S 1560 ISCommentsClose CommentsPermalink

To amend the Outer Continental Shelf Lands Act to provide for the sharing of certain outer Continental Shelf revenues from areas in the Alaska Adjacent Zone.CommentsClose CommentsPermalink

August 3, 2009CommentsClose CommentsPermalink

Mr. BEGICH introduced the following bill; which was read twice and referred to the Committee on Energy and Natural ResourcesCommentsClose CommentsPermalink

To amend the Outer Continental Shelf Lands Act to provide for the sharing of certain outer Continental Shelf revenues from areas in the Alaska Adjacent Zone.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Alaska Adjacent Zone Revenue Sharing Act’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

Congress finds that--CommentsClose CommentsPermalink





(1) the United States is an Arctic nation with--CommentsClose CommentsPermalink





(A) an approximately 700-mile border with the Arctic Ocean;CommentsClose CommentsPermalink





(B) more than 100,000,000 acres of land above the Arctic Circle; andCommentsClose CommentsPermalink





(C) an even broader area defined as Arctic by temperature, which includes the Bering Sea and Aleutian Islands;CommentsClose CommentsPermalink





(2) the Arctic region of the United States--CommentsClose CommentsPermalink





(A) is home to an indigenous population that has subsisted for millennia on the abundance of marine mammals, fish, and wildlife in the Arctic region, many of which are unique to the region;CommentsClose CommentsPermalink





(B) is known to the indigenous population as Inuvikput or the ‘place where we live’; andCommentsClose CommentsPermalink





(C) has produced more than 16,000,000,000 barrels of oil and, according to the United States Geological Survey, may hold an additional 30,000,000,000 barrels of oil and 220,000,000,000,000 cubic feet of natural gas, making the region of fundamental importance to the national interest of the United States;CommentsClose CommentsPermalink





(3) temperatures in the United States Arctic region have warmed by 3 to 4 degrees Celsius over the past half-century, a rate of increase that is twice the global average;CommentsClose CommentsPermalink





(4) the Arctic ice pack is rapidly diminishing and thinning, and the National Oceanic and Atmospheric Administration estimates the Arctic Ocean may be ice-free during summer months in as few as 30 years;CommentsClose CommentsPermalink





(5) those changes to the Arctic region are having a significant impact on the indigenous people of the Arctic, the communities and ecosystems of the people, as well as the marine mammals, fish, and wildlife on which the people depend; andCommentsClose CommentsPermalink





(6) those changes are opening new portions of the United States Arctic continental shelf to possible development for offshore oil and gas, commercial fishing, marine shipping, and tourism.CommentsClose CommentsPermalink

SEC. 3. REVENUE SHARING FROM AREAS IN ALASKA ADJACENT ZONE.

Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(i) Revenue Sharing From Areas in Alaska Adjacent Zone-CommentsClose CommentsPermalink





‘(1) DEFINITIONS- In this subsection:CommentsClose CommentsPermalink





‘(A) COASTAL POLITICAL SUBDIVISION- The term ‘coastal political subdivision’ means a county-equivalent subdivision of the State all or part of which--CommentsClose CommentsPermalink





‘(i) lies within the coastal zone (as defined in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)); andCommentsClose CommentsPermalink





‘(ii) the closest point of which is not more than 300 statute miles from the geographical center of any leased tract.CommentsClose CommentsPermalink





‘(B) DISTANCE- The terms ‘distance’ means minimum great circle distance.CommentsClose CommentsPermalink





‘(C) INDIAN TRIBE- The term ‘Indian tribe’ means an Alaska Native entity recognized and eligible to receive services from the Bureau of Indian Affairs, the headquarters of which is located within 300 miles of the geographical center of a leased tract.CommentsClose CommentsPermalink





‘(D) LEASED TRACT- The term ‘leased tract’ means a tract leased under this Act for the purpose of drilling for, developing, and producing oil or natural gas resources.CommentsClose CommentsPermalink





‘(E) STATE- The term ‘State’ means the State of Alaska.CommentsClose CommentsPermalink





‘(2) BONUS BIDS- Subject to paragraphs (4), (5), and (6), effective beginning on the date that is 5 years after the date of enactment of this subsection, the State shall, without further appropriation or action, receive 37.5 percent of any bonus bid paid for leasing rights for any area in the Alaska Adjacent Zone.CommentsClose CommentsPermalink





‘(3) POST LEASING REVENUES- Subject to paragraphs (4), (5), and (6), in addition to bonus bids under paragraph (1), the State shall receive, from leasing of the area, 37.5 percent of--CommentsClose CommentsPermalink





‘(A) any lease rental payments;CommentsClose CommentsPermalink





‘(B) any lease royalty payments;CommentsClose CommentsPermalink





‘(C) any royalty proceeds from a sale of royalties taken in kind by the Secretary; andCommentsClose CommentsPermalink





‘(D) any other revenues from a bidding system under section 8.CommentsClose CommentsPermalink





‘(4) ALLOCATION AMONG COASTAL POLITICAL SUBDIVISIONS OF THE STATE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall pay 20 percent of any allocable share of the State, as determined under paragraphs (2) and (3), directly to coastal political subdivisions.CommentsClose CommentsPermalink





‘(B) ALLOCATION-CommentsClose CommentsPermalink





‘(i) IN GENERAL- For each leased tract used to calculate the allocation of the State, the Secretary shall pay the coastal political subdivisions within 300 miles of the geographical center of the leased tract based on the relative distance of the coastal political subdivisions from the leased tract in accordance with this subparagraph.CommentsClose CommentsPermalink





‘(ii) DISTANCES- For each coastal political subdivision, the Secretary shall determine the distance between the point on the coastal political subdivision coastline closest to the geographical center of the leased tract and the geographical center of the tract.CommentsClose CommentsPermalink





‘(iii) PAYMENTS- The Secretary shall divide and allocate the qualified outer Continental Shelf revenues derived from the leased tract among coastal political subdivisions in amounts that are inversely proportional to the applicable distances determined under clause (ii).CommentsClose CommentsPermalink





‘(5) ALLOCATION AMONG REGIONAL CORPORATIONS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall pay 33 percent of any allocable share of the State, as determined under this subsection, directly to certain Regional Corporations established under section 7(a) of the Alaska Native Claims Settlement Act (43 U.S.C. 1606(a)).CommentsClose CommentsPermalink





‘(B) ALLOCATION-CommentsClose CommentsPermalink





‘(i) IN GENERAL- For each leased tract used to calculate the allocation of the State, the Secretary shall pay the Regional Corporations, after determining those Native villages within the region of the Regional Corporation which are within 300 miles of the geographical center of the leased tract based on the relative distance of such villages from the leased tract, in accordance with this paragraph.CommentsClose CommentsPermalink





‘(ii) DISTANCES- For each such village, the Secretary shall determine the distance between the point in the village closest to the geographical center of the leased tract and the geographical center of the tract.CommentsClose CommentsPermalink





‘(iii) PAYMENTS- The Secretary shall divide and allocate the qualified outer Continental Shelf revenues derived from the leased tract among the qualifying Regional Corporations in amounts that are inversely proportional to the distances of all of the Native villages within each qualifying region.CommentsClose CommentsPermalink





‘(iv) REVENUES- All revenues received by each Regional Corporation shall be--CommentsClose CommentsPermalink





‘(I) treated by the Regional Corporation as revenue subject to the distribution requirements of section 7(i)(1)(A) of the Alaska Native Claims Settlement Act (43 U.S.C. 1606(i)(1)(A)); andCommentsClose CommentsPermalink





‘(II) divided annually by the Regional Corporation among all 12 Regional Corporations in accordance with section 7(i) of that Act.CommentsClose CommentsPermalink





‘(v) FURTHER DISTRIBUTION- A Regional Corporation receiving revenues under clause (iv)(II) shall further distribute 50 percent of the revenues received in accordance with section 7(j) of the Alaska Native Claims Settlement Act (43 U.S.C. 1606(j)).CommentsClose CommentsPermalink





‘(6) ALLOCATION AMONG INDIAN TRIBES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall pay 7 percent of any allocable share of the State, as determined under this subsection, directly to Indian tribes.CommentsClose CommentsPermalink





‘(B) ALLOCATION-CommentsClose CommentsPermalink





‘(i) IN GENERAL- For each leased tract used to calculate the allocation of the State, the Secretary shall pay Indian tribes based on the relative distance of the headquarters of the Indian tribes from the leased tract, in accordance with this subparagraph.CommentsClose CommentsPermalink





‘(ii) DISTANCES- For each Indian tribe, the Secretary shall determine the distance between the location of the headquarters of the Indian tribe and the geographical center of the tract.CommentsClose CommentsPermalink





‘(iii) PAYMENTS- The Secretary shall divide and allocate the qualified outer Continental Shelf revenues derived from the leased tract among the Indian tribes in amounts that are inversely proportional to the distances described in clause (ii).CommentsClose CommentsPermalink





‘(7) CONSERVATION ROYALTY- After making distributions under paragraphs (2) and (3) and section 31, the Secretary shall, without further appropriation or action, distribute a conservation royalty equal to 6.25 percent of Federal royalty revenues derived from an area leased under this subsection from all areas leased under this subsection for any year, into the land and water conservation fund established under section 2 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-5) to provide financial assistance to States under section 6 of that Act (16 U.S.C. 460l-8).CommentsClose CommentsPermalink





‘(8) DEFICIT REDUCTION- After making distributions in accordance with paragraphs (2) and (3) and in accordance with section 31, the Secretary shall, without further appropriation or action, distribute an amount equal to 6.25 percent of Federal royalty revenues derived from an area leased under this subsection from all areas leased under this subsection for any year, into direct Federal deficit reduction.’.CommentsClose CommentsPermalink