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115th Congress     }                                         {  Report
                          HOUSE OF REPRESENTATIVES
 2d Session        }                                         {  115-1000

======================================================================



 
 STRENGTHENING THE ECONOMY WITH CRITICAL UNTAPPED RESOURCES TO EXPAND 
                          AMERICAN ENERGY ACT

                                _______
                                

November 2, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Bishop of Utah, from the Committee on Natural Resources, submitted 
                             the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 4239]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 4239) to distribute revenues from oil and gas 
leasing on the outer Continental Shelf to certain coastal 
States, to require sale of approved offshore oil and gas 
leases, to promote offshore wind lease sales, and to empower 
States to manage the development and production of oil and gas 
on available Federal land, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Strengthening the 
Economy with Critical Untapped Resources to Expand American Energy 
Act'' or the ``SECURE American Energy Act''.
  (b) Table of Contents.--The table of contents for this Act is the 
following:

Sec. 1. Short title; table of contents.

                           TITLE I--OFFSHORE

Sec. 101. Short title.
Sec. 102. Disposition of revenues from oil and gas leasing on the outer 
Continental Shelf to producing States.
Sec. 103. Limitations on the amount of distributed qualified outer 
Continental Shelf revenues under the Gulf of Mexico Energy Security Act 
of 2006.
Sec. 104. Limitation of authority of the President to withdraw areas of 
the outer Continental Shelf from oil and gas leasing.
Sec. 105. Modification to the outer Continental Shelf leasing program.
Sec. 106. Inspection fee collection.
Sec. 107. Arctic rule shall have no force or effect.
Sec. 108. Application of outer Continental Shelf Lands Act with respect 
to territories of the United States.
Sec. 109. Wind lease sales for the outer Continental Shelf.
Sec. 110. Reducing permitting delays for taking of marine mammals.
Sec. 111. Effect.

                           TITLE II--ONSHORE

Sec. 201. Short title.
Sec. 202. Cooperative federalism in oil and gas permitting on available 
Federal land.
Sec. 203. Conveyance to certain States of property interest in State 
share of royalties and other payments.
Sec. 204. Permitting on non-Federal surface estate.
Sec. 205. State and Tribal authority for hydraulic fracturing 
regulation.
Sec. 206. Review of Integrated Activity Plan for the National Petroleum 
Reserve in Alaska.
Sec. 207. Protested lease sales.
Sec. 208. Clarification regarding liability under Migratory Bird Treaty 
Act.

                           TITLE I--OFFSHORE

SEC. 101. SHORT TITLE.

  This title may be cited as the ``Accessing Strategic Resources 
Offshore Act'' or the ``ASTRO'' Act.

SEC. 102. DISPOSITION OF REVENUES FROM OIL AND GAS LEASING ON THE OUTER 
                    CONTINENTAL SHELF TO PRODUCING STATES.

  Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended--
          (1) by striking ``All rentals'' and inserting the following:
  ``(a) In General.--Except as otherwise provided in this section, all 
rentals''; and
          (2) by adding at the end the following:
  ``(b) Distribution of Revenue to Producing States.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Covered planning area.--
                          ``(i) In general.--Subject to clause (ii), 
                        the term `covered planning area' means each of 
                        the following planning areas, as such planning 
                        areas are generally depicted in the later of 
                        the 2017-2022 Outer Continental Shelf Oil and 
                        Gas Leasing Proposed Final Program, dated 
                        November 2016, or a subsequent oil and gas 
                        leasing program developed under section 18 of 
                        the Outer Continental Shelf Lands Act (43 
                        U.S.C. 1344):
                                  ``(I) Mid-Atlantic.
                                  ``(II) South Atlantic.
                                  ``(III) Any planning area located off 
                                the coast of Alaska.
                          ``(ii) Exclusions.--The term `covered 
                        planning area' does not include any area in the 
                        Atlantic--
                                  ``(I) north of the southernmost 
                                lateral seaward administrative boundary 
                                of the State of Maryland; or
                                  ``(II) south of the northernmost 
                                lateral seaward administrative boundary 
                                of the State of Florida.
                  ``(B) Producing state.--The term `producing State' 
                means each of the following States:
                          ``(i) Virginia.
                          ``(ii) North Carolina.
                          ``(iii) South Carolina.
                          ``(iv) Georgia.
                          ``(v) Alaska.
                  ``(C) Qualified revenues.--
                          ``(i) In general.--The term `qualified 
                        revenues' means revenues derived from rentals, 
                        royalties, bonus bids, and other sums due and 
                        payable to the United States under oil and gas 
                        leases entered into on or after the date of the 
                        enactment of this Act for an area in a covered 
                        planning area.
                          ``(ii) Exclusions.--The term `qualified 
                        revenues' does not include--
                                  ``(I) revenues from the forfeiture of 
                                a bond or other surety securing 
                                obligations other than royalties, civil 
                                penalties, or royalties taken by the 
                                Secretary in-kind and not sold;
                                  ``(II) revenues generated from leases 
                                subject to section 8(g); and
                                  ``(III) the portion of rental 
                                revenues in excess of those that would 
                                have been collected at the rental rates 
                                in effect before August 5, 1993.
          ``(2) Deposit of qualified revenues.--
                  ``(A) Phase i.--With respect to qualified revenues 
                under leases awarded under the first leasing program 
                approved under section 18(a) that takes effect after 
                the date of the enactment of this section, the 
                Secretary of the Treasury shall deposit or allocate, as 
                applicable--
                          ``(i) 87.5 percent into the general fund of 
                        the Treasury; and
                          ``(ii) 12.5 percent to States in accordance 
                        with paragraph (3).
                  ``(B) Phase ii.--With respect to qualified revenues 
                under leases awarded under the second leasing program 
                approved under section 18(a) that takes effect after 
                the date of the enactment of this section, the 
                Secretary of the Treasury shall deposit or allocate, as 
                applicable--
                          ``(i) 75 percent into the general fund of the 
                        Treasury; and
                          ``(ii) 25 percent to States in accordance 
                        with paragraph (3).
                  ``(C) Phase iii.--With respect to qualified revenues 
                under leases awarded under the third leasing program 
                approved under section 18(a) that takes effect after 
                the date of the enactment of this section and under any 
                such leasing program subsequent to such third leasing 
                program, the Secretary of the Treasury shall deposit or 
                allocate, as applicable--
                          ``(i) 50 percent into the general fund of the 
                        Treasury; and
                          ``(ii) 50 percent into a special account in 
                        the Treasury from which the Secretary of the 
                        Treasury shall disburse--
                                  ``(I) 75 percent to States in 
                                accordance with paragraph (3);
                                  ``(II) 12.5 percent to the Secretary 
                                of Transportation for energy 
                                infrastructure development in coastal 
                                ports; and
                                  ``(III) 12.5 percent to the Secretary 
                                of the Interior for units of the 
                                National Park System.
          ``(3) Allocation to producing states.--
                  ``(A) In general.--Subject to subparagraph (B), the 
                Secretary of the Treasury shall allocate the qualified 
                revenues distributed to States under paragraph (2) to 
                each producing State in an amount based on a formula 
                established by the Secretary of the Interior, by 
                regulation, that--
                          ``(i) is inversely proportional to the 
                        respective distances between--
                                  ``(I) the point on the coastline of 
                                the producing State that is closest to 
                                the geographical center of the 
                                applicable leased tract; and
                                  ``(II) the geographical center of 
                                that leased tract;
                          ``(ii) does not allocate qualified revenues 
                        to any producing State that is further than 200 
                        nautical miles from the leased tract; and
                          ``(iii) allocates not less than 10 percent of 
                        qualified revenues to each producing State that 
                        is 200 or fewer nautical miles from the leased 
                        tract.
                  ``(B) Payments to coastal political subdivisions.--
                          ``(i) In general.--The Secretary of the 
                        Treasury shall pay 20 percent of the allocable 
                        share of each producing State determined under 
                        this paragraph to the coastal political 
                        subdivisions of the producing State.
                          ``(ii) Allocation.--The amount paid by the 
                        Secretary of the Treasury to coastal political 
                        subdivisions shall be allocated to each coastal 
                        political subdivision in accordance with 
                        subparagraphs (B) and (E) of section 31(b)(4).
                          ``(iii) Definition of coastal political 
                        subdivision.--In this subparagraph, the term 
                        `coastal political subdivision' means--
                                  ``(I) with respect to a contiguous 
                                coastal State, a political subdivision 
                                of such State, any part of which is--
                                          ``(aa) within the coastal 
                                        zone of the State (as defined 
                                        in section 304 of the Coastal 
                                        Zone Management 2 Act of 1972 
                                        (16 U.S.C. 1453)); and
                                          ``(bb) not more than 200 
                                        nautical miles from the 
                                        geographic center of any leased 
                                        tract; and
                                  ``(II) with respect to a 
                                noncontiguous coastal State--
                                          ``(aa) a county-equivalent 
                                        subdivision of the State for 
                                        which--
                                                  ``(AA) all or part 
                                                lies within the coastal 
                                                zone of the State (as 
                                                defined in section 304 
                                                of the Coastal Zone 
                                                Management Act of 1972 
                                                (16 U.S.C. 1453)); and
                                                  ``(BB) the closest 
                                                coastal point is not 
                                                more than 200 nautical 
                                                miles from the 
                                                geographical center of 
                                                any leased tract on the 
                                                outer Continental 
                                                Shelf; or
                                          ``(bb) a municipal 
                                        subdivision of the State for 
                                        which--
                                                  ``(AA) the closest 
                                                point is more than 200 
                                                nautical miles from the 
                                                geographical center of 
                                                a leased tract on the 
                                                outer Continental 
                                                Shelf; and
                                                  ``(BB) the State has 
                                                determined to be a 
                                                significant staging 
                                                area for oil and gas 
                                                servicing, supply 
                                                vessels, operations, 
                                                suppliers, or workers.
          ``(4) Administration.--Amounts made available under paragraph 
        (2)(B) shall--
                  ``(A) be made available, without further 
                appropriation, in accordance with this subsection;
                  ``(B) remain available until expended;
                  ``(C) be in addition to any amounts appropriated 
                under--
                          ``(i) chapter 2003 of title 54, United States 
                        Code;
                          ``(ii) any other provision of this Act; and
                          ``(iii) any other provision of law; and
                  ``(D) be made available during the fiscal year 
                immediately following the fiscal year in which such 
                amounts were received.''.

SEC. 103. LIMITATIONS ON THE AMOUNT OF DISTRIBUTED QUALIFIED OUTER 
                    CONTINENTAL SHELF REVENUES UNDER THE GULF OF MEXICO 
                    ENERGY SECURITY ACT OF 2006.

  Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006 
(43 U.S.C. 1331 note) is amended to read as follows:
          ``(1) In general.--The total amount of qualified outer 
        Continental Shelf revenues described in section 102(9)(A)(ii) 
        that are made available under subsection (a)(2) shall remain 
        available until expended and shall not exceed--
                  ``(A) for each of fiscal years 2019 through 2028, 
                $500,000,000; and
                  ``(B) for each of fiscal years 2029 through 2059, 
                $649,800,000.''.

SEC. 104. LIMITATION OF AUTHORITY OF THE PRESIDENT TO WITHDRAW AREAS OF 
                    THE OUTER CONTINENTAL SHELF FROM OIL AND GAS 
                    LEASING.

  (a) Limitation on Withdrawal From Disposition of Lands on the Outer 
Continental Shelf.--Section 12 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1341) is amended by amending subsection (a) to read as 
follows:
  ``(a) Limitation on Withdrawal.--
          ``(1) In general.--Except as otherwise provided in this 
        section, no lands of the outer Continental Shelf may be 
        withdrawn from disposition except by an Act of Congress.
          ``(2) National marine sanctuaries.--The President may 
        withdraw from disposition any of the unleased lands of the 
        outer Continental Shelf located in a national marine sanctuary 
        designated in accordance with the National Marine Sanctuaries 
        Act (16 U.S.C. 1431 et seq.) or otherwise by statute.
          ``(3) Existing withdrawals.--
                  ``(A) In general.--Except for the withdrawals listed 
                in subparagraph (B), any withdrawal from disposition of 
                lands on the outer Continental Shelf before the date of 
                the enactment of this subsection shall have no force or 
                effect.
                  ``(B) Exceptions.--Subparagraph (A) shall not apply 
                to the following withdrawals:
                          ``(i) Any withdrawal in a national marine 
                        sanctuary designated in accordance with the 
                        National Marine Sanctuaries Act.
                          ``(ii) Any withdrawal in a national monument 
                        declared under section 320301 of title 54, 
                        United States Code, or the Act of June 8, 1906 
                        (ch. 3060; 34 Stat. 225).
                          ``(iii) Any withdrawal in the North Aleutian 
                        Basin Planning Area, including Bristol Bay.''.
  (b) Termination of Authority To Establish Marine National 
Monuments.--Section 320301 of title 54, United States Code, is amended 
by adding at the end the following:
  ``(e) Limitation on Marine National Monuments.--
          ``(1) In general.--Notwithstanding subsections (a) and (b), 
        the President may not declare or reserve any ocean waters (as 
        such term is defined in section 3 of the Marine Protection, 
        Research, and Sanctuaries Act of 1972 (33 U.S.C. 1402)) or 
        lands beneath ocean waters as a national monument.
          ``(2) Marine national monuments designated before the date of 
        the enactment of this subsection.--This subsection shall not 
        affect any national monument designated by the President before 
        the date of the enactment of this Act.''.

SEC. 105. MODIFICATION TO THE OUTER CONTINENTAL SHELF LEASING PROGRAM.

  Section 18(e) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344(e)) is amended by adding at the end the following: ``The Secretary 
shall include in any such revised leasing program each unexecuted lease 
sale that was included in the most recent leasing program and the 
Secretary shall execute each such lease sale as close as practicable to 
the time specified in the most recent leasing program. Section 
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332) shall be deemed to have been satisfied with respect to the 
execution of such unexecuted lease sales if the Secretary, in the 
Secretary's sole discretion, determines that such section was satisfied 
with respect to such unexecuted lease sales for the most recent leasing 
program.''.

SEC. 106. INSPECTION FEE COLLECTION.

  Section 22 of the Outer Continental Shelf Lands Act (43 U.S.C. 1348) 
is amended by adding at the end the following:
  ``(g) Inspection Fees.--
          ``(1) Establishment.--The Secretary of the Interior shall 
        collect from the operators of facilities subject to inspection 
        under subsection (c) non-refundable fees for such inspections--
                  ``(A) at an aggregate level equal to the amount 
                necessary to offset the annual expenses of inspections 
                of outer Continental Shelf facilities (including mobile 
                offshore drilling units) by the Secretary of the 
                Interior; and
                  ``(B) using a schedule that reflects the differences 
                in complexity among the classes of facilities to be 
                inspected.
          ``(2) Ocean energy safety fund.--There is established in the 
        Treasury a fund, to be known as the `Ocean Energy Safety Fund' 
        (referred to in this subsection as the `Fund'), into which 
        shall be deposited all amounts collected as fees under 
        paragraph (1) and which shall be available as provided under 
        paragraph (3).
          ``(3) Availability of fees.--
                  ``(A) In general.--Notwithstanding section 3302 of 
                title 31, United States Code, all amounts deposited in 
                the Fund--
                          ``(i) shall be credited as offsetting 
                        collections;
                          ``(ii) shall be available for expenditure for 
                        purposes of carrying out inspections of outer 
                        Continental Shelf facilities (including mobile 
                        offshore drilling units) and the administration 
                        of the inspection program under this section;
                          ``(iii) shall be available only to the extent 
                        provided for in advance in an appropriations 
                        Act; and
                          ``(iv) shall remain available until expended.
                  ``(B) Use for field offices.--Not less than 75 
                percent of amounts in the Fund may be appropriated for 
                use only for the respective Department of the Interior 
                field offices where the amounts were originally 
                assessed as fees.
          ``(4) Initial fees.--Fees shall be established under this 
        subsection for the fiscal year in which this subsection takes 
        effect and the subsequent 10 years, and shall not be raised, 
        except as determined by the Secretary to be appropriate as an 
        adjustment equal to the percentage by which the Consumer Price 
        Index for the month of June of the calendar year preceding the 
        adjustment exceeds the Consumer Price Index for the month of 
        June of the calendar year in which the fee was determined or 
        last adjusted.
          ``(5) Annual fees.--Annual fees shall be collected under this 
        subsection for facilities that are above the waterline, 
        excluding drilling rigs, and are in place at the start of the 
        fiscal year. Fees for fiscal year 2019 shall be--
                  ``(A) $10,500 for facilities with no wells, but with 
                processing equipment or gathering lines;
                  ``(B) $17,000 for facilities with 1 to 10 wells, with 
                any combination of active or inactive wells; and
                  ``(C) $31,500 for facilities with more than 10 wells, 
                with any combination of active or inactive wells.
          ``(6) Fees for drilling rigs.--Fees shall be collected under 
        this subsection for drilling rigs on a per inspection basis. 
        Fees for fiscal year 2019 shall be--
                  ``(A) $30,500 per inspection for rigs operating in 
                water depths of 1,000 feet or more; and
                  ``(B) $16,700 per inspection for rigs operating in 
                water depths of less than 1,000 feet.
          ``(7) Billing.--The Secretary shall bill designated operators 
        under paragraph (5) annually, with payment required within 30 
        days of billing. The Secretary shall bill designated operators 
        under paragraph (6) within 30 days of the end of the month in 
        which the inspection occurred, with payment required within 30 
        days after billing.
          ``(8) Annual reports.--
                  ``(A) In general.--Not later than 60 days after the 
                end of each fiscal year beginning with fiscal year 2019 
                and ending with fiscal year 2029, the Secretary shall 
                submit to the Committee on Energy and Natural Resources 
                of the Senate and the Committee on Natural Resources of 
                the House of Representatives a report on the operation 
                of the Fund during the fiscal year.
                  ``(B) Contents.--Each report shall include, for the 
                fiscal year covered by the report, the following:
                          ``(i) A statement of the amounts deposited 
                        into the Fund.
                          ``(ii) A description of the expenditures made 
                        from the Fund for the fiscal year, including 
                        the purpose of the expenditures and the 
                        additional hiring of personnel.
                          ``(iii) A statement of the balance remaining 
                        in the Fund at the end of the fiscal year.
                          ``(iv) An accounting of pace of permit 
                        approvals.
                          ``(v) If fee increases are proposed, a proper 
                        accounting of the potential adverse economic 
                        impacts such fee increases will have on 
                        offshore economic activity and overall 
                        production.
                          ``(vi) Recommendations to increase the 
                        efficacy and efficiency of offshore 
                        inspections.
                          ``(vii) Any corrective actions levied upon 
                        offshore inspectors as a result of any form of 
                        misconduct.''.

SEC. 107. ARCTIC RULE SHALL HAVE NO FORCE OR EFFECT.

  The rule entitled ``Oil and Gas and Sulfur Operations on the Outer 
Continental Shelf - Requirements for Exploratory Drilling on the Arctic 
Outer Continental Shelf'' and published in the Federal Register on July 
15, 2016 (81 Fed. Reg. 46478), shall have no force or effect.

SEC. 108. APPLICATION OF OUTER CONTINENTAL SHELF LANDS ACT WITH RESPECT 
                    TO TERRITORIES OF THE UNITED STATES.

  (a) In General.--Section 2 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331) is amended--
          (1) in paragraph (a), by inserting after ``control'' the 
        following: ``or lying within the exclusive economic zone of the 
        United States'';
          (2) in paragraph (p), by striking ``and'' after the semicolon 
        at the end;
          (3) in paragraph (q), by striking the period at the end and 
        inserting ``; and''; and
          (4) by adding at the end the following:
  ``(r) The term `State' includes each territory of the United 
States.''.
  (b) Exclusions.--
          (1) Section 4(a) of the Outer Continental Shelf Lands Act (43 
        U.S.C. 1333) is amended by adding at the end the following:
  ``(4) This section shall not apply to the territories and possessions 
of the United States.''.
          (2) Section 18 of the Outer Continental Shelf Lands Act (43 
        U.S.C. 1344) is amended by adding at the end the following:
  ``(i) This section shall not apply to the scheduling of lease sales 
in the outer Continental Shelf adjacent to the territories and 
possessions of the United States.''.
  (c) Exploration Licenses and Leases.--Section 8(k) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by adding at 
the end the following:
          ``(3) Exploration licenses and leases on outer continental 
        shelf adjacent to territories and possessions.--
                  ``(A) In general.--The Secretary is authorized to 
                grant to any qualified applicant an exploration license 
                which will provide the exclusive right to explore for 
                minerals, other than oil, gas, and sulphur, in an area 
                lying within the United States exclusive economic zone 
                and the outer Continental Shelf adjacent to any 
                territory or possession of the United States.
                  ``(B) Application.--Subsection (a) shall not apply to 
                any area conveyed by Congress to a territorial 
                government for administration.
                  ``(C) Exploration license duration.--Exploration 
                licenses granted under this paragraph will be issued 
                for a period pursuant to regulations prescribed by the 
                Secretary.
                  ``(D) Lease.--Upon showing to the satisfaction of the 
                Secretary that valuable mineral deposits have been 
                discovered by the licensee within the area described by 
                the exploration license of the licensee, the licensee 
                will be entitled to a lease for any or all of that area 
                at a royalty rate established by regulation and lease 
                terms.
                  ``(E) Lease duration.--Leases under this section will 
                be issued for a period established by regulation with a 
                preferential right in the lessee to renew.''.

SEC. 109. WIND LEASE SALES FOR THE OUTER CONTINENTAL SHELF.

  The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is 
amended by adding at the end the following:

``SEC. 33. WIND LEASE SALES FOR THE OUTER CONTINENTAL SHELF.

  ``(a) Authorization.--The Secretary may conduct wind lease sales for 
the outer Continental Shelf.
  ``(b) Wind Lease Sale Procedure.--Any wind lease sale conducted under 
this section shall be considered a lease under section 8(p).
  ``(c) Wind Lease Sale Off Coast of California.--The Secretary, in 
consultation with the Secretary of Defense, shall offer a wind lease 
sale for the outer Continental Shelf off the coast of California as 
soon as practicable, but not later than one year after the date of 
enactment of this section.
  ``(d) Wind Lease Sales Off Coast of Puerto Rico, Virgin Islands of 
the United States, Guam, American Samoa, and the Commonwealth of the 
Northern Mariana Islands.--
          ``(1) Study on feasibility of conducting wind lease sales off 
        coast of puerto rico, virgin islands of the united states, 
        guam, american samoa, and the commonwealth of the northern 
        mariana islands.--
                  ``(A) Study.--The Secretary shall conduct a study on 
                the feasibility, including the long term economic 
                feasibility, of conducting wind lease sales for the 
                outer Continental Shelf off the coast of Puerto Rico, 
                the Virgin Islands of the United States, Guam, American 
                Samoa, and the Commonwealth of the Northern Mariana 
                Islands.
                  ``(B) Submission of results.--Not later than 180 days 
                after the date of the enactment of this section, the 
                Secretary shall submit to Congress the results of the 
                study conducted under subparagraph (A).
          ``(2) Wind lease sales conditional upon results of study.--
                  ``(A) Wind lease sale off coast of puerto rico.--If 
                the study required under paragraph (1)(A) concludes 
                that a wind lease sale for the outer Continental Shelf 
                off the coast of Puerto Rico is feasible, then the 
                Secretary shall offer a wind lease sale for the outer 
                Continental Shelf off the coast of Puerto Rico as soon 
                as practicable, but not later than one year after the 
                date of the enactment of this section.
                  ``(B) Wind lease sale off coast of virgin islands of 
                the united states.--If the study required under 
                paragraph (1)(A) concludes that a wind lease sale for 
                the outer Continental Shelf off the coast of the Virgin 
                Islands of the United States is feasible, then the 
                Secretary shall offer a wind lease sale for the outer 
                Continental Shelf off the coast of the Virgin Islands 
                of the United States as soon as practicable, but not 
                later than one year after the date of the enactment of 
                this section.
                  ``(C) Wind lease sale off coast of guam.--If the 
                study required under paragraph (1)(A) concludes that a 
                wind lease sale for the outer Continental Shelf off the 
                coast of Guam is feasible, then the Secretary shall 
                offer a wind lease sale for the outer Continental Shelf 
                off the coast of Guam as soon as practicable, but not 
                later than one year after the date of the enactment of 
                this section.
                  ``(D) Wind lease sale off coast of american samoa.--
                If the study required under paragraph (1)(A) concludes 
                that a wind lease sale for the outer Continental Shelf 
                off the coast of American Samoa is feasible, then the 
                Secretary shall offer a wind lease sale for the outer 
                Continental Shelf off the coast of American Samoa as 
                soon as practicable, but not later than one year after 
                the date of the enactment of this section.
                  ``(E) Wind lease sale off coast of the commonwealth 
                of the northern mariana islands.--If the study required 
                under paragraph (1)(A) concludes that a wind lease sale 
                for the outer Continental Shelf off the coast of the 
                Commonwealth of the Northern Mariana Islands is 
                feasible, then the Secretary shall offer a wind lease 
                sale for the outer Continental Shelf off the coast of 
                the Commonwealth of the Northern Mariana Islands as 
                soon as practicable, but not later than one year after 
                the date of the enactment of this section.
  ``(e) Wind Lease Sale Off Coast of Hawaii.--
          ``(1) Study on feasibility of conducting wind lease sales off 
        coast of the state of hawaii.--
                  ``(A) Study.--The Secretary, in consultation with the 
                Secretary of Defense, shall conduct a study on the 
                feasibility of conducting wind lease sales for the 
                outer Continental Shelf off the coast of the State of 
                Hawaii.
                  ``(B) Submission of results.--Not later than 180 days 
                after the date of the enactment of this section, the 
                Secretary shall submit to Congress the results of the 
                study conducted under subparagraph (A).
          ``(2) Wind lease sales conditional upon results of study.--If 
        the study required under paragraph (1)(A) concludes that a wind 
        lease sale for the outer Continental Shelf off the coast of the 
        State of Hawaii is feasible, then the Secretary shall offer a 
        wind lease sale for the outer Continental Shelf off the coast 
        of the State of Hawaii as soon as practicable, but not later 
        than one year after the date of the enactment of this 
        section.''.

SEC. 110. REDUCING PERMITTING DELAYS FOR TAKING OF MARINE MAMMALS.

  (a) Addressing Permits for Taking of Marine Mammals.--Section 
101(a)(5)(D) of the Marine Mammal Protection Act of 1972 (16 U.S.C. 
1371(a)(5)(D)) is amended as follows:
          (1) In clause (i)--
                  (A) by striking ``citizens of the United States'' and 
                inserting ``persons'';
                  (B) by striking ``within a specific geographic 
                region'';
                  (C) by striking ``of small numbers'';
                  (D) by striking ``such citizens'' and inserting 
                ``such persons''; and
                  (E) by striking ``within that region''.
          (2) In clause (ii)--
                  (A) in subclause (I), by striking ``, and other means 
                of effecting the least practicable impact on such 
                species or stock and its habitat'';
                  (B) in subclause (III), by striking ``requirements 
                pertaining to the monitoring and reporting of such 
                taking by harassment, including'' and inserting 
                ``efficient and practical requirements pertaining to 
                the monitoring of such taking by harassment while the 
                activity is being conducted and the reporting of such 
                taking, including, as the Secretary determines 
                necessary,''; and
                  (C) by adding at the end the following:
        ``Any condition imposed pursuant to subclause (I), (II), or 
        (III) may not result in more than a minor change to the 
        specified activity and may not alter the basic design, 
        location, scope, duration, or timing of the specified 
        activity.''.
          (3) In clause (iii), by striking ``receiving an application 
        under this subparagraph'' and inserting ``an application is 
        accepted or required to be considered complete under subclause 
        (I)(aa), (II)(aa), or (IV) of clause (viii), as applicable,''.
          (4) In clause (vi), by striking ``a determination of `least 
        practicable adverse impact on such species or stock' under 
        clause (i)(I)'' and inserting ``conditions imposed under 
        subclause (I), (II), or (III) of clause (ii)''.
          (5) By adding at the end the following:
          ``(viii)(I) The Secretary shall--
                  ``(aa) accept as complete a written request for 
                authorization under this subparagraph for incidental 
                taking described in clause (i), by not later than 45 
                days after the date of submission of the request; or
                  ``(bb) provide to the requester, by not later than 15 
                days after the date of submission of the request, a 
                written notice describing any additional information 
                required to complete the request.
          ``(II) If the Secretary provides notice under subclause 
        (I)(bb), the Secretary shall, by not later than 30 days after 
        the date of submission of the additional information described 
        in the notice--
                  ``(aa) accept the written request for authorization 
                under this subparagraph for incidental taking described 
                in clause (i); or
                  ``(bb) deny the request and provide the requester a 
                written explanation of the reasons for the denial.
          ``(III) The Secretary may not under this subparagraph make a 
        second request for information, request that the requester 
        withdraw and resubmit the request, or otherwise delay a 
        decision on the request.
          ``(IV) If the Secretary fails to respond to a request for 
        authorization under this subparagraph in the manner provided in 
        subclause (I) or (II), the request shall be considered to be 
        complete.
          ``(ix)(I) At least 90 days before the date of the expiration 
        of any authorization issued under this subparagraph, the holder 
        of such authorization may apply for a one-year extension of 
        such authorization. The Secretary shall grant such extension 
        within 14 days after the date of such request on the same terms 
        and without further review if there has been no substantial 
        change in the activity carried out under such authorization nor 
        in the status of the marine mammal species or stock, as 
        applicable, as reported in the final annual stock assessment 
        reports for such species or stock.
          ``(II) In subclause (I) the term `substantial change' means a 
        change that prevents the Secretary from making the required 
        findings to issue an authorization under clause (i) with 
        respect to such species or stock.
          ``(III) The Secretary shall notify the applicant of such 
        substantial changes with specificity and in writing within 14 
        days after the applicant's submittal of the extension request.
          ``(x) If the Secretary fails to make the required findings 
        and, as appropriate, issue the authorization within 120 days 
        after the application is accepted or required to be considered 
        complete under subclause (I)(aa), (II)(aa), or (III) of clause 
        (viii), as applicable, the authorization is deemed to have been 
        issued on the terms stated in the application and without 
        further process or restrictions under this Act.''.
  (b) Removing Duplications.--Section 101(a)(5)(D) of the Marine Mammal 
Protection Act of 1972 (16 U.S.C. 1371(a)(5)(D)), as amended by 
subsection (a), is further amended by adding at the end the following:
          ``(xi) Any taking of a marine mammal in compliance with an 
        authorization under this subparagraph is exempt from the 
        prohibition on taking in section 9 of the Endangered Species 
        Act of 1973 (16 U.S.C. 1538). Any Federal agency authorizing, 
        funding, or carrying out an action that results in such taking, 
        and any agency action authorizing such taking, is exempt from 
        the requirement to consult regarding potential impacts to 
        marine mammal species or designated critical habitat under 
        section 7(a)(2) of such Act (16 U.S.C. 1536(a)(2)).''.
  (c) Transfer of Certain Responsibilities to the Secretary of the 
Interior.--Section 3(12) of the Marine Mammal Protection Act of 1972 
(16 U.S.C. 1362(12)) is amended--
          (1) in subparagraph (A), in the matter preceding clause (i), 
        by striking ``subparagraph (B)'' and inserting ``subparagraphs 
        (B) and (C)''; and
          (2) by adding at the end the following:
                  ``(C) In sections 101(a)(3), 101(a)(5), 103, and 104 
                (16 U.S.C. 1371(a)(3), 1371(a)(5), 1373, and 1374), for 
                activities associated with operations authorized under 
                the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
                et seq.), the term `Secretary' means the Secretary of 
                the Interior with respect to all marine mammals.''.

SEC. 111. EFFECT.

  Nothing in this Act, with respect to the State of Florida, shall be 
construed to modify--
          (1) the moratorium imposed by section 104 of the Gulf of 
        Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note); or
          (2) the 2017-2022 leasing program prepared under section 18 
        of the Outer Continental Shelf Lands Act (43 U.S.C. 1344).

                           TITLE II--ONSHORE

SEC. 201. SHORT TITLE.

  This title may be cited as the ``Opportunities for the Nation and 
States to Harness Onshore Resources for Energy Act'' or the ``ONSHORE 
Act''.

SEC. 202. COOPERATIVE FEDERALISM IN OIL AND GAS PERMITTING ON AVAILABLE 
                    FEDERAL LAND.

  (a) In General.--The Mineral Leasing Act (30 U.S.C. 181 et seq.) is 
amended--
          (1) by redesignating section 44 as section 47; and
          (2) by adding after section 43 the following new section:

``SEC. 44. COOPERATIVE FEDERALISM IN OIL AND GAS PERMITTING ON 
                    AVAILABLE FEDERAL LAND.

  ``(a) Authorizations.--
          ``(1) In general.--Upon receipt of an application under 
        subsection (b), the Secretary may delegate to a State exclusive 
        authority--
                  ``(A) to issue an APD on available Federal land; or
                  ``(B) to approve drilling plans on available Federal 
                land.
          ``(2) Sundry notices.--Any authorization under paragraph (1) 
        may, upon the request of the State, include authority to issue 
        sundry notices.
          ``(3) Inspection and enforcement.--Any authorization under 
        paragraph (1) may, upon the request of the State, include 
        authorization to inspect and enforce an APD or drilling plan, 
        as applicable. An authorization under paragraph (1)(A) shall 
        not affect the ability of the Secretary to collect inspection 
        fees under section 108(d) of the Federal Oil and Gas Royalty 
        Management Act of 1982 (30 U.S.C. 1718(d)).
  ``(b) State Application Process.--
          ``(1) Submission of application.--A State may submit an 
        application under subparagraph (A) or (B) of subsection (a)(1) 
        to the Secretary at such time and in such manner as the 
        Secretary may require.
          ``(2) Content of application.--An application submitted under 
        this subsection shall include--
                  ``(A) a description of the State program that the 
                State proposes to administer under State law; and
                  ``(B) a statement from the Governor or attorney 
                general of such State that the laws of such State 
                provide adequate authority to carry out the State 
                program.
          ``(3) Deadline for approval or disapproval.--Not later than 
        180 days after the date of receipt of an application under this 
        subsection, the Secretary shall approve or disapprove such 
        application.
          ``(4) Criteria for approval.--The Secretary may approve an 
        application received under this subsection only if the 
        Secretary has--
                  ``(A) determined that the State applicant would be at 
                least as effective as the Secretary in issuing APDs or 
                in approving drilling plans, as applicable;
                  ``(B) determined that the State program of the State 
                applicant--
                          ``(i) complies with this Act; and
                          ``(ii) provides for the termination or 
                        modification of an issued APD or approved 
                        drilling plan, as applicable, for cause, 
                        including for--
                                  ``(I) the violation of any condition 
                                of the issued APD or approved drilling 
                                plan;
                                  ``(II) obtaining the issued APD or 
                                approved drilling plan by 
                                misrepresentation; or
                                  ``(III) failure to fully disclose in 
                                the application all relevant facts;
                  ``(C) determined that the State applicant has 
                sufficient administrative and technical personnel and 
                sufficient funding to carry out the State program;
                  ``(D) provided notice to the public, solicited public 
                comment, and held a public hearing within the State;
                  ``(E) determined that approval of the application 
                would not result in decreased royalty payments owed to 
                the United States under section 35(a), except as 
                provided in subsection (e) of that section; and
                  ``(F) in the case of a State applicant seeking 
                authority under subsection (a)(3) to inspect and 
                enforce APDs or drilling plans, as applicable, entered 
                into a memorandum of understanding with a State 
                applicant that delineates the Federal and State 
                responsibilities with respect to such inspection and 
                enforcement.
          ``(5) Disapproval.--If the Secretary disapproves an 
        application submitted under this subsection, then the Secretary 
        shall--
                  ``(A) notify, in writing, the State applicant of the 
                reason for the disapproval and any revisions or 
                modifications necessary to obtain approval; and
                  ``(B) provide any additional information, data, or 
                analysis upon which the disapproval is based.
          ``(6) Resubmittal of application.--A State may resubmit an 
        application under this subsection at any time.
          ``(7) State memorandum of understanding.--Before a State 
        submits an application under this subsection, the Secretary 
        may, at the request of a State, enter into a memorandum of 
        understanding with the State regarding the proposed State 
        program--
                  ``(A) to delineate the Federal and State 
                responsibilities for oil and gas regulations;
                  ``(B) to provide technical assistance; and
                  ``(C) to share best management practices.
  ``(c) Administrative Fees for APDs.--
          ``(1) In general.--A State for which authority has been 
        delegated under subsection (a)(1)(A) may collect a fee for each 
        application for an APD that is submitted to the State.
          ``(2) No collection of fee by secretary.--The Secretary may 
        not collect a fee from the applicant or from the State for an 
        application for an APD that is submitted to a State for which 
        authority has been delegated under subsection (a)(1)(A).
          ``(3) Fee amount.--The fee collected under paragraph (1) 
        shall be less than or equal to the amount of the fee collected 
        by the Secretary under section 35(d)(2)from States for which 
        authority has not been delegated under subsection (a)(1)(A).
          ``(4) Use.--A State shall use 100 percent of the fees 
        collected under this subsection for the administration of the 
        approved State program of the State.
  ``(d) Voluntary Termination of Authority.--A State may voluntarily 
terminate any authority delegated to such State under subsection (a) 
upon providing written notice to the Secretary 60 days in advance. Upon 
expiration of such 60-day period, the Secretary shall resume any 
activities for which authority was delegated to the State under 
subsection (a).
  ``(e) Appeal of Denial of Application for APD or Application for 
Approval of Drilling Plan.--
          ``(1) In general.--If a State for which the Secretary has 
        delegated authority under subsection (a)(1) denies an 
        application for an APD or an application for approval of a 
        drilling plan, the applicant may appeal such decision to the 
        Department of the Interior Office of Hearings and Appeals.
          ``(2) Fee allowed.--The Secretary may charge the applicant a 
        fee for the appeal referred to in paragraph (1).
  ``(f) Federal Administration of State Program.--
          ``(1) Notification.--If the Secretary has reason to believe 
        that a State is not administering or enforcing an approved 
        State program, the Secretary shall notify the relevant State 
        regulatory authority of any possible deficiencies.
          ``(2) State response.--Not later than 30 days after the date 
        on which a State receives notification of a possible deficiency 
        under paragraph (1), the State shall--
                  ``(A) take appropriate action to correct the possible 
                deficiency; and
                  ``(B) notify the Secretary of the action in writing.
          ``(3) Determination.--
                  ``(A) In general.--On expiration of the 30-day period 
                referred to in paragraph (2), if the Secretary 
                determines that a violation of all or any part of an 
                approved State program has resulted from a failure of 
                the State to administer or enforce the approved State 
                program of the State or that the State has not 
                demonstrated its capability and intent to administer or 
                enforce such a program, the Secretary shall issue 
                public notice of such a determination.
                  ``(B) Appeal.--A State may appeal the determination 
                of the Secretary under subparagraph (A) in the 
                applicable United States District Court. The Secretary 
                may not resume activities under paragraph (4) pending 
                the resolution of the appeal.
          ``(4) Resumption by secretary.--If the Secretary has made a 
        determination under paragraph (3), the Secretary shall resume 
        any activities for which authority was delegated to the State 
        during the period--
                  ``(A) beginning on the date on which the Secretary 
                issues the public notice under paragraph (3); and
                  ``(B) ending on the date on which the Secretary 
                determines that the State will administer or enforce, 
                as applicable, the approved State program of the State.
          ``(5) Standing.--States with approved regulatory programs 
        shall have standing to sue the Secretary for any action taken 
        under this subsection.
  ``(g) Definitions.--In this section:
          ``(1) Available federal land.--The term `available Federal 
        land' means any Federal land that--
                  ``(A) is located within the boundaries of a State;
                  ``(B) is not held by the United States in trust for 
                the benefit of a federally recognized Indian Tribe or a 
                member of such an Indian Tribe;
                  ``(C) is not a unit of the National Park System;
                  ``(D) is not a unit of the National Wildlife Refuge 
                System, except for the portion of such unit for which 
                oil and gas drilling is allowed under law;
                  ``(E) is not a congressionally approved wilderness 
                area under the Wilderness Act (16 U.S.C. 1131 et seq.); 
                and
                  ``(F) has been identified as land available for lease 
                or has been leased for the exploration, development, 
                and production of oil and gas--
                          ``(i) by the Bureau of Land Management 
                        under--
                                  ``(I) a resource management plan 
                                under the process provided for in the 
                                Federal Land Policy and Management Act 
                                of 1976 (43 U.S.C. 1701 et seq.); or
                                  ``(II) an integrated activity plan 
                                with respect to the National Petroleum 
                                Reserve in Alaska; or
                          ``(ii) by the Forest Service under a National 
                        Forest management plan under the Forest and 
                        Rangeland Renewable Resources Planning Act of 
                        1974 (16 U.S.C. 1600 et seq.).
          ``(2) Drilling plan.--The term `drilling plan' means a plan 
        described under section 3162.3-1(e) of title 43, Code of 
        Federal Regulations (or successor regulation).
          ``(3) APD.--The term `APD' means a permit--
                  ``(A) that grants authority to drill for oil and gas; 
                and
                  ``(B) for which an application has been received that 
                contains--
                          ``(i) a drilling plan;
                          ``(ii) a surface use plan of operations 
                        described under section 3162.3-1(f) of title 
                        43, Code of Federal Regulations (or successor 
                        regulation);
                          ``(iii) evidence of bond coverage; and
                          ``(iv) such other information as may be 
                        required by applicable orders and notices.
          ``(4) Secretary.--The term `Secretary' means the Secretary of 
        the Interior.
          ``(5) State.--The term `State' means each of the several 
        States.
          ``(6) State applicant.--The term `State applicant' means a 
        State that has submitted an application under subsection (b).
          ``(7) State program.--The term `State program' means a 
        program that provides for a State to--
                  ``(A) issue APDs or approve drilling plans, as 
                applicable, on available Federal land; and
                  ``(B) impose sanctions for violations of State laws, 
                regulations, or any condition of an issued APD or 
                approved drilling plan, as applicable.
          ``(8) Sundry notice.--The term `sundry notice' means a 
        written request--
                  ``(A) to perform work not covered under an APD or 
                drilling plan; or
                  ``(B) for a change to operations covered under a an 
                APD or drilling plan.''.
  (b) Inspection Fees.--Section 108 of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1718) is amended by adding at the end 
the following:
  ``(d) Inspection Fees for Certain States.--
          ``(1) In general.--The Secretary shall conduct inspections of 
        operations under each oil and gas lease. The Secretary shall 
        collect annual nonrefundable inspection fees in the amount 
        specified in paragraph (2), from each designated operator under 
        each oil and gas lease on Federal or Indian land that is 
        subject to inspection under subsection (b) and that is located 
        in a State for which the Secretary has delegated authority 
        under section 44(a)(1)(A) of the Mineral Leasing Act.
          ``(2) Amount.--The amount of the fees collected under 
        paragraph (1) shall be--
                  ``(A) $700 for each lease or unit or communitization 
                agreement with no active or inactive wells, but with 
                surface use, disturbance or reclamation;
                  ``(B) $1,225 for each lease or unit or 
                communitization agreement with 1 to 10 wells, with any 
                combination of active or inactive wells;
                  ``(C) $4,900 for each lease or unit or 
                communitization agreement with 11 to 50 wells, with any 
                combination of active or inactive wells; and
                  ``(D) $9,800 for each lease or unit or 
                communitization agreement with more than 50 wells, with 
                any combination of active or inactive wells.
          ``(3) Onshore energy safety fund.--There is established in 
        the Treasury a fund, to be known as the `Onshore Energy Safety 
        Fund' (referred to in this subsection as the `Fund'), into 
        which shall be deposited all amounts collected as fees under 
        paragraph (1) and which shall be available as provided under 
        paragraph (4).
          ``(4) Availability of fees.--Notwithstanding section 3302 of 
        title 31, United States Code, all amounts deposited in the 
        Fund--
                  ``(A) shall be credited as offsetting collections;
                  ``(B) shall be available for expenditure for purposes 
                of carrying out inspections of onshore oil and gas 
                operations in those States for which the Secretary has 
                delegated authority under section 44(a)(1)(A) of the 
                Mineral Leasing Act;
                  ``(C) shall be available only to the extent provided 
                for in advance in an appropriations Act; and
                  ``(D) shall remain available until expended.
          ``(5) Payment due date.--The Secretary shall require payment 
        of any fee assessed under this subsection within 30 days after 
        the Secretary provides notice of the assessment of the fee 
        after the completion of an inspection.
          ``(6) Penalty.--If a designated operator assessed a fee under 
        this subsection fails to pay the full amount of the fee as 
        prescribed in this subsection, the Secretary may, in addition 
        to utilizing any other applicable enforcement authority, assess 
        civil penalties against the operator under section 109 in the 
        same manner as if this section were a mineral leasing law.
          ``(7) Notification to state of noncompliance.--If, on the 
        basis of any inspection under subsection (b), the Secretary 
        determines that an operator is in noncompliance with the 
        requirements of mineral leasing laws and this chapter, the 
        Secretary shall notify the State of such noncompliance 
        immediately.''.
  (c) Existing Authorities.--Section 390(a) of the Energy Policy Act of 
2005 (42 U.S.C. 15942(a)) is amended--
          (1) by striking ``Action by the Secretary'' and inserting 
        ``The Secretary'';
          (2) by striking ``with respect to any of the activities 
        described in subsection (b) shall be subject to a rebuttable 
        presumption that the use of'' and inserting ``shall apply''; 
        and
          (3) by striking ``would apply if the activity'' and inserting 
        ``for each action described in subsection (b) if the action''.

SEC. 203. CONVEYANCE TO CERTAIN STATES OF PROPERTY INTEREST IN STATE 
                    SHARE OF ROYALTIES AND OTHER PAYMENTS.

  (a) In General.--Section 35 of the Mineral Leasing Act (30 U.S.C. 
191) is amended--
          (1) in the first sentence of subsection (a), by striking 
        ``shall be paid into the Treasury'' and inserting ``shall, 
        except as provided in subsection (e), be paid into the 
        Treasury'';
          (2) in subsection (c)(1), by inserting ``and except as 
        provided in subsection (e)'' before ``, any rentals''; and
          (3) by adding at the end the following:
  ``(e) Conveyance to Certain States of Property Interest in State 
Share.--
          ``(1) In general.--Notwithstanding any other provision of 
        law, on request of a State and in lieu of any payments to the 
        State under subsection (a), the Secretary of the Interior shall 
        convey to the State all right, title, and interest in and to 
        the percentage specified in that subsection for that State that 
        would otherwise be required to be paid into the Treasury under 
        that subsection.
          ``(2) Amount.--Notwithstanding any other provision of law, 
        after a conveyance to a State under paragraph (1), any person 
        shall pay directly to the State any amount owed by the person 
        for which the right, title, and interest has been conveyed to 
        the State under this subsection.
          ``(3) Notice.--The Secretary of the Interior shall promptly 
        provide to each holder of a lease of public land to which 
        subsection (a) applies that is located in a State to which 
        right, title, and interest is conveyed under this subsection 
        notice that--
                  ``(A) the Secretary of the Interior has conveyed to 
                the State all right, title, and interest in and to the 
                amounts referred to in paragraph (1); and
                  ``(B) the leaseholder is required to pay the amounts 
                directly to the State.
          ``(4) Report.--A State that has received a conveyance under 
        this subsection shall report monthly to the Office of Natural 
        Resources Revenue of the Department of the Interior the amount 
        paid to such State pursuant to this subsection.
          ``(5) Application with respect to fogrma.--With respect to 
        the interest conveyed to a State under this subsection from 
        sales, bonuses, royalties (including interest charges), and 
        rentals collected under the Federal Oil and Gas Royalty 
        Management Act of 1983 (30 U.S.C. 1701 et seq.), this 
        subsection shall only apply with respect to States for which 
        the Secretary has delegated any authority under section 
        44(a)(1).''.
  (b) Administrative Costs.--Section 35(b) of the Mineral Leasing Act 
(30 U.S.C. 191(b)) is amended by striking ``In determining'' and 
inserting ``Except with respect to States for which the Secretary has 
delegated any authority under section 44(a)(1), in determining''.
  (c) Conforming Amendment.--Section 205(f) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1735(f)) is amended by 
striking ``All'' in the seventh sentence and inserting ``Subject to 
subsection (e) of section 35 of the Mineral Leasing Act (30 U.S.C. 
191), all''.

SEC. 204. PERMITTING ON NON-FEDERAL SURFACE ESTATE.

  The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by 
inserting after section 44 (as added by section 202(a)(2)) the 
following:

``SEC. 45. PERMITTING ON NON-FEDERAL SURFACE ESTATE.

  ``(a) Permits Not Required for Certain Activities on Non-Federal 
Surface Estate.--The following activities conducted on non-Federal 
surface estate shall not require a Bureau of Land Management drilling 
permit under the Federal Oil and Gas Royalty Management Act of 1982 (30 
U.S.C. 1701 et seq.) or section 3164.1 of title 43, Code of Federal 
Regulations (or successor regulation) and shall not be considered a 
major Federal action under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.):
          ``(1) Oil and gas operations for the exploration for or 
        development or production of oil and gas in a lease or unit or 
        communitization agreement in which the United States holds a 
        mineral ownership interest of 50 percent or less.
          ``(2) Oil and gas operations that may have potential drainage 
        impacts, as determined by the Bureau of Land Management, on oil 
        and gas in which the United States holds a mineral ownership 
        interest.
  ``(b) DOI Notification.--The Secretary of the Interior shall provide 
to each State a map or list indicating Federal mineral ownership within 
that State.
  ``(c) State Notification.--Each State that has issued an APD or 
approved a drilling plan that would impact or extract oil and gas owned 
by the United States shall notify the Secretary of the Interior within 
7 days of issuing an APD.
  ``(d) Royalties.--Nothing in this section shall affect the amount of 
royalties due to the United States under this Act from the production 
of oil and gas or alter the Secretary's authority to conduct audits and 
collect civil penalties pursuant to the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1711 et seq.).
  ``(e) Application.--This section shall only apply with respect to 
States for which the Secretary has delegated any authority under 
section 44(a)(1).''.

SEC. 205. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC FRACTURING 
                    REGULATION.

  The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by 
inserting after section 45 (as added by section 204) the following:

``SEC. 46. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC FRACTURING 
                    REGULATION.

  ``(a) In General.--The Secretary of the Interior shall not enforce 
any Federal regulation, guidance, or permit requirement regarding 
hydraulic fracturing relating to oil, gas, or geothermal production 
activities on or under any land in any State that has regulations, 
guidance, or permit requirements for that activity.
  ``(b) State Authority.--The Secretary of the Interior shall defer to 
State regulations, guidance, and permit requirements for all activities 
regarding hydraulic fracturing relating to oil, gas, or geothermal 
production activities on Federal land.
  ``(c) Transparency of State Regulations.--
          ``(1) In general.--Each State shall submit to the Bureau of 
        Land Management a copy of the regulations of such State that 
        apply to hydraulic fracturing operations on Federal land, 
        including those that require disclosure of chemicals used in 
        hydraulic fracturing operations.
          ``(2) Availability.--The Secretary of the Interior shall make 
        available to the public on the website of the Secretary the 
        regulations submitted under paragraph (1).
  ``(d) Tribal Authority on Trust Land.--The Secretary of the Interior 
shall not enforce any Federal regulation, guidance, or permit 
requirement with respect to hydraulic fracturing on any land held in 
trust or restricted status for the benefit of a federally recognized 
Indian Tribe or a member of such an Indian Tribe, except with the 
express consent of the beneficiary on whose behalf such land is held in 
trust or restricted status.
  ``(e) Hydraulic Fracturing Defined.--In this section the term 
`hydraulic fracturing' means the process of creating small cracks, or 
fractures, in underground geological formations for well stimulation 
purposes of bringing hydrocarbons into the wellbore and to the surface 
for capture.''.

SEC. 206. REVIEW OF INTEGRATED ACTIVITY PLAN FOR THE NATIONAL PETROLEUM 
                    RESERVE IN ALASKA.

  The Secretary of the Interior shall--
          (1) conduct a review of the National Petroleum Reserve-Alaska 
        Final Integrated Activity Plan/Environmental Impact Statement, 
        for which notice of availability was published in the Federal 
        Register on December 28, 2012 (77 Fed. Reg. 76515), to 
        determine which lands within the National Petroleum Reserve in 
        Alaska should be made available for oil and gas leasing; and
          (2) make available the lands described in paragraph (1) for 
        oil and gas leasing.

SEC. 207. PROTESTED LEASE SALES.

  Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C. 
226(b)(1)(A)) is amended by inserting ``The Secretary shall resolve any 
protest to a lease sale within 60 days following such payment.'' after 
``annual rental for the first lease year.''.

SEC. 208. CLARIFICATION REGARDING LIABILITY UNDER MIGRATORY BIRD TREATY 
                    ACT.

  Section 6 of the Migratory Bird Treaty Act (16 U.S.C. 707) is amended 
by adding at the end the following:
  ``(e) This Act shall not be construed to prohibit any activity 
proscribed by section 2 of this Act that is accidental or incidental to 
the presence or operation of an otherwise lawful activity.''.

                          Purpose of the Bill

    The purpose of H.R. 4239 is to distribute revenues from oil 
and gas leasing on the outer Continental Shelf to certain 
coastal States, to require sale of approved offshore oil and 
gas leases, to promote offshore wind lease sales, and to 
empower States to manage the development and production of oil 
and gas on available federal land.

                  Background and Need for Legislation

    The Strengthening the Economy with Critical Untapped 
Resources to Expand (SECURE) American Energy Act seeks to 
optimize management of our nation's energy resources by 
increasing access to and promoting the development of oil, gas, 
and wind energy. Title I, the Accessing Strategic Resources 
Offshore (ASTRO) Act, facilitates access to oil and gas 
resources across America's Outer Continental Shelf (OCS) lands. 
This bill establishes a revenue sharing framework to distribute 
revenues collected from oil and gas leasing on the OCS to 
certain coastal States. The bill increases the amount that can 
be distributed to qualifying States under the Gulf of Mexico 
Energy Security Act of 2006 (GOMESA, Public Law 109-432, 
Division C, Title I; 43 U.S.C. 1331 note), and limits the 
President's authority to withdraw certain areas of the OCS from 
oil and gas leasing. Finally, this bill increases regulatory 
certainty by requiring the execution of all approved oil and 
gas lease sales, should the Secretary of the Interior call for 
a revised national lease sale program. Furthermore, this bill 
strategizes offshore wind lease sales by requiring feasibility 
and compatibility studies, and streamlines the Marine Mammal 
Protection Act of 1972 (16 U.S.C. 1361 et seq.) permitting 
process. Title II, the Opportunities for the Nation and States 
to Harness Onshore Resources for Energy (ONSHORE) Act, enables 
States with established permitting and regulatory programs to 
manage certain federal permitting and regulatory 
responsibilities for oil and gas development on federal lands 
within their borders. This bill reaffirms the States' authority 
to manage oil and gas development on State and private land and 
requires the Secretary to defer to the States regarding the 
regulation of hydraulic fracturing practices.

                           TITLE I--ASTRO ACT

    Our nation is uniquely positioned to safely develop diverse 
energy sources, and is capable of satisfying domestic and 
global demand. Impeding such progress and certainty is a 
politicized series of laws and regulations. The Bureau of Ocean 
Energy Management (BOEM) estimates that 89.9 billion barrels of 
oil, and 327.5 trillion cubic feet of gas are contained, but 
undiscovered, on the OCS.\1\ However, the vast majority, 94%, 
of the OCS is excluded from oil and gas leasing under the 2017-
2022 OCS leasing plan and Presidential withdrawals.\2\
---------------------------------------------------------------------------
    \1\Unlocking America's Offshore Energy Opportunity, (Oct. 6, 2017), 
http://www.americasoffshoreenergy.com/#/?section=unlocking-
americasoffshore-energy-opportunity.
    \2\Evaluating Federal Offshore Oil and Gas Development: Hearing 
before the House Committee on Natural Resources, 115th Cong. (July 12, 
2017) (statement of Katharine MacGregor, Acting Assistant Secretary, 
Dep't of the Interior.
---------------------------------------------------------------------------
    Currently, the Atlantic, Pacific, and nearly all of the 
Alaskan OCS lands are off limits to development. Offshore 
operators require long lead times to plan projects, so 
restricting lease sales today directly reduces production in 
decades to come. Department of the Interior Secretary Ryan 
Zinke recognized the extremely harmful effects of such a 
restricted leasing schedule, and called for the development of 
a new leasing schedule to more carefully consider all potential 
leasing areas on the OCS.\3\
---------------------------------------------------------------------------
    \3\THE DEPARTMENT OF THE INTERIOR, Sec. Order No. 3350 (2017).
---------------------------------------------------------------------------
    The exclusion of these resources comes at the expense of 
the taxpayer and disadvantages our national and local 
economies. Oil and gas revenues provide the second largest 
source of revenue to the U.S. Treasury, second only to federal 
income tax.\4\ In FY 2016, OCS revenues totaled $2.8 billion, 
making up nearly half of all oil and gas revenues for the 
federal government.\5\ Certain States also receive a share of 
OCS revenues, supplementing their budgets and providing support 
to coastal communities.
---------------------------------------------------------------------------
    \4\Will revenue sharing spur more offshore drilling?, Global Energy 
Institute, Platts McGraw-Hill https://www.globalenergyinstitute.org/
willrevenue-sharing-spur-more-offshore-drilling.
    \5\Statistics, Office of Natural Resources Revenue, https://
statistics.onrr.gov/ReportTool.aspx.
---------------------------------------------------------------------------
    GOMESA established a revenue distribution structure for the 
Gulf States of Alabama, Louisiana, Mississippi, and Texas. The 
shared revenues compensate these States for the large-scale 
infrastructure required by OCS production, and to mitigate the 
environmental risks presented by offshore development.
    Facilitating access to exploration and production in 
promising OCS areas will strengthen national, State, and local 
economies. In addition, opening the OCS mid-Atlantic, South 
Atlantic and Alaska planning areas to oil and gas development 
would continue to strengthen the nation's position as a global 
energy leader. A recent study found that development of the 
resource potential in these areas and others would create 
840,000 new jobs and would generate over $200 billion in 
cumulative revenues for the nation.\6\
---------------------------------------------------------------------------
    \6\Untapped Potential, The American Petroleum Institute. http://
maps.api.org/offshore/.
---------------------------------------------------------------------------

Allocation of revenues derived from oil and gas leasing on the Outer 
        Continental Shelf

    The federal government is charged with managing and 
realizing fair return for development of over 1.7 billion acres 
of offshore lands.\7\ Until the passage of GOMESA, the federal 
government generally received all revenues generated from oil 
and gas development on the OCS. The Gulf of Mexico quickly 
became the leader in offshore production, and as the number of 
offshore wells grew, so did the associated infrastructure and 
environmental risks of drilling. Ports, pipelines, and 
refineries rapidly expanded along the Alabama, Louisiana, 
Mississippi, and Texas coasts to support OCS development. Gulf 
States successfully negotiated GOMESA, which established a 
revenue sharing scheme for qualifying Gulf States. Under 
GOMESA, States receive 37.5% of all qualifying OCS revenues, 
with 20% of each State's share dedicated to ``coastal political 
subdivisions.''
---------------------------------------------------------------------------
    \7\Laura B. Comay, Five Year Program for Federal Offshore Oil and 
Gas Leasing: Status and Issues in Brief, (CRS R44692), (Congressional 
Research Service, Washington, DC), 3, March 31, 2017.
---------------------------------------------------------------------------
    As OCS production necessarily demands onshore 
infrastructure and requires States to assume environmental 
risks, a revenue sharing scheme should be in place for coastal 
States that will be directly affected by production on federal 
lands. In the ongoing debate about opening the Atlantic OCS to 
offshore production, many coastal governors and State lawmakers 
have made clear their support depends on the existence of a 
revenue sharing program that would equitably compensate their 
States.\8\ Virginia Governor Terry McAuliffe stated in a letter 
to BOEM that ``. . . primary concern that must be satisfied in 
order for Virginia to be included in the leasing area is a 
revenue sharing agreement between participating Atlantic coasts 
and the federal government.''\9\ One of the main provisions of 
this bill establishes revenue sharing for States in the Mid- 
and South Atlantic planning areas, including Virginia, in an 
attempt to fairly compensate the qualifying producing States, 
and to ensure disbursement certainty into the future.
---------------------------------------------------------------------------
    \8\Supra at 4.
    \9\Letter from Virginia Governor Terry McAuliffe to Kelly Hammerle, 
National Program Manager, BOEM, August 11, 2017, http://
governor.virginia.gov/media/9428/08162017-boem-letter.pdf.
---------------------------------------------------------------------------

Optimizing access to the Outer Continental Shelf

    The federal offshore lease sale schedule is developed 
through an extensive process that narrows down lease locations 
within planning areas. BOEM weighs several factors, including 
geology, economics, operator and public interest, and 
environmental sensitivity when identifying lease sale areas. 
The Administration, at present, cannot add lease sales to an 
approved program, thereby limiting sales (and associated 
development and revenue) to planning decisions made up to seven 
years prior.
    Withdrawals in December 2016 by President Obama compounded 
the lack of access and precluded offshore oil and gas 
production on millions of acres of OCS Atlantic and Alaska 
federal lands.\10\ This unilateral removal of 118.8 million 
acres from oil and gas development, created an immediate threat 
to national security and barred economic growth along these 
coasts. This withdrawal was predicated on Section 12(a) of the 
Outer Continental Shelf Lands Act, which authorizes the 
President to withdraw OCS lands from leasing consideration, but 
does not provide insight into a President's ability to undo 
such withdrawals.\11\ A key provision of this bill would 
preclude a President from making such withdrawals, instead 
leaving this critical decision to Congress.
---------------------------------------------------------------------------
    \10\Representative David Brat (VA-7), H.R. 2157--OCEAN Act Summary.
    \11\43 U.S.C. 1331 et seq.
---------------------------------------------------------------------------
    In addition to oil and gas, the OCS contains diversified 
renewable energy sources. Offshore wind has become the primary 
focus of renewable energy development, and can potentially 
provide over 4,000 gigawatts of energy to the mainland 
grid.\12\ However, there exists considerable permitting and 
regulatory delays preventing this power from getting on line, 
and there are currently no constructed or approved wind farms 
in federal waters. For instance, BOEM has issued 13 commercial 
wind energy leases on the OCS, all of which are in the process 
of navigating the challenging and duplicative series of 
environmental regulations and stakeholder engagements required 
for final construction approval.\13\ The nation's first 
offshore wind farm, the Block Island Wind Farm, located in 
State waters off Rhode Island, became operational at the end of 
2016.\14\ As BOEM continues to lease federal offshore acreage 
for wind development, it is essential that its method be 
strategic and well informed.
---------------------------------------------------------------------------
    \12\U.S. Offshore Wind, American Wind Energy Association, Nov 3, 
2017 (https://www.awea.org/offshore-wind).
    \13\BOEM Fact Sheet, Renewable Energy on the Outer Continental 
Shelf, September 2017 (https://www.boem.gov/BOEM-Overview-
RenewableEnergy/).
    \14\Supra, Note 12.
---------------------------------------------------------------------------

                       TITLE II--THE ONSHORE ACT

    The Bureau of Land Management (BLM) is responsible for 
managing the federal onshore mineral estate, which includes 
roughly 700 million acres of land held primarily by the BLM and 
U.S. Forest Service.\15\ BLM leases these lands to developers 
through quarterly lease sales (when parcels are available for 
lease)\16\ and issues the necessary federal permits to 
leaseholders required for oil and gas development. At the end 
of FY 2016, BLM managed a total of 40,143 onshore oil and gas 
leases covering only 27 million acres, the lowest number of 
leases since FY 1985.\17\
---------------------------------------------------------------------------
    \15\Bureau of Land Management. About the BLM Oil and Gas Program. 
https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/about 
(Accessed October 10, 2017).
    \16\Bureau of Land Management. Oil and Gas Leasing Instructions. 
https://www.blm.gov/programs/energy-and-minerals/oil-andgas/leasing/
general-leasing (Accessed October 10, 2017).
    \17\Bureau of Land Management. Oil and Gas Statistics. https://
www.blm.gov/programs/energy-and-minerals/oil-and-gas/oil-and-gas-
statistics (Accessed October 10, 2017).
---------------------------------------------------------------------------

Onshore oil and gas program management under the BLM

    In recent years, unnecessary permitting delays, costly 
regulatory requirements, and uncertainty in the leasing process 
have discouraged oil and gas developers from operating on 
federal land. While BLM manages a vast mineral estate of 700 
million acres, only 113 million acres of onshore federal land 
are open and accessible for oil and gas development.\18\ In 
fact, 166 million acres are off limits or inaccessible to oil 
and gas development altogether.\19\ Duplicative environmental 
reviews under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.), along with frivolous protests on the 
parcels made available for leasing, have resulted in 
unnecessary delays in the leasing process and an overall 
decrease in the number of leased parcels. Since 2008, the 
number of acres of federal land leased for oil and gas 
production has decreased by over 40 percent.\20\
---------------------------------------------------------------------------
    \18\Marc Humphries. U.S. Crude Oil and Natural Gas Production in 
Federal and Nonfederal Areas. June 22, 2016. http://www.crs.gov/
reports/pdf/R42432.
    \19\Marc Humphries. U.S. Crude Oil and Natural Gas Production in 
Federal and Nonfederal Areas. June 22, 2016. http://www.crs.gov/
reports/pdf/R42432.
    \20\Bureau of Land Management. Oil and Gas Statistics. https://
www.blm.gov/programs/energy-and-minerals/oil-and-gas/oil-and-gas-
statistics (Accessed October 10, 2017).
---------------------------------------------------------------------------
    Uncertainty associated with the issuance of required 
permits presents additional challenges to oil and gas producers 
seeking to develop federal land. For example, the BLM issued 
Applications for Permits to Drill (APD) in an average of 257 
days in 2016.\21\ By contrast, State agencies can issue permits 
in just 30 days on average.\22\ While oil and gas production 
has increased in recent years overall, this growth has occurred 
largely on State and private lands.\23\ Unnecessary leasing 
reductions coupled with lengthy and unpredictable permitting 
processes have discouraged producers from developing federal 
lands. Instead, they have opted to do business on State and 
private lands where higher royalty rates exist.\24\
---------------------------------------------------------------------------
    \21\Bureau of Land Management. Oil and Gas Statistics. https://
www.blm.gov/programs/energy-and-minerals/oil-and-gas/oil-and-gas-
statistics (Accessed October 10, 2017).
    \22\Western Energy Alliance. Permitting. https://
www.westernenergyalliance.org/knowledge-center/land/onshore-
development/permitting.
    \23\Michael Ratner. 21st Century U.S. Energy Sources: A Primer (May 
19, 2017). http://www.crs.gov/reports/pdf/R44854.
    \24\Center for Western Priorities. A Fair Share: The Case for 
Updating Oil and Gas Royalties on Our Public Lands. Page 2. June 18, 
2015. http://www.westernpriorities.org/wp-content/uploads/2015/06/
Royalties-Report_update.pdf.
---------------------------------------------------------------------------
    States rely on mineral revenues to fund their schools, 
universities, infrastructure projects, and a host of other 
necessary public programs and services.\25\ The overly 
burdensome leasing, permitting, and regulatory processes facing 
oil and gas producers have resulted in lost revenue for the 
federal government and energy producing States. This means lost 
opportunities for economic development and job creation in 
communities across the country.
---------------------------------------------------------------------------
    \25\The United States Extractive Industries Transparency 
Initiative. Explore Data, Montana. https://useiti.doi.gov/explore/MT/
#disbursements (Accessed October 10, 2017).
---------------------------------------------------------------------------

Delegation of authority to the States

    The ONSHORE Act allows the Secretary of the Interior to 
delegate authority to the States for permitting and regulatory 
responsibilities for onshore oil and gas development on federal 
lands within their borders. The current one-size-fits-all 
federal regulatory scheme is burdensome for States and 
producers alike and fails to recognize the unique challenges in 
each State. States have extensive and sufficient regulatory 
frameworks for permitting oil and gas development that have 
been in place for decades.\26\ Delegating certain functions 
currently performed by BLM to the States would ensure the 
responsible development of oil and gas resources while 
eliminating the uncertainty and significant costs associated 
with the federal regulatory process.
---------------------------------------------------------------------------
    \26\Western Energy Alliance. Comments on Bureau of Land Management 
Regulatory Reform, DOI-2017-0003-0003. August 10, 2017.
---------------------------------------------------------------------------
    Enabling States to assume these functions for oil and gas 
development will result in greater certainty for producers and 
allow BLM to focus its limited resources on the agency's core 
mission of managing federal lands. These much-needed reforms 
will encourage oil and gas development on federal land and 
promote economic development and diversification in energy 
producing States across the West.

Administrative fees assessed on mineral revenues

    The Mineral Leasing Act (30 U.S.C. 181 et seq.) provides 
for States to receive a 50 percent share of the revenues 
resulting from the leasing and production of onshore mineral 
resources on federal land within their borders.\27\ These 
revenues include payments from rentals, bonuses, and royalties 
on various forms of energy production on federal public 
lands.\28\ Specifically, revenues are generated by payments 
related to oil, gas, and coal leasing, as well as the leasing 
of certain minerals, including phosphates, sulfur, sodium, and 
potash.\29\
---------------------------------------------------------------------------
    \27\30 U.S.C. Sec. 181. Alaska, which receives a higher percentage, 
is the only exception.
    \28\Marc Humphries, Energy and Mineral Development on Federal Land 
(2015). http://www.crs.gov/Reports/
IF10127?source=search&guid;=ab1ee1f40564437797071c178c8fa2ad
&index;=.
    \29\Briefing by Marc Humphries, Specialist in Energy Policy, 
Congressional Research Service received by Energy and Mineral Resources 
Subcommittee Majority Staff on August 20, 2017.
---------------------------------------------------------------------------
    Within the Department of the Interior (DOI), the Office of 
Natural Resources Revenue (ONRR) manages onshore and offshore 
federal and Indian mineral revenues associated with the leasing 
and production of oil, natural gas, solid minerals, and 
renewable energy resources. ONRR is responsible for the 
collection, verification, and disbursement of revenues 
according to the Mineral Leasing Act.\30\ Once ONRR collects 
and verifies these revenues, the agency disperses the 
appropriate amounts to the States. While the law provides for 
mineral revenues to be shared evenly between the federal 
government and the States, DOI has assessed an administrative 
fee on mineral revenue collection since 2007 under Public Law 
110-161. In 2014, the Mineral Leasing Act was amended to make 
this fee assessment authority permanent by Public Law 113-67. 
This two percent fee is used by DOI to cover the cost of 
collecting bonuses, rents, and royalties and dispersing 
revenues to the States. In FY 2016, this fee amounted to 
approximately $25 million.\31\
---------------------------------------------------------------------------
    \30\30 U.S. Department of Interior. Office of Natural Resources 
Revenue. Highlights. https://www.onrr.gov/about/pdfdocs/
Fact%20Sheet_ONRR%20Highlights_July%202016.pdf.
    \31\United States Department of Interior. Budget Justifications and 
Performance Information Fiscal Year 2018. Office of the Secretary 
Department-Wide Programs. https://www.doi.gov/sites/doi.gov/files/
uploads/fy2018_os_budget_justication.pdf.
---------------------------------------------------------------------------
    The ONSHORE Act would enable States to administer the 
collection of their share of mineral revenues produced on their 
lands, eliminating the need for this administrative fee charged 
by the federal government. Specifically, this legislation would 
amend the Mineral Leasing Act to remove the authorization for 
the two percent administrative fee for States with approved 
regulatory programs under the ONSHORE Act. This will enable 
States with approved regulatory programs to receive the 
entirety of their 50 percent share of federal mineral revenues. 
Under the bill, States can still choose to forego this option 
and continue to receive their revenue disbursements through the 
current process administered by ONRR.
    Federal mineral revenues are a crucial source of income for 
the States, serving to offset losses in private tax revenue due 
to the tax-exempt status of federal land.\32\ States utilize 
these funds to mitigate the environmental impacts of mineral 
development, support infrastructure projects,\33\ and fund 
public services and programs, including public school systems 
and community colleges.\34\ Allowing the States to receive the 
entirety of their 50 percent share of federal mineral revenues 
will contribute to the provision of these and other necessary 
public services.
---------------------------------------------------------------------------
    \32\Marc Humphries, Mineral Royalties on Federal Lands: Issues for 
Congress (2015). http://www.crs.gov/reports/pdf/R43891.
    \33\Marc Humphries, Mineral Royalties on Federal Lands: Issues for 
Congress (2015). http://www.crs.gov/reports/pdf/R43891.
    \34\The United States Extractive Industries Transparency 
Initiative. Explore Data, Wyoming. https://useiti.doi.gov/explore/WY/
#disbursements (Accessed August 29, 2017).
---------------------------------------------------------------------------

Hydraulic fracturing regulations

    In 2015, the Obama Administration finalized regulations 
that would impose federal requirements on hydraulic fracturing 
practices related to oil, gas, or geothermal production on 
federal land.\35\ In 2016, the U.S. District Court of Wyoming 
invalidated the regulations, noting that Congress has not 
authorized DOI to regulate hydraulic fracturing practices.\36\ 
The Obama Administration appealed this decision to the 10th 
Circuit Court of Appeals, which dismissed the case in September 
2017 based on BLM's announcement that the agency would repeal 
the rule in July of 2017.\37\
---------------------------------------------------------------------------
    \35\Devin Henry, Court dismisses lawsuit over Obama-era fracking 
rule (September 21, 2017). http://thehill.com/policy/energyenvironment/
351771-court-dismisses-lawsuit-over-obama-era-fracking-rule
    \36\Timothy Cama, Obama-appointed judge strikes down federal 
fracking rule (June 21, 2016). http://thehill.com/policy/
energyenvironment/284388-judge-strikes-down-federal-fracking-rule
    \37\Devin Henry, Court dismisses lawsuit over Obama-era fracking 
rule (September 21, 2017). http://thehill.com/policy/energyenvironment/
351771-court-dismisses-lawsuit-over-obama-era-fracking-rule
---------------------------------------------------------------------------
    The ONSHORE Act prohibits DOI from enforcing federal 
regulations regarding hydraulic fracturing relating to oil, 
gas, or geothermal production activities in any State that has 
corresponding regulations. Instead, the Department must defer 
to the States' requirements concerning hydraulic fracturing on 
federal land. The bill would also prevent the Department from 
enforcing any federal regulations governing the hydraulic 
fracturing process relating to oil, gas, or geothermal 
production on land held either in trust or restricted status 
for the benefit of Indians except with the consent of the 
relevant beneficiaries.

                     Major Provisions of H.R. 4239

    Section 102. Disposition of Revenues from Oil and Gas 
Leasing on the Outer Continental Shelf to Producing States. 
This section establishes oil and gas revenue sharing structure 
for Virginia, North Carolina, South Carolina, Georgia and 
Alaska. Modeled after GOMESA, the Atlantic States and Alaska 
will ultimately receive 37.5% of the revenues generated by 
offshore oil and gas leasing and development. Revenue 
Allocations provided by this bill are phased in as follows: 
Phase I: 87.5% to US Treasury and 12.5% to qualifying State 
treasuries; Phase II: 75% to US Treasury and 25% to qualifying 
State treasuries; and Phase III: 50% to the US Treasury; 37.5% 
to qualifying State treasuries; 6.25% to the Department of 
Transportation for investment in energy infrastructure and 
supporting projects in coastal ports; and 6.25% to DOI for 
projects on National Park System units. The section provides 
for a minimum allocation of 10% of revenues among the States 
within 200 nautical miles of a leased tract.
    Section 103. Limitation on the Amount of Distributed 
Qualified Outer Continental Shelf Revenues Under GOMESA. This 
section modifies Section 105(f)(1) of GOMESA to increase the 
limitations on distributions to Gulf producing States over 
time.
    Section 104. Limitation on Authority of the President to 
Withdraw Areas of the Outer Continental Shelf from Oil and Gas 
Leasing. This section requires an Act of Congress to establish 
new moratoriums on offshore drilling and for the creation of 
National Marine Monuments. It also rescinds all OCS 
withdrawals, other than those explicitly listed in the bill.
    Section 105. Modification to the Outer Continental Shelf 
Leasing Program. This section requires the execution of each 
approved lease sale in an existing Five Year Plan, should the 
Secretary call for a revised plan, thereby improving planning 
certainty by preventing the cancellation of an approved lease 
sale.
    Section 106. Inspection Fee Collection. This section 
permanently authorizes the collection of offshore platform and 
drill rig inspection fees, without raising or otherwise 
affecting current fees.
    Section 107. Arctic Rule Shall Have No Force or Effect. 
This section precludes the enforcement of the ``Oil and Gas and 
Sulfur Operations on the Outer Continental Shelf--Requirements 
for Exploratory Drilling on the Arctic Outer Continental 
Shelf'' rule, also known as the Arctic Rule.
    Section 108. Application of the Outer Continental Shelf 
Lands Act (OCSLA) to the Territories of the United States. This 
section applies the OCSLA to all U.S. territories, providing 
the Secretary the authority to conduct energy lease sales and 
manage offshore natural resources.
    Section 109. Wind Lease Sales on the Outer Continental 
Shelf. This section mandates offshore wind lease sales offshore 
California should this area be compatible with Department of 
Defense activities. In addition, the section authorizes an 
offshore wind lease sale offshore Hawaii if it would be 
compatible with Department of Defense activities and the 
feasibility study conducted by the Secretary supports. Finally, 
the section requires the Secretary to conduct economic 
feasibility studies for potential offshore wind leases off 
Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.
    Section 110. Reducing Permitting Delays for Taking of 
Marine Mammals. This section addresses permits for the taking 
of marine mammals by clarifying certain definitions and 
establishing timelines for permits under the Marine Mammal 
Protection Act of 1972 (MMPA, 16 U.S.C. 1361 et seq.). It also 
eliminates duplicative regulation by exempting authorized 
permit holders from section 9 of the Endangered Species Act of 
1972 (16 U.S.C. 1538). This section also transfers the MMPA 
permitting responsibilities from the Department of Commerce to 
the Department of the Interior for activities associated with 
operations authorized under the OCSLA.
    Section 111. Effect. This section affirms that nothing in 
this bill shall modify the existing moratorium in the eastern 
Gulf of Mexico as imposed by section 104 of GOMESA, and states 
that no section of this Act will modify the 2017-2022 OCS 
leasing program with respect to the State of Florida.
    Section 202. Cooperative Federalism in Oil and Gas 
Permitting on Available Federal Land. This section amends the 
Mineral Leasing Act to allow the Secretary of the Interior to 
delegate to the States authority for permitting and regulation 
of oil and gas activities on federal land within that State. 
Specifically, States may seek approval to process Applications 
for Permit to Drill (APDs) or drilling plans. States that seek 
approval to process APDs or drilling plans may also seek 
delegated authority from the Secretary to process sundry 
notices. States may also assume authority for the inspection 
and enforcement of drilling operations on federal land by 
entering in a Memorandum of Understanding (MOU) with the 
Secretary delineating State and federal responsibilities. This 
section directs States seeking to assume these responsibilities 
to submit an application for approval to the Secretary 
containing: (1) a description of the State program that the 
State proposes to establish and administer under State law; and 
(2) a statement from the Governor or attorney general of the 
State that the laws of such State provide adequate authority to 
carry out the State program. The section requires the Secretary 
to approve or disapprove an application within 180 days of 
receipt. The Secretary may approve an application if the 
Secretary has: (1) determined that the State would be at least 
as effective as the Secretary in issuing and enforcing permits; 
(2) determined that the State applicant's program complies with 
this Act and provides for the termination of permits if a 
violation warrants such action; (3) determined that the State 
applicant has sufficient personnel and funding to carry out the 
State regulatory program; (4) provided public notice, 
opportunity for public comment, and held a public hearing 
within the State; (5) determined that approval of the State 
program would not result in a proportional decrease in royalty 
payments to the Treasury; and (6) entered into a MOU with a 
State applicant that delineates the federal and State 
responsibilities with respect to inspection and enforcement, if 
applicable. The section permits States to enter into an MOU 
with the Secretary of the Interior so that the Secretary may 
offer technical assistance in developing a proposed State 
program and delineate State and federal responsibilities. The 
section allows States that choose to take over the entire APD 
process to charge a fee less than or equal to the APD fee 
charged by the federal government and requires such States to 
use the fee to administer the State program. The section 
provides permit applicants with the option to appeal any APD or 
drilling plan application denied by the State to the Department 
of the Interior Office of Hearings and Appeals. The section 
allows, if a State is not adequately enforcing APDs or drilling 
plans, the Secretary to provide for the federal administration 
or enforcement of such permits or plans after notifying the 
State of any deficiencies and allowing 30 days for the State to 
correct those deficiencies. A State may appeal the Secretary's 
decision to assume these delegated authorities in the 
applicable U.S. District Court. The section also defines 
available federal land as federal land that is located within 
the boundaries of a State, is not held in trust for a 
federally-recognized Indian Tribe, is not a unit of the 
National Park System or National Wildlife Refuge System where 
drilling is prohibited, is not a Congressionally-approved 
wilderness area under the Wilderness Act, and has been 
identified as land available for lease for exploration, 
development and production of oil and gas by the BLM under a 
Resource Management Plan or Integrated Activity Plan, or by the 
Forest Service under a Forest Management Plan. This section 
directs the Secretary to conduct inspections and charge 
inspection fees to operators on federal land in States that 
have been delegated the authority to administer the entire APD 
process, even if those States have entered into an MOU with the 
Secretary allowing the State to assume certain inspection and 
enforcement authorities. This allows the Secretary to conduct 
inspections in addition to those conducted by the State to 
ensure federal oversight.
    Section 203. Conveyance to Certain States of Property 
Interest in State Share of Royalties and Other Payments. This 
section amends the Mineral Leasing Act to provide that the two 
percent administrative fee charged by the federal government on 
mineral revenue collection is only assessed on States without 
approved State programs. This section requires, upon request, 
the Secretary of the Interior to convey to a State all right, 
title, and interest in and to a percentage of the amounts 
required to be paid into the Treasury from sales, bonuses, 
royalties, and rentals for public land or deposits located in 
that State. A State may only elect to collect oil and gas 
revenues if that State has an approved State program. Once the 
Secretary has conveyed the right, title and interest to a 
State, mineral revenue payments will be made directly to the 
State rather than to the Treasury.
    Section 204. Permitting on Non-Federal Surface Estate. This 
section amends the Mineral Leasing Act to clarify that 
permitting for operations on State or private surface in which 
less than 50% of minerals accessed are owned by the federal 
government will not be considered a federal action and shall 
not require a federal permit from the BLM. The section amends 
the Mineral Leasing Act to clarify that permitting for oil and 
gas operations on non-federal surface estate concerning non-
federal minerals that may have potential drainage impacts on 
federal minerals is not a federal action and shall not require 
a federal permit from the BLM.
    Section 205. State and Tribal Authority for Hydraulic 
Fracturing Regulation. This section amends the Mineral Leasing 
Act to require the Secretary to defer to State regulations, 
permitting, and guidance for all activities regarding hydraulic 
fracturing relating to oil, gas, or geothermal production 
activities on federal land. It also requires each State to 
submit to BLM a copy of its regulations that: (1) apply to 
hydraulic fracturing operations on federal land; and (2) 
require disclosure of chemicals used in hydraulic fracturing 
operations on federal land. The Secretary of the Interior must 
make such State regulations available to the public. The 
section also prohibits the Secretary of the Interior from 
enforcing any federal regulation, guidance, or permit 
requirement governing the hydraulic fracturing process relating 
to oil, gas, or geothermal production activities on land held 
either in trust or restricted status for the benefit of Indians 
except with the express consent of the beneficiary on whose 
behalf such land is held in trust or restricted status.
    Section 206. Review of Integrated Activity Plan for the 
National Petroleum Reserve in Alaska (NPR-A). This section 
directs the Secretary of the Interior to review the areas open 
to leasing within the NPR-A to determine which lands within the 
NPR-A should be made available for oil and gas leasing, and 
make additional lands available for leasing accordingly.
    Section 207. Protested Lease Sales. This section directs 
the Secretary to resolve any protests to a lease sale within 60 
days of payment by a successful bidder of the remainder of the 
bonus bid, if any, and the annual rental for the first lease 
year.
    Section 208. Clarification Regarding Liability under the 
Migratory Bird Treaty Act. This section clarifies that the 
Migratory Bird Treaty Act does not prohibit accidental or 
incidental take as a result of an otherwise lawful activity.

                            Committee Action

    H.R. 4239 was introduced on November 3, 2017, by 
Congressman Steve Scalise (R-LA). The bill was referred to the 
Committee on Natural Resources. On November 7, 2017, the 
Subcommittee on Energy and Mineral Resources held a hearing on 
a discussion draft of the legislation and held hearings on 
October 11, 2017, and October 13, 2017, on discussion drafts of 
Title I and Title II of H.R. 4239, respectively. On November 7, 
2017, the Natural Resources Committee met to consider the bill. 
Congressman Rob Bishop (R-UT) offered an amendment designated 
#1; it was adopted by voice vote. Congressman Darren Soto (D-
FL) offered an amendment designated 075; it was not adopted by 
voice vote. Congresswoman Nanette Diaz Barragan (D-CA) offered 
an amendment designated 028; it was not adopted by a roll call 
vote of 14 ayes to 16 noes, as follows:


    Congressman Donald S. Beyer, Jr. (D-VA) offered an 
amendment designated 010; it was not adopted by a roll call 
vote of 15 ayes to 19 noes, as follows:


    Congressman Donald S. Beyer, Jr. (D-VA) offered an 
amendment designated 013; it was not adopted by a roll call 
vote of 15 ayes to 19 noes, as follows:


    Congressman Raul M. Grijalva (D-AZ) offered an amendment 
designated 005; it was not adopted by a roll call vote of 15 
ayes to 19 noes, as follows:


    Congressman Raul M. Grijalva (D-AZ) offered an amendment 
designated 012; it was not adopted by a roll call vote of 15 
ayes to 19 noes, as follows:


    Congressman A. Donald McEachin (D-VA) offered an amendment 
designated 002; it was not adopted by voice vote. Congressman 
A. Donald McEachin (D-VA) offered an amendment designated 008; 
it was not adopted by a roll call vote of 14 ayes to 18 noes, 
as follows:


    Congressman Alan S. Lowenthal (D-CA) offered an amendment 
designated 035; it was not adopted by a roll call vote of 14 
ayes to 19 noes, as follows:


    Congressman Alan S. Lowenthal (D-CA) offered an amendment 
designated 036; it was not adopted by a roll call vote of 13 
ayes to 23 noes, as follows:


    Congressman Anthony G. Brown (D-MD) offered an amendment 
designated 011; it was not adopted by a roll call vote of 13 
ayes to 22 noes, as follows:


    Congressman Stevan Pearce (R-NM) offered an amendment 
designated 046; it was adopted by voice vote. Congressman Mike 
Johnson (R-LA) offered an amendment designated 027; it was 
adopted by a roll call vote of 23 ayes to 13 noes, as follows:


    Congresswoman Liz Cheney (R-WY) offered an amendment 
designated #1; it was adopted by a roll call vote of 20 ayes to 
14 noes, as follows:


    Congressman Daniel Webster (R-FL) offered an amendment 
designated 007; it was adopted by voice vote. The bill, as 
amended, was then ordered favorably reported to the House of 
Representatives on November 8, 2017, by a roll call vote of 19 
ayes and 14 noes, as follows:


            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      Compliance With House Rule XIII and Congressional Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, the Committee has received the following estimate for the 
bill from the Director of the Congressional Budget Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, December 1, 2017.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4239, the SECURE 
American Energy Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kathleen 
Gramp and Jeff LaFave.
            Sincerely,
                                             Mark P. Hadley
                                        (For Keith Hall, Director).
    Enclosure.

H.R. 4239--SECURE American Energy Act

    Summary: H.R. 4239 would amend existing laws regarding 
energy development on federal lands. Major provisions in the 
bill would:
           Increase the share of mineral receipts paid 
        to states under the Mineral Leasing Act (MLA) if states 
        assumed certain administrative functions related to oil 
        and gas development on federal lands;
           Require the Department of the Interior (DOI) 
        to assess inspection fees for offshore oil and gas 
        leases, thereby changing the budgetary classification 
        of those fees;
           Clarify DOI's authority to auction oil and 
        gas leases on both the Alaska Outer Continental Shelf 
        (OCS) and the Atlantic OCS;
           Authorize new direct spending of OCS 
        receipts for payments to states and other programs; and
           Authorize DOI to auction leases for 
        developing wind and mineral resources off the coast of 
        certain U.S. territories.
    CBO estimates that enacting H.R. 4239 would reduce net 
direct spending by $187 million over the 2018-2027 period. In 
addition, CBO estimates that implementing the bill would cost 
$186 million over the 2018-2022 period, subject to 
appropriation of the necessary amounts. Enacting H.R. 4239 
would affect direct spending; therefore, pay-as-you-go 
procedures apply. Enacting the bill would not affect revenues.
    CBO cannot determine whether enacting the bill would 
increase net direct spending or on-budget deficits by more than 
$2.5 billion in any of the four consecutive 10-year periods 
beginning in 2028.
    H.R. 4239 would impose an intergovernmental mandate as 
defined in the Unfunded Mandates Reform Act (UMRA) by requiring 
state agencies to send the Bureau of Land Management (BLM) a 
copy of each state regulation that applies to hydraulic 
fracturing on federal land as well as a copy of each state 
regulation that requires disclosure of chemicals used in 
hydraulic fracturing. Because of the low administrative cost 
for each state to submit those reports to BLM, CBO estimates 
that the costs of the mandate would be small and well below the 
annual threshold established in UMRA for intergovernmental 
mandates ($78 million in 2017, adjusted for inflation).
    The bill contains no private-sector mandates as defined in 
UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary effects of H.R. 4239 are shown in the following 
table. The costs of this legislation fall within budget 
functions 300 (natural resources and the environment), 800 
(general government), and 950 (undistributed offsetting 
receipts).
    Basis of estimate: For this estimate, CBO assumes that H.R. 
4239 will be enacted in fiscal year 2018 and that the necessary 
amounts will be appropriated for each year.

Direct spending

    CBO estimates that enacting H.R. 4239 would reduce net 
direct spending by $187 million over the 2018-2027 period.
    Payments to States Under the MLA. When companies acquire 
oil and gas leases on federal lands, an application for a 
permit to drill (APD) must be approved for each well. To obtain 
approval, companies must submit a drilling plan; a surface use 
plan, which requires the completion of an environmental 
analysis to ensure compliance with the National Environmental 
Policy Act; and other materials that must be approved by DOI 
before a permit to drill is issued.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING
 
Payments to States Under the MLA:
    Estimated Budget Authority....................       0      23      31      31      32      33      35      36      37      38       117        296
    Estimated Outlays.............................       0      23      31      31      32      33      35      36      37      38       117        296
Fees from Applications for Permits to Drill:
    Estimated Budget Authority....................       1       1       1       0       0       0       0       0       0       0         3          3
    Estimated Outlays.............................       1       1       1       0       0       0       0       0       0       0         3          3
Inspection Fees for Offshore Oil and Gas
 Operations:
    Estimated Budget Authority....................       0     -40     -50     -45     -45     -45     -45     -45     -45     -45      -180       -405
    Estimated Outlays.............................       0     -40     -50     -45     -45     -45     -45     -45     -45     -45      -180       -405
Authority to Offer Leases on the Alaska and the
 Atlantic OCS:
    Estimated Budget Authority....................       0       0       0       0       0     -26     -26     -26     -26     -26         0       -130
    Estimated Outlays.............................       0       0       0       0       0     -26     -26     -26     -26     -26         0       -130
Spending of Receipts from the Alaska and the
 Atlantic OCS:
    Estimated Budget Authority....................       0       0       0       0       1       0       9      19      20      20         1         69
    Estimated Outlays.............................       0       0       0       0       1       0       9      19      20      20         1         69
Renewable Energy Leases on the OCS:
    Estimated Budget Authority....................       0       0       0       0       0      -4      -4      -4      -4      -4         0        -20
    Estimated Outlays.............................       0       0       0       0       0      -4      -4      -4      -4      -4         0        -20
    Total Changes:
        Estimated Budget Authority................       1     -16     -18     -14     -12     -42     -31     -20     -18     -17       -59       -187
        Estimated Outlays.........................       1     -16     -18     -14     -12     -42     -31     -20     -18     -17       -59       -187
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level.....................       6      40      50      45      45      46      45      45      46      45       186        413
Estimated Outlays.................................       0      42      52      47      45      45      46      45      45      46       186        413
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.
MLA = Mineral Leasing Act.
OCS = Outer Continental Shelf.

    H.R. 4239 would authorize DOI to grant states the authority 
to carry out administrative tasks associated with APDs. Under 
the bill, states could request either a more limited authority 
to take over the approval of drilling plans or they could opt 
to manage the entire APD process, which would require them to 
review surface use plans and other materials in addition to 
drilling plans. Any state that chose to take over either of 
those functions would be entitled to an additional 1 percent 
share of amounts paid to DOI by the companies that extract 
minerals from federal lands. Under the MLA, states receive 49 
percent of all royalties, rents, and bonus bids, which are 
amounts that companies must pay to the federal government to 
acquire leases.\1\
---------------------------------------------------------------------------
    \1\The state of Alaska is an exception to this provision of the 
MLA. It receives 90 percent of royalties, rents, and bonus bids from 
federal leases outside of the National Petroleum Reserve in Alaska.
---------------------------------------------------------------------------
    Using information provided by DOI and by officials in 
states with significant oil and gas production on federal 
lands, CBO expects that slates would prefer the more limited 
authority to approve drilling plans rather than the authority 
to manage the entire APD process, because managing the entire 
process would place a significantly higher administrative 
burden on state agencies. CBO also expects that all states with 
federal mineral leases under the MLA would pursue the more 
limited authority because they would receive a higher share of 
proceeds from federal leases. Under an assumption that DOI 
would grant all states the authority to approve drilling plans 
within two years of enactment, CBO estimates that this 
provision would cost $296 million over the 2019-2027 period for 
a 1 percent increase in royalty payments to states.\2\
---------------------------------------------------------------------------
    \2\CBO expects that enacting this provision would reduce the amount 
of appropriated funds necessary to administer APDs; however, any 
reduction in amounts used for that purpose would be offset by increased 
spending on other DOI activities.
---------------------------------------------------------------------------
    Fees From Applications for Permits to Drill. Under H.R. 
4239, companies would no longer need an approved APD for 
operations on lands where the surface estate is owned by a 
nonfederal entity and the federal interest in the mineral 
estate is less than 50 percent. In 2017, DOI collected a total 
of $31 million in fees from APDs. The agency is authorized to 
spend, without further appropriation, 85 percent of the amounts 
collected to administer the APD program through 2020. After 
2020, the agency can spend all proceeds from APD fees. CBO 
expects that gross fee collections will total between $31 
million and $37 million and that net collections will total $5 
million each year. The type of lands affected by this provision 
account for between 10 percent and 30 percent of all APDs 
issued, and CBO estimates that enacting this provision would 
reduce net receipts by a similar amount. Thus, enacting this 
provision would cost $3 million over the 2018-2020 period.
    Inspection Fees for Offshore Oil and Gas Operations. H.R. 
4239 would direct DOI to collect annual fees to cover the cost 
of inspecting OCS facilities and drilling operations, subject 
to certain conditions. The bill would specify the amounts due 
for various types of activities and allow DOI to adjust those 
fees for inflation in future years. Amounts collected under the 
bill would be deposited into a new fund in the Treasury, and 
that money could be spent only if appropriated in annual 
appropriation acts.
    Based on information from DOI and on historical trends in 
such activities, CBO estimates that collecting the inspection 
fees in H.R. 4239 would increase offsetting receipts by $405 
million over the 2018-2027 period. Annual appropriation acts 
have authorized DOI to assess similar fees each year, but that 
authority expires at the end of 2018. For this estimate, CBO 
assumes that the fees authorized by H.R. 4239 would take effect 
in fiscal year 2019.
    Authority to Offer Leases on the Alaska and the Atlantic 
OCS. H.R. 4239 would expressly revoke existing restrictions on 
oil and gas leasing on certain portions of the Alaska and 
Atlantic OCS. Although the Administration issued an executive 
order in April 2017 to reverse those restrictions, that action 
is currently under judicial review. Given the legal uncertainty 
surrounding DOI's authority to offer leases in those areas, 
CBO's baseline projections reflect the assumption that there is 
a 50 percent chance that the April 2017 executive order will be 
upheld. Because H.R. 4239 would eliminate that uncertainty, CBO 
estimates that enacting the bill would increase potential 
receipts from those areas by a corresponding amount. Thus, 
enacting this provision would increase offsetting receipts by 
about $130 million over the 2018-2027 period, relative to 
current law. CBO estimates that most of those additional 
receipts would stem from leases on the Alaska OCS.
    Spending of Receipts from the Alaska and the Atlantic OCS. 
H.R. 4239 would authorize direct spending of a portion of the 
offsetting receipts from leases awarded after the date of 
enactment for the Alaska, mid-Atlantic, and south Atlantic OCS. 
Under the bill, the portion spent each year would depend on the 
timing of OCS lease sales, rising from 12.5 percent to 50 
percent over a period of several years. The bill would allocate 
that spending for various purposes, including payments to 
states and for certain other programs. Funds would be disbursed 
the year after receipts were collected.
    CBO estimates that the receipts that would be available for 
direct spending under this provision would total $315 million 
over the 2018-2027 period--$210 million that will be collected 
under current law and $105 million that would result from new 
authority in the bill.\3\ Over the 2018-2029 period, the 
formulas in the bill would authorize an average of 22 percent 
to be spent without further appropriation. Thus, CBO estimates 
that implementing this provision would increase direct spending 
by $69 million over the 10-year period, with almost all of 
those costs occurring after 2022.\4\
---------------------------------------------------------------------------
    \3\CBO's estimate of receipts subject to revenue sharing reflects 
the one-year lag between the time receipts are collected and spent. It 
consists of $95 million from leases on the Atlantic OCS under current 
law and about $220 million from the Alaska OCS ($115 million under 
current law and another $105 million assuming enactment of provisions 
in H.R. 4239 that would clarify DOI's leasing authority in areas 
previously subject to restrictions).
    \4\CBO estimates that most of the direct spending on would occur 
after 2022 because the current five-year plan for OCS lease sales does 
not include auctions on the Atlantic or most of the Alaska OCS over the 
2017-2022 period. Decisions about whether to include those areas in 
future five-year plans will be made administratively in consultation 
with industry and states. Because scheduling policies for lease sales 
have varied among Administrations, CBO assumes that there is a 50 
percent chance that the affected areas would be included in the five-
year plan covering 2023 to 2027. If a new five-year plan is adopted 
before 2023, CBO will update its baseline projections to reflect the 
revised auction schedule.
---------------------------------------------------------------------------
    Renewable Energy Leases on the OCS. H.R. 4239 would direct 
DOI to study the potential for production of electricity 
generated by wind off the coasts of Puerto Rico, the U.S. 
Virgin Islands, Guam, American Samoa, and the Northern Marianas 
Islands. If those studies showed that developing offshore wind 
resources was feasible, the bill would direct DOI to conduct 
lease sales in those areas. CBO estimates that implementing 
those provisions would increase offsetting receipts by $20 
million over the 2018-2027 period, net of payments to states 
and territories.
    Since 2013, auctions from leases of wind resources along 
the Atlantic coast have generated gross receipts of almost $70 
million, or a net of $50 million after payments to states. 
Several factors suggest that receipts from auctions in the 
Caribbean and Pacific may be considerably lower, at least for 
the next few years. For example, technological advances are 
needed to deploy systems that can withstand category 5 
hurricane-force winds in the Caribbean. Similarly, current 
technologies for producing electricity from offshore wind may 
not be economically viable for the relatively small markets in 
the Pacific territories. CBO estimates that any auctions in the 
new areas probably would occur toward the end of the 10-year 
period and that the proceeds would be similar to the amounts 
received for smaller sales (between $1 million and $10 million 
each).
    Finally, the bill also would direct DOI to study and then 
to conduct lease sales for wind resources off the coasts of 
California and Hawaii. CBO estimates that those requirements 
would have no significant net effect on offsetting receipts 
because such auctions are expected to occur under current law 
as soon as practical.
    Mineral Licenses for the OCS Adjacent to U.S. Territories 
and Possessions. H.R. 4239 would authorize DOI to issue 
licenses to companies to explore and develop mineral resources 
other than oil and gas in areas within the exclusive economic 
zone (EEZ) on the OCS adjacent to any territory or possession 
of the United States. The duration of and compensation for such 
licenses would be determined by the Secretary of the Interior 
and could be awarded noncompetitively. A licensee would be 
entitled to a lease for the area for development if valuable 
minerals were discovered, subject to royalty rates and lease 
terms specified by the Secretary.
    Based on the available information regarding deep-sea 
mining opportunities in the South Pacific, CBO estimates that 
any proceeds from issuing licenses for such mining would be 
negligible over the 2018-2027 period. According to the World 
Bank and others, the EEZs off the coast of American Samoa and 
other territories are relatively small and no large nodules of 
precious metals or minerals have been discovered.\5\
---------------------------------------------------------------------------
    \5\See, for example, World Bank Precautionary Management of Deep 
Sea Mining Potential in Pacific Island Countries (draft for discussion, 
accessed November 29, 2017). http://tinyurl.com/y9a81q18 (PDF, 3.4 MB).
---------------------------------------------------------------------------

Spending subject to appropriation

    CBO estimates that implementing H.R. 4239 would cost $186 
million over the 2018-2022 period, subject to appropriation of 
the necessary amounts, largely as a result of provisions 
changing the budgetary classification of fees for inspections 
of OCS facilities.
    Based on historical trends in spending for similar 
activities, CBO estimates that completing the studies and 
activities related to leasing off the coast of U.S. territories 
would cost about $6 million over the 2018-2022 period. Most of 
that spending would be for the technical and environmental 
assessments of offshore wind and mineral development off the 
coasts of U.S. territories in the Caribbean and South Pacific. 
CBO estimates that conducting lease sales in those areas would 
cost about $2 million, but expects that such spending would 
occur after 2022.
    Under H.R. 4239, the proceeds from fees on inspections of 
OCS facilities would be treated as reductions in direct 
spending. In recent years, the authority for DOI to collect 
fees for OCS inspections has been provided in annual 
appropriation acts, and the proceeds were netted against 
discretionary appropriations. As a result, CBO estimates that 
implementing this change would increase DOI's net spending 
subject to appropriation by a corresponding amount--$180 
million over the 2018-2022 period and $405 million over the 
2018-2027 period. CBO estimates that implementing H.R. 4239 
would have no significant effect on the discretionary cost of 
inspecting OCS operations.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

        CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4239, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON NOVEMBER 8, 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact....................       1     -16     -18     -14     -12     -42     -31     -20     -18     -17        -59       -187
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term direct spending and deficits: CBO 
cannot determine whether enacting H.R. 4239 would increase net 
direct spending by more than $2.5 billion or on-budget deficits 
by more than $5 billion in any of the four consecutive 10-year 
periods beginning in 2028. Under H.R. 4239, DOI would be 
authorized to spend proceeds from federal oil and gas leases 
for several purposes without further appropriation after 2027. 
CBO expects that outlays resulting from the bill would be less 
than $2.5 billion in each of the respective decades if the 
resources found on the Atlantic OCS remain undeveloped, but 
would exceed $2.5 billion in at least one of the decades if 
market conditions spurred production and generated significant 
bonus payments and royalties from that area.

Spending of receipts from the Gulf of Mexico OCS

    The bill would increase the amount authorized to be spent 
from proceeds from leases in the Gulf of Mexico by $150 million 
a year from 2029 through 2055, or by a total of $1.5 billion in 
certain decades. H.R. 4239 would change the statutory cap on 
those payments to about $650 million a year during the 2029-
2059 period. Under the technical and economic assumptions used 
in CBO's June 2017 baseline projections CBO estimates that 
enacting this provision would increase outlays by $150 million 
each year over the 2029-2055 period. Applying that cap to 
spending over the 2056-2059 period could reduce direct spending 
in those years relative to current law.

Spending of receipts from the Alaska and the Atlantic OCS

    In addition, the bill would authorize DOI to spend 50 
percent of the proceeds from leasing on the Alaska and Atlantic 
OCS during the period.\6\ Whether spending from the bonus bids, 
rents, and royalties from the Atlantic OCS would equal or 
exceed $1 billion in any decade (an average of $100 million a 
year) would depend on the nature of the resources in the area 
as well as on market conditions. Estimates of future bonus 
payments and royalties are inherently uncertain, especially for 
areas that have not been developed. During the 1970s and 1980s, 
for example, companies spent $2.8 billion ($7.7 billion in 
today's dollars) for leases on the Atlantic OCS although none 
produced any oil or gas.
---------------------------------------------------------------------------
    \6\The net effect of the legislation on direct spending from new 
leases on the Alaska OCS after 2027 depends on the outcome of the 
judicial review of Presidential actions restricting development. CBO 
currently estimates that the cost of provisions authorizing direct 
spending of receipts from the Alaska OCS would be offset by the 
additional income stemming from provisions in the bill that increase 
the probability that leasing would occur there. That estimate could 
change, however, depending on the outcome of the judicial review.
---------------------------------------------------------------------------
    Starting in 2029, H.R. 4239 would increase direct spending 
of receipts from certain leases on the OCS. Under current law, 
a portion of the receipts from leases issued after 2006 in the 
Central and Western Gulf of Mexico may be spent for payments to 
certain states and the Land and Water Conservation Fund without 
further appropriation. Current law caps those payments at $500 
million a year through 2055, after which payments will be 
determined by formula.
    Mandates: H.R. 4239 would impose an intergovernmental 
mandate as defined in UMRA by requiring state agencies to send 
BLM a copy of each state regulation that applies to hydraulic 
fracturing on federal land as well as a copy of each state 
regulation that requires disclosure of chemicals used in 
hydraulic fracturing. Because of the low administrative cost of 
meeting those requirements, CBO estimates that the costs of the 
mandate would be small and well below the annual threshold 
established in UMRA for intergovernmental mandates ($78 million 
in 2017, adjusted for inflation).
    The legislation would benefit state and local governments 
by increasing the generation of royalties from oil and gas 
production on public lands and in federal waters. Portions of 
the royalties would be shared with those governments under 
formulas specified by the bill and under federal laws governing 
oil and gas production. Over the 2018-2027 period, CBO 
estimates, state and local governments in which production 
occurs would receive a total of about $370 million in 
royalties.
    The bill contains no private-sector mandates as defined in 
UMRA.
    Estimate prepared by: Federal costs: Kathleen Gramp and 
Jeff LaFave; Mandates: Jon Sperl.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to distribute revenues from oil and 
gas leasing on the outer Continental Shelf to certain coastal 
States, to require sale of approved offshore oil and gas 
leases, to promote offshore wind lease sales, and to empower 
States to manage the development and production of oil and gas 
on available federal land.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                       Compliance With H. Res. 5

    Directed Rule Making. Section 108, Application of Outer 
Continental Shelf Lands Act With Respect to Territories of the 
United States, contains one directed rulemaking for the 
Secretary of the Interior for exploration licenses and leases 
on the outer Continental Shelf adjacent to territories and 
possessions.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                   OUTER CONTINENTAL SHELF LANDS ACT




           *       *       *       *       *       *       *
  Sec. 2. Definitions.--When used in this Act--
  (a) The term ``outer Continental Shelf'' means all submerged 
lands lying seaward and outside of the area of lands beneath 
navigable waters as defined in section 2 of the Submerged Lands 
Act (Public Law 31, Eighty-third Congress, first session), and 
of which the subsoil and seabed appertain to the United States 
and are subject to its jurisdiction and control or lying within 
the exclusive economic zone of the United States;
  (b) The term ``Secretary'' means the Secretary of the 
Interior, except that with respect to functions under this Act 
transferred to, or vested in, the Secretary of Energy or the 
Federal Energy Regulatory Commission by or pursuant to the 
Department of Energy Organization Act (42 U.S.C. 7101 et seq.), 
the term ``Secretary'' means the Secretary of Energy, or the 
Federal Energy Regulatory Commission, as the case may be;
  (c) The term ``lease'' means any form of authorization which 
is issued under section 8 or maintained under section 6 of this 
Act and which authorizes exploration for, and development and 
production of, minerals;
  (d) The term ``person'' includes, in addition to a natural 
person, an association, a State, a political subdivision of a 
State, or a private, public, or municipal corporation;
  (e) The term ``coastal zone'' means the coastal waters 
(including the lands therein and thereunder) and the adjacent 
shorelands (including the waters therein and thereunder), 
strongly influenced by each other and in proximity to the 
shorelines of the several coastal States, and includes islands, 
transition and intertidal areas, salt marshes, wetlands, and 
beaches, which zone extends seaward to the outer limit of the 
United States territorial sea and extends inland from the 
shorelines to the extent necessary to control shorelands, the 
uses of which have a direct and significant impact on the 
coastal waters, and the inward boundaries of which may be 
identified by the several coastal States, pursuant to the 
authority of section 305(b)(1) of the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1454(b)(1));
  (f) The term ``affected State'' means, with respect to any 
program, plan, lease sale, or other activity, proposed, 
conducted, or approved pursuant to the provisions of this Act, 
any State--
          (1) the laws of which are declared, pursuant to 
        section 4(a)(2) of this Act, to be the law of the 
        United States for the portion of the outer Continental 
        Shelf on which such activity is, or is proposed to be, 
        conducted;
          (2) which is, or is proposed to be, directly 
        connected by transportation facilities to any 
        artificial island or structure referred to in section 
        4(a)(1) of this Act;
          (3) which is receiving, or in accordance with the 
        proposed activity will receive, oil for processing, 
        refining, or transshipment which was extracted from the 
        outer Continental Shelf and transported directly to 
        such State by means of vessels or by a combination of 
        means including vessels;
          (4) which is designated by the Secretary as a State 
        in which there is a substantial probability of 
        significant impact on or damage to the coastal, marine, 
        or human environment, or a State in which there will be 
        significant changes in the social, governmental, or 
        economic infrastructure, resulting from the 
        exploration, development, and production of oil and gas 
        anywhere on the Outer Continental Shelf; or
          (5) in which the Secretary finds that because of such 
        activity there is, or will be, a significant risk of 
        serious damage, due to factors such as prevailing winds 
        and currents, to the marine or coastal environment in 
        the event of any oilspill, blowout, or release of oil 
        or gas from vessels, pipelines, or other transshipment 
        facilities;
  (g) The term ``marine environment'' means the physical, 
atmospheric, and biological components, conditions, and factors 
which interactively determine the productivity, state, 
condition, and quality of the marine ecosystem, including the 
waters of the high seas, the contiguous zone, transitional and 
intertidal areas, salt marshes, and wetlands within the coastal 
zone and on the outer Continental Shelf;
  (h) The term ``coastal environment'' means the physical 
atmospheric, and biological components, conditions, and factors 
which interactively determine the productivity, state, 
condition, and quality of the terrestrial ecosystem from the 
shoreline inward to the boundaries of the coastal zone;
  (i) The term ``human environment'' means the physical, 
social, and economic components, conditions, and factors which 
interactively determine the state, condition, and quality of 
living conditions, employment, and health of those affected, 
directly or indirectly, by activities occurring on the outer 
Continental Shelf;
  (j) The term ``Governor'' means the Governor of a State, or 
the person or entity designated by, or pursuant to, State law 
to exercise the powers granted to such Governor pursuant to 
this Act;
  (k) The term ``exploration'' means the process of searching 
for minerals, including (1) geophysical surveys where magnetic, 
gravity, seismic, or other systems are used to detect or imply 
the presence of such minerals, and (2) any drilling, whether on 
or off known geological structures, including the drilling of a 
well in which a discovery of oil or natural gas in paying 
quantities is made and the drilling of any additional 
delineation well after such discovery which is needed to 
delineate any reservoir and to enable the lessee to determine 
whether to proceed with development and production;
  (l) The term ``development'' means those activities which 
take place following discovery of minerals in paying 
quantities, including geophysical activity, drilling, platform 
construction, and operation of all onshore support facilities, 
and which are for the purpose of ultimately producing the 
minerals discovered;
  (m) The term ``production'' means those activities which take 
place after the successful completion of any means for the 
removal of minerals, including such removal, field operations, 
transfer of minerals to shore, operation monitoring, 
maintenance, and work-over drilling;
  (n) The term ``antitrust law'' means--
          (1) the Sherman Act (15 U.S.C. 1 et seq.);
          (2) the Clayton Act (15 U.S.C. 12 et seq.);
          (3) the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.);
          (4) the Wilson Tariff Act (15 U.S.C. 8 et seq.); or
          (5) the Act of June 19, 1936, chapter 592 (15 U.S.C. 
        13, 13a, 13b, and 21a);
  (o) The term ``fair market value'' means the value of any 
mineral (1) computed at a unit price equivalent to the average 
unit price at which such mineral was sold pursuant to a lease 
during the period for which any royalty or net profit share is 
accrued or reserved to the United States pursuant to such 
lease, or (2) if there were no such sales, or if the Secretary 
finds that there were an insufficient number of such sales to 
equitably determine such value, computed at the average unit 
price at which such mineral was sold pursuant to other leases 
in the same region of the outer Continental Shelf during such 
period, or (3) if there were no sales of such mineral from such 
region during such period, or if the Secretary finds that there 
are an insufficient number of such sales to equitably determine 
such value, at an appropriate price determined by the 
Secretary;
  (p) The term ``major Federal action'' means any action or 
proposal by the Secretary which is subject to the provisions of 
section 102(2)(C) of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332(2)(C)); [and]
  (q) The term ``minerals'' includes oil, gas, sulphur, 
geopressured-geothermal and associated resources, and all other 
minerals which are authorized by an Act of Congress to be 
produced from ``public lands'' as defined in section 103 of the 
Federal Land Policy and Management Act of 1976[.]; and
  (r) The term ``State'' includes each territory of the United 
States.

           *       *       *       *       *       *       *

  Sec. 4. Laws Applicable to Outer Continental Shelf.--(a)(1) 
The Constitution and laws and civil and political jurisdiction 
of the United States are hereby extended to the subsoil and 
seabed of the outer Continental Shelf and to all artificial 
islands, and all installations and other devices permanently or 
temporarily attached to the seabed which may be erected thereon 
for the purpose of exploring for, developing, or producing 
resources therefrom, or any such installation or other device 
(other than a ship or vessel) for the purpose of transporting 
such resources, to the same extent as if the outer Continental 
shelf were an area of exclusive Federal jurisdiction located 
within a state: Provided, however, That mineral leases on the 
outer Continental Shelf shall be maintained or issued only 
under the provisions of this Act.
  (2)(A) To the extent that they are applicable and not 
inconsistent with this Act or with other Federal laws and 
regulations of the Secretary now in effect or hereafter 
adopted, the civil and criminal laws of each adjacent State, 
now in effect or hereafter adopted, amended, or repealed are 
hereby declared to be the law of the United States for that 
portion of the subsoil and seabed of the outer Continental 
Shelf, and artificial islands and fixed structures erected 
thereon, which would be within the area of the State if its 
boundaries were extended seaward to the outer margin of the 
outer Continental Shelf, and the President shall determine and 
publish in the Federal Register such projected lines extending 
seaward and defining each such area. All of such applicable 
laws shall be administered and enforced by the appropriate 
officers and courts of the United States. State taxation laws 
shall not apply to the outer Continental Shelf.
  (B) Within one year after the date of enactment of this 
subparagraph, the President shall establish procedures for 
setting any outstanding international boundary dispute 
respecting the outer Continental Shelf.
  (3) The provisions of this section for adoption of State law 
as the law of the United States shall never be interpreted as a 
basis for claiming any interest in or jurisdiction on behalf of 
any State for any purpose over the seabed and subsoil of the 
Outer Continental Shelf, or the property and natural resources 
thereof or the revenues therefrom.
  (4) This section shall not apply to the territories and 
possessions of the United States.
  (b) With respect to disability or death of an employee 
resulting from any injury occurring as the result of operations 
conducted on the outer Continental Shelf for the purpose of 
exploring for, developing, removing, or transporting by 
pipeline the natural resources, or involving rights to the 
natural resources, of the subsoil and seabed of the outer 
Continental Shelf, compensation shall be payable under the 
provisions of the Longshoremen's and Harbor Workers' 
Compensation Act. For the purposes of the extension of the 
provisions of the Longshoremen's and Harbor Workers' 
Compensation Act under this section--
          (1) the term ``employee'' does not include a master 
        or member of a crew of any vessel, or an officer or 
        employee of the United States or any agency thereof or 
        of any State or foreign government, or of any political 
        subdivision thereof;
          (2) the term ``employer'' means an employer any of 
        whose employees are employed in such operations; and
          (3) the term ``United States'' when used in a 
        geographical sense includes the outer Continental Shelf 
        and artificial islands and fixed structures thereon.
  (c) For the purposes of the National Labor Relations Act, as 
amended, any unfair labor practice, as defined in such Act, 
occurring upon any artificial island, installation, or other 
device referred to in subsection (a) of this section shall be 
deemed to have occurred within the judicial district of the 
State, the laws of which apply to such artificial island, 
installation, or other device pursuant to such subsection, 
except that until the President determines the areas within 
which such State laws are applicable, the judicial district 
shall be that of the State nearest the place of location of 
such artifical island, installation, or other device.
  (d)(1) The Secretary of the Department in which the Coast 
Guard is operating shall have authority to promulgate and 
enforce such reasonable regulations with respect to lights and 
other warning devices, safety equipment, and other matters 
relating to the promotion of safety of life and property on the 
artificial islands, installations, and other devices referred 
to in subsection (a) or on the waters adjacent thereto, as he 
may deem necessary.
  (2) The Secretary of the Department in which the Coast Guard 
is operating may mark for the protection of navigation any 
artificial island, installation, or other device referred to in 
subsection (a) whenever the owner has failed suitably to mark 
such island, installation, or other device in accordance with 
regulation issued under this Act, and the owner shall pay the 
cost of such marking.
  (e) The authority of the Secretary of the Army to prevent 
obstruction to navigation in the navigable waters of the United 
States is hereby extended to the artificial islands, 
installations, and other devices referred to in subsection (a).
  (f) The specific application by this section of certain 
provisions of law to the subsoil and seabed of the outer 
Continental Shelf and the artificial islands, installations, 
and other devices referred to in subsection (a) or to acts or 
offenses occurring or committed thereon shall not give rise to 
any inference that the application to such islands and 
structures, acts, or offenses of any other provision of law is 
not intended.

           *       *       *       *       *       *       *

  Sec. 8. Leases, Easements, and Rights-of-way on the Outer 
Continental Shelf.--(a)(1) The Secretary is authorized to grant 
to the highest responsible qualified bidder or bidders by 
competitive bidding, under regulations promulgated in advance, 
any oil and gas lease on submerged lands of the outer 
Continental Shelf which are not covered by leases meeting the 
requirements of subsection (a) of section 6 of this Act. Such 
regulations may provide for the deposit of cash bids in an 
interest-bearing account until the Secretary announces his 
decision on whether to accept the bids, with the interest 
earned thereon to be paid to the Treasury as to bids that are 
accepted and to the unsuccessful bidders as to bids that are 
rejected. The bidding shall be by sealed bid and, at the 
discretion of the Secretary, on the basis of--
          (A) cash bonus bid with a royalty at not less than 
        12\1/2\ per centum fixed by the Secretary in amount or 
        value of the production saved, removed, or sold;
          (B) variable royalty bid based on a per centum in 
        amount or value of the production saved, removed, or 
        sold, with either a fixed work commitment based on 
        dollar amount for exploration or a fixed cash bonus as 
        determined by the Secretary, or both;
          (C) cash bonus bid, or work commitment bid based on a 
        dollar amount for exploration with a fixed cash bonus, 
        and a diminishing or sliding royalty based on such 
        formulae as the Secretary shall determine as equitable 
        to encourage continued production from the lease area 
        as resources diminish, but not less than 12\1/2\ per 
        centum at the beginning of the lease period in amount 
        or value of the production saved, removed, or sold;
          (D) cash bonus bid with a fixed share of the net 
        profits of no less than 30 per centum to be derived 
        from the production of oil and gas from the lease area;
          (E) fixed cash bonus with the net profit share 
        reserved as the bid variable;
          (F) cash bonus bid with a royalty at no less than 
        12\1/2\ per centum fixed by the Secretary in amount or 
        value of the production saved, removed, or sold and a 
        fixed per centum share of net profits of no less than 
        30 per centum to be derived from the production of oil 
        and gas from the lease area;
          (G) work commitment bid based on a dollar amount for 
        exploration with a fixed cash bonus and a fixed royalty 
        in amount or value of the production saved, removed, or 
        sold;
          (H) cash bonus bid with royalty at no less than 12 
        and \1/2\ per centum fixed by the Secretary in amount 
        or value of production saved, removed, or sold, and 
        with suspension of royalties for a period, volume, or 
        value of production determined by the Secretary, which 
        suspensions may vary based on the price of production 
        from the lease; or
          (I) subject to the requirements of paragraph (4) of 
        this subsection, any modification of bidding systems 
        authorized in subparagraphs (A) through (G), or any 
        other systems of bid variables, terms, and conditions 
        which the Secretary determines to be useful to 
        accomplish the purposes and policies of this Act, 
        except that no such bidding system or modification 
        shall have more than one bid variable.
  (2) The Secretary may, in his discretion, defer any part of 
the payment of the cash bonus, as authorized in paragraph (1) 
of this subsection, according to a schedule announced at the 
time of the announcement of the lease sale, but such payment 
shall be made in total no later than five years after the date 
of the lease sale.
  (3)(A) The Secretary may, in order to promote increased 
production on the lease area, through direct, secondary, or 
tertiary recovery means, reduce or eliminate any royalty or net 
profit share set forth in the lease for such area.
  (B) In the Western and Central Planning Areas of the Gulf of 
Mexico and the portion of the Eastern Planning Area of the Gulf 
of Mexico encompassing whole lease blocks lying west of 87 
degrees, 30 minutes West longitude and in the Planning Areas 
offshore Alaska, the Secretary may, in order to--
          (i) promote development or increased production on 
        producing or non-producing leases; or
          (ii) encourage production of marginal resources on 
        producing or non-producing leases; through primary, 
        secondary, or tertiary recovery means, reduce or 
        eliminate any royalty or net profit share set forth in 
        the lease(s). With the lessee's consent, the Secretary 
        may make other modifications to the royalty or net 
        profit share terms of the lease in order to achieve 
        these purposes.
  (C)(i) Notwithstanding the provisions of this Act other than 
this subparagraph, with respect to any lease or unit in 
existence on the date of enactment of the Outer Continental 
Shelf Deep Water Royalty Relief Act meeting the requirements of 
this subparagraph, no royalty payments shall be due on new 
production, as defined in clause (iv) of this subparagraph, 
from any lease or unit located in water depths of 200 meters or 
greater in the Western and Central Planning Areas of the Gulf 
of Mexico, including that portion of the Eastern Planning Area 
of the Gulf of Mexico encompassing whole lease blocks lying 
west of 87 degrees, 30 minutes West longitude, until such 
volume of production as determined pursuant to clause (ii) has 
been produced by the lessee.
  (ii) Upon submission of a complete application by the lessee, 
the Secretary shall determine within 180 days of such 
application whether new production from such lease or unit 
would be economic in the absence of the relief from the 
requirement to pay royalties provided for by clause (i) of this 
subparagraph. In making such determination, the Secretary shall 
consider the increased technological and financial risk of deep 
water development and all costs associated with exploring, 
developing, and producing from the lease. The lessee shall 
provide information required for a complete application to the 
Secretary prior to such determination. The Secretary shall 
clearly define the information required for a complete 
application under this section. Such application may be made on 
the basis of an individual lease or unit. If the Secretary 
determines that such new production would be economic in the 
absence of the relief from the requirement to pay royalties 
provided for by clause (i) of this subparagraph, the provisions 
of clause (i) shall not apply to such production. If the 
Secretary determines that such new production would not be 
economic in the absence of the relief from the requirement to 
pay royalties provided for by clause (i), the Secretary must 
determine the volume of production from the lease or unit on 
which no royalties would be due in order to make such new 
production economically viable; except that for new production 
as defined in clause (iv)(I), in no case will that volume be 
less than 17.5 million barrels of oil equivalent in water 
depths of 200 to 400 meters, 52.5 million barrels of oil 
equivalent in 400-800 meters of water, and 87.5 million barrels 
of oil equivalent in water depths greater than 800 meters. 
Redetermination of the applicability of clause (i) shall be 
undertaken by the Secretary when requested by the lessee prior 
to the commencement of the new production and upon significant 
change in the factors upon which the original determination was 
made. The Secretary shall make such redetermination within 120 
days of submission of a complete application. The Secretary may 
extend the time period for making any determination or 
redetermination under this clause for 30 days, or longer if 
agreed to by the applicant, if circumstances so warrant. The 
lessee shall be notified in writing of any determination or 
redetermination and the reasons for and assumptions used for 
such determination. Any determination or redetermination under 
this clause shall be a final agency action. The Secretary's 
determination or redetermination shall be judicially reviewable 
under section 10(a) of the Administrative Procedures Act (5 
U.S.C. 702), only for actions filed within 30 days of the 
Secretary's determination or redetermination.
  (iii) In the event that the Secretary fails to make the 
determination or redetermination called for in clause (ii) upon 
application by the lessee within the time period, together with 
any extension thereof, provided for by clause (ii), no royalty 
payments shall be due on new production as follows:
          (I) For new production, as defined in clause (iv)(I) 
        of this subparagraph, no royalty shall be due on such 
        production according to the schedule of minimum volumes 
        specified in clause (ii) of this subparagraph.
          (II) For new production, as defined in clause 
        (iv)(II) of this subparagraph, no royalty shall be due 
        on such production for one year following the start of 
        such production.
  (iv) For purposes of this subparagraph, the term ``new 
production'' is--
          (I) any production from a lease from which no 
        royalties are due on production, other than test 
        production, prior to the date of enactment of the Outer 
        Continental Shelf Deep Water Royalty Relief Act; or
          (II) any production resulting from lease development 
        activities pursuant to a Development Operations 
        Coordination Document, or supplement thereto that would 
        expand production significantly beyond the level 
        anticipated in the Development Operations Coordination 
        Document, approved by the Secretary after the date of 
        enactment of the Outer Continental Shelf Deep Water 
        Royalty Relief Act.
  (v) During the production of volumes determined pursuant to 
clauses (ii) or (iii) of this subparagraph, in any year during 
which the arithmetic average of the closing prices on the New 
York Mercantile Exchange for light sweet crude oil exceeds 
$28.00 per barrel, any production of oil will be subject to 
royalties at the lease stipulated royalty rate. Any production 
subject to this clause shall be counted toward the production 
volume determined pursuant to clause (ii) or (iii). Estimated 
royalty payments will be made if such average of the closing 
prices for the previous year exceeds $28.00. After the end of 
the calendar year, when the new average price can be 
calculated, lessees will pay any royalties due, with interest 
but without penalty, or can apply for a refund, with interest, 
of any overpayment.
  (vi) During the production of volumes determined pursuant to 
clause (ii) or (iii) of this subparagraph, in any year during 
which the arithmetic average of the closing prices on the New 
York Mercantile Exchange for natural gas exceeds $3.50 per 
million British thermal units, any production of natural gas 
will be subject to royalties at the lease stipulated royalty 
rate. Any production subject to this clause shall be counted 
toward the production volume determined pursuant to clauses 
(ii) or (iii). Estimated royalty payments will be made if such 
average of the closing prices for the previous year exceeds 
$3.50. After the end of the calendar year, when the new average 
price can be calculated, lessees will pay any royalties due, 
with interest but without penalty, or can apply for a refund, 
with interest, of any overpayment.
  (vii) The prices referred to in clauses (v) and (vi) of this 
subparagraph shall be changed during any calendar year after 
1994 by the percentage, if any, by which the implicit price 
deflator for the gross domestic product changed during the 
preceding calendar year.
  (4)(A) The Secretary of Energy shall submit any bidding 
system authorized in subparagraph (H) of paragraph (1) to the 
Senate and House of Respresentatives. The Secretary may 
institute such bidding system unless either the Senate or the 
House of Representatives passes a resolution of disapproval 
within thirty days after receipt of the bidding system.
  (B) Subparagraphs (C) through (J) of this paragraph are 
enacted by Congress--
          (i) as an exercise of the rulemaking power of the 
        Senate and the House of Representatives, respectively, 
        and as such they are deemed a part of the rules of each 
        House, respectively, but they are applicable only with 
        respect to the procedures to be followed in that House 
        in the case of resolutions described by this paragraph, 
        and they supersede other rules only to the extent that 
        they are inconsistent therewith; and
          (ii) with full recognition of the constitutional 
        right of either House to change the rules (so far as 
        relating to the procedure of that House) at any time, 
        in the same manner, and to the same extent as in the 
        case of any other rule of that House.
  (C) A resolution disapproving a bidding system submitted 
pursuant to this paragraph shall immediately be referred to a 
committee (and all resolutions with respect to the same request 
shall be referred to the same committee) by the President of 
the Senate or the Speaker of the House of Representative, as 
the case may be.
  (D) If the committee to which has been referred any 
resolution disapproving the bidding system of the Secretary has 
not reported the resolution at the end of ten calendar days 
after its referral, it shall be in order to move either to 
discharge the committee from further consideration of the 
resolution or to discharge the committee from further 
consideration of any other resolution with respect to the same 
bidding system which has been referred to the committee.
  (E) A motion to discharge may be made only by an individual 
favoring the resolution, shall be highly privileged (except 
that it may not be made after the committee has reported a 
resolution with respect to the same recommendation), and debate 
thereon shall be limited to not more than one hour, to be 
divided equally between those favoring and those opposing the 
resolution. An amendment to the motion shall not be in order, 
and it shall not be in order to move to reconsider the vote by 
which the motion is agreed to or disagreed to.
  (F) If the motion to discharge is agreed to or disagreed to, 
the motion may not be renewed, nor may another motion to 
discharge the committee be made with respect to any other 
resolution with respect to the same bidding system.
  (G) When the committee has reported, or has been discharged 
from further consideration of, a resolution as provided in this 
paragraph, it shall be at any time thereafter in order (even 
though a previous motion to the same effect has been disagreed 
to) to move to proceed to the consideration of the resolution. 
The motion shall be highly privileged and shall not be 
debatable. An amendment to the motion shall not be in order, 
and it shall not be in order to move to reconsider the vote by 
which the motion is agreed to or disagreed to.
  (H) Debate on the resolution is limited to not more than two 
hours, to be divided equally between those favoring and those 
opposing the resolution. A motion further to limit debate is 
not debatable. An amendment to, or motion to recommit, the 
resolution is not in order, and it is not in order to move to 
reconsider the vote by which the resolution is agreed to or 
disagreed to.
  (I) Motions to postpone, made with respect to the discharge 
from the committee, or the consideration of a resolution with 
respect to a bidding system, and motions to proceed to the 
consideration of other business, shall be decided without 
debate.
  (J) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate or the House of 
Representatives, as the case may be, to the procedure relating 
to a resolution with respect to a bidding system shall be 
decided without debate.
  (5)(A) During the five-year period commencing on the date of 
enactment of this subsection, the Secretary may, in order to 
obtain statistical information to determine which bidding 
alternatives will best accomplish the purposes and policies of 
this Act, require, as to no more than 10 per centum of the 
tracts offered each year, each bidder to submit bids for any 
area of the outer Continental Shelf in accordance with more 
than one of the bidding systems set forth in paragraph (1) of 
this subsection. For such statistical purposes, leases may be 
awarded using a bidding alternative selected at random for the 
acquisition of valid statistical data if such bidding 
alternative is otherwise consistent with the provisions of this 
Act.
  (B) The bidding systems authorized by paragraph (1) of this 
subsection, other than the system authorized by subparagraph 
(A), shall be applied to not less than 20 per centum and not 
more than 60 per centum of the total area offered for leasing 
each year during the five-year period beginning on the date of 
enactment of this subsection, unless the Secretary determines 
that the requirements set forth in this subparagraph are 
inconsistent with the purposes and policies of this Act.
  (6) At least ninety days prior to notice of any lease sale 
under subparagraph (D), (E), (F), or, if appropriate, (H) of 
paragraph (1), the Secretary shall by regulation establish 
rules to govern the calculation of net profits. In the event of 
any dispute between the United States and a lessee concerning 
the calculation of the net profits under the regulation issued 
pursuant to this paragraph, the burden of proof shall be on the 
lessee.
  (7) After an oil and gas lease is granted pursuant to any of 
the work commitment options of paragraph (1) of this 
subsection--
          (A) the lessee, at its option, shall deliver to the 
        Secretary upon issuance of the lease either (i) a cash 
        deposit for the full amount of the exploration work 
        commitment, or (ii) a performance bond in form and 
        substance and with a surety satisfactory to the 
        Secretary, in the principal amount of such exploration 
        work commitment assuring the Secretary that such 
        commitment shall be faithfully discharged in accordance 
        with this section, regulations, and the lease; and for 
        purposes of this subparagraph, the principal amount of 
        such cash deposit or bond may, in accordance with 
        regulations, be periodically reduced upon proof, 
        satisfactory to the Secretary, that a portion of the 
        exploration work commitment has been satisfied;
          (B) 50 per centum of all exploration expenditures on, 
        or directly related to, the lease, including, but not 
        limited to (i) geological investigations and related 
        activities, (ii) geophysical investigations including 
        seismic, geomagnetic, and gravity surveys, data 
        processing and interpretation, and (iii) exploratory 
        drilling, core drilling, redrilling, and well 
        completion or abandonment, including the drilling of 
        wells sufficient to determine the size and area extent 
        of any newly discovered field, and including the cost 
        of mobilization and demobilization of drilling 
        equipment, shall be included in satisfaction of the 
        commitment, except that the lessee's general overhead 
        cost shall not be so included against the work 
        commitment, but its cost (including employee benefits) 
        of employees directly assigned to such exploration work 
        shall be so included; and
          (C) if at the end of the primary term of the lease, 
        including any extension thereof, the full dollar amount 
        of the exploration work commitment has not been 
        satisfied, the balance shall then be paid in cash to 
        the Secretary.
  (8) Not later than thirty days before any lease sale, the 
Secretary shall submit to the Congress and publish in the 
Federal Register a notice--
          (A) identifying any bidding system which will be 
        utilized for such lease sale and the reasons for the 
        utilization of such bidding system; and
          (B) designating the lease tracts selected which are 
        to be offered in such sale under the bidding system 
        authorized by subparagraph (A) of paragraph (1) and the 
        lease tracts selected which are to be offered under any 
        one or more of the bidding systems authorized by 
        subparagraphs (B) through (H) of paragraph (1), and the 
        reasons such lease tracts are to be offered under a 
        particular bidding system.
        (b) An oil and gas lease issued pursuant to this 
        section shall--
          (1) be for a tract consisting of a compact area not 
        exceeding five thousand seven hundred and sixty acres, 
        as the Secretary may determine, unless the Secretary 
        finds that a larger area is necessary to comprise a 
        reasonable economic production unit;
          (2) be for an initial period of--
                  (A) five years; or
                  (B) not to exceed ten years where the 
                Secretary finds that such longer period is 
                necessary to encourage exploration and 
                development in areas because of unusually deep 
                water or other unusually adverse conditions,
        and as long after such initial period as oil or gas is 
        produced from the area in paying quantities, or 
        drilling or well reworking operations as approved by 
        the Secretary are conducted thereon;
          (3) require the payment of amount or value as 
        determined by one of the bidding systems set forth in 
        subsection (a) of this section;
          (4) entitle the lessee to explore, develop, and 
        produce the oil and gas contained within the lease 
        area, conditioned upon due diligence requirements and 
        the approval of the development and production plan 
        required by this Act;
          (5) provide for suspension or cancellation of the 
        lease during the initial lease term or thereafter 
        pursuant to section 5 of this Act;
          (6) contain such rental and other provisions as the 
        Secretary may prescribe at the time of offering the 
        area for lease; and
          (7) provide a requirement that the lessee offer 20 
        per centum of the crude oil, condensate, and natural 
        gas liquids produced on such lease, at the market value 
        and point of delivery applicable to Federal royalty 
        oil, to small or independent refiners as defined in the 
        Emergency Petroleum Allocation Act of 1973.
  (c)(1) Following each notice of a proposed lease sale and 
before the acceptance of bids and the issuance of leases based 
on such bids, the Secretary shall allow the Attorney General, 
in consultation with the Federal Trade Commission, thirty days 
to review the results of such lease sale, except that the 
Attorney General, after consultation with the Federal Trade 
Commission, may agree to a shorter review period.
  (2) The Attorney General may, in consultation with the 
Federal Trade Commission, conduct such antitrust review on the 
likely effects the issuance of such leases would have on 
competition as the Attorney General, after consultation with 
the Federal Trade Commission, deems appropriate and shall 
advise the Secretary with respect to such review. The Secretary 
shall provide such information as the Attorney General, after 
consultation with the Federal Trade Commission, may require in 
order to conduct any antitrust review pursuant to this 
paragraph and to make recommendations pursuant to paragraph (3) 
of this subsection.
  (3) The Attorney General, after consultation with the Federal 
Trade Commission, may make such recommendations to the 
Secretary, including the nonacceptance of any bid, as may be 
appropriate to prevent any situation inconsistent with the 
antitrust laws. If the Secretary determines, or if the Attorney 
General advises the Secretary, after consultation with the 
Federal Trade Commission and prior to the issuance of any 
lease, that such lease may create or maintain a situation 
inconsistent with the antitrust laws, the Secretary may--
          (A) refuse (i) to accept an otherwise qualified bid 
        for such lease, or (ii) to issue such lease, 
        notwithstanding subsection (a) of this section; or
          (B) issue such lease, and notify the lessee and the 
        Attorney General of the reason for such decision.
  (4)(A) Nothing in this subsection shall restrict the power 
under any other Act or the common law of the Attorney General, 
the Federal Trade Commission, or any other Federal department 
or agency to secure information, conduct reviews, make 
recommendations, or seek appropriate relief.
  (B) Neither the issuance of a lease nor anything in this 
subsection shall modify or abridge any private right of action 
under the antitrust laws.
  (d) No bid for a lease may be submitted if the Secretary 
finds, after notice and hearing, that the bidder is not meeting 
due diligence requirements on other leases.
  (e) No lease issued under this Act may be sold, exchanged, 
assigned, or otherwise transferred except with the approval of 
the Secretary. Prior to any such approval, the Secretary shall 
consult with and give due consideration to the views of the 
Attorney General.
  (f) Nothing in this Act shall be deemed to convey to any 
person, association, corporation, or other business 
organization immunity from civil or criminal liability, or to 
create defenses to actions, under any antitrust law.
  (g)(1) At the time of soliciting nominations for the leasing 
of lands containing tracts wholly or partially within three 
nautical miles of the seaward boundary of any coastal State, 
and subsequently as new information is obtained or developed by 
the Secretary, the Secretary, in addition to the information 
required by section 26 of this Act, shall provide the Governor 
of such State--
          (A) an identification and schedule of the areas and 
        regions proposed to be offered for leasing;
          (B) at the request of the Governor of such State, all 
        information from all sources concerning the 
        geographical, geological, and ecological 
        characteristics of such tracts;
          (C) an estimate of the oil and gas reserves in the 
        areas proposed for leasing; and
          (D) at the request of the Governor of such State, an 
        identification of any field, geological structure, or 
        trap located wholly or partially within three nautical 
        miles of the seaward boundary of such coastal State, 
        including all information relating to the entire field, 
        geological structure, or trap.
The provisions of the first sentence of subsection (c) and the 
provisions of subsections (e)-(h) of section 26 of this Act 
shall be applicable to the release by the Secretary of any 
information to any coastal State under this paragraph. In 
addition, the provisions of subsections (c) and (e)-(h) of 
section 26 of this Act shall apply in their entirety to the 
release by the Secretary to any coastal State of any 
information relating to Federal lands beyond three nautical 
miles of the seaward boundary of such coastal State.
  (2) Notwithstanding any other provision of this Act, the 
Secretary shall deposit into a separate account in the Treasury 
of the United States all bonuses, rents, and royalties, and 
other revenues (derived from any bidding system authorized 
under subsection (a)(1), excluding Federal income and windfall 
profits taxes, and derived from any lease issued after 
September 18, 1978 of any Federal tract which lies wholly (or, 
in the case of Alaska, partially until seven years from the 
date of settlement of any boundary dispute that is the subject 
of an agreement under section 7 of this Act entered into prior 
to January 1, 1986 or until April 15, 1993 with respect to any 
other tract) within three nautical miles of the seaward 
boundary of any coastal State, or, (except as provided above 
for Alaska) in the case where a Federal tract lies partially 
within three nautical miles of the seaward boundary, a 
percentage of bonuses, rents, royalties, and other revenues 
(derived from any bidding system authorized under subsection 
(a)(1), excluding Federal income and windfall profits taxes, 
and derived from any lease issued after September 18, 1978 of 
such tract equal to the percentage of surface acreage of the 
tract that lies within such three nautical miles. Except as 
provided in paragraph (5) of this subsection, not later than 
the last business day of the month following the month in which 
those revenues are deposited in the Treasury, the Secretary 
shall transmit to such coastal State 27 percent of those 
revenues, together with all accrued interest thereon. The 
remaining balance of such revenues shall be transmitted 
simultaneously to the miscellaneous receipts account of the 
Treasury of the United States.
  (3) Whenever the Secretary or the Governor of a coastal State 
determines that a common potentially hydrocarbon-bearing area 
may underlie the Federal and State boundary, the Secretary or 
the Governor shall notify the other party in writing of his 
determination and the Secretary shall provide to the Governor 
notice of the current and projected status of the tract or 
tracts containing the common potentially hydrocarbon-bearing 
area. If the Secretary has leased or intends to lease such 
tract or tracts, the Secretary and the Governor of the coastal 
State may enter into an agreement to divide the revenues from 
production of any common potentially hydrocarbon-bearing area, 
by unitization or other royalty sharing agreement, pursuant to 
existing law. If the Secretary and the Governor do not enter 
into an agreement, the Secretary may nevertheless proceed with 
the leasing of the tract or tracts. Any revenue received by the 
United States under such an agreement shall be subject to the 
requirements of paragraph (2).
  (4) The deposits in the Treasury account described in this 
section shall be invested by the Secretary of the Treasury in 
securities backed by the full faith and credit of the United 
States having maturities suitable to the needs of the account 
and yielding the highest reasonably available interest rates as 
determined by the Secretary of the Treasury.
  (5)(A) When there is a boundary dispute between the United 
States and a State which is subject to an agreement under 
section 7 of this Act, the Secretary shall credit to the 
account established pursuant to such agreement all bonuses, 
rents, and royalties, and other revenues (derived from any 
bidding system authorized under subsection (a)(1)), excluding 
Federal income and windfall profits taxes, and derived from any 
lease issued after September 18, 1978 of any Federal tract 
which lies wholly or partially within three nautical miles of 
the seaward boundary asserted by the State, if that money has 
not otherwise been deposited in such account. Proceeds of an 
escrow account established pursuant to an agreement under 
section 7 shall be distributed as follows:
          (i) Twenty-seven percent of all bonuses, rents, and 
        royalties, and other revenues (derived from any bidding 
        system authorized under subsection (a)(1)), excluding 
        Federal income and windfall profits taxes, and derived 
        from any lease issued after September 18, 1978, of any 
        tract which lies wholly within three nautical miles of 
        the seaward boundary asserted by the Federal Government 
        in the boundary dispute, together with all accrued 
        interest thereon, shall be paid to the State either--
                  (I) within thirty days of December 1, 1987, 
                or
                  (II) by the last business day of the month 
                following the month in which those revenues are 
                deposited in the Treasury, whichever date is 
                later.
          (ii) Upon the settlement of a boundary dispute which 
        is subject to a section 7 agreement between the United 
        States and a State, the Secretary shall pay to such 
        State any additional moneys due such State from amounts 
        deposited in or credited to the escrow account. If 
        there is insufficient money deposited in the escrow 
        account, the Secretary shall transmit, from any 
        revenues derived from any lease of Federal lands under 
        this Act, the remaining balance due such State in 
        accordance with the formula set forth in section 
        8004(b)(1)(B) of the Outer Continental Shelf Lands Act 
        Amendments of 1985.
  (B) This paragraph applies to all Federal oil and gas lease 
sales, under this Act, including joint lease sales, occurring 
after September 18, 1978.
  (6) This section shall be deemed to take effect on October 1, 
1985, for purposes of determining the amounts to be deposited 
in the separate account and the States' shares described in 
paragraph (2).
  (7) When the Secretary leases any tract which lies wholly or 
partially within three miles of the seaward boundary of two or 
more States, the revenues from such tract shall be distributed 
as otherwise provided by this section, except that the State's 
share of such revenues that would otherwise result under this 
section shall be divided equally among such States.
  (h) Nothing contained in this section shall be construed to 
alter, limit, or modify any claim of any State to any 
jurisdiction over, or any right, title or interest in, any 
submerged lands.
  (i) In order to meet the urgent need for further exploration 
and development of the sulphur deposits in the submerged lands 
of the outer Continental Shelf, the Secretary is authorized to 
grant to the qualified persons offering the highest cash 
bonuses on a basis of competitive bidding sulphur leases on 
submerged lands of the outer Continental Shelf, which are not 
covered by leases which include sulphur and meet the 
requirements of subsection (a) of section 6 of this Act, and 
which sulphur leases shall be offered for bid by sealed bids 
and granted on separate leases from oil and gas leases, and for 
a separate consideration, and without priority or preference 
accorded to oil and gas lessees on the same area.
  (j) A sulphur lease issued by the Secretary pursuant to this 
section shall (1) cover an area of such size and dimensions as 
the Secretary may determine, (2) be for a period of not more 
than ten years and so long thereafter as sulphur may be 
produced from the area in paying quantities or drilling, well 
reworking, plant construction, or other operations for the 
production of sulphur, as approved by the Secretary, are 
conducted thereon, (3) require the payment to the United States 
of such royalty as may be specified in the lease but not less 
than 5 per centum of the gross production of value of the 
sulphur at the wellhead, and (4) contained such rental 
provisions and such other terms and provisions as the Secretary 
may by regulation prescribe at the time of offering the area 
for lease.
  (k)(1) The Secretary is authorized to grant to the qualified 
persons offering the highest cash bonuses on a basis of 
competitive bidding leases of any mineral other than oil, gas, 
and sulphur in any area of the outer Continental Shelf not then 
under lease for such mineral upon such royalty, rental, and 
other terms and conditions as the Secretary may prescribe at 
the time of offering the area for lease.
  (2)(A) Notwithstanding paragraph (1), the Secretary may 
negotiate with any person an agreement for the use of Outer 
Continental Shelf sand, gravel and shell resources--
          (i) for use in a program of, or project for, shore 
        protection, beach restoration, or coastal wetlands 
        restoration undertaken by a Federal, State, or local 
        government agency; or
          (ii) for use in a construction project, other than a 
        project described in clause (i), that is funded in 
        whole or in part by or authorized by the Federal 
        Government.
  (B) In carrying out a negotiation under this paragraph, the 
Secretary may assess a fee based on an assessment of the value 
of the resources and the public interest served by promoting 
development of the resources. No fee shall be assessed directly 
or indirectly under this subparagraph against a Federal, State, 
or local government agency.
  (C) The Secretary may, through this paragraph and in 
consultation with the Secretary of Commerce, seek to facilitate 
projects in the coastal zone, as such term is defined in 
section 304 of the Coastal Zone Management Act of 1972 (16 
U.S.C. 1453), that promote the policy set forth in section 303 
of that Act (16 U.S.C. 1452).
  (D) Any Federal agency which proposes to make use of sand, 
gravel and shell resources subject to the provisions of this 
Act shall enter into a Memorandum of Agreement with the 
Secretary concerning the potential use of those resources. The 
Secretary shall notify the Committee on Merchant Marine and 
Fisheries and the Committee on Natural Resources of the House 
of Representatives and the Committee on Energy and Natural 
Resources of the Senate on any proposed project for the use of 
those resources prior to the use of those resources.
          (3) Exploration licenses and leases on outer 
        continental shelf adjacent to territories and 
        possessions.--
                  (A) In general.--The Secretary is authorized 
                to grant to any qualified applicant an 
                exploration license which will provide the 
                exclusive right to explore for minerals, other 
                than oil, gas, and sulphur, in an area lying 
                within the United States exclusive economic 
                zone and the outer Continental Shelf adjacent 
                to any territory or possession of the United 
                States.
                  (B) Application.--Subsection (a) shall not 
                apply to any area conveyed by Congress to a 
                territorial government for administration.
                  (C) Exploration license duration.--
                Exploration licenses granted under this 
                paragraph will be issued for a period pursuant 
                to regulations prescribed by the Secretary.
                  (D) Lease.--Upon showing to the satisfaction 
                of the Secretary that valuable mineral deposits 
                have been discovered by the licensee within the 
                area described by the exploration license of 
                the licensee, the licensee will be entitled to 
                a lease for any or all of that area at a 
                royalty rate established by regulation and 
                lease terms.
                  (E) Lease duration.--Leases under this 
                section will be issued for a period established 
                by regulation with a preferential right in the 
                lessee to renew.
  (l) Notices of sale of leases, and the terms of bidding 
authorized by this section shall be published at least thirty 
days before the date of sale in accordance with rules and 
regulations promulgated by the Secretary.
  (m) All moneys paid to the Secretary for or under leases 
granted pursuant to this section shall be deposited in the 
Treasury in accordance with section 9 of this Act.
  (n) The issuance of any lease by the Secretary pursuant to 
this Act, or the making of any interim arrangements by the 
Secretary pursuant to section 7 of this Act shall not prejudice 
the ultimate settlement or adjudication of the question as to 
whether or not the area involved is in the outer Continental 
Shelf.
  (o) The Secretary may cancel any lease obtained by fraud or 
misrepresentation.
  (p) Leases, Easements, or Rights-of-way for Energy and 
Related Purposes.--
          (1) In general.--The Secretary, in consultation with 
        the Secretary of the Department in which the Coast 
        Guard is operating and other relevant departments and 
        agencies of the Federal Government, may grant a lease, 
        easement, or right-of-way on the outer Continental 
        Shelf for activities not otherwise authorized in this 
        Act, the Deepwater Port Act of 1974 (33 U.S.C. 1501 et 
        seq.), the Ocean Thermal Energy Conversion Act of 1980 
        (42 U.S.C. 9101 et seq.), or other applicable law, if 
        those activities--
                  (A) support exploration, development, 
                production, or storage of oil or natural gas, 
                except that a lease, easement, or right-of-way 
                shall not be granted in an area in which oil 
                and gas preleasing, leasing, and related 
                activities are prohibited by a moratorium;
                  (B) support transportation of oil or natural 
                gas, excluding shipping activities;
                  (C) produce or support production, 
                transportation, or transmission of energy from 
                sources other than oil and gas; or
                  (D) use, for energy-related purposes or for 
                other authorized marine-related purposes, 
                facilities currently or previously used for 
                activities authorized under this Act, except 
                that any oil and gas energy-related uses shall 
                not be authorized in areas in which oil and gas 
                preleasing, leasing, and related activities are 
                prohibited by a moratorium.
          (2) Payments and revenues.--(A) The Secretary shall 
        establish royalties, fees, rentals, bonuses, or other 
        payments to ensure a fair return to the United States 
        for any lease, easement, or right-of-way granted under 
        this subsection.
          (B) The Secretary shall provide for the payment of 27 
        percent of the revenues received by the Federal 
        Government as a result of payments under this section 
        from projects that are located wholly or partially 
        within the area extending three nautical miles seaward 
        of State submerged lands. Payments shall be made based 
        on a formula established by the Secretary by rulemaking 
        no later than 180 days after the date of enactment of 
        this section that provides for equitable distribution, 
        based on proximity to the project, among coastal states 
        that have a coastline that is located within 15 miles 
        of the geographic center of the project.
          (3) Competitive or noncompetitive basis.--Except with 
        respect to projects that meet the criteria established 
        under section 388(d) of the Energy Policy Act of 2005, 
        the Secretary shall issue a lease, easement, or right-
        of-way under paragraph (1) on a competitive basis 
        unless the Secretary determines after public notice of 
        a proposed lease, easement, or right-of-way that there 
        is no competitive interest.
          (4) Requirements.--The Secretary shall ensure that 
        any activity under this subsection is carried out in a 
        manner that provides for--
                  (A) safety;
                  (B) protection of the environment;
                  (C) prevention of waste;
                  (D) conservation of the natural resources of 
                the outer Continental Shelf;
                  (E) coordination with relevant Federal 
                agencies;
                  (F) protection of national security interests 
                of the United States;
                  (G) protection of correlative rights in the 
                outer Continental Shelf;
                  (H) a fair return to the United States for 
                any lease, easement, or right-of-way under this 
                subsection;
                  (I) prevention of interference with 
                reasonable uses (as determined by the 
                Secretary) of the exclusive economic zone, the 
                high seas, and the territorial seas;
                  (J) consideration of--
                          (i) the location of, and any schedule 
                        relating to, a lease, easement, or 
                        right-of-way for an area of the outer 
                        Continental Shelf; and
                          (ii) any other use of the sea or 
                        seabed, including use for a fishery, a 
                        sealane, a potential site of a 
                        deepwater port, or navigation;
                  (K) public notice and comment on any proposal 
                submitted for a lease, easement, or right-of-
                way under this subsection; and
                  (L) oversight, inspection, research, 
                monitoring, and enforcement relating to a 
                lease, easement, or right-of-way under this 
                subsection.
          (5) Lease duration, suspension, and cancellation.--
        The Secretary shall provide for the duration, issuance, 
        transfer, renewal, suspension, and cancellation of a 
        lease, easement, or right-of-way under this subsection.
          (6) Security.--The Secretary shall require the holder 
        of a lease, easement, or right-of-way granted under 
        this subsection to--
                  (A) furnish a surety bond or other form of 
                security, as prescribed by the Secretary;
                  (B) comply with such other requirements as 
                the Secretary considers necessary to protect 
                the interests of the public and the United 
                States; and
                  (C) provide for the restoration of the lease, 
                easement, or right-of-way.
          (7) Coordination and consultation with affected state 
        and local governments.--The Secretary shall provide for 
        coordination and consultation with the Governor of any 
        State or the executive of any local government that may 
        be affected by a lease, easement, or right-of-way under 
        this subsection.
          (8) Regulations.--Not later than 270 days after the 
        date of enactment of the Energy Policy Act of 2005, the 
        Secretary, in consultation with the Secretary of 
        Defense, the Secretary of the Department in which the 
        Coast Guard is operating, the Secretary of Commerce, 
        heads of other relevant departments and agencies of the 
        Federal Government, and the Governor of any affected 
        State, shall issue any necessary regulations to carry 
        out this subsection.
          (9) Effect of subsection.--Nothing in this subsection 
        displaces, supersedes, limits, or modifies the 
        jurisdiction, responsibility, or authority of any 
        Federal or State agency under any other Federal law.
          (10) Applicability.--This subsection does not apply 
        to any area on the outer Continental Shelf within the 
        exterior boundaries of any unit of the National Park 
        System, National Wildlife Refuge System, or National 
        Marine Sanctuary System, or any National Monument.
  Sec. 9. Disposition of Revenues.--[All rentals] (a)  In 
General._Except as otherwise provided in this section, all 
rentals , royalties, and other sums paid to the Secretary or 
the Secretary of the Navy under any lease on the outer 
Continental Shelf for the period from June 5, 1950, to date, 
and thereafter shall be deposited in the Treasury of the United 
States and credited to miscellaneous receipts.
  (b) Distribution of Revenue to Producing States.--
          (1) Definitions.--In this subsection:
                  (A) Covered planning area.--
                          (i) In general.--Subject to clause 
                        (ii), the term ``covered planning 
                        area'' means each of the following 
                        planning areas, as such planning areas 
                        are generally depicted in the later of 
                        the 2017-2022 Outer Continental Shelf 
                        Oil and Gas Leasing Proposed Final 
                        Program, dated November 2016, or a 
                        subsequent oil and gas leasing program 
                        developed under section 18 of the Outer 
                        Continental Shelf Lands Act (43 U.S.C. 
                        1344):
                                  (I) Mid-Atlantic.
                                  (II) South Atlantic.
                                  (III) Any planning area 
                                located off the coast of 
                                Alaska.
                          (ii) Exclusions.--The term ``covered 
                        planning area'' does not include any 
                        area in the Atlantic--
                                  (I) north of the southernmost 
                                lateral seaward administrative 
                                boundary of the State of 
                                Maryland; or
                                  (II) south of the 
                                northernmost lateral seaward 
                                administrative boundary of the 
                                State of Florida.
                  (B) Producing state.--The term ``producing 
                State'' means each of the following States:
                          (i) Virginia.
                          (ii) North Carolina.
                          (iii) South Carolina.
                          (iv) Georgia.
                          (v) Alaska.
                  (C) Qualified revenues.--
                          (i) In general.--The term ``qualified 
                        revenues'' means revenues derived from 
                        rentals, royalties, bonus bids, and 
                        other sums due and payable to the 
                        United States under oil and gas leases 
                        entered into on or after the date of 
                        the enactment of this Act for an area 
                        in a covered planning area.
                          (ii) Exclusions.--The term 
                        ``qualified revenues'' does not 
                        include--
                                  (I) revenues from the 
                                forfeiture of a bond or other 
                                surety securing obligations 
                                other than royalties, civil 
                                penalties, or royalties taken 
                                by the Secretary in-kind and 
                                not sold;
                                  (II) revenues generated from 
                                leases subject to section 8(g); 
                                and
                                  (III) the portion of rental 
                                revenues in excess of those 
                                that would have been collected 
                                at the rental rates in effect 
                                before August 5, 1993.
          (2) Deposit of qualified revenues.--
                  (A) Phase i.--With respect to qualified 
                revenues under leases awarded under the first 
                leasing program approved under section 18(a) 
                that takes effect after the date of the 
                enactment of this section, the Secretary of the 
                Treasury shall deposit or allocate, as 
                applicable--
                          (i) 87.5 percent into the general 
                        fund of the Treasury; and
                          (ii) 12.5 percent to States in 
                        accordance with paragraph (3).
                  (B) Phase ii.--With respect to qualified 
                revenues under leases awarded under the second 
                leasing program approved under section 18(a) 
                that takes effect after the date of the 
                enactment of this section, the Secretary of the 
                Treasury shall deposit or allocate, as 
                applicable--
                          (i) 75 percent into the general fund 
                        of the Treasury; and
                          (ii) 25 percent to States in 
                        accordance with paragraph (3).
                  (C) Phase iii.--With respect to qualified 
                revenues under leases awarded under the third 
                leasing program approved under section 18(a) 
                that takes effect after the date of the 
                enactment of this section and under any such 
                leasing program subsequent to such third 
                leasing program, the Secretary of the Treasury 
                shall deposit or allocate, as applicable--
                          (i) 50 percent into the general fund 
                        of the Treasury; and
                          (ii) 50 percent into a special 
                        account in the Treasury from which the 
                        Secretary of the Treasury shall 
                        disburse--
                                  (I) 75 percent to States in 
                                accordance with paragraph (3);
                                  (II) 12.5 percent to the 
                                Secretary of Transportation for 
                                energy infrastructure 
                                development in coastal ports; 
                                and
                                  (III) 12.5 percent to the 
                                Secretary of the Interior for 
                                units of the National Park 
                                System.
          (3) Allocation to producing states.--
                  (A) In general.--Subject to subparagraph (B), 
                the Secretary of the Treasury shall allocate 
                the qualified revenues distributed to States 
                under paragraph (2) to each producing State in 
                an amount based on a formula established by the 
                Secretary of the Interior, by regulation, 
                that--
                          (i) is inversely proportional to the 
                        respective distances between--
                                  (I) the point on the 
                                coastline of the producing 
                                State that is closest to the 
                                geographical center of the 
                                applicable leased tract; and
                                  (II) the geographical center 
                                of that leased tract;
                          (ii) does not allocate qualified 
                        revenues to any producing State that is 
                        further than 200 nautical miles from 
                        the leased tract; and
                          (iii) allocates not less than 10 
                        percent of qualified revenues to each 
                        producing State that is 200 or fewer 
                        nautical miles from the leased tract.
                  (B) Payments to coastal political 
                subdivisions.--
                          (i) In general.--The Secretary of the 
                        Treasury shall pay 20 percent of the 
                        allocable share of each producing State 
                        determined under this paragraph to the 
                        coastal political subdivisions of the 
                        producing State.
                          (ii) Allocation.--The amount paid by 
                        the Secretary of the Treasury to 
                        coastal political subdivisions shall be 
                        allocated to each coastal political 
                        subdivision in accordance with 
                        subparagraphs (B) and (E) of section 
                        31(b)(4).
                          (iii) Definition of coastal political 
                        subdivision.--In this subparagraph, the 
                        term ``coastal political subdivision'' 
                        means--
                                  (I) with respect to a 
                                contiguous coastal State, a 
                                political subdivision of such 
                                State, any part of which is--
                                          (aa) within the 
                                        coastal zone of the 
                                        State (as defined in 
                                        section 304 of the 
                                        Coastal Zone Management 
                                        2 Act of 1972 (16 
                                        U.S.C. 1453)); and
                                          (bb) not more than 
                                        200 nautical miles from 
                                        the geographic center 
                                        of any leased tract; 
                                        and
                                  (II) with respect to a 
                                noncontiguous coastal State--
                                          (aa) a county-
                                        equivalent subdivision 
                                        of the State for 
                                        which--
                                                  (AA) all or 
                                                part lies 
                                                within the 
                                                coastal zone of 
                                                the State (as 
                                                defined in 
                                                section 304 of 
                                                the Coastal 
                                                Zone Management 
                                                Act of 1972 (16 
                                                U.S.C. 1453)); 
                                                and
                                                  (BB) the 
                                                closest coastal 
                                                point is not 
                                                more than 200 
                                                nautical miles 
                                                from the 
                                                geographical 
                                                center of any 
                                                leased tract on 
                                                the outer 
                                                Continental 
                                                Shelf; or
                                          (bb) a municipal 
                                        subdivision of the 
                                        State for which--
                                                  (AA) the 
                                                closest point 
                                                is more than 
                                                200 nautical 
                                                miles from the 
                                                geographical 
                                                center of a 
                                                leased tract on 
                                                the outer 
                                                Continental 
                                                Shelf; and
                                                  (BB) the 
                                                State has 
                                                determined to 
                                                be a 
                                                significant 
                                                staging area 
                                                for oil and gas 
                                                servicing, 
                                                supply vessels, 
                                                operations, 
                                                suppliers, or 
                                                workers.
          (4) Administration.--Amounts made available under 
        paragraph (2)(B) shall--
                  (A) be made available, without further 
                appropriation, in accordance with this 
                subsection;
                  (B) remain available until expended;
                  (C) be in addition to any amounts 
                appropriated under--
                          (i) chapter 2003 of title 54, United 
                        States Code;
                          (ii) any other provision of this Act; 
                        and
                          (iii) any other provision of law; and
                  (D) be made available during the fiscal year 
                immediately following the fiscal year in which 
                such amounts were received.

           *       *       *       *       *       *       *

  Sec. 12. Reservations.--[(a) The President of the United 
States may, from time to time, withdraw from disposition any of 
the unleased lands of the outer Continental Shelf.]
  (a) Limitation on Withdrawal.--
          (1) In general.--Except as otherwise provided in this 
        section, no lands of the outer Continental Shelf may be 
        withdrawn from disposition except by an Act of 
        Congress.
          (2) National marine sanctuaries.--The President may 
        withdraw from disposition any of the unleased lands of 
        the outer Continental Shelf located in a national 
        marine sanctuary designated in accordance with the 
        National Marine Sanctuaries Act (16 U.S.C. 1431 et 
        seq.) or otherwise by statute.
          (3) Existing withdrawals.--
                  (A) In general.--Except for the withdrawals 
                listed in subparagraph (B), any withdrawal from 
                disposition of lands on the outer Continental 
                Shelf before the date of the enactment of this 
                subsection shall have no force or effect.
                  (B) Exceptions.--Subparagraph (A) shall not 
                apply to the following withdrawals:
                          (i) Any withdrawal in a national 
                        marine sanctuary designated in 
                        accordance with the National Marine 
                        Sanctuaries Act.
                          (ii) Any withdrawal in a national 
                        monument declared under section 320301 
                        of title 54, United States Code, or the 
                        Act of June 8, 1906 (ch. 3060; 34 Stat. 
                        225).
                          (iii) Any withdrawal in the North 
                        Aleutian Basin Planning Area, including 
                        Bristol Bay.
  (b) In time of war, or when the President shall so prescribe, 
the United States shall have the right of first refusal to 
purchase at the market price all or any portion of any mineral 
produced from the outer Continental Shelf.
  (c) All leases issued under this Act, and leases, the 
maintenance and operation of which are authorized under this 
Act, shall contain or be construed to contain a provision 
whereby authority is vested in the Secretary, upon a 
recommendation of the Secretary of Defense, during a state of 
war or national emergency declared by the Congress or the 
President of the United States after the effective date of this 
Act, to suspend operations under any lease; and all such leases 
shall contain or be construed to contain provisions for the 
payment of just compensation to the lessee whose operations are 
thus suspended.
  (d) The United States reserves and retains the right to 
designate by and through the Secretary of Defense, with the 
approval of the President, as areas restricted from exploration 
and operation that part of the outer Continental Shelf needed 
for national defense; and so long as such designation remains 
in effect no exploration or operations may be conducted on any 
part of the surface of such area except with the concurrence of 
the Secretary of Defense; and if operations or production under 
any lease theretofore issued on lands within any such 
restricted area shall be suspended, any payment of rentals, 
minimum royalty, and royalty prescribed by such lease likewise 
shall be suspended during such period of suspension of 
operation and production, and the term of such lease shall be 
extended by adding thereto any such suspension period, and the 
United States shall be liable to the lessee for such 
compensation as is required to be paid under the Constitution 
of the United States.
  (e) All uranium, thorium, and all other materials determined 
pursuant to paragraph (1) of subsection (b) of section 5 of the 
Atomic Energy Act of 1946, as amended, to be peculiarly 
essential to the production of fissionable material, contained, 
in whatever concentration, in deposits in the subsoil or seabed 
of the outer Continental Shelf are hereby reserved for the use 
of the United States.
  (f) The United States reserves and retains the ownership of 
and the right to extract all helium, under such rules and 
regulations as shall be prescribed by the Secretary, contained 
in gas produced from any portion of the outer Continental Shelf 
which may be subject to any lease maintained or granted 
pursuant to this Act, but the helium shall be extracted from 
such gas so as to cause no substantial delay in the delivery of 
gas produced to the purchaser of such gas.

           *       *       *       *       *       *       *

  Sec. 18. Outer Continental Shelf Leasing Program.--(a) The 
Secretary, pursuant to procedures set forth in subsections (c) 
and (d) of this section, shall prepare and periodically revise, 
and maintain an oil and gas leasing program to implement the 
policies of this Act. The leasing program shall consist of a 
schedule of proposed lease sales indicating, as precisely as 
possible, the size, timing, and location of leasing activity 
which he determines will best meet national energy needs for 
the five-year period following its approval or reapproval. Such 
leasing program shall be prepared and maintained in a manner 
consistent with the following principles:
          (1) Management of the outer Continental Shelf shall 
        be conducted in a manner which considers economic, 
        social, and environmental values of the renewable and 
        nonrenewable resources contained in the outer 
        Continental Shelf, and the potential impact of oil and 
        gas exploration on other resource values of the outer 
        Continental Shelf and the marine, coastal, and human 
        environments.
          (2) Timing and location of exploration, development, 
        and production of oil and gas among the oil- and gas-
        bearing physiographic regions of the outer Continental 
        Shelf shall be based on a consideration of--
                  (A) existing information concerning the 
                geographical, geological, and ecological 
                characteristics of such regions;
                  (B) an equitable sharing of developmental 
                benefits and environmental risks among the 
                various regions;
                  (C) the location of such regions with respect 
                to, and the relative needs of, regional and 
                national energy markets;
                  (D) the location of such regions with respect 
                to other uses of the sea and seabed, including 
                fisheries, navigation, existing or proposed 
                sealanes, potential sites of deepwater ports, 
                and other anticipated uses of the resources and 
                space of the outer Continental Shelf;
                  (E) the interest of potential oil and gas 
                producers in the development of oil and gas 
                resources as indicated by exploration or 
                nomination;
                  (F) laws, goals, and policies of affected 
                States which have been specifically identified 
                by the Governors of such States as relevant 
                matters for the Secretary's consideration;
                  (G) the relative environmental sensitivity 
                and marine productivity of different areas of 
                the outer Continental Shelf; and
                  (H) relevant environmental and predictive 
                information for different areas of the outer 
                Continental Shelf.
          (3) The Secretary shall select the timing and 
        location of leasing, to the maximum extent practicable, 
        so as to obtain a proper balance between the potential 
        for environmental damage, the potential for the 
        discovery of oil and gas, and the potential for adverse 
        impact on the coastal zone.
          (4) Leasing activities shall be conducted to assure 
        receipt of fair market value for the lands leased and 
        the rights conveyed by the Federal Government.
  (b) The leasing program shall include estimates of the 
appropriations and staff required to--
          (1) obtain resource information and any other 
        information needed to prepare the leasing program 
        required by this section;
          (2) analyze and interpret the exploratory data and 
        any other information which may be compiled under the 
        authority of this Act;
          (3) conduct environmental studies and prepare any 
        environmental impact statement required in accordance 
        with this Act and with section 102(2)(C) of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4332(2)(C)); and
          (4) supervise operations conducted pursuant to each 
        lease in the manner necessary to assure due diligence 
        in the exploration and development of the lease area 
        and compliance with the requirement of applicable laws 
        and regulations, and with the terms of the lease.
  (c)(1) During the preparation of any proposed leasing program 
under this section, the Secretary shall invite and consider 
suggestions for such program from any interested Federal 
agency, including the Attorney General, in consultation with 
the Federal Trade Commission, and from the Governor of any 
State which may become an affected State under such proposed 
program. The Secretary may also invite or consider any 
suggestions from the executive of any affected local government 
in such an affected State, which have been previously submitted 
to the Governor of such State, and from any other person.
  (2) After such preparation and at least sixty days prior to 
publication of a proposed leasing program in the Federal 
Register pursuant to paragraph (3) of this subsection, the 
Secretary shall submit a copy of such proposed program to the 
Governor of each affected State for review and comment. The 
Governor may solicit comments from those executives of local 
governments in his State which he, in his discretion, 
determines will be affected by the proposed program. If any 
comment by such Governor is received by the Secretary at least 
fifteen days prior to submission to the Congress pursuant to 
such paragraph (3) and includes a request for any modification 
of such proposed program, the Secretary shall reply in writing, 
granting or denying such request in whole or in part, or 
granting such request in such modified form as the Secretary 
considers appropriate, and stating his reasons therefor. All 
such correspondence between the Secretary and Governor of any 
affected State, together with any additional information and 
data relating thereto, shall accompany such proposed program 
when it is submitted to the Congress.
  (3) Within nine months after the date of enactment of this 
section, the Secretary shall submit a proposed leasing program 
to the Congress, the Attorney General, and the Governors of 
affected States, and shall publish such proposed program in the 
Federal Register. Each Governor shall, upon request, submit a 
copy of the proposed leasing program to the executive of any 
local government affected by the proposed program.
  (d)(1) Within ninety days after the date of publication of a 
proposed leasing program, the Attorney General may, after 
consultation with the Federal Trade Commission, submit comments 
on the anticipated effects of such proposed program upon 
competition. Any State, local government, or other person may 
submit comments and recommendations as to any aspect of such 
proposed program.
  (2) At least sixty days prior to approving a proposed leasing 
program, the Secretary shall submit it to the President and the 
Congress, together with any comments received. Such submission 
shall indicate why any specific recommendation of the Attorney 
General or a State or local government was not accepted.
  (3) After the leasing program has been approved by the 
Secretary, or after eighteen months following the date of 
enactment of this section, whichever first occurs, no lease 
shall be issued unless it is for an area included in the 
approved leasing program and unless it contains provisions 
consistent with the approved leasing program, except that 
leasing shall be permitted to continue until such program is 
approved and for so long thereafter as such program is under 
judicial or administrative review pursuant to the provisions of 
this Act.
  (e) The Secretary shall review the leasing program approved 
under this section at least once each year. He may revise and 
reapprove such program, at any time, and such revision and 
reapproval, except in the case of a revision which is not 
significant, shall be in the same manner as originally 
developed. The Secretary shall include in any such revised 
leasing program each unexecuted lease sale that was included in 
the most recent leasing program and the Secretary shall execute 
each such lease sale as close as practicable to the time 
specified in the most recent leasing program. Section 102(2)(C) 
of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332) shall be deemed to have been satisfied with respect to 
the execution of such unexecuted lease sales if the Secretary, 
in the Secretary's sole discretion, determines that such 
section was satisfied with respect to such unexecuted lease 
sales for the most recent leasing program.
  (f) The Secretary shall, by regulation, establish procedures 
for--
          (1) receipt and consideration of nominations for any 
        area to be offered for lease or to be excluded from 
        leasing;
          (2) public notice of and participation in development 
        of the leasing program;
          (3) review by State and local governments which may 
        be impacted by the proposed leasing;
          (4) periodic consultation with State and local 
        governments, oil and gas lessees and permittees, and 
        representatives of other individuals or organizations 
        engaged in activity in or on the outer Continental 
        Shelf, including those involved in fish and shellfish 
        recovery, and recreational activities; and
          (5) consideration of the coastal zone management 
        program being developed or administered by an affected 
        coastal State pursuant to section 305 or section 306 of 
        the Coastal Zone Management Act of 1972 (16 U.S.C. 
        1454, 1455).
Such procedures shall be applicable to any significant revision 
or reapproval of the leasing program.
  (g) The Secretary may obtain from public sources, or purchase 
from private sources, any survey, data, report, or other 
information (including interpretations of such data, survey, 
report, or other information) which may be necessary to assist 
him in preparing any environmental impact statement and in 
making other evaluations required by this Act. Data of a 
classified nature provided to the Secretary under the 
provisions of this subsection shall remain confidential for 
such period of time as agreed to by the head of the department 
or agency from whom the information is requested. The Secretary 
shall maintain the confidentiality of all privileged or 
proprietary data or information for such period of time as is 
provided for in this Act, established by regulation, or agreed 
to by the parties.
  (h) The heads of all Federal departments and agencies shall 
provide the Secretary with any nonprivileged or nonproprietary 
information he requests to assist him in preparing the leasing 
program and may provide the Secretary with any privileged or 
proprietary information he requests to assist him in preparing 
the leasing program. Privileged or proprietary information 
provided to the Secretary under the provisions of this 
subsection shall remain confidential for such period of time as 
agreed to by the head of the department or agency from whom the 
information is requested. In addition, the Secretary shall 
utilize the existing capabilities and resources of such Federal 
departments and agencies by appropriate agreement.
  (i) This section shall not apply to the scheduling of lease 
sales in the outer Continental Shelf adjacent to the 
territories and possessions of the United States.

           *       *       *       *       *       *       *

  Sec. 22. Enforcement.--(a) The Secretary, the Secretary of 
the Department in which the Coast Guard is operating, and the 
Secretary of the Army shall enforce safety and environmental 
regulations promulgated pursuant to this Act. Each such Federal 
department may by agreement utilize, with or without 
reimbursement, the services, personnel, or facilities of other 
Federal departments and agencies for the enforcement of their 
respective regulations.
  (b) It shall be the duty of any holder of a lease or permit 
under this Act to--
          (1) maintain all places of employment within the 
        lease area or within the area covered by such permit in 
        compliance with occupational safety and health 
        standards and, in addition, free from recognized 
        hazards to employees of the lease holder or permit 
        holder or of any contractor or subcontractor operating 
        within such lease area or within the area covered by 
        such permit on the outer Continental Shelf;
          (2) maintain all operations within such lease area or 
        within the area covered by such permit in compliance 
        with regulations intended to protect persons, property, 
        and the environment on the outer Continental Shelf; and
          (3) allow prompt access, at the site of any operation 
        subject to safety regulations, to any inspector, and to 
        provide such documents and records which are pertinent 
        to occupational or public health, safety, or 
        environmental protection, as may be requested.
  (c) The Secretary and the Secretary of the Department in 
which the Coast Guard is operating shall individually, or 
jointly if they so agree, promulgate regulations to provide 
for--
          (1) scheduled onsite inspection, at least once a 
        year, of each facility on the outer Continental Shelf 
        which is subject to any environmental or safety 
        regulation promulgated pursuant to this Act, which 
        inspection shall include all safety equipment designed 
        to prevent or ameliorate blowouts, fires, spillages, or 
        other major accidents; and
          (2) periodic onsite inspection without advance notice 
        to the operator of such facility to assure compliance 
        with such environmental or safety regulations.
  (d)(1) The Secretary or the Secretary of the Department in 
which the Coast Guard is operating shall make an investigation 
and public report on each major fire and each major oil 
spillage occurring as a result of operations conducted pursuant 
to this Act, and may, in his discretion, make an investigation 
and report of lesser oil spillages. For purposes of this 
subsection, a major oil spillage is any spillage in one 
instance of more than two hundred barrels of oil during a 
period of thirty days. All holders of leases or permits issued 
or maintained under this Act shall cooperate with the 
appropriate Secretary in the course of any such investigation.
  (2) The Secretary or the Secretary of the Department in which 
the Coast Guard is operating shall make an investigation and 
public report on any death or serious injury occurring as a 
result of operations conducted pursuant to this Act, and may, 
in his discretion, make an investigation and report of any 
injury. For purposes of this subsection, a serious injury is 
one resulting in substantial impairment of any bodily unit or 
function. All holders of leases or permits issued or maintained 
under this Act shall cooperate with the appropriate Secretary 
in the course of any such investigation.
  (e) The Secretary, or, in the case of occupational safety and 
health, the Secretary of the Department in which the Coast 
Guard is operating, may review any allegation from any person 
of the existence of a violation of a safety regulation issued 
under this Act.
  (f) In any investigation conducted pursuant to this section, 
the Secretary or the Secretary of the Department in which the 
Coast Guard is operating shall have power to summon witnesses 
and to require the production of books, papers, documents, and 
any other evidence. Attendance of witnesses or the production 
of books, papers, documents, or any other evidence shall be 
compelled by a similar process, as in the district courts of 
the United States. Such Secretary, or his designee, shall 
administer all necessary oaths to any witnesses summoned before 
such investigation.
  (g) Inspection Fees.--
          (1) Establishment.--The Secretary of the Interior 
        shall collect from the operators of facilities subject 
        to inspection under subsection (c) non-refundable fees 
        for such inspections--
                  (A) at an aggregate level equal to the amount 
                necessary to offset the annual expenses of 
                inspections of outer Continental Shelf 
                facilities (including mobile offshore drilling 
                units) by the Secretary of the Interior; and
                  (B) using a schedule that reflects the 
                differences in complexity among the classes of 
                facilities to be inspected.
          (2) Ocean energy safety fund.--There is established 
        in the Treasury a fund, to be known as the ``Ocean 
        Energy Safety Fund'' (referred to in this subsection as 
        the ``Fund''), into which shall be deposited all 
        amounts collected as fees under paragraph (1) and which 
        shall be available as provided under paragraph (3).
          (3) Availability of fees.--
                  (A) In general.--Notwithstanding section 3302 
                of title 31, United States Code, all amounts 
                deposited in the Fund--
                          (i) shall be credited as offsetting 
                        collections;
                          (ii) shall be available for 
                        expenditure for purposes of carrying 
                        out inspections of outer Continental 
                        Shelf facilities (including mobile 
                        offshore drilling units) and the 
                        administration of the inspection 
                        program under this section;
                          (iii) shall be available only to the 
                        extent provided for in advance in an 
                        appropriations Act; and
                          (iv) shall remain available until 
                        expended.
                  (B) Use for field offices.--Not less than 75 
                percent of amounts in the Fund may be 
                appropriated for use only for the respective 
                Department of the Interior field offices where 
                the amounts were originally assessed as fees.
          (4) Initial fees.--Fees shall be established under 
        this subsection for the fiscal year in which this 
        subsection takes effect and the subsequent 10 years, 
        and shall not be raised, except as determined by the 
        Secretary to be appropriate as an adjustment equal to 
        the percentage by which the Consumer Price Index for 
        the month of June of the calendar year preceding the 
        adjustment exceeds the Consumer Price Index for the 
        month of June of the calendar year in which the fee was 
        determined or last adjusted.
          (5) Annual fees.--Annual fees shall be collected 
        under this subsection for facilities that are above the 
        waterline, excluding drilling rigs, and are in place at 
        the start of the fiscal year. Fees for fiscal year 2019 
        shall be--
                  (A) $10,500 for facilities with no wells, but 
                with processing equipment or gathering lines;
                  (B) $17,000 for facilities with 1 to 10 
                wells, with any combination of active or 
                inactive wells; and
                  (C) $31,500 for facilities with more than 10 
                wells, with any combination of active or 
                inactive wells.
          (6) Fees for drilling rigs.--Fees shall be collected 
        under this subsection for drilling rigs on a per 
        inspection basis. Fees for fiscal year 2019 shall be--
                  (A) $30,500 per inspection for rigs operating 
                in water depths of 1,000 feet or more; and
                  (B) $16,700 per inspection for rigs operating 
                in water depths of less than 1,000 feet.
          (7) Billing.--The Secretary shall bill designated 
        operators under paragraph (5) annually, with payment 
        required within 30 days of billing. The Secretary shall 
        bill designated operators under paragraph (6) within 30 
        days of the end of the month in which the inspection 
        occurred, with payment required within 30 days after 
        billing.
          (8) Annual reports.--
                  (A) In general.--Not later than 60 days after 
                the end of each fiscal year beginning with 
                fiscal year 2019 and ending with fiscal year 
                2029, the Secretary shall submit to the 
                Committee on Energy and Natural Resources of 
                the Senate and the Committee on Natural 
                Resources of the House of Representatives a 
                report on the operation of the Fund during the 
                fiscal year.
                  (B) Contents.--Each report shall include, for 
                the fiscal year covered by the report, the 
                following:
                          (i) A statement of the amounts 
                        deposited into the Fund.
                          (ii) A description of the 
                        expenditures made from the Fund for the 
                        fiscal year, including the purpose of 
                        the expenditures and the additional 
                        hiring of personnel.
                          (iii) A statement of the balance 
                        remaining in the Fund at the end of the 
                        fiscal year.
                          (iv) An accounting of pace of permit 
                        approvals.
                          (v) If fee increases are proposed, a 
                        proper accounting of the potential 
                        adverse economic impacts such fee 
                        increases will have on offshore 
                        economic activity and overall 
                        production.
                          (vi) Recommendations to increase the 
                        efficacy and efficiency of offshore 
                        inspections.
                          (vii) Any corrective actions levied 
                        upon offshore inspectors as a result of 
                        any form of misconduct.

           *       *       *       *       *       *       *


SEC. 33. WIND LEASE SALES FOR THE OUTER CONTINENTAL SHELF.

  (a) Authorization.--The Secretary may conduct wind lease 
sales for the outer Continental Shelf.
  (b) Wind Lease Sale Procedure.--Any wind lease sale conducted 
under this section shall be considered a lease under section 
8(p).
  (c) Wind Lease Sale Off Coast of California.--The Secretary, 
in consultation with the Secretary of Defense, shall offer a 
wind lease sale for the outer Continental Shelf off the coast 
of California as soon as practicable, but not later than one 
year after the date of enactment of this section.
  (d) Wind Lease Sales Off Coast of Puerto Rico, Virgin Islands 
of the United States, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.--
          (1) Study on feasibility of conducting wind lease 
        sales off coast of Puerto Rico, Virgin Islands of the 
        United States, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.--
                  (A) Study.--The Secretary shall conduct a 
                study on the feasibility, including the long 
                term economic feasibility, of conducting wind 
                lease sales for the outer Continental Shelf off 
                the coast of Puerto Rico, the Virgin Islands of 
                the United States, Guam, American Samoa, and 
                the Commonwealth of the Northern Mariana 
                Islands.
                  (B) Submission of results.--Not later than 
                180 days after the date of the enactment of 
                this section, the Secretary shall submit to 
                Congress the results of the study conducted 
                under subparagraph (A).
          (2) Wind lease sales conditional upon results of 
        study.--
                  (A) Wind lease sale off coast of puerto 
                rico.--If the study required under paragraph 
                (1)(A) concludes that a wind lease sale for the 
                outer Continental Shelf off the coast of Puerto 
                Rico is feasible, then the Secretary shall 
                offer a wind lease sale for the outer 
                Continental Shelf off the coast of Puerto Rico 
                as soon as practicable, but not later than one 
                year after the date of the enactment of this 
                section.
                  (B) Wind lease sale off coast of virgin 
                islands of the united states.--If the study 
                required under paragraph (1)(A) concludes that 
                a wind lease sale for the outer Continental 
                Shelf off the coast of the Virgin Islands of 
                the United States is feasible, then the 
                Secretary shall offer a wind lease sale for the 
                outer Continental Shelf off the coast of the 
                Virgin Islands of the United States as soon as 
                practicable, but not later than one year after 
                the date of the enactment of this section.
                  (C) Wind lease sale off coast of guam.--If 
                the study required under paragraph (1)(A) 
                concludes that a wind lease sale for the outer 
                Continental Shelf off the coast of Guam is 
                feasible, then the Secretary shall offer a wind 
                lease sale for the outer Continental Shelf off 
                the coast of Guam as soon as practicable, but 
                not later than one year after the date of the 
                enactment of this section.
                  (D) Wind lease sale off coast of american 
                samoa.--If the study required under paragraph 
                (1)(A) concludes that a wind lease sale for the 
                outer Continental Shelf off the coast of 
                American Samoa is feasible, then the Secretary 
                shall offer a wind lease sale for the outer 
                Continental Shelf off the coast of American 
                Samoa as soon as practicable, but not later 
                than one year after the date of the enactment 
                of this section.
                  (E) Wind lease sale off coast of the 
                commonwealth of the northern mariana islands.--
                If the study required under paragraph (1)(A) 
                concludes that a wind lease sale for the outer 
                Continental Shelf off the coast of the 
                Commonwealth of the Northern Mariana Islands is 
                feasible, then the Secretary shall offer a wind 
                lease sale for the outer Continental Shelf off 
                the coast of the Commonwealth of the Northern 
                Mariana Islands as soon as practicable, but not 
                later than one year after the date of the 
                enactment of this section.
  (e) Wind Lease Sale Off Coast of Hawaii.--
          (1) Study on feasibility of conducting wind lease 
        sales off coast of the state of hawaii.--
                  (A) Study.--The Secretary, in consultation 
                with the Secretary of Defense, shall conduct a 
                study on the feasibility of conducting wind 
                lease sales for the outer Continental Shelf off 
                the coast of the State of Hawaii.
                  (B) Submission of results.--Not later than 
                180 days after the date of the enactment of 
                this section, the Secretary shall submit to 
                Congress the results of the study conducted 
                under subparagraph (A).
          (2) Wind lease sales conditional upon results of 
        study.--If the study required under paragraph (1)(A) 
        concludes that a wind lease sale for the outer 
        Continental Shelf off the coast of the State of Hawaii 
        is feasible, then the Secretary shall offer a wind 
        lease sale for the outer Continental Shelf off the 
        coast of the State of Hawaii as soon as practicable, 
        but not later than one year after the date of the 
        enactment of this section.
                              ----------                              


               GULF OF MEXICO ENERGY SECURITY ACT OF 2006



           *       *       *       *       *       *       *
                      DIVISION C--OTHER PROVISIONS

TITLE I--GULF OF MEXICO ENERGY SECURITY

           *       *       *       *       *       *       *


SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES 
                    FROM 181 AREA, 181 SOUTH AREA, AND 2002-2007 
                    PLANNING AREAS OF GULF OF MEXICO.

  (a) In General.--Notwithstanding section 9 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1338) and subject to the 
other provisions of this section, for each applicable fiscal 
year, the Secretary of the Treasury shall deposit--
          (1) 50 percent of qualified outer Continental Shelf 
        revenues in the general fund of the Treasury; and
          (2) 50 percent of qualified outer Continental Shelf 
        revenues in a special account in the Treasury from 
        which the Secretary shall disburse--
                  (A) 75 percent to Gulf producing States in 
                accordance with subsection (b); and
                  (B) 25 percent to provide financial 
                assistance to States in accordance with section 
                200305 of title 54, United States Code, which 
                shall be considered income to the Land and 
                Water Conservation Fund for purposes of section 
                200302 of that title.
  (b) Allocation Among Gulf Producing States and Coastal 
Political Subdivisions.--
          (1) Allocation among gulf producing states for fiscal 
        years 2007 through 2016.--
                  (A) In general.--Subject to subparagraph (B), 
                effective for each of fiscal years 2007 through 
                2016, the amount made available under 
                subsection (a)(2)(A) shall be allocated to each 
                Gulf producing State in amounts (based on a 
                formula established by the Secretary by 
                regulation) that are inversely proportional to 
                the respective distances between the point on 
                the coastline of each Gulf producing State that 
                is closest to the geographic center of the 
                applicable leased tract and the geographic 
                center of the leased tract.
                  (B) Minimum allocation.--The amount allocated 
                to a Gulf producing State each fiscal year 
                under subparagraph (A) shall be at least 10 
                percent of the amounts available under 
                subsection (a)(2)(A).
          (2) Allocation among gulf producing states for fiscal 
        year 2017 and thereafter.--
                  (A) In general.--Subject to subparagraphs (B) 
                and (C), effective for fiscal year 2017 and 
                each fiscal year thereafter--
                          (i) the amount made available under 
                        subsection (a)(2)(A) from any lease 
                        entered into within the 181 Area or the 
                        181 South Area shall be allocated to 
                        each Gulf producing State in amounts 
                        (based on a formula established by the 
                        Secretary by regulation) that are 
                        inversely proportional to the 
                        respective distances between the point 
                        on the coastline of each Gulf producing 
                        State that is closest to the geographic 
                        center of the applicable leased tract 
                        and the geographic center of the leased 
                        tract; and
                          (ii) the amount made available under 
                        subsection (a)(2)(A) from any lease 
                        entered into within the 2002-2007 
                        planning area shall be allocated to 
                        each Gulf producing State in amounts 
                        that are inversely proportional to the 
                        respective distances between the point 
                        on the coastline of each Gulf producing 
                        State that is closest to the geographic 
                        center of each historical lease site 
                        and the geographic center of the 
                        historical lease site, as determined by 
                        the Secretary.
                  (B) Minimum allocation.--The amount allocated 
                to a Gulf producing State each fiscal year 
                under subparagraph (A) shall be at least 10 
                percent of the amounts available under 
                subsection (a)(2)(A).
                  (C) Historical lease sites.--
                          (i) In general.--Subject to clause 
                        (ii), for purposes of subparagraph 
                        (A)(ii), the historical lease sites in 
                        the 2002-2007 planning area shall 
                        include all leases entered into by the 
                        Secretary for an area in the Gulf of 
                        Mexico during the period beginning on 
                        October 1, 1982 (or an earlier date if 
                        practicable, as determined by the 
                        Secretary), and ending on December 31, 
                        2015.
                          (ii) Adjustment.--Effective January 
                        1, 2022, and every 5 years thereafter, 
                        the ending date described in clause (i) 
                        shall be extended for an additional 5 
                        calendar years.
          (3) Payments to coastal political subdivisions.--
                  (A) In general.--The Secretary shall pay 20 
                percent of the allocable share of each Gulf 
                producing State, as determined under paragraphs 
                (1) and (2), to the coastal political 
                subdivisions of the Gulf producing State.
                  (B) Allocation.--The amount paid by the 
                Secretary to coastal political subdivisions 
                shall be allocated to each coastal political 
                subdivision in accordance with subparagraphs 
                (B), (C), and (E) of section 31(b)(4) of the 
                Outer Continental Shelf Lands Act (43 U.S.C. 
                1356a(b)(4)).
  (c) Timing.--The amounts required to be deposited under 
paragraph (2) of subsection (a) for the applicable fiscal year 
shall be made available in accordance with that paragraph 
during the fiscal year immediately following the applicable 
fiscal year.
  (d) Authorized Uses.--
          (1) In general.--Subject to paragraph (2), each Gulf 
        producing State and coastal political subdivision shall 
        use all amounts received under subsection (b) in 
        accordance with all applicable Federal and State laws, 
        only for 1 or more of the following purposes:
                  (A) Projects and activities for the purposes 
                of coastal protection, including conservation, 
                coastal restoration, hurricane protection, and 
                infrastructure directly affected by coastal 
                wetland losses.
                  (B) Mitigation of damage to fish, wildlife, 
                or natural resources.
                  (C) Implementation of a federally-approved 
                marine, coastal, or comprehensive conservation 
                management plan.
                  (D) Mitigation of the impact of outer 
                Continental Shelf activities through the 
                funding of onshore infrastructure projects.
                  (E) Planning assistance and the 
                administrative costs of complying with this 
                section.
          (2) Limitation.--Not more than 3 percent of amounts 
        received by a Gulf producing State or coastal political 
        subdivision under subsection (b) may be used for the 
        purposes described in paragraph (1)(E).
  (e) Administration.--Amounts made available under subsection 
(a)(2) shall--
          (1) be made available, without further appropriation, 
        in accordance with this section;
          (2) remain available until expended; and
          (3) be in addition to any amounts appropriated 
        under--
                  (A) the Outer Continental Shelf Lands Act (43 
                U.S.C. 1331 et seq.);
                  (B) chapter 2003 of title 54, UnitedStates 
                Code; or
                  (C) any other provision of law.
  (f) Limitations on Amount of Distributed Qualified Outer 
Continental Shelf Revenues.--
          [(1) In general.--Subject to paragraph (2), the total 
        amount of qualified outer Continental Shelf revenues 
        made available under subsection (a)(2) shall not exceed 
        $500,000,000 for each of fiscal years 2016 through 
        2055.]
          (1) In general.--The total amount of qualified outer 
        Continental Shelf revenues described in section 
        102(9)(A)(ii) that are made available under subsection 
        (a)(2) shall remain available until expended and shall 
        not exceed--
                  (A) for each of fiscal years 2019 through 
                2028, $500,000,000; and
                  (B) for each of fiscal years 2029 through 
                2059, $649,800,000.
          (2) Expenditures.--For the purpose of paragraph (1), 
        for each of fiscal years 2016 through 2055, 
        expenditures under subsection (a)(2) shall be net of 
        receipts from that fiscal year from any area in the 181 
        Area in the Eastern Planning Area and the 181 South 
        Area.
          (3) Pro rata reductions.--If paragraph (1) limits the 
        amount of qualified outer Continental Shelf revenue 
        that would be paid under subparagraphs (A) and (B) of 
        subsection (a)(2)--
                  (A) the Secretary shall reduce the amount of 
                qualified outer Continental Shelf revenue 
                provided to each recipient on a pro rata basis; 
                and
                  (B) any remainder of the qualified outer 
                Continental Shelf revenues shall revert to the 
                general fund of the Treasury.
                              ----------                              


                      TITLE 54, UNITED STATES CODE



           *       *       *       *       *       *       *
SUBTITLE III--NATIONAL PRESERVATION PROGRAMS

           *       *       *       *       *       *       *


CHAPTER 3203--MONUMENTS, RUINS, SITES, AND OBJECTS OF ANTIQUITY

           *       *       *       *       *       *       *


Sec. 320301. National monuments

  (a) Presidential Declaration.--The President may, in the 
President's discretion, declare by public proclamation historic 
landmarks, historic and prehistoric structures, and other 
objects of historic or scientific interest that are situated on 
land owned or controlled by the Federal Government to be 
national monuments.
  (b) Reservation of Land.--The President may reserve parcels 
of land as a part of the national monuments. The limits of the 
parcels shall be confined to the smallest area compatible with 
the proper care and management of the objects to be protected.
  (c) Relinquishment to Federal Government.--When an object is 
situated on a parcel covered by a bona fide unperfected claim 
or held in private ownership, the parcel, or so much of the 
parcel as may be necessary for the proper care and management 
of the object, may be relinquished to the Federal Government 
and the Secretary may accept the relinquishment of the parcel 
on behalf of the Federal Government.
  (d) Limitation on Extension or Establishment of National 
Monuments in Wyoming.--No extension or establishment of 
national monuments in Wyoming may be undertaken except by 
express authorization of Congress.
  (e) Limitation on Marine National Monuments.--
          (1) In general.--Notwithstanding subsections (a) and 
        (b), the President may not declare or reserve any ocean 
        waters (as such term is defined in section 3 of the 
        Marine Protection, Research, and Sanctuaries Act of 
        1972 (33 U.S.C. 1402)) or lands beneath ocean waters as 
        a national monument.
          (2) Marine national monuments designated before the 
        date of the enactment of this subsection.--This 
        subsection shall not affect any national monument 
        designated by the President before the date of the 
        enactment of this Act.

           *       *       *       *       *       *       *

                              ----------                              


                  MARINE MAMMAL PROTECTION ACT OF 1972



           *       *       *       *       *       *       *
                              Definitions

  Sec. 3. For the purposes of this Act--
          (1) The term ``depletion'' or ``depleted'' means any 
        case in which--
                  (A) the Secretary, after consultation with 
                the Marine Mammal Commission and the Committee 
                of Scientific Advisors on Marine Mammals 
                established under title II of this Act, 
                determines that a species or population stock 
                is below its optimum sustainable population;
                  (B) a State, to which authority for the 
                conservation and management of a species or 
                population stock is transferred under section 
                109, determines that such species or stock is 
                below its optimum sustainable population; or
                  (C) a species or population stock is listed 
                as an endangered species or a threatened 
                species under the Endangered Species Act of 
                1973.
          (2) The terms ``conservation'' and ``management'' 
        mean the collection and application of biological 
        information for the purposes of increasing and 
        maintaining the number of animals within species and 
        populations of marine mammals at their optimum 
        sustainable population. Such terms include the entire 
        scope of activities that constitute a modern scientific 
        resource program, including, but not limited to, 
        research, census, law enforcement, and habitat 
        acquisition and improvement. Also included within these 
        terms, when and where appropriate, is the periodic or 
        total protection of species or populations as well as 
        regulated taking.
          (3) The term ``district court of the United States'' 
        includes the District Court of Guam, District Court of 
        the Virgin Islands, District Court of Puerto Rico, 
        District Court of the Canal Zone, and, in the case of 
        American Samoa and the Trust Territory of the Pacific 
        Islands, the District Court of the United States for 
        the District of Hawaii.
          (4) The term ``humane'' in the context of the taking 
        of a marine mammal means that method of taking which 
        involves the least possible degree of pain and 
        suffering practicable to the mammal involved.
          (5) The term ``intermediary nation'' means a nation 
        that exports yellowfin tuna or yellowfin tuna products 
        to the United States and that imports yellowfin tuna or 
        yellowfin tuna products that are subject to a direct 
        ban on importation into the United States pursuant to 
        section 101(a)(2)(B).
          (6) The term ``marine mammal'' means any mammal which 
        (A) is morphologically adapted to the marine 
        environment (including sea otters and members of the 
        orders Sirenia, Pinnipedia and Cetacea), or (B) 
        primarily inhabits the marine environment (such as the 
        polar bear); and, for the purposes of this Act, 
        includes any part of any such marine mammal, including 
        its raw, dressed, or dyed fur or skin.
          (7) The term ``marine mammal product'' means any item 
        of merchandise which consists, or is composed in whole 
        or in part, of any marine mammal.
          (8) The term ``moratorium'' means a complete 
        cessation of the taking of marine mammals and a 
        complete ban on the importation into the United States 
        of marine mammals and marine mammal products, except as 
        provided in this Act.
          (9) The term ``optimum sustainable population'' 
        means, with respect to any population stock, the number 
        of animals which will result in the maximum 
        productivity of the population or the species, keeping 
        in mind the carrying capacity of the habitat and the 
        health of the ecosystem of which they form a 
        constituent element.
          (10) The term ``person'' includes (A) any private 
        person or entity, and (B) any officer, employee, agent, 
        department, or instrumentality of the Federal 
        Government, of any State or political subdivision 
        thereof, or of any foreign government.
          (11) The term ``population stock'' or ``stock'' means 
        a group of marine mammals of the same species or 
        smaller taxa in a common spatial arrangement, that 
        interbreed when mature.
          (12)(A) Except as provided in [subparagraph (B)] 
        subparagraphs (B) and (C), the term ``Secretary'' 
        means--
                  (i) The Secretary of the department in which 
                the National Oceanic and Atmospheric 
                Administration is operating, as to all 
                responsibility, authority, funding, and duties 
                under this Act with respect to members of the 
                order Cetacea and members, other than walruses, 
                of the order Pinnipedia, and
                  (ii) The Secretary of the Interior as to all 
                responsibility, authority, funding, and duties 
                under this Act with respect to all other marine 
                mammals covered by this Act.
          (B) in section 118 and title IV (other than section 
        408) the term ``Secretary'' means the Secretary of 
        Commerce.
          (C) In sections 101(a)(3), 101(a)(5), 103, and 104 
        (16 U.S.C. 1371(a)(3), 1371(a)(5), 1373, and 1374), for 
        activities associated with operations authorized under 
        the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
        et seq.), the term ``Secretary'' means the Secretary of 
        the Interior with respect to all marine mammals.
          (13) The term ``take'' means to harass, hunt, 
        capture, or kill, or attempt to harass, hunt, capture, 
        or kill any marine mammal.
          (14) The term ``United States'' includes the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands of the United States, 
        American Samoa, Guam, and Northern Mariana Islands.
          (15) The term ``waters under the jurisdiction of the 
        United States'' means--
                  (A) the territorial sea of the United States;
                  (B) the waters included within a zone, 
                contiguous to the territorial sea of the United 
                States, of which the inner boundary is a line 
                coterminous with the seaward boundary of each 
                coastal State, and the other boundary is a line 
                drawn in such a manner that each point on it is 
                200 nautical miles from the baseline from which 
                the territorial sea is measured; and
                  (C) the areas referred to as eastern special 
                areas in Article 3(1) of the Agreement between 
                the United States of America and the Union of 
                Soviet Socialist Republics on the Maritime 
                Boundary, signed June 1, 1990; in particular, 
                those areas east of the maritime boundary, as 
                defined in that Agreement, that lie within 200 
                nautical miles of the baselines from which the 
                breadth of the territorial sea of Russia is 
                measured but beyond 200 nautical miles of the 
                baselines from which the breadth of the 
                territorial sea of the United States is 
                measured, except that this subparagraph shall 
                not apply before the date on which the 
                Agreement between the United States and the 
                Union of Soviet Socialist Republics on the 
                Maritime Boundary, signed June 1, 1990, enters 
                into force for the United States.
          (16) The term ``fishery'' means--
                  (A) one or more stocks of fish which can be 
                treated as a unit for purposes of conservation 
                and management and which are identified on the 
                basis of geographical, scientific, technical, 
                recreational, and economic characteristics; and
                  (B) any fishing for such stocks.
          (17) The term ``competent regional organization''--
                  (A) for the tuna fishery in the eastern 
                tropical Pacific Ocean, means the Inter-
                American Tropical Tuna Commission; and
                  (B) in any other case, means an organization 
                consisting of those nations participating in a 
                tuna fishery, the purpose of which is the 
                conservation and management of that fishery and 
                the management of issues relating to that 
                fishery.
          (18)(A) The term ``harassment'' means any act of 
        pursuit, torment, or annoyance which--
                  (i) has the potential to injure a marine 
                mammal or marine mammal stock in the wild; or
                  (ii) has the potential to disturb a marine 
                mammal or marine mammal stock in the wild by 
                causing disruption of behavioral patterns, 
                including, but not limited to, migration, 
                breathing, nursing, breeding, feeding, or 
                sheltering.
          (B) In the case of a military readiness activity (as 
        defined in section 315(f) of Public Law 107-314; 16 
        U.S.C. 703 note) or a scientific research activity 
        conducted by or on behalf of the Federal Government 
        consistent with section 104(c)(3), the term 
        ``harassment'' means--
                  (i) any act that injures or has the 
                significant potential to injure a marine mammal 
                or marine mammal stock in the wild; or
                  (ii) any act that disturbs or is likely to 
                disturb a marine mammal or marine mammal stock 
                in the wild by causing disruption of natural 
                behavioral patterns, including, but not limited 
                to, migration, surfacing, nursing, breeding, 
                feeding, or sheltering, to a point where such 
                behavioral patterns are abandoned or 
                significantly altered.
          (C) The term ``Level A harassment'' means harassment 
        described in subparagraph (A)(i) or, in the case of a 
        military readiness activity or scientific research 
        activity described in subparagraph (B), harassment 
        described in subparagraph (B)(i).
          (D) The term ``Level B harassment'' means harassment 
        described in subparagraph (A)(ii) or, in the case of a 
        military readiness activity or scientific research 
        activity described in subparagraph (B), harassment 
        described in subparagraph (B)(ii).
          (19) The term ``strategic stock'' means a marine 
        mammal stock--
                  (A) for which the level of direct human-
                caused mortality exceeds the potential 
                biological removal level;
                  (B) which, based on the best available 
                scientific information, is declining and is 
                likely to be listed as a threatened species 
                under the Endangered Species Act of 1973 within 
                the foreseeable future; or
                  (C) which is listed as a threatened species 
                or endangered species under the Endangered 
                Species Act of 1973 (16 U.S.C. 1531 et seq.), 
                or is designated as depleted under this Act.
          (20) The term ``potential biological removal level'' 
        means the maximum number of animals, not including 
        natural mortalities, that may be removed from a marine 
        mammal stock while allowing that stock to reach or 
        maintain its optimum sustainable population. The 
        potential biological removal level is the product of 
        the following factors:
                  (A) The minimum population estimate of the 
                stock.
                  (B) One-half the maximum theoretical or 
                estimated net productivity rate of the stock at 
                a small population size.
                  (C) A recovery factor of between 0.1 and 1.0.
          (21) The term ``Regional Fishery Management Council'' 
        means a Regional Fishery Management Council established 
        under section 302 of the Magnuson Fishery Conservation 
        and Management Act.
          (22) The term ``bona fide research'' means scientific 
        research on marine mammals, the results of which--
                  (A) likely would be accepted for publication 
                in a referred scientific journal;
                  (B) are likely to contribute to the basic 
                knowledge of marine mammal biology or ecology; 
                or
                  (C) are likely to identify, evaluate, or 
                resolve conservation problems.
          (23) The term ``Alaska Native organization'' means a 
        group designated by law or formally chartered which 
        represents or consists of Indians, Aleuts, or Eskimos 
        residing in Alaska.
          (24) The term ``take reduction plan'' means a plan 
        developed under section 118.
          (25) The term ``take reduction team'' means a team 
        established under section 118.
          (26) The term ``net productivity rate'' means the 
        annual per capita rate of increase in a stock resulting 
        from additions due to reproduction, less losses due to 
        mortality.
          (27) The term ``minimum population estimate'' means 
        an estimate of the number of animals in a stock that--
                  (A) is based on the best available scientific 
                information on abundance, incorporating the 
                precision and variability associated with such 
                information; and
                  (B) provides reasonable assurance that the 
                stock size is equal to or greater than the 
                estimate.
          (28) The term ``International Dolphin Conservation 
        Program'' means the international program established 
        by the agreement signed in LaJolla, California, in 
        June, 1992, as formalized, modified, and enhanced in 
        accordance with the Declaration of Panama.
          (29) The term ``Declaration of Panama'' means the 
        declaration signed in Panama City, Republic of Panama, 
        on October 4, 1995.

           *       *       *       *       *       *       *


         TITLE I--CONSERVATION AND PROTECTION OF MARINE MAMMALS

                       Moratorium and Exceptions

  Sec. 101. (a) There shall be a moratorium on the taking and 
importation of marine mammals and marine mammal products, 
commencing on the effective date of this Act, during which time 
no permit may be issued for the taking of any marine mammal and 
no marine mammal or marine mammal product may be imported into 
the United States except in the following cases:
          (1) Consistent with the provisions of section 104, 
        permits may be issued by the Secretary for taking, and 
        importation for purposes of scientific research, public 
        display, photography for educational or commercial 
        purposes, or enhancing the survival or recovery of a 
        species or stock, or for importation of polar bear 
        parts (other than internal organs) taken in sport hunts 
        in Canada. Such permits, except permits issued under 
        section 104(c)(5), may be issued if the taking or 
        importation proposed to be made is first reviewed by 
        the Marine Mammal Commission and the Committee of 
        Scientific Advisors on Marine Mammals established under 
        title II. The Commission and Committee shall recommend 
        any proposed taking or importation, other than 
        importation under section 104(c)(5), which is 
        consistent with the purposes and policies of section 2 
        of this Act. If the Secretary issues such a permit for 
        importation, the Secretary shall issue to the importer 
        concerned a certificate to that effect in such form as 
        the Secretary of the Treasury prescribes, and such 
        importation may be made upon presentation of the 
        certificate to the customs officer concerned.
          (2) Marine mammals may be taken incidentally in the 
        course of commercial fishing operations and permits may 
        be issued therefor under section 104 subject to 
        regulations prescribed by the Secretary in accordance 
        with section 103, or in lieu of such permits, 
        authorizations may be granted therefor under section 
        118, subject to regulations prescribed under that 
        section by the Secretary without regard to section 103. 
        Such authorizations may be granted under title III with 
        respect to purse seine fishing for yellowfin tuna in 
        the eastern tropical Pacific Ocean, subject to 
        regulations prescribed under that title by the 
        Secretary without regard to section 103. In any event 
        it shall be the immediate goal that the incidental kill 
        or incidental serious injury of marine mammals 
        permitted in the course of commercial fishing 
        operations be reduced to insignificant levels 
        approaching a zero mortality and serious injury rate. 
        The Secretary of the Treasury shall ban the importation 
        of commercial fish or products from fish which have 
        been caught with commercial fishing technology which 
        results in the incidental kill or incidental serious 
        injury of ocean mammals in excess of United States 
        standards. For purposes of applying the preceding 
        sentence, the Secretary--
                  (A) shall insist on reasonable proof from the 
                government of any nation from which fish or 
                fish products will be exported to the United 
                States of the effects on ocean mammals of the 
                commercial fishing technology in use for such 
                fish or fish products exported from such nation 
                to the United States;
                  (B) in the case of yellowfin tuna harvested 
                with purse seine nets in the eastern tropical 
                Pacific Ocean, and products therefrom, to be 
                exported to the United States, shall require 
                that the government of the exporting nation 
                provide documentary evidence that--
                          (i)(I) the tuna or products therefrom 
                        were not banned from importation under 
                        this paragraph before the effective 
                        date of section 4 of the International 
                        Dolphin Conservation Program Act; or
                          (II) the tuna or products therefrom 
                        were harvested after the effective date 
                        of section 4 of the International 
                        Dolphin Conservation Program Act by 
                        vessels of a nation which participates 
                        in the International Dolphin 
                        Conservation Program, and such 
                        harvesting nation is either a member of 
                        the Inter-American Tropical Tuna 
                        Commission or has initiated (and within 
                        6 months thereafter completed) all 
                        steps required of applicant nations, in 
                        accordance with article V, paragraph 3 
                        of the Convention establishing the 
                        Inter-American Tropical Tuna 
                        Commission, to become a member of that 
                        organization;
                          (ii) such nation is meeting the 
                        obligations of the International 
                        Dolphin Conservation Program and the 
                        obligations of membership in the Inter-
                        American Tropical Tuna Commission, 
                        including all financial obligations; 
                        and
                          (iii) the total dolphin mortality 
                        limits, and per-stock per-year dolphin 
                        mortality limits permitted for that 
                        nation's vessels under the 
                        International Dolphin Conservation 
                        Program do not exceed the limits 
                        determined for 1997, or for any year 
                        thereafter, consistent with the 
                        objective of progressively reducing 
                        dolphin mortality to a level 
                        approaching zero through the setting of 
                        annual limits and the goal of 
                        eliminating dolphin mortality, and 
                        requirements of the International 
                        Dolphin Conservation Program;
                  (C) shall not accept such documentary 
                evidence if--
                          (i) the government of the harvesting 
                        nation does not provide directly or 
                        authorize the Inter-American Tropical 
                        Tuna Commission to release complete and 
                        accurate information to the Secretary 
                        in a timely manner--
                                  (I) to allow determination of 
                                compliance with the 
                                International Dolphin 
                                Conservation Program; and
                                  (II) for the purposes of 
                                tracking and verifying 
                                compliance with the minimum 
                                requirements established by the 
                                Secretary in regulations 
                                promulgated under subsection 
                                (f) of the Dolphin Protection 
                                Consumer Information Act (16 
                                U.S.C. 1385(f)); or
                          (ii) after taking into consideration 
                        such information, findings of the 
                        Inter-American Tropical Tuna 
                        Commission, and any other relevant 
                        information, including information that 
                        a nation is consistently failing to 
                        take enforcement actions on violations 
                        which diminish the effectiveness of the 
                        International Dolphin Conservation 
                        Program, the Secretary, in consultation 
                        with the Secretary of State, finds that 
                        the harvesting nation is not in 
                        compliance with the International 
                        Dolphin Conservation Program.
                  (D) shall require the government of any 
                intermediary nation to certify and provide 
                reasonable proof to the Secretary that it has 
                not imported, within the preceding six months, 
                any yellowfin tuna or yellowfin tuna products 
                that are subject to a direct ban on importation 
                to the United States under subparagraph (B);
                  (E) shall, six months after importation of 
                yellowfin tuna or tuna products has been banned 
                under this section, certify such fact to the 
                President, which certification shall be deemed 
                to be a certification for the purposes of 
                section 8(a) of the Fishermen's Protective Act 
                of 1967 (22 U.S.C. 1978(a)) for as long as such 
                ban is in effect; and
                  (F)(i) except as provided in clause (ii), in 
                the case of fish or products containing fish 
                harvested by a nation whose fishing vessels 
                engage in high seas driftnet fishing, shall 
                require that the government of the exporting 
                nation provide documentary evidence that the 
                fish or fish product was not harvested with a 
                large-scale driftnet in the South Pacific Ocean 
                after July 1, 1991, or in any other water of 
                the high seas after January 1, 1993, and
                  (ii) in the case of tuna or a product 
                containing tuna harvested by a nation whose 
                fishing vessels engage in high seas driftnet 
                fishing, shall require that the government of 
                the exporting nation provide documentary 
                evidence that the tuna or tuna product was not 
                harvested with a large-scale driftnet anywhere 
                on the high seas after July 1, 1991.
        For purposes of subparagraph (F), the term ``driftnet'' 
        has the meaning given such term in section 4003 of the 
        Driftnet Impact Monitoring, Assessment, and Control Act 
        of 1987 (16 U.S.C. 1822 note), except that, until 
        January 1, 1994, the term ``driftnet'' does not include 
        the use in the northeast Atlantic Ocean of gillnets 
        with a total length not to exceed five kilometers if 
        the use is in accordance with regulations adopted by 
        the European Community pursuant to the October 28, 
        1991, decision by the Council of Fisheries Ministers of 
        the Community.
          (3)(A) The Secretary, on the basis of the best 
        scientific evidence available and in consultation with 
        the Marine Mammal Commission, is authorized and 
        directed, from time to time, having due regard to the 
        distribution, abundance, breeding habits, and times and 
        lines of migratory movements of such marine mammals, to 
        determine when, to what extent, if at all, and by what 
        means, it is compatible with this Act to waive the 
        requirements of this section so as to allow taking, or 
        importing of any marine mammal, or any marine mammal 
        product, and to adopt suitable regulations, issue 
        permits, and make determinations in accordance with 
        sections 102, 103, 104, and 111 of this title 
        permitting and governing such taking and importing, in 
        accordance with such determinations: Provided, however, 
        That the Secretary, in making such determinations, must 
        be assured that the taking of such marine mammal is in 
        accord with sound principles of resource protection and 
        conservation as provided in the purposes and policies 
        of this Act: Provided further, however, That no marine 
        mammal or no marine mammal product may be imported into 
        the United States unless the Secretary certifies that 
        the program for taking marine mammals in the country of 
        origin is consistent with the provisions and policies 
        of this Act. Products of nations not so certified may 
        not be imported into the United States for any purpose, 
        including processing for exportation.
          (B) Except for scientific research purposes, 
        photography for educational or commercial purposes, or 
        enhancing the survival or recovery of a species or 
        stock as provided for in paragraph (1) of this 
        subsection, or as provided for under paragraph (5) of 
        this subsection, during the moratorium no permit may be 
        issued for the taking of any marine mammal which has 
        been designated by the Secretary as depleted, and no 
        importation may be made of any such mammal.
          (4)(A) Except as provided in subparagraphs (B) and 
        (C), the provisions of this Act shall not apply to the 
        use of measures--
                  (i) by the owner of fishing gear or catch, or 
                an employee or agent of such owner, to deter a 
                marine mammal from damaging the gear or catch;
                  (ii) by the owner of other private property, 
                or an agent, bailee, or employee of such owner, 
                to deter a marine mammal from damaging private 
                property;
                  (iii) by any person, to deter a marine mammal 
                from endangering personal safety; or
                  (iv) by a government employee, to deter a 
                marine mammal from damaging public property,
        so long as such measures do not result in the death or 
        serious injury of a marine mammal.
          (B) The Secretary shall, through consultation with 
        appropriate experts, and after notice and opportunity 
        for public comment, publish in the Federal Register a 
        list of guidelines for use in safely deterring marine 
        mammals. In the case of marine mammals listed as 
        endangered species or threatened species under the 
        Endangered Species Act of 1973, the Secretary shall 
        recommend specific measures which may be used to 
        nonlethally deter marine mammals. Actions to deter 
        marine mammals consistent with such guidelines or 
        specific measures shall not be a violation of this Act.
          (C) If the Secretary determines, using the best 
        scientific information available, that certain forms of 
        deterrence have a significant adverse effect on marine 
        mammals, the Secretary may prohibit such deterrent 
        methods, after notice and opportunity for public 
        comment, through regulation under this Act.
          (D) The authority to deter marine mammals pursuant to 
        subparagraph (A) applies to all marine mammals, 
        including all stocks designated as depleted under this 
        Act.
          (5)(A)(i) Upon request therefor by citizens of the 
        United States who engage in a specified activity (other 
        than commercial fishing) within a specified 
        geographical region, the Secretary shall allow, during 
        periods of not more than five consecutive years each, 
        the incidental, but not intentional, taking by citizens 
        while engaging in that activity within that region of 
        small numbers of marine mammals of a species or 
        population stock if the Secretary, after notice (in the 
        Federal Register and in newspapers of general 
        circulation, and through appropriate electronic media, 
        in the coastal areas that may be affected by such 
        activity) and opportunity for public comment--
                  (I) finds that the total of such taking 
                during each five-year (or less) period 
                concerned will have a negligible impact on such 
                species or stock and will not have an 
                unmitigable adverse impact on the availability 
                of such species or stock for taking for 
                subsistence uses pursuant to subsection (b) or 
                section 109(f) or, in the case of a cooperative 
                agreement under both this Act and the Whaling 
                Convention Act of 1949, pursuant to section 
                112(c); and
                  (II) prescribes regulations setting forth
                          (aa) permissible methods of taking 
                        pursuant to such activity, and other 
                        means of effecting the least 
                        practicable adverse impact on such 
                        species or stock and its habitat, 
                        paying particular attention to 
                        rookeries, mating grounds, and areas of 
                        similar significance, and on the 
                        availability of such species or stock 
                        for subsistence uses; and
                          (bb) requirements pertaining to the 
                        monitoring and reporting of such 
                        taking.
          (ii) For a military readiness activity (as defined in 
        section 315(f) of Public Law 107-314; 16 U.S.C. 703 
        note), a determination of ``least practicable adverse 
        impact on such species or stock'' under clause 
        (i)(II)(aa) shall include consideration of personnel 
        safety, practicality of implementation, and impact on 
        the effectiveness of the military readiness activity. 
        Before making the required determination, the Secretary 
        shall consult with the Department of Defense regarding 
        personnel safety, practicality of implementation, and 
        impact on the effectiveness of the military readiness 
        activity.
          (iii) Notwithstanding clause (i), for any 
        authorization affecting a military readiness activity 
        (as defined in section 315(f) of Public Law 107-314; 16 
        U.S.C. 703 note), the Secretary shall publish the 
        notice required by such clause only in the Federal 
        Register.
          (B) The Secretary shall withdraw, or suspend for a 
        time certain (either on an individual or class basis, 
        as appropriate) the permission to take marine mammals 
        under subparagraph (A) pursuant to a specified activity 
        within a specified geographical region if the Secretary 
        finds, after notice and opportunity for public comment 
        (as required under subparagraph (A) unless subparagraph 
        (C)(i) applies), that--
                  (i) the regulations prescribed under 
                subparagraph (A) regarding methods of taking, 
                monitoring, or reporting are not being 
                substantially complied with by a person 
                engaging in such activity; or
                  (ii) the taking allowed under subparagraph 
                (A) pursuant to one or more activities within 
                one or more regions is having, or may have, 
                more than a negligible impact on the species or 
                stock concerned.
          (C)(i) The requirement for notice and opportunity for 
        public comment in subparagraph (B) shall not apply in 
        the case of a suspension of permission to take if the 
        Secretary determines that an emergency exists which 
        poses a significant risk to the well-being of the 
        species or stock concerned.
          (ii) Sections 103 and 104 shall not apply to the 
        taking of marine mammals under the authority of this 
        paragraph.
          (D)(i) Upon request therefor by [citizens of the 
        United States] persons who engage in a specified 
        activity (other than commercial fishing) [within a 
        specific geographic region], the Secretary shall 
        authorize, for periods of not more than 1 year, subject 
        to such conditions as the Secretary may specify, the 
        incidental, but not intentional, taking by harassment 
        [of small numbers] of marine mammals of a species or 
        population stock by [such citizens] such persons while 
        engaging in that activity [within that region] if the 
        Secretary finds that such harassment during each period 
        concerned--
                  (I) will have a negligible impact on such 
                species or stock, and
                  (II) will not have an unmitigable adverse 
                impact on the availability of such species or 
                stock for taking for subsistence uses pursuant 
                to subsection (b), or section 109(f) or 
                pursuant to a cooperative agreement under 
                section 119.
          (ii) The authorization for such activity shall 
        prescribe, where applicable--
                  (I) permissible methods of taking by 
                harassment pursuant to such activity[, and 
                other means of effecting the least practicable 
                impact on such species or stock and its 
                habitat], paying particular attention to 
                rookeries, mating grounds, and areas of similar 
                significance, and on the availability of such 
                species or stock for taking for subsistence 
                uses pursuant to subsection (b) or section 
                109(f) or pursuant to a cooperative agreement 
                under section 119,
                  (II) the measures that the Secretary 
                determines are necessary to ensure no 
                unmitigable adverse impact on the availability 
                of the species or stock for taking for 
                subsistence uses pursuant to subsection (b) or 
                section 109(f) or pursuant to a cooperative 
                agreement under section 119, and
                  (III) [requirements pertaining to the 
                monitoring and reporting of such taking by 
                harassment, including] efficient and practical 
                requirements pertaining to the monitoring of 
                such taking by harassment while the activity is 
                being conducted and the reporting of such 
                taking, including, as the Secretary determines 
                necessary, requirements for the independent 
                peer review of proposed monitoring plans or 
                other research proposals where the proposed 
                activity may affect the availability of a 
                species or stock for taking for subsistence 
                uses pursuant to subsection (b) or section 
                109(f) or pursuant to a cooperative agreement 
                under section 119.
        Any condition imposed pursuant to subclause (I), (II), 
        or (III) may not result in more than a minor change to 
        the specified activity and may not alter the basic 
        design, location, scope, duration, or timing of the 
        specified activity.
          (iii) The Secretary shall publish a proposed 
        authorization not later than 45 days after [receiving 
        an application under this subparagraph] an application 
        is accepted or required to be considered complete under 
        subclause (I)(aa), (II)(aa), or (IV) of clause (viii), 
        as applicable, and request public comment through 
        notice in the Federal Register, newspapers of general 
        circulation, and appropriate electronic media and to 
        all locally affected communities for a period of 30 
        days after publication. Not later than 45 days after 
        the close of the public comment period, if the 
        Secretary makes the findings set forth in clause (i), 
        the Secretary shall issue an authorization with 
        appropriate conditions to meet the requirements of 
        clause (ii).
          (iv) The Secretary shall modify, suspend, or revoke 
        an authorization if the Secretary finds that the 
        provisions of clauses (i) or (ii) are not being met.
          (v) A person conducting an activity for which an 
        authorization has been granted under this subparagraph 
        shall not be subject to the penalties of this Act for 
        taking by harassment that occurs in compliance with 
        such authorization.
          (vi) For a military readiness activity (as defined in 
        section 315(f) of Public Law 107-314; 16 U.S.C. 703 
        note), [a determination of ``least practicable adverse 
        impact on such species or stock'' under clause (i)(I)] 
        conditions imposed under subclause (I), (II), or (III) 
        of clause (ii) shall include consideration of personnel 
        safety, practicality of implementation, and impact on 
        the effectiveness of the military readiness activity. 
        Before making the required determination, the Secretary 
        shall consult with the Department of Defense regarding 
        personnel safety, practicality of implementation, and 
        impact on the effectiveness of the military readiness 
        activity.
          (vii) Notwithstanding clause (iii), for any 
        authorization affecting a military readiness activity 
        (as defined in section 315(f) of Public Law 107-314; 16 
        U.S.C. 703 note), the Secretary shall publish the 
        notice required by such clause only in the Federal 
        Register.
          (viii)(I) The Secretary shall--
                  (aa) accept as complete a written request for 
                authorization under this subparagraph for 
                incidental taking described in clause (i), by 
                not later than 45 days after the date of 
                submission of the request; or
                  (bb) provide to the requester, by not later 
                than 15 days after the date of submission of 
                the request, a written notice describing any 
                additional information required to complete the 
                request.
          (II) If the Secretary provides notice under subclause 
        (I)(bb), the Secretary shall, by not later than 30 days 
        after the date of submission of the additional 
        information described in the notice--
                  (aa) accept the written request for 
                authorization under this subparagraph for 
                incidental taking described in clause (i); or
                  (bb) deny the request and provide the 
                requester a written explanation of the reasons 
                for the denial.
          (III) The Secretary may not under this subparagraph 
        make a second request for information, request that the 
        requester withdraw and resubmit the request, or 
        otherwise delay a decision on the request.
          (IV) If the Secretary fails to respond to a request 
        for authorization under this subparagraph in the manner 
        provided in subclause (I) or (II), the request shall be 
        considered to be complete.
          (ix)(I) At least 90 days before the date of the 
        expiration of any authorization issued under this 
        subparagraph, the holder of such authorization may 
        apply for a one-year extension of such authorization. 
        The Secretary shall grant such extension within 14 days 
        after the date of such request on the same terms and 
        without further review if there has been no substantial 
        change in the activity carried out under such 
        authorization nor in the status of the marine mammal 
        species or stock, as applicable, as reported in the 
        final annual stock assessment reports for such species 
        or stock.
          (II) In subclause (I) the term ``substantial change'' 
        means a change that prevents the Secretary from making 
        the required findings to issue an authorization under 
        clause (i) with respect to such species or stock.
          (III) The Secretary shall notify the applicant of 
        such substantial changes with specificity and in 
        writing within 14 days after the applicant's submittal 
        of the extension request.
          (x) If the Secretary fails to make the required 
        findings and, as appropriate, issue the authorization 
        within 120 days after the application is accepted or 
        required to be considered complete under subclause 
        (I)(aa), (II)(aa), or (III) of clause (viii), as 
        applicable, the authorization is deemed to have been 
        issued on the terms stated in the application and 
        without further process or restrictions under this Act.
          (xi) Any taking of a marine mammal in compliance with 
        an authorization under this subparagraph is exempt from 
        the prohibition on taking in section 9 of the 
        Endangered Species Act of 1973 (16 U.S.C. 1538). Any 
        Federal agency authorizing, funding, or carrying out an 
        action that results in such taking, and any agency 
        action authorizing such taking, is exempt from the 
        requirement to consult regarding potential impacts to 
        marine mammal species or designated critical habitat 
        under section 7(a)(2) of such Act (16 U.S.C. 
        1536(a)(2)).
          (E)(i) During any period of up to 3 consecutive 
        years, the Secretary shall allow the incidental, but 
        not the intentional, taking by persons using vessels of 
        the United States or vessels which have valid fishing 
        permits issued by the Secretary in accordance with 
        section 204(b) of the Magnuson Fishery Conservation and 
        Management Act (16 U.S.C. 1824(b)), while engaging in 
        commercial fishing operations, of marine mammals from a 
        species or stock designated as depleted because of its 
        listing as an endangered species or threatened species 
        under the Endangered Species Act of 1973 (16 U.S.C. 
        1531 et seq.) if the Secretary, after notice and 
        opportunity for public comment, determines that--
                  (I) the incidental mortality and serious 
                injury from commercial fisheries will have a 
                negligible impact on such species or stock;
                  (II) a recovery plan has been developed or is 
                being developed for such species or stock 
                pursuant to the Endangered Species Act of 1973; 
                and
                  (III) where required under section 118, a 
                monitoring program is established under 
                subsection (d) of such section, vessels engaged 
                in such fisheries are registered in accordance 
                with such section, and a take reduction plan 
                has been developed or is being developed for 
                such species or stock.
          (ii) Upon a determination by the Secretary that the 
        requirements of clause (i) have been met, the Secretary 
        shall publish in the Federal Register a list of those 
        fisheries for which such determination was made, and, 
        for vessels required to register under section 118, 
        shall issue an appropriate permit for each 
        authorization granted under such section to vessels to 
        which this paragraph applies. Vessels engaged in a 
        fishery included in the notice published by the 
        Secretary under this clause which are not required to 
        register under section 118 shall not be subject to the 
        penalties of this Act for the incidental taking of 
        marine mammals to which this paragraph applies, so long 
        as the owner or master of such vessel reports any 
        incidental mortality or injury of such marine mammals 
        to the Secretary in accordance with section 118.
          (iii) If, during the course of the commercial fishing 
        season, the Secretary determines that the level of 
        incidental mortality or serious injury from commercial 
        fisheries for which a determination was made under 
        clause (i) has resulted or is likely to result in an 
        impact that is more than negligible on the endangered 
        or threatened species or stock, the Secretary shall use 
        the emergency authority granted under section 118 to 
        protect such species or stock, and may modify any 
        permit granted under this paragraph as necessary.
          (iv) The Secretary may suspend for a time certain or 
        revoke a permit granted under this subparagraph only if 
        the Secretary determines that the conditions or 
        limitations set forth in such permit are not being 
        complied with. The Secretary may amend or modify, after 
        notice and opportunity for public comment, the list of 
        fisheries published under clause (ii) whenever the 
        Secretary determines there has been a significant 
        change in the information or conditions used to 
        determine such list.
          (v) Sections 103 and 104 shall not apply to the 
        taking of marine mammals under the authority of this 
        subparagraph.
          (vi) This subparagraph shall not govern the 
        incidental taking of California sea otters and shall 
        not be deemed to amend or repeal the Act of November 7, 
        1986 (Public Law 99-625; 100 Stat. 3500).
          (F) Notwithstanding the provisions of this 
        subsection, any authorization affecting a military 
        readiness activity (as defined in section 315(f) of 
        Public Law 107-314; 16 U.S.C. 703 note) shall not be 
        subject to the following requirements:
                  (i) In subparagraph (A), ``within a specified 
                geographical region'' and ``within that region 
                of small numbers''.
                  (ii) In subparagraph (B), ``within a 
                specified geographical region'' and ``within 
                one or more regions''.
                  (iii) In subparagraph (D), ``within a 
                specific geographic region'', ``of small 
                numbers'', and ``within that region''.
          (6)(A) A marine mammal product may be imported into 
        the United States if the product--
                  (i) was legally possessed and exported by any 
                citizen of the United States in conjunction 
                with travel outside the United States, provided 
                that the product is imported into the United 
                States by the same person upon the termination 
                of travel;
                  (ii) was acquired outside of the United 
                States as part of a cultural exchange by an 
                Indian, Aleut, or Eskimo residing in Alaska; or
                  (iii) is owned by a Native inhabitant of 
                Russia, Canada, or Greenland and is imported 
                for noncommercial purposes in conjunction with 
                travel within the United States or as part of a 
                cultural exchange with an Indian, Aleut, or 
                Eskimo residing in Alaska.
          (B) For the purposes of this paragraph, the term--
                  (i) ``Native inhabitant of Russia, Canada, or 
                Greenland'' means a person residing in Russia, 
                Canada, or Greenland who is related by blood, 
                is a member of the same clan or ethnological 
                grouping, or shares a common heritage with an 
                Indian, Aleut, or Eskimo residing in Alaska; 
                and
                  (ii) ``cultural exchange'' means the sharing 
                or exchange of ideas, information, gifts, 
                clothing, or handicrafts between an Indian, 
                Aleut, or Eskimo residing in Alaska and a 
                Native inhabitant of Russia, Canada, or 
                Greenland, including rendering of raw marine 
                mammal parts as part of such exchange into 
                clothing or handicrafts through carving, 
                painting, sewing, or decorating.
  (b) Except as provided in section 109, the provisions of this 
Act shall not apply with respect to the taking of any marine 
mammal by any Indian, Aleut, or Eskimo who resides in Alaska 
and who dwells on the coast of the North Pacific Ocean or the 
Arctic Ocean if such taking--
          (1) is for subsistence purposes; or
          (2) is done for purposes of creating and selling 
        authentic native articles of handicrafts and clothing: 
        Provided, That only authentic native articles of 
        handicrafts and clothing may be sold in interstate 
        commerce: And provided further, That any edible portion 
        of marine mammals may be sold in native villages and 
        towns in Alaska or for native consumption. For the 
        purposes of this subsection, the term ``authentic 
        native articles of handicrafts and clothing'' means 
        items composed wholly or in some significant respect of 
        natural materials, and which are produced, decorated, 
        or fashioned in the exercise of traditional native 
        handicrafts without the use of panto-graphs, multiple 
        carvers, or other mass copying devices. Traditional 
        native handicrafts include, but are not limited to 
        weaving, carving, stitching, sewing, lacing, beading, 
        drawing, and painting; and
          (3) in each case, is not accomplished in a wasteful 
        manner.
Notwithstanding the preceding provisions of this subsection, 
when, under this Act, the Secretary determines any species or 
stock of marine mammal subject to taking by Indians, Aleuts, or 
Eskimos to be depleted, he may prescribe regulations upon 
thetaking of such marine mammals by any Indian, Aleut, or 
Eskimo described in this subsection. Such regulations may be 
established with reference to species or stocks, geographical 
description of the area included, the season for taking, or any 
other factors related to the reason for establishing such 
regulations and consistent with the purposes of this Act. Such 
regulations shall be prescribed after notice and hearing 
required by section 103 of this title and shall be removed as 
soon as the Secretary determines that the need for their 
imposition has disappeared. In promulgating any regulation or 
making any assessment pursuant to a hearing or proceeding under 
this subsection or section 117(b)(2), or in making any 
determination of depletion under this subsection or finding 
regarding unmitigable adverse impacts under subsection (a)(5) 
that affects stocks or persons to which this subsection 
applies, the Secretary shall be responsible for demonstrating 
that such regulation, assessment, determination, or finding is 
supported by substantial evidence on the basis of the record as 
a whole. The preceding sentence shall only be applicable in an 
action brought by one or more Alaska Native organizations 
representing persons to which this subsection applies.
  (c) It shall not be a violation of this Act to take a marine 
mammal if such taking is imminently necessary in self-defense 
or to save the life of a person in immediate danger, and such 
taking is reported to the Secretary within 48 hours. The 
Secretary may seize and dispose of any carcass.
  (d) Good Samaritan Exemption.--It shall not be a violation of 
this Act to take a marine mammal if--
          (1) such taking is imminently necessary to avoid 
        serious injury, additional injury, or death to a marine 
        mammal entangled in fishing gear or debris;
          (2) reasonable care is taken to ensure the safe 
        release of the marine mammal, taking into consideration 
        the equipment, expertise, and conditions at hand;
          (3) reasonable care is exercised to prevent any 
        further injury to the marine mammal; and
          (4) such taking is reported to the Secretary within 
        48 hours.
  (e) Act Not to Apply to Incidental Takings by United States 
Citizens Employed on Foreign Vessels Outside the United States 
EEZ.--The provisions of this Act shall not apply to a citizen 
of the United States who incidentally takes any marine mammal 
during fishing operations outside the United States exclusive 
economic zone (as defined in section 3 of the Magnuson-Stevens 
Fishery Conservation and Management Act (16 U.S.C. 1802)) when 
employed on a foreign fishing vessel of a harvesting nation 
which is in compliance with the International Dolphin 
Conservation Program.
  (f) Exemption of Actions Necessary for National Defense.--(1) 
The Secretary of Defense, after conferring with the Secretary 
of Commerce, the Secretary of the Interior, or both, as 
appropriate, may exempt any action or category of actions 
undertaken by the Department of Defense or its components from 
compliance with any requirement of this Act, if the Secretary 
determines that it is necessary for national defense.
  (2) An exemption granted under this subsection--
          (A) subject to subparagraph (B), shall be effective 
        for a period specified by the Secretary of Defense; and
          (B) shall not be effective for more than 2 years.
  (3)(A) The Secretary of Defense may issue additional 
exemptions under this subsection for the same action or 
category of actions, after--
          (i) conferring with the Secretary of Commerce, the 
        Secretary of the Interior, or both as appropriate; and
          (ii) making a new determination that the additional 
        exemption is necessary for national defense.
  (B) Each additional exemption under this paragraph shall be 
effective for a period specified by the Secretary of Defense, 
of not more than 2 years.
  (4) Not later than 30 days after issuing an exemption under 
paragraph (1) or an additional exemption under paragraph (3), 
the Secretary of Defense shall submit to the Committee on Armed 
Services of the House of Representatives and the Committee on 
Armed Services of the Senate notice describing the exemption 
and the reasons therefor. The notice may be provided in 
classified form if the Secretary of Defense determines that use 
of the classified form is necessary for reasons of national 
security.

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                              ----------                              


                          MINERAL LEASING ACT



           *       *       *       *       *       *       *
  Sec. 17. (a) All lands subject to disposition under this Act 
which are known or believed to contain oil or gas deposits may 
be leased by the Secretary.
  (b)(1)(A) All lands to be leased which are not subject to 
leasing under paragraphs (2) and (3) of this subsection shall 
be leased as provided in this paragraph to the highest 
responsible qualified bidder by competitive bidding under 
general regulations in units of not more than 2,560 acres, 
except in Alaska, where units shall be not more than 5,760 
acres. Such units shall be as nearly compact as possible. Lease 
sales shall be conducted by oral bidding, except as provided in 
subparagraph (C). Lease sales shall be held for each State 
where eligible lands are available at least quarterly and more 
frequently if the Secretary of the Interior determines such 
sales are necessary. A lease shall be conditioned upon the 
payment of a royalty at a rate of not less than 12.5 percent in 
amount or value of the production removed or sold from the 
lease. The Secretary shall accept the highest bid from a 
responsible qualified bidder which is equal to or greater than 
the national minimum acceptable bid, without evaluation of the 
value of the lands proposed for lease. Leases shall be issued 
within 60 days following payment by the successful bidder of 
the remainder of the bonus bid, if any, and the annual rental 
for the first lease year. The Secretary shall resolve any 
protest to a lease sale within 60 days following such payment. 
All bids for less than the national minimum acceptable bid 
shall be rejected. Lands for which no bids are received or for 
which the highest bid is less than the national minimum 
acceptable bid shall be offered promptly within 30 days for 
leasing under subsection (c) of this section and shall remain 
available for leasing for a period of 2 years after the 
competitive lease sale.
  (B) The national minimum acceptable bid shall be $2 per acre 
for a period of 2 years from the date of enactment of the 
Federal Onshore Oil and Gas Leasing Reform Act of 1987. 
Thereafter, the Secretary, subject to paragraph (2)(B), may 
establish by regulation a higher national minimum acceptable 
bid for all leases based upon a finding that such action is 
necessary: (i) to enhance financial returns to the United 
States; and (ii) to promote more efficient management of oil 
and gas resources on Federal lands. Ninety days before the 
Secretary makes any change in the national minimum acceptable 
bid, the Secretary shall notify the Committee on Natural 
Resources of the United States House of Representatives and the 
Committee on Energy and Natural Resources of the United States 
Senate. The proposal or promulgation of any regulation to 
establish a national minimum acceptable bid shall not be 
considered a major Federal action subject to the requirements 
of section 102(2)(C) of the National Environmental Policy Act 
of 1969.
  (C) In order to diversify and expand the Nation's onshore 
leasing program to ensure the best return to the Federal 
taxpayer, reduce fraud, and secure the leasing process, the 
Secretary may conduct onshore lease sales through Internet-
based bidding methods. Each individual Internet-based lease 
sale shall conclude within 7 days.
  (2)(A)(i) If the lands to be leased are within a special tar 
sand area, they shall be leased to the highest responsible 
qualified bidder by competitive bidding under general 
regulations in units of not more than 5,760 acres, which shall 
be as nearly compact as possible, upon the payment by the 
lessee of such bonus as may be accepted by the Secretary.
  (ii) Royalty shall be 12\1/2\ per centum in amount of value 
of production removed or sold from the lease subject to section 
17(k)(1)(c).
  (iii) The Secretary may lease such additional lands in 
special tar sand areas as may be required in support of any 
operations necessary for the recovery of tar sands.
          (iv) No lease issued under this paragraph shall be 
        included in any chargeability limitation associated 
        with oil and gas leases.
  (B) For any area that contains any combination of tar sand 
and oil or gas (or both), the Secretary may issue under this 
Act, separately--
          (i) a lease for exploration for and extraction of tar 
        sand; and
          (ii) a lease for exploration for and development of 
        oil and gas.
  (C) A lease issued for tar sand shall be issued using the 
same bidding process, annual rental, and posting period as a 
lease issued for oil and gas, except that the minimum 
acceptable bid required for a lease issued for tar sand shall 
be $2 per acre.
  (D) The Secretary may waive, suspend, or alter any 
requirement under section 26 that a permittee under a permit 
authorizing prospecting for tar sand must exercise due 
diligence, to promote any resource covered by a combined 
hydrocarbon lease.
  (3)(A) If the United States held a vested future interest in 
a mineral estate that, immediately prior to becoming a vested 
present interest, was subject to a lease under which oil or gas 
was being produced, or had a well capable of producing, in 
paying quantities at an annual average production volume per 
well per day of either not more than 15 barrels per day of oil 
or condensate, or not more than 60,000 cubic feet of gas, the 
holder of the lease may elect to continue the lease as a 
noncompetitive lease under subsection (c)(1).
  (B) An election under this paragraph is effective--
          (i) in the case of an interest which vested after 
        January 1, 1990, and on or before the date of enactment 
        of this paragraph, if the election is made before the 
        date that is 1 year after the date of enactment of this 
        paragraph;
          (ii) in the case of an interest which vests within 1 
        year after the date of enactment of this paragraph, if 
        the election is made before the date that is 2 years 
        after the date of enactment of this paragraph; and
          (iii) in any case other than those described in 
        clause (i) or (ii), if the election is made prior to 
        the interest becoming a vested present interest.
  (C) Notwithstanding the consent requirement referenced in 
section 3 of the Mineral Leasing Act for Acquired Lands (30 
U.S.C. 352), the Secretary shall issue a noncompetitive lease 
under subsection (c)(1) to a holder who makes an election under 
subparagraph (A) and who is qualified to hold a lease under 
this Act. Such lease shall be subject to all terms and 
conditions under this Act that are applicable to leases issued 
under subsection (c)(1).
  (D) A lease issued pursuant to this paragraph shall continue 
so long as oil or gas continues to be produced in paying 
quantities.
  (E) This paragraph shall apply only to those lands under the 
administration of the Secretary of Agriculture where the United 
States acquired an interest in such lands pursuant to the Act 
of March 1, 1911 (36 Stat. 961 and following).
  (c)(1) If the lands to be leased are not leased under 
subsection (b)(1) of this section or are not subject to 
competitive leasing under subsection (b)(2) of this section, 
the person first making application for the lease who is 
qualified to hold a lease under this Act shall be entitled to a 
lease of such lands without competitive bidding, upon payment 
of a non-refundable application fee of at least $75. A lease 
under this subsection shall be conditioned upon the payment of 
a royalty at a rate of 12.5 percent in amount or value of the 
production removed or sold from the lease. Leases shall be 
issued within 60 days of the date on which the Secretary 
identifies the first responsible qualified applicant.
  (2)(A) Lands (i) which were posted for sale under subsection 
(b)(1) of this section but for which no bids were received or 
for which the highest bid was less than the national minimum 
acceptable bid and (ii) for which, at the end of the period 
referred to in subsection (b)(1) of this section no lease has 
been issued and no lease application is pending under paragraph 
(1) of this subsection, shall again be available for leasing 
only in accordance with subsection (b)(1) of this section.
  (B) The land in any lease which is issued under paragraph (1) 
of this subsection or under subsection (b)(1) of this section 
which lease terminates, expires, is cancelled or is 
relinquished shall again be available for leasing only in 
accordance with subsection (b)(1) of this section.
  (d) All leases issued under this section, as amended by the 
Federal Onshore Oil and Gas Leasing Reform Act of 1987, shall 
be conditioned upon payment by the lessee of a rental of not 
less than $1.50 per acre per year for the first through fifth 
years of the lease and not less than $2 per acre per year for 
each year thereafter. A minimum royalty in lieu of rental of 
not less than the rental which otherwise would be required for 
that lease year shall be payable at the expiration of each 
lease year beginning on or after a discovery of oil or gas in 
paying quantities on the lands leased.
  (e) Competitive and noncompetitive leases issued under this 
section shall be for a primary term of 10 years: Provided, 
however, That competitive leases issued in special tar sand 
areas shall also be for a primary term of ten years. Each such 
lease shall continue so long after its primary term as oil or 
gas is produced in paying quantities. Any lease issued under 
this section for land on which, or for which under an approved 
cooperative or unit plan of development or operation, actual 
drilling operations were commenced prior to the end of its 
primary term and are being diligently prosecuted at that time 
shall be extended for two years and so long thereafter as oil 
or gas is produced in paying quantities.
  (f) At least 45 days before offering lands for lease under 
this section, and at least 30 days before approving 
applications for permits to drill under the provisions of a 
lease or substantially modifying the terms of any lease issued 
under this section, the Secretary shall provide notice of the 
proposed action. Such notice shall be posted in the appropriate 
local office of the leasing and land management agencies. Such 
notice shall include the terms or modified lease terms and maps 
or a narrative description of the affected lands. Where the 
inclusion of maps in such notice is not practicable, maps of 
the affected lands shall be made available to the public for 
review. Such maps shall show the location of all tracts to be 
leased, and of all leases already issued in the general area. 
The requirements of this subsection are in addition to any 
public notice required by other law.
  (g) The Secretary of the Interior, or for National Forest 
lands, the Secretary of Agriculture, shall regulate all 
surface-disturbing activities conducted pursuant to any lease 
issued under this Act, and shall determine reclamation and 
other actions as required in the interest of conservation of 
surface resources. No permit to drill on an oil and gas lease 
issued under this Act may be granted without the analysis and 
approval by the Secretary concerned of a plan of operations 
covering proposed surface-disturbing activities within the 
lease area. The Secretary concerned shall, by rule or 
regulation, establish such standards as may be necessary to 
ensure that an adequate bond, surety, or other financial 
arrangement will be established prior to the commencement of 
surface-disturbing activities on any lease, to ensure the 
complete and timely reclamation of the lease tract, and the 
restoration of any lands or surface waters adversely affected 
by lease operations after the abandonment or cessation of oil 
and gas operations on the lease. The Secretary shall not issue 
a lease or leases or approve the assignment of any lease or 
leases under the terms of this section to any person, 
association, corporation, or any subsidiary, affiliate, or 
person controlled by or under common control with such person, 
association, or corporation, during any period in which, as 
determined by the Secretary of the Interior or Secretary of 
Agriculture, such entity has failed or refused to comply in any 
material respect with the reclamation requirements and other 
standards established under this section for any prior lease to 
which such requirements and standards applied. Prior to making 
such determination with respect to any such entity the 
concerned Secretary shall provide such entity with adequate 
notification and an opportunity to comply with such reclamation 
requirements and other standards and shall consider whether any 
administrative or judicial appeal is pending. Once the entity 
has complied with the reclamation requirement or other standard 
concerned an oil or gas lease may be issued to such entity 
under this Act.
  (h) The Secretary of the Interior may not issue any lease on 
National Forest System Lands reserved from the public domain 
over the objection of the Secretary of Agriculture.
  (i) No lease issued under this section which is subject to 
termination because of cessation of production shall be 
terminated for this cause so long as reworking or drilling 
operations which were commenced on the land prior to or within 
sixty days after cessation of production are conducted thereon 
with reasonable diligence, or so long as oil or gas is produced 
in paying quantities as a result of such operations. No lease 
issued under this section shall expire because operations or 
production is suspended under any order, or with the consent, 
of the Secretary. No lease issued under this section covering 
lands on which there is a well capable of producing oil or gas 
in paying quantities shall expire because the lessee fails to 
produce the same unless the lessee is allowed a reasonable 
time, which shall be not less than sixty days after notice by 
registered or certified mail, within which to place such well 
in producing status or unless, after such status is 
established, production is discontinued on the leased premises 
without permission granted by the Secretary under the 
provisions of this Act.
  (j) Whenever it appears to the Secretary that lands owned by 
the United States are being drained of oil or gas by wells 
drilled on adjacent lands, he may negotiate agreements whereby 
the United States, or the United States and its lessees, shall 
be compensated for such drainage. Such agreements shall be made 
with the consent of the lessees, if any, affected thereby. If 
such agreement is entered into, the primary term of any lease 
for which compensatory royalty is being paid, or any extension 
of such primary term, shall be extended for the period during 
which such compensatory royalty is paid and for a period of one 
year from discontinuance of such payment and so long thereafter 
as oil or gas is produced in paying quantities.
  (k) If, during the primary term or any extended term of any 
lease issued under this section, a verified statement is filed 
by any mining claimant pursuant to subsection (c) of section 7 
of the Multiple Mineral Development Act of August 13, 1954 (68 
Stat. 708), as amended (30 U.S.C. 527), whether such filing 
occur prior to enactment of the Mineral Leasing Act Revision of 
1960 or thereafter, asserting the existence of a conflicting 
unpatented mining claim or claims upon which diligent work is 
being prosecuted as to any lands covered by the lease, the 
running of time under such lease shall be suspended as to the 
lands involved from the first day of the month following the 
filing of such verified statement until a final decision is 
rendered in the matter.
  (l) The Secretary of the Interior shall, upon timely 
application therefor, issue a new lease in exchange for any 
lease issued for a term of twenty years, or any renewal 
thereof, or any lease issued prior to August 8, 1946, in 
exchange for a twenty-year lease, such new lease to be for a 
primary term of five years and so long thereafter as oil or gas 
is produced in paying quantities and at a royalty rate of not 
less than 12\1/2\ per centum in amount of value of the 
production removed or sold from such leases, except that the 
royalty rate shall be 12\1/2\ per centum in amount or value of 
the production removed or sold from said leases as to (1) such 
leases, or such parts of the lands subject thereto and the 
deposits underlying the same, as are not believed to be within 
the productive limits of any producing oil or gas deposit, as 
such productive limits are found by the Secretary to have 
existed on August 8, 1946; and (2) any production on a lease 
from an oil or gas deposit which was discovered after May 27, 
1941, by a well or wells drilled within the boundaries of the 
lease, and which is determined by the Secretary to be a new 
deposit; and (3) any production on or allocated to a lease 
pursuant to an approved cooperative or unit plan of development 
or operation from an oil or gas deposit which was discovered 
after May 27, 1941, on land committed to such plan, and which 
is determined by the Secretary to be a new deposit, where such 
lease, or a lease for which it is exchanged, was included in 
such plan at the time of discovery or was included in a duly 
executed and filed application for the approval of such plan at 
the time of discovery.
  (m) For the purpose of more properly conserving the natural 
resources of any oil or gas pool, field, or like area, or any 
part thereof (whether or not any part of said oil or gas pool, 
field, or like area, is then subject to any cooperative or unit 
plan of development or operation), lessees thereof and their 
representatives may unite with each other, or jointly or 
separately with others, in collective adopting and operating 
under a cooperative or unit plan of development or operation of 
such pool, field, or like area, or any part thereof, whenever 
determined and certified by the Secretary of the Interior to be 
necessary or advisable in the public interest. The Secretary is 
thereunto authorized, in his discretion, with the consent of 
the holders of leases involved, to establish, alter, change, or 
revoke drilling, producing, rental, minimum royalty, and 
royalty requirements of such leases and to make such 
regulations with reference to such leases, with like consent on 
the part of the lessees, in connection with the institution and 
operation of any such cooperative or unit plan as he may deem 
necessary or proper to secure the proper protection of the 
public interest. The Secretary may provide that oil and gas 
leases hereafter issued under this Act shall contain a 
provision requiring the lessee to operate under such a 
reasonable cooperative or unit plan, and he may prescribe such 
a plan under which such lessee shall operate, which shall 
adequately protect the rights of all parties in interest, 
including the United States.
  Any plan authorized by the preceding paragraph which includes 
lands owned by the United States may, in the discretion of the 
Secretary, contain a provision whereby authority is vested in 
the Secretary of the Interior, or any such person, committee, 
or State or Federal officer or agency as may be designated in 
the plan, to alter or modify from time to time the rate of 
prospecting and development and the quantity and rate of 
production under such plan. All leases operated under any such 
plan approved or prescribed by the Secretary shall be excepted 
in determining holdings or control under the provisions of any 
section of this Act.
  When separate tracts cannot be independently developed and 
operated in conformity with an established well-spacing or 
development program, any lease, or a portion thereof, may be 
pooled with other lands, whether or not owned by the United 
States, under a communitization or drilling agreement providing 
for an apportionment of production or royalties among the 
separate tracts of land comprising the drilling or spacing unit 
when determined by the Secretary of the Interior to be in the 
public interest, and operations or production pursuant to such 
an agreement shall be deemed to be operations or production as 
to each such lease committed thereto.
  Any lease issued for a term of twenty years, or any renewal 
thereof, or any portion of such lease that has become the 
subject of a cooperative or unit plan of development or 
operation of a pool, field, or like area, which plan has the 
approval of the Secretary of the Interior, shall continue in 
force until the termination of such plan. Any other lease 
issued under any section of this Act which has heretofore or 
may hereafter be committed to any such plan that contains a 
general provision for allocation of oil or gas shall continue 
in force and effect as to the land committed so long as the 
lease remains subject to the plan: Provided, That production is 
had in paying quantities under the plan prior to the expiration 
date of the term of such lease. Any lease heretofore or 
hereafter committed to any such plan embracing lands that are 
in part within and in part outside of the area covered by any 
such plan shall be segregated into separate leases as to the 
lands committed and the lands not committed as of the effective 
date of unitization: Provided, however, That any such lease as 
to the nonunitized portion shall continue in force and effect 
for the term thereof but for not less than two years from the 
date of such segregation and so long thereafter as oil or gas 
is produced in paying quantities. The minimum royalty or 
discovery rental under any lease that has become subject to any 
cooperative or unit plan of development or operation, or other 
plan that contains a general provision for allocation of oil or 
gas, shall be payable only with respect to the lands subject to 
such lease to which oil or gas shall be allocated under such 
plan. Any lease which shall be eliminated from any such 
approved or prescribed plan, or from any communitization or 
drilling agreement authorized by this section, and any lease 
which shall be in effect at the termination of any such 
approved or prescribed plan, or at the termination of any such 
communitization or drilling agreement, unless relinquished, 
shall continue in effect for the original term thereof, but for 
not less than two years, and so long thereafter as oil or gas 
is produced in paying quantities.
  The Secretary of the Interior is hereby authorized, on such 
conditions as he may prescribe, to approve operating, drilling, 
or development contracts made by one or more lessees of oil or 
gas leases, with one or more persons, associations, or 
corporations whenever, in his discretion, the conservation of 
natural products or the public convenience or necessity may 
require it or the interests of the United States may be best 
subserved thereby. All leases operated under such approved 
operating, drilling, or development contracts, and interests 
thereunder, shall be excepted in determining holdings or 
control under the provisions of this Act.
  The Secretary of the Interior, to avoid waste or to promote 
conservation of natural resources, may authorize the subsurface 
storage of oil or gas, whether or not produced from federally 
owned lands, in lands leased or subject to lease under this 
Act. Such authorization may provide for the payment of a 
storage fee or rental on such stored oil or gas or, in lieu of 
such fee or rental, for a royalty other than that prescribed in 
the lease when such stored oil or gas is produced in 
conjunction with oil or gas not previously produced. Any lease 
on which storage is so authorized shall be extended at least 
for the period of storage and so long thereafter as oil or gas 
not previously produced is produced in paying quantities.
  (n)(1)(A) The owner of (1) an oil and gas lease issued prior 
to the date of enactment of the Combined Hydrocarbon Leasing 
Act of 1981 or (2) a valid claim to any hydrocarbon resources 
leasable under this section based on a mineral location made 
prior to January 21, 1926, and located within a special tar 
sand area shall be entitled to convert such lease or claim to a 
combined hydrocarbon lease for a primary term of ten years upon 
the filing of an application within two years from the date of 
enactment of that Act containing an acceptable plan of 
operations which assures reasonable protection of the 
environment and diligent development of those resources 
requiring enhanced recovery methods of development or mining. 
For purposes of conversion, no claim shall be deemed invalid 
solely because it was located as a placer location rather than 
a lode location or vice versa, notwithstanding any previous 
adjudication on that issue.
  (B) The Secretary shall issue final regulations to implement 
this section within six months of the effective date of this 
Act. If any oil and gas lease eligible for conversion under 
this section would otherwise expire after the date of this Act 
and before six months following the issuance of implementing 
regulations, the lessee may preserve his conversion right under 
such lease for a period ending six months after the issuance of 
implementing regulations by filing with the Secretary, before 
the expiration of the lease, a notice of intent to file an 
application for conversion. Upon submission of a complete plan 
of operations in substantial compliance with the regulations 
promulgated by the Secretary for the filing of such plans, the 
Secretary shall suspend the running of the term of any oil and 
gas lease proposed for conversion until the plan is finally 
approved or disapproved. The Secretary shall act upon a 
proposed plan of operations within fifteen months of its 
submittal.
  (C) When an existing oil and gas lease is converted to a 
combined hydrocarbon lease, the royalty shall be that provided 
for in the original oil and gas lease and for a converted 
mining claim, 12\1/2\ per centum in amount or value of 
production removed or sold from the lease.
  (2) Except as provided in this section, nothing in the 
Combined Hydrocarbon Leasing Act of 1981 shall be construed to 
diminish or increase the rights of any lessee under any oil and 
gas lease issued prior to the enactment of such Act.
  (o) Certain Outstanding Oil and Gas.--(1) Prior to the 
commencement of surface-disturbing activities relating to the 
development of oil and gas deposits on lands described under 
paragraph (5), the Secretary of Agriculture shall require, 
pursuant to regulations promulgated by the Secretary, that such 
activities be subject to terms and conditions as provided under 
paragraph (2).
  (2) The terms and conditions referred to in paragraph (1) 
shall require that reasonable advance notice be furnished to 
the Secretary of Agriculture at least 60 days prior to the 
commencement of surface disturbing activities.
  (3) Advance notice under paragraph (2) shall include each of 
the following items of information:
          (A) A designated field representative.
          (B) A map showing the location and dimensions of all 
        improvements, including but not limited to, well sites 
        and road and pipeline accesses.
          (C) A plan of operations, of an interim character if 
        necessary, setting forth a schedule for construction 
        and drilling.
          (D) A plan of erosion and sedimentation control.
          (E) Proof of ownership of mineral title.
Nothing in this subsection shall be construed to affect any 
authority of the State in which the lands concerned are located 
to impose any requirements with respect to such oil and gas 
operations.
  (4) The person proposing to develop oil and gas deposits on 
lands described under paragraph (5) shall either--
          (A) permit the Secretary to market merchantable 
        timber owned by the United States on lands subject to 
        such activities; or
          (B) arrange to purchase merchantable timber on lands 
        subject to such surface disturbing activities from the 
        Secretary of Agriculture, or otherwise arrange for the 
        disposition of such merchantable timber, upon such 
        terms and upon such advance notice of the items 
        referred to in subparagraphs (A) through (E) of 
        paragraph (3) as the Secretary may accept.
  (5)(A) The lands referred to in this subsection are those 
lands referenced in subparagraph (B) which are under the 
administration of the Secretary of Agriculture where the United 
States acquired an interest in such lands pursuant to the Act 
of March 1, 1911 (36 Stat. 961 and following), but does not 
have an interest in oil and gas deposits that may be present 
under such lands. This subsection does not apply to any such 
lands where, under the provisions of its acquisition of an 
interest in the lands, the United States is to acquire any oil 
and gas deposits that may be present under such lands in the 
future but such interest has not yet vested with the United 
States.
  (B) This subsection shall only apply in the Allegheny 
National Forest.
  (p) Deadlines for Consideration of Applications for 
Permits.--
          (1) In general.--Not later than 10 days after the 
        date on which the Secretary receives an application for 
        any permit to drill, the Secretary shall--
                  (A) notify the applicant that the application 
                is complete; or
                  (B) notify the applicant that information is 
                missing and specify any information that is 
                required to be submitted for the application to 
                be complete.
          (2) Issuance or deferral.--Not later than 30 days 
        after the applicant for a permit has submitted a 
        complete application, the Secretary shall--
                  (A) issue the permit, if the requirements 
                under the National Environmental Policy Act of 
                1969 and other applicable law have been 
                completed within such timeframe; or
                  (B) defer the decision on the permit and 
                provide to the applicant a notice--
                          (i) that specifies any steps that the 
                        applicant could take for the permit to 
                        be issued; and
                          (ii) a list of actions that need to 
                        be taken by the agency to complete 
                        compliance with applicable law together 
                        with timelines and deadlines for 
                        completing such actions.
          (3) Requirements for deferred applications.--
                  (A) In general.--If the Secretary provides 
                notice under paragraph (2)(B), the applicant 
                shall have a period of 2 years from the date of 
                receipt of the notice in which to complete all 
                requirements specified by the Secretary, 
                including providing information needed for 
                compliance with the National Environmental 
                Policy Act of 1969.
                  (B) Issuance of decision on permit.--If the 
                applicant completes the requirements within the 
                period specified in subparagraph (A), the 
                Secretary shall issue a decision on the permit 
                not later than 10 days after the date of 
                completion of the requirements described in 
                subparagraph (A), unless compliance with the 
                National Environmental Policy Act of 1969 and 
                other applicable law has not been completed 
                within such timeframe.
                  (C) Denial of permit.--If the applicant does 
                not complete the requirements within the period 
                specified in subparagraph (A) or if the 
                applicant does not comply with applicable law, 
                the Secretary shall deny the permit.

           *       *       *       *       *       *       *

  Sec. 35. (a) All money received from sales, bonuses, 
royalties including interest charges collected under the 
Federal Oil and Gas Royalty Management Act of 1982, and rentals 
of the public lands under the provisions of this Act and the 
Geothermal Steam Act of 1970, [shall be paid into the Treasury] 
shall, except as provided in subsection (e), be paid into the 
Treasury of the United States; 50 per centum thereof shall be 
paid by the Secretary of the Treasury to the State other than 
Alaska within the boundaries of which the leased lands or 
deposits are or were located; said moneys paid to any of such 
States on or after January 1, 1976, to be used by such State 
and its subdivisions, as the legislature of the State may 
direct giving priority to those subdivisions of the State 
socially or economically impacted by development of minerals 
leased under this Act, for (i) planning, (ii) construction and 
maintenance of public facilities, and (iii) provision of public 
service; and excepting those from Alaska, 40 per centum thereof 
shall be paid into, reserved, appropriated, as part of the 
reclamation fund created by the Act of Congress known as the 
Reclamation Act, approved June 17, 1902, and of those from 
Alaska as soon as practicable after March 31 and September 30 
of each year, 90 per centum thereof shall be paid to the State 
of Alaska for disposition by the legislature thereof: Provided, 
That all moneys which may accrue to the United States under the 
provisions of this Act and the Geothermal Steam Act of 1970 
from lands within the naval petroleum reserves shall be 
deposited in the Treasury as ``miscellaneous receipts'', as 
provided by the Act of June 4, 1920 (41 Stat. 813), as amended 
June 30, 1938 (52 Stat. 1252). All moneys received under the 
provisions of this Act and the Geothermal Steam Act of 1970 not 
otherwise disposed of by this section shall be credited to 
miscellaneous receipts. Payments to States under this section 
with respect to any moneys received by the United States, shall 
be made not later than the last business day of the month in 
which such moneys are warranted by the United States Treasury 
to the Secretary as having been received, except for any 
portion of such moneys which is under challenge and placed in a 
suspense account pending resolution of a dispute. Such warrants 
shall be issued by the United States Treasury not later than 10 
days after receipt of such moneys by the Treasury. Moneys 
placed in a suspense account which are determined to be payable 
to a State shall be made not later than the last business day 
of the month in which such dispute is resolved. Any such amount 
placed in a suspense account pending resolution shall bear 
interest until the dispute is resolved.
  (b) Deduction for Administrative Costs.--[In determining] 
Except with respect to States for which the Secretary has 
delegated any authority under section 44(a)(1), in determining 
the amount of payments to the States under this section, 
beginning in fiscal year 2014 and for each year thereafter, the 
amount of such payments shall be reduced by 2 percent for any 
administrative or other costs incurred by the United States in 
carrying out the program authorized by this Act, and the amount 
of such reduction shall be deposited to miscellaneous receipts 
of the Treasury.
  (c)(1) Notwithstanding the first sentence of subsection (a) 
and except as provided in subsection (e), any rentals received 
from leases in any State (other than the State of Alaska) on or 
after the date of enactment of this subsection shall be 
deposited in the Treasury, to be allocated in accordance with 
paragraph (2).
  (2) Of the amounts deposited in the Treasury under paragraph 
(1)--
          (A) 50 percent shall be paid by the Secretary of the 
        Treasury to the State within the boundaries of which 
        the leased land is located or the deposits were 
        derived; and
          (B) 50 percent shall be deposited in a special fund 
        in the Treasury, to be known as the ``BLM Permit 
        Processing Improvement Fund'' (referred to in this 
        subsection as the ``Fund'').
          (3) Use of fund.--
                  (A) In general.--The Fund shall be available 
                to the Secretary of the Interior for 
                expenditure, without further appropriation and 
                without fiscal year limitation, for the 
                coordination and processing of oil and gas use 
                authorizations on onshore Federal and Indian 
                trust mineral estate land.
                  (B) Accounts.--The Secretary shall divide the 
                Fund into--
                          (i) a Rental Account (referred to in 
                        this subsection as the ``Rental 
                        Account'') comprised of rental receipts 
                        collected under this section; and
                          (ii) a Fee Account (referred to in 
                        this subsection as the ``Fee Account'') 
                        comprised of fees collected under 
                        subsection (d).
          (4) Rental account.--
                  (A) In general.--The Secretary shall use the 
                Rental Account for--
                          (i) the coordination and processing 
                        of oil and gas use authorizations on 
                        onshore Federal and Indian trust 
                        mineral estate land under the 
                        jurisdiction of the Project offices 
                        identified under section 365(d) of the 
                        Energy Policy Act of 2005 (42 U.S.C. 
                        15924(d)); and
                          (ii) training programs for 
                        development of expertise related to 
                        coordinating and processing oil and gas 
                        use authorizations.
                  (B) Allocation.--In determining the 
                allocation of the Rental Account among Project 
                offices for a fiscal year, the Secretary shall 
                consider--
                          (i) the number of applications for 
                        permit to drill received in a Project 
                        office during the previous fiscal year;
                          (ii) the backlog of applications 
                        described in clause (i) in a Project 
                        office;
                          (iii) publicly available industry 
                        forecasts for development of oil and 
                        gas resources under the jurisdiction of 
                        a Project office; and
                          (iv) any opportunities for 
                        partnership with local industry 
                        organizations and educational 
                        institutions in developing training 
                        programs to facilitate the coordination 
                        and processing of oil and gas use 
                        authorizations.
          (5) Fee account.--
                  (A) In general.--The Secretary shall use the 
                Fee Account for the coordination and processing 
                of oil and gas use authorizations on onshore 
                Federal and Indian trust mineral estate land.
                  (B) Allocation.--The Secretary shall transfer 
                not less than 75 percent of the revenues 
                collected by an office for the processing of 
                applications for permits to the State office of 
                the State in which the fees were collected.
  (d), BLM Oil and Gas Permit Processing Fee.--
          (1) In general.--Notwithstanding any other provision 
        of law, for each of fiscal years 2016 through 2026, the 
        Secretary, acting through the Director of the Bureau of 
        Land Management, shall collect a fee for each new 
        application for a permit to drill that is submitted to 
        the Secretary.
          (2) Amount.--The amount of the fee shall be $9,500 
        for each new application, as indexed for United States 
        dollar inflation from October 1, 2015 (as measured by 
        the Consumer Price Index).
          (3) Use.--Of the fees collected under this subsection 
        for a fiscal year, the Secretary shall transfer--
                  (A) for each of fiscal years 2016 through 
                2019--
                          (i) 15 percent to the field offices 
                        that collected the fees and used to 
                        process protests, leases, and permits 
                        under this Act, subject to 
                        appropriation; and
                          (ii) 85 percent to the BLM Permit 
                        Processing Improvement Fund established 
                        under subsection (c)(2)(B) (referred to 
                        in this subsection as the ``Fund''); 
                        and
                  (B) for each of fiscal years 2020 through 
                2026, all of the fees to the Fund.
          (4) Additional costs.--During each of fiscal years of 
        2016 through 2026, the Secretary shall not implement a 
        rulemaking that would enable an increase in fees to 
        recover additional costs related to processing 
        applications for permits to drill.
  (e) Conveyance to Certain States of Property Interest in 
State Share.--
          (1) In general.--Notwithstanding any other provision 
        of law, on request of a State and in lieu of any 
        payments to the State under subsection (a), the 
        Secretary of the Interior shall convey to the State all 
        right, title, and interest in and to the percentage 
        specified in that subsection for that State that would 
        otherwise be required to be paid into the Treasury 
        under that subsection.
          (2) Amount.--Notwithstanding any other provision of 
        law, after a conveyance to a State under paragraph (1), 
        any person shall pay directly to the State any amount 
        owed by the person for which the right, title, and 
        interest has been conveyed to the State under this 
        subsection.
          (3) Notice.--The Secretary of the Interior shall 
        promptly provide to each holder of a lease of public 
        land to which subsection (a) applies that is located in 
        a State to which right, title, and interest is conveyed 
        under this subsection notice that--
                  (A) the Secretary of the Interior has 
                conveyed to the State all right, title, and 
                interest in and to the amounts referred to in 
                paragraph (1); and
                  (B) the leaseholder is required to pay the 
                amounts directly to the State.
          (4) Report.--A State that has received a conveyance 
        under this subsection shall report monthly to the 
        Office of Natural Resources Revenue of the Department 
        of the Interior the amount paid to such State pursuant 
        to this subsection.
          (5) Application with respect to fogrma.--With respect 
        to the interest conveyed to a State under this 
        subsection from sales, bonuses, royalties (including 
        interest charges), and rentals collected under the 
        Federal Oil and Gas Royalty Management Act of 1983 (30 
        U.S.C. 1701 et seq.), this subsection shall only apply 
        with respect to States for which the Secretary has 
        delegated any authority under section 44(a)(1).

           *       *       *       *       *       *       *


SEC. 43. LANDS NOT SUBJECTED TO OIL AND GAS LEASING.

  (a) Prohibition.--The Secretary shall not issue any lease 
under this Act or under the Geothermal Steam Act of 1970 on any 
of the following Federal lands:
          (1) Lands recommended for wilderness allocation by 
        the surface managing agency.
          (2) Lands within Bureau of Land Management wilderness 
        study areas.
          (3) Lands designated by Congress as wilderness study 
        areas, except where oil and gas leasing is specifically 
        allowed to continue by the statute designating the 
        study area.
          (4) Lands within areas allocated for wilderness or 
        further planning in Executive Communication 1504, 
        Ninety-Sixth Congress (House Document numbered 96-119), 
        unless such lands are allocated to uses other than 
        wilderness by a land and resource management plan or 
        have been released to uses other than wilderness by an 
        act of Congress.
  (b) Exploration.--In the case of any area of National Forest 
or public lands subject to this section, nothing in this 
section shall affect any authority of the Secretary of the 
Interior (or for National Forest Lands reserved from the public 
domain, the Secretary of Agriculture) to issue permits for 
exploration for oil and gas, coal, oil shale, phosphate, 
potassium, sulphur, gilsonite or geothermal resources by means 
not requiring construction of roads or improvement of existing 
roads if such activity is conducted in a manner compatible with 
the preservation of the wilderness environment.

SEC. 44. COOPERATIVE FEDERALISM IN OIL AND GAS PERMITTING ON AVAILABLE 
                    FEDERAL LAND.

  (a) Authorizations.--
          (1) In general.--Upon receipt of an application under 
        subsection (b), the Secretary may delegate to a State 
        exclusive authority--
                  (A) to issue an APD on available Federal 
                land; or
                  (B) to approve drilling plans on available 
                Federal land.
          (2) Sundry notices.--Any authorization under 
        paragraph (1) may, upon the request of the State, 
        include authority to issue sundry notices.
          (3) Inspection and enforcement.--Any authorization 
        under paragraph (1) may, upon the request of the State, 
        include authorization to inspect and enforce an APD or 
        drilling plan, as applicable. An authorization under 
        paragraph (1)(A) shall not affect the ability of the 
        Secretary to collect inspection fees under section 
        108(d) of the Federal Oil and Gas Royalty Management 
        Act of 1982 (30 U.S.C. 1718(d)).
  (b) State Application Process.--
          (1) Submission of application.--A State may submit an 
        application under subparagraph (A) or (B) of subsection 
        (a)(1) to the Secretary at such time and in such manner 
        as the Secretary may require.
          (2) Content of application.--An application submitted 
        under this subsection shall include--
                  (A) a description of the State program that 
                the State proposes to administer under State 
                law; and
                  (B) a statement from the Governor or attorney 
                general of such State that the laws of such 
                State provide adequate authority to carry out 
                the State program.
          (3) Deadline for approval or disapproval.--Not later 
        than 180 days after the date of receipt of an 
        application under this subsection, the Secretary shall 
        approve or disapprove such application.
          (4) Criteria for approval.--The Secretary may approve 
        an application received under this subsection only if 
        the Secretary has--
                  (A) determined that the State applicant would 
                be at least as effective as the Secretary in 
                issuing APDs or in approving drilling plans, as 
                applicable;
                  (B) determined that the State program of the 
                State applicant--
                          (i) complies with this Act; and
                          (ii) provides for the termination or 
                        modification of an issued APD or 
                        approved drilling plan, as applicable, 
                        for cause, including for--
                                  (I) the violation of any 
                                condition of the issued APD or 
                                approved drilling plan;
                                  (II) obtaining the issued APD 
                                or approved drilling plan by 
                                misrepresentation; or
                                  (III) failure to fully 
                                disclose in the application all 
                                relevant facts;
                  (C) determined that the State applicant has 
                sufficient administrative and technical 
                personnel and sufficient funding to carry out 
                the State program;
                  (D) provided notice to the public, solicited 
                public comment, and held a public hearing 
                within the State;
                  (E) determined that approval of the 
                application would not result in decreased 
                royalty payments owed to the United States 
                under section 35(a), except as provided in 
                subsection (e) of that section; and
                  (F) in the case of a State applicant seeking 
                authority under subsection (a)(3) to inspect 
                and enforce APDs or drilling plans, as 
                applicable, entered into a memorandum of 
                understanding with a State applicant that 
                delineates the Federal and State 
                responsibilities with respect to such 
                inspection and enforcement.
          (5) Disapproval.--If the Secretary disapproves an 
        application submitted under this subsection, then the 
        Secretary shall--
                  (A) notify, in writing, the State applicant 
                of the reason for the disapproval and any 
                revisions or modifications necessary to obtain 
                approval; and
                  (B) provide any additional information, data, 
                or analysis upon which the disapproval is 
                based.
          (6) Resubmittal of application.--A State may resubmit 
        an application under this subsection at any time.
          (7) State memorandum of understanding.--Before a 
        State submits an application under this subsection, the 
        Secretary may, at the request of a State, enter into a 
        memorandum of understanding with the State regarding 
        the proposed State program--
                  (A) to delineate the Federal and State 
                responsibilities for oil and gas regulations;
                  (B) to provide technical assistance; and
                  (C) to share best management practices.
  (c) Administrative Fees for APDs.--
          (1) In general.--A State for which authority has been 
        delegated under subsection (a)(1)(A) may collect a fee 
        for each application for an APD that is submitted to 
        the State.
          (2) No collection of fee by secretary.--The Secretary 
        may not collect a fee from the applicant or from the 
        State for an application for an APD that is submitted 
        to a State for which authority has been delegated under 
        subsection (a)(1)(A).
          (3) Fee amount.--The fee collected under paragraph 
        (1) shall be less than or equal to the amount of the 
        fee collected by the Secretary under section 
        35(d)(2)from States for which authority has not been 
        delegated under subsection (a)(1)(A).
          (4) Use.--A State shall use 100 percent of the fees 
        collected under this subsection for the administration 
        of the approved State program of the State.
  (d) Voluntary Termination of Authority.--A State may 
voluntarily terminate any authority delegated to such State 
under subsection (a) upon providing written notice to the 
Secretary 60 days in advance. Upon expiration of such 60-day 
period, the Secretary shall resume any activities for which 
authority was delegated to the State under subsection (a).
  (e) Appeal of Denial of Application for APD or Application 
for Approval of Drilling Plan.--
          (1) In general.--If a State for which the Secretary 
        has delegated authority under subsection (a)(1) denies 
        an application for an APD or an application for 
        approval of a drilling plan, the applicant may appeal 
        such decision to the Department of the Interior Office 
        of Hearings and Appeals.
          (2) Fee allowed.--The Secretary may charge the 
        applicant a fee for the appeal referred to in paragraph 
        (1).
  (f) Federal Administration of State Program.--
          (1) Notification.--If the Secretary has reason to 
        believe that a State is not administering or enforcing 
        an approved State program, the Secretary shall notify 
        the relevant State regulatory authority of any possible 
        deficiencies.
          (2) State response.--Not later than 30 days after the 
        date on which a State receives notification of a 
        possible deficiency under paragraph (1), the State 
        shall--
                  (A) take appropriate action to correct the 
                possible deficiency; and
                  (B) notify the Secretary of the action in 
                writing.
          (3) Determination.--
                  (A) In general.--On expiration of the 30-day 
                period referred to in paragraph (2), if the 
                Secretary determines that a violation of all or 
                any part of an approved State program has 
                resulted from a failure of the State to 
                administer or enforce the approved State 
                program of the State or that the State has not 
                demonstrated its capability and intent to 
                administer or enforce such a program, the 
                Secretary shall issue public notice of such a 
                determination.
                  (B) Appeal.--A State may appeal the 
                determination of the Secretary under 
                subparagraph (A) in the applicable United 
                States District Court. The Secretary may not 
                resume activities under paragraph (4) pending 
                the resolution of the appeal.
          (4) Resumption by secretary.--If the Secretary has 
        made a determination under paragraph (3), the Secretary 
        shall resume any activities for which authority was 
        delegated to the State during the period--
                  (A) beginning on the date on which the 
                Secretary issues the public notice under 
                paragraph (3); and
                  (B) ending on the date on which the Secretary 
                determines that the State will administer or 
                enforce, as applicable, the approved State 
                program of the State.
          (5) Standing.--States with approved regulatory 
        programs shall have standing to sue the Secretary for 
        any action taken under this subsection.
  (g) Definitions.--In this section:
          (1) Available federal land.--The term ``available 
        Federal land'' means any Federal land that--
                  (A) is located within the boundaries of a 
                State;
                  (B) is not held by the United States in trust 
                for the benefit of a federally recognized 
                Indian Tribe or a member of such an Indian 
                Tribe;
                  (C) is not a unit of the National Park 
                System;
                  (D) is not a unit of the National Wildlife 
                Refuge System, except for the portion of such 
                unit for which oil and gas drilling is allowed 
                under law;
                  (E) is not a congressionally approved 
                wilderness area under the Wilderness Act (16 
                U.S.C. 1131 et seq.); and
                  (F) has been identified as land available for 
                lease or has been leased for the exploration, 
                development, and production of oil and gas--
                          (i) by the Bureau of Land Management 
                        under--
                                  (I) a resource management 
                                plan under the process provided 
                                for in the Federal Land Policy 
                                and Management Act of 1976 (43 
                                U.S.C. 1701 et seq.); or
                                  (II) an integrated activity 
                                plan with respect to the 
                                National Petroleum Reserve in 
                                Alaska; or
                          (ii) by the Forest Service under a 
                        National Forest management plan under 
                        the Forest and Rangeland Renewable 
                        Resources Planning Act of 1974 (16 
                        U.S.C. 1600 et seq.).
          (2) Drilling plan.--The term ``drilling plan'' means 
        a plan described under section 3162.3-1(e) of title 43, 
        Code of Federal Regulations (or successor regulation).
          (3) APD.--The term ``APD'' means a permit--
                  (A) that grants authority to drill for oil 
                and gas; and
                  (B) for which an application has been 
                received that contains--
                          (i) a drilling plan;
                          (ii) a surface use plan of operations 
                        described under section 3162.3-1(f) of 
                        title 43, Code of Federal Regulations 
                        (or successor regulation);
                          (iii) evidence of bond coverage; and
                          (iv) such other information as may be 
                        required by applicable orders and 
                        notices.
          (4) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.
          (5) State.--The term ``State'' means each of the 
        several States.
          (6) State applicant.--The term ``State applicant'' 
        means a State that has submitted an application under 
        subsection (b).
          (7) State program.--The term ``State program'' means 
        a program that provides for a State to--
                  (A) issue APDs or approve drilling plans, as 
                applicable, on available Federal land; and
                  (B) impose sanctions for violations of State 
                laws, regulations, or any condition of an 
                issued APD or approved drilling plan, as 
                applicable.
          (8) Sundry notice.--The term ``sundry notice'' means 
        a written request--
                  (A) to perform work not covered under an APD 
                or drilling plan; or
                  (B) for a change to operations covered under 
                a an APD or drilling plan.

SEC. 45. PERMITTING ON NON-FEDERAL SURFACE ESTATE.

  (a) Permits Not Required for Certain Activities on Non-
Federal Surface Estate.--The following activities conducted on 
non-Federal surface estate shall not require a Bureau of Land 
Management drilling permit under the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.) or 
section 3164.1 of title 43, Code of Federal Regulations (or 
successor regulation) and shall not be considered a major 
Federal action under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.):
          (1) Oil and gas operations for the exploration for or 
        development or production of oil and gas in a lease or 
        unit or communitization agreement in which the United 
        States holds a mineral ownership interest of 50 percent 
        or less.
          (2) Oil and gas operations that may have potential 
        drainage impacts, as determined by the Bureau of Land 
        Management, on oil and gas in which the United States 
        holds a mineral ownership interest.
  (b) DOI Notification.--The Secretary of the Interior shall 
provide to each State a map or list indicating Federal mineral 
ownership within that State.
  (c) State Notification.--Each State that has issued an APD or 
approved a drilling plan that would impact or extract oil and 
gas owned by the United States shall notify the Secretary of 
the Interior within 7 days of issuing an APD.
  (d) Royalties.--Nothing in this section shall affect the 
amount of royalties due to the United States under this Act 
from the production of oil and gas or alter the Secretary's 
authority to conduct audits and collect civil penalties 
pursuant to the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1711 et seq.).
  (e) Application.--This section shall only apply with respect 
to States for which the Secretary has delegated any authority 
under section 44(a)(1).

SEC. 46. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC FRACTURING 
                    REGULATION.

  (a) In General.--The Secretary of the Interior shall not 
enforce any Federal regulation, guidance, or permit requirement 
regarding hydraulic fracturing relating to oil, gas, or 
geothermal production activities on or under any land in any 
State that has regulations, guidance, or permit requirements 
for that activity.
  (b) State Authority.--The Secretary of the Interior shall 
defer to State regulations, guidance, and permit requirements 
for all activities regarding hydraulic fracturing relating to 
oil, gas, or geothermal production activities on Federal land.
  (c) Transparency of State Regulations.--
          (1) In general.--Each State shall submit to the 
        Bureau of Land Management a copy of the regulations of 
        such State that apply to hydraulic fracturing 
        operations on Federal land, including those that 
        require disclosure of chemicals used in hydraulic 
        fracturing operations.
          (2) Availability.--The Secretary of the Interior 
        shall make available to the public on the website of 
        the Secretary the regulations submitted under paragraph 
        (1).
  (d) Tribal Authority on Trust Land.--The Secretary of the 
Interior shall not enforce any Federal regulation, guidance, or 
permit requirement with respect to hydraulic fracturing on any 
land held in trust or restricted status for the benefit of a 
federally recognized Indian Tribe or a member of such an Indian 
Tribe, except with the express consent of the beneficiary on 
whose behalf such land is held in trust or restricted status.
  (e) Hydraulic Fracturing Defined.--In this section the term 
``hydraulic fracturing'' means the process of creating small 
cracks, or fractures, in underground geological formations for 
well stimulation purposes of bringing hydrocarbons into the 
wellbore and to the surface for capture.

SEC. [44.]  47. SHORT TITLE.

  This Act may be cited as the ``Mineral Leasing Act''.
                              ----------                              


           FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT OF 1982



           *       *       *       *       *       *       *
TITLE I--FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

           *       *       *       *       *       *       *


                              inspections

  Sec. 108. (a)(1) On any lease site on Federal or Indian 
lands, any authorized and properly identified representative of 
the Secretary may stop and inspect any motor vehicle that he 
has probable cause to believe is carrying oil from a lease site 
on Federal or Indian lands or allocated to such a lease site, 
for the purpose of determining whether the driver of such 
vehicle has documentation related to such oil as required by 
law.
  (2) Any authorized and properly identified representative of 
the Secretary, accompanied by any appropriate law enforcement 
officer, or an appropriate law enforcement officer alone, may 
stop and inspect any motor vehicle which is not on a lease site 
if he has probable cause to believe the vehicle is carrying oil 
from a lease site on Federal or Indian lands or allocated to 
such a lease site. Such inspection shall be for the purpose of 
determining whether the driver of such vehicle has the 
documentation required by law.
  (b) Authorized and properly identified representatives of the 
Secretary may without advance notice, enter upon, travel across 
and inspect lease sites on Federal or Indian lands and may 
obtain from the operator immediate access to secured facilities 
on such lease sites, for the purpose of making any inspection 
or investigation for determining whether there is compliance 
with the requirements of the mineral leasing laws and this Act. 
The Secretary shall develop guidelines setting forth the 
coverage and the frequency of such inspections.
  (c) For the purpose of making any inspection or investigation 
under this Act, the Secretary shall have the same right to 
enter upon or travel across any lease site as the lessee or 
operator has acquired by purchase, condemnation, or otherwise.
  (d) Inspection Fees for Certain States.--
          (1) In general.--The Secretary shall conduct 
        inspections of operations under each oil and gas lease. 
        The Secretary shall collect annual nonrefundable 
        inspection fees in the amount specified in paragraph 
        (2), from each designated operator under each oil and 
        gas lease on Federal or Indian land that is subject to 
        inspection under subsection (b) and that is located in 
        a State for which the Secretary has delegated authority 
        under section 44(a)(1)(A) of the Mineral Leasing Act.
          (2) Amount.--The amount of the fees collected under 
        paragraph (1) shall be--
                  (A) $700 for each lease or unit or 
                communitization agreement with no active or 
                inactive wells, but with surface use, 
                disturbance or reclamation;
                  (B) $1,225 for each lease or unit or 
                communitization agreement with 1 to 10 wells, 
                with any combination of active or inactive 
                wells;
                  (C) $4,900 for each lease or unit or 
                communitization agreement with 11 to 50 wells, 
                with any combination of active or inactive 
                wells; and
                  (D) $9,800 for each lease or unit or 
                communitization agreement with more than 50 
                wells, with any combination of active or 
                inactive wells.
          (3) Onshore energy safety fund.--There is established 
        in the Treasury a fund, to be known as the ``Onshore 
        Energy Safety Fund'' (referred to in this subsection as 
        the ``Fund''), into which shall be deposited all 
        amounts collected as fees under paragraph (1) and which 
        shall be available as provided under paragraph (4).
          (4) Availability of fees.--Notwithstanding section 
        3302 of title 31, United States Code, all amounts 
        deposited in the Fund--
                  (A) shall be credited as offsetting 
                collections;
                  (B) shall be available for expenditure for 
                purposes of carrying out inspections of onshore 
                oil and gas operations in those States for 
                which the Secretary has delegated authority 
                under section 44(a)(1)(A) of the Mineral 
                Leasing Act;
                  (C) shall be available only to the extent 
                provided for in advance in an appropriations 
                Act; and
                  (D) shall remain available until expended.
          (5) Payment due date.--The Secretary shall require 
        payment of any fee assessed under this subsection 
        within 30 days after the Secretary provides notice of 
        the assessment of the fee after the completion of an 
        inspection.
          (6) Penalty.--If a designated operator assessed a fee 
        under this subsection fails to pay the full amount of 
        the fee as prescribed in this subsection, the Secretary 
        may, in addition to utilizing any other applicable 
        enforcement authority, assess civil penalties against 
        the operator under section 109 in the same manner as if 
        this section were a mineral leasing law.
          (7) Notification to state of noncompliance.--If, on 
        the basis of any inspection under subsection (b), the 
        Secretary determines that an operator is in 
        noncompliance with the requirements of mineral leasing 
        laws and this chapter, the Secretary shall notify the 
        State of such noncompliance immediately.

           *       *       *       *       *       *       *


TITLE II--STATES AND INDIAN TRIBES

           *       *       *       *       *       *       *


SEC. 205. DELEGATION OF ROYALTY COLLECTIONS AND RELATED ACTIVITIES.

          (a) Upon written request of any State, the Secretary 
        is authorized to delegate, in accordance with the 
        provisions of this section, all or part of the 
        authorities and responsibilities of the Secretary under 
        this Act to:
                  (1) conduct inspections, audits, and 
                investigations;
                  (2) receive and process production and 
                financial reports;
                  (3) correct erroneous report data;
                  (4) perform automated verification; and
                  (5) issue demands, subpoenas, and orders to 
                perform restructured accounting, for royalty 
                management enforcement purposes,
to any State with respect to all Federal land within the State.
  (b) After notice and opportunity for a hearing, the Secretary 
is authorized to delegate such authorities and responsibilities 
granted under this section as the State has requested, if the 
Secretary finds that--
          (1) it is likely that the State will provide adequate 
        resources to achieve the purposes of this Act;
          (2) the State has demonstrated that it will 
        effectively and faithfully administer the rules and 
        regulations of the Secretary under this Act in 
        accordance with the requirements of subsections (c) and 
        (d) of this section;
          (3) such delegation will not create an unreasonable 
        burden on any lessee;
          (4) the State agrees to adopt standardized reporting 
        procedures prescribed by the Secretary for royalty and 
        production accounting purposes, unless the State and 
        all affected parties (including the Secretary) 
        otherwise agree;
          (5) the State agrees to follow and adhere to 
        regulations and guidelines issued by the Secretary 
        pursuant to the mineral leasing laws regarding 
        valuation of production; and
          (6) where necessary for a State to have authority to 
        carry out and enforce a delegated activity, the State 
        agrees to enact such laws and promulgate such 
        regulations as are consistent with relevant Federal 
        laws and regulations
with respect to the Federal lands within the State.
  (c) After notice and opportunity for hearing, the Secretary 
shall issue a ruling as to the consistency of a State's 
proposal with the provisions of this section and regulations 
under subsection (d) within 90 days after submission of such 
proposal. In any unfavorable ruling, the Secretary shall set 
forth the reasons therefor and state whether the Secretary will 
agree to delegate to the State if the State meets the 
conditions set forth in such ruling.
  (d) After consultation with State authorities, the Secretary 
shall by rule promulgate, within 12 months after the date of 
enactment of this section, standards and regulations pertaining 
to the authorities and responsibilities to be delegated under 
subsection (a), including standards and regulations pertaining 
to--
          (1) audits to be performed;
          (2) records and accounts to be maintained;
          (3) reporting procedures to be required by States 
        under this section;
          (4) receipt and processing of production and 
        financial reports;
          (5) correction of erroneous report data;
          (6) performance of automated verification;
          (7) issuance of standards and guidelines in order to 
        avoid duplication of effort;
          (8) transmission of report data to the Secretary; and
          (9) issuance of demands, subpoenas, and orders to 
        perform restructured accounting, for royalty management 
        enforcement purposes.
Such standards and regulations shall be designed to provide 
reasonable assurance that a uniform and effective royalty 
management system will prevail among the States. The records 
and accounts under paragraph (2) shall be sufficient to allow 
the Secretary to monitor the performance of any State under 
this section.
  (e) If, after notice and opportunity for a hearing, the 
Secretary finds that any State to which any authority or 
responsibility of the Secretary has been delegated under this 
section is in violation of any requirement of this section or 
any rule thereunder, or that an affirmative finding by the 
Secretary under subsection (b) can no longer be made, the 
Secretary may revoke such delegation. If, after providing 
written notice to a delegated State and a reasonable 
opportunity to take corrective action requested by the 
Secretary, the Secretary determines that the State has failed 
to issue a demand or order to a Federal lessee within the 
State, that such failure may result in an underpayment of an 
obligation due the United States by such lessee, and that such 
underpayment may be uncollected without Secretarial 
intervention, the Secretary may issue such demand or order in 
accordance with the provisions of this Act prior to or absent 
the withdrawal of delegated authority.
  (f) Subject to appropriations, the Secretary shall compensate 
any State for those costs which may be necessary to carry out 
the delegated activities under this Section. Payment shall be 
made no less than every quarter during the fiscal year. 
Compensation to a State may not exceed the Secretary's 
reasonably anticipated expenditure for performance of such 
delegated activities by the Secretary. Such costs shall be 
allocable for the purposes of section 35(b) of the Act entitled 
``An act to promote the mining of coal, phosphate, oil, oil 
shale, gas and sodium on the public domain'', approved February 
25, 1920 (commonly known as the Mineral Leasing Act) (30 U.S.C. 
191 (b)) to the administration and enforcement of laws 
providing for the leasing of any onshore lands or interests in 
land owned by the United States. Any further allocation of 
costs under section 35(b) made by the Secretary for oil and gas 
activities, other than those costs to compensate States for 
delegated activities under this Act, shall be only those costs 
associated with onshore oil and gas activities and may not 
include any duplication of costs allocated pursuant to the 
previous sentence. Nothing in this section affects the 
Secretary's authority to make allocations under section 35(b) 
for non-oil and gas mineral activities. [All] Subject to 
subsection (e) of section 35 of the Mineral Leasing Act (30 
U.S.C. 191), all moneys received from sales, bonuses, rentals, 
royalties, assessments and interest, including money claimed to 
be due and owing pursuant to a delegation under this section, 
shall be payable and paid to the Treasury of the United States.
  (g) Any action of the Secretary to approve or disapprove a 
proposal submitted by a State under this section shall be 
subject to judicial review in the United States district court 
which includes the capital of the State submitting the 
proposal.
  (h) Any State operating pursuant to a delegation existing on 
the date of enactment of this Act may continue to operate under 
the terms and conditions of the delegation, except to the 
extent that a revision of the existing agreement is adopted 
pursuant to this section.

           *       *       *       *       *       *       *

                              ----------                              


                       ENERGY POLICY ACT OF 2005



           *       *       *       *       *       *       *
TITLE III--OIL AND GAS

           *       *       *       *       *       *       *


Subtitle G--Miscellaneous

           *       *       *       *       *       *       *


SEC. 390. NEPA REVIEW.

  (a) NEPA Review.--[Action by the Secretary] The Secretary of 
the Interior in managing the public lands, or the Secretary of 
Agriculture in managing National Forest System Lands, [with 
respect to any of the activities described in subsection (b) 
shall be subject to a rebuttable presumption that the use of] 
shall apply a categorical exclusion under the National 
Environmental Policy Act of 1969 (NEPA) [would apply if the 
activity] for each action described in subsection (b) if the 
action is conducted pursuant to the Mineral Leasing Act for the 
purpose of exploration or development of oil or gas.
  (b) Activities Described.--The activities referred to in 
subsection (a) are the following:
          (1) Individual surface disturbances of less than 5 
        acres so long as the total surface disturbance on the 
        lease is not greater than 150 acres and site-specific 
        analysis in a document prepared pursuant to NEPA has 
        been previously completed.
          (2) Drilling an oil or gas well at a location or well 
        pad site at which drilling has occurred previously 
        within 5 years prior to the date of spudding the well.
          (3) Drilling an oil or gas well within a developed 
        field for which an approved land use plan or any 
        environmental document prepared pursuant to NEPA 
        analyzed such drilling as a reasonably foreseeable 
        activity, so long as such plan or document was approved 
        within 5 years prior to the date of spudding the well.
          (4) Placement of a pipeline in an approved right-of-
        way corridor, so long as the corridor was approved 
        within 5 years prior to the date of placement of the 
        pipeline.
          (5) Maintenance of a minor activity, other than any 
        construction or major renovation or a building or 
        facility.

           *       *       *       *       *       *       *

                              ----------                              


                       MIGRATORY BIRD TREATY ACT



           *       *       *       *       *       *       *
  Sec. 6. (a) Except as otherwise provided in this section, any 
person, association, partnership, or corporation who shall 
violate any provisions of said conventions or of this Act, or 
who shall violate or fail to comply with any regulation made 
pursuant to this Act shall be deemed guilty of a misdemeanor 
and upon conviction thereof shall be fined not more than 
$15,000 or be imprisoned not more than six months, or both.
  (b) Whoever, in violation of this Act, shall knowingly--
          (1) take by any manner whatsoever any migratory bird 
        with intent to sell, offer to sell, barter or offer to 
        barter such bird, or
          (2) sell, offer for sale, barter or offer to barter, 
        any migratory bird shall be guilty of a felony and 
        shall be fined not more than $2,000 or imprisoned not 
        more than two years, or both.
  (c) Whoever violates section 3(b)(2) shall be fined under 
title 18, United States Code, imprisoned not more than 1 year, 
or both.
  (d) All guns, traps, nets and other equipment, vessels, 
vehicles, and other means of transportation used by any person 
when engaged in pursuing, hunting, taking, trapping, ensnaring, 
capturing, killing, or attempting to take, capture, or kill any 
migratory bird in violation of this Act with the intent to 
offer for sale, or sell, or offer for barter, or barter such 
bird in violation of this Act shall be forfeited to the United 
States and may be seized and held pending the prosecution of 
any person arrested for violating this Act and upon conviction 
for such violation, such forfeiture shall be adjudicated as a 
penalty in addition to any other provided for violation of this 
Act. Such forfeited property shall be disposed of and accounted 
for by, and under the authority of, the Secretary of the 
Interior.
  (e) This Act shall not be construed to prohibit any activity 
proscribed by section 2 of this Act that is accidental or 
incidental to the presence or operation of an otherwise lawful 
activity.

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    H.R. 4239 is another attempt by the Majority to prioritize 
drilling for oil and gas over all other uses of America's 
public lands, and a back-door method to hand over the 
management of those public lands to the states. Despite the 
Majority's claims, it would do nothing to increase America's 
energy independence or energy security, but it would overturn 
longstanding principles of public land and forest management, 
reduce opportunities for public and tribal input into land 
management decisions, harm endangered species and marine 
mammals, and encourage offshore drilling in the Arctic Ocean 
while at the same time making it more dangerous.
    Title I of the bill, the ASTRO Act, would share federal 
revenues from offshore drilling with Alaska and certain 
Atlantic states, a giveaway of federal funds in a blatant 
attempt to entice states on the Atlantic seaboard to support 
drilling off their beaches. While the Majority uses inflated 
statistics to encourage state and local officials to dream of 
oil and gas windfalls, they neglect to mention the potential 
devastating impacts of offshore drilling to the vibrant 
tourism, recreation, and fishing industries, which generate 
more than $50 billion annually in GDP and support more than 1 
million direct jobs along the eastern seaboard.\1\
---------------------------------------------------------------------------
    \1\National Oceanic and Atmospheric Administration (NOAA). 
Economics: National Ocean Watch (ENOW) Data for 2014. Based on data 
from the Bureau of Labor Statistics and the Bureau of Economic Analysis 
Charleston, SC: NOAA Office for Coastal Management.
---------------------------------------------------------------------------
    Section 104 would eliminate the ability of future 
Presidents to use their authority under the Antiquities Act to 
protect underwater resources through the creation of Marine 
National Monuments, an authority first used by a Republican 
President, George W. Bush. Section 107 eliminates the Arctic 
Drilling Safety Rule finalized just last year, which was based 
on lessons learned from Shell's bungled attempts to drill in 
the Arctic Ocean in 2012 and 2015. The Arctic is a uniquely 
harsh and uncompromising environment, and operating safely in 
that region requires very different safety regulations than 
those governing drilling in the Gulf of Mexico. This 
legislation, however, eliminates any additional protections for 
the Arctic, increasing the chances of a future environmental 
disaster.
    Section 108 creates a new system for exploration licenses 
and leases for seabed mining a few miles off the coasts of U.S. 
territories. The need for or impact of this section has not 
been discussed in the committee at all in recent years, yet it 
could vastly expand this relatively new and potentially 
destructive form of resource extraction. Far more discussion is 
needed before Congress gives the green-light to wholesale 
mining of our territorial waters.
    Section 110 would severely weaken one of our bedrock 
environmental laws, the Marine Mammal Protection Act (MMPA), in 
order to make it even easier to conduct destructive seismic 
testing for offshore oil and gas. The MMPA has been incredibly 
effective in restoring populations of seals, sea lions, whales, 
dolphins, and other marine mammals whose populations were 
severely depleted. This section would virtually eliminate the 
ability of the National Oceanic and Atmospheric Administration 
from requiring mitigation measures to protect marine mammals, 
and would automatically approve permits if the agency missed 
arbitrary deadlines.
    Title II of the bill, the ONSHORE Act, would completely 
upend decades of public land management principles on Bureau of 
Land Management (BLM) and U.S. Forest Service lands. Public 
lands are a public trust, owned by all Americans, and managed 
in such a way as to ensure that all Americans have a say in the 
management of those lands and that multiple uses are allowed. 
H.R. 4239, however, would shut the public out, make oil and gas 
drilling the dominant use of public lands, and hand over 
control of public lands to any state that applied for it.
    Giving the states permitting authority for applications for 
permits to drill on federal public land, including the surface 
use plan of operations, creates a number of serious negative 
consequences. Because permit approval would no longer be a 
federal action, requirements for the federal government under 
the National Historic Preservation Act, Endangered Species Act, 
and National Environmental Policy Act, along with its public 
comment opportunities, would no longer apply. States aren't 
required to adhere to the multiple use mandate that drives 
federal land management, so states could approve wells, roads, 
drill pads, waste pits, and other surface impacts without 
having to consider the impacts on recreation, grazing, 
conservation, or other public land uses and resources. During a 
hearing on a discussion draft of the bill, the Director of the 
North Dakota Industrial Commission Department of Mineral 
Resources pointed out that his state does not require permit 
applicants to submit a biological study, a wildlife survey, an 
endangered species review, a master development plan, a 
reclamation plan, a waste management plan, a surface use plan, 
or a number of other items that BLM requires to ensure 
compliance with federal laws, the multiple use mandate, and 
approved resource management plans.
    While the legislation does require that permit applicants 
submit ``such other information as may be required by 
applicable orders and notices,'' that clause is meaningless. 
Even if state permitting authorities had the necessary 
expertise to review that additional information--which they 
most likely would not--they would not be required to do so. And 
nothing in the bill requires states to have requirements to 
allow for public review and comment of drilling permits or 
plans. People would be completely shut out from decisions that 
impact public lands unless they live in one of the few states 
that have their own public comment requirements for oil and gas 
drilling.
    The entire argument for handing permitting responsibility 
to the states is built on quicksand. There is no shortage of 
approved federal permits: at the end of Fiscal Year 2016, 
companies held 7,950 approved permits they hadn't used yet, the 
highest value ever reported by BLM, while only 2,552 permits 
were waiting to be processed, the lowest number in nearly a 
decade. Oil production on federal land went up 78 percent from 
2008 to 2015, not much different from the 88 percent increase 
in total U.S. oil production in the same timeframe. In fact, in 
certain states such as New Mexico, the growth in oil production 
on federal lands (213 percent) significantly outpaced overall 
state oil production (145 percent). While the Majority 
repeatedly claims that companies are fleeing federal lands, the 
data clearly shows that is not the case.
    Section 205 also prohibits the federal government from 
setting commonsense baseline standards for hydraulic fracturing 
(or ``fracking'') on federal lands in any state that has 
existing fracking regulations of their own, no matter how weak. 
Forbidding federal agencies from enacting rules to protect 
federal resources--in this case federal land and mineral 
resources--is completely inappropriate, and is evidence of a 
severe misunderstanding of how federal and state oil and gas 
regulations have coexisted on public lands for nearly a 
century.
    At markup on the bill, Democrats offered a number of 
commonsense amendments designed to protect marine mammals, 
marine monuments, air quality, military training areas, and the 
Eastern Gulf of Mexico. All were rejected by the Republicans. 
The Majority also rejected amendments that would have simply 
required additional data collection and reporting, permanently 
reauthorized the Land and Water Conservation Fund, and required 
climate considerations to be taken into account. Two Majority 
amendments--further weakening the MMPA and the Migratory Bird 
Treaty Act--were adopted, making a damaging industry giveaway 
bill even worse.
    For all of these reasons, we strongly oppose H.R. 4239 as 
reported.

                                   Raul M. Grijalva,
                                           Ranking Member, Committee on 
                                               Natural Resources.
                                   Darren Soto.
                                   Grace F. Napolitano.
                                   Jimmy Gomez.
                                   Jared Huffman.
                                   Niki Tsongas.
                                   Donald S. Beyer, Jr.
                                   A. Donald McEachin.
                                   Nanette Diaz Barragan.
                                   Alan S. Lowenthal.