S.Amdt. 127Senate114th Congress (2015-2017)

S.Amdt. 127

What it does: Adds TITLE II--LEASE SALES wherever appropriate
Sponsored by Tim ScottSen. Tim Scott (R-SC)
Submitted January 22, 2015

What it changes

1 change to S. 1

Adds a section
  1. Adds TITLE II--LEASE SALES wherever appropriate

    Adds a title

    Inserted: TITLE II--LEASE SALES

    Inserted: SEC. 201. DEFINITIONS.

    Inserted: In this title:

    Inserted: (1) Director.--The term "Director" means the Director of the Bureau of Ocean Energy Management.

    Inserted: (2) Qualified revenues.--The term "qualified revenues" means all bonus bids, rentals, royalties, and other sums due and payable to the United States from all leases entered into after the date of enactment of this Act that cover an area in the South Atlantic planning area.

    Inserted: (3) Secretary.--The term "Secretary" means the Secretary of the Interior.

    Inserted: (4) South atlantic planning area.--The term "South Atlantic planning area" means the area of the outer Continental Shelf (as defined in section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331)) that is located between the northern lateral seaward administrative boundary of the Commonwealth of Virginia and the southernmost lateral seaward administrative boundary of the State of Georgia.

    Inserted: (5) State.--The term "State" means any of the following States:

    Inserted: (A) Georgia.

    Inserted: (B) North Carolina.

    Inserted: (C) South Carolina.

    Inserted: (D) Virginia.

    Show 45 more inserted paragraphs

    Inserted: SEC. 202. ENHANCING STATE RIGHTS.

    Inserted: (a) In General.--The Secretary shall promulgate regulations that establish management of the surface occupancy of each portion of the South Atlantic planning area for the applicable coastline of a State for any lease sale authorized under this Act to the effect that--

    Inserted: (1) the applicable State shall have sole authority to restrict or allow surface facilities above the waterline for the purpose of production of oil or gas resources in any area that is within 12 nautical miles seaward from the coastline of the State;

    Inserted: (2) unless permanent surface occupancy is authorized by a State, only sub-surface production facilities may be installed in areas that are located between the point that is 12 nautical miles from seaward from the coastline of the State and the point that is 20 nautical miles seaward from the coastline of the State;

    Inserted: (3) new offshore production facilities are encouraged and the impacts on coastal vistas are minimized, to the maximum extent practical; and

    Inserted: (4) onshore facilities that facilitate the development and production of the oil and gas resources of the South Atlantic planning area within 12 nautical miles seaward of the coastline of a State are allowed.

    Inserted: (b) Temporary Activities Not Affected.--Nothing in the regulations described in subsection (a) shall restrict, or give the States authority to restrict, temporary surface activities related to operations associated with outer Continental Shelf oil and gas leases.

    Inserted: SEC. 203. REINSTATEMENT OF VIRGINIA LEASE SALE 220.

    Inserted: Not later than 2 years after the date of enactment of this Act, the Secretary shall conduct Lease Sale 220 (as described in the notice of intent to prepare an environmental impact statement dated November 13, 2008 (73 Fed. Reg. 67201)).

    Inserted: SEC. 204. SOUTH CAROLINA LEASE SALE.

    Inserted: Notwithstanding the exclusion of the South Atlantic planning area in the outer Continental Shelf leasing program for fiscal years 2012-2017 prepared under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344), the Secretary shall conduct a lease sale not later than 2 years after the date of enactment of this Act in areas off the coast of the State of South Carolina--

    Inserted: (1) determined by the Secretary to have the most geologically promising hydrocarbon resources; and

    Inserted: (2) that constitute not less than 25 percent of the leasable area located within the offshore administrative boundaries of the State of South Carolina depicted in the notice entitled "Federal Outer Continental Shelf (OCS) Administrative Boundaries Extending from the Submerged Lands Act Boundary seaward to the Limit of the United States Outer Continental Shelf", published January 3, 2006 (71 Fed. Reg. 127).

    Inserted: SEC. 205. ENVIRONMENTAL IMPACT STATEMENT.

    Inserted: The Secretary shall complete a multisale environmental impact statement for each lease sale conducted under this title.

    Inserted: SEC. 206. SOUTH ATLANTIC PLANNING AREA LEASE SALES.

    Inserted: (a) In General.--The Secretary shall conduct 3 lease sales in the South Atlantic planning area before June 30, 2017, in areas--

    Inserted: (1) to be determined by the Secretary based on--

    Inserted: (A) analysis by the Bureau of Ocean Energy Management; and

    Inserted: (B) industry nomination; and

    Inserted: (2) determined by the Secretary to contain the most hydrocarbon resource potential.

    Inserted: (b) 2017-2022 Leasing Program.--The Secretary shall--

    Inserted: (1) include the South Atlantic planning area in the outer Continental Shelf leasing program for fiscal years 2017-2022 prepared under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344); and

    Inserted: (2) conduct 1 lease sale in the South Atlantic planning area during each year of the program, for a total of 5 lease sales.

    Inserted: SEC. 207. BALANCING OF MILITARY AND ENERGY PRODUCTION GOALS.

    Inserted: (a) In General.--In recognition that the outer Continental Shelf oil and gas leasing program and the domestic energy resources produced under the program are integral to national security, the Secretary and the Secretary of Defense shall work jointly in implementing lease sales under this Act--

    Inserted: (1) to preserve the ability of the Armed Forces of the United States to maintain an optimum state of readiness through the continued use of the outer Continental Shelf; and

    Inserted: (2) to allow effective exploration, development, and production of the oil, gas, and renewable energy resources of the United States.

    Inserted: (b) Prohibition on Conflicts With Military Operations.--No person may engage in any exploration, development, or production of oil or natural gas on the outer Continental Shelf under a lease issued under this Act that would conflict with any military operation, as determined in accordance with--

    Inserted: (1) the agreement entitled "Memorandum of Agreement between the Department of Defense and the Department of the Interior on Mutual Concerns on the Outer Continental Shelf" signed July 20, 1983; and

    Inserted: (2) any revision or replacement for the agreement described in paragraph (1) that is agreed to by the Secretary of Defense and the Secretary after that date but before the date of issuance of the lease under which the exploration, development, or production is conducted.

    Inserted: SEC. 208. REVENUE SHARING AND DEFICIT REDUCTION.

    Inserted: Notwithstanding section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338), each fiscal year the Secretary shall deposit--

    Inserted: (1) 37.5 percent of the qualified revenues in a special account in the Treasury, from which the Secretary shall allocate amounts in accordance with section 209;

    Inserted: (2) 12.5 percent of the qualified revenues dedicated towards deficit reduction; and

    Inserted: (3) 50 percent of the qualified revenues in the general fund of the Treasury.

    Inserted: SEC. 209. ALLOCATION TO STATES.

    Inserted: (a) In General.--Of the qualified revenues deposited in the account under section 208(1), 37.5 percent shall be distributed to each State--

    Inserted: (1) using the formula established under subsection (b); and

    Inserted: (2) in amounts that are inversely proportional to the respective distances between the point on the coastline of each State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract.

    Inserted: (b) Formula.--The formula used to make the calculation under subsection (a) shall be--

    Inserted: (1) established by the Secretary by regulation; and

    Inserted: (2) modeled after the final rule entitled "Allocation and Disbursement of Royalties, Rentals, and Bonuses--Oil and Gas, Offshore", dated December 23, 2008 (73 Fed. Reg. 78622).

    Inserted: (c) Minimum Allocation.--Each State shall be entitled to an amount equal to not less than 10 percent of the qualified revenues allocated under subsection (a).

    Inserted: (d) Use of Funds.--A State receiving amounts under this section may use the amounts in accordance with State law.

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As printed

SA 127. Mr. SCOTT submitted an amendment intended to be proposed by him to the bill S. 1, to approve the Keystone XL Pipeline; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE II--LEASE SALES

SEC. 201. DEFINITIONS.

In this title:

(1) Director.--The term “Director” means the Director of the Bureau of Ocean Energy Management.

(2) Qualified revenues.--The term “qualified revenues” means all bonus bids, rentals, royalties, and other sums due and payable to the United States from all leases entered into after the date of enactment of this Act that cover an area in the South Atlantic planning area.

(3) Secretary.--The term “Secretary” means the Secretary of the Interior.

(4) South atlantic planning area.--The term “South Atlantic planning area” means the area of the outer Continental Shelf (as defined in section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331)) that is located between the northern lateral seaward administrative boundary of the Commonwealth of Virginia and the southernmost lateral seaward administrative boundary of the State of Georgia.

(5) State.--The term “State” means any of the following States:

(A) Georgia.

(B) North Carolina.

(C) South Carolina.

(D) Virginia.

SEC. 202. ENHANCING STATE RIGHTS.

(a) In General.--The Secretary shall promulgate regulations that establish management of the surface occupancy of each portion of the South Atlantic planning area for the applicable coastline of a State for any lease sale authorized under this Act to the effect that--

(1) the applicable State shall have sole authority to restrict or allow surface facilities above the waterline for the purpose of production of oil or gas resources in any area that is within 12 nautical miles seaward from the coastline of the State;

(2) unless permanent surface occupancy is authorized by a State, only sub-surface production facilities may be installed in areas that are located between the point that is 12 nautical miles from seaward from the coastline of the State and the point that is 20 nautical miles seaward from the coastline of the State;

(3) new offshore production facilities are encouraged and the impacts on coastal vistas are minimized, to the maximum extent practical; and

(4) onshore facilities that facilitate the development and production of the oil and gas resources of the South Atlantic planning area within 12 nautical miles seaward of the coastline of a State are allowed.

(b) Temporary Activities Not Affected.--Nothing in the regulations described in subsection (a) shall restrict, or give the States authority to restrict, temporary surface activities related to operations associated with outer Continental Shelf oil and gas leases.

SEC. 203. REINSTATEMENT OF VIRGINIA LEASE SALE 220.

Not later than 2 years after the date of enactment of this Act, the Secretary shall conduct Lease Sale 220 (as described in the notice of intent to prepare an environmental impact statement dated November 13, 2008 (73 Fed. Reg. 67201)).

SEC. 204. SOUTH CAROLINA LEASE SALE.

Notwithstanding the exclusion of the South Atlantic planning area in the outer Continental Shelf leasing program for fiscal years 2012-2017 prepared under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344), the Secretary shall conduct a lease sale not later than 2 years after the date of enactment of this Act in areas off the coast of the State of South Carolina--

(1) determined by the Secretary to have the most geologically promising hydrocarbon resources; and

(2) that constitute not less than 25 percent of the leasable area located within the offshore administrative boundaries of the State of South Carolina depicted in the notice entitled “Federal Outer Continental Shelf (OCS) Administrative Boundaries Extending from the Submerged Lands Act Boundary seaward to the Limit of the United States Outer Continental Shelf”, published January 3, 2006 (71 Fed. Reg. 127).

SEC. 205. ENVIRONMENTAL IMPACT STATEMENT.

The Secretary shall complete a multisale environmental impact statement for each lease sale conducted under this title.

SEC. 206. SOUTH ATLANTIC PLANNING AREA LEASE SALES.

(a) In General.--The Secretary shall conduct 3 lease sales in the South Atlantic planning area before June 30, 2017, in areas--

(1) to be determined by the Secretary based on--

(A) analysis by the Bureau of Ocean Energy Management; and

(B) industry nomination; and

(2) determined by the Secretary to contain the most hydrocarbon resource potential.

(b) 2017-2022 Leasing Program.--The Secretary shall--

(1) include the South Atlantic planning area in the outer Continental Shelf leasing program for fiscal years 2017-2022 prepared under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344); and

(2) conduct 1 lease sale in the South Atlantic planning area during each year of the program, for a total of 5 lease sales.

SEC. 207. BALANCING OF MILITARY AND ENERGY PRODUCTION GOALS.

(a) In General.--In recognition that the outer Continental Shelf oil and gas leasing program and the domestic energy resources produced under the program are integral to national security, the Secretary and the Secretary of Defense shall work jointly in implementing lease sales under this Act--

(1) to preserve the ability of the Armed Forces of the United States to maintain an optimum state of readiness through the continued use of the outer Continental Shelf; and

(2) to allow effective exploration, development, and production of the oil, gas, and renewable energy resources of the United States.

(b) Prohibition on Conflicts With Military Operations.--No person may engage in any exploration, development, or production of oil or natural gas on the outer Continental Shelf under a lease issued under this Act that would conflict with any military operation, as determined in accordance with--

(1) the agreement entitled “Memorandum of Agreement between the Department of Defense and the Department of the Interior on Mutual Concerns on the Outer Continental Shelf” signed July 20, 1983; and

(2) any revision or replacement for the agreement described in paragraph (1) that is agreed to by the Secretary of Defense and the Secretary after that date but before the date of issuance of the lease under which the exploration, development, or production is conducted.

SEC. 208. REVENUE SHARING AND DEFICIT REDUCTION.

Notwithstanding section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338), each fiscal year the Secretary shall deposit--

(1) 37.5 percent of the qualified revenues in a special account in the Treasury, from which the Secretary shall allocate amounts in accordance with section 209;

(2) 12.5 percent of the qualified revenues dedicated towards deficit reduction; and

(3) 50 percent of the qualified revenues in the general fund of the Treasury.

SEC. 209. ALLOCATION TO STATES.

(a) In General.--Of the qualified revenues deposited in the account under section 208(1), 37.5 percent shall be distributed to each State--

(1) using the formula established under subsection (b); and

(2) in amounts that are inversely proportional to the respective distances between the point on the coastline of each State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract.

(b) Formula.--The formula used to make the calculation under subsection (a) shall be--

(1) established by the Secretary by regulation; and

(2) modeled after the final rule entitled “Allocation and Disbursement of Royalties, Rentals, and Bonuses--Oil and Gas, Offshore”, dated December 23, 2008 (73 Fed. Reg. 78622).

(c) Minimum Allocation.--Each State shall be entitled to an amount equal to not less than 10 percent of the qualified revenues allocated under subsection (a).

(d) Use of Funds.--A State receiving amounts under this section may use the amounts in accordance with State law.

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Senate amendment submitted

January 22, 2015

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Senate amendment submitted

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Senate amendment submitted

January 22, 2015