality is located,
in the case of an action against an
instrumentality; or
(iii) the destruction of, loss of, or
injury to a refuge resource occurred.
(4) Use of recovered amounts.--Response costs and
damages recovered by the Secretary under this
subsection shall be retained by the Secretary in the
manner provided for in section 107(f)(1) of the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9607(f)(1)) and used
as follows:
(A) Response costs.--Amounts recovered by the
United States for costs of response actions and
damage assessments under this subsection shall
be used, as the Secretary considers
appropriate--
(i) to reimburse the Secretary or any
other Federal or State agency that
conducted those activities; and
(ii) after reimbursement of such
costs, to restore, replace, or acquire
the equivalent of any refuge resource.
(B) Other amounts.--All other amounts
recovered shall be used, in order of priority--
(i) to restore, replace, or acquire
the equivalent of the refuge resources
that were the subject of the action,
including the costs of monitoring the
refuge resources;
(ii) to restore degraded refuge
resources of the refuge that was the
subject of the action, giving priority
to refuge resources that are comparable
to the refuge resources that were the
subject of the action; and
(iii) to restore degraded refuge
resources of other refuges.
(5) Definitions.--In this subsection, the term--
(A) ``damages'' includes--
(i) compensation for--
(I)(aa) the cost of
replacing, restoring, or
acquiring the equivalent of a
refuge resource; and
(bb) the value of the lost
use of a refuge resource
pending its restoration or
replacement or the acquisition
of an equivalent refuge
resource; or
(II) the value of a refuge
resource if the refuge resource
cannot be restored or replaced
or if the equivalent of such
resource cannot be acquired;
(ii) the cost of conducting damage
assessments;
(iii) the reasonable cost of
monitoring appropriate to the injured,
restored, or replaced refuge resource;
and
(iv) the cost of enforcement actions
undertaken by the Secretary in response
to the destruction or loss of, or
injury to, a refuge resource;
(B) ``response costs'' means the costs of
actions taken or authorized by the Secretary to
minimize destruction or loss of, or injury to,
refuge resources, or to minimize the imminent
risks of such destruction, loss, or injury,
including costs related to seizure, forfeiture,
storage, or disposal arising from liability, or
to monitor ongoing effects of incidents causing
such destruction, loss, or injury under this
subsection; and
(C) ``refuge resource'' means any living or
nonliving resource of a refuge that contributes
to the conservation, management, and
restoration mission of the System, including
living or nonliving resources of a marine
national monument that may be managed as a unit
of the System.
* * * * * * *
----------
COASTAL ZONE MANAGEMENT ACT OF 1972
* * * * * * *
SEC. 320. STRENGTHENING COASTAL STATE OIL SPILL RESPONSE AND PLANNING.
(a) Grants to States.--The Secretary may make grants to
eligible coastal states--
(1) to revise management programs approved under
section 306 (16 U.S.C. 1455) to identify and implement
new enforceable policies and procedures to ensure
sufficient response capabilities at the state level to
address the environmental, economic and social impacts
of oil spills or other accidents resulting from Outer
Continental Shelf energy activities with the potential
to affect any land or water use or natural resource of
the coastal zone; and
(2) to review and revise where necessary applicable
enforceable policies within approved state management
programs affecting coastal energy activities and energy
to ensure that these policies are consistent with--
(A) other emergency response plans and
policies developed under Federal or State law;
and
(B) new policies and procedures developed
under paragraph (1); and
(3) after a State has adopted new or revised
enforceable policies and procedures under paragraphs
(1) and (2)--
(A) the State shall submit the policies and
procedures to the Secretary; and
(B) the Secretary shall notify the State
whether the Secretary approves or disapproves
the incorporation of the policies and
procedures into the State's management program
pursuant to section 306(e).
(b) Elements.--New enforceable policies and procedures
developed by coastal states with grants awarded under this
section shall consider, but not be limited to--
(1) other existing emergency response plans,
procedures and enforceable policies developed under
other Federal or State law that affect the coastal
zone;
(2) identification of critical infrastructure
essential to facilitate spill or accident response
activities;
(3) identification of coordination, logistics and
communication networks between Federal and State
government agencies, and between State agencies and
affected local communities, to ensure the efficient and
timely dissemination of data and other information;
(4) inventories of shore locations and infrastructure
and equipment necessary to respond to oil spills or
other accidents resulting from Outer Continental Shelf
energy activities;
(5) identification and characterization of
significant or sensitive marine ecosystems or other
areas possessing important conservation, recreational,
ecological, historic, or aesthetic values;
(6) inventories and surveys of shore locations and
infrastructure capable of supporting alternative energy
development; and
(7) other information or actions as may be necessary.
(c) Guidelines.--The Secretary shall, within 180 days after
the date of enactment of this section and after consultation
with the coastal states, publish guidelines for the application
for and use of grants under this section.
(d) Participation.--A coastal state shall provide opportunity
for public participation in developing new enforceable policies
and procedures under this section pursuant to sections
306(d)(1) and 306(e), especially by relevant Federal agencies,
other coastal state agencies, local governments, regional
organizations, port authorities, and other interested parties
and stakeholders, public and private, that are related to, or
affected by Outer Continental Shelf energy activities.
(e) Annual Grants.--
(1) In general.--For each of fiscal years 2011
through 2015, the Secretary may make a grant to a
coastal state to develop new enforceable polices and
procedures as required under this section.
(2) Grant amounts and limit on awards.--The amount of
any grant to any one coastal State under this section
shall not exceed $750,000 for any fiscal year. No
coastal state may receive more than two grants under
this section.
(3) No state matching contribution required.--As it
is in the national interest to be able to respond
efficiently and effectively at all levels of government
to oil spills and other accidents resulting from Outer
Continental Shelf energy activities, a coastal state
shall not be required to contribute any portion of the
cost of a grant awarded under this section.
(4) Secretarial review and limit on awards.--After an
initial grant is made to a coastal state under this
section, no subsequent grant may be made to that
coastal state under this section unless the Secretary
finds that the coastal state is satisfactorily
developing revisions to address offshore energy
impacts. No coastal state is eligible to receive grants
under this section for more than 2 fiscal years.
(f) Applicability.--The requirements of this section shall
only apply if appropriations are provided to the Secretary to
make grants under this section. This section shall not be
construed to convey any new authority to any coastal state, or
repeal or supersede any existing authority of any coastal
state, to regulate the siting, licensing, leasing, or
permitting of energy facilities in areas of the Outer
Continental Shelf under the administration of the Federal
Government. Nothing in this section repeals or supersedes any
existing coastal state authority.
(g) Assistance by the Secretary.--The Secretary as authorized
under section 310(a) and to the extent practicable, shall make
available to coastal states the resources and capabilities of
the National Oceanic and Atmospheric Administration to provide
technical assistance to the coastal states to prepare revisions
to approved management programs to meet the requirements under
this section.
----------
GEOTHERMAL STEAM ACT OF 1970
* * * * * * *
SEC. 4. LEASING PROCEDURES.
(a) * * *
(b) Competitive Lease Sale Required.--
(1) * * *
* * * * * * *
(4) Adjoining lands.--
(A) In general.--An area of qualified Federal
lands that adjoins other lands for which a
qualified lessee holds a legal right to develop
geothermal resources may be available for
noncompetitive lease under this section to the
qualified lessee at the fair market value per
acre, if--
(i) the area of qualified Federal
lands--
(I) consists of not less than
1 acre, and not more than 640
acres; and
(II) is not already leased
under this Act or nominated to
be leased under subsection (a);
(ii) the qualified lessee has not
previously received a noncompetitive
lease under this paragraph in
connection with the valid discovery for
which data has been submitted under
subclause (I) of clause (iii); and
(iii) sufficient geological and other
technical data prepared by a qualified
geothermal professional has been
submitted by the qualified lessee to
the relevant Federal land management
agency that would engender a belief in
individuals who are experienced in the
subject matter that--
(I) there is a valid
discovery of geothermal
resources on the lands for
which the qualified lessee
holds the legal right to
develop geothermal resources;
and
(II) such thermal feature
extends into the adjoining
areas.
(B) Determination of fair market value.--
(i) In general.--The Secretary
shall--
(I) publish a notice of any
request to lease land under
this paragraph;
(II) determine fair market
value for purposes of this
paragraph in accordance with
procedures for making such
determinations that are
established by regulations
issued by the Secretary;
(III) provide to a qualified
lessee and publish any proposed
determination under this
subparagraph of the fair market
value of an area that the
qualified lessee seeks to lease
under this paragraph;
(IV) provide to such
qualified lessee the
opportunity to appeal such
proposed determination within
the 30-day period after it is
provided to the qualified
lessee; and
(V) provide to any interested
member of the public the
opportunity to appeal such
proposed determination in
accordance with the process set
forth in parts 4, 1840, and
3200.5 of title 43, Code of
Federal Regulations (as in
effect on the date of enactment
of the Geothermal Production
Expansion Act) within the 30-
day period after it published.
(ii) Limitation on nomination.--After
publication of a notice of request to
lease land under this paragraph, the
Secretary may not accept under
subsection (a) any nomination of the
land for leasing unless the request has
been denied or withdrawn.
(iii) Regulations: deadline;
publication of proposed regulations.--
The regulations required under clause
(i) shall be issued by not later than
90 days after the date of enactment of
this Act, and after publication of, and
an opportunity for public comment on,
the proposed regulations.
(C) Definitions.--In this paragraph--
(i) the term ``fair market value per
acre'' means a dollar amount per acre
that--
(I) except as provided in
this clause, shall be equal to
the market value per acre as
determined by the Secretary
under regulations under this
paragraph;
(II) shall be determined by
the Secretary with respect to a
lease under this paragraph, by
not later than the end of the
90-day period beginning on the
date the Secretary receives an
application for the lease; and
(III) shall be not less than
the greater of--
(aa) four times the
median amount paid per
acre for all lands
leased under this Act
in the preceding year;
or
(bb) $50;
(ii) the term ``industry
standards'' means the standards by
which a qualified geothermal
professional assesses whether downhole
or flowing temperature measurements
with indications of permeability are
sufficient to produce energy from
geothermal resources as determined
through flow or injection testing or
measurement of lost circulation while
drilling;
(iii) the term ``qualified Federal
lands'' means lands that are otherwise
available for leasing under this Act;
(iv) the term ``qualified geothermal
professional'' means an individual who
is an engineer or geoscientist in good
professional standing with at least
five years of experience in geothermal
exploration, development, project
assessment, or any combination of the
forgoing;
(v) the term ``qualified lessee''
means a person that may hold a
geothermal lease under part 3202.10 of
title 43, Code of Federal Regulations,
as in effect on the date of enactment
of the Geothermal Production Expansion
Act; and
(vi) the term ``valid discovery''
means a discovery of a geothermal
resource by a new or existing slim hole
or production well, that exhibits
downhole or flowing temperature
measurements with indications of
permeability sufficient to meet
industry standards.
* * * * * * *
DISSENTING VIEWS
When it comes to the Gulf oil spill, it couldn't be clearer
what the focus of Congress should be right now: making certain
the well is permanently capped, the oil is cleaned up, BP is
held fully responsible, that the people of the Gulf states get
all the support they need, and that we get to the bottom of
what happened so we can make the informed and complete reforms
needed to ensure American offshore drilling is the safest in
the world.
Unfortunately, this bill does not have this focus and does
not achieve these priorities. In fact, what this bill actually
does is totally ignore efforts to get to the bottom of why this
spill happened. And it uses the oil spill as an opportunity to
try and pass page after page of new rules and laws on matters
totally unrelated to the oil spill or offshore drilling.
This bill makes major rewrites to offshore drilling
policies without knowing the results of the numerous ongoing
investigations. Reforms are clearly needed, but Congress
shouldn't get ahead of the facts. To ensure it makes the right
reforms, Congress must first know exactly what caused and
contributed to this disaster. There is so much that isn't yet
known. For example, the fail safe device of the Deepwater
Horizon rig--the blowout preventer--is still a mile under the
ocean. Specific changes to the law may be needed relating to
blowout preventer devices, but how do we know what changes are
needed if the failed equipment hasn't yet been retrieved or
examined? Why have a Presidential Commission, and why did the
House pass bills giving the Commission subpoena authority and
millions of dollars to do its work, if this bill and the
Committee aren't willing to consider their findings on what
happened? Not to mention the multiple other investigations that
are underway.
Even more outrageous is this bill's attempt to use the oil
spill tragedy as leverage to enact totally unrelated policies
and increase federal spending on unrelated programs by billions
of dollars. What does a solar panel in Nevada, a wind turbine
in Montana, uranium for nuclear power, or a ban on fish farming
have to do with the Gulf spill? Nothing--but the spill is a
good excuse to try and pass otherwise stalled or unpopular new
laws.
This is precisely the motivation behind the
Administration's call to use the oil spill to pass cap-and-
trade legislation and this legislation helps accomplish that
goal. This is supposedly an oil spill bill, but instead it is
loaded up with unrelated programs simply to setup a vehicle to
add a job-killing cap-and-trade national energy tax. Where is
the assurance and promise that the Waxman-Markey or Kerry-
Lieberman national energy tax bills won't ride this legislation
over the finish line? There isn't any. What we do have is a
prime time Oval Office speech by the President where he
outlined his support for just such a plan.
And all of these changes in the bill--those that refuse to
wait for the facts on what caused this tragedy, and those that
seek to monopolize on the disaster to enact new, unrelated
policies and spending--there is no understanding of what impact
they will have on jobs and the economy. In these tough economic
times and with the Gulf Coast already reeling from the spill,
Congress should know what effect proposed new laws would have
on American jobs, the economy, and hurting Gulf Coast families
and communities. Congress should be acting to improve the
situation in the Gulf, not make it worse. Congress must take
the care to ensure that reforms, especially the many premature
and unrelated ones in this bill, will not cause greater
economic damage than what is already being felt in the Gulf and
across the nation.
At the Committee markup of this bill, Republicans attempted
to refocus this bill on the primary goals of restoring the Gulf
and reorganizing the former Minerals Management Service. The
restoration of the Gulf is a step that Congress can take now,
and the reorganization is a step that Congress can take now.
The rest of the original bill are either steps that are
premature while the investigations are taking place, or steps
that have nothing to do with responding to the Gulf disaster.
Congress shouldn't rush ahead of the facts or exploit this oil
spill tragedy.
Doc Hastings.