S. 598

Deepwater Drilling Royalty Relief Prohibition Act

Latest

II

113th CONGRESS

1st Session

S. 598

IN THE SENATE OF THE UNITED STATES

March 18, 2013

Mrs. Feinstein (for herself and Mr. Nelson) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources

A BILL

To prohibit royalty incentives for deepwater drilling, and for other purposes.

1.

Short title

This Act may be cited as the Deepwater Drilling Royalty Relief Prohibition Act.

2.

Prohibition on royalty incentives for deepwater drilling

(a)

In general

Notwithstanding any other provision of law, the Secretary of the Interior shall not issue any oil or gas lease sale under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) with royalty-based incentives in any tract located in water depths of 400 meters or more on the outer Continental Shelf.

(b)

Royalty relief for deepwater production

Section 345 of the Energy Policy Act of 2005 (42 U.S.C. 15905) is repealed.

(c)

Royalty relief

Section 8(a)(3) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)) is amended by adding at the end the following:

(D)

Prohibition

Notwithstanding subparagraphs (A) through (C) or any other provision of law, the Secretary shall not reduce or eliminate any royalty or net profit share for any lease or unit located in water depths of 400 meters or more on the outer Continental Shelf.

.

(d)

Application

This section and the amendments made by this section—

(1)

apply beginning with the first lease sale held on or after the date of enactment of this Act for which a final notice of sale has not been published as of that date; and

(2)

do not apply to a lease in effect on the date of enactment of this Act.