S.Amdt. 4288

1. Adds SEC. 2__. OUTER CONTINENTAL SHELF on page 79, between lines 3 and 4

   Adds a sectionPrinted page

   Inserted: SEC. 2__. OUTER CONTINENTAL SHELF.

   Inserted: Section 1004 of the Oil Pollution Act of 1990 (33 U.S.C. 2704) is amended by adding at the end the following:

   Inserted: "(e) Outer Continental Shelf.--

   Inserted: "(1) In general.--The liability for an incident on the outer Continental Shelf occurring during the period beginning on the date of enactment of this subsection and ending on December 31, 2025, shall be determined in accordance with this subsection.

   Inserted: "(2) Initial liability.--

   Inserted: "(A) In general.--Each lease for oil and gas exploration, production, or development issued by the Secretary of the Interior after the date of enactment of this subsection shall have, as a condition of the lease, a requirement that the lessee have and maintain financial protection in the form of liability insurance from private sources of such type and in such amounts as the Secretary of the Interior determines to be necessary to cover public liability claims in a minimum aggregate amount of $300,000,000.

   Inserted: "(B) Indemnification; public liability.--In a case in which financial protection is required for a lessee under subparagraph (A), the lessee shall, as a further condition of a lease for oil and gas exploration, production, or development, be required--

   Inserted: "(i) to execute and maintain an indemnification agreement to indemnify and hold harmless the lessee and other persons indemnified, as the interest of those persons may appear, from public liability arising from incidents on the outer Continental Shelf the liability claims with respect to which are in excess of the level of financial protection required of the lessee;

   Inserted: "(ii) to execute and maintain an agreement with the Secretary of the Interior stating that the United States and other parties affected by the incident are not liable for damages with respect to the incident, and including an affirmation that the lessee is the responsible party with respect to that liability; and

   Inserted: "(iii) to waive any immunity from public liability conferred by law.

   Inserted: "(3) Maximum liability of lessee.--A lessee that is a responsible party for an incident on the outer Continental Shelf for which liability claims exceed, in the aggregate, the minimum aggregate amount covered by liability insurance under paragraph (2) shall be liable for additional liability claims relating to the incident up to a maximum aggregate amount of--

   Inserted: "(A) $1,000,000,000; or

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   Inserted: "(B) such greater amount as may be required by the Secretary of the Interior.

   Inserted: "(4) Liability of industry.--

   Inserted: "(A) In general.--If an incident on the outer Continental Shelf results in liability claims exceeding, in the aggregate, the maximum aggregate amount to be paid by the responsible party under paragraph (3), the additional claims shall be paid by all other entities conducting oil and gas exploration, production, or development activities on the outer Continental Shelf as of the date of the incident, as determined by the Secretary of the Interior, in accordance with subparagraph (B).

   Inserted: "(B) Proportional payment.--The amount of liability claims to be paid under subparagraph (A) by an entity described in that subparagraph shall be determined by the Secretary of the Interior based on the proportion that--

   Inserted: "(i) the number of facilities operated by the entity on the outer Continental Shelf; bears to

   Inserted: "(ii) the total number of facilities operated by all entities on the outer Continental Shelf.".

   Original wording

   On page 79, between lines 3 and 4, add the following:

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As printed