S 338
112th CONGRESS
1st Session
S. 338
To prohibit royalty incentives for deepwater drilling, and
for other purposes.
IN THE SENATE OF THE UNITED STATES
February 14, 2011
Mrs. FEINSTEIN (for herself and Mr. NELSON of Florida) introduced the
following bill; which was read twice and referred to the Committee on
Energy and Natural Resources
A BILL
To prohibit royalty incentives for deepwater drilling, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Deepwater Drilling Royalty Relief Prohibition
Act'.
SEC. 2. PROHIBITION ON ROYALTY INCENTIVES FOR DEEPWATER DRILLING.
(a) In General- Notwithstanding any other provision of law, the Secretary
of the Interior shall not issue any oil or gas lease sale under the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) with royalty-based
incentives in any tract located in water depths of 400 meters or more
on the outer Continental Shelf.
(b) Royalty Relief for Deep Water Production- Section 345 of the Energy
Policy Act of 2005 (42 U.S.C. 15905) is repealed.
(c) Royalty Relief- Section 8(a)(3) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(a)(3)) is amended by adding at the end the following:
`(D) PROHIBITION- Notwithstanding subparagraphs (A) through (C)
or any other provision of law, the Secretary shall not reduce or
eliminate any royalty or net profit share for any lease or unit
located in water depths of 400 meters or more on the outer Continental
Shelf.'.
(d) Application- This section and the amendments made by this section--
(1) apply beginning with the first lease sale held on or after the
date of enactment of this Act for which a final notice of sale has
not been published as of that date; and
(2) do not apply to a lease in effect on the date of enactment of
this Act.
END
