S.Amdt. 4747

1. Rewrites page 17, line 19 through page 18, line 17

   ReplacesPrinted page

   Removes page 17, line 19 through page 18, line 17 of the printed bill. See that page

   Inserted: (f) Limitations on Amount of Distributed Qualified Outer Continental Shelf Revenues and Covered Revenues.--

   Inserted: (1) In general.--Subject to paragraph (2), the total amount of qualified outer Continental Shelf revenues and covered revenues made available under subsection (a)(2) and section 6(j)(1)(B) shall not exceed $500,000,000 for each of fiscal years 2016 through 2055.

   Inserted: (2) Expenditures.--For the purpose of paragraph (1), for each of fiscal years 2016 through 2055, expenditures under subsection (a)(2) and section 6(j)(1)(B) shall be net of receipts from that fiscal year from any area in the 181 Area in the Eastern Planning Area, the 181 South Area, or any area off the coastline of a covered State.

   Inserted: (3) Pro rata reductions.--If paragraph (1) limits the amount of qualified outer Continental Shelf revenue or covered revenues that would be paid under subparagraphs (A) and (B) of subsection (a)(2) or clauses (i) and (ii) of section 6(j)(1)(B)--

   Inserted: (A) the Secretary shall reduce the amount of qualified outer Continental Shelf revenue and covered revenue provided to each recipient on a pro rata basis; and

   Inserted: (B) any remainder of the qualified outer Continental Shelf revenues and covered revenues shall revert to the general fund of the Treasury.

   Inserted: SEC. 6. OFFSHORE OIL AND GAS LEASING IN AREAS OUTSIDE THE GULF OF MEXICO.

   Inserted: (a) Definitions.--In this section:

   Inserted: (1) Adjacent zone.--The term "Adjacent Zone" means the Adjacent Zone of each State, as defined by the lines extending seaward and defining the adjacent Zone of each State indicated on the maps for each outer Continental Shelf region entitled--

   Inserted: (A) "Alaska OCS Region State Adjacent Zone and OCS Planning Areas";

   Inserted: (B) "Pacific OCS Region State Adjacent Zones and OCS Planning Areas"; and

   Inserted: (C) "Atlantic OCS Region State Adjacent Zones and OCS Planning Areas"; all of which are dated September 2005 and on file in the Office of the Director, Minerals Management Service.

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   Inserted: (2) Covered revenues.--

   Inserted: (A) In general.--The term "covered revenues" means all rentals, royalties, bonus bids, and other sums due and payable to the United States from leases entered into on or after the date of enactment of this Act in a moratorium area.

   Inserted: (B) Exclusions.--The term "covered revenues" does not include--

   Inserted: (i) revenues from the forfeiture of a bond or other surety securing obligations other than royalties, civil penalties, or royalties taken by the Secretary in-kind and not sold; or

   Inserted: (ii) revenues generated from leases subject to section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)).

   Inserted: (3) Covered state.--The term "covered State" means--

   Inserted: (A) a State for which--

   Inserted: (i) the Governor of the State requests the Secretary to allow natural gas or oil or natural gas leasing in a moratorium area; and

   Inserted: (ii) the Secretary allows the leasing; and

   Inserted: (B) effective for fiscal year 2017 and each fiscal year thereafter, a State--

   Inserted: (i) off which oil and gas activities on the outer Continental Shelf are conducted under a lease entered into on or after the date of enactment of this Act;

   Inserted: (ii) that is offshore of any State that is not a Gulf producing State; and

   Inserted: (iii) that does not have an area described in section 2(6)(B)(i) off the coast of the State, as determined on the basis of the administrative lines established by the Secretary under the notice published on January 3, 2006 (71 Fed. Reg. 127).

   Inserted: (4) Lease.--The term "lease" includes a natural gas lease under section 8(q) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(q)).

   Inserted: (5) Moratorium area.--The term "moratorium area" means--

   Inserted: (A) any area withdrawn from disposition by leasing in the Atlantic OCS Region or the Pacific OCS Region Planning Area under the "Memorandum on Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing Disposition", from 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998; and

   Inserted: (B) any area of the outer Continental Shelf (other than an area in the Gulf of Mexico) as to which Congress has denied the use of appropriated funds or other means for preleasing, leasing, or related activities.

   Inserted: (b) Prohibition Against Leasing.--Except as otherwise provided in this section, prior to June 30, 2012, the Secretary shall not offer a lease for oil and gas, or natural gas, in a moratorium area.

   Inserted: (c) Option to Petition for Extension of Withdrawal From Leasing.--

   Inserted: (1) Option to petition.--

   Inserted: (A) In general.--The Governor of a State may submit to the Secretary a petition requesting that the Secretary extend for a period of time described in subparagraph (B) the withdrawal from leasing in a moratorium area for all or part of any area within the Adjacent Zone of the State within 125 miles of the coastline of the State.

   Inserted: (B) Length of extension.--

   Inserted: (i) In general.--The period of time requested in a petition submitted under subparagraph (A) shall not exceed 5 years for each petition.

   Inserted: (ii) Limitation.--The Secretary shall not grant a petition submitted under subparagraph (A) that extends the remaining period of a withdrawal of an area from leasing for a total of more than 10 years.

   Inserted: (C) Multiple petitions.--A State may petition multiple times for a particular area, but not more than once per calendar year for any particular area.

   Inserted: (D) Contents of petition.--A petition submitted under subparagraph (A) may--

   Inserted: (i) apply to either oil and gas leasing or natural gas leasing, or both; and

   Inserted: (ii) request some areas to be withdrawn from all leasing and some areas only withdrawn from 1 type of leasing.

   Inserted: (2) Action by secretary.--Not later than 90 days after receipt of a petition submitted according to the guidelines described in paragraph (1), the Secretary shall approve the petition.

   Inserted: (3) Failure to act.--If the Secretary fails to approve a petition in accordance with paragraph (2), the petition shall be considered to be approved 90 days after the date on which the Secretary received the petition.

   Inserted: (d) Resource Estimates.--

   Inserted: (1) Requests.--At any time, the Governor of an affected State (acting on behalf of the State) may request the Secretary to provide a current estimate of proven and potential gas, or oil and gas, resources that may result, and resulting State revenues, in any moratorium area (or any part of the moratorium area the Governor identifies) adjacent to, or lying seaward of the coastline of, that State.

   Inserted: (2) Response of secretary.--Not later than 45 days after the date on which the Governor of a State requests an estimate under paragraph (1), the Secretary shall provide--

   Inserted: (A) a current estimate of proven and potential gas, or oil and gas, resources in any moratorium areas off the shore of a State;

   Inserted: (B) an estimate of potential revenues that could be shared under this Act if resources were developed and produced; and

   Inserted: (C) an explanation of the planning processes that could lead to the leasing, exploration, development, and production of the gas, or oil and gas, resources within the area identified.

   Inserted: (e) Availability of Certain Areas for Leasing.--

   Inserted: (1) Petition.--

   Inserted: (A) In general.--On consideration of the information received from the Secretary, the Governor (acting on behalf of the State of the Governor) may submit to the Secretary a petition requesting that the Secretary make available for leasing any portion of a moratorium area in the Adjacent Zone of the State.

   Inserted: (B) Contents.--In a petition under subparagraph (A), a Governor may request that an area described in subparagraph (A) be made available for leasing under subsection (b) or (q), or both, of section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337).

   Inserted: (2) Action by secretary.--Not later than 90 days after the date of receipt of a petition under paragraph (1), the Secretary shall approve the petition unless the Secretary determines that leasing in the affected area presents a significant likelihood of incidents associated with the development of resources that would cause serious harm or damage to the marine resources of the area or of an adjacent State.

   Inserted: (3) Failure to act.--If the Secretary fails to approve or deny a petition in accordance with paragraph (2), the petition shall be considered to be approved as of the date that is 90 days after the date of receipt of the petition.

   Inserted: (4) Treatment.--Notwithstanding any other provision of law, not later than 180 days after the date on which a petition is approved, or considered to be approved, under paragraph (2) or (3), the Secretary shall--

   Inserted: (A) treat the petition of the Governor under paragraph (1) as a proposed revision to a leasing program under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344); and

   Inserted: (B) except as provided in paragraph (5), expedite the revision of the 5-year outer Continental Shelf oil and gas leasing program in effect as of that date to include any lease sale for any area covered by the petition.

   Inserted: (5) Inclusion in subsequent plans.--

   Inserted: (A) In general.--If there are less than 18 months remaining in the 5-year outer Continental Shelf oil and gas leasing program described in paragraph (4)(B), the Secretary, without consultation with any State, shall include the areas covered by the petition in lease sales under the subsequent 5-year outer Continental Shelf oil and gas leasing program.

   Inserted: (B) Environmental assessment.--Before modifying a 5-Year outer Continental Shelf oil and gas leasing program under subparagraph (A), the Secretary shall complete an environmental assessment that describes any anticipated environmental effect of leasing in the area covered by the petition.

   Inserted: (6) Spending limitations.--Any Federal spending limitation with respect to preleasing, leasing, or a related activity in an area made available for leasing under this subsection shall terminate as of the date on which the petition of the Governor relating to the area is approved, or considered to be approved, under paragraph (2) or (3).

   Inserted: (7) Application.--This subsection shall not apply to--

   Inserted: (A) any area designated as a national marine sanctuary or a national wildlife refuge;

   Inserted: (B) any area not included in the outer Continental Shelf; or

   Inserted: (C) the Great Lakes (as defined in section 118(a)(3) of the Federal Water Pollution Control Act (33 U.S.C. 1268(a)(3)).

   Inserted: (8) Great lakes.--The Great Lakes (as defined in section 118(a)(3) of the Federal Water Pollution Control Act (33 U.S.C. 1268(a)(3)))--

   Inserted: (A) shall not be considered part of the outer Continental Shelf under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.); and

   Inserted: (B) shall not be subject to production.

   Inserted: (f) Neighboring State Concurrence.--

   Inserted: (1) Notice.--The Secretary shall provide notice to a neighboring State of any proposed lease of oil or natural gas in a moratorium area if the lease would be located within 20 miles of the nearest point on the coastline of the State.

   Inserted: (2) Objection.--Not later than 30 days after receiving the notice, the Governor of the State may object to the issuance of the lease on grounds that the lease presents a significant risk to environmental and economic resources of the State.

   Inserted: (3) Secretary review.--If the Secretary, after review of the objection and consultation with the adjacent State, concurs that the lease presents a significant risk described in paragraph (2), and that the risk cannot be reasonably mitigated, the Secretary shall not approve an exploration plan for the lease.

   Inserted: (4) Nonapplicability.--This subsection does not apply to a State covered by subsection (h).

   Inserted: (g) Natural Gas Leases.--

   Inserted: (1) In general.--Beginning with the 5-year outer Continental Shelf oil and gas leasing program for 2007 through 2012, the Secretary may issue a lease under this section that authorizes development and production of gas and associated condensate and other hydrocarbon liquids in a moratorium area in accordance with regulations issued under paragraph (2).

   Inserted: (2) Regulations.--Not later than October 1, 2006, the Secretary shall issue regulations that, for purposes of this subsection--

   Inserted: (A) define the term "natural gas" in a manner that includes--

   Inserted: (i) hydrocarbons and other substances in a gaseous state at atmospheric pressure and a temperature of 60 degrees Fahrenheit;

   Inserted: (ii) liquids that condense (gas liquids) from natural gas in the process of treatment, dehydration, decompression, or compression prior to the point for measuring volume and quality of the production established by the Secretary, acting through the Minerals Management Service;

   Inserted: (iii) other associated hydrocarbon liquids if the predominant component is natural gas and gas liquids; and

   Inserted: (iv) natural gas liquefied for transportation;

   Inserted: (B) provide that natural gas leases shall contain the same rights and obligations as oil and gas leases;

   Inserted: (C) provide that, in reviewing the adequacy of bids for natural gas leases, the Secretary, acting through the Minerals Management Service, shall exclude the value of any crude oil estimated to be discovered within the boundaries of the leasing area;

   Inserted: (D) provide for cancellation of a natural gas lease, with payment of the fair value of the lease rights canceled, if the Secretary determines that hydrocarbons other than natural gas and natural gas liquids will be the predominant production from the lease; and

   Inserted: (E) provide that, at the request and with the consent of the Governor of the State adjacent to the lease area, and with the consent of the lessee, an existing natural gas lease may be converted, without an increase in the rental royalty rate and without further payment in the nature of a lease bonus, to a lease under section 8(b) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(b)), in accordance with a process, to be established by the Secretary, that requires--

   Inserted: (i) consultation by the Secretary with the Governor of the State and the lessee with respect to the operating conditions of the lease, taking into consideration environmental resource conservation and recovery, economic factors, and other factors, as the Secretary determines to be relevant; and

   Inserted: (ii) compliance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

   Inserted: (3) Effect of other laws.--Any Federal law (including regulations) that applies to an oil and gas lease on the outer Continental Shelf shall apply to a natural gas lease issued under this subsection.

   Inserted: (h) Exchange of Leases for Areas Located Within 100 Miles of States Imposing a Moratorium.--

   Inserted: (1) In general.--Effective beginning on the date that is 180 days after the date of enactment of this Act, the lessee of an oil and gas lease in existence on the date of enactment of this Act for an area located completely within 100 miles of the coastline and within the Adjacent Zones of States that have extended a moratorium under subsection (c) shall have the option, without compensation, of exchanging the lease for a new oil and gas lease having a primary term of 5 years.

   Inserted: (2) Tracts.--For the area subject to the new lease, the lessee may select any unleased tract--

   Inserted: (A) at least part of which is located within the area between 100 and 125 miles from the coastline; and

   Inserted: (B) that is located--

   Inserted: (i) completely beyond 125 miles from the coastline; and

   Inserted: (ii) within the same Adjacent Zone of the adjacent State as the lease being exchanged.

   Inserted: (3) Administrative process.--

   Inserted: (A) In general.--The Secretary shall establish a reasonable administrative process through which a lessee may exercise the option of the lessee to exchange an oil and gas lease for a new oil and gas lease in accordance with this subsection.

   Inserted: (B) Relationship to other laws.--An exchange of leases conducted in accordance with this subsection (including the issuance of a new lease)--

   Inserted: (i) shall not be considered to be a major Federal action for purposes of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and

   Inserted: (ii) shall be considered in compliance with the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).

   Inserted: (C) Withdrawal.--The Secretary shall issue a new lease in exchange for the lease being exchanged notwithstanding that the area that will be subject to the lease may be withdrawn from leasing under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) or otherwise unavailable for leasing under any other law.

   Inserted: (4) Priority.--

   Inserted: (A) Bonus bid.--The Secretary shall give priority in the lease exchange process under this subsection based on the amount of the original bonus bid paid for the issuance of each lease to be exchanged.

   Inserted: (B) Exchange of partial tracts for full tracts.--The Secretary shall allow leases covering partial tracts to be exchanged for leases covering full tracts under this subsection conditioned on payment of additional bonus bids on a per-acre basis, as determined based on the average per acre of the original bonus bid per acre for the partial tract being exchanged.

   Inserted: (5) Cancellation of lease.--As part of the lease exchange process under this subsection, the Secretary shall cancel a lease that is exchanged under this subsection.

   Inserted: (6) Conditions for lease exchange.--For a lease to be cancelled and exchanged under this subsection--

   Inserted: (A) each lessee holding an interest in the lease must consent to cancellation of the leasehold interest of the lessee;

   Inserted: (B) each lessee must waive any rights to bring any litigation against the United States related to the transaction; and

   Inserted: (C) the plugging and abandonment requirements for any well located on any lease to be cancelled and exchanged under this subsection must be complied with by the lessees prior to the cancellation and exchange.

   Inserted: (i) Operating Restrictions.--A new lease issued under this section shall be subject to such national defense operating restrictions on the outer Continental Shelf tract covered by the new lease as apply on the date of issuance of the new lease.

   Inserted: (j) Disposition of Covered Revenues From Moratorium Areas.--

   Inserted: (1) In general.--Notwithstanding section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) and subject to the other provisions of this subsection, for each applicable fiscal year, the Secretary of the Treasury shall deposit--

   Inserted: (A) 50 percent of covered revenues in the general fund of the Treasury; and

   Inserted: (B) 50 percent of covered revenues in a special account in the Treasury from which the Secretary shall disburse--

   Inserted: (i) 75 percent to covered States in accordance with paragraph (2); and

   Inserted: (ii) 25 percent to provide financial assistance to States in accordance with section 6 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8), which shall be considered income to the Land and Water Conservation Fund for purposes of section 2 of that Act (16 U.S.C. 460l-5).

   Inserted: (2) Allocation among covered states and coastal political subdivisions.--

   Inserted: (A) Allocation among covered states for fiscal year 2007 and thereafter.--

   Inserted: (i) In general.--Subject to clause (ii), effective for fiscal year 2007 and each fiscal year thereafter, the amount made available under paragraph (1)(B)(i) shall be allocated to each covered State in amounts (based on a formula established by the Secretary by regulation) that are inversely proportional to the respective distances between the point on the coastline of each covered State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract.

   Inserted: (ii) Minimum allocation.--The amount allocated to a covered State each fiscal year under clause (i) shall be at least 10 percent of the amounts available under paragraph (1)(B)(i).

   Inserted: (B) Payments to coastal political subdivisions.--

   Inserted: (i) In general.--The Secretary shall pay 20 percent of the allocable share of each covered State, as determined under subparagraph (A), to the coastal political subdivisions of the covered State.

   Inserted: (ii) Allocation.--The amount paid by the Secretary to coastal political subdivisions shall be allocated to each coastal political subdivision in accordance with subparagraphs (B), (C), (D), and (E) of section 31(b)(4) of the Outer Continental Shelf Lands Act (43 U.S.C. 1356a(b)(4)).

   Inserted: (3) Timing.--The amounts required to be deposited under paragraph (1)(B) for the applicable fiscal year shall be made available in accordance with that paragraph during the fiscal year immediately following the applicable fiscal year.

   Inserted: (4) Authorized uses.--

   Inserted: (A) In general.--Subject to subparagraph (B), each covered State and coastal political subdivision shall use all amounts received under paragraph (2) in accordance with all applicable Federal and State laws, only for 1 or more of the following purposes:

   Inserted: (i) Projects and activities for the purposes of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses.

   Inserted: (ii) Mitigation of damage to fish, wildlife, or natural resources.

   Inserted: (iii) Implementation of a federally-approved marine, coastal, or comprehensive conservation management plan.

   Inserted: (iv) Mitigation of the impact of outer Continental Shelf activities through the funding of onshore infrastructure projects.

   Inserted: (v) Planning assistance and the administrative costs of complying with this section.

   Inserted: (B) Limitation.--Not more than 3 percent of amounts received by a covered State or coastal political subdivision under paragraph (1)(B) may be used for the purposes described in subparagraph (A)(v).

   Inserted: (5) Administration.--Amounts made available under paragraph (1)(B) shall--

   Inserted: (A) be made available, without further appropriation, in accordance with this subsection;

   Inserted: (B) remain available until expended; and

   Inserted: (C) be in addition to any amounts appropriated under--

   Inserted: (i) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.);

   Inserted: (ii) the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.); or

   Inserted: (iii) any other provision of law.

   Inserted: (k) Repeal of Requirement to Conduct Comprehensive Inventory of OCS Oil and Natural Gas Resources.--Section 357 of the Energy Policy Act of 2005 (42 U.S.C. 15912) is repealed.

   Original wording

   Beginning on page 17, strike line 19 and all that follows through page 18, line 17 and insert the following:

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As printed