StatA OCS Lands Act Amendments 1978 Sec 306(a)

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT, e.29

Public Law 95-372
95th Congress
An Act
To establish a policy for the management of oil and natural gas in the Outer
Ck)ntinental Shelf; to protect the marine and coastal environment; to amend
the Outer Continental Shelf Lands Act; and for other purposes.

P*' ' ^
[S. 9]

°

Be it enacted hy the Senate and House of Representatives of the
United States of America in Congress asserribled^ That this Act may be Outer
cited as the "Outer Continental Shelf Lands Act Amendments of Continental Sbelf
1978".

Lands Act
Amendments of
1978.
TITLE I—FINDINGS AND PURPOSES WITH RESPECT TO MANAGING 43 USC 1801
T H E RESOURCES OF T H E OUTER CONTINENTAL S H E L F
note.
Sec. 101. Findings.
Sec. 102. Purposes.
TABLE OF CONTENTS

TITLE II—AMENDMENTS TO THE OUTER CONTINENTAL
SHELF LANDS ACT
Sec. 201. Definitions.
Sec. 202. National policy for the Outer Continental Shelf.
Sec. 203. Laws applicable to the Outer Continental Shelf.
Sec. 204. Outer Continental Shelf exploration and development administration;
Sec. 205. Revision of bidding and lease administration.
Sec. 206. Outer Continental Shelf oil and gas exploration.
Sec. 207. Annual report.
Sec. 208. New sections of the Outer Continental Shelf Lands Act.
"Sec. 18. Outer Continental Shelf leasing program.
"Sec. 19. Coordination and consultation with affected States and local
governments.
"Sec. 20. Environmental studies.
"Sec. 21. Safety regulations.
"Sec. 22. Enforcement.
"Sec. 23. Citizen suits, court jurisdiction, and judicial review.
"Sec. 24. Remedies and penalties.
"Sec. 25. Oil and gas development and production.
"Sec. 26. Outer Continental Shelf oil and gas information program.
"Sec. 27. Federal purchase and disposition of oil and gas.
"Sec. 28. Limitation on export.
"Sec. 29. Restrictions on employment.
"Sec. 30. Documentation, registry, and manning requirements.".

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TITLE III—OFFSHORE OIL SPILL POLLUTION FUND
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec,

301.
302.
303.
304.
305.
306.
307.
308.
309.
310.
311.
312.
313.
314.
315.

Definitions.
F^md establishment, administration, and financing.
Damages and claimants.
Liability.
Financial responsibility.
Notification, designation, and advertisement.
Claims settlement.
Subrogation.
Jurisdiction and venue.
Relationship to other law.
Prohibition.
Penalties.
Authorization of appropriation.
Annual report.
Effective dates.

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92 STAT. 630

PUBLIC LAW 95-372—SEPT. 18, 1978
TITLE IV—FISHERMEN'S CONTINGENCY FUND
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

401.
402.
403.
404.
405.
406.
407.

Definitions.
Establishment of the Fishermen's Contingency F u n d ; fee collection.
Duties and powers.
Burden of proof.
Claim procedures and subrogation of rights.
Annual report.
Survey of obstructions on the Outer Continental Shelf.

TITLE V—AMENDMENTS TO THE COASTAL ZONE MANAGEMENT
ACT OF 1972
Sec. 501. Coastal energy impact program.
Sec. 502. Authorization of appropriations.
Sec. 503. Outer Continental Shelf grants.
._
Sec. 504. State management program.
j

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T I T L E VI—MISCELLANEOUS PROVISIONS
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

601.
602.
603.
604.
605.
606.

Review of shut-in or flaring wells.
Review and revision of royalty payments.
Natural gas distribution.
Antidiscrimination provisions.
Sunshine in Government.
Investigation of availability of oil and natural gas from the Outer
Continental Shelf.
Sec. 607. Recommendations for training program.
Sec. 608. Relationship to existing law.

TITLE I—FINDINGS AND PURPOSES W I T H RESPECT TO
MANAGING T H E RESOURCES O F T H E OUTER CONTINENTAL S H E L F
riNDINGS

43 use 1801.

-,

SEC. 101. The Congress finds and declares that—
(1) the demand for energy in the United States is increasing
and will continue to increase for the foreseeable future;
(2) domestic production of oil and gas has declined in recent
years;
(3) the United States has become increasingly dependent upon
imports of oil from foreign nations to meet domestic energy
demand;
(4) increasing reliance on imported oil is not inevitable, but is
rather subject to significant reduction by increasing the development of domestic sources of energy supply;
(5) consumption of natural gas in the United States has greatly
exceeded additions to domestic reserves in recent years;
(6) technology is or can be made available which will allow significantly increased domestic production of oil and gas without
undue harm or damage to the environment;
(7) the Outer Continental Shelf contains significant quantities
of oil and natural gas and is a vital national resource reserve which
must be carefully managed so as to realize fair value, to preserve
and maintain competition, and to reflect the public interest;
(8) there presently exists a variety of technological, economic,
environmental, administrative, and legal problems which tend to
retard the development of the oil and natural gas reserves of the
Outer Continental Shelf;
(9) environmental and safety regulations relating to activities on the Outer Continental Shelf should be reviewed in light of
current technology and information;

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 631

(10) the development, processing, and distribution of the oil
and gas resources of the Outer Continental Shelf, and the siting
of related energy facilities, may cause adverse impacts on various
States and local governments;
(11) policies, plans, and programs developed by States and
local governments in response to activities on the Outer Continental Shelf cannot anticipate and ameliorate such adverse
impacts unless such States, working in close cooperation with
affected local governments, are provided with timely access to
information regarding activities on the Outer Continental Shelf
and an opportunity to review and comment on decisions relating
to such activities;
(12) funds must be made available to pay for the prompt
removal of any oil spilled or discharged as a result of activities on
the Outer Continental Shelf and for any damages to public or
private interests caused by such spills or discharges;
(13) because of the possible conflicts between exploitation of
the oil and gas resources in the Outer Continental Shelf and other
uses of the marine environment, including fish and shellfish
growth and recovery, and recreational activity, the Federal Government must assume responsibility for the minimization or elimination of any conflict associated with such exploitation;
(14) the oil and gas resources of the Outer Continental Shelf
are limited, nonrenewable resources which must be developed in
a manner which takes into consideration the Nation's long-range
energy needs and also assures adequate protection of the renewable resources of the Outer Continental Shelf which are a continuing and increasingly important source of food and protein
to the Nation and the world; and
(15) funds must be made available to pay for damage to commercial fishing vessels and gear resulting from activities involving
oil and gas exploration, development, and production on the Outer
Continental Shelf.
PURPOSES

SEC. 102. The purposes of this Act are to—
43 USC 1802.
(1) establish policies and procedures for managing the oil and
natural gas resources of the Outer Continental Shelf which are
intended to result in expedited exploration and development of
the Outer Continental Shelf in order to achieve national economic and energy policy goals, assure national security, reduce
dependence on foreign sources, and maintain a favorable balance of payments in world trade;
(2) preserve, protect, and develop oil and natural gas resources
in the Outer Continental Shelf in a manner which is consistent
^ =''
with the need (A) to make such resources available to meet the
Nation's energy needs as rapidly as possible, (B) to balance
orderly energy resource development with protection of the
human, marine, and coastal environments, (C) to insure the public
a fair and equitable return on the resources of the Outer Continental Shelf, and (D) to preserve and maintain free enterprise
competition;
(3) encourage development of new and improved teclmoloffy
for energy resource production which will eliminate or minimize
risk of damage to the human, marine, and coastal environments ;
(4) provide States, and through States, local governments,
which are impacted by Outer Continental Shelf oil and gas explo-

92 STAT. 632
'

PUBLIC LAW 95-372—SEPT. 18, 1978
ration, development, and production with comprehensive assistance in order to anticipate and plan for such impact, and thereby
to assure adequate protection of the human environment;
(5) assure that States, and through States, local governments,
have timely access to information regarding activities on the
Outer Continental Shelf, and opportunity to review and comment
on decisions relating to such activities, in order to anticipate,
ameliorate, and plan for the impacts of such activities;
(6) assure that States, and through States, local governments,
which are directly affected by exploration, development, and production of oil and natural gas are provided an opportunity to participate in policy and planning decisions relating to management
of the resources of the Outer Continental Shelf;
(7) minimize or eliminate conflicts between the exploration,
development, and production of oil and natural gas, and the recovery of other resources such as fish and shellfish;
(8) establish an oilspill liability fund to pay for the prompt
removal of any oil spilled or discharged as a result of activities on
the Outer Continental Shelf and for any damages to public or
private interests caused by such spills or discharges;
(9) insure that the extent of oil and natural gas resources of the
Outer Continental Shelf is assessed at the earliest practicable
time; and
(10) establish a fishermen's contingency fund to pay for damages to commercial fishing vessels and gear due to Outer Continental Shelf activities.
TITLE II—AMENDMENTS TO T H E OUTER CONTINENTAL
S H E L F LANDS ACT
DEFINinONS

43 use 1337,
1335.

SEO. 201. (a) Paragraphs (b) and (c) of section 2 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 (b) and (c)) are
amended to read as follows:
"(b) The term'Secretary'means the Secretary of the Interior, except that with respect to functions under this Act transferred to, or
vested in, the Secretary of Energy or the Federal Energy Regulatory
Commission W or pursuant to the Department of Energy Organization
Act (42 U.S.C. 7101 et seq.), the term 'Secretary' means the Secretary
of Energy, or the Federal Energy Regulatory Commission, as the case
may be;
"(c) The term 'lease' means any form of authorization which is
issued under section 8 or maintained under section 6 of this Act and
which authorizes exploration for, and development and production of,
minerals;".
(b) Such section is further amended—
(1) in paragraph (d), by striking out the period and inserting
in lieu thereof a semicolon; and
(2) by adding at the end thereof the following new paragraphs:
" (e) The term 'coastal zone' means the coastal waters (including the
lands therein and thereunder) and the adjacent shorelands (including the waters therein and thereunder), strongly influenced by each
other and in proximity to the shorelines of the several coastal States,
and includes islands, transition and intertidal areas, salt marshes,
wetlands, and beaches, which zone extends seaward to the outer limit
of the United States territorial sea and extends inland from the shore-

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 633

lines to the extent necessary to control shorelands, the uses of which
have a direct and significant impact on the coastal waters, and the
inward boundaries of which may be identified by the several coastal
States, pursuant to the authority of section 305(b) (1) of the Coastal
Zone Management Act of 1972 (16 U.S.C. 1454(b) (1)) ;
"(f) The term'affected State'means, with respect to any program,
plan, lease sale, or other activity, proposed, conducted, or approved
pursuant to the provisions of this Act, any State—
"(1) the laws of which are declared, pursuant to section 4(a)
(2) of this Act, to be the law of the United States for the portion
of the outer Continental Shelf on which such activity is, or is
proposed to be, conducted;
" (2) which is, or is proposed to be, directly connected by transportation facilities to any artificial island or structure referred
to in section 4(a) (1) of this Act j
43 USC 1333.
"(3) which is receiving, or m accordnace with the proposed
activity will receive, oil for processing, refining, or transshipment
which was extracted from the outer Continental Shelf and transported directly to such State by means of vessels or by a combination of means mcluding vessels;
"(4) which is designated by the Secretary as a State in which
there is a substantial probability of significant impact on or
damage to the coastal, marine, or numan environment, or a State
in which there will be significant changes in the social, governmental, or economic infrastructure, resulting from the exploration, development, and production of oil and gas anywhere on
the outer Continental Shelf; or
"(5) in which the Secretary finds that because of such activity
there is, or will be, a significant risk of serious damage, due to
factors such as prevailing winds and currents, to the marine or
coastal environment in the event of any oilspill, blowout, or
release of oil or gas from vessels, pipelines, or other transshipment facilities;
"(g) The term 'marine environment' means the physical, atmospheric, and biological components, conditions, and factors which
interactively determine the productivity, state, condition, and quality
of the marine ecosystem, including the waters of the high seas, the
contiguous zone, transitional and mtertidal areas, salt marshes, and
wetlands within the coastal zone and on the outer Continental Shelf;
"(h) The term 'coastal environment' means the physical atmospheric, and biological components, conditions, and factors which
interactively determine the productivity, state, condition, and quality
of the terrestrial ecosystem from the shoreline inward to the boundaries
' • -"*
of the coastal zone;
"(i) The term'human environment'means the physical, social, and
economic components, conditions, and factors which interactively
determine the state, condition, and quality of living conditions,
employment, and health of those affected, directly or indirectly, by
activities occurring on the outer Continental Shelf;
"(j) The term 'Governor' means the Governor of a State, or the
person or entity designated by, or pursuant to. State law to exercise
the powers granted to such Governor pursuant to this Act;
"(k) The term 'exploration' means the process of searching for
minerals, including (1) geophysical surveys where magnetic, gravity,
seismic, or other systems are used to detect or imply the presence of
such minerals, and (2) any drilling, whether on or off known geologi-

92 STAT. 634

43 use 1702.

PUBLIC LAW 95-372—SEPT. 18, 1978
cal structures, including the drilling of a well in which a discovery of
oil or natural gas in paying quantities is made and the drilling of any
additional delineation well after such discovery which is needed to
delineate any reservoir and to enable the lessee to determine whether to
proceed with development and production;
" (1) The term 'development' means those activities which take place
following discovery of minerals in paying quantities, including geophysical activity, drilling, platform construction, and operation of ail
onshore support facilities, and which are for the purpose of ultimately
producing the minerals discovered;
"(m) The term 'production' means those activities which take place
after the successful completion of any means for the removal of minerals, including such removal, field operations, transfer of minerals
to shore, operation monitoring, maintenance, and work-over drilling;
"(n) The term'antitrust law'means—
" (1) the Sherman Act (15 U.S.C. 1 et seq.);
"(2) the Clayton Act (15 U.S.C. 12 et seq.);
" (3) the Federal Trade Commission Act (15 U.S.C. 41 et seq.);
"(4) the Wilson Tariff Act (15 U.S.C. Set seq.); or
"(5) the Act of June 19,1936, chapter 592 (15 U.S.C. 13,13a,
13b, and2La);
"(o) The term 'fair market value' means the value of any mineral
(1) computed at a unit price equivalent to the average unit price at
which such mineral was sold pursuant to a lease during the period
for which any royalty or net profit share is accrued or reserved to the
United States pursuant to such lease, or (2) if there were no such
sales, or if the Secretary finds that there were an insufficient number
of such sales to equitably determine such value, computed at the average unit price at which such mineral was sold pursuant to other leases
in the same region of the outer Continental Shelf during such period,
or (3) if there were no sales of such mineral from such region during
such period, or if the Secretary finds that there are an insufficient
number of such sales to equitably determine such value, at an appropriate price determined by the Secretary;
"(p) The term 'major Federal action' means any action or proposal
by the Secretary which is subject to the provisions of section 102(2)
(C) of the National Environmental Policy Act of 1969 (42 U.S.C.
4332(2) ( C ) ) ; and
"(q) The term 'minerals' includes oil, gas, sulphur, geopressuredgeothermal and associated resources, and all other minerals which
are authorized by an Act of Congress to be produced from 'public
lands' as defined in section 103 of the Federal Land Policy and Management Act of 1976.".
NATIONAL POLICY FOR T H E OUTER CONTINENTAL S H E L F

SEC. 202. Section 3 of the Outer Continental Shelf Lands Act (43
U.S.C. 1332) is amended to read as follows:
"SEC. 3. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.—

^

I t is hereby declared to be the policy of the United States that—
"(1) the subsoil and seabed of the outer Continental Shelf
appertain to the United States and are subject to its jurisdiction,
control, and power of disposition as provided in this Act;
" (2) this Act shall be construed in such a manner that the character of the waters above the outer Continental Shelf as high seas

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 635

and the right to navigation and fishing therein shall not be
affected;
"(3) the outer Continental Shelf is a vital national resource
reserve held by the Federal Government for the public, which
should be made available for expeditious and orderly development,
subject to environmental safeguards, in a manner which is consistent with the maintenance of competition and other national
needs;
"(4) since exploration, development, and production of the
minerals of the outer Continental Shelf will have significant
impacts on coastal and non-coastal areas of the coastal States,
and on other affected States, and, in recognition of the national
interest in the effective management of the marine, coastal, and
human environments—
"(A) such States and their affected local governments may
require assistance in protecting their coastal zones and other
affected areas from any temporary or permanent adverse
effects of such impacts; and
"(B) such States, and through such States, affected local
governments, are entitled to an opportunity to participate,
to the extent consistent with the national interest, in the policy
and planning decisions made by the Federal Government
relating to exploration for, and development and production
of, minerals of the outer Continental Shelf;
"(5) the rights and responsibilities of all States and, where
appropriate, local governments, to preserve and protect their
marine, human, and coastal environments through such means as
regulation of land, air, and water uses, of safety, and of related
development and activity should be considered and recognized;
and
"(6) operations in the outer Continental Shelf should be conducted in a safe manner by well-trained personnel using technology, precautions, and techniques sufficient to prevent or minimize the likelihood of blowouts, loss of well control, fires, spillages, physical obstruction to other users of the waters or subsoil
and seabed, or other occurrences which may cause damage to the
environment or to property, or endanger life or health.".
LAWS APPLICABLE TO T H E OUTER CONTINENTAL

SHELF

SEC. 203. (a) Section 4(a) (1) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1333 (a) (1)) is amended—
(1) by striking out "and fixed structures" and inserting in lieu
thereof ", and all installations and other devices permanently or
temporarily attached to the seabed,"; and
(2) by striking out "removing, and transporting resources
therefrom" and inserting in lieu thereof "or producing resources
therefrom, or any such installation or other device (other than a
ship or vessel) for the purpose of transporting such resources".
(b) Section 4(a) (2) of such Act is amended by redesigning paragraph (2) as (2)(A) and by adding at the end thereof the following
new subparagraph:
"(B) Within one year after the date of enactment of this subparagraph, the President shall establish procedures for setting any outstanding international boundary dispute respecting the outer Continental Shelf.".

39-194 O—80—pt. 1

44 : QL3

92 STAT. 636
43 use 1333.
:

29 use 167.

43 use 1333.

PUBLIC LAW 95-372--SEPT. 18, 1978
(c) Section 4(c) of such Act is amended by striking out "described
in subsection ( b ) " and inserting in lieu thereof "conducted on the
outer Continental Shelf for the purpose of exploring for, developing,
removing, or transporting by pipeline the natural resources, or involving rights to the natural resources, of the subsoil and seabed of the
outer Continental Shelf".
(d) Section 4(d) of such Act is amended to read as follows:
"(d) For the purposes of the National Labor Relations Act, as
amended, any unfair labor practice, as defined in such Act, occurring
upon any artificial island, installation, or other device referred to in
subsection (a) of this section shall be deemed to have occurred within
the judicial district of the State, the laws of which apply to such artificial island, installation, or other device pursuant to such subsection,
except that until the President determines the areas within which
such State laws are applicable, the judicial district shall be that of the
State nearest the place of location of such artificial island, installation,
or other device.".
(e) Section 4 of such Act is amended—
(1) in paragraph (1) of subsection (e), by striking out "the
islands and structures referred to in subsection (a)", and inserting
in lieu thereof "the artificial islands, installations, and other
devices referred to in subsection (a) ";
(2) in subsection (f), by striking out "artificial islands and
fixed structures located on the outer Continental Shelf" and
inserting in lieu thereof "the artificial islands, installations, and
other devices referred to in subsection ( a ) " ; and
(3) in subsection (g), by striking out "the artificial islands and
fixed structures referred to in subsection ( a ) " and inserting in
lieu thereof "the artificial islands, installations, and other devices
referred to in subsection (a)".
(f) Section 4(e) (1) of such Act is amended by striking out "head"
and inserting in lieu thereof "Secretary".
(g) Section 4(e) (2) of such Act is amended to read as follows:
" (2) The Secretary of the Department in which the Coast Guard is
operating may mark for the protection of navigation any artificial
island, installation, or other device referred to in subsection (a) whenever the owner has failed suitably to mark such island, installation, or
other device in accordance with regulations issued under this Act, and
the owner shall pay the cost of such marking.".
(h) Section 4 of such Act is further amended by striking out subsection (b) and relettering subsections (c), (d), (e), (f), and (g) as
subsections (b), (c), (d), (e), and (f), respectively.
OUTER CONTINENTAL S H E U ' EXPLORATION AND DEVELOPMENT
ADMINISTRATION

Rules and
regulations.

SEC. 204. Section 5 of the Outer Continental Shelf Lands Act (43
U.S.C. 1334) is amended to read as follows:
"SEC. 5. ADMINISTRATION OF LEASING or THE OUTER CONTINENTAL

SHELF.—(a) The Secretary shall administer the provisions of this Act
relating to the leasing of the outer Continental Shelf, and shall
prescribe such rules and regulations as may be necessary to carry out
such provisions. The Secretary may at any time prescribe and amend
such rules and regulations as he determines to be necessary and proper
in order to provide for the prevention of waste and conservation of

PUBLIC LAW 95-372—SEPT. 18, 1978
the natural resources of the outer Continental Shelf, and the protection of correlative rights therein, and, notwithstanding any other provisions herein, such rules and regulations shall, as of their effective
date, apply to all operations conducted under a lease issued or maintained under the provisions of this Act. In the enforcement of safety,
environmental, and conservation laws and regulations, the Secretary
shall cooperate with the relevant departments and agencies of the Federal Government and of the affected States. In the formulation and
promulgation of regulations, the Secretary shall request and give due
consideration to the views of the Attorney General with respect to
matters which may affect competition. In considering any regulations
and in preparing any such views, the Attorney General shall consult
with the Federal Trade Commission. The regulations prescribed by the
Secretary imder this subsection shall include, but not be limited to,
provisions—
"(1) for the suspension or temporary prohibition of any operation or activity, including production, pursuant to any lease or
permit (A) at the request of a lessee, in the national interest, to
facilitate proper development of a lease or to allow for the construction or negotiation for use of transportation facilities, or (B)
if there is a threat of serious, irreparable, or immediate harm or
damage to life (including fish and other aquatic life), to property,
to any mineral deposits (in areas leased or not leased), or to the
marine, coastal, or human environment, and for the extension of
any permit or lease affected by suspension or prohibition under
clause (A) or (B) by a period equivalent to the period of such
suspension or prohibition, except that no permit or lease shall be
so extended when such suspension or prohibition is the result of
gross negligence or willful violation of such lease or permit, or of
regulations issued with respect to such lease or permit;
" (2) with respect to cancellation of any lease or permit—
"(A) that such cancellation may occur at any time, if the
Secretary determines, after a hearing, that—
"(i) continued activity pursuant to such lease or permit would probably cause serious harm or damage to life
(including fish and other aquatic life), to property, to
any mineral (in areas leased or not leased), to the
national security or defense, or to the marine, coastal, or
human environment;
" (ii) the threat of harm or damage will not disappear
or decrease to an acceptable extent within a reasonable
period of time; and
"(iii) the advantages of cancellation outweigh the
advantages of continuing such lease or permit in force;
"(B) that such cancellation shall not occur unless and until
operations under such lease or permit shall have been under
suspension, or temporary prohibition, by the Secretary, with
due extension of any lease or permit term continuously for a
period of five years, or for a lesser period upon request of the
lessee;
"(C) that such cancellation shall entitle the lessee to receive
such compensation as he shows to the Secretary as being equal
to the lesser of (i) the fair value of the canceled rights as of
the date of cancellation, taking account of both anticipated
revenues from the lease and anticipated costs, including costs

92 STAT. 637

Federal Trade
Commission,
consultation.

92 STAT. 638

Judicial review.

Pipeline rightsof-way.
Secretary of
Energy,
consultation.
Notice and
hearing.

PUBLIC LAW 95-372—SEPT. 18, 1978
of compliance with all applicable regulations and operating
orders, liability for cleanup costs or damages, or both, in the
case of an oilspill, and all other costs reasonably anticipated
on the lease, or (ii) the excess, if any, over the lessee's revenues, from the lease (plus interest thereon from the date of
receipt to date of reimbursement) of all consideration paid
for the lease and all direct expenditures made by the lessee
after the date of issuance of such lease and in connection with
exploration or development, or both, pursuant to the lease
(plus interest on such consideration and such expenditures
from date of payment to date of reimbursement), except that
(I) with respect to leases issued before the date of enactment
of this subparagraph, such compensation shall be equal to the
amount specified in clause (i) of this subparagraph; and (II)
in the case of joint leases which are canceled due to the failure
of one or more partners to exercise due diligence, the innocent
parties shall have the right to seek damages for such loss from
the responsible party or parties and the right to acquire the
interests of the negligent party or parties and be issued the
lease in question;
" (3). for the assignment or relinquishment of a lease;
" (4) for unitization, pooling, and drilling agreements;
"(5) for the subsurface storage of oil and gas other than by
the Federal Government;
"(6) for drilling or easements necessary for exploration,
development, and production;
" (7) for the prompt and efficient exploration and development
of a lease area; and
"(8) for compliance with the national ambient air quality
standards pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.),
to the extent that activities authorized under this Act significantly
affect the air quality of any State.
"(b) The issuance and continuance in effect of any lease, or of any
assignment or other transfer of any lease, under the provisions of this
Act shall be conditioned upon compliance with regulations issued
under this Act.
"(c) Whenever the owner of a nonproducing lease fails to comply
with any of the provisions of this Act, or of the lease, or of the regulations issued under this Act, such lease may be canceled by the Secretary, subject to the right of judicial review as provided in this Act,
if such default continues for the period of thirty days after mailing of
notice by registered letter to the lease owner at his record post office
address.
"(d) Whenever the owner of any producing lease fails to comply
with any of the provisions of this Act, of the lease, or of the regulations issued under this Act, such lease may be forfeited and canceled
by an appropriate proceeding in any United States district court having jurisdiction under the provisions of this Act.
"(e) Rights-of-way through the submerged lands of the outer Continental Shelf, whether or not such lands are included in a lease maintained or issued pursuant to this Act, may be granted by the
Secretary for pipeline purposes for the transportation of oil, natural
gas, sulphur, or other minerals, or under such regulations and upon
such conditions as may be prescribed by the Secretary, or where appropriate the Secretary of Transportation, including (as provided in

PUBLIC LAW 95-372—SEPT. 18, 1978
section 21 (b) of this Act) assuring maximum environmental protection
by utilization of the best available and safest technologies, including
the safest practices for pipeline burial and upon the express condition
that oil or gas pipelines shall transport or purchase without discrimination, oil or natural gas produced from submerged lands or outer
Continental Shelf lands in the vicinity of the pipelines in such proportionate amounts as the Federal Energy Regulatory Commission, in
consultation with the Secretary of Energy, may, after a full hearing
with due notice thereof to the interested parties, determine to be reasonable, taking into account, among other things, conservation and the
prevention of waste. Failure to comply with the provisions of this
section or the regulations and conditions prescribed under this section
shall be ground for forfeiture of the grant in an appropriate judicial
proceeding instituted by the United States in any United States
district court having jurisdiction under the provisions of this Act.
"(f)(1) Except as provided in paragraph (2), every permit, license,
easement, right-of-way, or other grant of authority for the transportation by pipeline on or across the outer Continental Shelf of oil or gas
shall require that the pipeline be operated in accordance with the
following competitive principles:
"(A) The pipeline must provide open and nondiscriminatory
access to both owner and nonowner shippers.
"(B) Upon the specific request of one or more owner or nonowner shippers able to provide a guaranteed level of throughput,
and on the condition that the shipper or shippers requesting such
expansion shall be responsible for bearing their proportionate
share of the costs and risks related thereto, the Federal Energy
Regulatory Commission may, upon finding, after a full hearing
with due notice thereof to the interested parties, that such expansion is within technological limits and economic feasibility, order
a subsequent expansion of throughput capacity of any pipeline for
which the permit, license, easement, right-of-way, or other grant
of authority is approved or issued after the date of enactment of
this subparagraph. This subparapragh shall not apply to any
such grant of authority approved or issued for the Gulf of Mexico
or the Santa Barbara Channel.
" (2) The Federal Energj'^ Regulatory Commission may, by order or
regulation, exempt from any or all of the requirements of paragraph
(1) of this subsection any pipeline or class of pipelines which feeds
into a facility where oil and gas are first collected or a facility where
oil and gas are first separated, dehydrated, or otherwise processed.
"(3) The Secretary of Energy and the Federal Energy Regulatory
Commission shall consult with and give due consideration to the views
of the Attorney General on specific conditions to be included in any
permit, license, easement, right-of-way, or grant of authority in order
to ensure that pipelines are operated in accordance with the competitive principles set forth in paragraph (1) of this subsection. In preparing any such views, the Attorney General shall consult with the Federal
Trade Commission.
"(4) Nothing in this subsection shall be deemed to limit, abridge,
or modify any authority of the United States under any other provision of law with respect to pipelines on or across the outer Continental
Shelf.
"(g) (1) The leasee shall produce any oil or gas, or both, obtained
pursuant to an approved development and production plan, at rates

92 STAT. 639
Post, p. 654.

Forfeiture of
grant.

Notice and
hearing.

Regulations.

Attorney
General,
consultation.

Federal Trade
Commission,
consultation.

Presidential rule
or order.

92 STAT. 640

Regulations.

Department of
Energy,
notification.

PUBLIC LAW 95-372—SEPT. 18, 1978
consistent with any rule or order issued by the President in accordance
with any provision of law.
" (2) If no rule or order referred to in paragraph (1) has been issued,
the lessee shall produce such oil or gas, or both, at rates consistent with
any regulation promulgated by the Secretary of Energy which is to
assure the maximum rate of production which may be sustainexi without loss of ultimate recovery of oil or gas, or both, under sound engineering and economic principles, and which is safe for the duration
of the activity covered by the approved plan. The Secretary may permit
the lessee to vary such rates if he finds that such variance is necessary.
" (h) The head of any Federal department or agency who takes any
action which has a direct and significant effect on the outer Continental Shelf or its development shall promptly notify the Secretary of
such action and the Secretary shall thereafter notify the Governor of
any affected State and the Secretary may thereafter recommend such
changes in such action as are considered appropriate.
" (i) After the date of enactment of this section, no holder of any oil
and gas lease issued or maintained pursuant to this Act shall be permitted to flare natural gas from any well unless the Secretary finds
that there is no practicable way to complete production of such gas, or
that such flaring is necessary to alleviate a temporary emergency situation or to conduct testing or work-over operations.".
REVISION OF BIDDIXG AND LEASE ADMINISTRATION

Regulations.

43 use 1335.

''

SEC. 205. (a) Subsections (a) and (b) of section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337 (a) and (b)) are amended
to read as follows:
"(a)(1) The Secretary is authorized to grant to the highest responsible qualified bidder or bidders by competitive bidding, under regulations promulgated in advance, any oil and gas lease on submerged
lands of the outer Continental Shelf which are not covered by leases
meeting the requirements of subsection (a) of section 6 of this Act.
Such regulations may provide for the deposit of cash bids in an
interest-bearing account until the Secretary announces his decision on
whether to accept the bids, with the interest earned thereon to be paid
to the Treasury as to bids that are accepted and to the unsuccessful bidders as to bids that are rejected. The bidding shall be by sealed bid
and, at the discretion of the Secretary, on the basis of—
"(A) cash bonus bid with a royalty at not less than 121/^ per
centum fixed by the Secretary in amount or value of the production saved, removed, or sold;
"(B) variable royalty bid based on a per centum in amount or
value of the production saved, removed, or sold, with either a fixed
work commitment based on dollar amount for exploration or a
fixed cash bonus as determined by the Secretary, or both;
"(C) cash bonus bid, or work commitment bid based on a dollar
amount for exploration with a fixed cash bonus, and a diminishing or sliding royalty based on such formulae as the Secretary
shall determine as equitable to encourage continued production
from the lease area as resources diminish, but not less than 121^
per centum at the beginning of the lease period in amount or
value of the production saved, removed, or sold;
" (D) cash bonus bid with a fixed share of the net profits of no
less than 30 per centum to be derived from the production of oil
and gas from the lease area;
^

PUBLIC LAW 95-372—SEPT. 18, 1978
" ( E ) fixed cash bonus with the net profit share reserved as the
bid variable;
" ( F ) cash bonus bid with a royalty at no less than 121/^ per
centum fixed by the Secretary in amount or value of the production saved, removed, or sold and a fixed per centum share of net
profits of no less than 30 per centum to be derived from the production of oil and gas from the lease area;
"(G) work commitment bid based on a dollar amount for
exploration with a fixed cash bonus and a fixed royalty in amount
or value of the production saved, removed, or sold; or
" ( H ) subject to the requirements of paragraph (4) of this
subsection, any modification of bidding systems authorized in
subparagraphs (A) through (G), or any other systems of bid
variables, terms, and conditions which the Secretary determines to
be useful to accomplish the purposes and policies of this Act,
except that no such bidding system or modification shall have more
than one bid variable.
" (2) The Secretary may, in his discretion, defer any part of the payment of the cash bonus, as authorized in paragraph (1) of this
subsection, according to a schedule announced at the time of the
announcement of the lease sale, but such payment shall be made in total
no later than five years after the date of the lease sale.
"(3) The Secretary may, in order to promote increased production
on the lease area, through direct, secondary, or tertiary recovery means,
reduce or eliminate any royalty or net profit share set forth in the lease
for such area.
" (4) (A) The Secretary of Energy shall submit any bidding system
authorized in subparagraph (H) of paragraph (1) to the Senate and
House of Representatives. The Secretary may institute such bidding
system unless either the Senate or the House of Representatives passes
a resolution of disapproval within thirty days after receipt of the
bidding system.
"(B) Subparagraphs (C) through (J) of this paragraph are
enacted by Congress—
"(i) as an exercise of the rulemaking power of the Senate and
the House of Representatives, respectively, and as such they
are deemed a part of the rules of each House, respectively, but
they are applicable only with respect to the procedures to be followed in that House in the case of resolutions described by this
paragraph, and they supersede other rules only to the extent that
they are inconsistent therewith; and
"(ii) with full recognition of the constitutional right of either
House to change the rules (so far as relating to the procedure of
that House) at any time, in the same manner, and to the same
extent as in the case of any other rule of that House.
"(C) A resolution disapproving a bidding system submitted pursuant to this paragraph shall immediately be referred to a committee
(and all resolutions with respect to the same request shall be referred
to the same committee) by the President of the Senate or the Speaker
of the House of Representatives, as the case may be.
"(D) If the committee to which has been referred any resolution
disapproving the bidding system of the Secretary has not reported
the resolution at the end of ten calendar days after its referral, it shall
be in order to move either to discharge the committee from further consideration of the resolution or to discharge the committee from further

92 STAT. 641

Report to
Congress.
Resolution of
disapproval,

x

92 STAT. 642

PUBLIC LAW 95-372~SEPT. 18, 1978
consideration of any other resolution with respect to the same bidding
system which has been referred to the committee.
" ( E ) A motion to discharge may be made only by an individual
favoring the resolution, shall be highly privileged (except that it may
not be made after the committee has reported a resolution with respect
to the same recommendation), and debate thereon shall be limited to
not more than one hour, to be divided equally between those favoring
and those opposing the resolution. An amendment to the motion shall
not be in order, and it shall not be in order to move to reconsider the
vote by which the motion is agreed to or disagreed to.
" ( F ) If the motion to discharge is agreed to or disagreed to, the
motion may not be renewed, nor may another motion to discharge the
committee be made with respect to any other resolution with respect
to the same bidding system.
"(G) When the co-mmittee has reported, or has been discharged
from further consideration of, a resolution as provided in this paragraph, it shall be at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) to move to
proceed to the consideration of the resolution. The motion shall be
highly privileged and shall not be debatable. An amendment to the
motion shall not be in order, and it shall not be in order to move to
reconsider the vote by which the motion is agreed to or disagreed to.
" ( H ) Debate on the resolution is limited to not more than two
hours, to be divided equally between those favoring and those opposing the resolution. A motion further to limit debate is not debatable.
An amendment to, or motion to recommit, the resolution is not in
order, and it is not in order to move to reconsider the vote by which
the resolution is agreed to or disagreed to.
" (I) Motions to postpone, made with respect to the discharge from
the committee, or the consideration of a resolution with respect to a
bidding system, and motions to proceed to the consideration of other
business, shall be decided without debate.
" ( J ) Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as
the case may be, to the procedure relating to a resolution with respect
to a bidding system shall be decided without debate.
"(5) (A) During the five-year period commencing on the date of
enactment of this subsection, the Secretary may, in order to obtain
statistical information to determine which bidding alternatives will
best accomplish the purposes and policies of this Act, require, as to
no more than 10 per centum of the tracts offered each year, each
bidder to submit bids for any area of the outer Continental Shelf in
accordance with more than one of the bidding systems set forth in
paragraph (1) of this subsection. For such statistical purposes, leases
may be awarded using a bidding alternative selected at random for
the acquisition of valid statistical data if such bidding alternative is
otherwise consistent with the provisions of this Act.
"(B) The bidding systems authorized by paragraph (1) of this
subsection, other than the system authorized by subparagraph (A),
shall be applied to not less than 20 per centum and not more than
60 per centum of the total area offered for leasing each year during
the five-year period beginning on the date of enactment of this subsection, unless the Secretary determines that the requirements set
forth in this subparagraph are inconsistent with the purposes and
policies of this Act.

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. (343

"(6) At least ninety days prior to notice of any lease sale under Rules,
subparagraph (D), ( E ) , ( F ) , or, if appropriate, (H) of paragraph
(1), the Secretary shall by regulation establish rules to govern the
calculation of net profits. In me event of any dispute between the
United States and a lessee concerning the calcula,tion of the net profits
under the regulation issued pursuant to this paragraph, the burden of
proof shall be on the lessee.
"(7) After an oil and gas lease is granted pursuant to any of the
work commitment options of paragraph (1) of this subsection—
"(A) the lessee, at its option, shall deliver to the Secretary
upon issuance of the lease either (i) a cash deposit for the full
amount of the exploration work commitment, or (ii) a performance bond in form and substance and with a surety satisfactory
to the Secretary, in the principal amount of such exploration
work commitment assuring the Secretary that such commitment
shall be faithfully discharged in accordance with this section,
regulations, and the lease; and for purposes of this subparagraph,
the principal amount of such cash deposit or bond may, in accordance with regulations, be periodically reduced upon proof, satisfactory to the Secretary, that a portion of the exploration work
commitment has been satisfied;
"(B) 50 per centum of all exploration expenditures on, or
directly related to, the lease, including, but not limited to (i) geological investigations and related activities, (ii) geophysical
investigations including seismic, geomagnetic, and gravity surveys,
data processing and interpretation, and (iii) exploratory drilling,
core drilling, redrilling, and well completion or abandonment,
including the drilling of wells sufficient to determine the size and
areal extent of any newly discovered field, and including the cost
of mobilization and demobilization of drilling equipment, shall
be included in satisfaction of the commitment, except that the
lessee's general overhead cost shall not be so included against the
work commitment, but its cost (including employee benefits) of
employees directly assigned to such exploration work shall be so
included; and
"(C) if at the end of the primary term of the lease, including
any extension thereof, the full dollar amount of the exploration
work commitment has not been satisfied, the balance shall then be
paid in cash to the Secretary.
"(8) Not later than thirty days before any lease sale, the Secretary Notice, submittal
shall submit to the Congress and publish in the Federal Register a to Congress,
notice—

Publication in

" (A) identifying any bidding system which will be utilized for Federal Regisujr.
such lease sale and the reasons for the utilization of such bidding
system; and
"(B) designating the lease tracts selected which are to be
offered in such sale under the bidding system authorized by subparagraph (A) of paragraph (1) and the lease tracts selected
which are to be offered under any one or more of the bidding
systems authorized by subparagraphs (B) through (H) of paragraph (1), and the reasons such lease tracts are to be offered
under a particular bidding system,
"(9) Within six months after the end of each fiscal year, the Secre- Report to
tary of Energy, in consultation with the Secretary of the Interior, Congress.

92 STAT. 644

PUBLIC LAW 95-372—SEPT. 18, 1978

shall report to the Congress with respect to the use of various bidding
options provided for in this subsection. Such report shall include—
"(A) the schedule of all lease sales held during such year and
the bidding system or systems utilized;
"(B) the schedule of all lease sales to be held the following year
and the bidding system or systems to be utilized;
"(C) the benefits and costs associated with conducting lease
sales using the various bidding systems;
"(D) if applicable, the reasons why a particular bidding system
has not been or will not be utilized; and
" ( E ) if applicable, the reasons why more than 60 per centum
or less than 20 per centum of the area leased in the past year, or
to be offered for lease in the upcoming year, was or is to be leased
under the bidding system authorized by subparagraph (A) of
paragraph (1) of this subsection.
"(b) An oil and gas lease issued pursuant to this section shall—
"(1) be for a tract consisting of a compact area not exceeding
five thousand seven hundred and sixty acres, as the Secretary may
determine, unless the Secretary finds that a larger area is necessary to comprise a reasonable economic production unit;
" (2) be for an initial period of—
"(A) five years; or
"(B) not to exceed ten years where the Secretary finds that
such longer period is necessary to encourage exploration and
development in areas because of unusually deep water or
other unusually adverse conditions,
and as long after such initial period as oil or gas is produced
from the area in paying quantities, or drilling or well reworking
operations as approved by the Secretary are conducted thereon;
"(3) require the payment of amount or value as determined by
one of the bidding systems set forth in subsection (a) of this
section;
"(4) entitle the lessee to explore, develop, and produce the oil
and gas contained within the lease area, conditioned upon due
diligence requirements and the approval of the development and
production plan required by this Act;
"(5) provide for suspension or cancellation of the lease during
the initial lease term or thereafter pursuant to section 5 of this
43 use 1334.
Act;
"(6) contain such rental and other provisions as the Secretary
may prescribe at the time of offering the area for lease; and
" (7) provide a requirement that the lessee offer 20 per centum of
the crude oil, condensate, and natural gas liquids produced on
such lease, at the market value and point of delivery applicable to
Federal royalty oil, to small or independent refiners as defined in
15 use 751 note.
the Emergency Petroleum Allocation Act of 1973.".
(b) Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C.
1337) is further amended by striking out subsection (j), by relettering
subsections (c) through (i), and all references thereto, as subsections
(i) through (o), respectively, and by inserting immediately after subsection (b) the following new subsections:
Review.
"(c) (1) Following each notice of a proposed lease sale and before
the acceptance of bids and the issuance of leases based on such bids,
the Secretary shall allow the Attorney General, in consultation with
the Federal Trade Commission, thirty days to review the results of
such lease sale, except that the Attorney General, after consultation

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 645

with the Federal Trade Commission, may agree to a shorter review
period.
"(2) The Attorney General may, in consultation with the Federal Antitrust review.
Trade Commission, conduct such antitrust review on the likely eifects
the issuance of such leases would have on competition as the Attorney
General, after consultation with the Federal Trade Commission, deems
appropriate and shall advise the Secretary with respect to such review.
The Secretary shall provide such information as the Attorney General,
after consultation with the Federal Trade Commission, may require
in order to conduct any antitrust review pursuant to this paragraph
and to make recommendations pursuant to paragraph (3) of this
subsection.
"(3) The Attorney General, after consultation with the Federal
Trade Commission, may make such recommendations to the Secretary,
including the nonacceptance of any bid, as may be appropriate to prevent any situation inconsistent with the antitrust laws. If the Secretary determines, or if the Attorney General advises the Secretary, after
consultation with the Federal Trade Commission and prior to the issuance of any lease, that such lease may create or maintain a situation
inconsistent with the antitrust laws, the Secretary may—
"(A) refuse (i) to accept an otherwise qualified bid for such
lease, or (ii) to issue such lease, notwithstanding subsection (a)
of this section; or
"(B) issue such lease, and notify the lessee and the Attorney
General of the reason for such decision.
" (4) (A) Nothing in this subsection shall restrict the power under
any other Act or the common law of the Attorney General, the Federal
Trade Commission, or any other Federal department or agency to
secure information, conduct reviews, make recommendations, or seek
appropriate relief.
"(B) Neither the issuance of a lease nor anything in this subsection
shall modify or abridge any private right of action under the antitrust laws.
"(d) No bid for a lease may be submitted if the Secretary finds. Notice and
after notice and hearing, that the bidder is not meeting due diligence hearing,
requirements on other leases.
"(e) No lease issued under this Act msLj be sold, exchanged, assigned, or otherwise transferred except with the approval of the
Secretary. Prior to any such approval, the Secretary shall consult with
and give due consideration to the views of the Attorney General.
"(f) Nothing in this Act shall be deemed to convey to any person,
association, corporation, or other business organization immunity
from civil or criminal liability, or to create defenses to actions, under
any antitrust law.
•
"(g)(1) At the time of soliciting nominations for the leasing of
lands within three miles of the seaward boundary of any coastal State,
the Secretary shall provide the Governor of such State—
"(A) an identification and schedule of the areas and regions
proposed to be offered for leasing;
"(B) all information concerning the geographical, geological,
and ecological characteristics of such regions;
"(C) an estimate of the oil and gas reserves in the areas proposed for leasing; and
"(D) an identification of any field, geological structure, or trap
located within three miles of the seaward boundary of such coastal
State.

92 STAT. 646

Exemptions.

PUBLIC LAW 95-372—SEPT. 18, 1978
"(2) After receipt of nominations for any area of the outer Continental Shelf within three miles of the seaward boundary of any coastal
State, the Secretary shall inform the Governor of such coastal State of
any such area which the Secretary believes should be given further
consideration for leasing. The Secretary, in consultation with the Governor of the coastal State, shall then, determine whether any such area
may contain one or more oil or gas pools or fields underlying both the
outer Continental Shelf and lands subject to the jurisdiction of such
State. If, with respect to such area, the Secretary selects a tract or
tracts which may contain one or more oil or gas pools or fields underlying both the outer Continental Shelf and lands subject to the jurisdiction of such State, the Secretary shall offer the Governor of such
coastal State the opportunity to enter into an agreement concerning
the disposition of revenues which may be generated by a Federal lease
within such area in order to permit their fair and equitable division
between the State and Federal Government.
"(3) Within ninety days after the offer by the Secretary pursuant
to paragraph (2) of this subsection, the Governor shall elect whether
to enter into such agreement and shall notify the Secretary of his
decision. If the Governor accepts the offer, the terms of any lease issued
shall be consistent with the provisions of this Act, with applicable
regulations, and, to the maximum extent practicable, with the applicable laws of the coastal State. If the Governor declines the offer, or if
the parties cannot agree to terms concerning the disposition of revenues from such lease (by the time the Secretary determines to offer the
area for lease), the Secretary may nevertheless proceed with the leasing of the area.
" (4) Notwithstanding any other provision of this Act, the Secretary
shall deposit in a separate account in the Treasury of the United States
all bonuses, royalities, and other revenues attributable to oil and gas
pools underlying both the outer Continental Shelf and submerged
lands subject to the jurisdiction of any coastal State until such time as
the Secretary and the Governor of such coastal State agree on, or if the
Secretary and the Governor of such coastal State cannot agree, as a
district court of the United States determines, the fair and equitable
disposition of such revenues and any interest which has accrued and
the proper rate of payments to be deposited in the treasuries of the
Federal Government and such coastal State.
"(h) Nothing contained in this section shall be construed to alter,
limit, or modify any claim of any State to any jurisdiction over, or any
right, title, or interest in, any submerged lands.".
(c) Subsection (c) of section 105 of the Energy Policy and Conservation Act (42 U.S.C. 6213(c)) is amended to read as follows:
"(c) The Secretary may, in his discretion, consider a request from
any person described in subsection (a) of this section for an exemption
from the prohibition of this section. In considering any such request,
the Secretary may exempt bidding for leases for lands in any area
only if the Secretary finds, on the record after opportunity for an
agency hearing, that—
"(1) such lands have extremely high cost exploration or development problems; and
"(2) exploration and development will not occur on such lands
unless such exemption is granted.
Findings of the Secretary under this subsection shall be final, and shall
not be invalidated unless found to be arbitrary or capricious.".

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 647

OUTER CONTINENTAL SHELF OIL AND GAS EXPLORATION

Sec. 206. Section 11 of the Outer Continental Shelf Lands Act (43
XJ.S.C. 1340) is amended—
(1) by inserting " (a) (1)" immediately before "Any"; and
(2) by adding at the end thereof the following:
"(2) The provisions of paragraph (1) of this subsection shall not
apply to any person conducting explorations pursuant to an approved
exploration plan on any area under lease to such person pursuant to
the provisions of this Act.
"(b) Except as provided in subsection (f) of this section, beginning
ninety days after the date of enactment of this subsection, no exploration pursuant to any oil and gas lease issued or maintained under this
Act may be undertaken by the holder of such lease, except in accordance with the provisions of this section.
" (c) (1) Except as otherwise provided in the Act, prior to commencing exploration pursuant to any oil and gas lease issued or maintained
under this Act, the holder thereof shall submit an exploration plan to
the Secretary for approval. Such plan may apply to more than one
lease held by a lessee in any one region of the outer Continental Shelf,
or by a group of lessees acting under a unitization, pooling, or drilling
agreement, and shall be approved by the Secretary if he finds that such
plan is consistent with the provisions of this Act, regulations prescribed under this Act, including regulations prescribed by the Secretary pui-suant to paragraph (8) of section 5(a) of this Act, and the
provisions of such lease. The Secretary shall require such modifications
of such plan as are necessary to achieve such consistency. The Secretary shall approve such plan, as submitted or imodified, within thirty
days of its submission, except that the Secretary shall disappixxve such
plan if he determines that (A) any proposed activity under such plan
would result in any condition described in section 5 ( a ) ( 2 ) ( A ) ( i ) o f
this Act, and (B) such proposed activity cannot be modified to avoid
such condition. If the Secretary disapproves a plan under the preceding sentence, he may, subject to section 5(a) (2) (B) of this Act, cancel
such lease and the lessee shall be entitled to compensation in accordance
with the regulations prescribed under section 5(a) (2) (C) (i) or (ii)
of this Act.
"(2) The Secretary shall not grant any license or permit for any
activity described in detail in an exploration plan and affecting any
land use or water use in the coastal zone of a State with a coastal zone
management program approved pursuant to section 306 of the Coastal
Zone Management Act of 1972 (16 U.S.C. 1455), unless the State
concurs or is conclusively presumed to concur with the consistency
certification accompanying such plan pursuant to section 307(c)
(3) (B) (i) or (ii) of such Act, or the Secretary of Commerce makes
the finding authorized by section 307(c) (3) (B) (iii) of such Act.
"(3) An exploration plan submitted under this subsection shall inelude, in the degree of detail which the Secretary may by regulation
require—
"(A) a schedule of anticipated exploration activities to be
understaken;
"(B) a description of equipment to be used for such activities;
"(C) the general location of each well to be drilled; and
"(D) such other information deemed pertinent by the Secretary.

Exploration plan,

43 USC 1334.

16 USC 1456.
Regulations,

.j

92 STAT. 648
Regulations.

43 use 1334.

Regulations.

43 use 1301.

PUBLIC LAW 95-372—SEPT. 18, 1978

" (4) The Secretary may, by regulation, require that such plan be
accompanied by a general statement of development and production
intentions which shall be for planning purposes only and which shall
not be binding on any party.
" (d) The Secretary may, by regulation, require any lessee operating
under an approved exploration plan to obtain a permit prior to drilling
anv well in accordance with such plan.
"(e) (1) If a si^ificant revision of an exploration plan approved
under this subsection is submitted to the Secretary, the process to be
used for the approval of such revision shall be the same as set forth
in subsection (c) of this section.
"(2) All exploration activities pursuant to any lease shall be conducted in accordance with an approved exploration plan or an approved revision of such plan.
"(f)(1) Exploration activities pursuant to any lease for which a
drilling permit has been issued or for which an exploration plan has
been approved, prior to ninety days after the date of enactment of
this subsection, shall be considered in compliance with this section,
except that the Secretary may, in accordance with section 5 ( a ) ( 1 ) ( B )
of this Act, order a suspension or temporary prohibition of any exploration activities and require a revised exploration plan.
"(2) The Secretary may require the holder of a lease described in
paragraph (1) of this subsection to supply a general statement in
accordance with subsection (c) (4) of this section, or to submit other
information.
"(3) Nothing in this subsection shall be construed to amend the
terms of any permit or plan to which this subsection applies.
"(g) Any permit for geological explorations authorized by this
section shall be issued only if the Secretary determines, in accordance
with regulations issued by the Secretary, that—
" (1) the applicant for such permit is qualified;
"(2) the exploration will not interfere with or endanger operations under any lease issued or maintained pursuant to this Act;
and
"(3) such exploration will not be unduly harmful to aquatic
life in the area, result in pollution, create hazardous or unsafe
conditions, unreasonably interfere with other uses of the area, or
disturb any site, structure, or object of historical or archeological
significance.
"(h) The Secretary shall not issue a lease or permit for, or otherwise allow, exploration, development, or production activities within
fifteen miles of the boundaries of the Point Reyes Wilderness as
depicted on a map entitled 'Wilderness Plan, Point Reyes National
Seashore', numbered 612-90.000-B and dated September 1976, unless
the State of California issues a lease or permit for, or otherwise allows,
exploration, development, or production activities on lands beneath
navigable waters (as such term is defined in section 2 of the Submerged Lands Act) of such State which are adjacent to such
Wilderness.".
ANNUAL REPORT

43 use 1343.

SEC. 207. (a) Section 15 of the Outer Continental Shelf Lands Act
(43 XJ.S.C. 1344) is amended to read as follows:
"SEC. 15. ANNUAL REPORT BY SECRETARY TO CONGRESS.—^Within

six months after the end of each fiscal year, the Secretary shall submit

PUBLIC LAW 95-372—SEPT. 18, 1978
to the President of the Senate and the Speaker of the House of Eepresentatives the following reports:
"(1) A report on the leasing and production program in the
outer Continental Shelf during such fiscaJ year, which shall
include—
"(A) a detailed accounting of all moneys received and
expended;
"(B) a detailed accounting of all exploration, exploratory
drilling, leasing, development, and production activities;
"(C) a summary of management, supervision, and enforcement activities;
"(D) a list of all shut-in and flaring wells; and
" ( E ) recommendations to the Congress (i) for improvements in management, safety, and amount of production from
leasing and operations in the outer Continental Shelf, and
(ii) for resolution of jurisdictional conflicts or ambiguities.
"(2) A report prepared after consultation with the Attorney
General, with recommendations for promoting competition in
the leasing of outer Continental Shelf lands, which shall include
any recommendations or findings by the Attorney General and
any plans for implementing recommended administrative changes
and drafts of any proposed legislation, and which shall contain—
" (A) an evaluation of tne competitive bidding systems permitted under the provisions of section 8 of this Act, and, if
applicable, the reasons why a particular bidding system has
not been utilized;
"(B) an evaluation of alternative bidding systems not permitted under section 8 of this Act, and why such system or
systems should or should not be utilized;
"(C) an evaluation of the effectiveness of restrictions on
joint bidding in promoting competition and, if applicable,
any suggested administrative or legislative action on joint
bidding;
"(D) an evaluation of present measures and a description
of any additional measures to encourage entry of new competitors; and
" ( E ) an evaluation of present measures and a description
of additional measures dealing with supplies of oil and gas to
independent refiners and di^ributors.".

92 STAT. (349

Attorney
General,
consultation.

43 USC 1337.

N E W SECTIONS OF T H E OUTER CONTINENTAL S H E L F LANDS ACT

SEC. 208. The Outer Continental Shelf Lands Act (43 U.S.C. 1331
©t seq.) is amended by adding at the end thereof the following new
sections:
"SEC. 18. OUTER CONTINENTAL SHELF LEASING PROGRAM.—(a) The

Secretary, pursuant to procedures set forth in subsections (c) and (d)
of this section, shall prepare and periodically revise, and maintain an
oil and gas leasing program to implement the policies of this Act^ The
leasing program shall consist of a schedule of proposed lease sales indicating, as precisely as possible, the size, timing, and location of leasing
activity which he determines will best meet national energy needs for
the five-year period following its approval or reapproval. Such leasing
program shall be prepared and maintained in a manner consistent with
the following principles:

43 USC 1344.

92 STAT. 650

PUBLIC LAW 95-372—SEPT. 18, 1978

"(1) Management of the outer Continental Shelf shall be
conducted in a manner which considers economic, social, and
environmental values of the renewable and nonrenewable resources
contained in the outer Continental Shelf, and the potential impact
of oil and gas exploration on other resource values of the outer
Continental Shelf and the marine, coastal, and human
environments.
" (2) Timing and location of exploration, development, and production of oil and gas among the oil- and gas-bearing physiographic regions of the outer Continental Shelf shall be based on a
consideration of—
"(A) existing information concerning the geographical,
geological, and ecological characteristics of such regions;
" ( B ) an equitable sharing of developmental benefits and
environmental risks among the various regions;
"(C) the location of such regions with respect to, and the
relative needs of, regional and national energy markets;
"(D) the location of such regions with respect to other
uses of the sea and seabed, including fisheries, navigation,
existing or proposed sealanes, potential sites of deepwater
ports, and other anticipated uses of the resources and space of
the outer Continental Shelf;
" ( E ) the interest of potential oil and gas producers in the
development of oil and gas resources as indicated by exploration or nomination;
" ( F ) laws, goals, and policies of affected States which have
been specifically identified by the Governors of such States as
relevant matters for the Secretary's consideration;
"(G) the relative environmental sensitivity and marine
productivity of different areas of the outer Continental Shelf;
and
" ( H ) relevant environmental and predictive information
for different areas of the outer Continental Shelf.
"(3) The Secretary shall select the timing and location of leasing, to the maximum extent practicable, so as to obtain a proper
balance between the potential for environmental damage, the
potential for the discovery of oil and gas, and the potential for
adverse impact on the coastal zone.
Fair market
" (4) Leasing activities shall be conducted to assure receipt of
value.
fair market value for the lands leased and the rights conveyed by
the Federal Government.
Appropriations
" (b) The leasing program shall include estimates of the appropriaand staff,
tions and staff required to—
estimates.
«(]^\ obtain resource information and any other information
needed to prepare the leasing program required by this section;
"(2) analyze and interpret the exploratory data and any other
information which may be compiled under the authority of this
Act;
Environmental
"(3) conduct environmental studies and prepare any environstudies and
mental impact statement required in accordance with this Act and
impact statement.
^j^]^ section 102(2) (C) of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332(2) ( C ) ) ; and
"(4) supervise operations conducted pursuant to each lease in
the manner necessary to assure due diligence in the exploration
and development of the lease area and compliance with the require-

PUBLIC LAW 95-372—SEPT. 18, 1978
ments of applicable law and regulations, and with the terms of the
lease.
"(c) (1) During the preparation of any proposed leasing program
under this section, the Secretary shall invite and consider suggestions
for such program from any interested Federal agency, including the
Attorney General, in consultation with the Federal Trade Commission,
and from the Governor of any State which may become an affected
State under such proposed program. The Secretary may also invite
or consider any suggestions from the executive of any affected local
government in such an affected State, which have been previously submitted to the Governor of such State, and from any other person.
"(2) After such preparation and at least sixty days prior to publication of a proposed leasing program in the Federal Register pursuant
to paragraph (3) of this subsection, the Secretary shall submit a copy
of such proposed program to the Governor of each affected State for
review and comment. The Governor may solicit conmients from those
executives of local governments in his State which he, in his discretion,
determinee will be affected by the proposed program. If any comment
by such Governor is received by the Secretary at least fifteen days prior
to submission to the Congress pursuant to such paragraph (3) and
includes a request for any modification of such proposed program, the
Secretary shall reply in writing, granting or denying such request in
whole or in part, or granting such request in such modified form as the
Secretary considers appropriate, and stating his reasons therefor. All
such correspondence between the Secretary and the Governor of any
affected State, together with any additional information and data relating thereto, sthall accompany such proposed program when it is submitted to the Congress.
" (3) Within nine months after the date of enactment of this section,
the Secretary shall submit a proposed leasing program to the Congress,
the Attorney General, and the Governors of affected States, and shall
publish such proposed program in the Federal Register. Each Governor shall, upon request, submit a copy of the proposed leasing program
to the executive of any local government affected by the proposed
program.
"(d) (1) Within ninety days after the date of publication of a proposed leasing program, the Attorney General may, after consultation
with the Federal Trade Commission, submit comments on the anticipated effects of such proposed program upon competition. Any State,
local government, or other person may submit comments and recommendations as to any aspect of such proposed program.
"(2) At least sixty days prior to approving a proposed leasing program, the Secretary shall submit it to the President and the Congress,
together with any comments received. Such submission shall indicate
why any specific recommendation of the Attorney General or a State
or local government was not accepted.
"(3) After the leasing program has been approved by the Secretary, or after eighteen months following the date of enactment of this
section, whichever first occurs, no lease shall be issued unless it is for an
area included in the approved leasing program and unless it contains
provisions consistent with the approved leasing program, except that
leasing shall be permitted to contmue until such program is approved
and for so long thereafter as such program is under judicial or administrative review pursuant to the provisions of this Act.

39-194 O—80—pt. 1

45 : QL3

92 STAT. 651

Publication in
Federal Register.

Leasing prograra,
submittal to
Congress.
Publication in
Federal Register.

Leasing program,
submittal to
President and
Congress.

92 STAT. 652
Review.

Regulations.

Public notice.

State and local
governments,
consultation.

Infonnation,
availability to
Secretary.

43 u s e 1345.

PUBLIC LAW 95-372—SEPT. 18, 1978
"(e) The Secretary shall review the leasing program approved
under this section at least once each year. He may revise and reapprove
such program, at any time, and such revision and reapproval, except
in the case of a revision which is not significant, shall be in the same
manner as originally developed.
"(f) The Secretary shall, by reflation, establish procedures for—
"(1) receipt and consideration of nominations for any area to
be offered for lease or to be excluded from leasing;
"(2) public notice of and participation in development of the
leasing program;
"(3) review by State and local governments which may be
impacted by the proposed leasing;
"(4) periodic consultation with State and local governments,
oil and gas lessees and permittees, and representatives of other
individuals or organizations engaged in activity in or on the outer
Continental Shelf, including those involved in fish and shellfish
recovery, and recreational activities; and
"(5) consideration of the coastal zone management program
being developed or administered by an affected coastal State
pursuant to section 305 or section 306 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1454,1455). ^ ^
Such procedures shall be applicable to any significant revision or
reapproval of the leasing program.
"(g) The Secretary may obtain from public sources, or purchase
from private sources, any survey, data, report, or other information
(including interpretations of such data, survey, report, or other information) which may be necessary to assist him in preparing any environmental impact statement and in making other evaluations required
by this Act. Data of a classified nature provided to the Secretary
under the provisions of this subsection shall remain confidential for
such period of time as agreed to by the head of the department or
agency from whom the information is requested. The Secretary shall
maintain the confidentiality of all privileged or proprietary data or
information for such period of time as is provided for in this Act,
established by regulation, or agreed to by the parties.
"(h) The heads of all Federal departments and agencies shall provide the Secretary with any nonpriviledged or nonproprietary information he requests to assist him in preparing the leasing program and
may provide the Secretary with any privileged or proprietary information he requests to assist him in preparing the leasing program.
Privileged or proprietary information provided to the Secretary under
the provisions of this subsection shall remain confidential for such
period of time as agreed to by the head of the department or agency
from whom the information is requested. In addition, the Secretary
shall utilize the existing capabilities and resources of such Federal
departments and agencies by appropriate agreement.
"SEC. 19. COORDINATION AND CONSULTATION W I T H AFFECTED STATES

AND LOCAL GOVERNMENTS.—(a) Any Governor of any affected State
or the executive of any affected local government in such State may
submit recommendations to the Secretary regarding the size, timing,
or location of a proposed lease sale or with respect to a proposed
development and production plan. Prior to submitting recommendations to the Secretary, the executive of any affected local government
in any affected State must forward his recommendations to the Governor of such State.
-

PUBLIC LAW 95-372—SEPT. 18, 1978
"(b) Such recommendations shall be submitted within sixty days
after notice of such proposed lease sale or after receipt of such development and production plan.
" (c) The Secretary shall accept recommendations of the Governor
and may accept recommendations of the executive of any affected
local government if he determines, after having provided the opportunity for consultation, that they provide for a reasonable balance
between the national interest and the well-being of the citizens of the
affected State. For purposes of this subsection, a determination of
the national interest shall be based on the desirability of obtaining
oil and gas supplies in a balanced manner and on the findings, purposes, and policies of this Act. The Secretary shall communicate to the
Governor, in writing, the reasons for his determination to accept or
reject such Governor's recommendations, or to implement any altemative means identified in consultation with the Governor to provide for
a reasonable balance between the national interest and the well-being
of the citizens of the affected State.
"(d) The Secretary's determination that recommendations provide,
or do not provide, for a reasonable balance between the national
interest and the well-being of the citizens of the affected State shall
be final and shall not, alone, be a basis for invalidation of a proposed
lease sale or a proposed development and production plan in any suit
or judicial review pursuant to section 23 of this Act, unless found to
be arbitrary or capricious.
"(e) The Secretary is authorized to enter into cooperative agreements with affected States for purposes which are consistent with this
Act and other applicable Federal law. Such agreements may include,
but need not be limited to, the sharing of information (in accordance
with the provisions of section 26 of this Act), the joint utilization of
available expertise, the facilitating of permitting procedures, joint
planning and review, and the formation of joint surveillance and monitoring arrangements to carry out applicable Federal and State laws,
regulations, and stipulations relevant to outer Continental Shelf operations both onshore and offshore.
"SEC. 20. ENVIRONMENTAL STUDIES.— (a) (1) The Secretary shall
conduct a study of any area or region included in any oil and gas lease
sale in order to establish information needed for assessment and management of environmental impacts on the human, marine, and coastal
environments of the outer Continental Shelf and the coastal areas
which may be affected by oil and gas development in such area or
region.
"(2) Each study required by paragraph (1) of this subsection shall
be commenced not later than six months after the date of enactment
of this section with respect to anv area or region where a lease sale has
been held or announced by publication of a notice of proposed lease
sale before such date of enactment, and not later than six months prior
to the holding of a lease sale with respect to any area or region where
no lease sale has been held or scheduled before such date of enactment.
The Secretary may utilize information collected in any study prior to
such date of enactment.
"(3) In addition to developing environmental information, any
study of an area or region, to the extent practicable, shall be designed
to predict impacts on the marine biota which may result from chronic
low level pollution or large spills associated with outer Continental
Shelf production, from the introduction of drill cuttings and drilling

92 STAT. 653

;>;.

Post, p. 657.

Post, p. 664.
.j.ffcs>«,
43 USC 1346.

Effective date,
Notice,
publication,

,

92 STAT. 654

Regulations.

•' '
Information,
submittal to
Congress and
availability to
public.
Contracts or
grants.

Study.
43 u s e 1347.

Submittal to
President and
Congress.

PUBLIC LAW 95-372—SEPT. 18, 1978
muds in the area, and from the laying of pipe to serve the offshore
production area, and the impacts of development offshore on the
affected and coastal areas.
"(b) Subsequent to the leasing and developing of any area or
region, the Secretary shall conduct such additional studies to establish
environmental information as he deems necessary and shall monitor
the human, marine, and coastal environments of such area or region in
a manner designed to provide time-series and data trend information
which can be used for comparison with any previously collected data
for the purpose of identifying any significant changes in the quality
and productivity of such environments, for establishing trends in the
areas studied and monitored, and for designing experiments to identify the causes of such changes.
"(c) The Secretary shall, by regulation, establish procedures for
carrying out his duties under this section, and shall plan and carry out
such duties in full cooperation with affected States. To the extent that
other Federal agencies have prepared environmental impact statements, are conducting studies, or are monitoring the affected human,
marine, or coastal environment, the Secretary may utilize the information derived therefrom in lieu of directly conducting such activities.
The Secretary may also utilize information obtained from any State or
local government, or from any person, for the purposes of this section.
For the purpose of carrying out his responsibilities under this section,
the Secretary may by agreement utilize, with or without reimbursement, the services, personnel, or facilities of any Federal, State, or
local government agency.
"(d) The Secretary shall consider available relevant environmental
information in making decisions (including those relating to exploration plans, drilling permits, and development and production plans),
in developing appropriate regulations and lease conditions, and in
issuing operating orders.
"(e) As soon as practicable after the end of each fiscal year, the
Secretary shall submit to the Congress and make available to the
general public an assessment of the cumulative effect of activities conducted under this Act on the human, marine, and coastal environments.
"(f) In executing his responsibilities under this section, the Secretary shall, to the maximum extent practicable, enter into appropriate
arrangements to utilize on a reimbursable basis the capabilities of the
Department of Commerce. In carrying out such arrangements, the
Secretary of Commerce is authorized to enter into contracts or grants
with any person, organization, or entity with funds appropriated to
the Secretary of the Interior pursuant to this Act.
"SEC. 21. SAFETT REGULATIONS.—(a) Upon the date of enactment
of this section, the Secretary and the Secretary of the Department in
which the Coast Guard is operating shall, in consultation with each
other and, as appropriate, with the heads of other Federal departments
and agencies, promptly commence a joint study of the adequacy of
existing safety and health regulations and of the technology, equipment, and techniques available for the exploration, development, and
production of the minerals of the outer Continental Shelf. The results
of such study shall be submitted to the President who shall submit
^ plan to the Congress of his proposals to promote safety and health
in the exploration, development, and production of the minerals of the
outer Continental Shelf.

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 655

"(b) I n exercising their respective responsibilities for the artificial
islands, installations, and other devices referred to in section 4(a) (1)
of this Act, the Secretary, and the Secretary of the Department in 43 use 1333.
which the Coast Guard is operating, shall require, on all new drilling
and production operations and, wherever practicable, on existing operations, the use of the best available and safest technologies which the
Secretary determines to be economically feasible, wherever failure of
equipment would have a significant effect on safety, health, or the
environment, except where the Secretary determines that the incremental benefits are clearly insufficient to justify the incremental costs
of utilizing such technologies.
"(c) The Secretary of the Department in which the Coast Guard
is operating shall promulgate regulations or standards applying to
i^^y.'H
unregulated hazardous working conditions related to activities on the
outer Continental Shelf when he determines such regulations or standards are necessary. The Secretary of the Department in which the
Coast Guard is operating may from time to time modify any regulations, interim or final, dealing with hazardous working conditions on
the outer Continental Shelf.
"(d) Nothing in this Act shall affect the authority provided by
law to the Secretary of Labor for the protection of occupational safety
and health, the authority provided by law to the Administrator of
the Environmental Protection Agency for the protection of the
environment, or the authority provided by law to the Secretary of
Transportation with respect to pipeline safety.
"(e) The Secretary of Commerce, in cooperation with the Secretary Studies.
of the Department m which the Coast Guard is operating, and the
Director of the National Institute of Occupational Safety and
Health, shall conduct studies of underwater diving techniques and
equipment suitable for protection of human safety and improvement
of diver performance. Such studies shall include, but need not be
limited to, decompression and excursion table development and
improvement and all aspects of diver physiological restraints and protective gear for exposure to hostile environments.
"(f) (1) In administering the provisions of this section, the Secretary shall consult and coordinate with the heads of other appropriate
Federal departments and agencies for purposes of assuring that, to the
maximum extent practicable, inconsistent or duplicative requirements
are not imposed.
"(2) The Secretary shall make available to any interested person a Information,
compilation of all safety and other regulations wKich are prepared and availability to
promulgated by any Federal department or agency and applicable to public.
activities on the outer Continental Shelf. Such compilation shall be
revised and updated annually.
"SEC. 22. ENFORCEMENT.— (a) The Secretary, the Secretary of the 43 USC 1348.
Department in which the Coast Guard is operating, and the Secretary
of the Army shall enforce safety and environmental regulations promulgated pursuant to this Act. Each such Federal department may by
agreement utilize, with or without reimbursement, the services, person»'
nel, or facilities of other Federal departments and agencies for the
enforcement of their respective regulations.
"(b) I t shall be the duty of any holder of a lease or permit under ,
this Act to—
"(1) maintain all places of employment within the lease area
or within the area covered by such permit in compliance with

92 STAT. 656

Regulations.

Investigation and
report.

Review.

Witnesses and
other evidence.

PUBLIC LAW 95-372—SEPT. 18, 1978
occupational safety and health standards and, in addition, free
from recognized hazards to employees of the lease holder or permit holder or of any contractor or subcontractor operating within
such lease area or within the area covered by such permit on the
outer Continental Shelf;
"(2) maintain all operations within such lease area or within
the area covered by such permit in compliance with regulations
intended to protect persons, property, and the environment on the
outer Continental Shelf; and
"(3) allow prompt access, at the site of any operation subject
to safety regulations, to any inspector, and to provide such documents and records which are pertinent to occupational or public
health, safety, or environmental protection, as may be requested.
"(c) The Secretary and the Secretarjr of the Department in which
the Coast Guard is operating shall individually, or jointly if they so
agree, promulgate regulations to provide for—
"(1) scheduled onsite inspection, at least once a year, of each
facility on the outer Continental Shelf which is subject to any
environmental or safety regulation promulgated pursuant to this
Act, which inspection shall include all safety equipment designed
to prevent or ameliorate blowouts, fires, spillages, or other major
accidents; and
"(2) periodic onsite inspection without advance notice to the
operator of such facility to assure compliance with such environmental or safety regulations.
"(d) (1) The Secretary or the Secretary of the Department in which
the Coast Guard is operating shall make an investigation and public
report on each major fire and each major oil spillage occurring as a
result of operations conducted pursuant to this Act, and may, in his
discretion, make an investigation and report of lesser oil spillages. For
purposes of this subsection, a major oil spillage is any spillage in one
instance of more than two hundred barrels of oil during a period of
thirty days. All holders of leases or permits issued or maintained
under this Act shall cooperate with the appropriate Secretary in the
course of any such investigation.
"(2) The Secretary or the Secretary of the Department in which
the Coast Guard is operating shall make an investigation and public
report on any death or serious injury occurring as a result of operations conducted pursuant to this Act, and may, in his discretion, make
an investigation and report of any injury. For purposes of this subsection, a serious injury is one resulting in substantial impairment of any
bodily unit or function. All holders of leases or permits issued or maintained under this Act shall cooperate with the appropriate Secretary
in the course of any such investigation.
"(e) The Secretary, or, in the case of occupational safety and
healthj the Secretary of the Department in which the Coast Guard is
operating, may review any allegation from any person of the existence
of a violation of a safety regulation issued under this Act.
"(f) In any investigation conducted pursuant to this section, the
Secretary or the Secretary of the Department in which the Coast
Guard is operating shall have power to summon witnesses and to
require the production of books, papers, documents, and any other evidence. Attendance of witnesses or the production of books, papers,
documents, or any other evidence shall be compelled by a similar process, as in the district courts of the United States. Such Secretary, or his

PUBLIC LAW 95-372—SEPT. 18, 1978
designee, shall administer all necessary oaths to any witnesses summoned before such investigation.
" (g) The Secretary shall, after consultation with the Secretary of
the Department in which the Coast Guard, is operating, include in his
annual report to the Congress required by section 15 of this
Act the number of violations of safety regulations reported or alleged,
any investigations undertaken, the results of such investigations, and
any administrative or judicial action taken as a result of such investigations, and the results of the diving studies conducted under section
21 (e) of this Act.
SEC.

23.

CITIZEN SUITS,

COURT JURISDICTION, AND JUDICIAL

92 STAT. 657

Report to
Congress,
43 USC1343.

^«^' P- 654.
43 USC 1349.

KEVIBW.—(a) (1) Except as provided in this section, any person having a valid legal interest which is or may be adversely affected may
commence a civil action on his own behalf to compel compliance with
this Act against any person, including the United States, and any
other government instrumentality or agency (to the extent permitted
by the eleventh amendment to the Constitution) for any alleged vio- USC prec.title1.
lation of any provision of this Act or any regulation promulgated
under this Act, or of the terms of any permit or lease issued by the
Secretary under this Act.
"(2) Except as provided in paragraph (3) of this subsection, no
action may be commenced under subsection (a) (1) of this section—
"(A) prior to sixty days after the plaintiff has given notice
of the alleged violation, in writing under oath, to the Secretary
and any other appropirate Federal oiRcial, to the State in which
the violation allegedly occurred or is occurring, and to any alleged
violator; or
"(B) if the Attorney General has commenced and is diligently
prosecuting a civil action in a court of the United States or a State
with respect to such matter, but in any such action in a court of
the United States any person having a legal interest which is
or may be adversely affected may intervene as a matter of right.
"(3) An action may be brought under this subsection immediately
after notification of the alleged violation in any case in which the
alleged violation constitutes an imminent threat to the public health or
safety or would immediately affect a legal interest of the plaintiff.
" (4) In any action commenced pursuant to this section, the Attorney
General, upon the request of the Secretary or any other appropirate
Federal official, may intervene as a matter of right.
"(5) A court, in issuing any final order in any action brought pursuant to subsection (a)(1) or subsection (c) of this section, may award
costs of litigation, including reasonable attorney and expert witness
fees, to any party, whenever such court determines such award is appropriate. The court may, if a temporary restraining order or preliminary injunction is sought, require the filing of a bond or equivalent
security in a sufficient amount to compensate for any loss or damage
suffered, in accordance with the Federal Rules of Civil Procedure.
"(6) Except as provided in subsection (c) of this section, all suits
challenging actions or decisions allegedly in violation of, or seeking
enforcement of, the provisions of this Act, or any regulation promulgated under this Act, or the terms of any permit or lease issued by the
Secretary under this Act, shall be undertaken in accordance with the
procedures described in this subsection. Nothing in this section shall
restrict any right which any person or class of persons may have under
any other Act or common law to seek appropriate relief.
"(b) (1) Except as provided in subsection (c) of this section, the
district courts of the United States shall have jurisdiction of cases and

92 STAT. 658

Ante, p. 649.

PUBLIC LAW 95-372—SEPT. 18, 1978
controversies arising out of, or in connection with (A) any operation
conducted on the outer Continental Shelf which involves exploration,
development, or production of the minerals, of the subsoil and seabed
of the outer Continental Shelf, or which involves rights to such minerals, or (B) the cancellation, suspension, or termination of a lease or
permit under this Act. Proceedings with respect to any such case or
controversy may be instituted in the judicial district in which any
defendant resides or may be found, or in the judicial district of the
State nearest the place the cause of action arose.
" (2) Any resident of the United States who is injured in any manner
through the failure of any operator to comply with any rule, regulation, order, or permit issued pursuant to this Act may bring an action
for damages (including reasonable attorney and expert witness fees)
only in the judicial district having jurisdiction under paragraph (1)
of this subsection.
"(c) (1) Any action of the Secretary to approve a leasing program
pursuant to section 18 of this Act shall be subject to judicial review
only in the United States Court of Appeal for the District of
Columbia.
"(2) Any action of the Secretary to approve, require modification
of, or disapprove any exploration plan or any development and production plan under this Act shall be subject to judicial review only in
a United States court of appeals for a circuit in which an affected State
is located.
"(3) The judicial review specified in paragraphs (1) and (2) of
this subsection shall be available only to a person who (A) participated in the administrative proceedings related to the actions specified
in such paragraphs, (B) is adversely affected or aggrieved by such
action, (C) files a petition for review of the Secretary's action within
sixty days after the date of such action, and (D) promptly transmits
copies of the petition to the Secretary and to the Attorney General.
"(4) Any action of the Secretary specified in paragraph (1) or (2)
shall only be subject to review pursuant to the provisions of this subsection, and shall be specifically excluded from citizen suits which are
permitted pursuant to subsection (a) of this section.
"(5) The Secretary shall file in the appropriate court the record
of any public hearings required by this Act and any additional information upon which the Secretary based his decision, as required by section 2112 of title 28, United States Code. Specific objections to the
action of the Secretary shall be considered by the court only if the
issues upon which such objections are based have been submitted to the
Secretary during the administrative proceedings related to the actions
involved.
" (6) The court of appeals conducting a proceeding pursuant to this
subsection shall consider the matter under review solely on the record
made before the Secretary. The findings of the Secretary, if supported
by substantial evidence on the record considered as a whole, shall be
conclusive. The court may afiirm, vacate, or modify any order or decision or may remand the proceedings to the Secretary for such further
action as it may direct.
"(7) Upon the filing of the record with the court, pursuant to paragraph (5), the jurisdiction of the court shall be exclusive and its judgment shall be final, except that such judgment shall be subject to
review by the Supreme Court of the United States upon writ of
certiorari.

PUBLIC LAW 95-372—SEPT. 18, 1978

93 STAT. 659

" ( d ) Except as t o causes of action which t h e court considers of
greater importance, any action under this section shall take precedence
on the docket over all other causes of action and shall be set for hearing
at t h e earliest practical date a n d expedited in every way.
" S E C . 24. REMEDIES AND P E N A L T I E S . — ( a )

A t the request of the

43 USC 1350.

Secretary, the Secretary of the A r m y , or the Secretary of the Department i n which t h e Coast G u a r d is operating, the Attorney General
or a United States attorney shall institute a civil action in the district
court of the United States for the district in which the affected operation is located for a temporary restraining order, injunction, or other
appropriate remedy t o enforce any provision of this Act, any i-egulrtion or order issued under this Act, or any term of a lease, licenpo, or
permit issued pursuant to this Act.
" ( b ) I f any person fails to comply with any provision of this Act,
,«-!%
or any term of a lease, license, or permit issued pursuant t o this Act,
- '^^-^ '"'
or any regulation or order issued under this Act, after notice of such
failure and expiration of any reasonable period allowed for cori'ective
action, such pei-son shall be liable for a civil j^enalty of not more than
$10,000 for each day of the continuance of such failure. The Secretary
may assess, collect, and compromise any such penalty. No penalty shall Hearing,
be assessed until the person charged with a violation has been given an
opportunity for a hearing.
" ( c ) A n y person who knowingly and willfully (1) violates any provision of this Act, any term of a lease, license, or permit issued pursuant
to this Act, or any regulation or order issued under t h e authority of this
Act designed to protect health, safety, or the environment o r conserve
natural resources, (2) makes any false statement, representation, or
certification in any application, record, report, or other document filed
or required to be maintained under t h i s Act, (3) falsifies, tampers with,
or renders inaccurate any monitoring device or method of record
required to be maintained under this Act, or (4) reveals any data or
information required t o be kept confidential by this A c t shall, upon
conviction, be punished by a fine of n o t more t h a n $100,000, or by
imprisonment for n o t more t h a n ten years, or both. E a c h day that a
violation under clause (1) of this subsection continues, or each day
t h a t a n y monitoring device or d a t a recorder remains inoperative or
inaccurate because of any activity described in clause (3) of this subsection, shall constitute a separate violation.
" ( d ) Whenever a corporation or other entity is subject t o prosecution under subsection (c) of this section, any officer or agent of such
corporation or entity who knowingly and willfully authorized, ordered,
or carried out the proscribed activity shall be subject t o the same fines
or imprisonment, or both, as provided for under subsection (c) of this
section.
" (e) T h e remedies and penalties prescribed in this Act shall be concurrent and cumulative and the exercise of one shall not preclude the
exercise of the others. F u r t h e r , the remedies and penalties prescribed in
this A c t shall be in addition to a n y other remedies a n d penalties
afforded by any other law or regulation.
" S E C . 25. O I L AND G A S DEVELOPMENT AND P R O D U C T I O N . — ( a ) ( 1 )

P r i o r to development and production pursuant to an oil and gas lease
issued after the date of enactment of this section in any area of the outer
Continental Shelf, other t h a n the Gulf of Mexico, or issued o r maintained prior to such date of enactment in any area of the outer Continental Shelf, other than the Gulf of Mexico, with respect to which no

Plan, submittal to

Secretary,
43 USC 1351.

92 STAT. 660

PUBLIC LAW 95-372—SEPT. 18, 1978

oil or gas has been discovered in paying quantities prior to such date of
enactment, the lessee shall submit a development and production plan
(hereinafter in this section referred to as a 'plan') to the Secretary, for
approval pursuant to this section,
" (2) A plan shall be accompanied by a statement describing all
facilities and operations, other than those on the outer Continental
Shelf, proposed by the lessee and known by him (whether or not owned
or operated by such lessee) which will be constructed or utilized in the
development and production of oil or gas from the lease area, including
the location and site of such facilities and operations, the land, labor,
material, and energy requirements associated with such facilities and
operations, and all environmental and safety safeguards to be implemented.
Plan, availability
"(3) Except for any privileged or proprietary information (as such
to public.
term is defined in regulations issued by the Secretary), the Secretary,
within ten days after receipt of a plan and statement, shall (A) submit
such plan and statement to the Governor of any affected State, and,
upon i-equest, to the executive of any affected local government, and
(B) make such plan and statement available to any appropriate interstate regional entity and the public.
" (b) After the date of enactment of this section, no oil and gas lease
may be issued pursuant to this Act in any region of the outer Continental Shelf, other than the Gulf of Mexico, unless such lease requires
that development and production activities be carried out in accordance with a plan which complies with the requirements of this section.
" (c) A plan may apply to more than one oil and gas lease, and shall
set forth, in the degree of detail established by regulations issued by
the Secretary—
" (1) the specific work to be performed;
" (2) a description of all facilities and operations located on the
outer Continental Shelf which are proposed by the lessee or known
by him (whether or not owned or operated by such lessee) to be
directly related to the proposed development, including the location and size of such facilities and operations, and the land, labor,
material, and energy requirements associated with such facilities
and operations;
"(3) the environmental safeguards to be implemented on the
outer Continental Shelf and how such safeguards are to be implemented ;
" (4) all safety standards to be met and how such standards are
to be met;
"(5) an expected rate of development and production and a
time schedule for performance; and
"(6) such other relevant information as the Secretary may by
regulation require.
"(d) The Secretary shall not grant any license or permit for any
activity described in detail in a plan and affecting any land use or
water use in the coastal zone of a State with a coastal zone management
program approved pursuant to section 306 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1455), unless the State concurs or is conclusively presumed to concur with the consistency certification accompanying such plan pursuant to section 307(c) (3)(B) (i) or (ii) of
16 use 1456.
such Act, or the Secretary of Commerce makes the finding authorized
by section 307(c) (3) (B) (iii) of such Act.

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 661

"(e) (1) At least once the Secretary shall declare the approval of a
development and production plan in any area or region (as defined by
the Secretary) of the outer Continental Shelf, other than the Gulf of
Mexico, to be a major Federal action.
" (2) The Secretary may require lessees of tracts for which development and production plans have not been approved, to submit preliminary or final plans for their leases, prior to or immediately after
a determination by the Secretary that the procedures under the
42 use 4321
National Environmental Policy Act of 1969 sihall commence.
"(f) If approval of a development and production plan is found note.
to be a major Federal action, the Secretary shall transmit the draft Environmental
statement
environmental impact statement to the Governor of any affected State, impact
availability
and upon request, to the executive of any local government, and shall draft,
to public.
make such draft available to any appropriate interstate regional
entity and the public.
" (g) If approval of a development and production plan is not found
to be a major Federal action, the Governor of any affected State and
the executive of any affected local government shall have sixty days
from the date of receipt of the plan from the Secretary to submit comments and recommendations. Prior to submitting recommendations to
the Secretary, the executive of any affected local government must forward his recommendations to the Governor of his State. Such comments and recommendations shall be made available to the public upon
request. In addition, any interested person may submit comments and
recommendations.
" ( h ) ( 1 ) After reviewing the record of any public hearing held Public hearing.
with respect to the approval of a plan pursuant to the National Environmental Policy Act of 1969 or the comments and recommendations 42 use 4321
submitted under subsection (g) of this section, the Secretary shall, note.
within sixty days after the release of the final environmental impact
statement prepared pursuant to the National Environmental Policy
Act of 1969 in accordance with subsection (e) of this section, or sixty
days after the period provided for comment under subsection (g) of
this section, approve, disapprove, or require modifications of the plan.
'jc •The Secretary shall require modification of a plan if he determines that
the lessee has failed to make adequate provision in such plan for safe
operations on the lease area or for protection of the human, marine, or
coastal environment, including compliance with the regulations prescribed by the Secretary pursuant to paragraph (8) of section 5(a) of
this Act. Any modification required by the Secretary which involves
activities for which a Federal license or permit is required and which
affects any land use or water use in the coastal zone of a State with a
coastal zone management program approved pursuant to section 306 of
the Coastal Zone Management Act of 1972 (16 U.S.C. 1455) must receive concurrence by such State with respect to the consistency certification accompanying such plan pursuant to section 307(c) (3) (B) (i)
or (ii) of such Act unless the Secretary of Commerce makes the finding 16 use 1456.
authorized by section 307(c) (3) (B) (iii) of such Act. The Secretary Disapproval of
plan.
shall disapprove a plan—
" (A) if the lessee fails to demonstrate that he can comply with
the recjuirements of this Act or other applicable Federal law,
including the regulations prescribed by the Secretary pursuant to
paragraph (8) of section 5(a) of this Act;
"(B) if any of the activities described in detail in the plan for
which a Federal license or permit is required and which affects

92 STAT. 662

16 use 1456.

y

16 use 1451
note.

4

43 use 1334.

PUBLIC LAW 95-372—SEPT. 18, 1978
any land use or water use in the coastal zone of a State with a
coastal zone management program approved pursuant to section
306 of the Coastal Zone Management Act of 1972 (16 U.S.C.
1455] do not receive concurrence by such State with respect to the
consistency certification accompanying such plan pursuant to section 307(c) (3) (B) (i) or (ii) of such Act and the Secretary of
Commerce does not make the finding authorized by section 307(c)
(3)(B)(iii) ofsuchAct;
"(C) if operations threaten national security or national
defense; or
"(D) if the Secretary determines, because of exceptional geological conditions in the lease areas, exceptional resource values
in the marine or coastal environment, or other exceptional circumstances, that (i) implementation of the plan would probably
cause serious harm or damage to life (including fish and other
aquatic life), to property, to any mineral deposits (in areas leased
or not leased), to the national security or defense, or to the marine,
coastal or human environments, (ii) the threat of harm or damage will not disappear or decrease to an acceptable extent within a
reasonable period of time, and (iii) the advantages of disapproving the plan outweigh the advantages of development and
production.
" (2) (A) If a plan is disapproved—
"(i) under subparagraph (A) of paragraph (1); or
"(ii) under suoparagraph (B) of paragraph (1) with respect
to a lease issued after approval of a coastal zone management program pursuant to the Coastal Zone Management Act of 1972 (16
U . a C . 1455),
the lessee shall not be entitled to compensation because of such disapproval.
"(B) If a plan is disapproved—
"(i) under subparagraph (C) or (D) of paragraph ( 1 ) ; or
"(ii) under subparagraph (B) of paragraph (1) with respect
to a lease issued before approval of a coastal zone management
program pursuant to the Coastal Zone Management Act of 1972,
and such approval occurs after the lessee has submitted a plan to
the Secretary,
the term of the lease shall be duly extended, and at any time within
five years after such disapproval, the lessee may reapply for approval
of the same or a modified plan, and the Secretary shall approve, disapprove, or require modifications of such plan in accordance witli this
subsection.
"(C) Upon expiration of the five-year period described in subparagraph (B) of this paragraph, or, in the Secretary's discretion, at an
earlier time upon request of a lessee, if the Secretary has not approved
a plan, the Secretary shall cancel the lease and the lessee shall be
entitled to receive compensation in accordance with section 5(a) (2)
(C) of this Act. The Secretary may, at any time within the five-year
period described in subparagraph (B) of this paragraph, require the
lessee to submit a development and production plan for approval, disapproval, or modification. If the lessee fails to submit a required plan
expeditiously and in ^ood faith, the Secretary shall find that the lessee
has not been duly diligent in pursuing his obligations under the lease,
and shall immediately initiate procedures to cancel such lease, without
compensation, under the provisions of section 5(c) of this Act.

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 663

"(3) The Secretary shall, from time to time, review each plan Review,
approved under this section. Such review shall be based upon changes
in available information and other onshore or offshore conditions
affecting or impacted by development and production pursuant to such
plan. If the review indicates that the plan should be revised to meet the
requirements of this subsection, the Secretary shall require such
revision.
"(i) The Secretary may approve any revision of an approved plan
proposed by the lessee if he determines that such revision will lead to
greater recovery of oil and natural gas, improve the efficiency, safety,
and environmental protection of the recovery operation, is the only
means available to avoid substantial economic hardship to the lessee,
or is otherwise not inconsistent with the provisions of this Act, to the
extent such revision is consistent with protection of the human, marine, and coastal environments. Any revision of an approved plan
which the Secretary determines is significant shall be reviewed in
accordance with subsections (d) through (f) of this section.
"(j) Whenever the owner of any lease fails to submit a plan in
accordance with regulations issued under this section, or fails to comply with an approved plan, the lease may be canceled in accordance
with sections 5 (c) and (d). Termination of a lease because of failure 43 use 1334.
to comply with an approved plan, including required modifications
or revisions, shall not entitle a lessee to any compensation.
" (k) If any development and production plan submitted to the Sec- Plan, transmittiU
retary pursuant to this section provides for the production and trans- to Federal Energy
portation of natural gas, the lessee shall contemporaneously submit to Regulatory
the Federal Energy Regulatory Commission that portion of such plan Commission.
which relates to production of natural gas and the facilities for transportation of natural gas. The Secretary and the Federal Energy Regulatory Commission shall agree as to which of them shall prepare an
environmental impact statement pursuant to the National Environmental Policy Act of 1969 applicable to such portion of such plan, or 42 u s e 4321
conduct studies as to the effect on the environment of implementing it. note.
Thereafter, the findings and recommendations by the agency preparing such environmental impact statement or conducting such studies
pursuant to such agreement shall be adopted by the other agency, and
such other agency shall not independently prepare another environmental impact statement or duplicate such studies with respect to such
portion of such plan, but the Federal Energy Regulatory Commission,
m connection with its review of an application for a certificate of
r
public convenience and necessity applicable to such transportation
facilities pursuant to section 7 of the Natural Gas Act (15 U.S.C. 717),
may prepare such environmental studies or statement relevant to certification of such transportation facilities as have not been covered
by an environmental impact statement or studies prepared by the
Secretary. The Secretary, in consultation with the Federal Energy Rules.
Regulatory Commission, shall promulgate rules to implement this
subsection, but the Federal Energy Regulatory Commission shall
retain sole authority with respect to rules and procedures applicable
to the filing of any application with the Commission and to all aspects
of the Commission's review of, and action on, any such application.
"(1) The Secretary may require the provisions of this section to
apply to an oil and gas lease issued or maintained under this Act,
which is located in that area of the Gulf of Mexico which is adjacent

92 STAT. 664
43 use 1333.
43 use 1352.

PUBLIC LAW 95-372—SEPT. 18, 1978
to the State of Florida, as determined pursuant to section 4(a) (2) of
this Act.
"SEC. 26. OUTER CONTINENTAL SHELF OIL AND GAS INFORMATION

PROGRAM.—(a) (1) (A) Any lessee or permittee conducting any exploration for, or development or production of, oil or gas pursuant to
this Act shall provide the Secretary access to all data and information
(including processed, analyzed, and interpreted information) obtained
from such activity and shall provide copies of such data and informaRegulations.
tion as the Secretary may request. Such data and information shall be
provided in accordance with regulations which the Secretary shall
prescribe.
" ( B ) If an interpretation provided pursuant to subparagraph (A)
of this paragraph is made in good faith by the lessee or permittee,
such lessee or permittee shall not be held responsible for any consequence of the use of or reliance upon such interpretation.
"(C) Whenever any data and information is provided to the Secretary, pursuant to subparagraph (A) of this paragraph—
"(i) by a lessee, in the form and manner of processing which is
utilized by such lessee in the normal conduct of his business, the
Secretary shall pay the reasonable cost of reproducing such data
and information;
"(ii) by a lessee, in such other form and manner of processing
as the Secretary may request, the Secretary shall pay the reasonable cost of processing and reproducing such data and information;
"(iii) by a permittee, in the form and manner of processing
which is utilized by such permittee in the normal conduct of his
business, the Secretary shall pay such permittee the reasonable
cost of reproducing such data and information for the Secretary
and shall pay at the lowest rate available to any purchaser for
processing such data and information the costs attributable to such
>• •
processing; and
"(iv) by a permittee, in such other form and manner of processing as the Secretary may request, the Secretary shall pay such
permittee the reasonable cost of processing and reproducing such
data and information for the Secretary,
pursuant to such regulations as he may prescribe.
"(2) Each Federal department and agency shall provide the Secretary with any data obtained by such Federal department or agency
43 use 1340.
pursuant to section 11 of this Act, and any other information which
may be necessary or useful to assist him in carrying out the provisions
of this Act.
"(b)(1) Data and information provided to the Secretary pursuant
to subsection (a) of this section shall be processed, analyzed, and interpreted by the Secretary for purposes of carrying out his duties under
this Act.
Data, submittal to
" (2) As soon as practicable after information provided to the SecState and local
retary pursuant to subsection (a) of this section is processed, analyzed,
governments.
and interpreted, the Secretary shall make available to the affected
States, and upon request, to any affected local government, a summary
of data designed to assist them in planning for the onshore impacts of
possible oil and gas development and production. Such summary shall
include estimates of (A) the oil and gas reserves in areas leased or to
be leased, (B) the size and timing of development if and when oil or

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 665

gas, or both, is found, (C) the location of pipelines, and (D) the
general location and nature of onshore facilities.
"(c) The Secretary shall prescribe regulations to (1) assure that Regulations
the confidentiality of privileged or proprietary information received
by the Secretary under this section will be maintained, and (2) set
forth the time periods and conditions which shall be applicable to the
release of such information. Such regulations shall include a provision
that no such information will be transmitted to any affected State
unless the lessee, or the permittee and all persons to whom such permittee has sold such information under promise of confidentiality,
agree to such transmittal.
Privileged
"(d) (1) The Secretary shall transmit to any affected State—
"(A) an index, and upon request copies of, all relevant actual information,
or proposed programs, plans, reports, environmental impact state- transmittal to
ments, tract nominations (including negative nominations) and affected State.
other lease sale information, any similar type of relevant information, and all modifications and revisions thereof and comments
thereon, prepared or obtained by the Secretary pursuant to this
Act, but no information transmitted by the Secretary under this
subsection shall identify any particular tract with the name or
names of any particular party so as not to compromise the competitive position of any party or parties participating in the
nominations ;
"(B) (i) the summary of data prepared by the Secretary pursuant to subsection (b) (2) of this section, and (ii) any other
processed, analyzed, or interpreted data prepared by the Secretary pursuant to subsection (b) (1) of this section, unless the Secretary determines that transmittal of such data prepared pursuant
to such subsection (b) (1) would unduly damage the competitive
position of the lessee or permittee who provided the Secretary
with the information which the Secretary had processed, analyzed, or interpreted; and
"(C) any relevant information received by the Secretary pursuant to subsection (a) of this section, subject to any applicable
requirements as to confidentiality which are set forth in regulations prescribed under subsection (c) of this section.
"(2) Notwithstanding the provisions of any regulation required
pursuant to the second sentence of subsection (c) of this section, the
Governor of any affected State may designate an appropriate State
official to inspect, at a regional location which the Secretary shall designate, any privileged information received by the Secretary regarding any activity adjacent to such State, except that no such inspection
shall take place prior to the sale of a lease covering the area in which
such activity was conducted. Knowledge obtained by such State during such inspection shall be subject to applicable requirements as to
confidentiality which are set forth in regulations prescribed under subsection (c) of this section.
"(e) Prior to transmitting any privileged information to any State,
or granting such State access to such information, the Secretary shall
enter into a written agreement with the Governor of such State in
which such State agrees, as a condition precedent to receiving or being
granted access to such information, to waive the defenses set forth in
subsection (f) (2) of this section, and to hold the United States harmless from any violations of the regulations prescribed pursuant to subsection (c) that the State or its employees may commit.

92 STAT. 666
Civil action.

43 use 1353.

43 use 1335,
1336.

Allocation or
lottery sale.

PUBLIC LAW 95-372—SEPT. 18, 1978
"(f) (1) Whenever any employee of the Federal Government or of
any State reveals information in violation of the regulations prescribed pursuant to subsection (c) of this section, the lessee or permittee who supplied such information to the Secretary or to any other
Federal official, and any person to whom such lessee or permittee has
sold such information under promise of confidentiality, may commence
a civil action for damages in the appropriate district court of the
United States against the Federal Government or such State, as the
case may be.
"(2) In any action commenced against the Federal Government or
a State pursuant to paragraph (1) of this subsection, the Federal Government or such State, as the case may be, may not raise as a defense
(A) any claim of sovereign immunity, or (B) any claim that the
employee who revealed the privileged information which is the basis of
such suit was acting outside the scope of his employment in revealing
such information.
"(g) Any provision of State or local law which provides for public
access to any privileged information received or obtained by any person pursuant to this Act is expressly preempted by the provisions of
this section, to the extent that it applies to such information.
"(h) If the Secretary finds that any State cannot or does not comply
with the regulations issued under subsection (c) of this section, he
shall thereafter withhold transmittal and deny inspection of privileged information to such State until he finds that such State can and
will comply with such regulations.
"SEC. 27. FEDERAL PURCHASE AND DISPOSITION or O I L AND GAS.—

(a) (1) Except as may be necessary to comply with the provisions of
sections 6 and 7 of this Act, all royalties or net profit shares, or both,
accruing to the United States under any oil and gas lease issued or
maintained in accordance with this Act, shall, on demand of the Secretary, be paid in oil or gas.
"(2) The United States shall have the right to purchase not to
exceed 16% per centum by volume of the oil and gas produced pursuant to a lease issued or maintained in accordance with this Act, at
the regulated price, or, if no regulated price applies, at the fair market
value at the well head of the oil and gas saved, removed, or sold, except that any oil or gas obtained by the United States as royalty or
net profit share shall be credited against the amount that may be
purchased under this subsection.
"(3) Title to any royalty, net profit share, or purchased oil or gas
may be transferred, upon request, by the Secretary to the Secretary
of Defense, to the Administrator of the General Services Administration, or to the Secretary of Energy, for disposal within the Federal
Government.
"(b) (1) The Secretary, except as provided in this subsection, may
offer to the public and sell by competitive bidding for not more than
its regulated price, or, if no regulated price applies, not less than its
fair market value, any part of the oil (A) obtained by the United
States pursuant to any lease as royalty or net profit share, or (B)
purchased by the United States pursuant to subsection (a) (2) of this
section.
"(2) Whenever, after consultation with the Secretary of Energy,
the Secretary determines that small refiners do not have access to adequate supplies of oil at equitable prices, the Secretary may dispose
of any oil which is taken as a royalty or net profit share accruing or

PUBLIC LAW 95-372—SEPT. 18, 1978
reserved to the United States pursuant to any lease issued or maintained under this Act, or purchased by the United States pursuant to
subsection (a) (2) of this section, by conducting a lottery for the sale
of such oil, or may equitably allocate such oil among the competitors
for the purchase of such oil, at the regulated price, or if no regiilated
price applies, at its fair market value. The Secretary shall limit participation in any allocation or lottery sale to assure such access and
shall publish notice of such allocation or sale, and the terms thereof, at
least thirty days in advance. Such notice shall include qualifications for
participation, the amount of oil to be sold, and any limitation in the
amount of oil which any participant may be entitled to purchase.
"(3) The Secretary may only sell or otherwise dispose of oil
described in paragraph (1) of this subsection in accordance with any
provision of law, or regulations issued in accordance with such provisions, which provide for the Secretary of Energy to allocate, transfer,
exchange, or sell oil in amounts or at prices determined by such provision of law or regulations.
"(c)(1) Except as provided in paragraph (2) of this subsection,
the Secretary, pursuant to such terms as he determines, many offer to
the public and sell by competitive bidding for not more than its regulated price, or, if no regulated price applies, not less than its fair
market value any part of the gas (A) obtained by the United States
pursuant to a lease as royalty or net profit share, or (B) purchased by
the United States pursuant to subsection (a) (2) of this section.
"(2) Whenever, after consultation with and advice from the Secretary of Energy, the Federal Energy Regulatory Commission determines that an emergency shortage of natural gas is threatening to
cause severe economic or social dislocation in any region of the United
States and that such region can be serviced in a practical, feasible, and
efficient manner by royalty, net profit share, or purchased gas obtained
pursuant to the provisions of this section, the Secretary of the Interior
may allocate or conduct a lottery for the sale of such gas, and shall
limit participation in any allocation or lottery sale of such gas to
any person servicing such region, but he shall not sell any such gas for
more than its regulated price, or, if no regulated price applies, less
than its fair market value. Prior to selling or allocating any gas pursuant to this subsection, the Secretary shall consult with the Federal
Energy Regulatory Commission.
"(d) The lessee shall take any Federal oil or gas for which no
acceptable bids are received, as determined bv the Secretary, and which
is not transferred pursuant to subsection (a) (3) of this section, and
shall pay to the United States a cash amount equal to the regulated
price, or, if no regulated price applies, the fair market value of the oil
or gas so obtained.
" (e) As used in this section—
"(1) the term 'regulated price' means the highest price—
"(A) at which oil many be sold pursuant to the Emergency Petroleum Allocation Act of 1973 and any rule or order
issued under such Act;
" ( B ) . at which natural gas may be sold to natural-gas companies pursuant to the Natural Gas Act, any other Act, regulations governing natural gas pricing, or any rule or order
issued under any such Act or any such regulations; or
"(C) at which either Federal oil or gas may be sold under
any other provision of law or rule or order thereunder which

39-194 O—80—pt. 1

46 ; QL3

92 STAT. 667

Notice.

Regulations.

Natural gas
emergency.
Allocation or
lottery sale.

Federal Energy
Regulatory
Commission,
consultation.

"Regulated
price."
15 u s e 751 note.

15 u s e 717w.

92 STAT. 668

43 use 1341.
43 use 1354.

Presidential
findings,
publication.

Presidential
report to
eongress.

Resolution of
disapproval.

43 use 1355.

PUBLIC LAW 95-372—SEPT. 18, 1978
sets a price (or manner for determining a price) for oil or
gas; and
"(2) the term 'small refiner' has the meaning given such term
by Small Business Administration Standards 128.3-8 (d) and (g),
as in effect on the date of enactment of this section or as thereafter revised or amended.
"(f) N'othing in this section shall prohibit the right of the United
States to purchase any oil or gas produced on the outer Continental
Shelf as provided by section 12 (b) of this Act.
"SEC. 28. LIMITATION" ON EXPORT.—(a) Except as provided in subsection (d) of this section, any oil or gas produced from the outer
Continental Shelf shall be subject to the requirements and provisions
of the Export Administration Act of 1969 (50 App. U.S.C. 2401 et
seq.).
(b) Before any oil or gas subject to this section may be exported
under the requirements and provisions of the Export Administration
Act of 1969, the President shall make and publish an express finding
that such exports will not increase reliance on imported oil or gas, are
in the national interest, and are in accord with the provisions of the
Export Administration Act of 1969.
"(c) The President shall submit reports to the Congress containing
findings made under this section, and after the date of receipt of such
report Congress shall have a period of sixt^^ calendar days, thirty
days of which Congress must have been in session, to consider whether
exports under the terms of this section are in the national interest.
If the Congress within such time period passes a concurrent resolution
of disapproval stating disagreement with the President's finding concerning the national interest, further exports made pursuant to such
Presidential finding shall cease.
"(d) The provisions of this section shall not apply to any oil or gas
which is either exchanged in similar quantity for convenience or
increased efficiency of transportation with persons or the government of
a foreign state, or which is temporarily exported for convenience or
increased efficiency of transportation across parts of an adjacent foreign state and reenters the United States, or which is exchanged or
exported pursuant to an existing international agreement.
"SEC. 29. RESTRICTIONS ON EMPLOYMENT.—No full-time officer or

employee of the Department of the Interior who directly or indirectly
discharged duties or responsibilities under this Act, and who was at
any time during the twelve months preceding the termination of his
employment with the Department compensated under the Executive
Schedule or compensated at or above the annual rate of basic pay for
3 CFR, 1977
grade GS-16 of the General Schedule shall—
eomp., p. 142.
"(1) within two years after his employment with the Depart5 u s e 5332 note.
ment has ceased—
"(A) knowingly act as agent or attorney for, or otherwise
represent, any other person (except the United States) in
any formal or informal appearance before;
"(B) with the intent to influence, make any oral or written
communication on behalf of any other person (except the
United States) to; or
"(C) knowingly aid or assist in representing any other
person (except the United States) in any formal or informal
appearance before,
any department, agency, or court of the United States, or any
officer or employee thereof, in connection with any judicial or

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 669

other proceeding, application, request for a ruling or other determination, regulation, order, lease, permit, rulemaking, or other
particular matter involving a specific party or parties in which
the United States is a party or has a direct and substantial interest which was actually pending under his official responsibility
as an officer or employee within a period of one year prior to the
termination of such responsibility or in which he participated
personally and substantially as an officer or employee; or
"(2) within one year after his employment with the Department has ceased—
"(A) knowingly act as agent or attorney for, or otherwise
represent, any other person (except the United States) in
any formal or informal appearance before; or
"(B) with the intent to influence, make any oral or written
communication on behalf of any other person (except the
United States) to,
the Department of the Interior, or any officer or employee thereof, in connection with any judicial, rulemaking, regulation, order,
lease, permit, regulation, or other particular matter which is
pending before the Department of the Interior or in which the
Department has a direct and substantial interest.
- s;
"SEC. 30. DOCUMENTATION, KEGISTRY, AND MANNING REQUIRE- 43 USC1356.
MENTS.—(a) Within six months after the date of enactment of this Regulations,
section, the Secretary of the Department in which the Coast Guard is
operating shall issue regulations w'hich require that any vessel, rig,
platform, or other vehicle or structure—
"(1) which is used at any time after the one-year period beginning on the effective date of sudh regulations for activities pursuant to this Act and which is built or rebuilt at any time after such
one-year period, when required to be documented by the laws of
the United States, be documented under the laws of the United
States;
"(2) which is used for activities pursuant to this Act, comply,
except as provided in subsection (b), with such minimum standards of design, construction, alteration, and repair as the Secretary
or the Secretary of the Department in which the Coast Guard is
operating establishes; and
"(3) which is used at any time after the one-year period beginning on the effective date of such regulations for activities pursuant to this Act, be manned or crewed, except as provided in
subsection (c), by citizens of the United States or aliens lawfully
admitted to the United States for permanent residence.
"(b) The regulations issued under subsection (a) (2) of this section
shall not apply to any vessel, rig, platform, or other vehicle or structure built prior to the date of enactment of this section, until such
time after such date as such vehicle or structure is rebuilt.
"(c) The regulations issued under subsection (a) (3) of this section
^ a l l not apply—
"(1) to any vessel, rig, platform, or other vehicle or structure
if—
"(A) specific contractual provisions or national registry
maiming requirements in effect on the date of enactment of
this section provide to the contrary;
"(B) there are not a sufficient number of citizens of the
United States, or aliens lawfully admitted to the United

92 STAT. 670

PUBLIC LAW 95-372—SEPT. 18, 1978
States for permanent residence, qualified and available for
such work; or
"(C) the President makes a specific finding, with respect
to the particular vessel, rig, platform, or other vehicle or
structure, that application would not be consistent with the
national interest; and
"(2) to any vessel, rig, platform, or other vehicle or structure,
over 50 percent of which is owned by citizens of a foreign nation
or with respect to which the citizens of a foreign nation have the
right effectively to control, except to the extent and to the degree
that the President determines that the government of such foreign nation or any of its political subdivisions has implemented,
by statute, regulation, policy, or practice, a national manning
requirement for equipment engaged in the exploration, development, or production of oil and gas in its offshore areas.".
TITLE III—OFFSHORE OIL SPILL POLLUTION FUND
DEFINITIONS

43 use 1811.

SEC. 301. For the purposes of this title, the term—
(1) "Secretary" means the Secretary of Transportation;
(2) "Fund" means the Offshore Oil Pollution Compensation
Fund established under section 302 of this title;
(3) "person" means an individual, firm, corporation, association,
partnership, consortium, joint venture, or governmental entity;
(4) "incident" means any occurrence or series of related occurrences, involving one or more offshore facilities or vessels, or any
combination thereof, which causes or poses an imminent threat of
oil pollution;
(5) "vessel" means every description of watercraft or other contrivance, whether or not self-propelled, which is operating in the
waters above the Outer Continental Shelf (as the term "outer
Continental Shelf" is defined in section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 ( a ) ) ) , or whidi is operating in the waters above submerged lands seaward from the
coastline of a State (as the term "submerged lands" is described
in section 2(a) of the Submerged Lands Act (43 U.S.C. 1301
(a) ( 2 ) ) ) , and which is transporting oil directly from an offshore
facility;
(6) "public vessel" means a vessel which—
(A) is owned or chartered by demise, and operated by (i)
the United States, (ii) a State or political subdivision thereof,
or (iii) a foreign government; and
(B) is not engaged in commercial service;
(7) "facility" means a structure, or group of structures (other
than a ve^el or vessels), used for the purpose of transporting,
drilling for, producing, processing, storing, transferring, or otherwise handling oil;
(8) "offshore facility" includes any oil refinery, drilling structure, oil storage or transfer terminal, or pipeline, or any appurtenance related to any of the foregoing, which is used to drill for,
produce, store, handle, transfer, process, or transport oil produced
from the Outer Continental Shelf (as the term "outer Continental
Shelf" is defined in section 2(a) of the Outer Continental Shelf

PUBLIC LAW 95-372—SEPT. 18, 1978
Lands Act (43 U.S.C. 1331(a))), and is located on the Outer
Continental Shelf, except that such term does not include (A) a
vessel, or (B) a deepwater port (as the term "deepwater port" is
defined in section 3(10) of the Deepwater Port Act of 1974 (33
U.S.C. 1502));
(9) "oil pollution" means—
(A) the presence of oil either in an unlawful quantity or
which has been discharged at an unlawful rate (i) in or on the
waters above submerged lands seaward from the coastline of a
State (as the term "submerged lands" is described in section
2(a)(2) of the Submerged Lands Act (43 U.S.C. 1301(a)
( 2 ) ) ) , or on the adjacent shoreline of such a State, or (ii)
on the waters of the contiguous zone established by the
United States under Article 24 of the Convention on the Territorial Sea and the Contiguous Zone (15 UST 1606); or
(B) the presence of oil in or on the waters of the high seas
outside the territorial limits of .the United States—
(i) when discharged in connection with activities conducted under the Outer Continental Shelf Lands Act (43
U.S.C. 1331 etseq.); or
(ii) causing injury to or loss of natural resources
belonging to, appertaining to, or under the exclusive management authority of, the United States; or
(C) the presence of oil in or on the territorial sea, navigable
or internal waters, or adjacent shoreline of a foreign country,
in a case where damages are recoverable by a foreign claimant
under this title;
(10) "United States claimant" means any person residing in the
United States, the Government of the United States or an agency
thereof, or the government of a State or a political subdivision
thereof, who asserts a claim under this title;
(11) "foreign claimant" means any person residing in a foreign
country, the government of a foreign country, or any agency or
political subdivision thereof, who asserts a claim under this title;
(12) "LTnited States" includes and "State" means the several
States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Canal Zone, Guam, American
Samoa, the United States Virgin Islands, the Commonwealth of
the Northern Mariana Islands, the Trust Territory of the Pacific
Islands, and any other territory or possession over which the
United States has jurisdiction;
(13) "oil" means petroleum, including crude oil or any fraction
or residue therefrom;
(14) "cleanup costs" means costs of reasonable measures taken,
after an incident has occurred, to prevent, minimize, or mitigate
oil pollution from such incident;
(15) "damages" means compensation sought pursuant to this
title by any person suffering any direct and actual injury proximately caused by the discharge of oil from an offshore facility or
vessel, except that such term does not include cleanup costs:
(16) "person in charge" means the individual immediately
responsible for the operation of a vessel or offshore facility;
(17) "claim" means a demand in writing for a sum certain;
(18) "discharge" means any emission, intentional or unintentional, and includes spilling, leaking, pumping, pouring, emptying, or dumping;

92 STAT. 671

g
;t;

92 STAT. 672

33 use 1321.
33 use 1474.

PUBLIC LAW 95-372—SEPT. 18, 1978
(19) "owner" means any person holding title to, or in the
absence of title, any other indicia of ownership of, a vessel or offshore facility, whether by lease, permit, contract, license, or other
form of agreement, or with respect to any offshof^ facility abandoned without prior approval of the Secretary of the Interior, the
person who owned such offshore facility immediately prior to such
abandonment, except that such term does not include a person
who, without participating in the management or operation of a
vessel or offshore facility, holds indicia of ownership primarily to
protect his security interest in the vessel or offshore facility;
(20) "operator" means—
(A) in the case of a vessel, a charterer by demise or any
other person, except the owner, who is responsible for the
operation, manning, victualing, and supplying of the vessel;
or
(B) in the case of an offshore facility, any person, except
the owner, who is responsible for the operation of such facility by agreement with the owner;
(21) "property" means littoral, riparian, or marine property;
(22) "removal costs" means^—
(A) costs incurred under subsection (c), (d), or (1) of
section 311 of the Federal Water Pollution Control Act, and
section 5 of the Intervention on the High Seas Act; and
(B) cleanup costs, other than the costs described in subparagraph ( A ) ;
(23) "guarantor" means the person, other than the owner or
operator, who provides evidence of financial responsibility for an
owner or operator;
(24) "gross ton" means a unit of 100 cubic feet for the purpose
of measuring the total unit capacity of a vessel; and
(25) "barrel" means 42 United States gallons at 60 degrees
Fahrenheit.
F U N D ESTABLISHMENT, ADMINISTRATION, AND

Offshore Oil
Pollution
eompensation
Fund.
43 u s e 1812.

FINANCING

SEC. 302. (a) There is hereby established in the Treasury of the
United States on Offshore Oil Pollution Compensation Fund in an
amount not to exceed $200,000,000, except that such limitation shall be
increased to the extent necessary to permit any moneys recovered or
collected which are referred to in subsection (b) (2) of this section to
be paid into the Fund. The Fund shall be administered by the Secretary and the Secretary of the Treasury as specified in this title. The
Fund may sue and be sued in its own name.
(b) The Fund shall be composed of—
(1) all fees collected pursuant to subsection (d) of this section;
and
(2) all other moneys recovered or collected on behalf of the
Fund under section 308 or any other provision of this title.
(c) The Fund shall be immediately available for—
(1) removal costs described in section 301 (22);
(2) the processing and settlement of claims under section 307
of this title (including the costs of assessing injury to, or destruction of, natural resources); and
(3) subject to such amounts as are provided in appropriation
Acts, all administrative and personnel costs of the Federal Gov-

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 673

eminent incident to the administration of this title, including, but
not limited to, the claims settlement activities and adjudicatory
and judicial proceedings, whether or not such costs are recoverable
under section 308 of this title.
The Secretary is authorized to promulgate regulations designating the Regulations.
person or persons who may obligate available money in the Fund for
such purposes.
(d)(1) The Secretary shall levy and the Secretary of the Treasury
^ a l l collect a fee of not to exceed 3 cents per barrel on oil obtained
from the Outer Continental Shelf, which shall be imposed on the
owner of the oil when such oil is produced.
(2) The Secretary of the Treasury, after consulting with the Secre- Regulations.
tary, may promulgate reasonable regulations relating to the collection
of the fees authorized by paragraph (1) of this subsection and, from
time to time, the modification thereof. Any modification shall become Publication in
effective on the date specified in the regulation making such modifica- Federal Register.
tion, but no earlier than the ninetieth day following the date such
regulation is published in the Federal Register. Any modification of
the fee shall be designed to insure that the Fund is maintained at a
level of not less than $100,000,000 and not more than $200,000,000. No
regulation that sets or modifies fees, whether or not in effect, may be
stayed by any court pending completion of judicial review of such
regulation.
(3) (A) Any person who fails to collect or pay any fee as required Civil penalty,
by any regulation promulgated under paragraph (2) of this subsection
shall be liable for a civil penalty not to exceed $10,000, to be assessed
by the Secretary of the Treasury, in addition to the fee required to be
collected or paid and the interest on such fee at the rate such fee would
have earned if collected or paid when due and invested in special obligations of the United States in accordance with subsection (e) (2) of
this section. Upon the failure of any person so liable to pay any penalty, fee, or interest upon demand, the Attorney General may, at the
request of the Secretary of the Treasury, bring an action in the name
of the Fund against that person for such amount.
(B) Any person who falsifies records or documents required to be Violation,
maintained under any regulation promulgated imder this subsection prosecution.
shall be subject to prosecution for a violation of section 1001 of title
18, United States Code.
(4) The Secretary of the Treasury may, by regulation, designate Regulations.
the reaconably necessary records and documents to be kept by persons Audit and
from whom fees are to be collected pursuant to paragraph (1) of this examination.
subsection, and the Secretary of the Treasury and the Comptroller
General of the United States shall have access to such records and
documents for the purpose of audit and examination.
(e) (1) The Secretary shall determine the level of funding required
for immediate access in order to meet potential obligations of the
Fund.
(2) The Secretary of the Treasury may invest any excess in the
Fund, above the level determined under paragraph (1) of this subsection, in interest-bearing special obligations of the United States.
Such special obligations may be redeemed at any time in accordance Regulations,
with the terms of the special issue and pursuant to regulations promulgated by the Secretary of the Treasury. The interest on, and the proceeds from the sale of, any obligations held in the Fund shall be
deposited in and credited to the Fimd.

92 STAT. 674

.srci,

31 use 774.

PUBLIC LAW 95-372—SEPT. 18, 1978
(f) If at any time the moneys available in the Fimd are insufficient
to meet the obligations of the Fund, the Secretary shall issue to the
Secretary of the Treasury notes or other obligations in the forms and
denominations, bearing the interest rates and maturities, and subject
to such terms and conditions as may be prescribed by the Secretary
of the Treasury. Redemption of such notes or other obligations shall be
made by the Secretary from moneys in the Fund. Such notes or other
obligations shall bear interest at a rate determined by the Secretary
of the Treasury, taking into consideration the average market yield
on outstanding marketable obligations of comparable maturity. The
Secretary of the Treasury shall purchase any notes or other obligations issued under this subsection and, for that purpose, he is authorized to use as a public debt transaction the proceeds from the sale of
any securities issued under the Second Liberty Bond Act. The purpose
for which securities may be issued under that Act are extended to
include any purchase of such notes or other obligations. The Secretary
of the Treasury may at any time sell any of the notes or other obligations acquired by him under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or
other obligations shall be treated as public debt transactions of the
United States.
DAMAGES AND CLAIMANTS

43 use 1813.

v;o.T,

.arjj.

'

SEC. 303. (a) Claims for economic loss, arising out of or directly
resulting from oil pollution, may be asserted for—
(1) removal costs; and
(2) damages, including—
(A) injury to, or destruction of, real or personal property;
(B) loss of use of real or personal property;
j
(C) injury to, or destruction of, natural resources;
(D) loss of use of natural resources;
(E) loss of profits or impairment of earning capacity due
to injury to, or destruction of, real or personal property or
natural resources; and
(F) loss of tax revenue for a period of one year due to
injury to real or personal property.
(b) A claim authorized by subsection (a) of this section may be
asserted—
(1) under paragraph (1), by any claimant, except that the
owner or operator of a vessel or offshore facility involved in an
incident may assert such a claim only if he can show—
(A) that he is entitled to a defense to liability under section 304 (c) (1) or 304(c) (2) of this title; or
(B) if not entitled to such a defense to liability, that he
;
is entitled to a limitation of liability under section 304(b),
except that if he is not entitled to such a defense to liability
but is entitled to such a limitation of liability, such claim may
be asserted only as to the removal costs incurred in excess of
that limitation;
(2) under paragraphs (2) (A), (B), and (D), by any United
States claimant if the property involved is owned or leased, or
the natural resource involved is utilized, by the claimant;
(3) under paragraph (2) (C), by the President, as trustees for
natural resources over which the Federal Government has sovereign rights or exercises exclusive management authority, or by

PUBLIC LAW 95-372—SEPT. 18, 1978
any State for natural resources within the boundary of the State
belonging to, managed by, controlled by, or appertaining to the
State, and sums recovered under paragraph (2) (C) shall be
available for use to restore, rehabilitate, or acquire the equivalent
of such natural resources by the appropriate agencies of the Federal Government or the State, but the measure of such damages
shall not be limited by the sums which can be used to restore or
replace such resources;
(4) under paragraph (2) ( E ) , by any United States claimant
if the claimant derives at least 25 per centum of his earnings from
activities which utilize the property or natural resource;
(5) under paragraph (2) ( F ) , by the Federal Government and
any State or political subdivision thereof;
(6) under paragraphs (2) (A) through ( E ) , by a foreign
claimant to the same extent that a United States claimant may
assert a claim if—
(A) the oil pollution occurred in or on the territorial sea,
navigable waters or internal waters, or adjacent shoreline of
a foreign country of which the claimant is a resident;
CB) the claimant is not otherwise compensated for his loss;
(C) the oil was discharged from an offshore facility or
from a vessel in connection with activities conducted under
the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) ; and
(D) recovery is authorized by a treaty or an executive
agreement between the United States and the foreign country
involved, or the Secretary of State, in consultation with the
Attorney General and other appropriate officials, certifies that
such country provides a comparable remedy for United States
claimants;
(7) under paragraph (1) or (2), by the Attorney General,
on his own motion or at the request of the Secretary, on behalf
of any group of United States claimants who may assert a claim
uiider this subsection, when he determines that the claimants
would be more adequately represented as a class in asserting their
claimis.
(c) If the Attorney General fails to take action under paragraph
(7) of subsection (b) within sixty days of the date on which the Secretary designates a source under section 306 of this title, any member
of a group described in such paragraph may maintain a class action
to recover damages on behalf of that group. Failure of the Attorney
General to take action shall have no bearing on any class action maintained by any claimant for damages authorized by this section.

92 STAT. 675

-'5
"'

LIABILITY

SEC. 304. (a) Subject to the provisions of subsections (b) and (c) 43 USC 1814.
of this section, the owner and operator of a vessel other than a public
vessel, or of an offshore facility, which is the source of oil pollution,
or poses a threat of oil pollution in circumstances which justify the
incurrence of the type of costs described in section 301(22) of this
title, shall be jointly, severally, and strictly liable for all loss for
which a claim may be asserted under section 303 of this title.
(b) Except when the incident is caused primarily by willful misconduct or gross negligence, within the privity or knowledge of the

..

92 STAT. 676

Report to
Congress.

*

PUBLIC LAW 95-372—SEPT. 18, 1978
owner or operator, or is caused primarily by a violation, within the
privity or knowledge of the owner or operator, of applicable safety,
construction, or operating standards or regulations of the Federal
Government, the total of the liability under subsection (a) of this
section incurred by, or on behalf of, the owner or operator shall be—
(1) in the case of a vessel, limited to $250,000 or $300 per gross
ton, whichever is greater, except when the owner or operator of
a vessel fails or refuses to provide all reasonable cooperation and
assistance requested by the responsible Federal official in furtherance of cleanup activities; or
(2) in the case of an offshore facility, the total of removal and
cleanup costs, and an amount limited to $35,000,000 for all
damages.
(c) There shall be no liability under subsection (a) of this section—
(1) if the incident is caused solely by any act of war, hostilities,
civil war, or insurrection, or by an unanticipated grave natural
disaster or other natural phenomenon of an exceptional, inevitable, and irresistable character, the effect of which could not have
been prevented or avoided by the exercise of due care or foresight;
or
(2) if the incident is caused solely by the negligent or intentional act of the damaged party or any third party (including any
government entity).
(d) Notwithstanding the limitations, exceptions, or defenses of
subsection (b) or (c) of this section, all costs of removal incurred by
the Federal Government or any State or local official or agency in
connection with a discharge of oil from any offshore facility or vessel
shall be borne by the owner and operator of the offshore facility or
vessel from which the discharge occurred.
(e) The Secretary shall, from time to time, report to Congress on
the desirability of adjusting the monetary limitation of liability specified in subsection (b) of this section.
(f) (1) Subject to the provisions of paragraph (2) of this subsection, the Fund shall be liable, without any limitation, for all losses for
which a claim may be asserted under section 303 of this title, to the
extent that such losses are not otherwise compensated.
(2) Except for the removal costs specified in section 301(22), there
shall be no liability under paragraph (1) of this subsection—
(A) as to a particular claimant, where the incident or economic
loss is caused, in whole or in part, by the gross negligence or willful misconduct of that claimant; or
(B) as to a particular claimant, to the extent that the incident
or economic loss is caused by the negligence of that claimant.
(g) (1) In addition to the losses for which claims may be asserted
under section 303 of this title, and without regard to the limitation of
liability provided in subsection (b) of this section, the owner, operator,
or guarantor of an offshore facility or vessel shall be liable to the
claimant for interest on the amount paid in satisfaction of the claim
for the period from the date upon which the claim is presented to such
person to the date upon which the claimant is paid, inclusive, less the
period, if any, from the date upon which such owner, operator, or guarantor offers the claimant an amount equal to or greater than the amount
finally paid in satisfaction of the claim to the date upon which the
claimant accepts such amount, inclusive. However, if such owner,
operator, or guarantor offers the claimant, within sixty days of the date

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 677

upon which the claim is presented, or of the date upon which advertising is commenced pursuant to section 306 of this title, whichever is
later, an amount equal to or greater than the amount finally paid in
satisfaction of the claim, the owner, operator, or guarantor shall be
liable for the interest provided in this paragraph only from the date
the offer is accepted by the claimant to the date upon which payment
is made to the claimant, inclusive.
(2) The interest provided in paragraph (1) of this subsection shall
be calculated at the average of the highest rate for commercial and
finance company paper of maturities of one hundred and eighty days
or less obtaining on each of the days included within the period for
which interest must be paid to the claimant, as published in the Federal
Reserve Bulletin.
(h) Nothing in this title shall bar a cause of action that an owner
or operator, subject to liability under subsection (a) of this section, or
a guarantor, has or would have, by reason of subrogation or otherwise,
against any person.
(i) To the extent that they are in conflict or otherwise inconsistent
with any other provision of law relating to liability or the limitation
thereof, the provisions of this section shall supersede such other provision of law, including section 4283(a) of the Revised Statutes (46
U.S.C.183(a)).
FINANCIAL, RESPGNSIBIIrlTY

SEC. 305. (a)(1) The owner or operator of any vessel (except a
non-self-propelled barge that does not carry oil as fuel or cargo)
which uses an offshore facility shall establish and maintain, in accordance with regulations promulgated by the President, evidence of
financial responsibility sufficient to satisfy the maximum amount of
liability to which the owner or operator of such vessel would be exposed
in a case where he would be entitled to limit his liability in accordance
with the provisions of section 304(b) of this title. Financial responsibility may be established by any one, or any combination, of the following methods, acceptable to the President: evidence of insurance,
guarantee, surety bond, or qualification as a self-insurer. Any bond
filed shall be issued by a bonding company authorized to do business
in the United States. In any case where an owner or operator owns,
operates, or charters more than one vessel subject to this subsection,
evidence of financial responsibility need be established only to meet
the maximum liability applicable to the largest of such vessels.
(2) The Secretary, in accordance with regulations promulgated by
him, shall—
(A) deny entry to any port or place in the United States or to
the navigable waters to; and
(B) detain at the port or place in the United States from which
it is about to depart for any other port or place in the United
States,
any A^essel subject to this subsection which, upon request, does not
produce certification furnished by the President that such vessel is
in compliance wath the financial responsibility provisions of paragraph
(1) of this subsection.
(3) The Secretary, in accordance with regulations promulgated by
him, shall have access to all offshore facilities and vessels conducting
activities under the Outer Continental Shelf Lands Act, and such
facilities and vessels shall, upon request, show certification of financial responsibility.

Regulations.

43 use 1815.

;.. ^ci'l

Regulations,

Regulations,
43 USC 1331
note.

92 STAT. 678
Regulations.

Study.

Report.

PUBLIC LAW 95-372—SEPT. 18, 1978
(b) The owner or operator of an offshore facility which (1) is used
for drilling for, producing, or processing oil, or (2) has the capacity
to transport, store, transfer, or otherwise handle more than one thousand barrels of oil at any one time, shall establish and maintain, in
accordance with regulations promulgated by the President, evidence of
financial responsibility sufficient to satisfy the maximum amount of
liability to which the owner or operator of such facility would be
exposed in a case where he would be entitled to limit his liability in
accordance with the provisions of section 304(b) of this title, or
$35,000,000, whichever is less.
(c) Any claim authorized by section 303(a) may be asserted
directly against any guarantor providing evidence of financial responsibility for any owner or operator of an offshore facility or vessel as
required under this section. In defending such claim, the guarantor
shall be entitled to invoke all rights and defenses which would be
available to such owner or operator under this title. Such guarantor
shall also be entitled to invoke the defense that the incident was caused
by the willful misconduct of such owner or operator, but shall not be
entitled to invoke any other defense which such guarantor might be
entitled to invoke in proceedings brought by such owner or operator
against such guarantor.
(d) The President shall conduct a study to determine—
(1) whether adequate private oil pollution insurance protection is available on reasonable terms and conditions to the owners
and operators of vessels, onshore facilities, and offshore facilities;
and
(2) whether the market for such insurance is sufficiently competitive to assure purchasers of features such as a reasonable range
of deductibles, coinsurance provisions, and exclusions.
The President shall submit the results of his study, together with his
recommendation, within one year after the date of enactment of this
title, and shall submit an interim report on his study within three
months after such date of enactment.
NOTIFICATION, DESIGNATION, AND ADVERTISEMENT

43 use 1816.

«

Regulations.

:

SEC. 306. (a) The person in charge of a vessel or offshore facility
which is involved in an incident shall immediately notify the Secretary of the incident as soon as he has knowledge thereof. Notification
received pursuant to this subsection or information obtained by the
exploitation of such notification shall not be used against such person
or his employer in any criminal cavse, other than a case involving prosecution for perjury or for giving a false statement.
(b) (1) When the Secretary receives information pursuant to subsection (a) of this section or otherwise of an incident which involves
oil pollution, the Secretary shall, where possible, designate the source
or sources of the oil pollution and shall immediately notify the owner
and operator of such source and the guarantor of such designation.
(2) When a source designated under paragraph (1) of this subsection is a vessel or offshore facility and the owner, operator, or guarantor fails to inform the Secretary, within five days after receiving
notification of the designation, of his denial of such desiarnation, such
owner, operator, or guarantor, as required by regulations promulgated bv the Secretary, shall advertise the designation and the procedures by which claims may be presented to him. If advertisement is
not made in accordance with this paragraph, the Secretary shall, as

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 679

he finds necessary, and at the expense of the owner, operator, or guarantor involved, advertise the designation and the procedures by wliich
claims may be presented to such owner, operator, or guarantor.
(c) In a case where—
(1) the owner, operator, and guarantor all deny a designation
in accordance with paragraph (2) of subsection (b) of this section;
(2) the source of the discharge was a public vessel; or
(3) the Secretary is unable to designate the source or sources
of the discharge under paragraph (1) of such subsection (b),
the Secretary shall advertise or otherwise notify potential claimants
of the procedures by which claims may be presented to the Fund.
(d) Advertisement under subsection (b) of this section shall com- Effective date,
mence no later than fifteen days after the date of the designation made
under such subsection and shall continue for a period of no less than
thirty days.
CLAIMS

SETTLEMENT

SEC. 307. (a) Except as provided in subsection (b) of this section, 43 USC 1817.
all claims shall be presented to the owner, operator, or guarantor.
(b) All claims shall be presented to the Fund—
(1) where the Secretary has advertised or otherwise notified
claimants in accordance with section 306(c) of this title; or
(2) where the owner or operator may recover under the provisions of section 303 (b)(1) of this title.
(c) In the case of a claim presented in accordance with subsection
(a) of this section, and in which—
(1) the person to whom the claim is presented denies all liability for the claim, for any reason; or
(2) the claim is not settled by any person by payment to the
claimant within sixty days from the date upon which (A) the
claim is presented, or (B) advertising is commenced pursuant to
section 306 (b)(2), whichever is later,
the claimant may elect to commence an action in court against the
owner, operator, or guarantor, or to present the claim to the Fund, that
election to be irrevocable and exclusive.
(d) In the case of a claim presented in accordance with subsection
(a) of this section, where full and ade(]^uate compensation is unavailable, either because the claim exceeds a limit of liability invoked under
section 304(b) of this title or because the owner, operator, and guarantor to whom the claim is presented are financially incapable of meeting
their obligations in full, a claim for the uncompensated damages may
be presented to the Fund.
(e) In the case of a claim which is presented to any person, pursuant to subsection (a) of this section, and which is being presented to
the Fund, pursuant to subsection (c) or (d) of this section, such person, at the request of the claimant, shall transmit the claim and supporting documents to the Fund. The Secretary may, by regulation, Regulations,
prescribe the documents to be transmitted and the terms under which
they are to be transmitted.
(f) In the case of a claim presented to the Fund, pursuant to subsection (b), (c), or (d) of this section, and in which the Fund—
(1) denies all liability for the claim, for any reason; or
(2) does not settle the claim by payment to the claimant within
sixtv days after the date upon which (A) the claim is presented
to the Fund, or (B) advertising is commenced pursuant to section
306 (c) of this title, whichever is later,

92 STAT. 680

Regulations.

Contract.

Review and audit.

Panel.

18 u s e 201 et
18 u s e 201 note.

PUBLIC LAW 95-372—SEPT. 18, 1978
the claimant may submit the dispute to the Secretary for decision in
accordance with section 554 of title 5, United States Code. However, a
claimant who has presented a claim to the Fund pursuant to such subsection (b) may elect to commence an action in court against the Fund
in lieu of submission of the dispute to the Secretary for decision, that
election to be irrevocable and exclusive.
(g) (1) The Secretary shall promulgate regulations which establish
uniform procedures and standards for the appraisal and settlement of
claims against the Fund.
(2) Except as provided in paragraph (3) of this subsection, the
Secretary shall use the facilities and services of private insurance and
claims adjusting organizations or State agencies in processing claims
against the Fund and may contract to pay compensation for those
facilities and services. Any contract made under the provisions of this
paragraph may be made without regard to the provisions of section
3709 of the Kevised Statutes (41 U.S.C. 5) upon a showing by
the Secretary that advertising is not reasonably practicable. The
Secretary may make advance payments to a contractor for services and facilities, and the Secretary may advance to the contractor
funds to be used for the payment of claims. The Secretary may review
and audit claim payments made pursuant to this subsection. A payment to a claimant for a single claim in excess of $100,000, or two or
more claims aggregating in excess of $200,000, shall be first approved
by the Secretary. When the services of a State agency are used in
processing and settling claims, no payment may be made on a claim
asserted by or on behalf of such State or any of its agencies or subdivisions unless the payment has been approved by the Secretary.
(3) To the extent necessitated by extraordinary circumstances,
where the services of such private organizations or State agencies are
inadequate, the Secretary may use Federal personnel to process claims
against the Fund.
(h) Notwithstanding subsection (b) of section 556 of title 5, United
States Code, the Secretary is authorized to appoint, from time to time
for a period of not to exceed one hundred and eighty days, one or
more panels, each comprised of three individuals, to hear and decide
disputes submitted to the Secretary pursuant to subsection (f) of this
section. At least one member of each panel shall be qualified to conduct
adjudicatory proceedings and shall preside over the activities of the
panel. Each member of a panel shall possess competence in the evaluation and assessment of property damage and the economic losses
resulting therefrom. Panel members may be appointed from private
life or from any Federal agency except the staff administering the
Fund. Each panel member appointed from private life shall receive a
per diem compensation, and each panel member shall receive necessary
traveling and other expenses while engaged in the work of a panel.
The provisions of chapter 11 of title 18, United States Code, and of
Executive Order 11222, as amended, regarding special Government
employees, shall apply to panel members appointed from private life.
(i) (1) Upon receipt of a request for a decision from a claimant,
properly made, the Secretary shall refer the dispute to (A) an
administrative law judge appointed under section 3105 of title 5,
United States Code, or (B) a panel appointed under subsection (h) of
this section.

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 681

(2) The administrative law judge and each member of a panel to
which a dispute is referred for decision shall be a resident of the
United States judicial circuit within which the damage complained of
occurred, or, if the damage complained of occurred within two or
more circuits, of any of the affected circuits, or, if the damage occurred
outside any circuit, of the nearest circuit.
(3) Upon receipt of a dispute, the administrative law judge or
panel shall adjudicate the case and render a decision in accordance
with section 554 of title 5, United States Code. In any proceeding sub- Subpena.
ject to this subsection, the presiding officer may require by subpena any
erson to appear and testify or to appear and produce books, papers,
ocuments, or tangible things at a hearing or deposition at any designated place. Subpenas shall be issued and enforced in accordance with
procedures in subsection (d) of section 555 of title 5, United States
Code, and rules promulgated by the Secretary. If a person fails or
't - J r^
refuses to obey a subpena, the Secretary may invoke the aid of the district court of the United States where the person is found, resides, or
transacts business in requiring the attendance and testimony of the
person and the production by him of books, papers, documents, or any
tangible things.
(4) A hearing conducted under this subsection shall be conducted
within the United States judicial district within which, or nearest to
which, the damage complained of occurred, or, if the damage comlained of occurred within two or more districts, in any of the affected
istricts, or if the damage occurred outside any district, in the nearest
district.
(5) The decision of the administrative law judge or panel under Final order,
this subsection shall be the final order of the Secretary, except that Regulations,
the Secretary, in his discretion and in accordance with regulations
which he may promulgate, may review the decision upon his own initiative or upon exception of the claimant or the Fund.
(6) Final orders of the Secretary made under this subsection shall
be reviewable pursuant to section 702 of title 5, United States Code,
in the district courts of the United States.
( j ) ( l ) In any action brought pursuant to this title against an
owner, operator, or guarantor, both the plaintiff and defendant shall
serve a copy of the complaint and all subsequent pleadings therein
upon the Fund at the same time such pleadings are served upon the
opposing parties.
(2) The Fund may intervene in any action described in paragraph
(1) of this subsection as a matter of right.
(3) In any action described in paragraph (1) of this subsection to
which the Fund is a party, if the owner, operator, or guarantor admits
liability under this title, the Fund upon its motion shall be dismissed
therefrom to the extent of the admitted liability.
(4) If the Fund receives from either the plaintiff or the defendant
notice of an action described in paragraph (1) of this subsection, the
f u n d shall be bound by any judgment entered therein, whether or not
the Fund was a party to the action.
(5) If neither the plaintiff nor the defendant gives notice of an
action described in paragraph (1) of this subsection to the Fund, the
limitation of liability otherwise permitted by section 304(b) of this
title shall not be available to the defendant, and the plaintiff shall not
recover from the Fund any sums not paid by the defendant.

S

S

92 STAT. 682

i;.,: '

PUBLIC LAW 95-372—SEPT. 18, 1978
(k) In any action brought against the Fund under this title, the
plaintiff may join any owner, operator, or guarantor, and the Fund
may join any person who is or may be liable to the Fund under any
provision of this title.
(1) No claim may be presented, nor may an action be commenced
for economic losses recoverable under this title, unless such claim is
presented to, or such action is commenced against, the owner, operator, or guarantor, or the Fund, as to their respective liabilities, within
three years after the date of discovery of the economic loss for which
a claim may be asserted under section 303(a) of this title, or within
six years of the date of the incident which resulted in such loss, whichever is earlier.
SUBROGATION

43 use 1818.

SEC. 308. (a) Any person or governmental entity, including the
Fund, who pays compensation to any claimant for an economic loss,
compensable under section 303 of this title, shall be subrogated to all
rights, claims, and causes of action which such claimant has under
this title.
(b) Upon request of the Secretary, the Attorney General may commence an action, on behalf of the Fund, for the compensation paid by
the Fund to any claimant pursuant to this title. Such an action may
be commenced against any owner, operator, or guarantor, or against
any other person or governmental entity, who is liable, pursuant to
any law, to the compensated claimant or to the Fund, for economic
losses for which the compensation was paid.
(c) In any claim or action by the Fund against any owner, operator,
or guarantor, pursuant to the provisions of subsection (a) or (b), the
Fund shall recover—
(1) for a claim presented to the Fund (where there has been a
denial of source designation) pursuant to section 307(b)(1) of
this title, or (where there has been a denial of liability) pursuant
to section 307 (c) (1) of this title—
(A) subject only to the limitation of liability to which the
defendant is entitled under section 304(b) of this title, the
amount the Fund has paid to the claimant, without reduction ;
(B) interest on such amount, at the rate calculated in
accordance with section 304(g) (2) of this title, from the date
upon which the claim is presented by the claimant to the
defendant to the date upon which the Fund is paid by the
defendant, inclusive, less the period, if any, from the date
upon which the Fund offers to the claimant the amount
finally paid by the Fund to the claimant in satisfaction of
the claim against the Fund to the date upon which the claimant accepts that offer, inclusive; and
(C) all costs incurred by the Fund by reason of the claim,
both of the claimant against the Fund and the Fund against
the defendant, including, but not limited to, processing costs,
investigating costs, court costs, and attorneys' fees; and
(2) for a claim presented to the Fund pursuant to section 307
(c) (2) of this title—
(A) in which the amount the Fund has paid to the claimant exceeds the largest amount, if any, the defendant offered

PUBLIC LAW 95-372—SEPT. 18, 1978
to the claimant in satisfaction of the claim of the claimant
against the defendant—
'^
(i) subject to dispute by the defendant as to any
excess over the amount offered to the claimant by the
defendant, the amount the Fund has paid to the
claimant;
(ii) interest, at the rate calculated in accordance with
section 304(g) (2) of this title, for the period specified
in paragraph (1) (B) of this subsection; and
(iii) all costs incurred by the Fund by reason of the
claim of the Fund against the defendant, including, but
not limited to, processing costs, investigating costs, court
costs, and attorneys'fees; or
(B) in which the amount the Fund has paid to the claimant is less than or equal to the largest amount the defendant
offered to the claimant in satisfaction of the claim of the
claimant against the defendant—(i) the amount which the Fund has paid to the claimant, without reduction;
(ii) interest, at the rate calculated in accordance with
section 304 (g) (2) of this title, from the date upon which
the claim is presented by the claimant to the defendant
to the date upon which the defendant offered to the
claimant the largest amount referred to in this subparagraph, except that if the defendant tenders the offer of
the largest amount referred to in this subparagraph
within sixty days after the date upon which the claim
©f the claimant is either presented to the defendant or
advertising is commenced pursuant to section 306 of this
title, the defendant shall not be liable for interest for
that period; and
(iii) interest from the date upon which the claim of
the Fund against the defendant is presented to the
defendant to the date upon which the Fund is paid, inclusive, less the period, if any, from the date upon which
'
the defendant offers to the Fund the amount finally paid
to the Fund in satisfaction of the claim of the Fund
to the date upon which the Fund accepts that offer,
inclusive.
(d) The Fund shall pay over to the claimant that portion of any
interest the Fund recovers, pursuant to subsection (c) (1) and (2) (A),
for the period from the date upon which the claim of the claimant is
presented to the defendant to the date upon which the claimant is paid
by the Fund, inclusive, less the period from the date upon which the
Fund offers to the claimant the amount finally paid to the claimant in
satisfaction of the claim to the date upon which the claimant accepts
Such offer, inclusive.
(e) The Fund is entitled to recover for all interest and costs specified in subsection (c) of this section without regard to any limitation
of liability to which the defendant may otherwise be entitled under
this title.

92 STAT. 683

,,

r,,

p,j n

-u. >3 ' *^'

•

JURISDICTION AND VENUE

SEC. 309. (a) The United States district courts shall have original 43 USC 1819.
and exclusive jurisdiction of all controversies arising under this title,
without regard to the citizenship of the parties or the amount in
controversy.

39-194 O—80—pt. 1

47 : QL3

92 STAT. 684

PUBLIC LAW 95-372—SEPT. 18, 1978
(b) Venue shall lie in any district wherein the injury complained
of occurred, or wherein the defendant resides, may be found, or has
his principal office. For the purposes of this section, the Fund shall
reside in the District of Columbia.
RELATIONSHIP TO OTHER LAW

43 use 1820.

SEC. 310. (a) Any person who receives compensation for damages
or removal costs pursuant to this title shall be precluded from recovering compensation for the same damages or removal costs pursuant to
any other State or Federal law. Any person who receives compensation for damages or removal costs pursuant to any other State or
Federal law shall be precluded from receiving compensation for the
same damages or removal costs under this title.
(b) No owner or operator of an offshore facility or vessel who
establishes and maintains evidence of financial responsibility in accordance with this section shall be required under any State law, rule,
or regulation to establish any other evidence of financial responsibility
in connection with liability for the discharge of oil from such offshore
facility or vessel. Evidence of compliance with the financial responsibility requirement of this section shall be accepted h^ a State in lieu
of any other requirement of financial responsibility imposed by such
State in connection with liability for the discharge of oil from such
offshore facility or vessel.
(c) Except as otherwise provided in this title, this title shall not be
interpreted to preempt the field of liability or to preclude any State
from imposing additional requirements or liability for any discharge
of oil resulting in damages or removal costs within the jurisdiction
of such State.
PROHTBITrON

43 use 1821.

SEC. 311. The discharge of oil from any offshore facility or vessel,
in quantities which the President under section 311(b) of the Federal
Water Pollution Control Act (33 U.S.C. 1321(b)) determines to be
harmful, is prohibited.
PENALTIES

43 use 1822.

Notice and
hearing.

,Qmi :)hu 1-

SEC. 312. (a) (1) Any person who fails to comply with the requirements of section 305 of this title, the regulations promulgated thereunder, or any denial or detention order, shall be subject to a civil
penalty of not to exceed $10,000.
(2) The civil penalty described in paragraph (1) of this subsection
may be assessed and compromised by the President or his designee, in
connection with section 30.5(a) (1) of this title, and by the Secretary,
in connection with section 305(a) (3) and section 305(b) of this title.
No penalty shall be assessed until notice and an opportunity for hearing on the alleged violation have been given. In determining the
amount of the penalty or the amount agreed upon in compromise, the
demonstrated good faith of the party shall be taken into consideration.
(3) At the request of the official assessing a pnenalty under this subsection, the Attorney General may bring an action in the name of the
Fund to collect the penalty assessed.
(b) Any person in charge who is subject to the jurisdiction of the
United States and who fails to give the notification required by section
306(a) of this title shall, upon conviction, be fined not more than
$10,000 or imprisoned for not more than one year, or both.

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 685

AUTHORIZATION OF APPROPRIATIONS

SEC. 313. (a) There is authorized to be appropriated for the admin- 43 USC 1823.
istration of this title $10,000,000 for the fiscal year ending September
30, 1979, $5,000,000 for the fiscal year ending September 30,1980, and
$5,000,000 for the fiscal year ending September 30,1981.
(b) There are also authorized to be appropriated to the Fund, from
time to time, such amounts as may be necessary to carry out the purposes of the applicable provisions of this title, including the entering
into contracts, any disbursements of funds, and the issurance of notes or
other obligations pursuant to section 302 (f) of this title.
(c) Notwithstanding any other provision of this title, the authority
to make contracts, to make disbursements, to issue notes or other obligations pursuant to section 302(f) of this title, to charge and collect fees
pursuant to section 302 (d) of this title, or to exercise any other spending authority shall be effective only to the extent provided, without
fiscal year limitation, in appropriation Acts enacted after the date of
enactment of this title.
A N N U A L REPORT

SEC. 314. Within six months after the end of each fiscal year, the 43 USC 1824.
Secretary shall submit to the Congress (1) a report on the administration of the Fund during such fiscal year, and (2) his recommendations
for such legislative changes as he finds necessary or appropriate to
improve the management of the Fund and the administration of the
liability provisions of this title.
EFFECTIVE DATES

SEC. 315. (a) This section, subsection (e) of section 304, subsection 43 USC 1811
(d) of section 305, and all provisions of this title authorizing the dele- note,
gation of authority or the promulgation of regulations shall be effective
on the date of enactment of this title.
(b) All other provisions of this title, and rules and regulations promulgated pursuant to such provisions, shall be effective on the one
hundred and eightieth day after the date of enactment of this title.
T I T L E IV—FISHERMEN'S CONTINGENCY FUND

>f''* 'i4-

DEFINITIONS

SEC. 401. As used in this title, the term—
43 USC 1841.
(1) "citizen of the United States" means any pei'son who is a
United States citizen by law, birth, or naturalization, any State,
any agency of a State or a group of States, or any corporation,
partnership, or association organized under the laws of any State
which has as its president or other chief executive officer and as
its chairman of the board of directors, or holder of a similar office,
a person who is a United States citizen by law, birth, or naturalization, and which has at least 75 per centum of the interest of therein
owned by citizens of the United States. Seventy-five per centum
of the interest in the corporation shall not be deemed to be owned
by citizens of the United States—
(A) if the title to 75 per centum of its stock is not vested in
such citizens free from any trust or fiduciary obligation in
'-^'' '^'^^*favor of any person not a citizen of the United States;
' '*"

92 STAT. 686

Mm. 'im u-

,

t^„^,

ll«,j ;t,i ! y;
•

PUBLIC LAW 95-372—SEPT. 18, 1978
(B) if 75 per centum of the voting power in such corporation is not vested in citizens of the United States;
(C) if through any contract or under-standing it is so arranged that more than 25 per centum of the voting power may
be exercised, directly or indirectly, in behalf of any person
who is not a citizen of the United States; or
(D) if by any other means whatsoever control of any interest in the corporation in excess of 25 per centum is conferred
upon or permitted to be exercised by any person who is not a
citizen of the United States;
(2) "commercial fisherman" means any citizen of the United
States who owns, operates, or derives income from being employed
on a commercial fishing vessel;
(3) "commercial fishing vessel" means any vessel, boat, ship, or
other craft which is (A) documented under the laws of the United
States or, if under five net tons, registered under the laws of any
State, and (B) used for, equipped to be used for, or of a type
which is normally used for commercial purposes for the catching,
taking, or harvesting of fish or the aiding or assisting at sea of any
activity related to the catching, taking, or harvesting of fish,
including, but not limited to, preparation, supply, storage,
refrigeration, transportation, or processing;
(4) "fish" means finfish, mollusks, crustaceans, and all other
forms of marine animal and plant life other than marine mammals, birds, and highly migiutory species;
(5) "fishing gear" means (A) any commercial fishing vessel, and
(B) any equipment of such vessel, whether or not attached to such
a vessel;
(6) "Fund" means the Fishermen's Contingency Fund established under section 402 of this title; and
(7) "Secretary" means the Secretary of Commerce or the
designee of such Secretary,
ESTABLISHMENT OF THE F I S H E R M E N ' S CONTINGENCY FUND,* FEE
COLLECTION

43 use 1842.

„ ,

43 use 1331
note.

SEC. 402. (a) There is hereby established in the Treasury of the
United States a Fishermen's Contingency Fund. The Fund shall be
available to the Secretary without fiscal year limitation as a revolving
fund for the purpose of making payments pursuant to this section.
The total amount in the Fund shall at no time exceed $1,000,000.
Amounts paid pursuant to the provisions of subsections (c) and (d)
of this section shall be deposited in the Fund. The Fund may sue or
be sued in its own name.
(b) The Secretary is authorized to establish and maintain an area
account within the Fund for any area of the Outer Continental Shelf
for purposes of providing reasonable compensation for damages to, or
loss of, fishing gear and any resulting economic loss to commercial
fishermen due to activities related to oil and gas exploration, development, and production in such area.
(c) Upon establishment of an area account for any area of the Outer
Continental Shelf pursuant to subsection (b) of this section, any
holder of a lease issued or maintained under the Outer Continental
Shelf Lands Act for any tract in such area and any holder of an
exploration permit, or of an easement or right-of-way for the con-r

PUBLIC LAW 95-372—SEPT. 18, 1978
struction of a pipeline in such area, shall pay an amount specified by
the Secretary for the purpose of the establishment and maintenance of
an area account for such area. The Secretary of the Interior shall collect such amount and deposit it to the credit of such area account
within the Fund. In any calendar year, no holder of a lease, permit,
easement, or right-of-way shall be required to pay an amount in excess
of $5,000 per lease, permit, easement, or right-of-way.
(d) Subject to subsection (a) of this section, each area account
established pursuant to this section shall be maintained at a level not
to exceed $100,000 and, if depleted, shall be replenished by assessments
of holders of leases, permits, easements, and rights-of-way in such area.
(e) Amounts in each such area account shall be available for disbursement and shall be disbursed, subject to such amounts as are provided in appropriations Acts, for only the following purposes:
(1) Administrative and personnel expenses of such area account
and administrative and personnel expenses of the Fund which
relate to such area account, except that amounts disbursed for such
expenses in any fiscal year shall not exceed 15 per centum of the
amounts deposited in such revolving account in such fiscal year.
(2) The payment of any claim in accordance with procedures
established under this section for damages suffered as a result of
activities in the area for which such area account was established.
(3) Reasonable attorney's fees awarded pursuant to section 405
(e) of this title.

92 STAT. 687

Ji^j ti'

DUTIES AND POWERS

SEC. 403. (a) In carrying out the provisions of this title, the Secre- 43 USC 1843.
tary shall—
(1) prescribe, and from time to time amend, regulations for the Regulations,
filing, processing, and fair and expeditious settlement of claims
pursuant to this title, including a time limitation on the filing of
such claims; and
(2) identify and classify all potential hazards to commercial
fishing caused by Outer Continental Shelf oil and gas exploration,
development, and production activities, including all obstructions
on the bottom, throughout the water column, and on the siirface.
(b) The Secretary of the Interior shall establish regulations requir- Regulations,
ing all materials, equipment, tools, containers, and all other items used
on the Outer Continental Shelf to be properly color coded, stamped, or
labeled, wherever practicable, with the owner's identification prior to
actual use.
(c)(1) Payments shall be disbursed by the Secretary from the
appropriate area account to compensate commercial fishermen for
actual and consequential damages, including loss of profits, due to damages to, or loss of, fishing gear by materials, equipment, tools, containers, or other items associated with oil and gas exploration,
development, or production activities in such area, whether or not such
damage occurred in such area.
(2) Notwithstanding the provisions of paragraph (1) of this subsection, no payment may be made by the Secretary from any area
account established under this title—
(A) when the damage set forth in a claim was caused by mate, ^^^
rials, equipment, tools, containers, or other items attributable to
a financially responsible party;

92 STAT. 688

PUBLIC LAW 95-372—SEPT. 18, 1978
(B) to the extent that damages were caused by the negligence
or fault of the commercial fisherman making the claim;
(C) if the damage set forth in the claim was sustained prior to
the date of enactment of this title;
(D) in the case of a claim for damage to, or loss of, fishing gear,
in an amount in excess of the replacement value of the fishing gear
with respect to which the claim is filed;
(E) in the case of a claim for loss of profits (i) for any period
in excess of 6 months, and (ii) unless such claim is supported by
records with respect to the claimant's profits during the previous
12-month period; and
(F) for any portion of the damages claimed with respect to
which the claimant has or will receive compensation from
insurance.
BURDEN OF PROOF

43 use 1844.

^:

: •- i

SEC. 404. With respect to any claim for damages filed pursuant to
this title, there shall be a presumption that such claim is valid if the
claimant establishes that—
(1) the commercial fishing vessel was being used for fishing
and was located in an area affected by Outer Continental Shelf
activities;
(2) a report on the location of the material, equipment, tool,
container, or other item which caused such damages and the
nature of such damages was made within five days after the date
on which such damages were discovered;
(3) there was no record on nautical charts or the Notice to
Mariners on the date such damages were sustained that such
material, equipment, tool, container, or other item existed in such
area; and
(4) there was no proper surface marker or lighted buoy which
was attached or closely anchored to such material, equipment,
tool, container, or other item.
•I

•

'_

CLAIM PROCEDURES AND SUBROGATION OF RIGHTS

43 use 1845.

Hearing,

SEC. 405. (a) Any commercial fisherman suffering damages compensable under this title may file a claim for compensation with the
Secretary, except that no such claim may be filed more than 60 days
after the date of discovery of the damages with respect to which such
claim is made.
(b) Upon receipt of any claim under this section, the Secretary
shall—
(1) transmit a copy of the claim to the Secretary of the
Interior; and
(2) refer such matter to a hearing examiner appointed under
section 3105 of title 5, United States Code.
(c) The Secretary of the Interior shall make reasonable efforts to
notify all persons known to have engaged in activities associated with
Outer Continental Shelf energy activity in the vicinity. Each such
person shall promptly notify the Secretary and the 'Secretary of the
Interior as to whether he admits or denies responsibility for the damages claimed. Any such person, including lessees or permittees or their
contractors or subcontractors, may submit evidence at any hearing
conducted with respect to such claim. '

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 689

(d) The heaidng examiner shall, within 120 days after such matter
is referred to him by the Secretary, adjudicate the case and render a
decision in accordance with section 554 of title 5, United States Code.
(e) If the decision of the hearing examiner is in favor of the commercial fisherman filing the claim, such hearing examiner shall include,
as part of the amount certified to the Secretary under subsection (h)(1)
of this section, reasonable attorneys' fees incurred by such commercial
fisherman in pursuing such claim.
(f) (1) For purposes of any hearing conducted pursuant to this
section, the hearing examiner shall have the power to administer oaths
and subpena the attendance or testimony of witnesses and the production of books, records, and other evidence relative or pertinent to the
issues being presented for determination.
(2) In any hearing conducted pursuant to this section with respect
to a claim for damages resulting from activities on any area of the
Outer Continental Shelf, the hearing examiner shall consider evidence
^ '•''
' '*
of oibstructions in such area which have been identified pursuant to
the survey conducted under section 407 of this title.
(g) A hearing conducted under this section shall be conducted within
the United States judicial district within which the matter giving rise
to the claim occurred, or, if such matter occurred within two or more
districts, in any of the affected districts, or, if such matter occurred
outside of any district, in the nearest district.
(h) (1) Upon a decision by the hearing examiner and in the absence
of a request for Judicial review, any amount to be paid, subject to the
"^ " "
limitations of this section, shall be certified to the Secretary, who shall
promptly disburse the award. Sndh decision shall not be reviewable
by the Secretary.
(2) Upon payment of a claim by the Secretary pursuant to this
subsection, the Secretary shall acquire by subrogation all rights of
the claimant against any person found to be responsible for the damages with respect to which such claim was made.
(3) Any person who denies responsibility for damages with respect
to which a claim is made and who is subquently found to be responsible for such damages, and any commercial fisherman who files a
claim for damages and who is subsequently found to be responsible
for such damages, shall pay the costs of the proceedings under this
section with respect to such claim.
(i) Any person who suffers legal wrong or who is adversely affected Judicial review,
or aggrieved by the decision of a he-aring examiner under this section
may, no later than 60 days after such decision is made, seek judicial
review of such decision in the United ^States court of appeals for the
,
circuit in which the damage occurred, or if such damage occurred
outside of any circuit, in the United States court of appeals for the
nearest circuit.
A N N U A L REPORT

SEC. 406. (a) The Secretary shall submit an annual report to the 43 USC 1846.
Congress which shall set forth—
(1) a description of the types of damages set forth in claims
filed, with the Secretary during the previous year for compensation
from the Fund;
(2) the amount of compensation awarded to claimants during
the previous year; and
(3) the number of cases during the previous year in which
damages were determined to be the responsibility of a lessee or

92 STAT. 690

PUBLIC LAW 95-372—SEPT. 18, 1978
permittee conducting operations on the Outer Continental Shelf,
or the contractor or subcontractor of such a lessee or permittee.
(b) In addition to the material described in subsection (a) of this
section, the Secretary shall, after consultation with the Secretary of
the Interior, include in the first annual report an evaluation of the
feasibility and comparative cost of preventing or reducing obstructions
on the Outer Continental Shelf which pose potential hazards to commercial fishing or fishing gear by (1) imposing fines or penalties on
lessees or permittees, or contractors or subcontractors of lessees or
permittees, who are responsible for such obstructions, or (2) requiring
the bonding of such lessees or permittees or such contractors or
subcontractors.
SURVEY o r OBSTRUCTIONS ON T H E OUTER CONTINENTAL S H E L F

43 use 1847.
1

Regulations.

SEC. 407. (a) The Secretary, in cooperation with the Secretary of
the Interior, shall conduct a two-year survey of obstructions on the
Outer Continental Shelf. Such survey shall be conducted for purposes
of identifying (1) natural Ob^ructions on the Outer Continental Shelf
which pose potential hazards to commercial fishing or fishing gear, and
(2) in addition, in the case of areas in which oil and gas exploration,
development, or production is taking place, manmade obstructions
relating to such activities which pose potential hazards to commercial
fishing or fishing gear.
(b) The Secretary shall, on the basis of the survey conducted under
this section, and regulations promulgated under section 403(a) of this
title, develop charts for commercial fishermen identifying obstructions
on the Outer Continental Shelf.
(c) During the first six months of the survey conducted under this
section, the Secretary shall concentrate on areas of the Outer Continental Shelf where oil and gas production has commenced or is
expected to commence prior to the expiration of the two-year period
of such survey.
T I T L E V—AMENDMENTS TO T H E COASTAL ZONE
MANAGEMENT ACT OF 1972
COASTAL ENERGY IMPACT PROGRAM

V.'nv'

(K-

'i

-'J .

Sec. 501. (a) Paragraph (2) of section 308(b) of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1456a(b)(2)) is amended—
(1) by striking out "The amounts granted" and inserting in lieu
thereof "Subject to paragraph (3), the amounts payable";
(2) by striking out " ( A ) , (B), (C), and ( D ) " and inserting in
lieu thereof " (A), (B), and (C)" ;
(3) in subparagraph (A), by striking out "one-third" and
inserting in lieu thereof "one-half" ;
(4) in subparagraph (B), by striking out "one-sixth" and
inserting in lieu thereof "one-quarter";
(5) in subparagraph (C), by striking out "one-sixth" and inserting in lieu thereof "one-quarter"; and
(6) by striking and subparagraph (D).
(b) Such section 308 (b) is amended—
(1) by renumbering paragraphs (3) through (5), and any references thereto, as paragraphs (4) through (6), respectively; and

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 691

(2) by inserting after paragraph (2) the following new paragraph :
" ( 3 ) ( A ) ( i ) After making the calculations required under para- Appropriation
graph (2) for any fiscal year, the Secretary shall—
adjustments.
" ( I ) with respect to any coastal state which, based on such calculations, would receive an amount which is less than 2 per centum
of the amount appropriated for such fiscal year, increase the
'^
amount appropriated for such fiscal year, increase the amount
^^
payalble to such coastal state to 2 per centum of such appropriated
amount; and
" (II) with respect to any coastal state which, in such fiscal year,
would not receive a grant under paragraph (2), make a gi'ant to
such coastal state in an amount equal to 2 per centum of the total
'
*^- J '^f
amount appropriated for making grants to all states under paragraph (2) in such fiscal year if any other coastal state in the same
region will receive a grant under such paragraph in such fiscal
year, except that a coastal state shall not receive a grant under this
subclause unless the Secretary determines that it is being or will
be impacted by outer Continental Shelf energy activity and that
it will be able to expend or commit the proceeds of such grant in
.s-ns/i
accordance with the purposes set forth in paragraph (5).
"(ii) For purposes of this subparagraph—
" (I) the states of Connecticut, Delaware, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York,
North Carolina, Pennsylvania, Rhode Island, South Carolina, and
Virginia, the Commonwealth of Puerto Rico, and the Virgin
Islands (the Atlantic coastal states) shall constitute one 'region';
" ( I I ) the states of Alabama, Florida, Louisiana, Mississippi,
and Texas (the Gulf coastal states) shall constitute one 'region';
" ( I I I ) the states of California, Hawaii, Oregon, and Washington (the Pacific coastal states) shall constitute one 'region'; and
"(IV) the state of Alaska shall constitute one 'region'.
"(B) If, after the calculations required under subparagraph (A),
the total amount of funds appropriated for making grants to coastal
states in any fiscal year pureuant to this subsection is less than the total
amount of grants payable to all coastal states in such fiscal year, there
shall be deducted from the amount payable to each coastal state which
will receive more than 2 per centum of the amount of funds so appropriated an amount equal to the product of—
" (i) the amount by which the total amount of grants payable to
all coastal states in such fiscal year exceeds the total amount of
funds appropriated for making such grants; multiplied by
" (ii) a fraction, the numerator of which is the amount of grants
payable to such coastal state in such fiscal year reduced by an
amount equal to 2 per centum of the total amount appropriated for
such fiscal year and the denominator of which is the total amount
of grants payable to coastal states which, in such fiscal year, will
c^ - ; g^
receive more than 2 per centum of the amount of funds so approJ^j<^g,
priated, reduced by an amount equal to the product of 2 per centum of the total amount appropriated for such fiscal year
multiplied by the number of such coastal states.
"(C) (i) If, after the calculations required under subparagraph (B)
for any fiscal year, any coastal state would receive an amount which is
greater than 37i^ per centum of the amount appropriated for such
fiscal year, the Secretary shall reduce the amount payable to such
coastal state to 37i/^ per centum of such appropriated amount.

92 STAT. 692

"Payable
proportionately.

16 u s e 1456a.

Rules.

PUBLIC LAW 95-372—SEPT. 18, 1978
"(ii) An^ amount not payable to a coastal state in a fiscal year due
to a reduction under clause (i) shall be payable proportionately to all
coastal states which are to receive more than 2 per centum and less than
371/^ per centum of the amount appropriated for such fiscal year,
except that in no event shall any coastal state receive more than 37l^
per centum of such appropriated amount.
"(iii) For purposes of this subparagraph, the term 'payable proportionately' means payment in any fiscal year in accordance with the provisions of paragraph (2), except that in making calculations under
such paragraph the Secretary shall only include those coastal states
which are to receive more than 2 per centum and less than 37i/^ per
centum of the amount appropriated for such fiscal year.".
(c)(1) Paragraph (5) (B) (i) of such section 308(b) (as renumbered by subsection (b) of this section) is amended to read as follows:
"(i) necessary to provide new or improved public facilities
and public services which are required as a result of outer
Continental Shelf energy activity;".
(2) Paragraph (5) (B) of such section 308(b) (as so renumbered) is
amended by adding at the end thereof the following new sentence:
"The Secretary may, pursuant to criteria promulgated by rule,
describe geographic areas in which public facilities and public
services referred to in clause (i) shall be presumed to be required
as a result of outer Continental Shelf energy activity for purposes
of disbursing the proceeds of grants under this subsection.".
AUTHORIZATION

OF APPROPRIATIONS

SEC. 502. Paragraph (3) of section 318(a) of the Coastal Zone Management Act of 1972 (16 U.S.C. 1464(a) (3)), is amended to read as
follows:
"(3) such sums, not to exceed $50,000,000 for each of the fiscal
years ending September 30,1977, and September 30,1978, and not
to exceed $130,000,000 per fiscal year for each of the fiscal years
occurring during the period beginning on October 1, 1978, and
ending September 30, 1988, as may be necessary for grants under
section 308(b) ;".
OUTER CONTINENTAL SHELF GRANTS

43 use 1331
note.

SEC. 503. (a) Section 308(c) of the Coastal Zone Management Act of
1972 (16 U.S.C. 1456a(c)) is amended—
(1) by inserting " ( 1 ) " immediately after " ( c ) " ; and
(2) by adding at the end thereof the following new paragraph:
"(2) The Secretary shall make grants imder this paragraph to any
coastal state which the Secretary finds is likely to be affected by outer
Continental Shelf energy activities. Such grants shall be used by such
state to carry and its responsibilities under the Outer Continental
Shelf Lands Act. The amount of any such grant shall not exceed 80
per centum of the cost of carrying out such responsibilities,".
(b) Section 308 (a) (1) of the Coastal Zone Management Act of 1972
(16 U.S.C. 1456a (a) (1)) is amended—
(1) in subparagraph (B) thereof, by striking out "subsection
(c)" and inserting in lieu thereof "subsection (c) (1)"; and
(2) by redesignating subparagraphs (C) through ( F ) , and any
references thereto, as subparagraphs (D) through (G), respec-

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 693

tively, and inserting immediately after subparagraph (B) the
following new subparagraph:
" (C) grants, under subsection (c) (2), to coastal states to carry
out their responsibilities under the Outer Continental Shelf Lands
43 use 1331
Act;".
(c) Section 308(h) of the Coastal Zone Management Act of 1972 note.
(16 IJ.S.C. 1456a(h)) is amended by striking out "subsections (c)"
each place it appears and inserting in lieu thereof "subsections (c)
(I)"(d) Section 308(k)(l) of the Coastal Zone Management Act of
1972 (16 U.S.C. 1456a(k) (1)) is amended by striking out "and (c)"
and inserting in lieu thereof "and (c) (1)".
(e) Section 318(a) of the Coastal Zone Management Act of 1972
(16 U.S.C. 1464(a)) is amended—
(1) by redesignating paragraphs (4) through (8), and all references thereto, as paragraphs (5) through (9), respectively; and
(2) by inserting immediately after paragraph (3) the following new paragraph:
"(4) such sums, not to exceed $5,000,000 for each of the fiscal Funds,
years ending September 30, 1979, September 30, 1980, Septem- availability.
ber 30,1981, September 30,1982, and September 30,1983, as may
be necessary for grants under section 308(c) (2), to remain available until expended;".
(f) Section 318(b) of the Coastal Zone Management Act of 1972
(16 U.S.C. 1464(b)) is amended—
(1) by striking out "subsection ( b ) " and inserting in lieu
thereof "subsections (b) and (c) (2)"; and
(2) by striking out "subsections (c)" and inserting in lieu
thereof "subsections (c) (1)".
STATE MANAGEMENT PROGRAM

SEC. 504. Section 307(c) (3) (B) (ii) of the Coastal Zone Management Act of 1972 (16 U.S.C. 1456(c) (3) (B) (ii)) is amended to read
as follows:
"(ii) concurrence by such state with such certification is conclusively presumed as provided for in subparagraph (A), except
if such state fails to concur with or object to such certification
within three months after receipt of its copy of such certification
and supporting information, such state shall provide the Secretary, the appropriate federal agency, and such person with a
written statement describing the status of review and the basis
for further delay in issuing a final decision, and if such statement
is not so provided, concurrence by such state with such certifica, J tion shall be conclusively presumed; or".
i>.

• 1 iss-i-'v/s

TITLE VI—MISCELLANEOUS PROVISIONS
REVIEW o r S H U T - I N OR FLARING W E I X S

SEC. 601. (a) In a report submitted within six months after the 43 USC 18f>l.
date of enactment of this Act, and his annual report thereafter, the
Secretary of the Interior shall list all shut-in oil and gas wells and
wells flaring natural gas on leases issued under the Outer Continental
Shelf Lands Act. Each such report shall be submitted to the Comp- 43 USC 1331
note.
Report to
Comptroller
General.

92 STAT. 694

Report to
Congress.

PUBLIC LAW 95-372—SEPT. 18, 1978
troUer General and shall indicate why each well is shut-in or flaring
natural gas, and whether the Secretary intends to require production
on such a shut-in well or order cessation flaring.
(b) Within six months after receipt of the Secretary's report, the
Comptroller General shall review and evaluate the methodology used
by the Secretary in allowing the wells to be shut-in or to flare natural
gas and submit his findings and recommendations to the Congress.
REVIEW AND REVISION OF ROYALTY PAYMENTS

Report to
Congress.
30 use 237.

.
'*''

SEC. 602. As soon as feasible and no later than ninety days after the
date of enactment of this Act, and annually thereafter, the Secretaiy
of the Interior shall submit a report or reports to the Congress describing the extent, during the two-year period preceding such report, of
delinquent royalty accounts under leases issued under any Act which
regulates the development of oil and gas on Federal lands, and what
new auditing, post-auditing, and accounting procedures have been
adopted to assure accurate and timely payment of royalties and net
profit shares. Such report or reports shall include any recommendations for corrective action which the Secretary of the Interior determines to be appropriate.
NATURAL GAS DISTRIBUTION

43 use 1862.

SEC. 603. (a) The purpose of this section is to encourage expanded
participation by local distribution companies in acquisition of leases
and development of natural gas resources on the Outer Continental
Shelf by facilitating the transportation in interstate commerce of natural gas, which is produced from a lease located on the Outer Continental Shelf and owned, in whole or in part, by a local distribution
company, from such lease to the service area of such local distribution
company.
Publication in
(b) The Federal Energy Regulatory Commission shall, after opporFederal Register, tunity for presentation of written and oral views, promulgate and
publish in the Federal Register a statement of Commission policy
which carries out the purpose of this section and sets forth the standards under which the Commission will consider applications for, and,
as appropriate, issue certificates of public convenience and necessity,
15 use 717f.
pursuant to section 7 of the Natural Gas Act, for the transportation in
interstate commerce of natural gas, which is produced from a lease
located on the Outer Continental Shelf and owned, in whole or in part,
by a local distribution company, from such lease to the service area of
such local distribution company. Such statement of policy shall specify the criteria, limitations, or requirements the Commission will
apply in determing—
(1) whether the application of any local distribution company
qualifies for consideration under the statement of policy; and
(2) whether the public convenience and necessity will be served
by the issuance of the requested certificate of transportation.
Such statement of policy shall also set forth the terms or limitations
on which the Commission may condition, pursuant to section 7 of the
••-"'
Natural Gas Act, the issuance of a certificate of transportation under
such statement of policy. To the maximum extent practicable, such
statement shall be promulgated and published within one year after
the date of enactment of this section.

PUBLIC LAW 95-372—SEPT. 18, 1978
(c) For purposes of this section, the term—
(1) "local distribution company" means any person—
(A) engaged in the distribution of natural gas at retail,
including any subsidiary or affiliate thereof engaged in the
exploration and production of natural gas; and
(B) regulated, or operated as a public utility, by a State or
local government or agency thereof;
(2) "interstate commerce" shall have the same meaning as such
term has under section 2 (7) of the Natural Gas Act; and
(3) "Commission" means the Federal Energy Eegulatory
Commission.
ANTroiSCRIMINATION

Definitions.

15 u s e 717a.

PROVISIONS

SEC. 604. Each agency or department given responsibility for the
romulgation or enforcement of regulations under this Act or the
uter Continental Shelf Lands Act shall take such affirmative action
as deemed necessary to prohibit all unlawful employment practices and
to assure that no person shall, on the grounds of race, creed, color,
national origin, or sex, be excluded from receiving or participating in
any activity, sale, or employment, conducted pursuant to the provisions of this Act or the Outer Continental Shelf Lands Act. The
agency or department shall promulgate such rules as it deems necessary to carry out the purposes of this section, and any rules promulgated under this section, whether through agency and department
provisions or rules, shall be similar to those established and in effect
under title VI and title V I I of the Civil Rights Act of 1964.

S

SUNSHINE IN

92 STAT. 695

43 u s e 1863.

43 USe 1331 et
seq.

Rules,

42 use 200(>d,
2000e.

GOVERNMENT

SEC. 605. (a) Each officer or employee of the Department of the 43 USe 186^1
Interior who—
(1) performs any function or duty under this Act or the Outer
Continental Shelf Lands Act, as amended by this Act; and
43 use 1331
(2) has any known financial interest in any person who (A) note.
applies for or receives any permit or lease under, or (B) is otherwise subject to the provisions of this Act or the Outer Continental
Shelf Lands Act,
shall, beginning on February 1, 1979, annually file with the Secretary
of the Interior a written statement concerning all such interests held
by such officer or employee during the preceeding calendar year. Such
statement shall be available to the public,
(b) The Secretary of the Interior shall—
(1) within ninety days after the date of enactment of this Act—
(A) define the term "known financial interest" for pur- "Known financial
interest."
poses of subsection (a) of this section; and
(B) establish the methods by which the requirement to file
written statements specified in subsection (a) of this section
will be monitored and enforced, including appropriate provisions for the filling by such officers and emplovees of such
statements and the review by the Secretary of such statements; and
(2) report to the Congress on June 1 of each calendar year with Report to
respect to such disclosures and the actions taken in regard thereto eongress.
during the preceding calendar year.

92 STAT. 696
-mmim-l:,}

Penalty.

PUBLIC LAW 95-372—SEPT. 18, 1978
i^) ^^ *^^® rules prescribed in subsection (b) of this section, the Secretary may identity specific positions within the Department of the
Interior which are of a nonregulatory or nonpolicymaking nature and
provide that officers or employees occupying such positions shall be
exempt from the requirements of this section.
(d) Any officer or employee who is subject to, and knowingly violates, this section shall be fined not more than $2,500 or imprisoned not
more than one year, or both.
INVESTIGATION OF AVAILABILITY OF OIL AND NATURAL GAS FROM T H E
OUTER CONTINENTAL SHELF

43 use 1865.

Hi

eoii.;

,fe<^
*
''^'-•'

^^i^^*^

SEC. 606. (a) The Congress hereby finds that—
(1) there is a serious lack of adequate basic energy information
available to the Congress and the Secretary of the Interior with
respect to the availability of oil and natural gas from the Outer
Continental Shelf;
(2) there is currently an urgent need for such information;
(3) the existing collection of information by Federal departments and agencies relevant to the determination of the availability of such oil and natural gas is uncoordinated, is jurisdictionally
limited in scope, and relies too heavily on unverified information
from industry sources;
(4) adequate, reliable, and comprehensive information with
respect to the availability of such oil and natural gas is essential
to the national security of the United States; and
(5) this lack of adequate reserve data requires a reexamination
of past data as well as the acquisition of adequate current data.
(b) The purpose of this section is to enable the Secretary of the
Interior and the Congress to gain the best possible knowledge of the
status of Outer Continental Shelf oil and natural gas reserves,
resources, productive capacity, and production available to meet current and future energy supply emergencies, to gain accurate knowledge
of the potential quantity of oil and natural gas resources which could
be made available to meet such emergencies, and to aid in establishing
energy pricing and conservation policies.
(c) The Secretary of the Interior shall conduct a continuing investigation, based on data and information which he determines has been
adequately and independently audited and verified, for the purpose of
determining the availability of all oil and natural gas produced or
located on the Outer Continental Shelf.
(d) The investigation conducted pursuant to this section shall
include, among other items—
( l ) ( A ) a determination of the maximum attainable rate of
production (MAR) of crude oil and natural gas from significant
fields on the Outer Continental Shelf; and
(B) an analysis of whether the actual production has been less
than the MAR and, if so, the reasons for the differences;
(2) an estimate of the total discovered crude oil and natural gas
reserves by fields (including proved and indicated reserves) and
undiscovered crude oil and natural gas resources (including hypothetical and speculative resources) of the Outer Continental
Shelf;
(3) the relationship of any and all such information to the
requirements of conservation, industry, commerce, and the national
defense; and

PUBLIC LAW 95-372—SEPT. 18, 1978

92 STAT. 697

(4) an independent evaluation of trade association procedures
for estimating Outer Continental Shelf reserves, ultimate recovery, and productive capacity for years in which trade associations
made such estimates. In order to provide maximum opportunity
for evaluation and continuity, the Secretary shall obtain all the
available data and other records, including a description of the
methodology and estim;ating procedures, which the trade associations used in compiling their data with respect to the reserves.
(e) The Secretary shall, not later than one year after the date of Report to
enactment of this section, submit an initial report to the Congress. The Congress.
initial report shall include cost estimates for the separate components
of the continuing investigation and a time schedule for meeting all of
its specifications. The schedule shall provide for producing all the
information required in subsections (d) (1) (A), (d) (2), and (d) (3)
of this section on the day following the first complete calendar year
after such date of enactment, and every two years thereafter. The Effective dates
Secretary shall make separate reports on the data acquired pursuant
to subsection (d) (4) of this section as follows:
(1) Within six months after the date of enactment of this section, a report on the acquisition and details of trade association
data and information.
(2) Within twelve months after submission of the report
required by subsection (e) (1) of this section, an evaluation of the
trade a,ssociation materials.
(3) Within twelve months after submission of the report
required by paragraph (2) of this subsection, a report on the relationship between trade association data and the new data collected
under this section.
(f) The Secretary of the Interior shall consult with the Federal Federal Trade
Trade Commission regarding categories of information acquired pur- Commission,
suant to this section. Notwithstanding any other provision of law, the consultation.
Secretary of the Interior shall, upon request of the Federal Trade
Commission, make available to such Commission any information
acquired under this section.
(g) For purposes of this section, the term—
Definitions.
(1) "maximum attainable rate of production" or "MAR" means
the maximum rate of production of crude oil and natural gas
which may be produced under actual operating conditions without loss of ultimate recovery of crude oil and natural gas; and
(2) "Outer Continental Shelf" has the meaning given such
term in section 2(a) of the Outer Continental Shelf Lands Act. 43 USC 1331.
RECOMMENDATIONS FOR TRAINING PROGRAM

SEC. 607. Not later than ninety days after the date of enactment of
this Act, the Secretary of the Interior, in consultation with the Secretary of the Department in which the Coast Guard is operating, shall
prepare and submit to the Congress a report which sets forth the recommendations of the Secretary for a program to assure that any
individual—
(1) who is employed on any artificial island, installation, or
other device located on the Outer Continental Shelf; and
(2) who, as part of such employment, operates, or supervises
the operation of pollution-prevention equipment,
is properly trained to operate, or supervise the operation of, such
equipment, as the case may be.

Report to
Congress.
43 USC 1348
note.

92 STAT. 698

PUBLIC LAW 95-372—SEPT. 18, 1978
RELATIONSHIP TO EXISTING LAW

43 use 1866.
16 use 1451
°°*®fnote
2 y SC 4321
30 u s e 21a note

SEC. 608. (a) Except as otherwise expressly provided in this Act,
nothing in this Act shall be construed to amend, modify, or repeal
any provision of the Coastal Zone Management Act of 1972, the
National Environmental Policy Act of 1969, the Mining and Mineral
Policy Act of 1970, or any other Act.
(b) Nothing in this Act or any amendment made by this Act to
the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.)
or any other Act shall be construed to affect or modify the provisions
of the Department of Energy Organization Act (42 U.S.C. 7101 et
seq.) whicn provide for the transferring and vesting of functions to
and in the Secretary of Energy or any component of the Department
of Energy.
Approved September 18, 1978.

LEGISLATIVE HISTORY:
HOUSE REPORTS No. 95-590 accompanying H.R. 1614 (Ad Hoc Select Committee on
the Outer Continental Shelf) and No. 95-1474 (Comm. of Conference).
SENATE REPORTS No. 95-284 (Comm. on Energy and Natural Resources) and No.
95-1091 (Comm. of Conference).
CONGRESSIONAL RECORD:
Vol. 123 (1977): July 14, 15, considered and passed Senate.
Vol. 124 (1978): Jan. 25, 26, 31, Feb. 1, 2, H.R. 1614 considered and passed
House; proceedings vacated and S. 9, amended, passed in lieu.
Aug. 17, House agreed to conference report.
Aug. 22, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS:
Vol. 14, No. 38 (1978): Sept. 18, Presidential statement.