II
110th CONGRESS
2d Session
S. 2953
IN THE SENATE OF THE UNITED STATES
May 1, 2008
Mr. Craig (for himself, Mr. Warner, and Mr. Inhofe) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources
A BILL
To provide for the development and inventory of certain outer Continental Shelf resources, to suspend petroleum acquisition for the Strategic Petroleum Reserve, and for other purposes.
Short title
This Act may be cited as
the Domestic Offshore Energy Security
Act of 2008
or the DOES Act
.
Development and inventory of certain outer Continental Shelf resources
Definition of United States person
In this section, the term United States person means—
any United States citizen or alien lawfully admitted for permanent residence in the United States; and
any person other than an individual, if 1 or more individuals described in paragraph (1) own or control at least 51 percent of the securities or other equity interest in the person.
Authorization of activities and exports involving hydrocarbon resources by United States persons
Notwithstanding any other provision of law (including a regulation), United States persons (including agents and affiliates of those United States persons) may—
engage in any transaction necessary for the exploration for and extraction of hydrocarbon resources from any portion of any foreign exclusive economic zone that is contiguous to the exclusive economic zone of the United States; and
export without license authority all equipment necessary for the exploration for or extraction of hydrocarbon resources described in paragraph (1).
Travel in connection with authorized hydrocarbon exploration and extraction activities
Section 910 of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7209) is amended by inserting after subsection (b) the following:
General license authority for travel-related expenditures by persons engaging in hydrocarbon exploration and extraction activities
In general
The Secretary of the Treasury shall, authorize under a general license the travel-related transactions listed in section 515.560(c) of title 31, Code of Federal Regulations, for travel to, from or within Cuba in connection with exploration for and the extraction of hydrocarbon resources in any part of a foreign maritime Exclusive Economic Zone that is contiguous to the United States’ Exclusive Economic Zone.
Persons authorized
Persons authorized to travel to Cuba under this section include full-time employees, executives, agents, and consultants of oil and gas producers, distributors, and shippers.
.
Moratorium of oil and gas leasing in certain areas of the Gulf of Mexico
In general
Section 104(a) of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109–432) is amended—
by striking paragraph (1);
in paragraph (2),
by striking 125 miles
and inserting 45
miles
;
in paragraph (3),
by striking 100 miles
each place it appears and inserting
45 miles
; and
by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively.
Regulations
In general
The Secretary of the Interior shall promulgate regulations that establish appropriate environmental safeguards for the exploration and production of oil and natural gas on the outer Continental Shelf.
Minimum requirements
At a minimum, the regulations shall include—
provisions requiring surety bonds of sufficient value to ensure the mitigation of any foreseeable incident;
provisions assigning liability to the leaseholder in the event of an incident causing damage or loss, regardless of the negligence of the leaseholder or lack of negligence;
provisions no less stringent than those contained in the Spill Prevention, Control, and Countermeasure regulations promulgated under the Oil Pollution Act of 1990 (33 U.S.C. 2701 et seq.);
provisions ensuring that—
no facility for the exploration or production of resources is visible to the unassisted eye from any shore of any coastal State; and
the impact of offshore production facilities on coastal vistas is otherwise mitigated;
provisions to ensure, to the maximum extent practicable, that exploration and production activities will result in no significant adverse effect on fish or wildlife (including habitat), subsistence resources, or the environment; and
provisions that will impose seasonal limitations on activity to protect breeding, spawning, and wildlife migration patterns.
Conforming amendment
Section 105 of the Department of the Interior,
Environment, and Related Agencies Appropriations Act, 2006 (Public Law 109–54;
119 Stat. 521) (as amended by section 103(d) of the Gulf of Mexico Energy
Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109–432)) is amended by
inserting and any other area that the Secretary of the Interior may
offer for leasing, preleasing, or any related activity under section 104 of
that Act
after 2006)
.
Inventory of outer Continental Shelf oil and natural gas resources off southeastern coast of the United States
In general
The Secretary of the Interior (referred to in this subsection as the Secretary) may conduct an inventory of oil and natural gas resources beneath the waters of the outer Continental Shelf (as defined in section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331)) off of the coast of the States of Virginia, North Carolina, South Carolina, or Georgia in accordance with this subsection.
Best available technology
In conducting the inventory, the Secretary shall use the best technology available to obtain accurate resource estimates.
Request by Governor
The Secretary may conduct an inventory under this subsection off the coast of a State described in paragraph (1) only if the Governor of the State requests the inventory.
Reports
The Secretary shall submit to Congress and the requesting Governor a report on any inventory conducted under this subsection.
Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this subsection.
Enhanced oil recovery
Section 354(c)(4)(B) of the Energy Policy Act of 2005 (42 U.S.C. 15910(c)(4)(B)) is amended—
in clause (iii), by striking
and
at the end;
in clause (iv), by striking the period at
the end and inserting ; and
; and
by adding at the end the following:
are carried out in geologically challenging fields.
.
Suspension of petroleum acquisition for Strategic Petroleum Reserve
In general
Except as provided in subsection (b) and notwithstanding any other provision of law, during calendar year 2008—
the Secretary of the Interior shall suspend acquisition of petroleum for the Strategic Petroleum Reserve through the royalty-in-kind program; and
the Secretary of Energy shall suspend acquisition of petroleum for the Strategic Petroleum Reserve through any other acquisition method.
Resumption
Not earlier than 30 days after the date on which the President notifies Congress that the President has determined that the weighted average price of petroleum in the United States for the most recent 90-day period is $75 or less per barrel—
the Secretary of the Interior may resume acquisition of petroleum for the Strategic Petroleum Reserve through the royalty-in-kind program; and
the Secretary of Energy may resume acquisition of petroleum for the Strategic Petroleum Reserve through any other acquisition method.