U.S. Congress - Text of H.R.501 as Introduced in House Implementing the Recommendations of the BP Oil Spill Commission Act of 2011
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Donate NowH.R.501 - Implementing the Recommendations of the BP Oil Spill Commission Act of 2011
To provide for the implementation of the recommendations of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, and for other purposes.
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HR 501 IHCommentsClose CommentsPermalink
112th CONGRESSCommentsClose CommentsPermalink
1st SessionCommentsClose CommentsPermalink
H. R. 501CommentsClose CommentsPermalink
To provide for the implementation of the recommendations of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, and for other purposes.CommentsClose CommentsPermalink
IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink
January 26, 2011CommentsClose CommentsPermalink
January 26, 2011CommentsClose CommentsPermalink
Mr. MARKEY (for himself, Mr. RAHALL, Mr. WAXMAN, Mr. GEORGE MILLER of California, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. HOLT, Ms. WOOLSEY, and Mrs. CAPPS) introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on Science, Space, and Technology, Energy and Commerce, Transportation and Infrastructure, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink
A BILLCommentsClose CommentsPermalink
To provide for the implementation of the recommendations of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, and for other purposes.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; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the ‘Implementing the Recommendations of the BP Oil Spill Commission Act of 2011’.CommentsClose CommentsPermalink
(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink
Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink
Sec. 2. Definitions.CommentsClose CommentsPermalink
TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIES
Sec. 101. Bureau of Ocean Energy Management.CommentsClose CommentsPermalink
Sec. 102. Bureau of Safety and Environmental Enforcement.CommentsClose CommentsPermalink
Sec. 103. Office of Natural Resources Revenue.CommentsClose CommentsPermalink
Sec. 104. Ethics.CommentsClose CommentsPermalink
Sec. 105. References.CommentsClose CommentsPermalink
Sec. 106. Abolishment of Minerals Management Service.CommentsClose CommentsPermalink
Sec. 107. Conforming amendment.CommentsClose CommentsPermalink
Sec. 108. Outer Continental Shelf Safety and Environmental Advisory Board.CommentsClose CommentsPermalink
Sec. 109. Limitation on effect on development of ocean renewable energy resource facilities.CommentsClose CommentsPermalink
Sec. 110. Annual report on offshore energy development activities.CommentsClose CommentsPermalink
TITLE II--FEDERAL OIL AND GAS DEVELOPMENT
Subtitle A--Safety, Environmental, and Financial Reform of the Outer Continental Shelf Lands Act
Sec. 201. Short title.CommentsClose CommentsPermalink
Sec. 202. Definitions.CommentsClose CommentsPermalink
Sec. 203. National policy for the Outer Continental Shelf.CommentsClose CommentsPermalink
Sec. 204. Jurisdiction of laws on the Outer Continental Shelf.CommentsClose CommentsPermalink
Sec. 205. Outer Continental Shelf leasing standard.CommentsClose CommentsPermalink
Sec. 206. Chemical Safety Board Investigation.CommentsClose CommentsPermalink
Sec. 207. Leases, easements, and rights-of-way.CommentsClose CommentsPermalink
Sec. 208. Exploration plans.CommentsClose CommentsPermalink
Sec. 209. Outer Continental Shelf leasing program.CommentsClose CommentsPermalink
Sec. 210. Environmental studies.CommentsClose CommentsPermalink
Sec. 211. Safety regulations.CommentsClose CommentsPermalink
Sec. 212. Enforcement of safety and environmental regulations.CommentsClose CommentsPermalink
Sec. 213. Judicial review.CommentsClose CommentsPermalink
Sec. 214. Remedies and penalties.CommentsClose CommentsPermalink
Sec. 215. Uniform planning for Outer Continental Shelf.CommentsClose CommentsPermalink
Sec. 216. Oil and gas information program.CommentsClose CommentsPermalink
Sec. 217. Limitation on royalty-in-kind program.CommentsClose CommentsPermalink
Sec. 218. Restrictions on employment.CommentsClose CommentsPermalink
Sec. 219. Repeal of royalty relief provisions.CommentsClose CommentsPermalink
Sec. 220. Manning and buy- and build-American requirements.CommentsClose CommentsPermalink
Sec. 221. Coordination and consultation with affected state and local governments.CommentsClose CommentsPermalink
Sec. 222. Implementation.CommentsClose CommentsPermalink
Sec. 223. Report on environmental baseline studies.CommentsClose CommentsPermalink
Sec. 224. Cumulative impacts on marine mammal species and stocks and subsistence use.CommentsClose CommentsPermalink
Sec. 225. Savings clause.CommentsClose CommentsPermalink
Subtitle B--Royalty Relief for American Consumers
Sec. 231. Short title.CommentsClose CommentsPermalink
Sec. 232. Eligibility for new leases and the transfer of leases.CommentsClose CommentsPermalink
Sec. 233. Price thresholds for royalty suspension provisions.CommentsClose CommentsPermalink
TITLE III--OIL AND GAS ROYALTY REFORM
Sec. 301. Amendments to definitions.CommentsClose CommentsPermalink
Sec. 302. Compliance reviews.CommentsClose CommentsPermalink
Sec. 303. Clarification of liability for royalty payments.CommentsClose CommentsPermalink
Sec. 304. Required recordkeeping.CommentsClose CommentsPermalink
Sec. 305. Fines and penalties.CommentsClose CommentsPermalink
Sec. 306. Interest on overpayments.CommentsClose CommentsPermalink
Sec. 307. Adjustments and refunds.CommentsClose CommentsPermalink
Sec. 308. Conforming amendment.CommentsClose CommentsPermalink
Sec. 309. Obligation period.CommentsClose CommentsPermalink
Sec. 310. Notice regarding tolling agreements and subpoenas.CommentsClose CommentsPermalink
Sec. 311. Appeals and final agency action.CommentsClose CommentsPermalink
Sec. 312. Assessments.CommentsClose CommentsPermalink
Sec. 313. Collection and production accountability.CommentsClose CommentsPermalink
Sec. 314. Natural gas reporting.CommentsClose CommentsPermalink
Sec. 315. Penalty for late or incorrect reporting of data.CommentsClose CommentsPermalink
Sec. 316. Required recordkeeping.CommentsClose CommentsPermalink
Sec. 317. Shared civil penalties.CommentsClose CommentsPermalink
Sec. 318. Entitlements.CommentsClose CommentsPermalink
Sec. 319. Limitation on royalty in-kind program.CommentsClose CommentsPermalink
Sec. 320. Application of royalty to oil that is saved, removed, sold, or discharged under offshore oil and gas leases.CommentsClose CommentsPermalink
Sec. 321. Disposition of revenue.CommentsClose CommentsPermalink
TITLE IV--GULF OF MEXICO RESTORATION
Sec. 401. Short title.CommentsClose CommentsPermalink
Sec. 402. Gulf coast ecosystem restoration.CommentsClose CommentsPermalink
TITLE V--COORDINATION AND PLANNING
Sec. 501. Regional coordination.CommentsClose CommentsPermalink
Sec. 502. Regional Coordination Councils.CommentsClose CommentsPermalink
Sec. 503. Regional strategic plans.CommentsClose CommentsPermalink
Sec. 504. Regulations and savings clause.CommentsClose CommentsPermalink
Sec. 505. Ocean Resources Conservation and Assistance Fund.CommentsClose CommentsPermalink
Sec. 506. Waiver.CommentsClose CommentsPermalink
TITLE VI--OIL SPILL ACCOUNTABILITY AND ENVIRONMENTAL PROTECTION
Sec. 601. Short title.CommentsClose CommentsPermalink
Sec. 602. Repeal of and adjustments to limitation on liability.CommentsClose CommentsPermalink
Sec. 603. Evidence of financial responsibility for offshore facilities.CommentsClose CommentsPermalink
Sec. 604. Damages to human health.CommentsClose CommentsPermalink
Sec. 605. Clarification of liability for discharges from mobile offshore drilling units.CommentsClose CommentsPermalink
Sec. 606. Standard of review for damage assessment.CommentsClose CommentsPermalink
Sec. 607. Procedures for claims against Fund; Information on claims.CommentsClose CommentsPermalink
Sec. 608. Additional amendments and clarifications to Oil Pollution Act of 1990.CommentsClose CommentsPermalink
Sec. 609. Americanization of offshore operations in the Exclusive Economic Zone.CommentsClose CommentsPermalink
Sec. 610. Safety management systems for mobile offshore drilling units.CommentsClose CommentsPermalink
Sec. 611. Safety standards for mobile offshore drilling units.CommentsClose CommentsPermalink
Sec. 612. Operational control of mobile offshore drilling units.CommentsClose CommentsPermalink
Sec. 613. Single-hull tankers.CommentsClose CommentsPermalink
Sec. 614. Repeal of response plan waiver.CommentsClose CommentsPermalink
Sec. 615. National Contingency Plan.CommentsClose CommentsPermalink
Sec. 616. Tracking Database.CommentsClose CommentsPermalink
Sec. 617. Evaluation and approval of response plans; maximum penalties.CommentsClose CommentsPermalink
Sec. 618. Oil and hazardous substance cleanup technologies.CommentsClose CommentsPermalink
Sec. 619. Implementation of oil spill prevention and response authorities.CommentsClose CommentsPermalink
Sec. 620. Impacts to Indian Tribes and public service damages.CommentsClose CommentsPermalink
Sec. 621. Federal enforcement actions.CommentsClose CommentsPermalink
Sec. 622. Time required before electing to proceed with judicial claim or against the Fund.CommentsClose CommentsPermalink
Sec. 623. Authorized level of Coast Guard personnel.CommentsClose CommentsPermalink
Sec. 624. Clarification of memorandums of understanding.CommentsClose CommentsPermalink
Sec. 625. Build America requirement for offshore facilities.CommentsClose CommentsPermalink
Sec. 626. Oil spill response vessel database.CommentsClose CommentsPermalink
Sec. 627. Offshore sensing and monitoring systems.CommentsClose CommentsPermalink
Sec. 628. Oil and gas exploration and production.CommentsClose CommentsPermalink
Sec. 629. Authorization of appropriations.CommentsClose CommentsPermalink
Sec. 630. Extension of liability to persons having ownership interests in responsible parties.CommentsClose CommentsPermalink
Sec. 631. Clarification of liability under Oil Pollution Act of 1990.CommentsClose CommentsPermalink
Sec. 632. Salvage activities.CommentsClose CommentsPermalink
Sec. 633. Requirement for redundancy in response plans.CommentsClose CommentsPermalink
Sec. 634. Federal Oil Spill Research Program.CommentsClose CommentsPermalink
Sec. 635. Oil Spill Liability Trust Fund.CommentsClose CommentsPermalink
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Repeal of certain taxpayer subsidized royalty relief for the oil and gas industry.CommentsClose CommentsPermalink
Sec. 702. Leasing on Indian lands.CommentsClose CommentsPermalink
Sec. 703. Outer Continental Shelf State boundaries.CommentsClose CommentsPermalink
Sec. 704. Liability for damages to national wildlife refuges.CommentsClose CommentsPermalink
Sec. 705. Strengthening coastal State oil spill planning and response.CommentsClose CommentsPermalink
Sec. 706. Information sharing.CommentsClose CommentsPermalink
Sec. 707. Limitation on use of funds.CommentsClose CommentsPermalink
Sec. 708. Environmental review.CommentsClose CommentsPermalink
Sec. 709. Government Accountability Office evaluation.CommentsClose CommentsPermalink
Sec. 710. Study on relief wells.CommentsClose CommentsPermalink
Sec. 711. Flow rate technical group.CommentsClose CommentsPermalink
TITLE VIII--STUDY OF ACTIONS TO IMPROVE THE ACCURACY OF COLLECTION OF ROYALTIES
Sec. 801. Short title.CommentsClose CommentsPermalink
Sec. 802. Study of actions to improve the accuracy of collection of Federal oil, condensate, and natural gas royalties.CommentsClose CommentsPermalink
Sec. 803. Definitions.CommentsClose CommentsPermalink
TITLE IX--OFFSHORE OIL AND GAS WORKER WHISTLEBLOWER PROTECTION
Sec. 901. Short title.CommentsClose CommentsPermalink
Sec. 902. Whistleblower protections; employee protection from other retaliation.CommentsClose CommentsPermalink
Sec. 903. Definitions.CommentsClose CommentsPermalink
SEC. 2. DEFINITIONS.
For the purposes of this Act:CommentsClose CommentsPermalink
(1) AFFECTED INDIAN TRIBE- The term ‘affected Indian tribe’ means an Indian tribe that has federally reserved rights that are affirmed by treaty, statute, Executive order, Federal court order, or other Federal law in the area at issue.CommentsClose CommentsPermalink
(2) COASTAL STATE- The term ‘coastal State’ has the same meaning given the term ‘coastal state’ in section 304 of the Coastal Zone Management Act of 1972 (
(3) DEPARTMENT- The term ‘Department’ means the Department of the Interior, except as the context indicates otherwise.CommentsClose CommentsPermalink
(4) FUNCTION- The term ‘function’, with respect to a function of an officer, employee, or agent of the Federal Government, or of a Department, agency, office, or other instrumentality of the Federal Government, includes authorities, powers, rights, privileges, immunities, programs, projects, activities, duties, and responsibilities.CommentsClose CommentsPermalink
(5) IMPORTANT ECOLOGICAL AREA- The term ‘important ecological area’ means an area that contributes significantly to local or larger marine ecosystem health or is an especially unique or sensitive marine ecosystem.CommentsClose CommentsPermalink
(6) INDIAN LAND- The term ‘Indian land’ has the meaning given the term in section 502(a) of title V of
(7) INDIAN TRIBE- The term ‘Indian tribe’ has the same meaning given the term ‘Indian tribe’ has in section 4 of the Indian Self-Determination and Education Assistance Act (
(8) MARINE ECOSYSTEM HEALTH- The term ‘marine ecosystem health’ means the ability of an ecosystem in ocean and coastal waters to support and maintain patterns, important processes, and productive, sustainable, and resilient communities of organisms, having a species composition, diversity, and functional organization resulting from the natural habitat of the region, such that it is capable of supporting a variety of activities and providing a complete range of ecological benefits. Such an ecosystem would be characterized by a variety of factors, including--CommentsClose CommentsPermalink
(A) a complete diversity of native species and habitat wherein each native species is able to maintain an abundance, population structure, and distribution supporting its ecological and evolutionary functions, patterns, and processes; andCommentsClose CommentsPermalink
(B) a physical, chemical, geological, and microbial environment that is necessary to achieve such diversity.CommentsClose CommentsPermalink
(9) MINERAL- The term ‘mineral’ has the same meaning that the term ‘minerals’ has in section 2(q) of the Outer Continental Shelf Lands Act (
(10) NONRENEWABLE ENERGY RESOURCE- The term ‘nonrenewable energy resource’ means oil and natural gas.CommentsClose CommentsPermalink
(11) OPERATOR- The term ‘operator’ means--CommentsClose CommentsPermalink
(A) the lessee; orCommentsClose CommentsPermalink
(B) a person designated by the lessee as having control or management of operations on the leased area or a portion thereof, who is--CommentsClose CommentsPermalink
(i) approved by the Secretary, acting through the Bureau of Ocean Energy Management, Regulation and Enforcement; orCommentsClose CommentsPermalink
(ii) the holder of operating rights under an assignment of operating rights that is approved by the Secretary, acting through the Bureau of Ocean Energy Management, Regulation and Enforcement.CommentsClose CommentsPermalink
(12) OUTER CONTINENTAL SHELF- The term ‘Outer Continental Shelf’ has the same meaning given the term ‘outer Continental Shelf’ in the Outer Continental Shelf Lands Act (
(13) REGIONAL OCEAN PARTNERSHIP- The term ‘Regional Ocean Partnership’ means voluntary, collaborative management initiatives developed and entered into by the Governors of two or more coastal States or created by an interstate compact for the purpose of addressing more than one ocean, coastal, or Great Lakes issue and to implement policies and activities identified under special area management plans under the Coastal Zone Management Act of 1972 (
(14) RENEWABLE ENERGY RESOURCE- The term ‘renewable energy resource’ means each of the following:CommentsClose CommentsPermalink
(A) Wind energy.CommentsClose CommentsPermalink
(B) Solar energy.CommentsClose CommentsPermalink
(C) Geothermal energy.CommentsClose CommentsPermalink
(D) Landfill gas.CommentsClose CommentsPermalink
(E) Marine and hydrokinetic renewable energy, as that term is defined in section 632 of the Energy Independence and Security Act of 2007 (
(15) SECRETARIES- The term ‘Secretaries’ means the Secretary of the Interior and the Secretary of Commerce.CommentsClose CommentsPermalink
(16) SECRETARY- The term ‘Secretary’ means the Secretary of the Interior, except as otherwise provided in this Act.CommentsClose CommentsPermalink
(17) TERMS DEFINED IN OTHER LAW- Each of the terms ‘Federal land’, ‘lease’, and ‘mineral leasing law’ has the same meaning given the term under the Federal Oil and Gas Royalty Management Act of 1982 (
TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIESCommentsClose CommentsPermalink
TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIESCommentsClose CommentsPermalink
SEC. 101. BUREAU OF OCEAN ENERGY MANAGEMENT.
(a) Establishment- There is established in the Department of the Interior a Bureau of Ocean Energy Management (referred to in this section as the ‘Bureau’) to be headed by a Director of Energy Management (referred to in this section as the ‘Director’).CommentsClose CommentsPermalink
(b) Director-CommentsClose CommentsPermalink
(1) APPOINTMENT- The Director shall be appointed by the President, by and with the advice and consent of the Senate, on the basis of--CommentsClose CommentsPermalink
(A) professional background, demonstrated competence, and ability; andCommentsClose CommentsPermalink
(B) capacity to--CommentsClose CommentsPermalink
(i) administer the provisions of this Act; andCommentsClose CommentsPermalink
(ii) ensure that the fiduciary duties of the United States Government on behalf of the people of the United States, as they relate to development of nonrenewable and renewable energy and mineral resources, are duly met.CommentsClose CommentsPermalink
(2) COMPENSATION- The Director shall be compensated at the rate provided for Level V of the Executive Schedule under
(c) Duties-CommentsClose CommentsPermalink
(1) IN GENERAL- Except as provided in paragraph (4), the Secretary shall carry out through the Bureau all functions, powers, and duties vested in the Secretary relating to the administration of a comprehensive program of offshore nonrenewable and renewable energy and mineral resources management--CommentsClose CommentsPermalink
(A) on the Outer Continental Shelf, pursuant to the Outer Continental Shelf Lands Act as amended by this Act (
(B) pursuant to this Act and all other applicable Federal laws, including the administration and approval of all instruments and agreements required to ensure orderly, safe, and environmentally responsible offshore nonrenewable and renewable energy and mineral resources development activities.CommentsClose CommentsPermalink
(2) SPECIFIC AUTHORITIES- The Director shall promulgate and implement regulations for the proper issuance of leases for the exploration, development, and production of nonrenewable and renewable energy and mineral resources, and for the issuance of permits under such leases, on the Outer Continental Shelf, including regulations relating to resource identification, access, evaluation, and utilization.CommentsClose CommentsPermalink
(3) INDEPENDENT ENVIRONMENTAL SCIENCE-CommentsClose CommentsPermalink
(A) IN GENERAL- The Secretary shall create an independent office within the Bureau that--CommentsClose CommentsPermalink
(i) shall report to the Director;CommentsClose CommentsPermalink
(ii) shall be programmatically separate and distinct from the leasing and permitting activities of the Bureau; andCommentsClose CommentsPermalink
(iii) shall--CommentsClose CommentsPermalink
(I) carry out the environmental studies program under section 20 of the Outer Continental Shelf Lands Act (
(II) conduct any environmental analyses necessary for the programs administered by the Bureau; andCommentsClose CommentsPermalink
(III) carry out other functions as deemed necessary by the Secretary.CommentsClose CommentsPermalink
(B) CONSULTATION- Studies and analyses carried out by the office created under subparagraph (A) shall be conducted in appropriate and timely consultation with other relevant Federal agencies, including--CommentsClose CommentsPermalink
(i) the Bureau of Safety and Environmental Enforcement;CommentsClose CommentsPermalink
(ii) the United States Fish and Wildlife Service;CommentsClose CommentsPermalink
(iii) the United States Geological Survey; andCommentsClose CommentsPermalink
(iv) the National Oceanic and Atmospheric Administration.CommentsClose CommentsPermalink
(4) LIMITATION- The Secretary shall not carry out through the Bureau any function, power, or duty that is--CommentsClose CommentsPermalink
(A) required by section 102 to be carried out through Bureau of Safety and Environmental Enforcement; orCommentsClose CommentsPermalink
(B) required by section 103 to be carried out through the Office of Natural Resources Revenue.CommentsClose CommentsPermalink
(d) Comprehensive Data and Analyses on Outer Continental Shelf Resources-CommentsClose CommentsPermalink
(1) IN GENERAL-CommentsClose CommentsPermalink
(A) PROGRAMS- The Director shall develop and carry out programs for the collection, evaluation, assembly, analysis, and dissemination of data and information that is relevant to carrying out the duties of the Bureau, including studies under section 20 of the Outer Continental Shelf Lands Act (
(B) USE OF DATA AND INFORMATION- The Director shall, in carrying out functions pursuant to the Outer Continental Lands Act (
(2) INTERAGENCY COOPERATION- In carrying out programs under this subsection, the Bureau shall--CommentsClose CommentsPermalink
(A) utilize the authorities of subsection (g) and (h) of section 18 of the Outer Continental Shelf Lands Act (
(B) cooperate with appropriate offices in the Department and in other Federal agencies;CommentsClose CommentsPermalink
(C) use existing inventories and mapping of marine resources previously undertaken by the Minerals Management Service, mapping undertaken by the United States Geological Survey and the National Oceanographic and Atmospheric Administration, and information provided by the Department of Defense and other Federal and State agencies possessing relevant data; andCommentsClose CommentsPermalink
(D) use any available data regarding renewable energy potential, navigation uses, fisheries, aquaculture uses, recreational uses, habitat, conservation, and military uses of the Outer Continental Shelf.CommentsClose CommentsPermalink
(e) Responsibilities of Land Management Agencies- Nothing in this section shall affect the authorities of the Bureau of Land Management under the Federal Land Policy and Management Act of 1976 (
SEC. 102. BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT.
(a) Establishment- There is established in the Department a Bureau of Safety and Environmental Enforcement (referred to in this section as the ‘Bureau’) to be headed by a Director of Safety and Environmental Enforcement (referred to in this section as the ‘Director’).CommentsClose CommentsPermalink
(b) Director-CommentsClose CommentsPermalink
(1) APPOINTMENT- The Director shall be appointed by the President for a fixed term of five years, by and with the advice and consent of the Senate, on the basis of--CommentsClose CommentsPermalink
(A) professional background, demonstrated competence, and ability; andCommentsClose CommentsPermalink
(B) capacity to administer the provisions of this Act.CommentsClose CommentsPermalink
(2) COMPENSATION- The Director shall be compensated at the rate provided for Level V of the Executive Schedule under
(c) Duties-CommentsClose CommentsPermalink
(1) IN GENERAL- The Secretary shall carry out through the Bureau all functions, powers, and duties vested in the Secretary relating to the administration of safety and environmental enforcement activities related to offshore nonrenewable and renewable energy and mineral resources--CommentsClose CommentsPermalink
(A) on the Outer Continental Shelf pursuant to the Outer Continental Shelf Lands Act (
(B) pursuant to--CommentsClose CommentsPermalink
(i) the Federal Oil and Gas Royalty Management Act of 1982 (
(ii) the Energy Policy Act of 2005 (
(iii) the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 (
(iv) the Forest and Rangeland Renewable Resources Planning Act of 1974 (
(v) the Federal Land Policy and Management Act of 1976 (
(vi) this Act; andCommentsClose CommentsPermalink
(vii) all other applicable Federal laws,CommentsClose CommentsPermalink
including the authority to develop, promulgate, and enforce regulations to ensure the safe and environmentally sound exploration, development, and production of nonrenewable and renewable energy and mineral resources on the Outer Continental Shelf.CommentsClose CommentsPermalink
(d) Authorities- In carrying out the duties under this section, the Secretary’s authorities shall include--CommentsClose CommentsPermalink
(1) performing necessary oversight activities to ensure the proper application of environmental reviews, including those conducted pursuant to the National Environmental Policy Act of 1969 (
(2) suspending or prohibiting, on a temporary basis, any operation or activity, including production on leases held on the Outer Continental Shelf, in accordance with section 5(a)(1) of the Outer Continental Shelf Lands Act (
(3) cancelling any lease, permit, or right-of-way on the Outer Continental Shelf, in accordance with section 5(a)(2) of the Outer Continental Shelf Lands Act (
(4) compelling compliance with applicable worker safety and environmental laws and regulations;CommentsClose CommentsPermalink
(5) requiring comprehensive safety and environmental management programs for persons engaged in activities connected with the exploration, development, and production of energy or mineral resources;CommentsClose CommentsPermalink
(6) developing and implementing regulations for Federal employees to carry out any inspection or investigation to ascertain compliance with applicable regulations, including health, safety, or environmental regulations;CommentsClose CommentsPermalink
(7) collecting, evaluating, assembling, analyzing, and publicly disseminating electronically data and information that is relevant to inspections, failures, or accidents involving equipment and systems used for exploration and production of energy and mineral resources, including human factors associated therewith;CommentsClose CommentsPermalink
(8) implementing the Offshore Technology Research and Risk Assessment Program under section 21 of the Outer Continental Shelf Lands Act (
(9) summoning witnesses and directing the production of evidence;CommentsClose CommentsPermalink
(10) levying fines and penalties and disqualifying operators; andCommentsClose CommentsPermalink
(11) carrying out any safety, response, and removal preparedness functions.CommentsClose CommentsPermalink
(e) Employees-CommentsClose CommentsPermalink
(1) IN GENERAL- The Secretary shall ensure that the inspection force of the Bureau consists of qualified, trained employees who meet qualification requirements and adhere to the highest professional and ethical standards.CommentsClose CommentsPermalink
(2) QUALIFICATIONS- The qualification requirements referred to in paragraph (1)--CommentsClose CommentsPermalink
(A) shall be determined by the Secretary, subject to subparagraph (B); andCommentsClose CommentsPermalink
(B) shall include--CommentsClose CommentsPermalink
(i) three years of practical experience in oil and gas exploration, development, or production; orCommentsClose CommentsPermalink
(ii) a degree in an appropriate field of engineering from an accredited institution of higher learning.CommentsClose CommentsPermalink
(3) ASSIGNMENT- In assigning oil and gas inspectors to the inspection and investigation of individual operations, the Secretary shall give due consideration to the extent possible to their previous experience in the particular type of oil and gas operation in which such inspections are to be made.CommentsClose CommentsPermalink
(4) TRAINING ACADEMY-CommentsClose CommentsPermalink
(A) IN GENERAL- The Secretary shall establish and maintain a National Oil and Gas Health and Safety Academy (referred to in this paragraph as the ‘Academy’) as an agency of the Department of the Interior.CommentsClose CommentsPermalink
(B) FUNCTIONS OF ACADEMY- The Secretary, through the Academy, shall be responsible for--CommentsClose CommentsPermalink
(i) the initial and continued training of both newly hired and experienced oil and gas inspectors in all aspects of health, safety, environmental, and operational inspections;CommentsClose CommentsPermalink
(ii) the training of technical support personnel of the Bureau;CommentsClose CommentsPermalink
(iii) any other training programs for oil and gas inspectors, Bureau personnel, Department personnel, or other persons as the Secretary shall designate; andCommentsClose CommentsPermalink
(iv) certification of the successful completion of training programs for newly hired and experienced oil and gas inspectors.CommentsClose CommentsPermalink
(C) COOPERATIVE AGREEMENTS-CommentsClose CommentsPermalink
(i) IN GENERAL- In performing functions under this paragraph, and subject to clause (ii), the Secretary may enter into cooperative educational and training agreements with educational institutions, related Federal academies, other Federal agencies, State governments, labor organizations, safety training firms, and oil and gas operators and related industries.CommentsClose CommentsPermalink
(ii) TRAINING REQUIREMENT- Such training shall be conducted by the Academy in accordance with curriculum needs and assignment of instructional personnel established by the Secretary.CommentsClose CommentsPermalink
(D) USE OF DEPARTMENTAL PERSONNEL- In performing functions under this subsection, the Secretary shall use, to the extent practicable, the facilities and personnel of the Department of the Interior. The Secretary may appoint or assign to the Academy such officers and employees as the Secretary considers necessary for the performance of the duties and functions of the Academy.CommentsClose CommentsPermalink
(5) ADDITIONAL TRAINING PROGRAMS-CommentsClose CommentsPermalink
(A) IN GENERAL- The Secretary shall work with appropriate educational institutions, operators, and representatives of oil and gas workers to develop and maintain adequate programs with educational institutions and oil and gas operators, that are designed--CommentsClose CommentsPermalink
(i) to enable persons to qualify for positions in the administration of this Act; andCommentsClose CommentsPermalink
(ii) to provide for the continuing education of inspectors or other appropriate Departmental personnel.CommentsClose CommentsPermalink
(B) FINANCIAL AND TECHNICAL ASSISTANCE- The Secretary may provide financial and technical assistance to educational institutions in carrying out this paragraph.CommentsClose CommentsPermalink
(6) ROLE OF OIL OR GAS OPERATORS AND RELATED INDUSTRIES- The Secretary shall ensure that any cooperative agreement or other collaboration with a representative of an oil or gas operator or related industry in relation to a training program established under paragraph (4) or paragraph (5) is limited to consultation regarding curricula and does not extend to the provision of instructional personnel.CommentsClose CommentsPermalink
SEC. 103. OFFICE OF NATURAL RESOURCES REVENUE.
(a) Establishment- There is established in the Department an Office of Natural Resources Revenue (referred to in this section as the ‘Office’) to be headed by a Director of Natural Resources Revenue (referred to in this section as the ‘Director’).CommentsClose CommentsPermalink
(b) Appointment and Compensation-CommentsClose CommentsPermalink
(1) IN GENERAL- The Director shall be appointed by the President, by and with the advice and consent of the Senate, on the basis of--CommentsClose CommentsPermalink
(A) professional competence; andCommentsClose CommentsPermalink
(B) capacity to--CommentsClose CommentsPermalink
(i) administer the provisions of this Act; andCommentsClose CommentsPermalink
(ii) ensure that the fiduciary duties of the United States Government on behalf of the American people, as they relate to development of nonrenewable and renewable energy and mineral resources, are duly met.CommentsClose CommentsPermalink
(2) COMPENSATION- The Director shall be compensated at the rate provided for Level V of the Executive Schedule under
(c) Duties-CommentsClose CommentsPermalink
(1) IN GENERAL- The Secretary shall carry out, through the Office--CommentsClose CommentsPermalink
(A) all functions, powers, and duties vested in the Secretary and relating to the administration of offshore royalty and revenue management functions pursuant to--CommentsClose CommentsPermalink
(i) the Outer Continental Shelf Lands Act (
(ii) this Act and all other applicable Federal laws; andCommentsClose CommentsPermalink
(B) all functions, powers, and duties previously assigned to the Minerals Management Service (including the authority to develop, promulgate, and enforce regulations) regarding offshore--CommentsClose CommentsPermalink
(i) royalty and revenue collection;CommentsClose CommentsPermalink
(ii) royalty and revenue distribution;CommentsClose CommentsPermalink
(iii) auditing and compliance;CommentsClose CommentsPermalink
(iv) investigation and enforcement of royalty and revenue regulations; andCommentsClose CommentsPermalink
(v) asset management for onshore and offshore activities.CommentsClose CommentsPermalink
(d) Oversight- In order to provide transparency and ensure strong oversight over the revenue program, the Secretary shall create within the Office an independent audit and oversight program responsible for monitoring the performance of the Office with respect to the duties and functions under subsection (c), and conducting internal control audits of the operations of the Office.CommentsClose CommentsPermalink
SEC. 104. ETHICS.
(a) Certification- The Secretary shall certify annually that all Department of the Interior officers and employees having regular, direct contact with lessees and operators as a function of their official duties are in full compliance with all Federal employee ethics laws and regulations under the Ethics in Government Act of 1978 (5 U.S.C. App.) and part 2635 of title 5, Code of Federal Regulations, and all guidance issued under subsection (b).CommentsClose CommentsPermalink
(b) Guidance- Not later than 90 days after the date of enactment of this Act, the Secretary shall issue supplementary ethics guidance for the employees for which certification is required under subsection (a). The Secretary shall update the supplementary ethics guidance not less than once every 3 years thereafter.CommentsClose CommentsPermalink
SEC. 105. REFERENCES.
(a) Bureau of Ocean Energy Management, Regulation and Enforcement- Any reference in any law, rule, regulation, directive, instruction, certificate, or other official document, in force immediately before the enactment of this Act--CommentsClose CommentsPermalink
(1) to the Minerals Management Service that pertains to any of the duties and authorities referred to in section 101 is deemed to refer and apply to the Bureau of Ocean Energy Management established by section 101;CommentsClose CommentsPermalink
(2) to the Director of the Minerals Management Service that pertains to any of the duties and authorities referred to in section 101 is deemed to refer and apply to the Director of the Bureau of Ocean Energy Management; andCommentsClose CommentsPermalink
(3) to any other position in the Minerals Management Service that pertains to any of the duties and authorities referred to in section 101 is deemed to refer and apply to that same or equivalent position in the Bureau of Ocean Energy Management.CommentsClose CommentsPermalink
(b) Bureau of Safety and Environmental Enforcement- Any reference in any law, rule, regulation, directive, instruction, certificate, or other official document in force immediately before the enactment of this Act--CommentsClose CommentsPermalink
(1) to the Minerals Management Service that pertains to any of the duties and authorities referred to in section 102 is deemed to refer and apply to the Bureau of Safety and Environmental Enforcement established by section 102;CommentsClose CommentsPermalink
(2) to the Director of the Minerals Management Service that pertains to any of the duties and authorities referred to in section 102 is deemed to refer and apply to the Director of the Bureau of Safety and Environmental Enforcement; andCommentsClose CommentsPermalink
(3) to any other position in the Minerals Management Service that pertains to any of the duties and authorities referred to in section 102 is deemed to refer and apply to that same or equivalent position in the Bureau of Safety and Environmental Enforcement.CommentsClose CommentsPermalink
(c) Office of Natural Resources Revenue- Any reference in any law, rule, regulation, directive, or instruction, or certificate or other official document, in force immediately prior to enactment--CommentsClose CommentsPermalink
(1) to the Minerals Management Service that pertains to any of the duties and authorities referred to in section 103 is deemed to refer and apply to the Office of Natural Resources Revenue established by section 103;CommentsClose CommentsPermalink
(2) to the Director of the Minerals Management Service that pertains to any of the duties and authorities referred to in section 103 is deemed to refer and apply to the Director of Natural Resources Revenue; andCommentsClose CommentsPermalink
(3) to any other position in the Minerals Management Service that pertains to any of the duties and authorities referred to in section 103 is deemed to refer and apply to that same or equivalent position in the Office of Natural Resources Revenue.CommentsClose CommentsPermalink
SEC. 106. ABOLISHMENT OF MINERALS MANAGEMENT SERVICE.
(a) Abolishment- The Minerals Management Service (in this section referred to as the ‘Service’) is abolished.CommentsClose CommentsPermalink
(b) Completed Administrative Actions-CommentsClose CommentsPermalink
(1) IN GENERAL- Completed administrative actions of the Service shall not be affected by the enactment of this Act, but shall continue in effect according to their terms until amended, modified, superseded, terminated, set aside, or revoked in accordance with law by an officer of the United States or a court of competent jurisdiction, or by operation of law.CommentsClose CommentsPermalink
(2) COMPLETED ADMINISTRATIVE ACTION DEFINED- For purposes of paragraph (1), the term ‘completed administrative action’ includes orders, determinations, rules, regulations, personnel actions, permits, agreements, grants, contracts, certificates, licenses, registrations, and privileges.CommentsClose CommentsPermalink
(c) Pending Proceedings- Subject to the authority of the Secretary of the Interior and the officers of the Department of the Interior under this Act--CommentsClose CommentsPermalink
(1) pending proceedings in the Service, including notices of proposed rulemaking, and applications for licenses, permits, certificates, grants, and financial assistance, shall continue, notwithstanding the enactment of this Act or the vesting of functions of the Service in another agency, unless discontinued or modified under the same terms and conditions and to the same extent that such discontinuance or modification could have occurred if this Act had not been enacted; andCommentsClose CommentsPermalink
(2) orders issued in such proceedings, and appeals therefrom, and payments made pursuant to such orders, shall issue in the same manner and on the same terms as if this Act had not been enacted, and any such orders shall continue in effect until amended, modified, superseded, terminated, set aside, or revoked by an officer of the United States or a court of competent jurisdiction, or by operation of law.CommentsClose CommentsPermalink
(d) Pending Civil Actions- Subject to the authority of the Secretary of the Interior or any officer of the Department of the Interior under this Act, pending civil actions shall continue notwithstanding the enactment of this Act, and in such civil actions, proceedings shall be had, appeals taken, and judgments rendered and enforced in the same manner and with the same effect as if such enactment had not occurred.CommentsClose CommentsPermalink
(e) References- References relating to the Service in statutes, Executive orders, rules, regulations, directives, or delegations of authority that precede the effective date of this Act are deemed to refer, as appropriate, to the Department, to its officers, employees, or agents, or to its corresponding organizational units or functions. Statutory reporting requirements that applied in relation to the Service immediately before the effective date of this Act shall continue to apply.CommentsClose CommentsPermalink
SEC. 107. CONFORMING AMENDMENT.
‘Director, Bureau of Ocean Energy Management, Department of the Interior.CommentsClose CommentsPermalink
‘Director, Bureau of Safety and Environmental Enforcement, Department of the Interior.CommentsClose CommentsPermalink
‘Director, Office of Natural Resources Revenue, Department of the Interior.’.CommentsClose CommentsPermalink
SEC. 108. OUTER CONTINENTAL SHELF SAFETY AND ENVIRONMENTAL ADVISORY BOARD.
(a) Establishment- The Secretary shall establish, under the Federal Advisory Committee Act, an Outer Continental Shelf Safety and Environmental Advisory Board (referred to in this section as the ‘Board’), to provide the Secretary and the Directors of the bureaus established by this title with independent scientific and technical advice on safe and environmentally compliant nonrenewable and renewable energy and mineral resource exploration, development, and production activities.CommentsClose CommentsPermalink
(b) Membership-CommentsClose CommentsPermalink
(1) SIZE- The Board shall consist of not more than 12 members, chosen to reflect a range of expertise in scientific, engineering, management, environmental, and other disciplines related to safe and environmentally compliant renewable and nonrenewable energy and mineral resource exploration, development, and production activities. The Secretary shall consult with the National Academy of Sciences and the National Academy of Engineering to identify potential candidates for the Board.CommentsClose CommentsPermalink
(2) TERM- The Secretary shall appoint Board members to staggered terms of not more than 4 years, and shall not appoint a member for more than 2 consecutive terms.CommentsClose CommentsPermalink
(3) BALANCE- In appointing members to the Board, the Secretary shall ensure a balanced representation of industry- and nonindustry-related interests.CommentsClose CommentsPermalink
(c) Chair- The Secretary shall appoint the Chair for the Board.CommentsClose CommentsPermalink
(d) Meetings- The Board shall meet not less than 3 times per year and, at least once per year, shall host a public forum to review and assess the overall safety and environmental performance of Outer Continental Shelf nonrenewable and renewable energy and mineral resource activities.CommentsClose CommentsPermalink
(e) Offshore Drilling Safety Assessments and Recommendations- As part of its duties under this section, the Board shall, by not later than 180 days after the date of enactment of this section and every 5 years thereafter, submit to the Secretary a report that--CommentsClose CommentsPermalink
(1) assesses offshore oil and gas well control technologies, practices, voluntary standards, and regulations in the United States and elsewhere;CommentsClose CommentsPermalink
(2) assesses offshore oil and gas well control technologies, practices, voluntary standards, regulations, and technologies and practices used to estimate the flow rate of hydrocarbons in the United States and elsewhere; andCommentsClose CommentsPermalink
(3) as appropriate, recommends modifications to the regulations issued under this Act to ensure adequate protection of safety and the environment.CommentsClose CommentsPermalink
(f) Reports- Reports of the Board shall be submitted to the Congress and made available to the public in electronically accessible form.CommentsClose CommentsPermalink
(g) Travel Expenses- Members of the Board, other than full-time employees of the Federal Government, while attending meeting of the Board or while otherwise serving at the request of the Secretary or the Director while serving away from their homes or regular places of business, may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by
SEC. 109. LIMITATION ON EFFECT ON DEVELOPMENT OF OCEAN RENEWABLE ENERGY RESOURCE FACILITIES.
Nothing in this title shall delay development of ocean renewable energy resource facilities including--CommentsClose CommentsPermalink
(1) promotion of offshore wind development;CommentsClose CommentsPermalink
(2) planning, leasing, licensing, and fee and royalty collection for such development of ocean renewable energy resource facilities; andCommentsClose CommentsPermalink
(3) developing and administering an efficient leasing and licensing process for ocean renewable energy resource facilities.CommentsClose CommentsPermalink
SEC. 110. ANNUAL REPORT ON OFFSHORE ENERGY DEVELOPMENT ACTIVITIES.
The Secretary shall annually report to Congress on offshore energy development activities. Each report shall detail--CommentsClose CommentsPermalink
(1) the Department’s progress in improving its safety regulations and strengthening environmental review; andCommentsClose CommentsPermalink
(2) steps taken by industry to address safety and environmental concerns related to offshore drilling.CommentsClose CommentsPermalink
TITLE II--FEDERAL OIL AND GAS DEVELOPMENTCommentsClose CommentsPermalink
TITLE II--FEDERAL OIL AND GAS DEVELOPMENTCommentsClose CommentsPermalink
Subtitle A--Safety, Environmental, and Financial Reform of the Outer Continental Shelf Lands ActCommentsClose CommentsPermalink
Subtitle A--Safety, Environmental, and Financial Reform of the Outer Continental Shelf Lands ActCommentsClose CommentsPermalink
SEC. 201. SHORT TITLE.
This subtitle may be cited as the ‘Outer Continental Shelf Lands Act Amendments of 2011’.CommentsClose CommentsPermalink
SEC. 202. DEFINITIONS.
Section 2 of the Outer Continental Shelf Lands Act (
‘(r) The term ‘safety case’ means a body of evidence that provides a basis for determining whether a system is adequately safe for a given application in a given operating environment.’.CommentsClose CommentsPermalink
SEC. 203. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.
Section 3 of the Outer Continental Shelf Lands Act (
(1) by striking paragraph (3) and inserting the following:CommentsClose CommentsPermalink
‘(3) the outer Continental Shelf is a vital national resource reserve held by the Federal Government for the public, that should be managed in a manner that--CommentsClose CommentsPermalink
‘(A) recognizes the need of the United States for domestic sources of energy, food, minerals, and other resources;CommentsClose CommentsPermalink
‘(B) minimizes the potential impacts of development of those resources on the marine and coastal environment and on safety; andCommentsClose CommentsPermalink
‘(C) acknowledges the long-term economic value to the United States of the balanced and orderly management of those resources that safeguards the environment and respects the multiple values and uses of the outer Continental Shelf;’;CommentsClose CommentsPermalink
(2) in paragraph (4), by striking the period at the end and inserting a semicolon;CommentsClose CommentsPermalink
(3) in paragraph (5), by striking ‘should be’ and inserting ‘shall be’, and striking ‘; and’ and inserting a semicolon;CommentsClose CommentsPermalink
(4) by redesignating paragraph (6) as paragraph (7);CommentsClose CommentsPermalink
(5) by inserting after paragraph (5) the following:CommentsClose CommentsPermalink
‘(6) exploration, development, and production of energy and minerals on the outer Continental Shelf should be allowed only when those activities can be accomplished in a manner that minimizes--CommentsClose CommentsPermalink
‘(A) harmful impacts to life (including fish and other aquatic life) and health;CommentsClose CommentsPermalink
‘(B) damage to the marine, coastal, and human environments and to property; andCommentsClose CommentsPermalink
‘(C) harm to other users of the waters, seabed, or subsoil; and’; andCommentsClose CommentsPermalink
(6) in paragraph (7) (as so redesignated), by--CommentsClose CommentsPermalink
(A) striking ‘should be’ and inserting ‘shall be’;CommentsClose CommentsPermalink
(B) inserting ‘best available’ after ‘using’; andCommentsClose CommentsPermalink
(C) striking ‘or minimize’.CommentsClose CommentsPermalink
SEC. 204. JURISDICTION OF LAWS ON THE OUTER CONTINENTAL SHELF.
Section 4(a)(1) of the Outer Continental Shelf Lands Act (
(1) inserting ‘or producing or supporting production of energy from sources other than oil and gas’ after ‘therefrom’;CommentsClose CommentsPermalink
(2) inserting ‘or transmitting such energy’ after ‘transporting such resources’; andCommentsClose CommentsPermalink
(3) inserting ‘and other energy’ after ‘That mineral’.CommentsClose CommentsPermalink
SEC. 205. OUTER CONTINENTAL SHELF LEASING STANDARD.
(a) In General- Section 5 of the Outer Continental Shelf Lands Act (
(1) in subsection (a), by striking ‘The Secretary may at any time’ and inserting ‘The Secretary shall’;CommentsClose CommentsPermalink
(2) in the second sentence of subsection (a), by adding after ‘provide for’ the following: ‘operational safety, the protection of the marine and coastal environment, and’;CommentsClose CommentsPermalink
(3) in subsection (a), by inserting ‘and the Secretary of Commerce with respect to matters that may affect the marine and coastal environment’ after ‘which may affect competition’;CommentsClose CommentsPermalink
(4) in clause (ii) of subsection (a)(2)(A), by striking ‘a reasonable period of time’ and inserting ‘30 days’;CommentsClose CommentsPermalink
(5) in subsection (a)(7), by inserting ‘in a manner that minimizes harmful impacts to the marine and coastal environment’ after ‘lease area’;CommentsClose CommentsPermalink
(6) in subsection (a), by striking ‘and’ after the semicolon at the end of paragraph (7), redesignating paragraph (8) as paragraph (13), and inserting after paragraph (7) the following:CommentsClose CommentsPermalink
‘(8) for independent third-party certification requirements of safety systems related to well control, such as blowout preventers;CommentsClose CommentsPermalink
‘(9) for performance requirements for blowout preventers, including quantitative risk assessment standards, subsea testing, and secondary activation methods;CommentsClose CommentsPermalink
‘(10) for independent third-party certification requirements of well casing and cementing programs and procedures;CommentsClose CommentsPermalink
‘(11) for the establishment of mandatory safety and environmental management systems by operators on the outer Continental Shelf;CommentsClose CommentsPermalink
‘(12) for procedures and technologies to be used during drilling operations to minimize the risk of ignition and explosion of hydrocarbons;’;CommentsClose CommentsPermalink
(7) in subsection (a), by striking the period at the end of paragraph (13), as so redesignated, and inserting ‘; and’, and by adding at the end the following:CommentsClose CommentsPermalink
‘(14) ensuring compliance with other applicable environmental and natural resource conservation laws, including the response plan requirements of section 311(j) of the Federal Water Pollution Control Act (
33 U.S.C. 1321(j) ).’; andCommentsClose CommentsPermalink
(8) by adding at the end the following new subsections:CommentsClose CommentsPermalink
‘(k) Documents Incorporated by Reference- Any documents incorporated by reference in regulations promulgated by the Secretary pursuant to this Act shall be made available to the public, free of charge, on a website maintained by the Secretary.CommentsClose CommentsPermalink
‘(l) Regulatory Standards for Blowout Preventers, Well Design, and Cementing-CommentsClose CommentsPermalink
‘(1) IN GENERAL- In promulgating regulations under this Act related to blowout preventers, well design, and cementing, the Secretary shall ensure that such regulations include the minimum standards included in paragraphs (2), (3), and (4), unless, after notice and an opportunity for public comment, the Secretary determines that a standard required under this subsection would be less effective in ensuring safe operations than an available alternative technology or practice. Such regulations shall require independent third-party certification, pursuant to paragraph (5), of blowout preventers, well design, and cementing programs and procedures prior to the commencement of drilling operations. Such regulations shall also require recertification by an independent third-party certifier, pursuant to paragraph (5), of a blowout preventer upon any material modification to the blowout preventer or well design and of a well design upon any material modification to the well design.CommentsClose CommentsPermalink
‘(2) BLOWOUT PREVENTERS- Subject to paragraph (1), regulations issued under this Act for blowout preventers shall include at a minimum the following requirements:CommentsClose CommentsPermalink
‘(A) Two sets of blind shear rams appropriately spaced to prevent blowout preventer failure if a drill pipe joint or drill tool is across one set of blind shear rams during a situation that threatens loss of well control.CommentsClose CommentsPermalink
‘(B) Redundant emergency backup control systems capable of activating the relevant components of a blowout preventer, including when the communications link or other critical links between the drilling rig and the blowout preventer are destroyed or inoperable.CommentsClose CommentsPermalink
‘(C) Regular testing of the emergency backup control systems, including testing during deployment of the blowout preventer.CommentsClose CommentsPermalink
‘(D) As appropriate, remotely operated vehicle intervention capabilities for secondary control of all subsea blowout preventer functions, including adequate hydraulic capacity to activate blind shear rams, casing shear rams, and other critical blowout preventer components.CommentsClose CommentsPermalink
‘(3) WELL DESIGN- Subject to paragraph (1), regulations issued under this Act for well design standards shall include at a minimum the following requirements:CommentsClose CommentsPermalink
‘(A) In connection with the installation of the final casing string, the installation of at least two independent, tested mechanical barriers, in addition to a cement barrier, across each flow path between hydrocarbon bearing formations and the blowout preventer.CommentsClose CommentsPermalink
‘(B) That wells shall be designed so that a failure of one barrier does not significantly increase the likelihood of another barrier’s failure.CommentsClose CommentsPermalink
‘(C) That the casing design is appropriate for the purpose for which it is intended under reasonably expected wellbore conditions.CommentsClose CommentsPermalink
‘(D) The installation and verification with a pressure test of a lockdown device at the time the casing is installed in the wellhead.CommentsClose CommentsPermalink
‘(4) CEMENTING- Subject to paragraph (1), regulations issued under this Act for cementing standards shall include at a minimum the following requirements:CommentsClose CommentsPermalink
‘(A) Adequate centralization of the casing to ensure proper distribution of cement.CommentsClose CommentsPermalink
‘(B) A full circulation of drilling fluids prior to cementing.CommentsClose CommentsPermalink
‘(C) The use of an adequate volume of cement to prevent any unintended flow of hydrocarbons between any hydrocarbon-bearing formation zone and the wellhead.CommentsClose CommentsPermalink
‘(D) Cement bond logs for all cementing jobs intended to provide a barrier to hydrocarbon flow.CommentsClose CommentsPermalink
‘(E) Cement bond logs or such other integrity tests as the Secretary may prescribe for cement jobs other than those identified in subparagraph (D).CommentsClose CommentsPermalink
‘(5) INDEPENDENT THIRD-PARTY CERTIFICATION- The Secretary shall issue regulations that establish appropriate standards for the approval of independent third-party certifiers capable of exercising certification functions for blowout preventers, well design, and cementing. For any certification required for regulations related to blowout preventers, well design, or cementing, the operator shall use a qualified independent third-party certifier chosen by the Secretary. The costs of any certification shall be borne by the operator. The regulations issued under this subsection shall require the following:CommentsClose CommentsPermalink
‘(A) Prior to the commencement of drilling through a blowout preventer at any covered well, the operator shall obtain a written and signed certification from an independent third party approved and assigned by the appropriate Federal official pursuant to subsection (a) that the third party--CommentsClose CommentsPermalink
‘(i) conducted or oversaw a detailed physical inspection, design review, system integration test, and function and pressure testing of the blowout preventer; andCommentsClose CommentsPermalink
‘(ii) in the third-party certifier’s best professional judgment, determined that--CommentsClose CommentsPermalink
‘(I) the blowout preventer is designed for the specific drilling conditions, equipment, and location where it will be installed and for the specific well design;CommentsClose CommentsPermalink
‘(II) the blowout preventer and all of its components and control systems will operate effectively and as designed when installed;CommentsClose CommentsPermalink
‘(III) each blind shear ram or casing shear ram will function effectively under likely emergency scenarios and is capable of shearing the drill pipe or casing, as applicable, that will be used when installed;CommentsClose CommentsPermalink
‘(IV) emergency control systems will function under the conditions in which they will be installed; andCommentsClose CommentsPermalink
‘(V) the blowout preventer has not been compromised or damaged from any previous service.CommentsClose CommentsPermalink
‘(B) Not less than once every 180 days after commencement of drilling through a blowout preventer at any covered well, or upon implementation of any material modification to the blowout preventer or well design at such a well, the operator shall obtain a written and signed recertification from an independent third party approved and assigned by the appropriate Federal official pursuant to subsection (a) that the requirements in clause (ii) of subparagraph (A) continue to be met with the systems as deployed. Such recertification determinations shall consider the results of tests required by the appropriate Federal official, including testing of the emergency control systems of a blowout preventer.CommentsClose CommentsPermalink
‘(C) Certifications under subparagraph (A), recertifications under subparagraph (A), and results of and data from all tests conducted pursuant to this subsection shall be promptly submitted to the appropriate Federal official and made publicly available.CommentsClose CommentsPermalink
‘(6) APPLICATION TO INSHORE WATERS; STATE IMPLEMENTATION-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Requirements established under this subsection shall apply, as provided in subparagraph (B), to offshore drilling operations that take place on lands that are landward of the outer Continental Shelf and seaward of the line of mean high tide, and that the Secretary determines, based on criteria established by rule, could, in the event of a blowout, lead to extensive and widespread harm to safety or the environment.CommentsClose CommentsPermalink
‘(B) SUBMISSION OF STATE REGULATORY REGIME- Any State may submit to the Secretary a plan demonstrating that the State’s regulatory regime for wells identified in subparagraph (A) establishes requirements for such wells that are comparable to, or alternative requirements providing an equal or greater level of safety than, those established under this section for wells on the outer Continental Shelf. The Secretary shall promptly determine, after notice and an opportunity for public comment, whether a State’s regulatory regime meets the standard set forth in the preceding sentence. If the Secretary determines that a State’s regulatory regime does not meet such standard, the Secretary shall identify the deficiencies that are the basis for such determination and provide a reasonable period of time for the State to remedy the deficiencies. If the State does not do so within such reasonable period of time, the Secretary shall apply the requirements established under this section to offshore drilling operations described in subparagraph (A) that are located in such State, until such time as the Secretary determines that the deficiencies have been remedied.CommentsClose CommentsPermalink
‘(m) Rulemaking Dockets-CommentsClose CommentsPermalink
‘(1) ESTABLISHMENT- Not later than the date of proposal of any regulation under this Act, the Secretary shall establish a publicly available rulemaking docket for such regulation.CommentsClose CommentsPermalink
‘(2) DOCUMENTS TO BE INCLUDED- The Secretary shall include in the docket--CommentsClose CommentsPermalink
‘(A) all written comments and documentary information on the proposed rule received from any person in the comment period for the rulemaking, promptly upon receipt by the Secretary;CommentsClose CommentsPermalink
‘(B) the transcript of each public hearing, if any, on the proposed rule, promptly upon receipt from the person who transcribed such hearing; andCommentsClose CommentsPermalink
‘(C) all documents that become available after the proposed rule is published and that the Secretary determines are of central relevance to the rulemaking, by as soon as possible after their availability.CommentsClose CommentsPermalink
‘(3) PROPOSED AND DRAFT FINAL RULE AND ASSOCIATED MATERIAL- The Secretary shall include in the docket--CommentsClose CommentsPermalink
‘(A) each draft proposed rule submitted by the Secretary to the Office of Management and Budget for any interagency review process prior to proposal of such rule, all documents accompanying such draft, all written comments thereon by other agencies, and all written responses to such written comments by the Secretary, by no later than the date of proposal of the rule; andCommentsClose CommentsPermalink
‘(B) each draft final rule submitted by the Secretary for such review process before issuance of the final rule, all such written comments thereon, all documents accompanying such draft, and all written responses thereto, by no later than the date of issuance of the final rule.’.CommentsClose CommentsPermalink
(b) Conforming Amendment- Subsection (g) of section 25 of the Outer Continental Shelf Lands Act (
SEC. 206. CHEMICAL SAFETY BOARD INVESTIGATION.
Section 112(r)(6) of the Clean Air Act (
‘(T) AGREEMENT- Not later than 30 days after the date of enactment of this subparagraph, the Chemical Safety and Hazard Investigation Board, the Coast Guard, and the Department of the Interior shall enter into an agreement in order to facilitate the Board’s investigation of the facts, circumstances, and causes of an accidental fire, explosion, or release involving an offshore oil or gas exploration or production facility (regardless of whether there is a resulting marine oil spill). Such agreement shall provide the Board with the following:CommentsClose CommentsPermalink
‘(i) Unrestricted access to any personnel, records, witness statements, recorded witness interviews, and physical or documentary evidence related to an offshore oil or gas exploration or production facility under investigation collected or possessed by the Coast Guard or the Department of the Interior.CommentsClose CommentsPermalink
‘(ii) The ability to conduct recorded interviews of all agency personnel and contractors and the right to obtain records related to Federal regulatory, inspection, enforcement, and safety programs for offshore oil or gas exploration and production.CommentsClose CommentsPermalink
‘(iii) The right to participate equally in planning and executing any testing of relevant items of physical evidence related to the cause of the accident.CommentsClose CommentsPermalink
‘(iv) Such support and facilities as may be necessary for the Board’s investigation, including transportation to the accident site, coastal waters and affected areas, and other offshore oil or gas exploration and production facilities without cost to the Board.CommentsClose CommentsPermalink
‘(U) RECOMMENDATIONS- Based on an investigation of an accidental fire, explosion, or release involving an offshore oil or gas exploration or production facility, the Board shall make recommendations with respect to preventing subsequent accidental fires, explosions, or releases to the Secretary of the Interior and the Commandant of the Coast Guard. The Secretary of the Interior and the Commandant of the Coast Guard shall respond formally and in writing to any recommendation of the Board within 90 days of the receipt of such recommendation.’.CommentsClose CommentsPermalink
SEC. 207. LEASES, EASEMENTS, AND RIGHTS-OF-WAY.
(a) Financial Assurance and Fiscal Responsibility- Section 8 of the Outer Continental Shelf Lands Act (
‘(q) Review of Bond and Surety Amounts- Not later than May 1, 2011, and every 5 years thereafter, the Secretary shall review the minimum financial responsibility requirements for leases issued under this section and shall ensure that any bonds or surety required are adequate to comply with the requirements of this Act or the Oil Pollution Act of 1990 (
33 U.S.C. 2701 et seq.).CommentsClose CommentsPermalink‘(r) Periodic Fiscal Review and Report-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Not later than 1 year after the date of enactment of this subsection and every 3 years thereafter, the Secretary shall carry out a review and prepare a report setting forth--CommentsClose CommentsPermalink
‘(A)(i) the royalty and rental rates included in new offshore oil and gas leases; andCommentsClose CommentsPermalink
‘(ii) the rationale for the rates;CommentsClose CommentsPermalink
‘(B) whether, in the view of the Secretary, the royalty and rental rates described in subparagraph (A) will yield a fair return to the public while promoting the production of oil and gas resources in a timely manner;CommentsClose CommentsPermalink
‘(C)(i) the minimum bond or surety amounts required pursuant to offshore oil and gas leases; andCommentsClose CommentsPermalink
‘(ii) the rationale for the minimum amounts;CommentsClose CommentsPermalink
‘(D) whether the bond or surety amounts described in subparagraph (C) are adequate to comply with subsection (q); andCommentsClose CommentsPermalink
‘(E) whether the Secretary intends to modify the royalty or rental rates, or bond or surety amounts, based on the review.CommentsClose CommentsPermalink
‘(2) PUBLIC PARTICIPATION- In carrying out a review and preparing a report under paragraph (1), the Secretary shall provide to the public an opportunity to participate.CommentsClose CommentsPermalink
‘(3) REPORT DEADLINE- Not later than 30 days after the date on which the Secretary completes a report under paragraph (1), the Secretary shall transmit copies of the report to--CommentsClose CommentsPermalink
‘(A) the Committee on Energy and Natural Resources of the Senate; andCommentsClose CommentsPermalink
‘(B) the Committee on Natural Resources of the House of Representatives.CommentsClose CommentsPermalink
‘(s) Comparative Review of Fiscal System-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Not later than 2 years after the date of enactment of this subsection and every 5 years thereafter, the Secretary shall carry out a comprehensive review of all components of the Federal offshore oil and gas fiscal system, including requirements for--CommentsClose CommentsPermalink
‘(A) bonus bids;CommentsClose CommentsPermalink
‘(B) rental rates; andCommentsClose CommentsPermalink
‘(C) royalties.CommentsClose CommentsPermalink
‘(2) REQUIREMENTS-CommentsClose CommentsPermalink
‘(A) CONTENTS; SCOPE- A review under paragraph (1) shall include--CommentsClose CommentsPermalink
‘(i) the information and analyses necessary to compare the offshore bonus bids, rents, and royalties of the Federal Government to the offshore bonus bids, rents, and royalties of other resource owners, including States and foreign countries; andCommentsClose CommentsPermalink
‘(ii) an assessment of the overall offshore oil and gas fiscal system in the United States, as compared to foreign countries.CommentsClose CommentsPermalink
‘(B) INDEPENDENT ADVISORY COMMITTEE- In carrying out a review under paragraph (1), the Secretary shall convene and seek the advice of an independent advisory committee comprised of oil and gas and fiscal experts from States, Indian tribes, academia, the energy industry, and appropriate nongovernmental organizations.CommentsClose CommentsPermalink
‘(3) REPORT-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The Secretary shall prepare a report that contains--CommentsClose CommentsPermalink
‘(i) the contents and results of the review carried out under paragraph (1) for the period covered by the report; andCommentsClose CommentsPermalink
‘(ii) any recommendations of the Secretary based on the contents and results of the review.CommentsClose CommentsPermalink
‘(B) REPORT DEADLINE- Not later than 30 days after the date on which the Secretary completes a report under paragraph (1), the Secretary shall transmit copies of the report to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate.’.CommentsClose CommentsPermalink
(b) Environmental Diligence- Section 8 of the Outer Continental Shelf Lands Act (
‘(d) Requirement for Certification of Responsible Stewardship-CommentsClose CommentsPermalink
‘(1) CERTIFICATION REQUIREMENT- No bid or request for a lease, easement, or right-of-way under this section, or for a permit to drill under section 11(d), may be submitted by any person unless the person certifies to the Secretary that the person (including any related person and any predecessor of such person or related person) meets each of the following requirements:CommentsClose CommentsPermalink
‘(A) The person is meeting due diligence, safety, and environmental requirements on other leases, easements, and rights-of-way.CommentsClose CommentsPermalink
‘(B) In the case of a person that is a responsible party for a vessel or a facility from which oil is discharged, for purposes of section 1002 of the Oil Pollution Act of 1990 (
33 U.S.C. 2702 ), the person has met all of its obligations under that Act to provide compensation for covered removal costs and damages.CommentsClose CommentsPermalink‘(C) In the 7-year period ending on the date of certification, the person, in connection with activities in the oil industry (including exploration, development, production, transportation by pipeline, and refining)--CommentsClose CommentsPermalink
‘(i) was not found to have committed willful or repeated violations under the Occupational Safety and Health Act of 1970 (
29 U.S.C. 651 et seq.) (including State plans approved under section 18(c) of such Act (29 U.S.C. 667(c) )) at a rate that is higher than five times the rate determined by the Secretary to be the oil industry average for such violations for such period;CommentsClose CommentsPermalink‘(ii) was not convicted of a criminal violation for death or serious bodily injury;CommentsClose CommentsPermalink
‘(iii) did not have more than 10 fatalities at its exploration, development, and production facilities and refineries as a result of violations of Federal or State health, safety, or environmental laws;CommentsClose CommentsPermalink
‘(iv) was not assessed, did not enter into an agreement to pay, and was not otherwise required to pay, civil penalties and criminal fines for violations the person was found to have committed under the Federal Water Pollution Control Act (
33 U.S.C. 1251 et seq.) (including State programs approved under sections 402 and 404 of such Act (33 U.S.C. 1342 and 1344)) in a total amount that is equal to more than $10,000,000; andCommentsClose CommentsPermalink‘(v) was not assessed, did not enter into an agreement to pay, and was not otherwise required to pay, civil penalties and criminal fines for violations the person was found to have committed under the Clean Air Act (
42 U.S.C. 7401 et seq.) (including State plans approved under section 110 of such Act (42 U.S.C. 7410 )) in a total amount that is equal to more than $10,000,000.CommentsClose CommentsPermalink‘(2) ENFORCEMENT- If the Secretary determines that a certification made under paragraph (1) is false, the Secretary shall cancel any lease, easement, or right of way and shall revoke any permit with respect to which the certification was required under such paragraph.CommentsClose CommentsPermalink
‘(3) DEFINITION OF RELATED PERSON- For purposes of this subsection, the term ‘related person’ includes a parent, subsidiary, affiliate, member of the same controlled group, contractor, subcontractor, a person holding a controlling interest or in which a controlling interest is held, and a person with substantially the same board members, senior officers, or investors.’.CommentsClose CommentsPermalink
(c) Alternative Energy Development- Section 8(p) of the Outer Continental Shelf Lands Act (
(1) in paragraph (1)--CommentsClose CommentsPermalink
(A) in the matter preceding subparagraph (A), by inserting ‘or’ after ‘1501 et seq.),’, and by striking ‘or other applicable law,’; andCommentsClose CommentsPermalink
(B) by amending subparagraph (D) to read as follows:CommentsClose CommentsPermalink
‘(D) use, for energy-related purposes, facilities currently or previously used for activities authorized under this Act, except that any oil and gas energy-related uses shall not be authorized in areas in which oil and gas preleasing, leasing, and related activities are prohibited by a moratorium.’; andCommentsClose CommentsPermalink
(2) in paragraph (4)--CommentsClose CommentsPermalink
(A) in subparagraph (E), by striking ‘coordination’ and inserting ‘in consultation’; andCommentsClose CommentsPermalink
(B) in subparagraph (J)(ii), by inserting ‘a potential site for an alternative energy facility,’ after ‘deepwater port,’.CommentsClose CommentsPermalink
(d) Review of Impacts of Lease Sales on the Marine and Coastal Environment by Secretary- Section 8 of the Outer Continental Shelf Lands Act (
‘(9) At least 60 days prior to any lease sale, the Secretary shall request a review by the Secretary of Commerce of the proposed sale with respect to impacts on the marine and coastal environment. The Secretary of Commerce shall complete and submit in writing the results of that review within 60 days after receipt of the Secretary of the Interior’s request. If the Secretary of Commerce makes specific recommendations related to a proposed lease sale to reduce impacts on the marine and coastal environment, and the Secretary rejects or modifies such recommendations, the Secretary shall provide in writing justification for rejecting or modifying such recommendations.’.CommentsClose CommentsPermalink
(e) Limitation on Lease Tract Size- Section 8(b)(1) of the Outer Continental Shelf Lands Act (
(f) Sulphur Leases- Section 8(i) of the Outer Continental Shelf Lands Act (
(g) Terms and Provisions- Section 8(b) of the Outer Continental Shelf Lands Act (
SEC. 208. EXPLORATION PLANS.
(a) Worst Case Scenario Discharges- Not later than 180 days after the date of enactment of this Act, and every 5 years thereafter, the Secretary shall publish an estimate of the worst-case scenario discharges, including subsurface discharges, that are possible in each Outer Continental Shelf region, based on the oil and gas exploration, development, and production activities that are being conducted or are planned to be conducted at various locations and depths in each area.CommentsClose CommentsPermalink
(b) Limitation on Harm From Agency Exploration- Section 11(a)(1) of the Outer Continental Shelf Lands Act (
(c) Exploration Plan Review- Section 11(c) of the Outer Continental Shelf Lands Act (
(1) by inserting ‘(A)’ before the first sentence;CommentsClose CommentsPermalink
(2) in paragraph (1)(A), as designated by the amendment made by paragraph (1) of this subsection--CommentsClose CommentsPermalink
(A) by striking ‘and the provisions of such lease’ and inserting ‘the provisions of such lease, and other applicable environmental and natural resource conservation laws’; andCommentsClose CommentsPermalink
(B) by striking the fourth sentence and inserting the following:CommentsClose CommentsPermalink
‘(B) The Secretary shall approve such plan, as submitted or modified, within 90 days after its submission and it is made publicly accessible by the Secretary, or within such additional time as the Secretary determines is necessary to complete any environmental, safety, or other reviews, if the Secretary determines that--CommentsClose CommentsPermalink
‘(i) any proposed activity under such plan is not likely to result in any condition described in section 5(a)(2)(A)(i);CommentsClose CommentsPermalink
‘(ii) the plan complies with other applicable environmental or natural resource conservation laws;CommentsClose CommentsPermalink
‘(iii) in the case of geophysical surveys, the applicant will use the best available technologies and methods to minimize impacts on marine life; andCommentsClose CommentsPermalink
‘(iv) the applicant has demonstrated the capability and technology to respond immediately and effectively to a worst-case-scenario discharge, which shall be estimated for the proposed activities contained in the exploration plan, utilizing, in part, the relevant worst-case scenario discharge estimate published by the Secretary under section 208(a) of the Implementing the Recommendations of the BP Oil Spill Commission Act of 2011.’; andCommentsClose CommentsPermalink
(3) by adding at the end the following:CommentsClose CommentsPermalink
‘(5) If the Secretary requires greater than 90 days to review an exploration plan submitted pursuant to any oil and gas lease issued or maintained under this Act, then the Secretary may provide for a suspension of that lease pursuant to section 5 until the review of the exploration plan is completed.’.CommentsClose CommentsPermalink
(d) Requirements- Section 11(c) of the Outer Continental Shelf Lands Act (
‘(3) An exploration plan submitted under this subsection shall include, in the degree of detail that the Secretary may by regulation require--CommentsClose CommentsPermalink
‘(A) a schedule of anticipated exploration activities to be undertaken;CommentsClose CommentsPermalink
‘(B) a detailed and accurate description of equipment to be used for such activities, including--CommentsClose CommentsPermalink
‘(i) a description of each drilling unit;CommentsClose CommentsPermalink
‘(ii) a statement of the design and condition of major safety-related pieces of equipment, including independent third party certification of such equipment; andCommentsClose CommentsPermalink
‘(iii) a description of any new technology to be used;CommentsClose CommentsPermalink
‘(C) a map showing the location of each well to be drilled;CommentsClose CommentsPermalink
‘(D) a scenario for the potential blowout of the well involving the highest potential volume of liquid hydrocarbons, along with a complete description of a response plan to both control the blowout and manage the accompanying discharge of hydrocarbons, including the likelihood for surface intervention to stop the blowout, the availability of a rig to drill a relief well, an estimate of the time it would take to drill a relief well, a description of other technology that may be used to regain control of the well or capture escaping hydrocarbons and the potential timeline for using that technology for its intended purpose, and the strategy, organization, and resources necessary to avoid harm to the environment from hydrocarbons;CommentsClose CommentsPermalink
‘(E) an analysis of the potential impacts of the worst-case-scenario discharge, which shall be estimated for the proposed activities contained in the exploratory plan, utilizing, in part, the worst-case-scenario discharge performed by the Secretary under section 208(a) of hydrocarbons on the marine, coastal, and human environments for activities conducted pursuant to the proposed exploration plan; andCommentsClose CommentsPermalink
‘(F) such other information deemed pertinent by the Secretary.’.CommentsClose CommentsPermalink
(e) Drilling Permits- Section 11(d) of the Outer Continental Shelf Lands Act (
‘(d) Drilling Permits-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Secretary shall, by regulation, require that any lessee operating under an approved exploration plan obtain a permit prior to drilling any well in accordance with such plan, and prior to any significant modification of the well design as originally approved by the Secretary.CommentsClose CommentsPermalink
‘(2) ENGINEERING REVIEW REQUIRED- The Secretary may not grant any drilling permit or modification of the permit prior to completion of a full engineering review of the well system, including a determination that critical safety systems, including blowout prevention, will utilize best available technology and that blowout prevention systems will include redundancy and remote triggering capability.CommentsClose CommentsPermalink
‘(3) OPERATOR SAFETY AND ENVIRONMENTAL MANAGEMENT REQUIRED- The Secretary shall not grant any drilling permit or modification of the permit prior to completion of a safety and environmental management plan to be utilized by the operator during all well operations.’.CommentsClose CommentsPermalink
(f) Exploration Permit Requirements- Section 11(g) of the Outer Continental Shelf Lands Act (
(1) striking ‘shall be issued’ and inserting ‘may be issued’;CommentsClose CommentsPermalink
(2) inserting ‘and after consultation with the Secretary of Commerce,’ after ‘in accordance with regulations issued by the Secretary’;CommentsClose CommentsPermalink
(3) striking the ‘and’ at the end of paragraph (2);CommentsClose CommentsPermalink
(4) in paragraph (3) striking ‘will not be unduly harmful to’ and inserting ‘is not likely to harm’;CommentsClose CommentsPermalink
(5) striking the period at the end of paragraph (3) and inserting a semicolon; andCommentsClose CommentsPermalink
(6) adding at the end the following:CommentsClose CommentsPermalink
‘(4) the exploration will be conducted in accordance with other applicable environmental and natural resource conservation laws;CommentsClose CommentsPermalink
‘(5) in the case of geophysical surveys, the applicant will use the best available technologies and methods to minimize impacts on marine life; andCommentsClose CommentsPermalink
‘(6) in the case of drilling operations, the applicant has available oil spill response and clean-up equipment and technology that has been demonstrated to be capable of effectively remediating a worst-case release of oil.’.CommentsClose CommentsPermalink
(g) Environmental Review of Plans; Deepwater Plan; Plan Disapproval- Section 11 of the Outer Continental Shelf Lands Act (
‘(i) Environmental Review of Plans- The Secretary shall treat the approval of an exploration plan, or a significant revision of such a plan, as an agency action requiring preparation of an environmental assessment or environmental impact statement in accordance with the National Environmental Policy Act of 1969 (
42 U.S.C. 4321 et seq.), and shall require that such plan--CommentsClose CommentsPermalink
‘(1) be based on the best available technology to ensure safety in carrying out both the drilling of the well and any oil spill response; andCommentsClose CommentsPermalink
‘(2) contain a technical systems analysis of the safety of the proposed activity, the blowout prevention technology, and the blowout and spill response plans.CommentsClose CommentsPermalink
‘(j) Disapproval of Plan-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Secretary shall disapprove the plan if the Secretary determines, because of exceptional geological conditions in the lease areas, exceptional resource values in the marine or coastal environment, or other exceptional circumstances, that--CommentsClose CommentsPermalink
‘(A) implementation of the plan would probably cause serious harm or damage to life (including fish and other aquatic life), to property, to any mineral deposits (in areas leased or not leased), to the national security or defense, or to the marine, coastal, or human environments;CommentsClose CommentsPermalink
‘(B) the threat of harm or damage will not disappear or decrease to an acceptable extent within a reasonable period of time; andCommentsClose CommentsPermalink
‘(C) the advantages of disapproving the plan outweigh the advantages of exploration.CommentsClose CommentsPermalink
‘(2) CANCELLATION OF LEASE FOR DISAPPROVAL OF PLAN- If a plan is disapproved under this subsection, the Secretary may cancel such lease in accordance with subsection (c)(1) of this section.’.CommentsClose CommentsPermalink
SEC. 209. OUTER CONTINENTAL SHELF LEASING PROGRAM.
Section 18 of the Outer Continental Shelf Lands Act (
(1) in subsection (a) in the second sentence by striking ‘meet national energy needs’ and inserting ‘balance national energy needs and the protection of the marine and coastal environment and all the resources in that environment,’;CommentsClose CommentsPermalink
(2) in subsection (a)(1), by striking ‘considers’ and inserting ‘gives equal consideration to’;CommentsClose CommentsPermalink
(3) in subsection (a)(2)(A)--CommentsClose CommentsPermalink
(A) by striking ‘existing’ and inserting ‘the best available scientific’; andCommentsClose CommentsPermalink
(B) by inserting ‘, including at least three consecutive years of data’ after ‘information’;CommentsClose CommentsPermalink
(4) in subsection (a)(2)(D), by inserting ‘potential and existing sites of renewable energy installations,’ after ‘deepwater ports,’;CommentsClose CommentsPermalink
(5) in subsection (a)(2)(H), by inserting ‘including the availability of infrastructure to support oil spill response’ before the period;CommentsClose CommentsPermalink
(6) in subsection (a)(3), by--CommentsClose CommentsPermalink
(A) striking ‘to the maximum extent practicable,’;CommentsClose CommentsPermalink
(B) striking ‘obtain a proper balance between’ and inserting ‘minimize’; andCommentsClose CommentsPermalink
(C) striking ‘damage,’ and all that follows through the period and inserting ‘damage and adverse impacts on the marine, coastal, and human environments, and enhancing the potential for the discovery of oil and gas.’;CommentsClose CommentsPermalink
(7) in subsection (b)(1), by inserting ‘environmental, marine, and energy’ after ‘obtain’;CommentsClose CommentsPermalink
(8) in subsection (b)(2), by inserting ‘environmental, marine, and’ after ‘interpret the’;CommentsClose CommentsPermalink
(9) in subsection (b)(3), by striking ‘and’ after the semicolon at the end;CommentsClose CommentsPermalink
(10) by striking the period at the end of subsection (b)(4) and inserting a semicolon;CommentsClose CommentsPermalink
(11) by adding at the end of subsection (b) the following:CommentsClose CommentsPermalink
‘(5) provide technical review and oversight of exploration plans and a systems review of the safety of well designs and other operational decisions;CommentsClose CommentsPermalink
‘(6) conduct regular and thorough safety reviews and inspections; andCommentsClose CommentsPermalink
‘(7) enforce all applicable laws and regulations.’;CommentsClose CommentsPermalink
(12) in the first sentence of subsection (c)(1), by inserting ‘the National Oceanic and Atmospheric Administration and’ after ‘including’;CommentsClose CommentsPermalink
(13) in subsection (c)(2)--CommentsClose CommentsPermalink
(A) by inserting after the first sentence the following: ‘The Secretary shall also submit a copy of such proposed program to the head of each Federal agency referred to in, or that otherwise provided suggestions under, paragraph (1).’;CommentsClose CommentsPermalink
(B) in the third sentence, by inserting ‘or head of a Federal agency’ after ‘such Governor’; andCommentsClose CommentsPermalink
(C) in the fourth sentence, by inserting ‘or between the Secretary and the head of a Federal agency,’ after ‘affected State,’;CommentsClose CommentsPermalink
(14) by redesignating subsection (c)(3) as subsection (c)(4) and by inserting before subsection (c)(4) (as so redesignated) the following:CommentsClose CommentsPermalink
‘(3) At least 60 days prior to the publication of a proposed leasing program under this section, the Secretary shall request a review by the Secretary of Commerce of the proposed leasing program with respect to impacts on the marine and coastal environments. If the Secretary rejects or modifies any of the recommendations made by the Secretary of Commerce concerning the location, timing, or conduct of leasing activities under the proposed leasing program, the Secretary shall provide in writing justification for rejecting or modifying such recommendations.’;CommentsClose CommentsPermalink
(15) in the second sentence of subsection (d)(2), by inserting ‘, the head of a Federal agency,’ after ‘Attorney General’;CommentsClose CommentsPermalink
(16) in subsection (g), by inserting after the first sentence the following: ‘Such information may include existing inventories and mapping of marine resources previously undertaken by the Department of the Interior and the National Oceanic and Atmospheric Administration, information provided by the Department of Defense, and other available data regarding energy or mineral resource potential, navigation uses, fisheries, aquaculture uses, recreational uses, habitat, conservation, and military uses on the outer Continental Shelf.’; andCommentsClose CommentsPermalink
(17) by adding at the end the following new subsection:CommentsClose CommentsPermalink
‘(i) Research and Development- The Secretary shall carry out a program of research and development to ensure the continued improvement of methodologies for characterizing resources of the outer Continental Shelf and conditions that may affect the ability to develop and use those resources in a safe, sound, and environmentally responsible manner. Such research and development activities may include activities to provide accurate estimates of energy and mineral reserves and potential on the Outer Continental Shelf and any activities that may assist in filling gaps in environmental data needed to develop each leasing program under this section. As part of such program the Secretary, in cooperation with the Secretary of Energy, the Secretary of Commerce, and the Director of the United States Geologic Survey, shall conduct joint research to systematically collect critical scientific data, fill research gaps, and provide comprehensive, ecosystem-based scientific review of outer Continental Shelf Areas that are currently or will likely be opened for oil and gas leasing, and for offshore areas being considered for the siting of sources of renewable energy.’.CommentsClose CommentsPermalink
SEC. 210. ENVIRONMENTAL STUDIES.
(a) Information Needed for Assessment and Management of Environmental Impacts- Section 20 of the Outer Continental Shelf Lands Act (
‘SEC. 20. ENVIRONMENTAL STUDIES.
‘(a)(1) The Secretary, in cooperation with the Secretary of Commerce, shall conduct a study no less than once every three years’.CommentsClose CommentsPermalink
(b) Impacts of Deep Water Spills- Section 20 of the Outer Continental Shelf Lands Act (
43 U.S.C. 1346 ) is amended by--CommentsClose CommentsPermalink
(1) redesignating subsections (c) through (f) as (d) through (g); andCommentsClose CommentsPermalink
(2) inserting after subsection (b) the following new subsection:CommentsClose CommentsPermalink
‘(c) The Secretary shall conduct research to identify and reduce data gaps related to impacts of deepwater hydrocarbon spills, including--CommentsClose CommentsPermalink
‘(1) effects to benthic substrate communities and species;CommentsClose CommentsPermalink
‘(2) water column habitats and species;CommentsClose CommentsPermalink
‘(3) surface and coastal impacts from spills originating in deep waters; andCommentsClose CommentsPermalink
‘(4) the use of dispersants.’.CommentsClose CommentsPermalink
(c) Research- Within 1 year after the date of enactment of this Act, the Secretary, in cooperation with the Secretary of Commerce, shall conduct research to identify and reduce data gaps related to the impacts of offshore oil and gas development in the Arctic region and to identify and reduce gaps in oil spill response capabilities.CommentsClose CommentsPermalink
SEC. 211. SAFETY REGULATIONS.
Section 21 of the Outer Continental Shelf Lands Act (
(1) in subsection (a), by striking ‘Upon the date of enactment of this section,’ and inserting ‘Within 6 months after the date of enactment of the Outer Continental Shelf Lands Act Amendments of 2011 and every three years thereafter,’;CommentsClose CommentsPermalink
(2) in subsection (b) by--CommentsClose CommentsPermalink
(A) striking ‘for the artificial islands, installations, and other devices referred to in section 4(a)(1) of’ and inserting ‘under’;CommentsClose CommentsPermalink
(B) striking ‘which the Secretary determines to be economically feasible’; andCommentsClose CommentsPermalink
(C) adding at the end the following: ‘Not later than 6 months after the date of enactment of the Outer Continental Shelf Lands Act Amendments of 2011 and every 3 years thereafter, the Secretary shall, in consultation with the Outer Continental Shelf Safety and Environmental Advisory Board established under title I of the Implementing the Recommendations of the BP Oil Spill Commission Act of 2011, identify and publish an updated list of (1) the best available technologies for key areas of well design and operation, including blowout prevention and blowout and oil spill response and (2) technology needs for which the Secretary intends to identify best available technologies in the future.’; andCommentsClose CommentsPermalink
(3) by adding at the end the following:CommentsClose CommentsPermalink
‘(g) Safety Case- Not later than 6 months after the date of enactment of the Outer Continental Shelf Lands Act Amendments of 2011, the Secretary shall promulgate regulations requiring a safety case be submitted along with each new application for a permit to drill on the outer Continental Shelf. Not later than 5 years after the date final regulations promulgated under this subsection go into effect, and not less than every 5 years thereafter, the Secretary shall enter into an arrangement with the National Academy of Engineering to conduct a study to assess the effectiveness of these regulations and to recommend improvements in their administration.CommentsClose CommentsPermalink
‘(h) Offshore Technology Research and Risk Assessment Program-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Secretary shall carry out a program of research, development, and risk assessment to address technology and development issues associated with exploration for, and development and production of, energy and mineral resources on the outer Continental Shelf, with the primary purpose of informing its role relating to safety, environmental protection, and spill response.CommentsClose CommentsPermalink
‘(2) SPECIFIC FOCUS AREAS- The program under this subsection shall include research and development related to--CommentsClose CommentsPermalink
‘(A) risk assessment, using all available data from safety and compliance records both within the United States and internationally;CommentsClose CommentsPermalink
‘(B) analysis of industry trends in technology, investment, and frontier areas;CommentsClose CommentsPermalink
‘(C) reviews of best available technologies, including those associated with pipelines, blowout preventer mechanisms, casing, well design, and other associated infrastructure related to offshore energy development;CommentsClose CommentsPermalink
‘(D) oil spill response and mitigation, including reviews of the best available technology for oil spill response and mitigation and the availability and accessibility of such technology in each region where leasing is taking place;CommentsClose CommentsPermalink
‘(E) risk associated with human factors;CommentsClose CommentsPermalink
‘(F) technologies and methods to reduce the impact of geophysical exploration activities on marine life; andCommentsClose CommentsPermalink
‘(G) renewable energy operations.’.CommentsClose CommentsPermalink
SEC. 212. ENFORCEMENT OF SAFETY AND ENVIRONMENTAL REGULATIONS.
(a) In General- Section 22 of the Outer Continental Shelf Lands Act (
(1) by amending subsection (c) to read as follows:CommentsClose CommentsPermalink
‘(c) Inspections- The Secretary and the Secretary of the department in which the Coast Guard is operating shall individually, or jointly if they so agree, promulgate regulations to provide for--CommentsClose CommentsPermalink
‘(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;CommentsClose CommentsPermalink
‘(2) scheduled onsite inspection, at least once a month, of each facility on the outer Continental Shelf engaged in drilling operations and which is subject to any environmental or safety regulation promulgated pursuant to this Act, which inspection shall include validation of the safety case required for the facility under section 21(g) and identifications of deviations from the safety case, and shall include all safety equipment designed to prevent or ameliorate blowouts, fires, spillages, or other major accidents;CommentsClose CommentsPermalink
‘(3) periodic onsite inspection without advance notice to the operator of such facility to assure compliance with such environmental or safety regulations; andCommentsClose CommentsPermalink
‘(4) periodic audits of each required safety and environmental management plan, and any associated safety case, both with respect to their implementation at each facility on the outer Continental Shelf for which such a plan or safety case is required and with respect to onshore management support for activities at such a facility.’;CommentsClose CommentsPermalink
(2) in subsection (d)(1)--CommentsClose CommentsPermalink
(A) by striking ‘each major fire and each major oil spillage’ and inserting ‘each major fire, each major oil spillage, each loss of well control, and any other accident that presented a serious risk to human or environmental safety’; andCommentsClose CommentsPermalink
(B) by inserting before the period at the end the following: ‘, as a condition of the lease or permit’;CommentsClose CommentsPermalink
(3) in subsection (d)(2), by inserting before the period at the end the following: ‘as a condition of the lease or permit’;CommentsClose CommentsPermalink
(4) in subsection (e), by adding at the end the following: ‘Any such allegation from any employee of the lessee or any subcontractor of the lessee shall be investigated by the Secretary.’;CommentsClose CommentsPermalink
(5) in subsection (b)(1), by striking ‘recognized’ and inserting ‘uncontrolled’; andCommentsClose CommentsPermalink
(6) by adding at the end the following:CommentsClose CommentsPermalink
‘(g) Information on Causes and Corrective Actions- For any incident investigated under this section, the Secretary shall promptly make available to all lessees and the public technical information about the causes and corrective actions taken. All data and reports related to any such incident shall be maintained in a data base available to the public.CommentsClose CommentsPermalink
‘(h) Operator’s Annual Certification-CommentsClose CommentsPermalink
‘(1) The Secretary, in cooperation with the Secretary of the department in which the Coast Guard is operating, shall require all operators of all new and existing drilling and production operations to annually certify that their operations are being conducted in accordance with applicable law and regulations.CommentsClose CommentsPermalink
‘(2) Each certification shall include, but, not be limited to, statements that verify the operator has--CommentsClose CommentsPermalink
‘(A) examined all well control system equipment (both surface and subsea) being used to ensure that it has been properly maintained and is capable of shutting in the well during emergency operations;CommentsClose CommentsPermalink
‘(B) examined and conducted tests to ensure that the emergency equipment has been function-tested and is capable of addressing emergency situations;CommentsClose CommentsPermalink
‘(C) reviewed all rig drilling, casing, cementing, well abandonment (temporary and permanent), completion, and workover practices to ensure that well control is not compromised at any point while emergency equipment is installed on the wellhead;CommentsClose CommentsPermalink
‘(D) reviewed all emergency shutdown and dynamic positioning procedures that interface with emergency well control operations;CommentsClose CommentsPermalink
‘(E) taken the necessary steps to ensure that all personnel involved in well operations are properly trained and capable of performing their tasks under both normal drilling and emergency well control operations; andCommentsClose CommentsPermalink
‘(F) updated the operator’s response plan required under section 25(c)(7) and exploration plans required under section 11(c)(3) to reflect the best available technology, including the availability of such technology.CommentsClose CommentsPermalink
‘(i) CEO Statement-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Secretary shall not approve any application for a permit to drill a well under this Act unless such application is accompanied by a statement in which the chief executive officer of the applicant attests, in writing, that--CommentsClose CommentsPermalink
‘(A) the applicant is in compliance with all applicable environmental and natural resource conservation laws;CommentsClose CommentsPermalink
‘(B) the applicant has the capability and technology to respond immediately and effectively to a worst-case oil spill in real-world conditions in the area of the proposed activity under the permit;CommentsClose CommentsPermalink
‘(C) the applicant has an oil spill response plan that ensures that the applicant has the capacity to promptly control and stop a blowout in the event that well control measures fail;CommentsClose CommentsPermalink
‘(D) the blowout preventer to be used during the drilling of the well has redundant systems to prevent or stop a blowout for all foreseeable blowout scenarios and failure modes;CommentsClose CommentsPermalink
‘(E) the well design is safe; andCommentsClose CommentsPermalink
‘(F) the applicant has the capability to expeditiously begin and complete a relief well if necessary in the event of a blowout.CommentsClose CommentsPermalink
‘(2) CIVIL PENALTY- Any chief executive officer who makes a false certification under paragraph (1) shall be liable for a civil penalty under section 24.CommentsClose CommentsPermalink
‘(j) Third-Party Certification- All operators that modify or upgrade any emergency equipment placed on any operation to prevent blow-outs or other well control events, shall have an independent third party conduct a detailed physical inspection and design review of such equipment within 30 days of its installation. The independent third party shall certify that the equipment will operate as originally designed and any modifications or upgrades conducted after delivery have not compromised the design, performance, or functionality of the equipment. Failure to comply with this subsection shall result in suspension of the lease.’.CommentsClose CommentsPermalink
(b) Application- Section 22(i) of the Outer Continental Shelf Lands Act, as added by the amendments made by subsection (a), shall apply to approvals of applications for a permit to drill that are submitted after the end of the 6-month period beginning on the date of enactment of this Act.CommentsClose CommentsPermalink
SEC. 213. JUDICIAL REVIEW.
Section 23(c)(3) of the Outer Continental Shelf Lands Act (
SEC. 214. REMEDIES AND PENALTIES.
(a) Civil Penalty, Generally- Section 24(b) of the Outer Continental Shelf Lands Act (
‘(b)(1) Except as provided in paragraph (2), any person who fails to comply with any provision of this Act, or any term of a lease, license, or permit issued pursuant to this Act, or any regulation or order issued under this Act, shall be liable for a civil administrative penalty of not more than $75,000 for each day of the continuance of such failure. The Secretary may assess, collect, and compromise any such penalty. No penalty shall be assessed until the person charged with a violation has been given an opportunity for a hearing. The Secretary shall, by regulation at least every 3 years, adjust the penalty specified in this paragraph to reflect any increases in the Consumer Price Index (all items, United States city average) as prepared by the Department of Labor.CommentsClose CommentsPermalink
‘(2) If a failure described in paragraph (1) constitutes or constituted a threat of harm or damage to life (including fish and other aquatic life), property, any mineral deposit, or the marine, coastal, or human environment, a civil penalty of not more than $150,000 shall be assessed for each day of the continuance of the failure.’.CommentsClose CommentsPermalink
(b) Knowing and Willful Violations- Section 24(c) of the Outer Continental Shelf Lands Act (
(c) Officers and Agents of Corporations- Section 24(d) of the Outer Continental Shelf Lands Act (
SEC. 215. UNIFORM PLANNING FOR OUTER CONTINENTAL SHELF.
Section 25 of the Outer Continental Shelf Lands Act (
(1) by striking ‘other than the Gulf of Mexico,’ in each place it appears;CommentsClose CommentsPermalink
(2) in subsection (c), by striking ‘and’ after the semicolon at the end of paragraph (5), redesignating paragraph (6) as paragraph (11), and inserting after paragraph (5) the following new paragraphs:CommentsClose CommentsPermalink
‘(6) a detailed and accurate description of equipment to be used for the drilling of wells pursuant to activities included in the development and production plan, including--CommentsClose CommentsPermalink
‘(A) a description of the drilling unit or units;CommentsClose CommentsPermalink
‘(B) a statement of the design and condition of major safety-related pieces of equipment, including independent third-party certification of such equipment; andCommentsClose CommentsPermalink
‘(C) a description of any new technology to be used;CommentsClose CommentsPermalink
‘(7) a scenario for the potential blowout of each well to be drilled as part of the plan involving the highest potential volume of liquid hydrocarbons, along with a complete description of a response plan to both control the blowout and manage the accompanying discharge of hydrocarbons, including the likelihood for surface intervention to stop the blowout, the availability of a rig to drill a relief well, an estimate of the time it would take to drill a relief well, a description of other technology that may be used to regain control of the well or capture escaping hydrocarbons and the potential timeline for using that technology for its intended purpose, and the strategy, organization, and resources necessary to avoid harm to the environment from hydrocarbons;CommentsClose CommentsPermalink
‘(8) an analysis of the potential impacts of the worst-case-scenario discharge on the marine and coastal environments for activities conducted pursuant to the proposed development and production plan;CommentsClose CommentsPermalink
‘(9) a comprehensive survey and characterization of the coastal or marine environment within the area of operation, including bathymetry, currents and circulation patterns within the water column, and descriptions of benthic and pelagic environments;CommentsClose CommentsPermalink
‘(10) a description of the technologies to be deployed on the facilities to routinely observe and monitor in real time the marine environment throughout the duration of operations, and a description of the process by which such observation data and information will be made available to Federal regulators and to the System established under section 12304 of
Public Law 111-11 (33 U.S.C. 3603 ); and’;CommentsClose CommentsPermalink
(3) in subsection (e), by striking so much as precedes paragraph (2) and inserting the following:CommentsClose CommentsPermalink
‘(e)(1) The Secretary shall treat the approval of a development and production plan, or a significant revision of a development and production plan, as an agency action requiring preparation of an environmental assessment or environmental impact statement, in accordance with the National Environmental Policy Act of 1969 (
42 U.S.C. 4321 et seq.).’;CommentsClose CommentsPermalink
(4) by striking subsections (g) and (l), and redesignating subsections (h) through (k) as subsections (g) through and (j); andCommentsClose CommentsPermalink
(5) in subsection (g), as so redesignated, by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and inserting after paragraph (1) the following:CommentsClose CommentsPermalink
‘(2) The Secretary shall not approve a development and production plan, or a significant revision to such a plan, unless--CommentsClose CommentsPermalink
‘(A) the plan is in compliance with all other applicable environmental and natural resource conservation laws; andCommentsClose CommentsPermalink
‘(B) the applicant has available oil spill response and clean-up equipment and technology that has been demonstrated to be capable of effectively remediating the projected worst-case release of oil from activities conducted pursuant to the development and production plan.’.CommentsClose CommentsPermalink
SEC. 216. OIL AND GAS INFORMATION PROGRAM.
Section 26(a)(1) of the Outer Continental Shelf Lands Act (
(1) striking the period at the end of subparagraph (A) and inserting ‘, provided that such data shall be transmitted in electronic format either in real-time or as quickly as practicable following the generation of such data.’; andCommentsClose CommentsPermalink
(2) striking subparagraph (C) and inserting the following:CommentsClose CommentsPermalink
‘(C) Lessees engaged in drilling operations shall provide to the Secretary--CommentsClose CommentsPermalink
‘(i) all daily reports generated by the lessee, or any daily reports generated by contractors or subcontractors engaged in or supporting drilling operations on the lessee’s lease, no more than 24 hours after the end of the day for which they should have been generated;CommentsClose CommentsPermalink
‘(ii) documentation of blowout preventer maintenance and repair, and any changes to design specifications of the blowout preventer, within 24 hours after such activity; andCommentsClose CommentsPermalink
‘(iii) prompt or real-time transmission of the electronic log from a blowout preventer control system.’.CommentsClose CommentsPermalink
SEC. 217. LIMITATION ON ROYALTY-IN-KIND PROGRAM.
Section 27(a) of the Outer Continental Shelf Lands Act (
SEC. 218. RESTRICTIONS ON EMPLOYMENT.
Section 29 of the Outer Continental Shelf Lands Act (
(1) in the matter preceding paragraph (1)--CommentsClose CommentsPermalink
(A) by striking ‘SEC. 29’ and all that follows through ‘No full-time’ and inserting the following:CommentsClose CommentsPermalink
‘SEC. 29. RESTRICTIONS ON EMPLOYMENT.
‘(a) In General- No full-time’; andCommentsClose CommentsPermalink
(B) by striking ‘, and who was at any time during the twelve months preceding the termination of his employment with the Department compensated under the Executive Schedule or compensated at or above the annual rate of basic pay for grade GS-16 of the General Schedule’;CommentsClose CommentsPermalink
(2) in paragraph (1)--CommentsClose CommentsPermalink
(A) in subparagraph (A), by inserting ‘or advise’ after ‘represent’;CommentsClose CommentsPermalink
(B) in subparagraph (B), by striking ‘with the intent to influence, make’ and inserting ‘act with the intent to influence, directly or indirectly, or make’; andCommentsClose CommentsPermalink
(C) in the matter following subparagraph (C)--CommentsClose CommentsPermalink
(i) by inserting ‘inspection or enforcement action,’ before ‘or other particular matter’; andCommentsClose CommentsPermalink
(ii) by striking ‘or’ at the end;CommentsClose CommentsPermalink
(3) in paragraph (2)--CommentsClose CommentsPermalink
(A) in subparagraph (A), by inserting ‘or advise’ after ‘represent’;CommentsClose CommentsPermalink
(B) in subparagraph (B), by striking ‘with the intent to influence, make’ and inserting ‘act with the intent to influence, directly or indirectly, or make’; andCommentsClose CommentsPermalink
(C) by striking the period at the end and inserting ‘; or’; andCommentsClose CommentsPermalink
(4) by adding at the end the following:CommentsClose CommentsPermalink
‘(3) during the 2-year period beginning on the date on which the employment of the officer or employee ceased at the Department, accept employment or compensation from any party that has a direct and substantial interest--CommentsClose CommentsPermalink
‘(A) that was pending under the official responsibility of the officer or employee as an officer at any point during the 2-year period preceding the date of termination of the responsibility; orCommentsClose CommentsPermalink
‘(B) in which the officer or employee participated personally and substantially as an officer or employee of the Department.CommentsClose CommentsPermalink
‘(b) Prior Dealings- No full-time officer or employee of the Department of the Interior who directly or indirectly discharged duties or responsibilities under this Act shall participate personally and substantially as a Federal officer or employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in a proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, inspection, enforcement action, or other particular matter in which, to the knowledge of the officer or employee--CommentsClose CommentsPermalink
‘(1) the officer or employee or the spouse, minor child, or general partner of the officer or employee has a financial interest;CommentsClose CommentsPermalink
‘(2) any organization in which the officer or employee is serving as an officer, director, trustee, general partner, or employee has a financial interest;CommentsClose CommentsPermalink
‘(3) any person or organization with whom the officer or employee is negotiating or has any arrangement concerning prospective employment has a financial interest; orCommentsClose CommentsPermalink
‘(4) any person or organization in which the officer or employee has, within the preceding 1-year period, served as an officer, director, trustee, general partner, agent, attorney, consultant, contractor, or employee.CommentsClose CommentsPermalink
‘(c) Gifts From Outside Sources- No full-time officer or employee of the Department of the Interior who directly or indirectly discharges duties or responsibilities under this Act shall, directly or indirectly, solicit or accept any gift in violation of subpart B of part 2635 of title 5, Code of Federal Regulations (or successor regulations).CommentsClose CommentsPermalink
‘(d) Penalty- Any person that violates subsection (a) or (b) shall be punished in accordance with
section 216 of title 18, United States Code .’.CommentsClose CommentsPermalink
SEC. 219. REPEAL OF ROYALTY RELIEF PROVISIONS.
(a) Repeal of Provisions of Energy Policy Act of 2005- The following provisions of the Energy Policy Act of 2005 (
(1) Section 344 (
(2) Section 345 (
(b) Repeal of Provisions Relating to Planning Areas Offshore Alaska- Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (
SEC. 220. MANNING AND BUY- AND BUILD-AMERICAN REQUIREMENTS.
Section 30 of the Outer Continental Shelf Lands Act (
(1) in subsection (a), by striking ‘shall issue regulations which’ and inserting ‘shall issue regulations that shall be supplemental to and complementary with and under no circumstances a substitution for the provisions of the Constitution and laws of the United States extended to the subsoil and seabed of the outer Continental Shelf pursuant to section 4(a)(1) of this Act, except insofar as such laws would otherwise apply to individuals who have extraordinary ability in the sciences, arts, education, or business, which has been demonstrated by sustained national or international acclaim, and that’; andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
‘(d) Buy and Build American- It is the intention of the Congress that this Act, among other things, result in a healthy and growing American industrial, manufacturing, transportation, and service sector employing the vast talents of America’s workforce to assist in the development of energy from the outer Continental Shelf. Moreover, the Congress intends to monitor the deployment of personnel and material on the outer Continental Shelf to encourage the development of American technology and manufacturing to enable United States workers to benefit from this Act by good jobs and careers, as well as the establishment of important industrial facilities to support expanded access to American resources.’.CommentsClose CommentsPermalink
SEC. 221. COORDINATION AND CONSULTATION WITH AFFECTED STATE AND LOCAL GOVERNMENTS.
Section 19 of the Outer Continental Shelf Lands Act (
(1) by inserting ‘exploration plan or’ before ‘development and production plan’ in each place it appears; andCommentsClose CommentsPermalink
(2) by amending subsection (c) to read as follows:CommentsClose CommentsPermalink
‘(c) Acceptance or Rejection of Recommendations- The Secretary may accept recommendations of the Governor and may accept recommendations of the executive of any affected local government if the Secretary determines, after having provided the opportunity for consultation, that they provide for a reasonable balance between the national interest and the well-being of the citizens of the affected State. For purposes of this subsection, a determination of the national interest shall be based on the desirability of obtaining oil and gas supplies in a balanced manner and on protecting coastal and marine ecosystems and the economies dependent on those ecosystems. The Secretary shall provide an explanation to the Governor, in writing, of the reasons for his determination to accept or reject such Governor’s recommendations, or to implement any alternative identified in consultation with the Governor.’.CommentsClose CommentsPermalink
SEC. 222. IMPLEMENTATION.
(a) New Leases- The provisions of this title and title VII shall apply to any lease that is issued under the Outer Continental Shelf Lands Act (
(b) Existing Leases- For all leases that were issued under the Outer Continental Shelf Lands Act (
SEC. 223. REPORT ON ENVIRONMENTAL BASELINE STUDIES.
The Secretary of the Interior shall report to Congress within 6 months after the date of enactment of this Act on the costs of baseline environmental studies to gather, analyze, and characterize resource data necessary to implement the Outer Continental Shelf Lands Act (
SEC. 224. CUMULATIVE IMPACTS ON MARINE MAMMAL SPECIES AND STOCKS AND SUBSISTENCE USE.
Section 20 of the Outer Continental Shelf Lands Act (
‘(h) Cumulative Impacts on Marine Mammal Species and Stocks and Subsistence Use- In determining, pursuant to subparagraphs (A)(i) and (D)(i) of section 101(a)(5) of the Marine Mammal Protection Act of 1972 (
16 U.S.C. 1371(a)(5) ), whether takings from specified activities administered under this title will have a negligible impact on a marine mammal species or stock, and not have an unmitigable adverse impact on the availability of such species or stock for taking for subsistence uses, the Secretary of Commerce or Interior shall incorporate any takings of such species or stock from any other reasonably foreseeable activities administered under this Act.’.CommentsClose CommentsPermalink
SEC. 225. SAVINGS CLAUSE.
Nothing in this Act shall be construed to preempt regulation by any State or local government of oil and gas exploration and production wells drilled in State waters, on State lands, or on private lands within that State pursuant to the laws of that State or local government.CommentsClose CommentsPermalink
Subtitle B--Royalty Relief for American ConsumersCommentsClose CommentsPermalink
Subtitle B--Royalty Relief for American ConsumersCommentsClose CommentsPermalink
SEC. 231. SHORT TITLE.
This subtitle may be cited as the ‘Royalty Relief for American Consumers Act of 2011’.CommentsClose CommentsPermalink
SEC. 232. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES.
(a) Issuance of New Leases-CommentsClose CommentsPermalink
(1) IN GENERAL- The Secretary shall not issue any new lease that authorizes the production of oil or natural gas under the Outer Continental Shelf Lands Act (
(2) PERSONS DESCRIBED- A person referred to in paragraph (1) is a person that--CommentsClose CommentsPermalink
(A) is a lessee that--CommentsClose CommentsPermalink
(i) holds a covered lease on the date on which the Secretary considers the issuance of the new lease; orCommentsClose CommentsPermalink
(ii) was issued a covered lease before the date of enactment of this Act, but transferred the covered lease to another person or entity (including a subsidiary or affiliate of the lessee) after the date of enactment of this Act; orCommentsClose CommentsPermalink
(B) any other person that has any direct or indirect interest in, or that derives any benefit from, a covered lease.CommentsClose CommentsPermalink
(3) MULTIPLE LESSEES-CommentsClose CommentsPermalink
(A) IN GENERAL- For purposes of paragraph (1), if there are multiple lessees that own a share of a covered lease, the Secretary may implement separate agreements with any lessee with a share of the covered lease that modifies the payment responsibilities with respect to the share of the lessee to include price thresholds that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (
(B) TREATMENT OF SHARE AS COVERED LEASE- Beginning on the effective date of an agreement under subparagraph (A), any share subject to the agreement shall not constitute a covered lease with respect to any lessees that entered into the agreement.CommentsClose CommentsPermalink
(b) Transfers- A lessee or any other person who has any direct or indirect interest in, or who derives a benefit from, a lease shall not be eligible to obtain by sale or other transfer (including through a swap, spinoff, servicing, or other agreement) any covered lease, the economic benefit of any covered lease, or any other lease for the production of oil or natural gas in the Gulf of Mexico under the Outer Continental Shelf Lands Act (
(1) renegotiated each covered lease with respect to which the lessee or person is a lessee, to modify the payment responsibilities of the lessee or person to include price thresholds that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (
(2) entered into an agreement with the Secretary to modify the terms of all covered leases of the lessee or other person to include limitations on royalty relief based on market prices that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (
(c) Use of Amounts for Deficit Reduction- Notwithstanding any other provision of law, any amounts received by the United States as rentals or royalties under covered leases and not used pursuant to section 321 shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.CommentsClose CommentsPermalink
(d) Definitions- In this section--CommentsClose CommentsPermalink
(1) COVERED LEASE- The term ‘covered lease’ means a lease for oil or gas production in the Gulf of Mexico that is--CommentsClose CommentsPermalink
(A) in existence on the date of enactment of this Act;CommentsClose CommentsPermalink
(B) issued by the Department of the Interior under section 304 of the Outer Continental Shelf Deep Water Royalty Relief Act (
(C) not subject to limitations on royalty relief based on market price that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (
(2) LESSEE- The term ‘lessee’ includes any person or other entity that controls, is controlled by, or is in or under common control with, a lessee.CommentsClose CommentsPermalink
(3) SECRETARY- The term ‘Secretary’ means the Secretary of the Interior.CommentsClose CommentsPermalink
SEC. 233. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.
The Secretary of the Interior shall agree to a request by any lessee to amend any lease issued for any Central and Western Gulf of Mexico tract in the period of January 1, 1996, through November 28, 2000, to incorporate price thresholds applicable to royalty suspension provisions, that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (
TITLE III--OIL AND GAS ROYALTY REFORMCommentsClose CommentsPermalink
TITLE III--OIL AND GAS ROYALTY REFORMCommentsClose CommentsPermalink
SEC. 301. AMENDMENTS TO DEFINITIONS.
Section 3 of the Federal Oil and Gas Royalty Management Act of 1982 (
(1) in paragraph (8), by striking the semicolon and inserting ‘including but not limited to the Act of October 20, 1914 (38 Stat. 741); the Act of February 25, 1920 (41 Stat. 437); the Act of April 17, 1926 (44 Stat. 301); the Act of February 7, 1927 (44 Stat. 1057); and all Acts heretofore or hereafter enacted that are amendatory of or supplementary to any of the foregoing Acts;’;CommentsClose CommentsPermalink
(2) in paragraph (20)(A), by striking ‘: Provided, That’ and all that follows through ‘subject of the judicial proceeding’;CommentsClose CommentsPermalink
(3) in paragraph (20)(B), by striking ‘(with written notice to the lessee who designated the designee)’;CommentsClose CommentsPermalink
(4) in paragraph (23)(A), by striking ‘(with written notice to the lessee who designated the designee)’;CommentsClose CommentsPermalink
(5) by striking paragraph (24) and inserting the following:CommentsClose CommentsPermalink
‘(24) ‘designee’ means a person who pays, offsets, or credits monies, makes adjustments, requests and receives refunds, or submits reports with respect to payments a lessee must make pursuant to section 102(a);’;CommentsClose CommentsPermalink
(6) in paragraph (25)(B)--CommentsClose CommentsPermalink
(A) by striking ‘(subject to the provisions of section 102(a) of this Act)’; andCommentsClose CommentsPermalink
(B) in clause (ii) by striking the matter after subclause (IV) and inserting the following:CommentsClose CommentsPermalink
‘that arises from or relates to any lease, easement, right-of-way, permit, or other agreement regardless of form administered by the Secretary for, or any mineral leasing law related to, the exploration, production, and development of oil and gas or other energy resource on Federal lands or the Outer Continental Shelf;’;CommentsClose CommentsPermalink
(7) in paragraph (29), by inserting ‘or permit’ after ‘lease’; andCommentsClose CommentsPermalink
(8) by striking ‘and’ after the semicolon at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting a semicolon, and by adding at the end the following new paragraphs:CommentsClose CommentsPermalink
‘(34) ‘compliance review’ means a full-scope or a limited-scope examination of a lessee’s lease accounts to compare one or all elements of the royalty equation (volume, value, royalty rate, and allowances) against anticipated elements of the royalty equation to test for variances; andCommentsClose CommentsPermalink
‘(35) ‘marketing affiliate’ means an affiliate of a lessee whose function is to acquire the lessee’s production and to market that production.’.CommentsClose CommentsPermalink
SEC. 302. COMPLIANCE REVIEWS.
Section 101 of the Federal Oil and Gas Royalty Management Act of 1982 (
‘(d) The Secretary may, as an adjunct to audits of accounts for leases, utilize compliance reviews of accounts. Such reviews shall not constitute nor substitute for audits of lease accounts. Any disparity uncovered in such a compliance review shall be immediately referred to a program auditor. The Secretary shall, before completion of a compliance review, provide notice of the review to designees whose obligations are the subject of the review.’.CommentsClose CommentsPermalink
SEC. 303. CLARIFICATION OF LIABILITY FOR ROYALTY PAYMENTS.
Section 102(a) of the Federal Oil and Gas Royalty Management Act of 1982 (
‘(a) In order to increase receipts and achieve effective collections of royalty and other payments, a lessee who is required to make any royalty or other payment under a lease, easement, right-of-way, permit, or other agreement, regardless of form, or under the mineral leasing laws, shall make such payment in the time and manner as may be specified by the Secretary or the applicable delegated State. Any person who pays, offsets, or credits monies, makes adjustments, requests and receives refunds, or submits reports with respect to payments the lessee must make is the lessee’s designee under this Act. Notwithstanding any other provision of this Act to the contrary, a designee shall be liable for any payment obligation of any lessee on whose behalf the designee pays royalty under the lease. The person owning operating rights in a lease and a person owning legal record title in a lease shall be liable for that person’s pro rata share of payment obligations under the lease.’.CommentsClose CommentsPermalink
SEC. 304. REQUIRED RECORDKEEPING.
Section 103(b) of the Federal Oil and Gas Royalty Management Act of 1982 (
SEC. 305. FINES AND PENALTIES.
Section 109 of the Federal Oil and Gas Royalty Management Act of 1982 (
(1) in subsection (a) in the matter following paragraph (2), by striking ‘$500’ and inserting ‘$1,000’;CommentsClose CommentsPermalink
(2) in subsection (a)(2)(B), by inserting ‘(i)’ after ‘such person’, and by striking the period at the end and inserting ‘; and (ii) has not received notice, pursuant to paragraph (1), of more than two prior violations in the current calendar year.’;CommentsClose CommentsPermalink
(3) in subsection (b), by striking ‘$5,000’ and inserting ‘$10,000’;CommentsClose CommentsPermalink
(4) in subsection (c)--CommentsClose CommentsPermalink
(A) in paragraph (2), by striking ‘; or’ and inserting ‘, including any failure or refusal to promptly tender requested documents;’;CommentsClose CommentsPermalink
(B) in the text following paragraph (3)--CommentsClose CommentsPermalink
(i) by striking ‘$10,000’ and inserting ‘$20,000’; andCommentsClose CommentsPermalink
(ii) by striking the comma at the end and inserting a semicolon; andCommentsClose CommentsPermalink
(C) by adding at the end the following new paragraphs:CommentsClose CommentsPermalink
‘(4) knowingly or willfully fails to make any royalty payment in the amount or value as specified by statute, regulation, order, or terms of the lease; orCommentsClose CommentsPermalink
‘(5) fails to correctly report and timely provide operations or financial records necessary for the Secretary or any authorized designee of the Secretary to accomplish lease management responsibilities,’;CommentsClose CommentsPermalink
(5) in subsection (d), by striking ‘$25,000’ and inserting ‘$50,000’;CommentsClose CommentsPermalink
(6) in subsection (h), by striking ‘by registered mail’ and inserting ‘a common carrier that provides proof of delivery’; andCommentsClose CommentsPermalink
(7) by adding at the end the following subsection:CommentsClose CommentsPermalink
‘(m)(1) Any determination by the Secretary or a designee of the Secretary that a person has committed a violation under subsection (a), (c), or (d)(1) shall toll any applicable statute of limitations for all oil and gas leases held or operated by such person, until the later of--CommentsClose CommentsPermalink
‘(A) the date on which the person corrects the violation and certifies that all violations of a like nature have been corrected for all of the oil and gas leases held or operated by such person; orCommentsClose CommentsPermalink
‘(B) the date a final, nonappealable order has been issued by the Secretary or a court of competent jurisdiction.CommentsClose CommentsPermalink
‘(2) A person determined by the Secretary or a designee of the Secretary to have violated subsection (a), (c), or (d)(1) shall maintain all records with respect to the person’s oil and gas leases until the later of--CommentsClose CommentsPermalink
‘(A) the date the Secretary releases the person from the obligation to maintain such records; andCommentsClose CommentsPermalink
‘(B) the expiration of the period during which the records must be maintained under section 103(b).’.CommentsClose CommentsPermalink
SEC. 306. INTEREST ON OVERPAYMENTS.
Section 111 of the Federal Oil and Gas Royalty Management Act of 1982 (
(1) by amending subsections (h) and (i) to read as follows:CommentsClose CommentsPermalink
‘(h) Interest shall not be allowed nor paid nor credited on any overpayment, and no interest shall accrue from the date such overpayment was made.CommentsClose CommentsPermalink
‘(i) A lessee or its designee may make a payment for the approximate amount of royalties (hereinafter in this subsection referred to as the ‘estimated payment’) that would otherwise be due for such lease by the date royalties are due for that lease. When an estimated payment is made, actual royalties are payable at the end of the month following the month in which the estimated payment is made. If the estimated payment was less than the amount of actual royalties due, interest is owed on the underpaid amount. If the lessee or its designee makes a payment for such actual royalties, the lessee or its designee may apply the estimated payment to future royalties. Any estimated payment may be adjusted, recouped, or reinstated by the lessee or its designee provided such adjustment, recoupment, or reinstatement is made within the limitation period for which the date royalties were due for that lease.’;CommentsClose CommentsPermalink
(2) by striking subsection (j); andCommentsClose CommentsPermalink
(3) in subsection (k)(4)--CommentsClose CommentsPermalink
(A) by striking ‘or overpaid royalties and associated interest’; andCommentsClose CommentsPermalink
(B) by striking ‘, refunded, or credited’.CommentsClose CommentsPermalink
SEC. 307. ADJUSTMENTS AND REFUNDS.
Section 111A of the Federal Oil and Gas Royalty Management Act of 1982 (
(1) in subsection (a)(3), by inserting ‘(A)’ after ‘(3)’, and by striking the last sentence and inserting the following:CommentsClose CommentsPermalink
‘(B) Except as provided in subparagraph (C), no adjustment may be made with respect to an obligation that is the subject of an audit or compliance review after completion of the audit or compliance review, respectively, unless such adjustment is approved by the Secretary or the applicable delegated State, as appropriate.CommentsClose CommentsPermalink
‘(C) If an overpayment is identified during an audit, the Secretary shall allow a credit in the amount of the overpayment.’;CommentsClose CommentsPermalink
(2) in subsection (a)(4)--CommentsClose CommentsPermalink
(A) by striking ‘six’ and inserting ‘four’; andCommentsClose CommentsPermalink
(B) by striking ‘shall’ the second place it appears and inserting ‘may’; andCommentsClose CommentsPermalink
(3) in subsection (b)(1) by striking ‘and’ after the semicolon at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting ‘; and’, and by adding at the end the following:CommentsClose CommentsPermalink
‘(E) is made within the adjustment period for that obligation.’.CommentsClose CommentsPermalink
SEC. 308. CONFORMING AMENDMENT.
Section 114 of the Federal Oil and Gas Royalty Management Act of 1982 is repealed.CommentsClose CommentsPermalink
SEC. 309. OBLIGATION PERIOD.
Section 115(c) of the Federal Oil and Gas Royalty Management Act of 1982 (
‘(3) ADJUSTMENTS- In the case of an adjustment under section 111A(a) in which a recoupment by the lessee results in an underpayment of an obligation, for purposes of this Act the obligation becomes due on the date the lessee or its designee makes the adjustment.’.CommentsClose CommentsPermalink
SEC. 310. NOTICE REGARDING TOLLING AGREEMENTS AND SUBPOENAS.
(a) Tolling Agreements- Section 115(d)(1) of the Federal Oil and Gas Royalty Management Act of 1982 (
(b) Subpoenas- Section 115(d)(2)(A) of the Federal Oil and Gas Royalty Management Act of 1982 (
SEC. 311. APPEALS AND FINAL AGENCY ACTION.
Paragraphs (1) and (2) of section 115(h) the Federal Oil and Gas Royalty Management Act of 1982 (
SEC. 312. ASSESSMENTS.
Section 116 of the Federal Oil and Gas Royalty Management Act of 1982 (
SEC. 313. COLLECTION AND PRODUCTION ACCOUNTABILITY.
(a) Pilot Project- Within 2 years after the date of enactment of this Act, the Secretary shall complete a pilot project with willing operators of oil and gas leases on the Outer Continental Shelf that assesses the costs and benefits of automatic transmission of oil and gas volume and quality data produced under Federal leases on the Outer Continental Shelf in order to improve the production verification systems used to ensure accurate royalty collection and audit.CommentsClose CommentsPermalink
(b) Report- The Secretary shall submit to Congress a report on findings and recommendations of the pilot project within 3 years after the date of enactment of this Act.CommentsClose CommentsPermalink
SEC. 314. NATURAL GAS REPORTING.
The Secretary shall, within 180 days after the date of enactment of this Act, implement the steps necessary to ensure accurate determination and reporting of BTU values of natural gas from all Federal oil and gas leases to ensure accurate royalty payments to the United States. Such steps shall include, but not be limited to--CommentsClose CommentsPermalink
(1) establishment of consistent guidelines for onshore and offshore BTU information from gas producers;CommentsClose CommentsPermalink
(2) development of a procedure to determine the potential BTU variability of produced natural gas on a by-reservoir or by-lease basis;CommentsClose CommentsPermalink
(3) development of a procedure to adjust BTU frequency requirements for sampling and reporting on a case-by-case basis;CommentsClose CommentsPermalink
(4) systematic and regular verification of BTU information; andCommentsClose CommentsPermalink
(5) revision of the ‘MMS-2014’ reporting form to record, in addition to other information already required, the natural gas BTU values that form the basis for the required royalty payments.CommentsClose CommentsPermalink
SEC. 315. PENALTY FOR LATE OR INCORRECT REPORTING OF DATA.
(a) In General- The Secretary shall issue regulations by not later than 1 year after the date of enactment of this Act that establish a civil penalty for late or incorrect reporting of data under the Federal Oil and Gas Royalty Management Act of 1982 (
(b) Amount- The amount of the civil penalty shall be--CommentsClose CommentsPermalink
(1) an amount (subject to paragraph (2)) that the Secretary determines is sufficient to ensure filing of data in accordance with that Act; andCommentsClose CommentsPermalink
(2) not less than $10 for each failure to file correct data in accordance with that Act.CommentsClose CommentsPermalink
(c) Content of Regulations- Except as provided in subsection (b), the regulations issued under this section shall be substantially similar to part 216.40 of title 30, Code of Federal Regulations, as most recently in effect before the date of enactment of this Act.CommentsClose CommentsPermalink
SEC. 316. REQUIRED RECORDKEEPING.
Within 1 year after the date of enactment of this Act, the Secretary shall publish final regulations concerning required recordkeeping of natural gas measurement data as set forth in part 250.1203 of title 30, Code of Federal Regulations (as in effect on the date of enactment of this Act), to include operators and other persons involved in the transporting, purchasing, or selling of gas under the requirements of that rule, under the authority provided in section 103 of the Federal Oil and Gas Royalty Management Act of 1982 (
SEC. 317. SHARED CIVIL PENALTIES.
Section 206 of the Federal Oil and Gas Royalty Management Act of 1982 (
SEC. 318. ENTITLEMENTS.
Not later than 180 days after the date of enactment of this Act, the Secretary shall publish final regulations prescribing when a Federal lessee or designee must report and pay royalties on the volume of oil and gas it takes under either a Federal or Indian lease or on the volume to which it is entitled to based upon its ownership interest in the Federal or Indian lease. The Secretary shall give consideration to requiring 100 percent entitlement reporting and paying based upon the lease ownership.CommentsClose CommentsPermalink
SEC. 319. LIMITATION ON ROYALTY IN-KIND PROGRAM.
Section 36 of the Mineral Leasing Act (
SEC. 320. APPLICATION OF ROYALTY TO OIL THAT IS SAVED, REMOVED, SOLD, OR DISCHARGED UNDER OFFSHORE OIL AND GAS LEASES.
Section 8(a) of the Outer Continental Shelf Lands Act (
‘(10)(A) Any royalty under a lease under this section shall apply to all oil that is saved, removed, sold, or discharged, without regard to whether any of the oil is unavoidably lost or used on, or for the benefit of, the lease.CommentsClose CommentsPermalink
‘(B) In this paragraph the term ‘discharged’ means any emission (other than natural seepage), intentional or unintentional, and includes, but is not limited to, spilling, leaking, pumping, pouring, emitting, emptying, or dumping.’.CommentsClose CommentsPermalink
SEC. 321. DISPOSITION OF REVENUE.
(a) Use for Safety, Inspection, and Enforcement- Of the amounts received by the United States under subtitle B of title II and this title--CommentsClose CommentsPermalink
(1) there shall be available to the Secretary, the Administrator of the National Ocean and Atmospheric Administration, and the Commandant of the Coast Guard, without further appropriation, such sums as may be necessary to carry out any duties or responsibilities related to safety, inspection, and enforcement authorities provided this Act; andCommentsClose CommentsPermalink
(2) there shall be available, without further appropriation, $48,000,000 for each of the fiscal years 2012 through 2016 to carry out the functions described in section 634.CommentsClose CommentsPermalink
(b) Use of Amounts for Deficit Reduction- Notwithstanding any other provision of law, any amounts received by the United States under this title that are not used in a given calendar year shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.CommentsClose CommentsPermalink
TITLE IV--GULF OF MEXICO RESTORATIONCommentsClose CommentsPermalink
TITLE IV--GULF OF MEXICO RESTORATIONCommentsClose CommentsPermalink
SEC. 401. SHORT TITLE.
This title may be cited as the ‘Gulf Coast Restoration Act’.CommentsClose CommentsPermalink
SEC. 402. GULF COAST ECOSYSTEM RESTORATION.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(1) CHAIR- The term ‘Chair’ means the Chair of the Task Force appointed under subsection (d)(3).CommentsClose CommentsPermalink
(2) STATE COASTAL ECOSYSTEM RESTORATION PLAN- The term ‘State Coastal Ecosystem Restoration Plan’ means a plan submitted under subsection (c) by a qualifying State to the Task Force.CommentsClose CommentsPermalink
(3) FUND- The term ‘Fund’ means the Gulf Coast Ecosystem Restoration Fund established by subsection (b)(2)(A).CommentsClose CommentsPermalink
(4) GOVERNORS- The term ‘Governors’ means the Governors of each of the States of Alabama, Florida, Louisiana, Mississippi, and Texas.CommentsClose CommentsPermalink
(5) GULF COAST ECOSYSTEM- The term ‘Gulf Coast ecosystem’ means the coastal zones, as determined pursuant to the Coastal Zone Management Act of 1972 (
(6) SECRETARY- The term ‘Secretary’ means the Secretary of the Interior.CommentsClose CommentsPermalink
(7) QUALIFYING STATE- The term ‘qualifying State’ means each of the States of Alabama, Florida, Louisiana, Mississippi, and Texas.CommentsClose CommentsPermalink
(8) TASK FORCE- The term ‘Task Force’ means the Gulf Coast Ecosystem Restoration Task Force established by subsection (d).CommentsClose CommentsPermalink
(b) Gulf Coast Ecosystem Restoration-CommentsClose CommentsPermalink
(1) IN GENERAL- In accordance with this section, the Chair shall review and approve or disapprove State Coastal Ecosystem Restoration Plans submitted by the Governors that provide for restoration activities with respect to the Gulf Coast ecosystem.CommentsClose CommentsPermalink
(2) GULF COAST ECOSYSTEM RESTORATION FUND-CommentsClose CommentsPermalink
(A) ESTABLISHMENT- There is established in the Treasury of the United States a fund to be known as the ‘Gulf Coast Ecosystem Restoration Fund’.CommentsClose CommentsPermalink
(B) TRANSFERS TO FUND- Notwithstanding any other provision of law, the Secretary of the Treasury shall deposit into the Fund amounts equal to not less than 80 percent of any amounts collected by the United States as penalties, settlements, or fines under sections 309 and 311 of the Federal Water Pollution Control Act (
(C) AUTHORIZED USES- The Fund shall be available to the Chair for the conservation, protection, and restoration of the Gulf Coast ecosystem in accordance with State Coastal Ecosystem Restoration Plans submitted by the Governors and approved by the Chair under this section.CommentsClose CommentsPermalink
(3) DISBURSEMENT- The Chair shall disburse to each qualifying State for which the Chair has approved a State Coastal Ecosystem Restoration Plan under this section such funds as are allocated to the qualifying State under this section.CommentsClose CommentsPermalink
(4) USE OF FUNDS BY QUALIFYING STATE- A qualifying State shall use all amounts received under this section, including any amount deposited in a trust fund that is administered by the State and dedicated to uses consistent with this section, in accordance with all applicable Federal and State law, only for 1 or more of the following purposes:CommentsClose CommentsPermalink
(A) Projects and activities for the conservation, protection, or restoration of coastal areas, including wetlands.CommentsClose CommentsPermalink
(B) Mitigation of damage to fish, wildlife, or natural resources.CommentsClose CommentsPermalink
(C) Planning assistance and the administrative costs of complying with this section.CommentsClose CommentsPermalink
(D) Implementation of a federally approved marine, coastal, or comprehensive conservation management plan.CommentsClose CommentsPermalink
(c) State Coastal Ecosystem Restoration Plan-CommentsClose CommentsPermalink
(1) SUBMISSION OF STATE PLANS-CommentsClose CommentsPermalink
(A) IN GENERAL- Not later than October 1, 2011, the Governor of a qualifying State shall submit to the Chair a State Coastal Ecosystem Restoration Plan.CommentsClose CommentsPermalink
(B) PUBLIC PARTICIPATION- In carrying out subparagraph (A), the Governor shall solicit local input and provide for public participation in the development of the plan.CommentsClose CommentsPermalink
(2) APPROVAL-CommentsClose CommentsPermalink
(A) IN GENERAL- The Chair must approve a plan of a qualifying State submitted under paragraph (1) before disbursing any amount to the qualifying State under this section.CommentsClose CommentsPermalink
(B) REQUIRED COMPONENTS- The Chair shall approve a plan submitted by a qualifying State under paragraph (1) if--CommentsClose CommentsPermalink
(i) the Chair determines that the plan is consistent with the uses described in subsection (b); andCommentsClose CommentsPermalink
(ii) the plan contains--CommentsClose CommentsPermalink
(I) the name of the State agency that will have the authority to represent and act on behalf of the State in dealing with the Secretary for purposes of this section;CommentsClose CommentsPermalink
(II) a program for the implementation of the plan that describes how the amounts provided under this section to the qualifying State will be used; andCommentsClose CommentsPermalink
(III) a certification by the Governor that ample opportunity has been provided for public participation in the development and revision of the plan.CommentsClose CommentsPermalink
(3) AMENDMENTS- Any amendment to a plan submitted under paragraph (1) shall be--CommentsClose CommentsPermalink
(A) developed in accordance with this subsection; andCommentsClose CommentsPermalink
(B) submitted to the Chair for approval or disapproval under paragraph (4).CommentsClose CommentsPermalink
(4) PROCEDURE- Not later than 60 days after the date on which a plan or amendment to a plan is submitted under paragraph (1) or (3), respectively, the Chair shall approve or disapprove the plan or amendment.CommentsClose CommentsPermalink
(d) Gulf Coast Ecosystem Restoration Task Force-CommentsClose CommentsPermalink
(1) ESTABLISHMENT- There is established the Gulf Coast Ecosystem Restoration Task Force.CommentsClose CommentsPermalink
(2) MEMBERSHIP- The Task Force shall consist of the following members, or in the case of a Federal agency, a designee at the level of Assistant Secretary or the equivalent:CommentsClose CommentsPermalink
(A) The Secretary.CommentsClose CommentsPermalink
(B) The Secretary of Commerce.CommentsClose CommentsPermalink
(C) The Secretary of the Army.CommentsClose CommentsPermalink
(D) The Attorney General.CommentsClose CommentsPermalink
(E) The Secretary of Homeland Security.CommentsClose CommentsPermalink
(F) The Administrator of the Environmental Protection Agency.CommentsClose CommentsPermalink
(G) The Commandant of the Coast Guard.CommentsClose CommentsPermalink
(H) The Secretary of Transportation.CommentsClose CommentsPermalink
(I) The Secretary of Agriculture.CommentsClose CommentsPermalink
(J) A representative of each affected Indian tribe, appointed by the Secretary based on the recommendations of the tribal chairman.CommentsClose CommentsPermalink
(K) Two representatives of each of the States of Alabama, Florida, Louisiana, Mississippi, and Texas, appointed by the Governor of each State, respectively.CommentsClose CommentsPermalink
(L) Two representatives of local government within each of the States of Alabama, Florida, Louisiana, Mississippi, and Texas, appointed by the Governor of each State, respectively.CommentsClose CommentsPermalink
(3) CHAIR- The Chair of the Task Force shall be appointed by the President from among the members under paragraph (2) who are Federal officials.CommentsClose CommentsPermalink
(4) DUTIES OF THE TASK FORCE- The Task Force shall--CommentsClose CommentsPermalink
(A) consult with, and provide recommendations to, the Chair regarding the approval of State Coastal Ecosystem Restoration Plans;CommentsClose CommentsPermalink