To amend the Outer Continental Shelf Lands Act to allow certain coastal States to share in qualified outer Continental Shelf revenues.

October 3, 2005

Mr. WARNER introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources

To amend the Outer Continental Shelf Lands Act to allow certain coastal States to share in qualified outer Continental Shelf revenues.

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 `Outer Continental Shelf Revenue Sharing Act of 2005'.

SEC. 2. OUTER CONTINENTAL SHELF REVENUE SHARING.

Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 1356a) is amended--

(1) in subsection (a)--

(A) by striking paragraph (7);

(B) by redesignating paragraphs (8), (9), and (10) as paragraphs (7), (8), and (9), respectively;

(C) in paragraph (8) (as redesignated by subparagraph (B)), by striking subparagraph (B) and inserting the following:

`(B) INCLUSION- The term `producing State' includes any State that begins production on a leased tract on or after the date of enactment of the Outer Continental Shelf Revenue Sharing Act of 2005, regardless of whether the leased tract was on any date subject to a leasing moratorium.'; and

(D) in paragraph (9) (as redesignated by subparagraph (B)), by striking subparagraph (C); and

(2) in subsection (b)(4), by striking subparagraph (E).

SEC. 3. ESTABLISHMENT OF SEAWARD LATERAL BOUNDARIES FOR COASTAL STATES.

Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended--

(1) by inserting `(i)' after `(A)';

(2) in the first sentence--

(A) by striking `President shall' and inserting `Secretary shall by regulation'; and

(B) by inserting before the period at the end the following: `not later than 180 days after the date of enactment of the Outer Continental Shelf Revenue Sharing Act of 2005'; and

(3) by adding at the end the following:

`(ii)(I) For purposes of this Act (including determining boundaries to authorize leasing and preleasing activities and any attributing revenues under this Act and calculating payments to producing States and coastal political subdivisions under section 31), the Secretary shall delineate the lateral boundaries between coastal States in areas of the Outer Continental shelf under exclusive Federal jurisdiction, to the extent of the exclusive economic zone of the United States, in accordance with article 15 of the United Nations Convention on the Law of the Sea of December 10, 1982.

`(II) This clause shall not affect any right or title to Federal submerged land on the outer Continental Shelf.'.

SEC. 4. OPTION TO PETITION FOR LEASING WITHIN CERTAIN AREAS ON THE OUTER CONTINENTAL SHELF.

Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 1341) is amended by adding at the end the following:

`(g) Leasing Within the Seaward Lateral Boundaries of Coastal States-

`(1) DEFINITION OF AFFECTED AREA- In this subsection, the term `affected area' means any area located--

`(A) in the areas of northern, central, and southern California and the areas of Oregon and Washington;

`(B) in the north, middle, or south planning area of the Atlantic Ocean;

`(C) in the eastern Gulf of Mexico planning area and lying--

`(i) south of 26 degrees north latitude; and

`(ii) east of 86 degrees west longitude; or

`(D) in the Straits of Florida.

`(2) RESTRICTIONS ON LEASING- The Secretary shall not offer for offshore leasing, preleasing, or any related activity--

`(A) any area located on the outer Continental Shelf that, as of the date of enactment of this subsection, is designated as a marine sanctuary under the Marine Protection, Research, and Sanctuaries Act of 1972 (33 U.S.C. 1401 et seq.); or

`(B) except as provided in paragraphs (3) and (4), during the period beginning on the date of enactment of this subsection and ending on June 30, 2012, any affected area.

`(3) RESOURCE ASSESSMENTS-

`(A) IN GENERAL- Beginning on the date on which the Secretary delineates seaward lateral boundaries under section 4(a)(2)(A)(ii), a Governor of a State in which an affected area is located, with the consent of the legislature of the State, may submit to the Secretary a petition requesting a resource assessment of any area within the seaward lateral boundary of the State.

`(B) ELIGIBLE RESOURCES- A petition for a resource assessment under subparagraph (A) may be for--

`(i) oil and gas leasing;

`(ii) gas-only leasing; or

`(iii) any other energy source leasing, including renewable energy leasing.

`(C) ACTION BY SECRETARY- Not later than 90 days after receipt of a petition under subparagraph (A), the Secretary shall approve the petition, unless the Secretary determines that a resource assessment of the area would create an unreasonable risk of harm to the marine, human, or coastal environment of the State.

`(D) FAILURE TO ACT- If the Secretary fails to approve or deny a petition in accordance with subparagraph (C)--

`(i) the petition shall be considered to be approved; and

`(ii) a resource assessment of any appropriate area shall be carried out as soon as practicable.

`(E) SUBMISSION TO STATE- As soon as practicable after the date on which a petition is approved under subparagraph (C) or (D), the Secretary shall--

`(i) complete the resource assessment for the area; and

`(ii) submit the completed resource assessment to the State.

`(4) PETITION FOR LEASING-

`(A) IN GENERAL- On receipt of a resource assessment under paragraph (3)(E)(ii), the Governor of a State in which an affected area is located, with the consent of the legislature of the State, may submit to the Secretary a petition requesting that the Secretary make available any land that is within the seaward lateral boundaries of the State (as established under section 4(a)(2)(A)(ii)) and that is greater than 20 miles from the coastline of the State for the conduct of offshore leasing, pre-leasing, or related activities with respect to--

`(i) oil and gas leasing;

`(ii) gas-only leasing; or

`(iii) any other energy source leasing, including renewable energy leasing.

`(B) ACTION BY SECRETARY- Not later than 90 days after receipt of a petition under subparagraph (A), the Secretary shall approve the petition, unless the Secretary determines that leasing the area would create an unreasonable risk of harm to the marine, human, or coastal environment of the State.

`(C) FAILURE TO ACT- If the Secretary fails to approve or deny a petition in accordance with subparagraph (B)--

`(i) the petition shall be considered to be approved; and

`(ii) any appropriate area shall be made available for oil and gas leasing, gas-only leasing, or any other energy source leasing, including renewable energy leasing.

`(5) REVENUE SHARING-

`(A) IN GENERAL- Beginning on the date on which production begins in an area under this subsection, the State shall, without further appropriation, share in any qualified outer Continental Shelf revenues of the production under section 31.

`(B) APPLICABLE LAW-

`(i) IN GENERAL- Except as provided in clause (ii), a State shall not be required to comply with subsections (c) and (d) of section 31 to share in qualified outer Continental Shelf revenues under subparagraph (A).

`(ii) EXCEPTION- Of any qualified outer Continental Shelf revenues received by a State (including a political subdivision of a State) under subparagraph (A), at least 25 percent shall be used for 1 or more of the purposes described in section 31(d)(1).

`(6) EFFECT- Nothing in this subsection affects any right relating to an area described in paragraph (1) or (2) under a lease that was in existence on the day before the date of enactment of this subsection.'.

SEC. 5. REGULATIONS.

(a) In General- The Secretary of the Interior shall issue such regulations as are necessary to carry out this Act and the amendments made by this Act, including regulations establishing procedures for entering into gas-only leases.

(b) Gas-Only Leases- In issuing regulations establishing procedures for entering into gas-only leases, the Secretary shall--

(1) ensure that gas-only leases under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) are not available in a State that (as of the day before the date of enactment of this Act) did not contain an affected area (as defined in section 12(g)(1) of that Act (as added by section 4)); and

(2) define `natural gas' as--

(A) unmixed natural gas; or

(B) any mixture of natural or artificial gas (including compressed or liquefied petroleum gas) and condensate recovered from natural gas.

END