43 Usc 1301-1356

Page 297

TITLE 43—PUBLIC LANDS

and tenants of land acquired for developments and to
applications for payments.
Section 1232, Pub. L. 85–433, § 2, May 29, 1958, 72 Stat.
152, related to administration and rules and regulations.
Section 1233, Pub. L. 85–433, § 3, May 29, 1958, 72 Stat.
152, related to definitions.
Section 1234, Pub. L. 85–433, § 4, May 29, 1958, 72 Stat.
152, related to availability of appropriations. See section 4601 et seq. of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF REPEAL
Repeal effective Jan. 2, 1971, see section 221 of Pub. L.
91–646, set out as an Effective Date note under section
4601 of Title 42, The Public Health and Welfare.
SAVINGS PROVISION
Any rights or liabilities existing under provisions repealed by section 220(a) of Pub. L. 91–646 as not affected
by such repeal, see section 220(b) of Pub. L. 91–646, set
out as a note under section 4621 of Title 42, The Public
Health and Welfare.

SUBCHAPTER XIII—STATE CONTROL OF
NOXIOUS PLANTS ON GOVERNMENT LANDS
§ 1241. Control of noxious plants on Government
lands; State programs; terms of entry
The heads of Federal departments or agencies
are authorized and directed to permit the commissioner of agriculture or other proper agency
head of any State in which there is in effect a
program for the control of noxious plants to
enter upon any lands under their control or jurisdiction and destroy noxious plants growing on
such land if—
(1) such entry is in accordance with a program submitted to and approved by such department or agency: Provided, That no entry
shall occur when the head of such Federal department or agency, or his designee, shall
have certified that entry is inconsistent with
national security;
(2) the means by which noxious plants are
destroyed are acceptable to the head of such
department or agency; and
(3) the same procedure required by the State
program with respect to privately owned land
has been followed.
(Pub. L. 90–583, § 1, Oct. 17, 1968, 82 Stat. 1146.)
§ 1242. Reimbursement of States for expenses
Any State incurring expenses pursuant to section 1241 of this title upon presentation of an
itemized account of such expenses shall be reimbursed by the head of the department or agency
having control or jurisdiction of the land with
respect to which such expenses were incurred:
Provided, That such reimbursement shall be only
to the extent that funds appropriated specifically to carry out the purposes of this subchapter are available therefor during the fiscal
year in which the expenses are incurred.
(Pub. L. 90–583, § 2, Oct. 17, 1968, 82 Stat. 1146.)
§ 1243. Authorization of appropriations
There are hereby authorized to be appropriated to departments or agencies of the Federal Government such sums as the Congress may
determine to be necessary to carry out the purposes of this subchapter.

§ 1301

(Pub. L. 90–583, § 3, Oct. 17, 1968, 82 Stat. 1146.)
CHAPTER 29—SUBMERGED LANDS
SUBCHAPTER I—GENERAL PROVISIONS
Sec.

1301.
1302.
1303.

Definitions.
Resources seaward of Continental Shelf.
Amendment, modification, or repeal of other
laws.

SUBCHAPTER II—LANDS BENEATH NAVIGABLE
WATERS WITHIN STATE BOUNDARIES
1311.
1312.
1313.
1314.

1315.

Rights of States.
Seaward boundaries of States.
Exceptions from operation of section 1311 of
this title.
Rights and powers retained by United States;
purchase of natural resources; condemnation of lands.
Rights acquired under laws of United States
unaffected.

SUBCHAPTER III—OUTER CONTINENTAL SHELF
LANDS
1331.
1332.
1333.
1334.
1335.
1336.

1337.
1338.
1338a.

1339.
1340.
1341.
1342.
1343.
1344.
1345.
1346.
1347.
1348.
1349.
1350.
1351.
1352.
1353.
1354.
1355.

1356.
1356a.
1356b.

Definitions.
Congressional declaration of policy.
Laws and regulations governing lands.
Administration of leasing.
Validation and maintenance of prior leases.
Controversies over jurisdiction; agreements;
payments; final settlement or adjudication;
approval of notice concerning oil and gas
operations in Gulf of Mexico.
Leases, easements, and rights-of-way on the
outer Continental Shelf.
Disposition of revenues.
Moneys received as a result of forfeiture by
Outer Continental Shelf permittee, lessee,
or right-of-way holder; return of excess
amounts.
Repealed.
Geological and geophysical explorations.
Reservation of lands and rights.
Prior claims as unaffected.
Repealed.
Outer Continental Shelf leasing program.
Coordination and consultation with affected
State and local governments.
Environmental studies.
Safety and health regulations.
Enforcement of safety and environmental
regulations.
Citizens suits, jurisdiction and judicial review.
Remedies and penalties.
Oil and gas development and production.
Oil and gas information program.
Federal purchase and disposition of oil and
gas.
Limitations on export of oil or gas.
Restrictions on employment of former officers or employees of Department of the Interior.
Documentary, registry and manning requirements.
Coastal impact assistance program.
Transboundary hydrocarbon agreements.

SUBCHAPTER I—GENERAL PROVISIONS
§ 1301. Definitions
When used in this subchapter and subchapter
II—
(a) The term ‘‘lands beneath navigable waters’’ means—
(1) all lands within the boundaries of each of
the respective States which are covered by

§ 1301

TITLE 43—PUBLIC LANDS

nontidal waters that were navigable under the
laws of the United States at the time such
State became a member of the Union, or acquired sovereignty over such lands and waters
thereafter, up to the ordinary high water
mark as heretofore or hereafter modified by
accretion, erosion, and reliction;
(2) all lands permanently or periodically covered by tidal waters up to but not above the
line of mean high tide and seaward to a line
three geographical miles distant from the
coast line of each such State and to the boundary line of each such State where in any case
such boundary as it existed at the time such
State became a member of the Union, or as
heretofore approved by Congress, extends seaward (or into the Gulf of Mexico) beyond three
geographical miles,1 and
(3) all filled in, made, or reclaimed lands
which formerly were lands beneath navigable
waters, as hereinabove defined;
(b) The term ‘‘boundaries’’ includes the seaward boundaries of a State or its boundaries in
the Gulf of Mexico or any of the Great Lakes as
they existed at the time such State became a
member of the Union, or as heretofore approved
by the Congress, or as extended or confirmed
pursuant to section 1312 of this title but in no
event shall the term ‘‘boundaries’’ or the term
‘‘lands beneath navigable waters’’ be interpreted
as extending from the coast line more than
three geographical miles into the Atlantic
Ocean or the Pacific Ocean, or more than three
marine leagues into the Gulf of Mexico, except
that any boundary between a State and the
United States under this subchapter or subchapter II which has been or is hereafter fixed
by coordinates under a final decree of the United
States Supreme Court shall remain immobilized
at the coordinates provided under such decree
and shall not be ambulatory;
(c) The term ‘‘coast line’’ means the line of ordinary low water along that portion of the coast
which is in direct contact with the open sea and
the line marking the seaward limit of inland waters;
(d) The terms ‘‘grantees’’ and ‘‘lessees’’ include (without limiting the generality thereof)
all political subdivisions, municipalities, public
and private corporations, and other persons
holding grants or leases from a State, or from
its predecessor sovereign if legally validated, to
lands beneath navigable waters if such grants or
leases were issued in accordance with the constitution, statutes, and decisions of the courts of
the State in which such lands are situated, or of
its predecessor sovereign: Provided, however,
That nothing herein shall be construed as conferring upon said grantees or lessees any greater
rights or interests other than are described
herein and in their respective grants from the
State, or its predecessor sovereign;
(e) The term ‘‘natural resources’’ includes,
without limiting the generality thereof, oil, gas,
and all other minerals, and fish, shrimp, oysters,
clams, crabs, lobsters, sponges, kelp, and other
marine animal and plant life but does not include water power, or the use of water for the
production of power;
1 So

in original. The comma probably should be a semicolon.

Page 298

(f) The term ‘‘lands beneath navigable waters’’
does not include the beds of streams in lands
now or heretofore constituting a part of the public lands of the United States if such streams
were not meandered in connection with the public survey of such lands under the laws of the
United States and if the title to the beds of such
streams was lawfully patented or conveyed by
the United States or any State to any person;
(g) The term ‘‘State’’ means any State of the
Union;
(h) The term ‘‘person’’ includes, in addition to
a natural person, an association, a State, a political subdivision of a State, or a private, public, or municipal corporation.
(May 22, 1953, ch. 65, title I, § 2, 67 Stat. 29; Pub.
L. 99–272, title VIII, § 8005, Apr. 7, 1986, 100 Stat.
151.)
AMENDMENTS
1986—Subsec. (b). Pub. L. 99–272 inserted ‘‘, except
that any boundary between a State and the United
States under this subchapter or subchapter II which
has been or is hereafter fixed by coordinates under a
final decree of the United States Supreme Court shall
remain immobilized at the coordinates provided under
such decree and shall not be ambulatory’’.
SHORT TITLE OF 1995 AMENDMENT
Pub. L. 104–58, title III, § 301, Nov. 28, 1995, 109 Stat.
563, provided that: ‘‘This title [amending section 1337 of
this title and enacting provisions set out as notes
under section 1337 of this title] may be referred to as
the ‘Outer Continental Shelf Deep Water Royalty Relief Act’.’’
SHORT TITLE OF 1986 AMENDMENTS
Pub. L. 99–367, § 1, July 31, 1986, 100 Stat. 774, provided:
‘‘That this Act [enacting section 1865 of this title,
amending section 1343 of this title, and repealing section 1861 of this title] may be referred to as the ‘OCS
Paperwork and Reporting Act’.’’
Pub. L. 99–272, title VIII, § 8001, Apr. 7, 1986, 100 Stat.
147, provided that: ‘‘This title [amending this section
and sections 1332 and 1337 of this title and enacting provisions set out as a note under section 1337 of this title]
may be referred to as the ‘Outer Continental Shelf
Lands Act Amendments of 1985’.’’
SHORT TITLE
Act Aug. 7, 1953, ch. 345, § 1, 67 Stat. 462, provided
that: ‘‘This Act [enacting subchapter III of this chapter] may be cited as the ‘Outer Continental Shelf Lands
Act’.’’
Act May 22, 1953, ch. 65, § 1, 67 Stat. 29, provided that:
‘‘This Act [enacting subchapters I and II of this chapter] may be cited as the ‘Submerged Lands Act’.’’
SEPARABILITY
Act May 22, 1953, ch. 65, title II, § 11, 67 Stat. 33, provided that: ‘‘If any provision of this Act [enacting subchapters I and II of this chapter], or any section, subsection, sentence, clause, phrase or individual word, or
the application thereof to any person or circumstance
is held invalid, the validity of the remainder of the Act
and of the application of any such provision, section,
subsection, sentence, clause, phrase or individual word
to other persons and circumstances shall not be affected thereby; without limiting the generality of the
foregoing, if subsection 3(a)1, 3(a)2, 3(b)1, 3(b)2, 3(b)3, or
3(c) [section 1311(a)(1), (a)(2), (b)(1), (b)(2), (b)(3), (c) of
this title] or any provision of any of those subsections
is held invalid, such subsection or provision shall be
held separable and the remaining subsections and provisions shall not be affected thereby.’’

Page 299

TITLE 43—PUBLIC LANDS
NAVAL PETROLEUM RESERVE

Act May 22, 1953, ch. 65, title II, § 10, 67 Stat. 33, revoked Ex. Ord. No. 10426, Jan. 16, 1953, 18 F.R. 405, ‘‘insofar as it applies to any lands beneath navigable waters as defined in section 2 hereof [this section]’’. Ex.
Ord. 10426 set aside certain submerged lands as a naval
petroleum reserve and transferred functions with respect thereto from the Secretary of the Interior to the
Secretary of the Navy.
APPLICATION TO STATE OF ALASKA
Admission of Alaska into the Union was accomplished Jan. 3, 1959, on issuance of Proc. No. 3269, Jan.
3, 1959, 24 F.R. 81, 73 Stat. c16, as required by sections
1 and 8(c) of Pub. L. 85–508, July 7, 1958, 72 Stat. 339, set
out as notes preceding section 21 of Title 48, Territories
and Insular Possessions.
Applicability of subchapters I and II of this chapter
to the State of Alaska, see section 6(m) of Pub. L.
85–508, set out as a note preceding section 21 of Title 48.
APPLICATION TO STATE OF HAWAII
Applicability of this chapter to the State of Hawaii,
see section 5(i) of Pub. L. 86–3, Mar. 18, 1959, 73 Stat. 6,
set out as a note preceding section 491 of Title 48, Territories and Insular Possessions.

§ 1302. Resources seaward of Continental Shelf
Nothing in this subchapter or subchapter II
shall be deemed to affect in any wise the rights
of the United States to the natural resources of
that portion of the subsoil and seabed of the
Continental Shelf lying seaward and outside of
the area of lands beneath navigable waters, as
defined in section 1301 of this title, all of which
natural resources appertain to the United
States, and the jurisdiction and control of which
by the United States is confirmed.
(May 22, 1953, ch. 65, title II, § 9, 67 Stat. 32.)
§ 1303. Amendment, modification, or repeal of
other laws
Nothing in this subchapter or subchapter II
shall be deemed to amend, modify, or repeal the
Acts of July 26, 1866 (14 Stat. 251), July 9, 1870 (16
Stat. 217), March 3, 1877 (19 Stat. 377), June 17,
1902 (32 Stat. 388), and December 22, 1944 (58 Stat.
887), and Acts amendatory thereof or supplementary thereto.
(May 22, 1953, ch. 65, title II, § 7, 67 Stat. 32.)
REFERENCES IN TEXT
Act July 26, 1866 (14 Stat. 251), referred to in text, is
act July 26, 1866, ch. 262, 14 Stat. 251, which is not classified to the Code.
Act July 9, 1870 (16 Stat. 217), referred to in text, is
act July 9, 1870, ch. 235, 16 Stat. 217, which is not classified to the Code.
Act March 3, 1877 (19 Stat. 377), referred to in text, is
act Mar. 3, 1877, ch. 107, 19 Stat. 377, as amended, popularly known as the Desert Lands Act, which is classified generally to sections 321 to 323, 325, and 327 to 329
of this title. For complete classification of this Act to
the Code, see Tables.
Act June 17, 1902 (32 Stat. 388), referred to in text, is
popularly known as the Reclamation Act, which is classified generally to chapter 12 (§ 371) of this title. For
complete classification of this Act to the Code, see
Short Title note set out under section 371 of this title
and Tables.
Act December 22, 1944 (58 Stat. 887), referred to in
text, is act Dec. 22, 1944, ch. 665, 58 Stat. 887, as amended, which enacted section 390 of this title, sections 460d
and 825s of Title 16, Conservation, and sections 701–1,

§ 1311

701a–1, 708, and 709 of Title 33, Navigation and Navigable Waters, amended section 701b–1 of Title 33, and
enacted provisions set out as notes under section 701f of
Title 33. For complete classification of this Act to the
Code, see Tables.

SUBCHAPTER II—LANDS BENEATH NAVIGABLE WATERS WITHIN STATE BOUNDARIES
§ 1311. Rights of States
(a) Confirmation and establishment of title and
ownership of lands and resources; management, administration, leasing, development,
and use
It is determined and declared to be in the public interest that (1) title to and ownership of the
lands beneath navigable waters within the
boundaries of the respective States, and the natural resources within such lands and waters, and
(2) the right and power to manage, administer,
lease, develop, and use the said lands and natural resources all in accordance with applicable
State law be, and they are, subject to the provisions hereof, recognized, confirmed, established,
and vested in and assigned to the respective
States or the persons who were on June 5, 1950,
entitled thereto under the law of the respective
States in which the land is located, and the respective grantees, lessees, or successors in interest thereof;
(b) Release and relinquishment of title and
claims of United States; payment to States of
moneys paid under leases
(1) The United States releases and relinquishes
unto said States and persons aforesaid, except as
otherwise reserved herein, all right, title, and
interest of the United States, if any it has, in
and to all said lands, improvements, and natural
resources; (2) the United States releases and relinquishes all claims of the United States, if any
it has, for money or damages arising out of any
operations of said States or persons pursuant to
State authority upon or within said lands and
navigable waters; and (3) the Secretary of the
Interior or the Secretary of the Navy or the
Treasurer of the United States shall pay to the
respective States or their grantees issuing
leases covering such lands or natural resources
all moneys paid thereunder to the Secretary of
the Interior or to the Secretary of the Navy or
to the Treasurer of the United States and subject to the control of any of them or to the control of the United States on May 22, 1953, except
that portion of such moneys which (1) is required to be returned to a lessee; or (2) is deductible as provided by stipulation or agreement
between the United States and any of said
States;
(c) Leases in effect on June 5, 1950
The rights, powers, and titles hereby recognized, confirmed, established, and vested in and
assigned to the respective States and their
grantees are subject to each lease executed by a
State, or its grantee, which was in force and effect on June 5, 1950, in accordance with its terms
and provisions and the laws of the State issuing,
or whose grantee issued, such lease, and such
rights, powers, and titles are further subject to
the rights herein now granted to any person

§ 1312

TITLE 43—PUBLIC LANDS

Page 300
SEPARABILITY

holding any such lease to continue to maintain
the lease, and to conduct operations thereunder,
in accordance with its provisions, for the full
term thereof, and any extensions, renewals, or
replacements authorized therein, or heretofore
authorized by the laws of the State issuing, or
whose grantee issued such lease: Provided, however, That, if oil or gas was not being produced
from such lease on and before December 11, 1950,
or if the primary term of such lease has expired
since December 11, 1950, then for a term from
May 22, 1953 equal to the term remaining unexpired on December 11, 1950, under the provisions of such lease or any extensions, renewals,
or replacements authorized therein, or heretofore authorized by the laws of the State issuing, or whose grantee issued, such lease: Provided, however, That within ninety days from
May 22, 1953 (i) the lessee shall pay to the State
or its grantee issuing such lease all rents, royalties, and other sums payable between June 5,
1950, and May 22, 1953, under such lease and the
laws of the State issuing or whose grantee issued such lease, except such rents, royalties, and
other sums as have been paid to the State, its
grantee, the Secretary of the Interior or the
Secretary of the Navy or the Treasurer of the
United States and not refunded to the lessee;
and (ii) the lessee shall file with the Secretary
of the Interior or the Secretary of the Navy and
with the State issuing or whose grantee issued
such lease, instruments consenting to the payment by the Secretary of the Interior or the
Secretary of the Navy or the Treasurer of the
United States to the State or its grantee issuing
the lease, of all rents, royalties, and other payments under the control of the Secretary of the
Interior or the Secretary of the Navy or the
Treasurer of the United States or the United
States which have been paid, under the lease,
except such rentals, royalties, and other payments as have also been paid by the lessee to the
State or its grantee;
(d) Authority and rights of United States respecting navigation, flood control and production
of power
Nothing in this subchapter or subchapter I
shall affect the use, development, improvement,
or control by or under the constitutional authority of the United States of said lands and
waters for the purposes of navigation or flood
control or the production of power, or be construed as the release or relinquishment of any
rights of the United States arising under the
constitutional authority of Congress to regulate
or improve navigation, or to provide for flood
control, or the production of power;
(e) Ground and surface waters west of 98th meridian
Nothing in this subchapter or subchapter I
shall be construed as affecting or intended to affect or in any way interfere with or modify the
laws of the States which lie wholly or in part
westward of the ninety-eighth meridian, relating to the ownership and control of ground and
surface waters; and the control, appropriation,
use, and distribution of such waters shall continue to be in accordance with the laws of such
States.

There is excepted from the operation of section 1311 of this title—
(a) all tracts or parcels of land together with
all accretions thereto, resources therein, or
improvements thereon, title to which has been
lawfully and expressly acquired by the United
States from any State or from any person in
whom title had vested under the law of the
State or of the United States, and all lands
which the United States lawfully holds under
the law of the State; all lands expressly retained by or ceded to the United States when
the State entered the Union (otherwise than
by a general retention or cession of lands underlying the marginal sea); all lands acquired
by the United States by eminent domain proceedings, purchase, cession, gift, or otherwise
in a proprietary capacity; all lands filled in,
built up, or otherwise reclaimed by the United
States for its own use; and any rights the
United States has in lands presently and actually occupied by the United States under
claim of right;
(b) such lands beneath navigable waters
held, or any interest in which is held by the
United States for the benefit of any tribe,
band, or group of Indians or for individual Indians; and
(c) all structures and improvements constructed by the United States in the exercise
of its navigational servitude.

(May 22, 1953, ch. 65, title II, § 3, 67 Stat. 30.)

(May 22, 1953, ch. 65, title II, § 5, 67 Stat. 32.)

Provisions of this section as separable, see section 11
of act May 22, 1953, set out as a note under section 1301
of this title.

§ 1312. Seaward boundaries of States
The seaward boundary of each original coastal
State is approved and confirmed as a line three
geographical miles distant from its coast line
or, in the case of the Great Lakes, to the international boundary. Any State admitted subsequent to the formation of the Union which has
not already done so may extend its seaward
boundaries to a line three geographical miles
distant from its coast line, or to the international boundaries of the United States in the
Great Lakes or any other body of water traversed by such boundaries. Any claim heretofore
or hereafter asserted either by constitutional
provision, statute, or otherwise, indicating the
intent of a State so to extend its boundaries is
approved and confirmed, without prejudice to its
claim, if any it has, that its boundaries extend
beyond that line. Nothing in this section is to be
construed as questioning or in any manner prejudicing the existence of any State’s seaward
boundary beyond three geographical miles if it
was so provided by its constitution or laws prior
to or at the time such State became a member
of the Union, or if it has been heretofore approved by Congress.
(May 22, 1953, ch. 65, title II, § 4, 67 Stat. 31.)
§ 1313. Exceptions from operation of section 1311
of this title

Page 301

TITLE 43—PUBLIC LANDS

§ 1314. Rights and powers retained by United
States; purchase of natural resources; condemnation of lands
(a) The United States retains all its navigational servitude and rights in and powers of regulation and control of said lands and navigable
waters for the constitutional purposes of commerce, navigation, national defense, and international affairs, all of which shall be paramount
to, but shall not be deemed to include, proprietary rights of ownership, or the rights of management, administration, leasing, use, and development of the lands and natural resources
which are specifically recognized, confirmed, established, and vested in and assigned to the respective States and others by section 1311 of this
title.
(b) In time of war or when necessary for national defense, and the Congress or the President shall so prescribe, the United States shall
have the right of first refusal to purchase at the
prevailing market price, all or any portion of
the said natural resources, or to acquire and use
any portion of said lands by proceeding in accordance with due process of law and paying just
compensation therefor.
(May 22, 1953, ch. 65, title II, § 6, 67 Stat. 32.)
§ 1315. Rights acquired under laws of United
States unaffected
Nothing contained in this subchapter or subchapter I shall affect such rights, if any, as may
have been acquired under any law of the United
States by any person in lands subject to this
subchapter or subchapter I and such rights, if
any, shall be governed by the law in effect at the
time they may have been acquired: Provided,
however, That nothing contained in this subchapter or subchapter I is intended or shall be
construed as a finding, interpretation, or construction by the Congress that the law under
which such rights may be claimed in fact or in
law applies to the lands subject to this subchapter or subchapter I, or authorizes or compels the granting of such rights in such lands,
and that the determination of the applicability
or effect of such law shall be unaffected by anything contained in this subchapter or subchapter
I.
(May 22, 1953, ch. 65, title II, § 8, 67 Stat. 32.)
SUBCHAPTER III—OUTER CONTINENTAL
SHELF LANDS
§ 1331. Definitions
When used in this subchapter—
(a) The term ‘‘outer Continental Shelf’’ means
all submerged lands lying seaward and outside
of the area of lands beneath navigable waters as
defined in section 1301 of this title, and of which
the subsoil and seabed appertain to the United
States and are subject to its jurisdiction and
control;
(b) The term ‘‘Secretary’’ means the Secretary
of the Interior, except that with respect to functions under this subchapter transferred to, or
vested in, the Secretary of Energy or the Federal Energy Regulatory Commission by or pursuant to the Department of Energy Organization

§ 1331

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 1337 of
this title or maintained under section 1335 of
this title and which authorizes exploration for,
and development and production of, minerals;
(d) The term ‘‘person’’ includes, in addition to
a natural person, an association, a State, a political subdivision of a State, or a private, public, or municipal corporation;
(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 shorelines 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 1454(b)(1) 1 of title 16;
(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 subchapter, any
State—
(1) the laws of which are declared, pursuant
to section 1333(a)(2) of this title, 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 1333(a)(1) of this title;
(3) which is receiving, or in accordnace 2 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
including 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 human 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;
1 See
2 So

References in Text note below.
in original. Probably should be ‘‘accordance’’.

§ 1331

TITLE 43—PUBLIC LANDS

(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 intertidal 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 subchapter;
(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 geological
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;
(l) 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 all 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. 8 et seq.);
or
(5) the Act of June 19, 1936, chapter 592 (15
U.S.C. 13, 13a, 13b, and 21a);
(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

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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 4332(2)(C) of
title 42; and
(q) The term ‘‘minerals’’ includes oil, gas, sulphur, geopressured-geothermal 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 1702 of
this title.
(Aug. 7, 1953, ch. 345, § 2, 67 Stat. 462; Pub. L.
95–372, title II, § 201, Sept. 18, 1978, 92 Stat. 632.)
REFERENCES IN TEXT
The Department of Energy Organization Act, referred
to in subsec. (b), is Pub. L. 95–91, Aug. 4, 1977, 91 Stat.
565, as amended, which is classified principally to chapter 84 (§ 7101 et seq.) of Title 42, The Public Health and
Welfare. For complete classification of this Act to the
Code, see Short Title note set out under section 7101 of
Title 42 and Tables.
Section 1454(b) of title 16, referred to in subsec. (e),
was amended generally by Pub. L. 101–508, title VI,
§ 6205, Nov. 5, 1990, 104 Stat. 1388–302, and, as so amended, does not contain a par. (1).
The Sherman Act, referred to in subsec. (n)(1), is act
July 2, 1890, ch. 647, 26 Stat. 209, as amended, which enacted sections 1 to 7 of Title 15, Commerce and Trade.
For complete classification of this Act to the Code, see
Short Title note set out under section 1 of Title 15 and
Tables.
The Clayton Act, referred to in subsec. (n)(2), is act
Oct. 15, 1914, ch. 323, 38 Stat. 730, as amended, which is
classified generally to sections 12, 13, 14 to 19, 21, and
22 to 27 of Title 15, and sections 52 and 53 of Title 29,
Labor. For further details and complete classification
of this Act to the Code, see References in Text note set
out under section 12 of Title 15 and Tables.
The Federal Trade Commission Act, referred to in
subsec. (n)(3), is act Sept. 26, 1914, ch. 311, 38 Stat. 717,
as amended, which is classified generally to subchapter
I (§ 41 et seq.) of chapter 2 of Title 15. For complete classification of this Act to the Code, see section 58 of Title
15 and Tables.
The Wilson Tariff Act, referred to in subsec. (n)(4), is
act Aug. 27, 1894, ch. 349, §§ 73 to 77, 28 Stat. 570, as
amended. Sections 73 to 76 enacted sections 8 to 11 of
Title 15. Section 77 is not classified to the Code. For
complete classification of this Act to the Code, see
Short Title note set out under section 8 of Title 15 and
Tables.
Act of June 19, 1936, referred to in subsec. (n)(5), is act
June 19, 1936, ch. 592, 49 Stat. 1526, popularly known as
the Robinson-Patman Act, the Robinson-Patman Antidiscrimination Act, and the Robinson-Patman Price
Discrimination Act, which enacted sections 13a, 13b,
and 21a of Title 15, Commerce and Trade, and amended
section 13 of Title 15. For complete classification of
this Act to the Code, see Short Title note set out under
section 13 of Title 15 and Tables.
AMENDMENTS
1978—Subsec. (b). Pub. L. 95–372, § 201(a), inserted provision that, with respect to functions under this sub-

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chapter transferred to, or vested in, the Secretary of
Energy or the Federal Energy Regulatory Commission
by or pursuant to the Department of Energy Organization Act, ‘‘Secretary’’ means the Secretary of Energy
or the Federal Energy Regulatory Commission, as the
case may be.
Subsec. (c). Pub. L. 95–372, § 201(a), substituted
‘‘lease’’ for ‘‘mineral lease’’ as term defined and in definition of that term substituted ‘‘any form of authorization which is issued under section 1337 of this title or
maintained under section 1335 of this title and which
authorizes exploration for, and development and production of, minerals;’’ for ‘‘any form of authorization
for the exploration for, or development or removal of
deposits of, oil, gas, or other minerals; and’’.
Subsec. (d). Pub. L. 95–372, § 201(b)(1), substituted
semicolon for period at end.
Subsecs. (e) to (q). Pub. L. 95–372, § 201(b)(2), added
subsecs. (e) to (q).
SHORT TITLE OF 1978 AMENDMENT
For short title of Pub. L. 95–372 as the ‘‘Outer Continental Shelf Lands Act Amendments of 1978’’, see section 1 of Pub. L. 95–372, set out as a Short Title note
under section 1801 of this title.
SHORT TITLE
For short title of act Aug. 7, 1953, which enacted this
subchapter, as the ‘‘Outer Continental Shelf Lands
Act’’, see section 1 of act Aug. 7, 1953, set out as a note
under section 1301 of this chapter.
SEPARABILITY
Act Aug. 7, 1953, ch. 345, § 17, 67 Stat. 471, provided
that: ‘‘If any provision of this Act [enacting this subchapter], or any section, subsection, sentence, clause,
phrase or individual word, or the application thereof to
any person or circumstance is held invalid, the validity
of the remainder of the Act and of the application of
any such provision, section, subsection, sentence,
clause, phrase or individual word to other persons and
circumstances shall not be affected thereby.’’
TRANSFER OF FUNCTIONS
Functions of Secretary of the Interior to promulgate
regulations under this subchapter which relate to fostering of competition for Federal leases, implementation of alternative bidding systems authorized for
award of Federal leases, establishment of diligence requirements for operations conducted on Federal leases,
setting of rates for production of Federal leases, and
specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests
taken in kind, transferred to Secretary of Energy by
section 7152(b) of Title 42, The Public Health and Welfare. Section 7152(b) of Title 42 was repealed by Pub. L.
97–100, title II, § 201, Dec. 23, 1981, 95 Stat. 1407, and functions of Secretary of Energy returned to Secretary of
the Interior. See House Report No. 97–315, pp. 25, 26,
Nov. 5, 1981.
GULF OF MEXICO ENERGY SECURITY
Pub. L. 109–432, div. C, title I, Dec. 20, 2006, 120 Stat.
3000, as amended by Pub. L. 113–287, § 5(l)(2), Dec. 19,
2014, 128 Stat. 3270, provided that:
‘‘SEC. 101. SHORT TITLE.
‘‘This title may be cited as the ‘Gulf of Mexico Energy Security Act of 2006’.
‘‘SEC. 102. DEFINITIONS.
‘‘In this title:
‘‘(1) 181 AREA.—The term ‘181 Area’ means the area
identified in map 15, page 58, of the Proposed Final
Outer Continental Shelf Oil and Gas Leasing Program
for 1997–2002, dated August 1996, of the Minerals Management Service, available in the Office of the Director of the Minerals Management Service, excluding
the area offered in OCS Lease Sale 181, held on December 5, 2001.

§ 1331

‘‘(2) 181 SOUTH AREA.—The term ‘181 South Area’
means any area—
‘‘(A) located—
‘‘(i) south of the 181 Area;
‘‘(ii) west of the Military Mission Line; and
‘‘(iii) in the Central Planning Area;
‘‘(B) excluded from the Proposed Final Outer Continental Shelf Oil and Gas Leasing Program for
1997–2002, dated August 1996, of the Minerals Management Service; and
‘‘(C) included in the areas considered for oil and
gas leasing, as identified in map 8, page 37 of the
document entitled ‘Draft Proposed Program Outer
Continental Shelf Oil and Gas Leasing Program
2007–2012’, dated February 2006.
‘‘(3) BONUS OR ROYALTY CREDIT.—The term ‘bonus or
royalty credit’ means a legal instrument or other
written documentation, or an entry in an account
managed by the Secretary, that may be used in lieu
of any other monetary payment for—
‘‘(A) a bonus bid for a lease on the outer Continental Shelf; or
‘‘(B) a royalty due on oil or gas production from
any lease located on the outer Continental Shelf.
‘‘(4) CENTRAL PLANNING AREA.—The term ‘Central
Planning Area’ means the Central Gulf of Mexico
Planning Area of the outer Continental Shelf, as designated in the document entitled ‘Draft Proposed
Program Outer Continental Shelf Oil and Gas Leasing
Program 2007–2012’, dated February 2006.
‘‘(5) EASTERN PLANNING AREA.—The term ‘Eastern
Planning Area’ means the Eastern Gulf of Mexico
Planning Area of the outer Continental Shelf, as designated in the document entitled ‘Draft Proposed
Program Outer Continental Shelf Oil and Gas Leasing
Program 2007–2012’, dated February 2006.
‘‘(6) 2002–2007 PLANNING AREA.—The term ‘2002–2007
planning area’ means any area—
‘‘(A) located in—
‘‘(i) the Eastern Planning Area, as designated in
the Proposed Final Outer Continental Shelf Oil
and Gas Leasing Program 2002–2007, dated April
2002, of the Minerals Management Service;
‘‘(ii) the Central Planning Area, as designated
in the Proposed Final Outer Continental Shelf Oil
and Gas Leasing Program 2002–2007, dated April
2002, of the Minerals Management Service; or
‘‘(iii) the Western Planning Area, as designated
in the Proposed Final Outer Continental Shelf Oil
and Gas Leasing Program 2002–2007, dated April
2002, of the Minerals Management Service; and
‘‘(B) not located in—
‘‘(i) an area in which no funds may be expended
to conduct offshore preleasing, leasing, and related activities under sections 104 through 106 of the
Department of the Interior, Environment, and
Related Agencies Appropriations Act, 2006 (Public
Law 109–54; 119 Stat. 521) (as in effect on August
2, 2005);
‘‘(ii) an area withdrawn from leasing under the
‘Memorandum on Withdrawal of Certain Areas of
the United States Outer Continental Shelf from
Leasing Disposition’, from 34 Weekly Comp. Pres.
Doc. 1111, dated June 12, 1998; or
‘‘(iii) the 181 Area or 181 South Area.
‘‘(7) GULF PRODUCING STATE.—The term ‘Gulf producing State’ means each of the States of Alabama,
Louisiana, Mississippi, and Texas.
‘‘(8) MILITARY MISSION LINE.—The term ‘Military
Mission Line’ means the north-south line at 86°41′ W.
longitude.
‘‘(9) QUALIFIED OUTER CONTINENTAL SHELF REVENUES.—
‘‘(A) IN GENERAL.—The term ‘qualified outer Continental Shelf revenues’ means—
‘‘(i) in the case of each of fiscal years 2007
through 2016, all rentals, royalties, bonus bids,
and other sums due and payable to the United
States from leases entered into on or after the
date of enactment of this Act [Dec. 20, 2006] for—

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TITLE 43—PUBLIC LANDS

‘‘(I) areas in the 181 Area located in the Eastern Planning Area; and
‘‘(II) the 181 South Area; and
‘‘(ii) in the case of fiscal year 2017 and each fiscal year thereafter, all rentals, royalties, bonus
bids, and other sums due and payable to the
United States received on or after October 1, 2016,
from leases entered into on or after the date of
enactment of this Act for—
‘‘(I) the 181 Area;
‘‘(II) the 181 South Area; and
‘‘(III) the 2002–2007 planning area.
‘‘(B) EXCLUSIONS.—The term ‘qualified outer Continental Shelf revenues’ does not include—
‘‘(i) revenues from the forfeiture of a bond or
other surety securing obligations other than royalties, civil penalties, or royalties taken by the
Secretary in-kind and not sold; or
‘‘(ii) revenues generated from leases subject to
section 8(g) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(g)).
‘‘(10) COASTAL POLITICAL SUBDIVISION.—The term
‘coastal political subdivision’ means a political subdivision of a Gulf producing State any part of which
political subdivision is—
‘‘(A) within the coastal zone (as defined in section
304 of the Coastal Zone Management Act of 1972 (16
U.S.C. 1453)) of the Gulf producing State as of the
date of enactment of this Act [Dec. 20, 2006]; and
‘‘(B) not more than 200 nautical miles from the
geographic center of any leased tract.
‘‘(11) SECRETARY.—The term ‘Secretary’ means the
Secretary of the Interior.
‘‘SEC. 103. OFFSHORE OIL AND GAS LEASING IN 181
AREA AND 181 SOUTH AREA OF GULF OF MEXICO.
‘‘(a) 181 AREA LEASE SALE.—Except as provided in
section 104, the Secretary shall offer the 181 Area for oil
and gas leasing pursuant to the Outer Continental
Shelf Lands Act (43 U.S.C. 1331 et seq.) as soon as practicable, but not later than 1 year, after the date of enactment of this Act [Dec. 20, 2006].
‘‘(b) 181 SOUTH AREA LEASE SALE.—The Secretary
shall offer the 181 South Area for oil and gas leasing
pursuant to the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.) as soon as practicable after the date
of enactment of this Act [Dec. 20, 2006].
‘‘(c) LEASING PROGRAM.—The 181 Area and 181 South
Area shall be offered for lease under this section notwithstanding the omission of the 181 Area or the 181
South Area from any outer Continental Shelf leasing
program under section 18 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1344).
‘‘(d) CONFORMING AMENDMENT.—[Amended section 105
of Pub. L. 109–54, 119 Stat. 522.]
‘‘SEC. 104. MORATORIUM ON OIL AND GAS LEASING
IN CERTAIN AREAS OF GULF OF MEXICO.
‘‘(a) IN GENERAL.—Effective during the period beginning on the date of enactment of this Act [Dec. 20, 2006]
and ending on June 30, 2022, the Secretary shall not
offer for leasing, preleasing, or any related activity—
‘‘(1) any area east of the Military Mission Line in
the Gulf of Mexico;
‘‘(2) any area in the Eastern Planning Area that is
within 125 miles of the coastline of the State of Florida; or
‘‘(3) any area in the Central Planning Area that is—
‘‘(A) within—
‘‘(i) the 181 Area; and
‘‘(ii) 100 miles of the coastline of the State of
Florida; or
‘‘(B)(i) outside the 181 Area;
‘‘(ii) east of the western edge of the Pensacola Official Protraction Diagram (UTM X coordinate
1,393,920 (NAD 27 feet)); and
‘‘(iii) within 100 miles of the coastline of the
State of Florida.
‘‘(b) MILITARY MISSION LINE.—Notwithstanding subsection (a), the United States reserves the right to des-

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ignate by and through the Secretary of Defense, with
the approval of the President, national defense areas on
the outer Continental Shelf pursuant to section 12(d) of
the Outer Continental Shelf Lands Act (43 U.S.C.
1341(d)).
‘‘(c) EXCHANGE OF CERTAIN LEASES.—
‘‘(1) IN GENERAL.—The Secretary shall permit any
person that, as of the date of enactment of this Act
[Dec. 20, 2006], has entered into an oil or gas lease
with the Secretary in any area described in paragraph (2) or (3) of subsection (a) to exchange the lease
for a bonus or royalty credit that may only be used
in the Gulf of Mexico.
‘‘(2) VALUATION OF EXISTING LEASE.—The amount of
the bonus or royalty credit for a lease to be exchanged shall be equal to—
‘‘(A) the amount of the bonus bid; and
‘‘(B) any rental paid for the lease as of the date
the lessee notifies the Secretary of the decision to
exchange the lease.
‘‘(3) REVENUE DISTRIBUTION.—No bonus or royalty
credit may be used under this subsection in lieu of
any payment due under, or to acquire any interest in,
a lease subject to the revenue distribution provisions
of section 8(g) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(g)).
‘‘(4) REGULATIONS.—Not later than 1 year after the
date of enactment of this Act, the Secretary shall
promulgate regulations that shall provide a process
for—
‘‘(A) notification to the Secretary of a decision to
exchange an eligible lease;
‘‘(B) issuance of bonus or royalty credits in exchange for relinquishment of the existing lease;
‘‘(C) transfer of the bonus or royalty credit to any
other person; and
‘‘(D) determining the proper allocation of bonus
or royalty credits to each lease interest owner.
‘‘SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES FROM 181 AREA,
181 SOUTH AREA, AND 2002–2007 PLANNING
AREAS OF GULF OF MEXICO.
‘‘(a) IN GENERAL.—Notwithstanding section 9 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1338) and
subject to the other provisions of this section, for each
applicable fiscal year, the Secretary of the Treasury
shall deposit—
‘‘(1) 50 percent of qualified outer Continental Shelf
revenues in the general fund of the Treasury; and
‘‘(2) 50 percent of qualified outer Continental Shelf
revenues in a special account in the Treasury from
which the Secretary shall disburse—
‘‘(A) 75 percent to Gulf producing States in accordance with subsection (b); and
‘‘(B) 25 percent to provide financial assistance to
States in accordance with section 200305 of title 54,
United States Code, which shall be considered income to the Land and Water Conservation Fund for
purposes of section 200302 of that title.
‘‘(b) ALLOCATION AMONG GULF PRODUCING STATES AND
COASTAL POLITICAL SUBDIVISIONS.—
‘‘(1) ALLOCATION AMONG GULF PRODUCING STATES FOR
FISCAL YEARS 2007 THROUGH 2016.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B),
effective for each of fiscal years 2007 through 2016,
the amount made available under subsection
(a)(2)(A) shall be allocated to each Gulf producing
State in amounts (based on a formula established
by the Secretary by regulation) that are inversely
proportional to the respective distances between
the point on the coastline of each Gulf producing
State that is closest to the geographic center of the
applicable leased tract and the geographic center of
the leased tract.
‘‘(B) MINIMUM ALLOCATION.—The amount allocated to a Gulf producing State each fiscal year
under subparagraph (A) shall be at least 10 percent
of the amounts available under subsection (a)(2)(A).
‘‘(2) ALLOCATION AMONG GULF PRODUCING STATES FOR
FISCAL YEAR 2017 AND THEREAFTER.—

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‘‘(A) IN GENERAL.—Subject to subparagraphs (B)
and (C), effective for fiscal year 2017 and each fiscal
year thereafter—
‘‘(i) the amount made available under subsection (a)(2)(A) from any lease entered into within the 181 Area or the 181 South Area shall be allocated to each Gulf producing State in amounts
(based on a formula established by the Secretary
by regulation) that are inversely proportional to
the respective distances between the point on the
coastline of each Gulf producing State that is
closest to the geographic center of the applicable
leased tract and the geographic center of the
leased tract; and
‘‘(ii) the amount made available under subsection (a)(2)(A) from any lease entered into within the 2002–2007 planning area shall be allocated
to each Gulf producing State in amounts that are
inversely proportional to the respective distances
between the point on the coastline of each Gulf
producing State that is closest to the geographic
center of each historical lease site and the geographic center of the historical lease site, as determined by the Secretary.
‘‘(B) MINIMUM ALLOCATION.—The amount allocated to a Gulf producing State each fiscal year
under subparagraph (A) shall be at least 10 percent
of the amounts available under subsection (a)(2)(A).
‘‘(C) HISTORICAL LEASE SITES.—
‘‘(i) IN GENERAL.—Subject to clause (ii), for purposes of subparagraph (A)(ii), the historical lease
sites in the 2002–2007 planning area shall include
all leases entered into by the Secretary for an
area in the Gulf of Mexico during the period beginning on October 1, 1982 (or an earlier date if
practicable, as determined by the Secretary), and
ending on December 31, 2015.
‘‘(ii) ADJUSTMENT.—Effective January 1, 2022,
and every 5 years thereafter, the ending date described in clause (i) shall be extended for an additional 5 calendar years.
‘‘(3) PAYMENTS TO COASTAL POLITICAL SUBDIVISIONS.—
‘‘(A) IN GENERAL.—The Secretary shall pay 20 percent of the allocable share of each Gulf producing
State, as determined under paragraphs (1) and (2),
to the coastal political subdivisions of the Gulf producing State.
‘‘(B) ALLOCATION.—The amount paid by the Secretary to coastal political subdivisions shall be allocated to each coastal political subdivision in accordance with subparagraphs (B), (C), and (E) of
section 31(b)(4) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1356a(b)(4)).
‘‘(c) TIMING.—The amounts required to be deposited
under paragraph (2) of subsection (a) for the applicable
fiscal year shall be made available in accordance with
that paragraph during the fiscal year immediately following the applicable fiscal year.
‘‘(d) AUTHORIZED USES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), each
Gulf producing State and coastal political subdivision shall use all amounts received under subsection
(b) in accordance with all applicable Federal and
State laws, only for 1 or more of the following purposes:
‘‘(A) Projects and activities for the purposes of
coastal protection, including conservation, coastal
restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses.
‘‘(B) Mitigation of damage to fish, wildlife, or
natural resources.
‘‘(C) Implementation of a federally-approved marine, coastal, or comprehensive conservation management plan.
‘‘(D) Mitigation of the impact of outer Continental Shelf activities through the funding of onshore
infrastructure projects.
‘‘(E) Planning assistance and the administrative
costs of complying with this section.

§ 1331

‘‘(2) LIMITATION.—Not more than 3 percent of
amounts received by a Gulf producing State or coastal political subdivision under subsection (b) may be
used for the purposes described in paragraph (1)(E).
‘‘(e) ADMINISTRATION.—Amounts made available
under subsection (a)(2) shall—
‘‘(1) be made available, without further appropriation, in accordance with this section;
‘‘(2) remain available until expended; and
‘‘(3) be in addition to any amounts appropriated
under—
‘‘(A) the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.);
‘‘(B) chapter 2003 of title 54, United States Code;
or
‘‘(C) any other provision of law.
‘‘(f) LIMITATIONS ON AMOUNT OF DISTRIBUTED QUALIFIED OUTER CONTINENTAL SHELF REVENUES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
total amount of qualified outer Continental Shelf
revenues made available under subsection (a)(2) shall
not exceed $500,000,000 for each of fiscal years 2016
through 2055.
‘‘(2) EXPENDITURES.—For the purpose of paragraph
(1), for each of fiscal years 2016 through 2055, expenditures under subsection (a)(2) shall be net of receipts
from that fiscal year from any area in the 181 Area in
the Eastern Planning Area and the 181 South Area.
‘‘(3) PRO RATA REDUCTIONS.—If paragraph (1) limits
the amount of qualified outer Continental Shelf revenue that would be paid under subparagraphs (A) and
(B) of subsection (a)(2)—
‘‘(A) the Secretary shall reduce the amount of
qualified outer Continental Shelf revenue provided
to each recipient on a pro rata basis; and
‘‘(B) any remainder of the qualified outer Continental Shelf revenues shall revert to the general
fund of the Treasury.’’
[Pub. L. 113–287, § 5(l)(2)(A)(i), Dec. 19, 2014, 128 Stat.
3270, which directed substitution of ‘‘section 200305 of
title 54, United States Code’’ for ‘‘section 6 of the Land
And Water Conservation Fund Act of 1965 (16 U.S.C.
460l–8)’’ in subsec. (a)(2)(B) of section 105 of the Gulf of
Mexico Energy Security Act of 2006 (Public Law 109–432,
div. C, title I), set out above, was executed by making
the substitution for ‘‘section 6 of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l–8)’’ to reflect the probable intent of Congress.]
[The Minerals Management Service was abolished
and functions divided among the Office of Natural Resources Revenue, the Bureau of Ocean Energy Management, and the Bureau of Safety and Environmental Enforcement. See Secretary of the Interior Orders No. 3299
of May 19, 2010, and No. 3302 of June 18, 2010, and chapters II, V, and XII of title 30, Code of Federal Regulations, as revised by final rules of the Department of the
Interior at 75 F.R. 61051 and 76 F.R. 64432.]
Pub. L. 112–74, div. E, title I, Dec. 23, 2011, 125 Stat.
995, provided in part: ‘‘That for fiscal year 2012 and each
fiscal year thereafter, the term ‘qualified Outer Continental Shelf revenues’, as defined in section 102(9)(A)
of the Gulf of Mexico Energy Security Act [of 2006],
[title I of] division C of Public Law 109–432 [set out
above], shall include only the portion of rental revenues that would have been collected by the Secretary
at the rental rates in effect before August 5, 1993.’’
Similar provisions were contained in the following
appropriation act:
Pub. L. 112–74, div. E, title I, Dec. 23, 2011, 125 Stat.
994.
NAVAL PETROLEUM RESERVE
Act Aug. 7, 1953, ch. 345, § 13, 67 Stat. 470, revoked Ex.
Ord. No. 10426, Jan. 16, 1953, 18 F.R. 405, which had set
aside certain submerged lands as a naval petroleum reserve and had transferred functions with respect thereto from the Secretary of the Interior to the Secretary
of the Navy.
AUTHORIZATION OF APPROPRIATIONS
Act Aug. 7, 1953, ch. 345, § 16, 67 Stat. 471, provided
that: ‘‘There is hereby authorized to be appropriated

§ 1332

TITLE 43—PUBLIC LANDS

such sums as may be necessary to carry out the provisions of this Act [enacting this subchapter].’’
PROC. NO. 5928. TERRITORIAL SEA OF UNITED STATES
Proc. No. 5928, Dec. 27, 1988, 54 F.R. 777, provided:
International law recognizes that coastal nations
may exercise sovereignty and jurisdiction over their
territorial seas.
The territorial sea of the United States is a maritime
zone extending beyond the land territory and internal
waters of the United States over which the United
States exercises sovereignty and jurisdiction, a sovereignty and jurisdiction that extend to the airspace
over the territorial sea, as well as to its bed and subsoil.
Extension of the territorial sea by the United States
to the limits permitted by international law will advance the national security and other significant interests of the United States.
NOW, THEREFORE, I, RONALD REAGAN, by the authority vested in me as President by the Constitution
of the United States of America, and in accordance
with international law, do hereby proclaim the extension of the territorial sea of the United States of America, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and any
other territory or possession over which the United
States exercises sovereignty.
The territorial sea of the United States henceforth
extends to 12 nautical miles from the baselines of the
United States determined in accordance with international law.
In accordance with international law, as reflected in
the applicable provisions of the 1982 United Nations
Convention on the Law of the Sea, within the territorial sea of the United States, the ships of all countries enjoy the right of innocent passage and the ships
and aircraft of all countries enjoy the right of transit
passage through international straits.
Nothing in this Proclamation:
(a) extends or otherwise alters existing Federal or
State law or any jurisdiction, rights, legal interests, or
obligations derived therefrom; or
(b) impairs the determination, in accordance with
international law, of any maritime boundary of the
United States with a foreign jurisdiction.
IN WITNESS WHEREOF, I have hereunto set my
hand this 27th day of December, in the year of our Lord
nineteen hundred and eighty-eight, and of the Independence of the United States of America the two hundred and thirteenth.
RONALD REAGAN.
PROC. NO. 7219. CONTIGUOUS ZONE OF THE UNITED STATES
Proc. No. 7219, Sept. 2, 1999, 64 F.R. 48701, 49844, provided:
International law recognizes that coastal nations
may establish zones contiguous to their territorial
seas, known as contiguous zones.
The contiguous zone of the United States is a zone
contiguous to the territorial sea of the United States,
in which the United States may exercise the control
necessary to prevent infringement of its customs, fiscal, immigration, or sanitary laws and regulations
within its territory or territorial sea, and to punish infringement of the above laws and regulations committed within its territory or territorial sea.
Extension of the contiguous zone of the United States
to the limits permitted by international law will advance the law enforcement and public health interests
of the United States. Moreover, this extension is an important step in preventing the removal of cultural heritage found within 24 nautical miles of the baseline.
NOW, THEREFORE, I, WILLIAM J. CLINTON, by the
authority vested in me as President by the Constitution of the United States, and in accordance with international law, do hereby proclaim the extension of the
contiguous zone of the United States of America, in-

Page 306

cluding the Commonwealth of Puerto Rico, Guam,
American Samoa, the United States Virgin Islands, the
Commonwealth of the Northern Mariana Islands, and
any other territory or possession over which the United
States exercises sovereignty, as follows:
The contiguous zone of the United States extends to
24 nautical miles from the baselines of the United
States determined in accordance with international
law, but in no case within the territorial sea of another
nation.
In accordance with international law, reflected in the
applicable provisions of the 1982 Convention on the Law
of the Sea, within the contiguous zone of the United
States the ships and aircraft of all countries enjoy the
high seas freedoms of navigation and overflight and the
laying of submarine cables and pipelines, and other
internationally lawful uses of the sea related to those
freedoms, such as those associated with the operation
of ships, aircraft, and submarine cables and pipelines,
and compatible with the other provisions of international law reflected in the 1982 Convention on the
Law of the Sea.
Nothing in this proclamation:
(a) amends existing Federal or State law;
(b) amends or otherwise alters the rights and duties
of the United States or other nations in the Exclusive
Economic Zone of the United States established by
Proclamation 5030 of March 10, 1983 [16 U.S.C. 1453
note]; or
(c) impairs the determination, in accordance with
international law, of any maritime boundary of the
United States with a foreign jurisdiction.
IN WITNESS WHEREOF, I have hereunto set my
hand this second day of September, in the year of our
Lord nineteen hundred and ninety-nine, and of the
Independence of the United States of America the two
hundred and twenty-fourth.
WILLIAM J. CLINTON.

§ 1332. Congressional declaration of policy
It 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 subchapter;
(2) this subchapter shall be construed in such
a manner that the character of the waters
above the outer Continental Shelf as high seas
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;
(B) the distribution of a portion of the receipts from the leasing of mineral resources

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TITLE 43—PUBLIC LANDS

of the outer Continental Shelf adjacent to
State lands, as provided under section 1337(g)
of this title, will provide affected coastal
States and localities with funds which may
be used for the mitigation of adverse economic and environmental effects related to
the development of such resources; and
(C) 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.1
(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 welltrained 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.
(Aug. 7, 1953, ch. 345, § 3, 67 Stat. 462; Pub. L.
95–372, title II, § 202, Sept. 18, 1978, 92 Stat. 634;
Pub. L. 99–272, title VIII, § 8002, Apr. 7, 1986, 100
Stat. 148.)
AMENDMENTS
1986—Par. (4)(B), (C). Pub. L. 99–272 added subpar. (B)
and redesignated former subpar. (B) as (C).
1978—Pub. L. 95–372 redesignated subsecs. (a) and (b)
as pars. (1) and (2) and added pars. (3) to (6).

§ 1333. Laws and regulations governing lands
(a) Constitution and United States laws; laws of
adjacent States; publication of projected
State lines; international boundary disputes;
restriction on State taxation and jurisdiction
(1) The Constitution and laws and civil and political jurisdiction of the United States are extended to the subsoil and seabed of the outer
Continental Shelf and to all artificial islands,
and all installations and other devices permanently or temporarily attached to the seabed,
which may be erected thereon for the purpose of
exploring for, developing, or producing resources
therefrom, or any such installation or other device (other than a ship or vessel) for the purpose
of transporting such resources, to the same extent as if the outer Continental Shelf were an
area of exclusive Federal jurisdiction located
within a State: Provided, however, That mineral
leases on the outer Continental Shelf shall be
maintained or issued only under the provisions
of this subchapter.
(2)(A) To the extent that they are applicable
and not inconsistent with this subchapter or
1 So

in original. The period probably should be a semicolon.

§ 1333

with other Federal laws and regulations of the
Secretary now in effect or hereafter adopted, the
civil and criminal laws of each adjacent State,
now in effect or hereafter adopted, amended, or
repealed are declared to be the law of the United
States for that portion of the subsoil and seabed
of the outer Continental Shelf, and artificial islands and fixed structures erected thereon,
which would be within the area of the State if
its boundaries were extended seaward to the
outer margin of the outer Continental Shelf, and
the President shall determine and publish in the
Federal Register such projected lines extending
seaward and defining each such area. All of such
applicable laws shall be administered and enforced by the appropriate officers and courts of
the United States. State taxation laws shall not
apply to the outer Continental Shelf.
(B) Within one year after September 18, 1978,
the President shall establish procedures for
setting 1 any outstanding international boundary dispute respecting the outer Continental
Shelf.
(3) The provisions of this section for adoption
of State law as the law of the United States
shall never be interpreted as a basis for claiming
any interest in or jurisdiction on behalf of any
State for any purpose over the seabed and subsoil of the outer Continental Shelf, or the property and natural resources thereof or the revenues therefrom.
(b) Longshore and Harbor Workers’ Compensation Act applicable; definitions
With respect to disability or death of an employee resulting from any injury occurring as
the result of operations 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, compensation shall be payable under the provisions
of the Longshore and Harbor Workers’ Compensation Act [33 U.S.C. 901 et seq.]. For the purposes of the extension of the provisions of the
Longshore and Harbor Workers’ Compensation
Act under this section—
(1) the term ‘‘employee’’ does not include a
master or member of a crew of any vessel, or
an officer or employee of the United States or
any agency thereof or of any State or foreign
government, or of any political subdivision
thereof;
(2) the term ‘‘employer’’ means an employer
any of whose employees are employed in such
operations; and
(3) the term ‘‘United States’’ when used in a
geographical sense includes the outer Continental Shelf and artificial islands and fixed
structures thereon.
(c) National Labor Relations Act applicable
For the purposes of the National Labor Relations Act, as amended [29 U.S.C. 151 et seq.], 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
1 So

in original. Probably should be ‘‘settling’’.

§ 1333

TITLE 43—PUBLIC LANDS

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.
(d) Coast Guard regulations; marking of artificial islands, installations, and other devices;
failure of owner suitably to mark according
to regulations
(1) The Secretary of the Department in which
the Coast Guard is operating shall have authority to promulgate and enforce such reasonable
regulations with respect to lights and other
warning devices, safety equipment, and other
matters relating to the promotion of safety of
life and property on the artificial islands, installations, and other devices referred to in subsection (a) or on the waters adjacent thereto, as
he may deem necessary.
(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 subchapter, and the owner shall pay
the cost of such marking.
(e) Authority of Secretary of the Army to prevent
obstruction to navigation
The authority of the Secretary of the Army to
prevent obstruction to navigation in the navigable waters of the United States is extended to
the artificial islands, installations, and other
devices referred to in subsection (a).
(f) Provisions as nonexclusive
The specific application by this section of certain provisions of law to the subsoil and seabed
of the outer Continental Shelf and the artificial
islands, installations, and other devices referred
to in subsection (a) or to acts or offenses occurring or committed thereon shall not give rise to
any inference that the application to such islands and structures, acts, or offenses of any
other provision of law is not intended.
(Aug. 7, 1953, ch. 345, § 4, 67 Stat. 462; Pub. L.
93–627, § 19(f), Jan. 3, 1975, 88 Stat. 2146; Pub. L.
95–372, title II, § 203, Sept. 18, 1978, 92 Stat. 635;
Pub. L. 98–426, § 27(d)(2), Sept. 28, 1984, 98 Stat.
1654.)
REFERENCES IN TEXT
The Longshore and Harbor Workers’ Compensation
Act, referred to in subsec. (b), is act Mar. 4, 1927, ch.
509, 44 Stat. 1424, as amended, which is classified generally to chapter 18 (§ 901 et seq.) of Title 33, Navigation
and Navigable Waters. For complete classification of
this Act to the Code, see section 901 of Title 33 and
Tables.
The National Labor Relations Act, as amended, referred to in subsec. (c), is act July 5, 1935, ch. 372, 49
Stat. 449, as amended, which is classified generally to
subchapter II (§ 151 et seq.) of chapter 7 of Title 29,
Labor. For complete classification of this Act to the
Code, see section 167 of Title 29 and Tables.

Page 308

‘‘Longshoremen’s and Harbor Workers’ Compensation
Act’’.
1978—Subsec. (a)(1). Pub. L. 95–372, § 203(a), substituted ‘‘, and all installations and other devices permanently or temporarily attached to the seabed, which
may be erected thereon for the purpose of exploring for,
developing, or producing resources therefrom, or any
such installation or other device (other than a ship or
vessel) for the purpose of transporting such resources,’’
for ‘‘and fixed structures which may be erected thereon
for the purpose of exploring for, developing, removing,
and transporting resources therefrom,’’.
Subsec. (a)(2). Pub. L. 95–372, § 203(b), designated existing provisions as subpar. (A) and added subpar. (B).
Subsec. (b). Pub. L. 95–372, § 203(c), (h), redesignated
subsec. (c) as (b) and substituted ‘‘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,’’ for ‘‘described in subsection (b) of
this section,’’. Former subsec. (b), relating to the jurisdiction of United States district courts over cases and
controversies arising out of or in connection with operations conducted on the outer Continental Shelf, was
struck out. See section 1349(b) of this title.
Subsec. (c). Pub. L. 95–372, § 203(d), (h), redesignated
subsec. (d) as (c) and substituted ‘‘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 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’’ for ‘‘artificial island or fixed structure referred to in subsection (a) of
this section shall be deemed to have occurred within
the judicial district of the adjacent State nearest the
place of location of such island or structure’’. Former
subsec. (c) redesignated (b).
Subsec. (d)(1). Pub. L. 95–372, § 203(e)(1), (f), (h), redesignated subsec. (e)(1) as (d)(1), substituted ‘‘Secretary’’
for ‘‘head’’ and ‘‘artificial islands, installations, and
other devices’’ for ‘‘islands and structures’’. Former
subsec. (d) redesignated (c).
Subsec. (d)(2). Pub. L. 95–372, § 203(g), (h), redesignated
subsec. (e)(2) as (d)(2) and substituted ‘‘Secretary’’ for
‘‘head’’ and ‘‘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 subchapter, and the owner shall pay the cost
of such marking’’ for ‘‘such island or structure whenever the owner has failed suitably to mark the same in
accordance with regulations issued hereunder, and the
owner shall pay the cost thereof’’, and struck out provisions which had made failure or refusal to obey any
lawful rules and regulations a misdemeanor punishable
by a fine of not more than $100, with each day during
which such a violation would continue to be deemed a
new offense. Former subsec. (d) redesignated (c).
Subsec. (e). Pub. L. 95–372, § 203(e)(2), (h), redesignated
subsec. (f) as (e) and substituted ‘‘the artificial islands,
installations, and other devices referred to in subsection (a)’’ for ‘‘artificial islands and fixed structures
located on the outer Continental Shelf’’. Former subsec. (e) redesignated (d).
Subsecs. (f), (g). Pub. L. 95–372, § 203(e)(3), (h), redesignated subsec. (g) as (f) and substituted ‘‘the artificial
islands, installations, and other devices’’ for ‘‘the artificial islands and fixed structures’’. Former subsec. (f)
redesignated (e).
1975—Subsec. (a)(2). Pub. L. 93–627 substituted ‘‘now
in effect or hereafter adopted, amended, or repealed’’
for ‘‘as of the effective date of this Act’’ in first sentence.

AMENDMENTS

TRANSFER OF FUNCTIONS

1984—Subsec. (b). Pub. L. 98–426 substituted ‘‘Longshore and Harbor Workers’ Compensation Act’’ for

For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities

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TITLE 43—PUBLIC LANDS

and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 1334. Administration of leasing
(a) Rules and regulations; amendment; cooperation with State agencies; subject matter and
scope of regulations
The Secretary shall administer the provisions
of this subchapter 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 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 subchapter. 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 under 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 seri-

§ 1334

ous 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 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 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 September 18, 1978,
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
from any source 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 subchapter significantly affect the air quality of
any State.

§ 1334

TITLE 43—PUBLIC LANDS

(b) Compliance with regulations as condition for
issuance, continuation, assignment, or other
transfer of leases
The issuance and continuance in effect of any
lease, or of any assignment or other transfer of
any lease, under the provisions of this subchapter shall be conditioned upon compliance
with regulations issued under this subchapter.
(c) Cancellation of nonproducing lease
Whenever the owner of a nonproducing lease
fails to comply with any of the provisions of this
subchapter, or of the lease, or of the regulations
issued under this subchapter, such lease may be
canceled by the Secretary, subject to the right
of judicial review as provided in this subchapter,
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) Cancellation of producing lease
Whenever the owner of any producing lease
fails to comply with any of the provisions of this
subchapter, of the lease, or of the regulations issued under this subchapter, such lease may be
forfeited and canceled by an appropriate proceeding in any United States district court having jurisdiction under the provisions of this subchapter.
(e) Pipeline rights-of-way; forfeiture of grant
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 subchapter, 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 section 1347(b) of this title) 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
grounds 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 subchapter.
(f) Competitive principles governing pipeline operation
(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

Page 310

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 September 18, 1978. This subparapraph 1
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 Energy 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) Rates of production
(1) The leasee 2 shall produce any oil or gas, or
both, obtained pursuant to an approved development and production plan, at rates 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 sustained 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.
1 So
2 So

in original. Probably should be ‘‘subparagraph’’.
in original. Probably should be ‘‘lessee’’.

Page 311

(h) Federal action affecting outer Continental
Shelf; notification; recommended changes
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) Flaring of natural gas
After September 18, 1978, no holder of any oil
and gas lease issued or maintained pursuant to
this subchapter 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.
(j) Cooperative development of common hydrocarbon-bearing areas
(1) Findings
(A) 3 The Congress of the United States finds
that the unrestrained competitive production
of hydrocarbons from a common hydrocarbonbearing geological area underlying the Federal
and State boundary may result in a number of
harmful national effects, including—
(i) the drilling of unnecessary wells, the
installation of unnecessary facilities and
other imprudent operating practices that result in economic waste, environmental damage, and damage to life and property;
(ii) the physical waste of hydrocarbons and
an unnecessary reduction in the amounts of
hydrocarbons that can be produced from certain hydrocarbon-bearing areas; and
(iii) the loss of correlative rights which
can result in the reduced value of national
hydrocarbon resources and disorders in the
leasing of Federal and State resources.
(2) Prevention of harmful effects
The Secretary shall prevent, through the cooperative development of an area, the harmful
effects of unrestrained competitive production
of hydrocarbons from a common hydrocarbonbearing area underlying the Federal and State
boundary.
(Aug. 7, 1953, ch. 345, § 5, 67 Stat. 464; Pub. L.
95–372, title II, § 204, Sept. 18, 1978, 92 Stat. 636;
Pub. L. 101–380, title VI, § 6004(a), Aug. 18, 1990,
104 Stat. 558; Pub. L. 109–58, title III, § 321(a),
Aug. 8, 2005, 119 Stat. 694.)
REFERENCES IN TEXT
The Clean Air Act, referred to in subsec. (a)(8), is act
July 14, 1955, ch. 360, 69 Stat. 322, as amended, which is
classified generally to chapter 85 (§ 7401 et seq.) of Title
42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note
set out under section 7401 of Title 42 and Tables.
AMENDMENTS
2005—Subsec. (a)(5). Pub. L. 109–58 inserted ‘‘from any
source’’ after ‘‘oil and gas’’.
3 So

§ 1334

TITLE 43—PUBLIC LANDS

in original. No subpar. (B) has been enacted.

1990—Subsec. (j). Pub. L. 101–380 added subsec. (j).
1978—Subsec. (a). Pub. L. 95–372 expanded provisions
formerly contained in subsec. (a)(1) so as to include the
enforcement of safety and environmental laws and regulations, consultation with the Attorney General and
the Federal Trade Commission, and regulations for the
suspension or temporary prohibition of any operation
or activity including production, the cancellation of
leases or permits, the prompt and efficient exploration
and development of a lease area, and compliance with
the national ambient air quality standards to the extent that activities authorized significantly affect the
air quality of any State.
Subsec. (b). Pub. L. 95–372 redesignated as subsec. (b)
provisions formerly contained in subsec. (a)(2) conditioning the issuance and continuation of leases or of assignments or other transfers of leases upon compliance
with regulations, and struck out provisions that had
set a penalty of a fine of not more than $2,000 or imprisonment for not more than six months or both for the
knowing and willful violation of rules or regulations
promulgated by the Secretary. See section 1350 of this
title.
Subsec. (c). Pub. L. 95–372 redesignated as subsec. (c)
provisions formerly contained in subsec. (b)(1) covering
the cancellation of nonproducing leases for failure of
the owner to comply with any of the provisions of this
subchapter, or of the lease, or of the regulations issued
under this subchapter.
Subsec. (d). Pub. L. 95–372 redesignated as subsec. (d)
provisions formerly contained in subsec. (b)(2) covering
the cancellation and forfeiture of producing leases for
failure of the owner to comply with any of the provisions of this subchapter, the lease, or regulations promulgated under this subchapter.
Subsec. (e). Pub. L. 95–372 redesignated as subsec. (e)
provisions formerly contained in subsec. (c) relating to
pipeline rights-of-way and inserted provisions relating
to regulations prescribed by the Secretary of Transportation and assurances of maximum environmental protection through the use of the best available and safest
technologies including the safest practices for pipeline
burial, and substituted references to the Federal Energy Regulatory Commission and the Secretary of Energy for existing references to the Federal Power Commission and the Interstate Commerce Commission.
Subsecs. (f) to (i). Pub. L. 95–372 added subsecs. (f) to
(i).
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.
TRANSFER OF FUNCTIONS
Functions vested in, or delegated to, Secretary of Energy and Department of Energy under or with respect
to subsec. (g)(2) of this section, transferred to, and vested in, Secretary of the Interior, by section 100 of Pub.
L. 97–257, 96 Stat. 841, set out as a note under section
7152 of Title 42, The Public Health and Welfare.
Functions of Secretary of the Interior to promulgate
regulations under this subchapter which relate to fostering of competition for Federal leases, implementation of alternative bidding systems authorized for
award of Federal leases, establishment of diligence requirements for operations conducted on Federal leases,
setting of rates for production of Federal leases, and
specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests
taken in kind, transferred to Secretary of Energy by
section 7152(b) of Title 42. Section 7152(b) of Title 42 was
repealed by Pub. L. 97–100, title II, § 201, Dec. 23, 1981, 95
Stat. 1407, and functions of Secretary of Energy returned to Secretary of the Interior. See House Report
No. 97–315, pp. 25, 26, Nov. 5, 1981.
WEST DELTA FIELD
Pub. L. 101–380, title VI, § 6004(b), Aug. 18, 1990, 104
Stat. 558, provided that: ‘‘Section 5(j) of the Outer Con-

§ 1335

TITLE 43—PUBLIC LANDS

tinental Shelf Lands Act [43 U.S.C. 1334(j)], as added by
this section, shall not be applicable with respect to
Blocks 17 and 18 of the West Delta Field offshore Louisiana.’’
KEY LARGO CORAL REEF PRESERVE
Secretary of the Interior to prescribe rules and regulations governing the protection and conservation of
the coral and other mineral resources in the area designated Key Largo Coral Reef Preserve, see Proc. No.
3339, Mar. 15, 1960, 25 F.R. 2352, set out as a note under
section 320101 of Title 54, National Park Service and
Related Programs.

§ 1335. Validation and maintenance of prior
leases
(a) Requirements for validation
The provisions of this section shall apply to
any mineral lease covering submerged lands of
the outer Continental Shelf issued by any State
(including any extension, renewal, or replacement thereof heretofore granted pursuant to
such lease or under the laws of such State) if—
(1) such lease, or a true copy thereof, is filed
with the Secretary by the lessee or his duly
authorized agent within ninety days from August 7, 1953, or within such further period or
periods as provided in section 1336 of this title
or as may be fixed from time to time by the
Secretary;
(2) such lease was issued prior to December
21, 1948, and would have been on June 5, 1950,
in force and effect in accordance with its
terms and provisions and the law of the State
issuing it had the State had the authority to
issue such lease;
(3) there is filed with the Secretary, within
the period or periods specified in paragraph (1)
of this subsection, (A) a certificate issued by
the State official or agency having jurisdiction over such lease stating that it would have
been in force and effect as required by the provisions of paragraph (2) of this subsection, or
(B) in the absence of such certificate, evidence
in the form of affidavits, receipts, canceled
checks, or other documents that may be required by the Secretary, sufficient to prove
that such lease would have been so in force
and effect;
(4) except as otherwise provided in section
1336 of this title hereof, all rents, royalties,
and other sums payable under such lease between June 5, 1950, and August 7, 1953, which
have not been paid in accordance with the provisions thereof, or to the Secretary or to the
Secretary of the Navy, are paid to the Secretary within the period or periods specified in
paragraph (1) of this subsection, and all rents,
royalties, and other sums payable under such
lease after August 7, 1953, are paid to the Secretary, who shall deposit such payments in the
Treasury in accordance with section 1338 of
this title;
(5) the holder of such lease certifies that
such lease shall continue to be subject to the
overriding royalty obligations existing on August 7, 1953;
(6) such lease was not obtained by fraud or
misrepresentation;
(7) such lease, if issued on or after June 23,
1947, was issued upon the basis of competitive
bidding;

Page 312

(8) such lease provides for a royalty to the
lessor on oil and gas of not less than 121⁄2 per
centum and on sulphur of not less than 5 per
centum in amount or value of the production
saved, removed, or sold from the lease, or, in
any case in which the lease provides for a lesser royalty, the holder thereof consents in writing, filed with the Secretary, to the increase
of the royalty to the minimum herein specified;
(9) the holder thereof pays to the Secretary
within the period or periods specified in paragraph (1) of this subsection an amount equivalent to any severance, gross production, or occupation taxes imposed by the State issuing
the lease on the production from the lease,
less the State’s royalty interest in such production, between June 5, 1950, and August 7,
1953 and not heretofore paid to the State, and
thereafter pays to the Secretary as an additional royalty on the production from the
lease, less the United States’ royalty interest
in such production, a sum of money equal to
the amount of the severance, gross production,
or occupation taxes which would have been
payable on such production to the State issuing the lease under its laws as they existed on
August 7, 1953;
(10) such lease will terminate within a period
of not more than five years from August 7, 1953
in the absence of production or operations for
drilling, or, in any case in which the lease provides for a longer period, the holder thereof
consents in writing, filed with the Secretary,
to the reduction of such period so that it will
not exceed the maximum period herein specified; and
(11) the holder of such lease furnishes such
surety bond, if any, as the Secretary may require and complies with such other reasonable
requirements as the Secretary may deem necessary to protect the interests of the United
States.
(b) Conduct of operations under lease; sulphur
rights
Any person holding a mineral lease, which as
determined by the Secretary meets the requirements of subsection (a) of this section, may continue to maintain such lease, and may conduct
operations thereunder, in accordance with (1) its
provisions as to the area, the minerals covered,
rentals and, subject to the provisions of paragraphs (8)–(10) of subsection (a) of this section,
as to royalties and as to the term thereof and of
any extensions, renewals, or replacements authorized therein or heretofore authorized by the
laws of the State issuing such lease, or, if oil or
gas was not being produced in paying quantities
from such lease on or before December 11, 1950,
or if production in paying quantities has ceased
since June 5, 1950, or if the primary term of such
lease has expired since December 11, 1950, then
for a term from August 7, 1953 equal to the term
remaining unexpired on December 11, 1950, under
the provisions of such lease or any extensions,
renewals, or replacements authorized therein, or
heretofore authorized by the laws of such State,
and (2) such regulations as the Secretary may
under section 1334 of this title prescribe within
ninety days after making his determination

Page 313

§ 1336

TITLE 43—PUBLIC LANDS

that such lease meets the requirements of subsection (a) of this section: Provided, however,
That any rights to sulphur under any lease
maintained under the provisions of this subsection shall not extend beyond the primary
term of such lease or any extension thereof
under the provisions of this subsection unless
sulphur is being produced in paying quantities
or drilling, well reworking, plant construction,
or other operations for the production of sulphur, as approved by the Secretary, are being
conducted on the area covered by such lease on
the date of expiration of such primary term or
extension: Provided further, That if sulphur is
being produced in paying quantities on such
date, then such rights shall continue to be maintained in accordance with such lease and the
provisions of this subchapter: Provided further,
That, if the primary term of a lease being maintained under this subsection has expired prior to
August 7, 1953 and oil or gas is being produced in
paying quantities on such date, then such rights
to sulphur as the lessee may have under such
lease shall continue for twenty-four months
from August 7, 1953 and as long thereafter as sulphur is produced in paying quantities, or drilling, well working, plant construction, or other
operations for the production of sulphur, as approved by the Secretary, are being conducted on
the area covered by the lease.
(c) Nonwaiver of United States claims
The permission granted in subsection (b) of
this section shall not be construed to be a waiver of such claims, if any, as the United States
may have against the lessor or the lessee or any
other person respecting sums payable or paid for
or under the lease, or respecting activities conducted under the lease, prior to August 7, 1953.
(d) Judicial review of determination
Any person complaining of a negative determination by the Secretary of the Interior under
this section may have such determination reviewed by the United States District Court for
the District of Columbia by filing a petition for
review within sixty days after receiving notice
of such action by the Secretary.
(e) Lands beneath navigable waters
In the event any lease maintained under this
section covers lands beneath navigable waters,
as that term is used in the Submerged Lands
Act [43 U.S.C. 1301 et seq.], as well as lands of
the outer Continental Shelf, the provisions of
this section shall apply to such lease only insofar as it covers lands of the outer Continental
Shelf.
(Aug. 7, 1953, ch. 345, § 6, 67 Stat. 465.)
REFERENCES IN TEXT
The Submerged Lands Act, referred to in subsec. (e),
is act May 22, 1953, ch. 65, 67 Stat. 29, which is classified
generally to subchapters I (§ 1301 et seq.) and II (§ 1311
et seq.) of this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 1301 of this title and Tables.
TRANSFER OF FUNCTIONS
Functions of Secretary of the Interior to promulgate
regulations under this subchapter which relate to fostering of competition for Federal leases, implementation of alternative bidding systems authorized for

award of Federal leases, establishment of diligence requirements for operations conducted on Federal leases,
setting of rates for production of Federal leases, and
specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests
taken in kind, transferred to Secretary of Energy by
section 7152(b) of Title 42, The Public Health and Welfare. Section 7152(b) of Title 42 was repealed by Pub. L.
97–100, title II, § 201, Dec. 23, 1981, 95 Stat. 1407, and functions of Secretary of Energy returned to Secretary of
the Interior. See House Report No. 97–315, pp. 25, 26,
Nov. 5, 1981.

§ 1336. Controversies over jurisdiction; agreements; payments; final settlement or adjudication; approval of notice concerning oil
and gas operations in Gulf of Mexico
In the event of a controversy between the
United States and a State as to whether or not
lands are subject to the provisions of this subchapter, the Secretary is authorized, notwithstanding the provisions of section 1335(a) and (b)
of this title and with the concurrence of the Attorney General of the United States, to negotiate and enter into agreements with the State,
its political subdivision or grantee or a lessee
thereof, respecting operations under existing
mineral leases and payment and impounding of
rents, royalties, and other sums payable thereunder, or with the State, its political subdivision or grantee, respecting the issuance or nonissuance of new mineral leases pending the settlement or adjudication of the controversy. The
authorization contained in the preceding sentence of this section shall not be construed to be
a limitation upon the authority conferred on the
Secretary in other sections of this subchapter.
Payments made pursuant to such agreement, or
pursuant to any stipulation between the United
States and a State, shall be considered as compliance with section 1335(a)(4) of this title. Upon
the termination of such agreement or stipulation by reason of the final settlement or adjudication of such controversy, if the lands subject
to any mineral lease are determined to be in
whole or in part lands subject to the provisions
of this subchapter, the lessee, if he has not already done so, shall comply with the requirements of section 1335(a) of this title, and thereupon the provisions of section 1335(b) of this
title shall govern such lease. The notice concerning ‘‘Oil and Gas Operations in the Submerged Coastal Lands of the Gulf of Mexico’’ issued by the Secretary on December 11, 1950 (15
F.R. 8835), as amended by the notice dated January 26, 1951 (16 F.R. 953), and as supplemented by
the notices dated February 2, 1951 (16 F.R. 1203),
March 5, 1951 (16 F.R. 2195), April 23, 1951 (16 F.R.
3623), June 25, 1951 (16 F.R. 6404), August 22, 1951
(16 F.R. 8720), October 24, 1951 (16 F.R. 10998), December 21, 1951 (17 F.R. 43), March 25, 1952 (17
F.R. 2821), June 26, 1952 (17 F.R. 5833), and December 24, 1952 (18 F.R. 48), respectively, is approved and confirmed.
(Aug. 7, 1953, ch. 345, § 7, 67 Stat. 467.)
TRANSFER OF FUNCTIONS
Functions of Secretary of the Interior to promulgate
regulations under this subchapter which relate to fostering of competition for Federal leases, implementation of alternative bidding systems authorized for
award of Federal leases, establishment of diligence re-

§ 1337

TITLE 43—PUBLIC LANDS

quirements for operations conducted on Federal leases,
setting of rates for production of Federal leases, and
specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests
taken in kind, transferred to Secretary of Energy by
section 7152(b) of Title 42, The Public Health and Welfare. Section 7152(b) of Title 42 was repealed by Pub. L.
97–100, title II, § 201, Dec. 23, 1981, 95 Stat. 1407, and functions of Secretary of Energy returned to Secretary of
the Interior. See House Report No. 97–315, pp. 25, 26,
Nov. 5, 1981.

§ 1337. Leases, easements, and rights-of-way on
the outer Continental Shelf
(a) Oil and gas leases; award to highest responsible qualified bidder; method of bidding;
royalty relief; Congressional consideration of
bidding system; notice
(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 1335 of
this title. 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 121⁄2 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 121⁄2
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;
(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 121⁄2 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;
(H) cash bonus bid with royalty at no less
than 12 and 1⁄2 per centum fixed by the Sec-

Page 314

retary in amount or value of production saved,
removed, or sold, and with suspension of royalties for a period, volume, or value of production determined by the Secretary, which suspensions may vary based on the price of production from the lease; or
(I) 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 subchapter,
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)(A) 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.
(B) In the Western and Central Planning Areas
of the Gulf of Mexico and the portion of the
Eastern Planning Area of the Gulf of Mexico encompassing whole lease blocks lying west of 87
degrees, 30 minutes West longitude and in the
Planning Areas offshore Alaska, the Secretary
may, in order to—
(i) promote development or increased production on producing or non-producing leases;
or
(ii) encourage production of marginal resources on producing or non-producing leases;
through primary, secondary, or tertiary recovery means, reduce or eliminate any royalty or
net profit share set forth in the lease(s). With
the lessee’s consent, the Secretary may make
other modifications to the royalty or net profit
share terms of the lease in order to achieve
these purposes.
(C)(i) Notwithstanding the provisions of this
subchapter other than this subparagraph, with
respect to any lease or unit in existence on November 28, 1995, meeting the requirements of
this subparagraph, no royalty payments shall be
due on new production, as defined in clause (iv)
of this subparagraph, from any lease or unit located in water depths of 200 meters or greater in
the Western and Central Planning Areas of the
Gulf of Mexico, including that portion of the
Eastern Planning Area of the Gulf of Mexico encompassing whole lease blocks lying west of 87
degrees, 30 minutes West longitude, until such
volume of production as determined pursuant to
clause (ii) has been produced by the lessee.
(ii) Upon submission of a complete application
by the lessee, the Secretary shall determine
within 180 days of such application whether new
production from such lease or unit would be economic in the absence of the relief from the requirement to pay royalties provided for by
clause (i) of this subparagraph. In making such
determination, the Secretary shall consider the
increased technological and financial risk of

Page 315

TITLE 43—PUBLIC LANDS

deep water development and all costs associated
with exploring, developing, and producing from
the lease. The lessee shall provide information
required for a complete application to the Secretary prior to such determination. The Secretary shall clearly define the information required for a complete application under this section. Such application may be made on the basis
of an individual lease or unit. If the Secretary
determines that such new production would be
economic in the absence of the relief from the
requirement to pay royalties provided for by
clause (i) of this subparagraph, the provisions of
clause (i) shall not apply to such production. If
the Secretary determines that such new production would not be economic in the absence of the
relief from the requirement to pay royalties provided for by clause (i), the Secretary must determine the volume of production from the lease or
unit on which no royalties would be due in order
to make such new production economically viable; except that for new production as defined in
clause (iv)(I), in no case will that volume be less
than 17.5 million barrels of oil equivalent in
water depths of 200 to 400 meters, 52.5 million
barrels of oil equivalent in 400–800 meters of
water, and 87.5 million barrels of oil equivalent
in water depths greater than 800 meters. Redetermination of the applicability of clause (i)
shall be undertaken by the Secretary when requested by the lessee prior to the commencement of the new production and upon significant
change in the factors upon which the original
determination was made. The Secretary shall
make such redetermination within 120 days of
submission of a complete application. The Secretary may extend the time period for making
any determination or redetermination under
this clause for 30 days, or longer if agreed to by
the applicant, if circumstances so warrant. The
lessee shall be notified in writing of any determination or redetermination and the reasons for
and assumptions used for such determination.
Any determination or redetermination under
this clause shall be a final agency action. The
Secretary’s determination or redetermination
shall be judicially reviewable under section 702
of title 5, only for actions filed within 30 days of
the Secretary’s determination or redetermination.
(iii) In the event that the Secretary fails to
make the determination or redetermination
called for in clause (ii) upon application by the
lessee within the time period, together with any
extension thereof, provided for by clause (ii), no
royalty payments shall be due on new production as follows:
(I) For new production, as defined in clause
(iv)(I) of this subparagraph, no royalty shall
be due on such production according to the
schedule of minimum volumes specified in
clause (ii) of this subparagraph.
(II) For new production, as defined in clause
(iv)(II) of this subparagraph, no royalty shall
be due on such production for one year following the start of such production.
(iv) For purposes of this subparagraph, the
term ‘‘new production’’ is—
(I) any production from a lease from which
no royalties are due on production, other than
test production, prior to November 28, 1995; or

§ 1337

(II) any production resulting from lease development activities pursuant to a Development Operations Coordination Document, or
supplement thereto that would expand production significantly beyond the level anticipated
in the Development Operations Coordination
Document, approved by the Secretary after
November 28, 1995.
(v) During the production of volumes determined pursuant to clauses 1 (ii) or (iii) of this
subparagraph, in any year during which the
arithmetic average of the closing prices on the
New York Mercantile Exchange for light sweet
crude oil exceeds $28.00 per barrel, any production of oil will be subject to royalties at the
lease stipulated royalty rate. Any production
subject to this clause shall be counted toward
the production volume determined pursuant to
clause (ii) or (iii). Estimated royalty payments
will be made if such average of the closing prices
for the previous year exceeds $28.00. After the
end of the calendar year, when the new average
price can be calculated, lessees will pay any royalties due, with interest but without penalty, or
can apply for a refund, with interest, of any
overpayment.
(vi) During the production of volumes determined pursuant to clause (ii) or (iii) of this subparagraph, in any year during which the arithmetic average of the closing prices on the New
York Mercantile Exchange for natural gas exceeds $3.50 per million British thermal units,
any production of natural gas will be subject to
royalties at the lease stipulated royalty rate.
Any production subject to this clause shall be
counted toward the production volume determined pursuant to clauses 1 (ii) or (iii). Estimated royalty payments will be made if such average of the closing prices for the previous year
exceeds $3.50. After the end of the calendar year,
when the new average price can be calculated,
lessees will pay any royalties due, with interest
but without penalty, or can apply for a refund,
with interest, of any overpayment.
(vii) The prices referred to in clauses (v) and
(vi) of this subparagraph shall be changed during
any calendar year after 1994 by the percentage,
if any, by which the implicit price deflator for
the gross domestic product changed during the
preceding calendar year.
(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
1 So

in original. Probably should be ‘‘clause’’.

§ 1337

TITLE 43—PUBLIC LANDS

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 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 committee 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 Sen-

Page 316

ate 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 September 18, 1978, the Secretary may, in
order to obtain statistical information to determine which bidding alternatives will best accomplish the purposes and policies of this subchapter, 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 subchapter.
(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 September 18, 1978, unless
the Secretary determines that the requirements
set forth in this subparagraph are inconsistent
with the purposes and policies of this subchapter.
(6) At least ninety days prior to notice of any
lease sale under 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 the event of any
dispute between the United States and a lessee
concerning the calculation 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

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size and a real 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 shall submit to the Congress
and publish in the Federal Register a notice—
(A) identifying any bidding system which
will be utilized for 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.
(b) Terms and provisions of oil and gas leases
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
subchapter;
(5) provide for suspension or cancellation of
the lease during the initial lease term or
thereafter pursuant to section 1334 of this
title;
(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, conden-

§ 1337

sate, 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 the
Emergency Petroleum Allocation Act of 1973 2
[15 U.S.C. 751 et seq.].
(c) Antitrust review of lease sales
(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 with the Federal Trade Commission, may agree to a shorter review period.
(2) The Attorney General may, in consultation
with the Federal Trade Commission, conduct
such antitrust review on the likely effects 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) Due diligence
No bid for a lease may be submitted if the Secretary finds, after notice and hearing, that the
bidder is not meeting due diligence requirements on other leases.
2 See

References in Text note below.

§ 1337

TITLE 43—PUBLIC LANDS

(e) Secretary’s approval for sale, exchange, assignment, or other transfer of leases
No lease issued under this subchapter may 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) Antitrust immunity or defenses
Nothing in this subchapter 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) Leasing of lands within three miles of seaward boundaries of coastal States; deposit of
revenues; distribution of revenues
(1) At the time of soliciting nominations for
the leasing of lands containing tracts wholly or
partially within three nautical miles of the seaward boundary of any coastal State, and subsequently as new information is obtained or developed by the Secretary, the Secretary shall, in
addition to the information required by section
1352 of this title, provide the Governor of such
State—
(A) an identification and schedule of the
areas and regions proposed to be offered for
leasing;
(B) at the request of the Governor of such
State, all information from all sources concerning the geographical, geological, and ecological characteristics of such tracts;
(C) an estimate of the oil and gas reserves in
the areas proposed for leasing; and
(D) at the request of the Governor of such
State, an identification of any field, geological
structure, or trap located wholly or partially
within three nautical miles of the seaward
boundary of such coastal State, including all
information relating to the entire field, geological structure, or trap.
The provisions of the first sentence of subsection (c) and the provisions of subsections
(e)–(h) of section 1352 of this title shall be applicable to the release by the Secretary of any information to any coastal State under this paragraph. In addition, the provisions of subsections
(c) and (e)–(h) of section 1352 of this title shall
apply in their entirety to the release by the Secretary to any coastal State of any information
relating to Federal lands beyond three nautical
miles of the seaward boundary of such coastal
State.
(2) Notwithstanding any other provision of
this subchapter, the Secretary shall deposit into
a separate account in the Treasury of the United
States all bonuses, rents, and royalties, and
other revenues (derived from any bidding system
authorized under subsection (a)(1)), excluding
Federal income and windfall profits taxes, and
derived from any lease issued after September
18, 1978 of any Federal tract which lies wholly
(or, in the case of Alaska, partially until seven
years from the date of settlement of any boundary dispute that is the subject of an agreement
under section 1336 of this title entered into prior
to January 1, 1986 or until April 15, 1993 with respect to any other tract) within three nautical

Page 318

miles of the seaward boundary of any coastal
State, or, (except as provided above for Alaska)
in the case where a Federal tract lies partially
within three nautical miles of the seaward
boundary, a percentage of bonuses, rents, royalties, and other revenues (derived from any bidding system authorized under subsection (a)(1)),
excluding Federal income and windfall profits
taxes, and derived from any lease issued after
September 18, 1978 of such tract equal to the percentage of surface acreage of the tract that lies
within such three nautical miles. Except as provided in paragraph (5) of this subsection, not
later than the last business day of the month
following the month in which those revenues are
deposited in the Treasury, the Secretary shall
transmit to such coastal State 27 percent of
those revenues, together with all accrued interest thereon. The remaining balance of such revenues shall be transmitted simultaneously to the
miscellaneous receipts account of the Treasury
of the United States.
(3) Whenever the Secretary or the Governor of
a coastal State determines that a common potentially hydrocarbon-bearing area may underlie the Federal and State boundary, the Secretary or the Governor shall notify the other
party in writing of his determination and the
Secretary shall provide to the Governor notice
of the current and projected status of the tract
or tracts containing the common potentially hydrocarbon-bearing area. If the Secretary has
leased or intends to lease such tract or tracts,
the Secretary and the Governor of the coastal
State may enter into an agreement to divide the
revenues from production of any common potentially hydrocarbon-bearing area, by unitization
or other royalty sharing agreement, pursuant to
existing law. If the Secretary and the Governor
do not enter into an agreement, the Secretary
may nevertheless proceed with the leasing of the
tract or tracts. Any revenues received by the
United States under such an agreement shall be
subject to the requirements of paragraph (2).
(4) The deposits in the Treasury account described in this section shall be invested by the
Secretary of the Treasury in securities backed
by the full faith and credit of the United States
having maturities suitable to the needs of the
account and yielding the highest reasonably
available interest rates as determined by the
Secretary of the Treasury.
(5)(A) When there is a boundary dispute between the United States and a State which is
subject to an agreement under section 1336 of
this title, the Secretary shall credit to the account established pursuant to such agreement
all bonuses, rents, and royalties, and other revenues (derived from any bidding system authorized under subsection (a)(1)), excluding Federal
income and windfall profits taxes, and derived
from any lease issued after September 18, 1978 of
any Federal tract which lies wholly or partially
within three nautical miles of the seaward
boundary asserted by the State, if that money
has not otherwise been deposited in such account. Proceeds of an escrow account established pursuant to an agreement under section
1336 of this title shall be distributed as follows:
(i) Twenty-seven percent of all bonuses,
rents, and royalties, and other revenues (de-

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TITLE 43—PUBLIC LANDS

rived from any bidding system authorized
under subsection (a)(1)), excluding Federal income and windfall profits taxes, and derived
from any lease issued after September 18, 1978,
of any tract which lies wholly within three
nautical miles of the seaward boundary asserted by the Federal Government in the
boundary dispute, together with all accrued
interest thereon, shall be paid to the State either—
(I) within thirty days of December 1, 1987,
or
(II) by the last business day of the month
following the month in which those revenues
are deposited in the Treasury, whichever
date is later.
(ii) Upon the settlement of a boundary dispute which is subject to a section 1336 of this
title agreement between the United States and
a State, the Secretary shall pay to such State
any additional moneys due such State from
amounts deposited in or credited to the escrow
account. If there is insufficient money deposited in the escrow account, the Secretary shall
transmit, from any revenues derived from any
lease of Federal lands under this subchapter,
the remaining balance due such State in accordance with the formula set forth in section
8004(b)(1)(B) of the Outer Continental Shelf
Lands Act Amendments of 1985.
(B) This paragraph applies to all Federal oil
and gas lease sales, under this subchapter, including joint lease sales, occurring after September 18, 1978.
(6) This section shall be deemed to take effect
on October 1, 1985, for purposes of determining
the amounts to be deposited in the separate account and the States’ shares described in paragraph (2).
(7) When the Secretary leases any tract which
lies wholly or partially within three miles of the
seaward boundary of two or more States, the
revenues from such tract shall be distributed as
otherwise provided by this section, except that
the State’s share of such revenues that would
otherwise result under this section shall be divided equally among such States.
(h) State claims to jurisdiction over submerged
lands
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.
(i) Sulphur leases; award to highest bidder;
method of bidding
In order to meet the urgent need for further
exploration and development of the sulphur deposits in the submerged lands of the outer Continental Shelf, the Secretary is authorized to
grant to the qualified persons offering the highest cash bonuses on a basis of competitive bidding sulphur leases on submerged lands of the
outer Continental Shelf, which are not covered
by leases which include sulphur and meet the requirements of section 1335(a) of this title, and
which sulphur leases shall be offered for bid by
sealed bids and granted on separate leases from
oil and gas leases, and for a separate consideration, and without priority or preference accorded to oil and gas lessees on the same area.

§ 1337

(j) Terms and provisions of sulphur leases
A sulphur lease issued by the Secretary pursuant to this section shall (1) cover an area of such
size and dimensions as the Secretary may determine, (2) be for a period of not more than ten
years and so long thereafter as sulphur may be
produced from the area in paying quantities or
drilling, well reworking, plant construction, or
other operations for the production of sulphur,
as approved by the Secretary, are conducted
thereon, (3) require the payment to the United
States of such royalty as may be specified in the
lease but not less than 5 per centum of the gross
production or value of the sulphur at the wellhead, and (4) contain such rental provisions and
such other terms and provisions as the Secretary may by regulation prescribe at the time
of offering the area for lease.
(k) Other mineral leases; award to highest bidder; terms and conditions; agreements for
use of resources for shore protection, beach
or coastal wetlands restoration, or other
projects
(1) The Secretary is authorized to grant to the
qualified persons offering the highest cash bonuses on a basis of competitive bidding leases of
any mineral other than oil, gas, and sulphur in
any area of the outer Continental Shelf not then
under lease for such mineral upon such royalty,
rental, and other terms and conditions as the
Secretary may prescribe at the time of offering
the area for lease.
(2)(A) Notwithstanding paragraph (1), the Secretary may negotiate with any person an agreement for the use of Outer Continental Shelf
sand, gravel and shell resources—
(i) for use in a program of, or project for,
shore protection, beach restoration, or coastal
wetlands restoration undertaken by a Federal,
State, or local government agency; or
(ii) for use in a construction project, other
than a project described in clause (i), that is
funded in whole or in part by or authorized by
the Federal Government.
(B) In carrying out a negotiation under this
paragraph, the Secretary may assess a fee based
on an assessment of the value of the resources
and the public interest served by promoting development of the resources. No fee shall be assessed directly or indirectly under this subparagraph against a Federal, State, or local government agency.
(C) The Secretary may, through this paragraph and in consultation with the Secretary of
Commerce, seek to facilitate projects in the
coastal zone, as such term is defined in section
1453 of title 16, that promote the policy set forth
in section 1452 of title 16.
(D) Any Federal agency which proposes to
make use of sand, gravel and shell resources
subject to the provisions of this subchapter shall
enter into a Memorandum of Agreement with
the Secretary concerning the potential use of
those resources. The Secretary shall notify the
Committee on Merchant Marine and Fisheries
and the Committee on Natural Resources of the
House of Representatives and the Committee on
Energy and Natural Resources of the Senate on
any proposed project for the use of those resources prior to the use of those resources.

§ 1337

TITLE 43—PUBLIC LANDS

(l) Publication of notices of sale and terms of
bidding
Notice of sale of leases, and the terms of bidding, authorized by this section shall be published at least thirty days before the date of sale
in accordance with rules and regulations promulgated by the Secretary.
(m) Disposition of revenues
All moneys paid to the Secretary for or under
leases granted pursuant to this section shall be
deposited in the Treasury in accordance with
section 1338 of this title.
(n) Issuance of lease as nonprejudicial to ultimate settlement or adjudication of controversies
The issuance of any lease by the Secretary
pursuant to this subchapter, or the making of
any interim arrangements by the Secretary pursuant to section 1336 of this title shall not prejudice the ultimate settlement or adjudication of
the question as to whether or not the area involved is in the outer Continental Shelf.
(o) Cancellation of leases for fraud
The Secretary may cancel any lease obtained
by fraud or misrepresentation.
(p) Leases, easements, or rights-of-way for energy and related purposes
(1) In general
The Secretary, in consultation with the Secretary of the Department in which the Coast
Guard is operating and other relevant departments and agencies of the Federal Government, may grant a lease, easement, or rightof-way on the outer Continental Shelf for activities not otherwise authorized in this subchapter, the Deepwater Port Act of 1974 (33
U.S.C. 1501 et seq.), the Ocean Thermal Energy
Conversion Act of 1980 (42 U.S.C. 9101 et seq.),
or other applicable law, if those activities—
(A) support exploration, development, production, or storage of oil or natural gas, except that a lease, easement, or right-of-way
shall not be granted in an area in which oil
and gas preleasing, leasing, and related activities are prohibited by a moratorium;
(B) support transportation of oil or natural
gas, excluding shipping activities;
(C) produce or support production, transportation, or transmission of energy from
sources other than oil and gas; or
(D) use, for energy-related purposes or for
other authorized marine-related purposes,
facilities currently or previously used for activities authorized under this subchapter,
except that any oil and gas energy-related
uses shall not be authorized in areas in
which oil and gas preleasing, leasing, and related activities are prohibited by a moratorium.
(2) Payments and revenues
(A) The Secretary shall establish royalties,
fees, rentals, bonuses, or other payments to
ensure a fair return to the United States for
any lease, easement, or right-of-way granted
under this subsection.
(B) The Secretary shall provide for the payment of 27 percent of the revenues received by

Page 320

the Federal Government as a result of payments under this section from projects that
are located wholly or partially within the area
extending three nautical miles seaward of
State submerged lands. Payments shall be
made based on a formula established by the
Secretary by rulemaking no later than 180
days after August 8, 2005, that provides for
equitable distribution, based on proximity to
the project, among coastal states that have a
coastline that is located within 15 miles of the
geographic center of the project.
(3) Competitive or noncompetitive basis
Except with respect to projects that meet
the criteria established under section 388(d) of
the Energy Policy Act of 2005, the Secretary
shall issue a lease, easement, or right-of-way
under paragraph (1) on a competitive basis unless the Secretary determines after public notice of a proposed lease, easement, or right-ofway that there is no competitive interest.
(4) Requirements
The Secretary shall ensure that any activity
under this subsection is carried out in a manner that provides for—
(A) safety;
(B) protection of the environment;
(C) prevention of waste;
(D) conservation of the natural resources
of the outer Continental Shelf;
(E) coordination with relevant Federal
agencies;
(F) protection of national security interests of the United States;
(G) protection of correlative rights in the
outer Continental Shelf;
(H) a fair return to the United States for
any lease, easement, or right-of-way under
this subsection;
(I) prevention of interference with reasonable uses (as determined by the Secretary) of
the exclusive economic zone, the high seas,
and the territorial seas;
(J) consideration of—
(i) the location of, and any schedule relating to, a lease, easement, or right-ofway for an area of the outer Continental
Shelf; and
(ii) any other use of the sea or seabed, including use for a fishery, a sealane, a potential site of a deepwater port, or navigation;
(K) public notice and comment on any proposal submitted for a lease, easement, or
right-of-way under this subsection; and
(L) oversight, inspection, research, monitoring, and enforcement relating to a lease,
easement, or right-of-way under this subsection.
(5) Lease duration, suspension, and cancellation
The Secretary shall provide for the duration,
issuance, transfer, renewal, suspension, and
cancellation of a lease, easement, or right-ofway under this subsection.
(6) Security
The Secretary shall require the holder of a
lease, easement, or right-of-way granted under
this subsection to—

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TITLE 43—PUBLIC LANDS

(A) furnish a surety bond or other form of
security, as prescribed by the Secretary;
(B) comply with such other requirements
as the Secretary considers necessary to protect the interests of the public and the
United States; and
(C) provide for the restoration of the lease,
easement, or right-of-way.
(7) Coordination and consultation with affected State and local governments
The Secretary shall provide for coordination
and consultation with the Governor of any
State or the executive of any local government that may be affected by a lease, easement, or right-of-way under this subsection.
(8) Regulations
Not later than 270 days after August 8, 2005,
the Secretary, in consultation with the Secretary of Defense, the Secretary of the Department in which the Coast Guard is operating,
the Secretary of Commerce, heads of other relevant departments and agencies of the Federal
Government, and the Governor of any affected
State, shall issue any necessary regulations to
carry out this subsection.
(9) Effect of subsection
Nothing in this subsection displaces, supersedes, limits, or modifies the jurisdiction, responsibility, or authority of any Federal or
State agency under any other Federal law.
(10) Applicability
This subsection does not apply to any area
on the outer Continental Shelf within the exterior boundaries of any unit of the National
Park System, National Wildlife Refuge System, or National Marine Sanctuary System, or
any National Monument.
(Aug. 7, 1953, ch. 345, § 8, 67 Stat. 468; Pub. L.
95–372, title II, § 205(a), (b), Sept. 18, 1978, 92 Stat.
640, 644; Pub. L. 99–272, title VIII, § 8003, Apr. 7,
1986, 100 Stat. 148; Pub. L. 100–202, § 101(g) [title
I, § 100], Dec. 22, 1987, 101 Stat. 1329–213, 1329–225;
Pub. L. 103–426, § 1(a), Oct. 31, 1994, 108 Stat. 4371;
Pub. L. 104–58, title III, §§ 302, 303, Nov. 28, 1995,
109 Stat. 563, 565; Pub. L. 105–362, title IX,
§ 901(k), Nov. 10, 1998, 112 Stat. 3290; Pub. L.
106–53, title II, § 215(b)(1), Aug. 17, 1999, 113 Stat.
292; Pub. L. 109–58, title III, §§ 346, 388(a), (c),
Aug. 8, 2005, 119 Stat. 704, 744, 747.)
REFERENCES IN TEXT
The Emergency Petroleum Allocation Act of 1973, referred to in subsec. (b)(7), is Pub. L. 93–159, Nov. 27, 1973,
87 Stat. 628, as amended, which was classified generally
to chapter 16A (§ 751 et seq.) of Title 15, Commerce and
Trade, and was omitted from the Code pursuant to section 760g of Title 15, which provided for the expiration
of the President’s authority under that chapter on
Sept. 30, 1981.
Section 8004(b)(1)(B) of the Outer Continental Shelf
Lands Act Amendments of 1985, referred to in subsec.
(g)(5)(A), is section 8004(b)(1)(B) of Pub. L. 99–272, which
is set out as a note below.
The Deepwater Port Act of 1974, referred to in subsec.
(p)(1), is Pub. L. 93–627, Jan. 3, 1975, 88 Stat. 2126, as
amended, which is classified principally to chapter 29
(§ 1501 et seq.) of Title 33, Navigation and Navigable Waters. For complete classification of this Act to the
Code, see Short Title note set out under section 1501 of
Title 33 and Tables.

The Ocean Thermal Energy Conversion Act of 1980,
referred to in subsec. (p)(1), is Pub. L. 96–320, Aug. 3,
1980, 94 Stat. 974, as amended, which is classified principally to chapter 99 (§ 9101 et seq.) of Title 42, The Public Health and Welfare. For complete classification of
this Act to the Code, see Short Title note set out under
section 9101 of Title 42 and Tables.
Section 388(d) of the Energy Policy Act of 2005, referred to in subsec. (p)(3), is section 388(d) of Pub. L.
109–58, which is set out as a note under this section.
CODIFICATION
In subsec. (a)(3)(C)(ii), ‘‘section 702 of title 5’’ substituted for ‘‘section 10(a) of the Administrative Procedures Act (5 U.S.C. 702)’’ on authority of Pub. L. 89–554,
§ 7(b), Sept. 6, 1966, 80 Stat. 631, the first section of
which enacted Title 5, Government Organization and
Employees.
August 8, 2005, referred to in subsec. (p)(2)(B), was in
the original ‘‘the date of enactment of this section’’,
which was translated as meaning the date of enactment
of Pub. L. 109–58, which enacted subsec. (p) of this section, to reflect the probable intent of Congress.
AMENDMENTS
2005—Pub. L. 109–58, § 388(c), substituted ‘‘Leases,
easements, and rights-of-way on the outer Continental
Shelf’’ for ‘‘Grant of leases by Secretary’’ in section
catchline.
Subsec. (a)(3)(B). Pub. L. 109–58, § 346, inserted ‘‘and in
the Planning Areas offshore Alaska’’ after ‘‘West longitude’’ in introductory provisions.
Subsec. (p). Pub. L. 109–58, § 388(a), added subsec. (p).
1999—Subsec. (k)(2)(B). Pub. L. 106–53 substituted ‘‘a
Federal, State, or local government agency’’ for ‘‘an
agency of the Federal Government’’.
1998—Subsec. (a)(9). Pub. L. 105–362 struck out par. (9)
which related to report to Congress by Secretary of Energy on bidding options for oil and gas leases on outer
Continental Shelf land.
1995—Subsec. (a)(1)(H), (I). Pub. L. 104–58, § 303, added
subpar. (H) and redesignated former subpar. (H) as (I).
Subsec. (a)(3). Pub. L. 104–58, § 302, designated existing
provisions as subpar. (A) and added subpars. (B) and (C).
1994—Subsec. (k). Pub. L. 103–426 designated existing
provisions as par. (1) and added par. (2).
1987—Subsec. (g)(5)(A). Pub. L. 100–202 substituted ‘‘an
escrow account established pursuant to an agreement
under section 1336 of this title’’ for ‘‘such account’’ in
second sentence, added cl. (i), designated existing indented par. as cl. (ii), substituted ‘‘a boundary’’ for
‘‘any boundary’’, ‘‘any additional moneys’’ for ‘‘all
moneys’’, and inserted ‘‘or credited to’’ before ‘‘the escrow account’’.
1986—Subsec. (g)(1). Pub. L. 99–272 amended par. (1)
generally. Prior to amendment, par. (1) read as follows:
‘‘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.’’
Subsec. (g)(2). Pub. L. 99–272 amended par. (2) generally. Prior to amendment, par. (2) read as follows:
‘‘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

§ 1337

TITLE 43—PUBLIC LANDS

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.’’
Subsec. (g)(3). Pub. L. 99–272 amended par. (3) generally. Prior to amendment, par. (3) read as follows:
‘‘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 subchapter, 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.’’
Subsec. (g)(4). Pub. L. 99–272 amended par. (4) generally. Prior to amendment, par. (4) read as follows:
‘‘Notwithstanding any other provision of this subchapter, the Secretary shall deposit in a separate account in the Treasury of the United States all bonuses,
royalties, 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.’’
Subsec. (g)(5) to (7). Pub. L. 99–272 added pars. (5) to
(7).
1978—Subsec. (a). Pub. L. 95–372, § 205(a), designated
existing provisions as par. (1)(A) and (B), and in par.
(1)(A) as so redesignated, struck out provisions which
restricted authority of Secretary to grant oil and gas
leases to situations involving the urgent need for further exploration and development of oil and gas deposits of the submerged lands of the outer Continental
Shelf and inserted provisions permitting the promulgation of regulations for the deposit of cash bids in interest-bearing accounts until the Secretary announces his
decision on whether to accept the bids with the earned
interest paid either to the Treasury or to unsuccessful
bidders, in par. (1)(B) as so redesignated, substituted
provisions relating to variable royalty bids 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 covering exploration or a fixed
cash bonus as determined by the Secretary or both for
provisions relating to straight royalty bids at not less
than 121⁄2 per centum with a cash bonus fixed by the
Secretary, and added pars. (1)(C) to (H) and pars. (2) to
(9).
Subsec. (b). Pub. L. 95–372, § 205(a), redesignated cls.
(1) to (4) as pars. (1), (2), (3), and (6) respectively, added
pars. (4), (5), and (7), and in par. (1) as so redesignated,
inserted provisions authorizing the Secretary to lease
tracts larger than 5760 acres if a larger area is necessary to comprise a reasonable economic production
unit and in par. (2) as so redesignated, inserted provision to allow up to a 10 year initial period if the longer
period is necessary to encourage exploration and development in areas because of unusually deep water or

Page 322

other unusually adverse conditions, and in par. (3) as so
redesignated, substituted ‘‘payment of amount or value
as determined by one of the bidding systems set forth
in subsection (a) of this section’’ for ‘‘payment of a royalty of not less than 121⁄2 per centum, in the amount or
value of the production saved, removed, or sold from
the lease’’.
Subsecs. (c) to (h). Pub. L. 95–372, § 205(b), added subsecs. (c) to (h). Former subsecs. (c) to (h) redesignated
(i) to (n).
Subsec. (i). Pub. L. 95–372, § 205(b), redesignated
former subsec. (c) as (i). Former subsec. (i) redesignated
(o).
Subsec. (j). Pub. L. 95–372, § 205(b), redesignated
former subsec. (d) as (j). Former subsec. (j), which provided that any person complaining of the cancellation
of a lease by the Secretary could have the Secretary’s
action reviewed in the United States District Court for
the District of Columbia by filing a petition for review,
was struck out. See section 1349 of this title.
Subsecs. (k) to (o). Pub. L. 95–372, § 205(b), redesignated former subsecs. (e) to (i) as (k) to (o), respectively.
REGULATIONS
Pub. L. 104–58, title III, § 305, Nov. 28, 1995, 109 Stat.
566, provided that: ‘‘The Secretary shall promulgate
such rules and regulations as are necessary to implement the provisions of this title [amending this section
and enacting provisions set out as notes under this section] within 180 days after the enactment of this Act
[Nov. 28, 1995].’’
SAVINGS PROVISION
Pub. L. 109–58, title III, § 388(d), Aug. 8, 2005, 119 Stat.
747, provided that: ‘‘Nothing in the amendment made
by subsection (a) [amending this section] requires the
resubmittal of any document that was previously submitted or the reauthorization of any action that was
previously authorized with respect to a project for
which, before the date of enactment of this Act [Aug.
8, 2005]—
‘‘(1) an offshore test facility has been constructed;
or
‘‘(2) a request for a proposal has been issued by a
public authority.’’
Pub. L. 104–58, title III, § 306, Nov. 28, 1995, 109 Stat.
566, provided that: ‘‘Nothing in this title [amending
this section and enacting provisions set out as notes
under this section] shall be construed to affect any offshore pre-leasing, leasing, or development moratorium,
including any moratorium applicable to the Eastern
Planning Area of the Gulf of Mexico located off the
Gulf Coast of Florida.’’
ABOLITION OF HOUSE COMMITTEE ON MERCHANT MARINE
AND FISHERIES
Committee on Merchant Marine and Fisheries of
House of Representatives abolished and its jurisdiction
transferred by House Resolution No. 6, One Hundred
Fourth Congress, Jan. 4, 1995. For treatment of references to Committee on Merchant Marine and Fisheries, see section 1(b)(3) of Pub. L. 104–14, set out as a
note preceding section 21 of Title 2, The Congress.
TRANSFER OF FUNCTIONS
Functions vested in, or delegated to, Secretary of Energy and Department of Energy under or with respect
to subsec. (a)(4) of this section, transferred to, and vested in, Secretary of the Interior, by section 100 of Pub.
L. 97–257, 96 Stat. 841, set out as a note under section
7152 of Title 42, The Public Health and Welfare.
Functions of Secretary of the Interior to promulgate
regulations under this subchapter which relate to fostering of competition for Federal leases, implementation of alternative bidding systems authorized for
award of Federal leases, establishment of diligence requirements for operations conducted on Federal leases,
setting of rates for production of Federal leases, and

Page 323

§ 1337

TITLE 43—PUBLIC LANDS

specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests
taken in kind, transferred to Secretary of Energy by
section 7152(b) of Title 42. Section 7152(b) of Title 42 was
repealed by Pub. L. 97–100, title II, § 201, Dec. 23, 1981, 95
Stat. 1407, and functions of Secretary of Energy returned to Secretary of the Interior. See House Report
No. 97–315, pp. 25, 26, Nov. 5, 1981.
COORDINATED OCS MAPPING INITIATIVE
Pub. L. 109–58, title III, § 388(b), Aug. 8, 2005, 119 Stat.
746, provided that:
‘‘(1) IN GENERAL.—The Secretary of the Interior, in
cooperation with the Secretary of Commerce, the Commandant of the Coast Guard, and the Secretary of Defense, shall establish an interagency comprehensive
digital mapping initiative for the outer Continental
Shelf to assist in decisionmaking relating to the siting
of activities under subsection (p) of section 8 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337) (as
added by subsection (a)).
‘‘(2) USE OF DATA.—The mapping initiative shall use,
and develop procedures for accessing, data collected before the date on which the mapping initiative is established, to the maximum extent practicable.
‘‘(3) INCLUSIONS.—Mapping carried out under the mapping initiative shall include an indication of the locations on the outer Continental Shelf of—
‘‘(A) Federally-permitted activities;
‘‘(B) obstructions to navigation;
‘‘(C) submerged cultural resources;
‘‘(D) undersea cables;
‘‘(E) offshore aquaculture projects; and
‘‘(F) any area designated for the purpose of safety,
national security, environmental protection, or conservation and management of living marine resources.’’
STATE CLAIMS TO JURISDICTION OVER SUBMERGED
LANDS
Pub. L. 109–58, title III, § 388(e), Aug. 8, 2005, 119 Stat.
747, provided that: ‘‘Nothing in this section [amending
this section and enacting provisions set out as notes
under 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.’’
REIMBURSEMENT OF LOCAL INTERESTS
Pub. L. 106–53, title II, § 215(b)(2), Aug. 17, 1999, 113
Stat. 293, provided that: ‘‘Any amounts paid by nonFederal interests for beach erosion control, hurricane
protection, shore protection, or storm damage reduction projects as a result of an assessment under section
8(k) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(k)) shall be fully reimbursed.’’
FEES FOR ROYALTY RATE RELIEF APPLICATIONS
Pub. L. 104–134, title I, § 101(c) [title I], Apr. 26, 1996,
110 Stat. 1321–156, 1321–166; renumbered title I, Pub. L.
104–140, § 1(a), May 2, 1996, 110 Stat. 1327, provided in
part: ‘‘That beginning in fiscal year 1996 and thereafter,
fees for royalty rate relief applications shall be established (and revised as needed) in Notices to Lessees, and
shall be credited to this account in the program areas
performing the function, and remain available until expended for the costs of administering the royalty rate
relief authorized by 43 U.S.C. 1337(a)(3)’’.
LEASE SALES
Pub. L. 104–58, title III, § 304, Nov. 28, 1995, 109 Stat.
565, provided that: ‘‘For all tracts located in water
depths of 200 meters or greater in the Western and Central Planning Area of the Gulf of Mexico, including
that portion of the Eastern Planning Area of the Gulf
of Mexico encompassing whole lease blocks lying west
of 87 degrees, 30 minutes West longitude, any lease sale
within five years of the date of enactment of this title
[Nov. 28, 1995], shall use the bidding system authorized

in section 8(a)(1)(H) of the Outer Continental Shelf
Lands Act, as amended by this title [43 U.S.C.
1337(a)(1)(H)], except that the suspension of royalties
shall be set at a volume of not less than the following:
‘‘(1) 17.5 million barrels of oil equivalent for leases
in water depths of 200 to 400 meters;
‘‘(2) 52.5 million barrels of oil equivalent for leases
in 400 to 800 meters of water; and
‘‘(3) 87.5 million barrels of oil equivalent for leases
in water depths greater than 800 meters.’’
DISTRIBUTION OF SECTION 1337(g) ACCOUNT
Pub. L. 99–272, title VIII, § 8004, Apr. 7, 1986, 100 Stat.
150, provided that:
‘‘(a) Prior to April 15, 1986, the Secretary shall distribute to the designated coastal States the sum of—
‘‘(1) the amounts due and payable to each such
State under paragraph (2) of section 8(g) of the Outer
Continental Shelf Lands Act, as amended by this title
[43 U.S.C. 1337(g)(2)], for the period between October 1,
1985, and the date of such distribution, and
‘‘(2) the amounts due each such State under subsection (b)(1)(A) of this section for the period prior to
October 1, 1985.
‘‘(b)(1) As a fair and equitable disposition of all revenues (including interest thereon) derived from any
lease of Federal lands wholly or partially within 3
miles of the seaward boundary of a coastal State prior
to October 1, 1985, the Secretary shall distribute:
‘‘(A) from the funds which were deposited in the
separate account in the Treasury of the United
States under section 8(g)(4) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(g)(4)) which was in effect prior to the date of enactment of section 8003 of
this title [Apr. 7, 1986] the following sums:

Louisiana ............................................
Texas ...................................................
California ............................................
Alabama ..............................................
Alaska .................................................
Mississippi ..........................................
Florida ................................................

($ million)
572
382
338
66
51
14
0.03

as well as 27 percent of the royalties, derived from
any lease of Federal lands, which have been deposited
through September 30, 1985, in the separate account
described in this paragraph and interest thereon accrued through September 30, 1985, and shall transmit
any remaining amounts to the miscellaneous receipts
account of the Treasury of the United States; and
‘‘(B) from revenues derived from any lease of Federal lands under the Outer Continental Shelf Lands
Act, as amended [43 U.S.C. 1331 et seq.], prior to April
15 of each of the fifteen fiscal years following the fiscal year in which this title is enacted, 3 percent of
the following sums in each of the five fiscal years following the date of enactment of this Act [Apr. 7,
1986], 7 percent of such sums in each of the next five
fiscal years, and 10 percent of such sums in each of
the following five fiscal years:

Louisiana ............................................
Texas ...................................................
California ............................................
Alabama ..............................................
Alaska .................................................
Mississippi ..........................................

($ million)
84
134
289
7
134
2.

‘‘(2) The acceptance of any payment by a State under
this section shall satisfy and release any and all claims
of such State against the United States arising under,
or related to, section 8(g) of the Outer Continental
Shelf Lands Act [43 U.S.C. 1337(g)], as it was in effect
prior to the date of enactment of this Act [Apr. 7, 1986]
and shall vest in such State the right to receive payments as set forth in this section.
‘‘(c) Notwithstanding any other provision of this Act,
the amounts due and payable to the State of Louisiana

§ 1338

TITLE 43—PUBLIC LANDS

prior to October 1, 1986, under subtitle A of title VIII
(Outer Continental Shelf and Related Programs) of this
Act [title VIII does not contain a subtitle A, see Short
Title of 1986 Amendment note set out under section 1301
of this title] shall remain in their separate accounts in
the Treasury of the United States and continue to accrue interest until October 1, 1986, except that the
$572,000,000 set forth in subsection 8004(b)(1)(A) of this
section shall only accrue interest from April 15, 1986 to
October 1, 1986, at which time the Secretary shall immediately distribute such sums with accrued interest
to the State of Louisiana.’’

§ 1338. Disposition of revenues
All rentals, royalties, and other sums paid to
the Secretary or the Secretary of the Navy
under any lease on the outer Continental Shelf
for the period from June 5, 1950, to date, and
thereafter shall be deposited in the Treasury of
the United States and credited to miscellaneous
receipts.
(Aug. 7, 1953, ch. 345, § 9, 67 Stat. 469.)
§ 1338a. Moneys received as a result of forfeiture
by Outer Continental Shelf permittee, lessee,
or right-of-way holder; return of excess
amounts
Notwithstanding section 3302 of title 31, any
moneys on and after November 5, 1990, received
as a result of the forfeiture of a bond or other security by an Outer Continental Shelf permittee,
lessee, or right-of-way holder which does not fulfill the requirements of its permit, lease, or
right-of-way or does not comply with the regulations of the Secretary shall be credited to the
royalty and offshore minerals management account of the Minerals Management Service to
cover the cost to the United States of any improvement, protection, or rehabilitation work
rendered necessary by the action or inaction
that led to the forfeiture, to remain available
until expended: Provided further, That any portion of the moneys so credited shall be returned
to the permittee, lessee, or right-of-way holder
to the extent that the money is in excess of the
amount expended in performing the work necessitated by the action or inaction which led to
their receipt or, if the bond or security was forfeited for failure to pay the civil penalty, in excess of the civil penalty imposed.
(Pub. L. 101–512, title I, Nov. 5, 1990, 104 Stat.
1926; Pub. L. 102–381, title I, Oct. 5, 1992, 106 Stat.
1386; Pub. L. 103–332, title I, Sept. 30, 1994, 108
Stat. 2508.)
CODIFICATION
Section enacted as part of the Department of the Interior and Related Agencies Appropriations Act, 1991,
and not as part of the Outer Continental Shelf Lands
Act which comprises this subchapter.
AMENDMENTS
1994—Pub. L. 103–332 struck out ‘‘or payment of civil
penalty’’ after ‘‘result of the forfeiture of a bond or
other security’’, substituted ‘‘royalty and offshore minerals’’ for ‘‘leasing and royalty’’, and struck out ‘‘or
imposition of the civil penalty’’ after ‘‘rendered necessary by the action or inaction that led to the forfeiture’’.
1992—Pub. L. 102–381 substituted ‘‘shall be credited to
the leasing and royalty management account of the
Minerals Management Service’’ for ‘‘shall be credited
to this account’’.

Page 324
CHANGE OF NAME

Title I of Pub. L. 103–332, 108 Stat. 2508, provided in
part: ‘‘That where the account title ‘Leasing and Royalty Management’ appears in any public law, the words
‘Leasing and Royalty Management’ beginning in fiscal
year 1995 and thereafter shall be construed to mean
‘Royalty and Offshore Minerals Management’.’’
EFFECTIVE DATE OF 1994 AMENDMENT
Title I of Pub. L. 103–332, 108 Stat. 2508, provided that
the amendment made by Pub. L. 103–332 substituting
‘‘royalty and offshore minerals’’ for ‘‘leasing and royalty’’ is effective beginning in fiscal year 1995 and
thereafter.
TRANSFER OF FUNCTIONS
The Minerals Management Service was abolished and
functions divided among the Office of Natural Resources Revenue, the Bureau of Ocean Energy Management, and the Bureau of Safety and Environmental Enforcement. See Secretary of the Interior Orders No. 3299
of May 19, 2010, and No. 3302 of June 18, 2010, and chapters II, V, and XII of title 30, Code of Federal Regulations, as revised by final rules of the Department of the
Interior at 75 F.R. 61051 and 76 F.R. 64432.

§ 1339. Repealed. Pub. L. 104–185, § 8(b), Aug. 13,
1996, 110 Stat. 1717
Section, act Aug. 7, 1953, ch. 345, § 10, 67 Stat. 469, related to requirements for refund of excess payments.
EFFECTIVE DATE OF REPEAL
Pub. L. 104–185, § 8(b), Aug. 13, 1996, 110 Stat. 1717, provided in part that the repeal of this section is effective
Aug. 13, 1996.
APPLICABILITY OF REPEAL
Repeal of section not applicable to any privately
owned minerals or with respect to Indian lands, see sections 9 and 10 of Pub. L. 104–185, set out as an Applicability of 1996 Amendment note under section 1701 of
Title 30, Mineral Lands and Mining.

§ 1340. Geological and geophysical explorations
(a) Approved exploration plans
(1) Any agency of the United States and any
person authorized by the Secretary may conduct
geological and geophysical explorations in the
outer Continental Shelf, which do not interfere
with or endanger actual operations under any
lease maintained or granted pursuant to this
subchapter, and which are not unduly harmful
to aquatic life in such area.
(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 subchapter.
(b) Oil and gas exploration
Except as provided in subsection (f) of this section, beginning ninety days after September 18,
1978, no exploration pursuant to any oil and gas
lease issued or maintained under this subchapter may be undertaken by the holder of
such lease, except in accordance with the provisions of this section.
(c) Plan approval; State concurrence; plan provisions
(1) Except as otherwise provided in this subchapter, prior to commencing exploration pursuant to any oil and gas lease issued or maintained

Page 325

under this subchapter, 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 subchapter, regulations prescribed under this subchapter, including regulations prescribed by the Secretary pursuant to paragraph (8) of section 1334(a) of this
title, 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 modified, within thirty days of its
submission, except that the Secretary shall disapprove such plan if he determines that (A) any
proposed activity under such plan would result
in
any
condition
described
in
section
1334(a)(2)(A)(i) of this title, 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 1334(a)(2)(B) of this title, cancel such
lease and the lessee shall be entitled to compensation in accordance with the regulations
prescribed under section 1334(a)(2)(C)(i) or (ii) of
this title.
(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 1455 of title 16, unless the
State concurs or is conclusively presumed to
concur with the consistency certification accompanying such plan pursuant to section
1456(c)(3)(B)(i) or (ii) of title 16, or the Secretary
of Commerce makes the finding authorized by
section 1456(c)(3)(B)(iii) of title 16.
(3) An exploration plan submitted under this
subsection shall include, in the degree of detail
which the Secretary may by regulation require—
(A) a schedule of anticipated exploration activities to be understaken; 1
(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.
(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) Drilling permit
The Secretary may, by regulation, require any
lessee operating under an approved exploration
plan to obtain a permit prior to drilling any well
in accordance with such plan.
(e) Plan revisions; conduct of exploration activities
(1) If a significant revision of an exploration
plan approved under this subsection is submit1 So

§ 1340

TITLE 43—PUBLIC LANDS

in original. Probably should be ‘‘undertaken;’’.

ted 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) Drilling permits issued and exploration plans
approved within 90-day period after September 18, 1978
(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 September 18,
1978, shall be considered in compliance with this
section, except that the Secretary may, in accordance with section 1334(a)(1)(B) of this title,
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) Determinations requisite to issuance of permits
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 subchapter; 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) Lands beneath navigable waters adjacent to
Phillip Burton Wilderness
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 Phillip Burton
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 1301 of this title) of such State which
are adjacent to such Wilderness.
(Aug. 7, 1953, ch. 345, § 11, 67 Stat. 469; Pub. L.
95–372, title II, § 206, Sept. 18, 1978, 92 Stat. 647;
Pub. L. 99–68, § 1(c), July 19, 1985, 99 Stat. 166.)
AMENDMENTS
1978—Pub. L. 95–372 designated existing provisions as
subsec. (a)(1) and added subsecs. (a)(2) to (h).

§ 1341

TITLE 43—PUBLIC LANDS
CHANGE OF NAME

‘‘Phillip Burton Wilderness’’ was substituted for
‘‘Point Reyes Wilderness’’ in subsec. (h), pursuant to
section 1(c) of Pub. L. 99–68.
TRANSFER OF FUNCTIONS
Functions of Secretary of the Interior to promulgate
regulations under this subchapter which relate to fostering of competition for Federal leases, implementation of alternative bidding systems authorized for
award of Federal leases, establishment of diligence requirements for operations conducted on Federal leases,
setting of rates for production of Federal leases, and
specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests
taken in kind, transferred to Secretary of Energy by
section 7152(b) of Title 42, The Public Health and Welfare. Section 7152(b) of Title 42 was repealed by Pub. L.
97–100, title II, § 201, Dec. 23, 1981, 95 Stat. 1407, and functions of Secretary of Energy returned to Secretary of
the Interior. See House Report No. 97–315, pp. 25, 26,
Nov. 5, 1981.

§ 1341. Reservation of lands and rights
(a) Withdrawal of unleased lands by President
The President of the United States may, from
time to time, withdraw from disposition any of
the unleased lands of the outer Continental
Shelf.
(b) First refusal of mineral purchases
In time of war, or when the President shall so
prescribe, the United States shall have the right
of first refusal to purchase at the market price
all or any portion of any mineral produced from
the outer Continental Shelf.
(c) National security clause
All leases issued under this subchapter, and
leases, the maintenance and operation of which
are authorized under this subchapter, shall contain or be construed to contain a provision
whereby authority is vested in the Secretary,
upon a recommendation of the Secretary of Defense, during a state of war or national emergency declared by the Congress or the President
of the United States after August 7, 1953, to suspend operations under any lease; and all such
leases shall contain or be construed to contain
provisions for the payment of just compensation
to the lessee whose operations are thus suspended.
(d) National defense areas; suspension of operations; extension of leases
The United States reserves and retains the
right to designate by and through the Secretary
of Defense, with the approval of the President,
as areas restricted from exploration and operation that part of the outer Continental Shelf
needed for national defense; and so long as such
designation remains in effect no exploration or
operations may be conducted on any part of the
surface of such area except with the concurrence
of the Secretary of Defense; and if operations or
production under any lease theretofore issued on
lands within any such restricted area shall be
suspended, any payment of rentals, minimum
royalty, and royalty prescribed by such lease
likewise shall be suspended during such period
of suspension of operation and production, and
the term of such lease shall be extended by adding thereto any such suspension period, and the

Page 326

United States shall be liable to the lessee for
such compensation as is required to be paid
under the Constitution of the United States.
(e) Source materials essential to production of
fissionable materials
All uranium, thorium, and all other materials
determined pursuant to paragraph (1) of subsection (b) of section 5 of the Atomic Energy Act
of 1946, as amended, to be peculiarly essential to
the production of fissionable material, contained, in whatever concentration, in deposits in
the subsoil or seabed of the outer Continental
Shelf are reserved for the use of the United
States.
(f) Helium ownership; rules and regulations governing extraction
The United States reserves and retains the
ownership of and the right to extract all helium,
under such rules and regulations as shall be prescribed by the Secretary, contained in gas produced from any portion of the outer Continental
Shelf which may be subject to any lease maintained or granted pursuant to this subchapter,
but the helium shall be extracted from such gas
so as to cause no substantial delay in the delivery of gas produced to the purchaser of such gas.
(Aug. 7, 1953, ch. 345, § 12, 67 Stat. 469.)
REFERENCES IN TEXT
Paragraph (1) of subsection (b) of section 5 of the
Atomic Energy Act of 1946, as amended, referred to in
subsec. (e), is par. (1) of section 5(b) of act Aug. 1, 1946,
ch. 724, 60 Stat. 755, which was classified to section 1805
of Title 42, The Public Health and Welfare, prior to the
general amendment of the Atomic Energy Act of 1946
by act Aug. 30, 1954, ch. 1073, § 1, 68 Stat. 919. See section
2014(z) of Title 42.
KEY LARGO CORAL REEF PRESERVE
Withdrawal of area designated Key Largo Coral Reef
Preserve from disposition, see Proc. No. 3339, Mar. 15,
1960, 25 F.R. 2352, set out as a note under section 320101
of Title 54, National Park Service and Related Programs.

§ 1342. Prior claims as unaffected
Nothing herein contained shall affect such
rights, if any, as may have been acquired under
any law of the United States by any person in
lands subject to this subchapter and such rights,
if any, shall be governed by the law in effect at
the time they may have been acquired: Provided,
however, That nothing herein contained is intended or shall be construed as a finding, interpretation, or construction by the Congress that
the law under which such rights may be claimed
in fact applies to the lands subject to this subchapter or authorizes or compels the granting of
such rights in such lands, and that the determination of the applicability or effect of such
law shall be unaffected by anything herein contained.
(Aug. 7, 1953, ch. 345, § 14, 67 Stat. 470.)
§ 1343. Repealed. Pub. L. 105–362, title
§ 901(l)(1), Nov. 10, 1998, 112 Stat. 3290

IX,

Section, acts Aug. 7, 1953, ch. 345, § 15, 67 Stat. 470;
Pub. L. 95–372, title II, § 207, Sept. 18, 1978, 92 Stat. 648;
Pub. L. 99–367, § 2(a), July 31, 1986, 100 Stat. 774, related
to Secretary’s annual report to Congress concerning

Page 327

TITLE 43—PUBLIC LANDS

outer Continental Shelf leasing and production program and promotion of competition in leasing.

§ 1344. Outer Continental Shelf leasing program
(a) Schedule of proposed oil and gas lease sales
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 subchapter. 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:
(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.

§ 1344

(4) Leasing activities shall be conducted to
assure receipt of fair market value for the
lands leased and the rights conveyed by the
Federal Government.
(b) Estimates of appropriations and staff required for management of leasing program
The leasing program shall include estimates of
the appropriations and staff required to—
(1) 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 subchapter;
(3) conduct environmental studies and prepare any environmental impact statement required in accordance with this subchapter and
with section 4332(2)(C) of title 42; 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 requirements of applicable law and
regulations, and with the terms of the lease.
(c) Suggestions from Federal agencies and affected State and local governments; submission of proposed program to Governors of affected States and Congress; publication in
Federal Register
(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 comments from those executives of local governments in his State which he, in his discretion,
determines 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, shall accompany such proposed program when it is submitted to the Congress.
(3) Within nine months after September 18,
1978, the Secretary shall submit a proposed leas-

§ 1344

TITLE 43—PUBLIC LANDS

ing 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) Comments by Attorney General on anticipated effect on competition; comments by
State or local governments; submission of
program to President and Congress; issuance
of leases in accordance with program
(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 September 18, 1978, 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 continue 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 subchapter.
(e) Review, revision, and reapproval of program
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) Procedural regulations for management of
program
The Secretary shall, by regulation, 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 adminis-

Page 328

tered by an affected coastal State pursuant to
section 1454 or section 1455 of title 16.
Such procedures shall be applicable to any significant revision or reapproval of the leasing
program.
(g) Information from public and private sources;
confidentiality of classified or privileged
data
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 subchapter. 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 subchapter, established by regulation, or
agreed to by the parties.
(h) Information from all Federal departments
and agencies; confidentiality of privileged or
proprietary information
The heads of all Federal departments and
agencies shall provide the Secretary with any
nonpriviledged 1 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.
(Aug. 7, 1953, ch. 345, § 18, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 649.)
TRANSFER OF FUNCTIONS
Functions of Secretary of the Interior to promulgate
regulations under this subchapter which relate to fostering of competition for Federal leases, implementation of alternative bidding systems authorized for
award of Federal leases, establishment of diligence requirements for operations conducted on Federal leases,
setting of rates for production of Federal leases, and
specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests
taken in kind, transferred to Secretary of Energy by
section 7152(b) of Title 42, The Public Health and Welfare. Section 7152(b) of Title 42 was repealed by Pub. L.
97–100, title II, § 201, Dec. 23, 1981, 95 Stat. 1407, and functions of Secretary of Energy returned to Secretary of
the Interior. See House Report No. 97–315, pp. 25, 26,
Nov. 5, 1981.
1 So

in original. Probably should be ‘‘nonprivileged’’.

Page 329

TITLE 43—PUBLIC LANDS

§ 1346

§ 1345. Coordination and consultation with affected State and local governments

(Aug. 7, 1953, ch. 345, § 19, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 652.)

(a) Recommendations regarding size, time, or location of proposed lease sales
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.
(b) Time for submission of recommendations
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) Acceptance or rejection of recommendations
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 subchapter. 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 alternative 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) Finality of acceptance or rejection of recommendations
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
1349 of this title, unless found to be arbitrary or
capricious.
(e) Cooperative agreements
The Secretary is authorized to enter into cooperative agreements with affected States for
purposes which are consistent with this subchapter 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 1352 of this
title), 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.

§ 1346. Environmental studies
(a) Information for assessment and management
of impacts on environment; time for study;
impacts on marine biota from pollution or
large spills
(1) The Secretary shall conduct a study of any
area or region included in any oil and gas lease
sale or other lease 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 or other mineral 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 September 18, 1978, with
respect to any area or region where a lease sale
has been held or announced by publication of a
notice of proposed lease sale before September
18, 1978, 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 September 18, 1978. In the
case of an agreement under section 1337(k)(2) of
this title, each study required by paragraph (1)
of this subsection shall be commenced not later
than 6 months prior to commencing negotiations for such agreement or the entering into
the memorandum of agreement as the case may
be. The Secretary may utilize information collected in any study prior to September 18, 1978.
(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 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) Additional studies subsequent to leasing and
development of area
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) Procedural regulations for conduct of studies;
cooperation with affected States; utilization
of information from Federal, State and local
governments and agencies
The Secretary shall, by regulation, establish
procedures for carrying out his duties under this
section, and shall plan and carry out such duties

§ 1347

TITLE 43—PUBLIC LANDS

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) Consideration of relevant environmental information in developing regulations, lease
conditions and operating orders
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) Assessment of cumulative effects of activities
on environment; submission to Congress
As soon as practicable after the end of every 3
fiscal years, 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 subchapter on the
human, marine, and coastal environments.
(f) Utilization of capabilities of Department of
Commerce
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
subchapter.
(Aug. 7, 1953, ch. 345, § 20, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 653; amended
Pub. L. 103–426, § 1(b), Oct. 31, 1994, 108 Stat. 4371;
Pub. L. 104–66, title I, § 1082(b), Dec. 21, 1995, 109
Stat. 722.)
AMENDMENTS
1995—Subsec. (e). Pub. L. 104–66 substituted ‘‘every 3
fiscal years’’ for ‘‘each fiscal year’’.
1994—Subsec. (a)(1). Pub. L. 103–426, § 1(b)(1), inserted
‘‘or other lease’’ after ‘‘any oil and gas lease sale’’ and
‘‘or other mineral’’ after ‘‘affected by oil and gas’’.
Subsec. (a)(2). Pub. L. 103–426, § 1(b)(2), inserted before
last sentence ‘‘In the case of an agreement under section 1337(k)(2) of this title, each study required by paragraph (1) of this subsection shall be commenced not
later than 6 months prior to commencing negotiations
for such agreement or the entering into the memorandum of agreement as the case may be.’’
TERMINATION OF REPORTING REQUIREMENTS
For termination, effective May 15, 2000, of provisions
of law requiring submittal to Congress of any annual,

Page 330

semiannual, or other regular periodic report listed in
House Document No. 103–7 (in which the 15th item on
page 111 identifies a reporting provision which, as subsequently amended, is contained in subsec. (e) of this
section), see section 3003 of Pub. L. 104–66, as amended,
set out as a note under section 1113 of Title 31, Money
and Finance.

§ 1347. Safety and health regulations
(a) Joint study of adequacy of existing safety and
health regulations; submission to President
and Congress
Upon September 18, 1978, 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 a 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.
(b) Use of best available and safest economically
feasible technologies
In exercising their respective responsibilities
for the artificial islands, installations, and other
devices referred to in section 1333(a)(1) of this
title, the Secretary, and the Secretary of the
Department in 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) Regulations applying to unregulated hazardous working conditions
The Secretary of the Department in which the
Coast Guard is operating shall promulgate regulations or standards applying to 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) Application of other laws
Nothing in this subchapter 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.

Page 331

TITLE 43—PUBLIC LANDS

(e) Studies of underwater diving techniques and
equipment
The Secretary of Commerce, in cooperation
with the Secretary of the Department in 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) Coordination and consultation with Federal
departments and agencies; availability to interested persons of compilation of safety regulations
(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 compilation of all safety and
other regulations which are prepared and promulgated by any Federal department or agency
and applicable to activities on the outer Continental Shelf. Such compilation shall be revised and updated annually.
(Aug. 7, 1953, ch. 345, § 21, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 654.)
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 1348. Enforcement of safety and environmental
regulations
(a) Utilization of Federal departments and agencies
The Secretary, the Secretary of the Department in which the Coast Guard is operating, and
the Secretary of the Army shall enforce safety
and environmental regulations promulgated
pursuant to this subchapter. Each such Federal
department may by agreement utilize, with or
without reimbursement, the services, personnel,
or facilities of other Federal departments and
agencies for the enforcement of their respective
regulations.
(b) Duties of holders of lease or permit
It shall be the duty of any holder of a lease or
permit under this subchapter to—
(1) maintain all places of employment within
the lease area or within the area covered by
such permit in compliance with occupational
safety and health standards and, in addition,
free from recognized hazards to employees of

§ 1348

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) Onsite inspection of facilities
The Secretary and the Secretary 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 subchapter, 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) Investigation and report on major fires, oil
spills, death, or serious injury
(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 subchapter, 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 subchapter 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 subchapter, 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 subchapter
shall cooperate with the appropriate Secretary
in the course of any such investigation.
(e) Review of allegations of violations
The Secretary, or, in the case of occupational
safety and health, 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 subchapter.

§ 1349

TITLE 43—PUBLIC LANDS

(f) Summoning of witnesses and production of
evidence
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 designee, shall administer all necessary
oaths to any witnesses summoned before such
investigation.
(Aug. 7, 1953, ch. 345, § 22, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 655; amended
Pub. L. 105–362, title IX, § 901(l)(2), Nov. 10, 1998,
112 Stat. 3290.)
AMENDMENTS
1998—Subsec. (g). Pub. L. 105–362 struck out subsec.
(g) which read as follows: ‘‘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 1343 of
this title 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 1347(e) of this title.’’
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
REPORT AND RECOMMENDATIONS BY SECRETARY TO
CONGRESS FOR TRAINING PROGRAM
Pub. L. 95–372, title VI, § 607, Sept. 18, 1978, 92 Stat.
697, required the Secretary of the Interior, in consultation with the Secretary of the Department in which the
Coast Guard is operating, not later than ninety days
after Sept. 18, 1978, to prepare and submit to the Congress a training program report concerning individuals
employed on any artificial island, installation, or other
device located on the Outer Continental Shelf and who,
as part of their employment, operate or supervise the
operation of pollution-prevention equipment.

§ 1349. Citizens suits, jurisdiction and judicial review
(a) Persons who may bring actions; persons
against whom action may be brought; time of
action; intervention by Attorney General;
costs and fees; security
(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 subchapter 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 violation of any
provision of this subchapter or any regulation

Page 332

promulgated under this subchapter, or of the
terms of any permit or lease issued by the Secretary under this subchapter.
(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
appropriate Federal official, 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 appropriate 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 subchapter,
or any regulation promulgated under this subchapter, or the terms of any permit or lease issued by the Secretary under this subchapter,
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) Jurisdiction and venue of actions
(1) Except as provided in subsection (c) of this
section, the district courts of the United States
shall have jurisdiction of cases and 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 subchapter. 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

Page 333

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
subchapter 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) Review of Secretary’s approval of leasing program; review of approval, modification or
disapproval of exploration or production
plan; persons who may seek review; scope of
review; certiorari to Supreme Court
(1) Any action of the Secretary to approve a
leasing program pursuant to section 1344 of this
title shall be subject to judicial review only in
the United States Court of Appeal 1 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 subchapter 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 subchapter and any additional information upon which the Secretary based his decision, as required by section 2112 of title 28. 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 affirm, 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
1 So

§ 1350

TITLE 43—PUBLIC LANDS

in original. Probably should be ‘‘Appeals’’.

shall be subject to review by the Supreme Court
of the United States upon writ of certiorari.
(Aug. 7, 1953, ch. 345, § 23, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 657; amended
Pub. L. 98–620, title IV, § 402(44), Nov. 8, 1984, 98
Stat. 3360.)
REFERENCES IN TEXT
The Federal Rules of Civil Procedure, referred to in
subsec. (a)(5), are set out in the Appendix to Title 28,
Judiciary and Judicial Procedure.
AMENDMENTS
1984—Subsec. (d). Pub. L. 98–620 struck out subsec. (d)
which provided that except as to causes of action considered by the court to be of greater importance, any
action under this section would take precedence on the
docket over all other causes of action and would be set
for hearing at the earliest practical date and expedited
in every way.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–620 not applicable to cases
pending on Nov. 8, 1984, see section 403 of Pub. L. 98–620,
set out as a note under section 1657 of Title 28, Judiciary and Judicial Procedure.

§ 1350. Remedies and penalties
(a) Injunctions, restraining orders, etc.
At the request of the Secretary, the Secretary
of the Army, or the Secretary of the Department
in which the Coast Guard 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 to enforce any provision of this subchapter, any regulation or order issued under
this subchapter, or any term of a lease, license,
or permit issued pursuant to this subchapter.
(b) Civil penalties; hearing
(1) Except as provided in paragraph (2), if any
person fails to comply with any provision of this
subchapter, or any term of a lease, license, or
permit issued pursuant to this subchapter, or
any regulation or order issued under this subchapter, after notice of such failure and expiration of any reasonable period allowed for corrective action, such person shall be liable for a civil
penalty of not more than $20,000 for each day of
the continuance of such failure. The Secretary
may assess, collect, and compromise any such
penalty. No penalty shall be assessed until the
person charged with a violation has been given
an opportunity for a hearing. The Secretary
shall, by regulation at least every 3 years, adjust the penalty specified in this paragraph to
reflect any increases in the Consumer Price
Index (all items, United States city average) as
prepared by the Department of Labor.
(2) If a failure described in paragraph (1) constitutes or constituted a threat of serious, irreparable, or immediate harm or damage to life (including fish and other aquatic life), property,
any mineral deposit, or the marine, coastal, or
human environment, a civil penalty may be assessed without regard to the requirement of expiration of a period allowed for corrective action.

§ 1351

TITLE 43—PUBLIC LANDS

(c) Criminal penalties
Any person who knowingly and willfully (1)
violates any provision of this subchapter, any
term of a lease, license, or permit issued pursuant to this subchapter, or any regulation or
order issued under the authority of this subchapter designed to protect health, safety, or
the environment or 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 this subchapter, (3) falsifies,
tampers with, or renders inaccurate any monitoring device or method of record required to be
maintained under this subchapter, or (4) reveals
any data or information required to be kept confidential by this subchapter shall, upon conviction, be punished by a fine of not more than
$100,000, or by imprisonment for not more than
ten years, or both. Each day that a violation
under clause (1) of this subsection continues, or
each day that any monitoring device or data recorder remains inoperative or inaccurate because of any activity described in clause (3) of
this subsection, shall constitute a separate violation.
(d) Liability of corporate officers and agents for
violations by corporation
Whenever a corporation or other entity is subject to 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 to the same fines or imprisonment, or both, as provided for under subsection (c) of this section.
(e) Concurrent and cumulative nature of penalties
The remedies and penalties prescribed in this
subchapter shall be concurrent and cumulative
and the exercise of one shall not preclude the exercise of the others. Further, the remedies and
penalties prescribed in this subchapter shall be
in addition to any other remedies and penalties
afforded by any other law or regulation.
(Aug. 7, 1953, ch. 345, § 24, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 659; amended
Pub. L. 101–380, title VIII, § 8201, Aug. 18, 1990, 104
Stat. 570.)
AMENDMENTS
1990—Subsec. (b). Pub. L. 101–380 substituted ‘‘(1) Except as provided in paragraph (2), if any’’ for ‘‘If any’’,
substituted ‘‘$20,000’’ for ‘‘$10,000’’, inserted at end ‘‘The
Secretary shall, by regulation at least every 3 years,
adjust the penalty specified in this paragraph to reflect
any increases in the Consumer Price Index (all items,
United States city average) as prepared by the Department of Labor’’, and added par. (2).
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,

Page 334

and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 1351. Oil and gas development and production
(a) Development and production plans; submission to Secretary; statement of facilities and
operation; submission to Governors of affected States and local governments
(1) Prior to development and production pursuant to an oil and gas lease issued after September 18, 1978, in any area of the outer Continental Shelf, other than the Gulf of Mexico, or
issued or maintained prior to September 18, 1978,
in any area of the outer Continental Shelf, other
than the Gulf of Mexico, with respect to which
no oil or gas has been discovered in paying quantities prior to September 18, 1978, 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.
(3) Except for any privileged or proprietary information (as such 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
request 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) Development and production activities in accordance with plan as lease requirement
After September 18, 1978, no oil and gas lease
may be issued pursuant to this subchapter 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) Scope and contents of plan
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

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TITLE 43—PUBLIC LANDS

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) State concurrence in land or water zone use
in coastal zone of State
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
such Act [16 U.S.C. 1456(c)(3)(B)(i) or (ii)], or the
Secretary of Commerce makes the finding authorized by section 307(c)(3)(B)(iii) of such Act
[16 U.S.C. 1456(c)(3)(B)(iii)].
(e) Declaration of approval of development and
production plan as major Federal action;
submission of preliminary or final lease
plans prior to commencement of National
Environmental Policy provisions procedures
(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 National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.]
shall commence.
(f) Plans considered major Federal actions; submission of draft environmental impact statement to Governors of affected States and
local governments
If approval of a development and production
plan is found to be a major Federal action, the
Secretary shall transmit the draft environmental impact statement to the Governor of
any affected State, and upon request, to the executive of any local government, and shall make
such draft available to any appropriate interstate regional entity and the public.
(g) Plans considered nonmajor Federal actions;
comments and recommendations from States
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 rec-

§ 1351

ommendations 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) Approval, disapproval or modification of
plan; reapplication; periodic review
(1) After reviewing the record of any public
hearing held with respect to the approval of a
plan pursuant to the National Environmental
Policy Act of 1969 [42 U.S.C. 4321 et seq.] or the
comments and recommendations submitted
under subsection (g) of this section, the Secretary shall, 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. 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 1334(a) of this title. 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
[16 U.S.C. 1456(c)(3)(B)(i) or (ii)] unless the Secretary of Commerce makes the finding authorized by section 307(c)(3)(B)(iii) of such Act [16
U.S.C. 1456(c)(3)(B)(iii)]. The Secretary shall disapprove a plan—
(A) if the lessee fails to demonstrate that he
can comply with the requirements of this subchapter or other applicable Federal law, including the regulations prescribed by the Secretary pursuant to paragraph (8) of section
1334(a) of this title;
(B) if any of the activities described in detail
in the plan 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)
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 [16 U.S.C.
1456(c)(3)(B)(i) or (ii)] and the Secretary of
Commerce does not make the finding authorized by section 307(c)(3)(B)(iii) of such Act [16
U.S.C. 1456(c)(3)(B)(iii)];
(C) if operations threaten national security
or national defense; or
(D) if the Secretary determines, because of
exceptional geological conditions in the lease

§ 1351

TITLE 43—PUBLIC LANDS

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 subparagraph (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.S.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 [16 U.S.C. 1451 et seq.], 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 with 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 1334(a)(2)(C) of this title. 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 good 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 1334(c) of
this title.
(3) The Secretary shall, from time to time, review each plan 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.

Page 336

(i) Approval of revision of approved plan
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 subchapter, 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) Cancellation of lease on failure to submit plan
or comply with approved plan
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 section 1334(c) and (d) of this
title. Termination of a lease because of failure
to comply with an approved plan, including required modifications or revisions, shall not entitle a lessee to any compensation.
(k) Production and transportation of natural gas;
submission of plan to Federal Energy Regulatory Commission; impact statement
If any development and production plan submitted to the Secretary pursuant to this section
provides for the production and transportation
of natural gas, the lessee shall contemporaneously submit to the Federal Energy Regulatory Commission that portion of such plan
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 [42 U.S.C. 4321 et seq.]
applicable to such portion of such plan, or conduct studies as to the effect on the environment
of implementing it. 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, in connection with its review of an application for a certificate of public convenience
and necessity applicable to such transportation
facilities pursuant to section 717f of title 15,
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
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

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TITLE 43—PUBLIC LANDS

the Commission and to all aspects of the Commission’s review of, and action on, any such application.
(l) Application of provisions to leases in Gulf of
Mexico
The Secretary may require the provisions of
this section to apply to an oil and gas lease issued or maintained under this subchapter, which
is located in that area of the Gulf of Mexico
which is adjacent to the State of Florida, as determined pursuant to section 1333(a)(2) of this
title.
(Aug. 7, 1953, ch. 345, § 25, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 659.)
REFERENCES IN TEXT
The National Environmental Policy Act of 1969, referred to in subsecs. (e)(2), (h)(1), and (k), is Pub. L.
91–190, Jan. 1, 1970, 83 Stat. 852, as amended, which is
classified generally to chapter 55 (§ 4321 et seq.) of Title
42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note
set out under section 4321 of Title 42 and Tables.
The Coastal Zone Management Act of 1972, referred to
in subsec. (h)(2)(A)(ii), (B)(ii), is title III of Pub. L.
89–454, as added by Pub. L. 92–583, Oct. 27, 1972, 86 Stat.
1280, as amended, which is classified generally to chapter 33 (§ 1451 et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see Short
Title note set out under section 1451 of Title 16 and
Tables.

§ 1352. Oil and gas information program
(a) Access to data and information obtained by
lessee or permittee from oil or gas exploration, etc., data obtained by Federal department or agency from geological and geophysical explorations
(1)(A) Any lessee or permittee conducting any
exploration for, or development or production
of, oil or gas pursuant to this subchapter 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
information 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

§ 1352

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 pursuant to
section 1340 of this title, and any other information which may be necessary or useful to assist
him in carrying out the provisions of this subchapter.
(b) Processing, analyzing, and interpreting information; availability of summary of data to affected States and local government
(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 subchapter.
(2) As soon as practicable after information
provided to the Secretary pursuant to subsection (a) of this section is processed, analyzed,
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 gas, or
both, is found, (C) the location of pipelines, and
(D) the general location and nature of onshore
facilities.
(c) Confidentiality of information; regulations
The Secretary shall prescribe regulations to
(1) assure that 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.
(d) Transmittal of information to affected State;
protection of competitive position
(1) The Secretary shall transmit to any affected State—
(A) an index, and upon request copies of, all
relevant actual or proposed programs, plans,
reports, environmental impact statements,
tract nominations (including negative nominations) and other lease sale information, any
similar type of relevant information, and all
modifications and revisions thereof and com-

§ 1353

TITLE 43—PUBLIC LANDS

ments thereon, prepared or obtained by the
Secretary pursuant to this subchapter, 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 such subsection (b)(1), unless the
Secretary determines that transmittal of such
data prepared pursuant to subsection (b)(1) of
this section 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) Agreement with State to waive defenses and
hold United States harmless from failure to
maintain confidentiality of information
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.
(f) Civil action against United States or State for
failure to maintain confidentiality of information; certain defenses unavailable
(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

Page 338

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) Preemption of State law by Federal law
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 subchapter is expressly preempted
by the provisions of this section, to the extent
that it applies to such information.
(h) Failure by State to comply with regulations;
withholding of information
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.
(Aug. 7, 1953, ch. 345, § 26, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 664.)
PAYMENT OF PROCESSING COSTS FOR DATA AND
INFORMATION ACQUIRED; PERMITTEES ELIGIBLE
Pub. L. 99–349, title I, July 2, 1986, 100 Stat. 732, provided that: ‘‘Notwithstanding any other provision of
law, for data and information acquired in fiscal year
1986 or thereafter, by the Secretary, pursuant to section 1352(a)(1)(C)(iii) of title 43, United States Code,
payment shall be made for processing costs to permittees with permits issued on or before September 30,
1985.’’
PAYMENT OF COSTS OF REPRODUCING DATA AND
INFORMATION PROVIDED TO SECRETARY
Pub. L. 99–190, § 101(d) [title I, § 100], Dec. 19, 1985, 99
Stat. 1224, 1232, provided: ‘‘That notwithstanding any
other provision of law, when in fiscal year 1986 and
thereafter any permittee provides data and information
to the Secretary pursuant to section 1352(a)(1)(C)(iii) of
title 43, United States Code, the Secretary shall pay
only the reasonable cost of reproducing such data and
information.’’

§ 1353. Federal purchase and disposition of oil
and gas
(a) Payment of royalties or net profit shares in
oil and gas; purchase of oil and gas by
United States; transfer of title to Federal
agencies
(1) Except as may be necessary to comply with
the provisions of sections 1335 and 1336 of this
title, 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 subchapter, 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 162⁄3 per centum by volume of the oil and gas produced pursuant to a
lease issued or maintained in accordance with
this subchapter, at the regulated price, or, if no

Page 339

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) Sale of oil by United States to public; disposition of oil to small refiners; application of
other laws
(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 reserved to
the United States pursuant to any lease issued
or maintained under this subchapter, 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 regulated 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) Sale of gas by United States to public
(1) Except as provided in paragraph (2) of this
subsection, the Secretary, pursuant to such
terms as he determines, many 1 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
1 So

in original. Probably should be ‘‘may’’.

§ 1353

TITLE 43—PUBLIC LANDS

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) Purchase by lessee of Federal oil or gas for
which no bids received
The lessee shall take any Federal oil or gas for
which no acceptable bids are received, as determined by 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) Definitions
As used in this section—
(1) the term ‘‘regulated price’’ means the
highest price—
(A) at which oil many 1 be sold pursuant to
the Emergency Petroleum Allocation Act of
1973 2 [15 U.S.C. 751 et seq.] 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 [15 U.S.C. 717 et seq.], 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 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 September 18, 1978, or as there-after revised or amended.
(f) Purchase of oil and gas in time of war
Nothing 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 1341(b) of this title.
(Aug. 7, 1953, ch. 345, § 27, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 666.)
REFERENCES IN TEXT
The Emergency Petroleum Allocation Act of 1973, referred to in subsec. (e)(1)(A), is Pub. L. 93–159, Nov. 27,
2 See

References in Text note below.

§ 1354

TITLE 43—PUBLIC LANDS

1973, 87 Stat. 628, as amended, which was classified generally to chapter 16A (§ 751 et seq.) of Title 15, Commerce and Trade, and was omitted from the Code pursuant to section 760g of Title 15, which provided for the
expiration of the President’s authority under that
chapter on Sept. 30, 1981.
The Natural Gas Act, referred to in subsec. (e)(1)(B),
is act June 21, 1938, ch. 556, 52 Stat. 821, as amended,
which is classified generally to chapter 15B (§ 717 et
seq.) of Title 15. For complete classification of that Act
to the Code, see section 717w of Title 15 and Tables.
TRANSFER OF FUNCTIONS
Functions vested in Secretary of Energy and Department of Energy under or with respect to subsec. (b)(2),
(3) of this section, transferred to, and vested in, Secretary of the Interior, by section 100 of Pub. L. 97–257,
96 Stat. 841, set out as a note under section 7152 of Title
42, The Public Health and Welfare.

§ 1354. Limitations on export of oil or gas
(a) Application of Export Administration provisions
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.
(b) Condition precedent to exportation; express
finding by President of no increase in reliance on imported oil or gas
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) Report of findings by President to Congress;
joint resolution of disagreement with findings of President
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 sixty 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 findings shall cease.
(d) Exchange or temporary exportation of oil
and gas for convenience or efficiency of
transportation
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.
(Aug. 7, 1953, ch. 345, § 28, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 668.)

Page 340
REFERENCES IN TEXT

The Export Administration Act of 1969, referred to in
subsecs. (a) and (b), is Pub. L. 91–184, Dec. 30, 1969, 83
Stat. 841, as amended, which was formerly classified to
sections 2401 to 2413 of the former Appendix to Title 50,
War and National Defense, and which terminated on
Sept. 30, 1979, pursuant to the terms of that Act. See
chapter 56 (§ 4601 et seq.) of Title 50, War and National
Defense.

§ 1355. Restrictions on employment of former officers or employees of Department of the Interior
No full-time officer or employee of the Department of the Interior who directly or indirectly
discharged duties or responsibilities under this
subchapter, 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 grade
GS–16 of the General Schedule shall—
(1) within two years 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;
(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
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.
(Aug. 7, 1953, ch. 345, § 29, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 668.)

Page 341

§ 1356a

TITLE 43—PUBLIC LANDS
REFERENCES IN TEXT

References in laws to the rates of pay for GS–16, 17,
or 18, or to maximum rates of pay under the General
Schedule, to be considered references to rates payable
under specified sections of Title 5, Government Organization and Employees, see section 529 [title I, § 101(c)(1)]
of Pub. L. 101–509, set out in a note under section 5376
of Title 5.

(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.

§ 1356. Documentary, registry and manning requirements

(Aug. 7, 1953, ch. 345, § 30, as added Pub. L. 95–372,
title II, § 208, Sept. 18, 1978, 92 Stat. 669.)

The Executive Schedule, referred to in text, is set out
in section 5311 et seq. of Title 5, Government Organization and Employees.
REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY
RATES

(a) Regulations
Within six months after September 18, 1978,
the Secretary of the Department in which the
Coast Guard is operating shall issue regulations
which require that any vessel, rig, platform, or
other vehicle or structure—
(1) which is used at any time after the oneyear period beginning on the effective date of
such regulations for activities pursuant to this
subchapter 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 subchapter, 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 oneyear period beginning on the effective date of
such regulations for activities pursuant to this
subchapter, 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) Exceptions from design, construction, alteration, and repair requirements
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 September 18, 1978, until such time after
such date as such vehicle or structure is rebuilt.
(c) Exceptions from manning requirements
The regulations issued under subsection (a)(3)
of this section shall not apply—
(1) to any vessel, rig, platform, or other vehicle or structure if—
(A) specific contractual provisions or national registry manning requirements in effect on September 18, 1978, provide to the
contrary;
(B) there are not a sufficient number of
citizens of the United States, or aliens lawfully admitted to the United 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

TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 1356a. Coastal impact assistance program
(a) Definitions
In this section:
(1) Coastal political subdivision
The term ‘‘coastal political subdivision’’
means a political subdivision of a coastal
State any part of which political subdivision
is—
(A) within the coastal zone (as defined in
section 304 of the Coastal Zone Management
Act of 1972 (16 U.S.C. 1453)) of the coastal
State as of August 8, 2005; and
(B) not more than 200 nautical miles from
the geographic center of any leased tract.
(2) Coastal population
The term ‘‘coastal population’’ means the
population, as determined by the most recent
official data of the Census Bureau, of each political subdivision any part of which lies within the designated coastal boundary of a State
(as defined in a State’s coastal zone management program under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.)).
(3) Coastal State
The term ‘‘coastal State’’ has the meaning
given the term in section 304 of the Coastal
Zone Management Act of 1972 (16 U.S.C. 1453).
(4) Coastline
The term ‘‘coastline’’ has the meaning given
the term ‘‘coast line’’ in section 1301 of this
title.
(5) Distance
The term ‘‘distance’’ means the minimum
great circle distance, measured in statute
miles.
(6) Leased tract
The term ‘‘leased tract’’ means a tract that
is subject to a lease under section 1335 or 1337
of this title for the purpose of drilling for, developing, and producing oil or natural gas resources.

§ 1356a

TITLE 43—PUBLIC LANDS

(7) Leasing moratoria
The term ‘‘leasing moratoria’’ means the
prohibitions on preleasing, leasing, and related activities on any geographic area of the
outer Continental Shelf as contained in sections 107 through 109 of division E of the Consolidated Appropriations Act, 2005 (Public Law
108–447; 118 Stat. 3063).
(8) Political subdivision
The term ‘‘political subdivision’’ means the
local political jurisdiction immediately below
the level of State government, including counties, parishes, and boroughs.
(9) Producing State
(A) In general
The term ‘‘producing State’’ means a
coastal State that has a coastal seaward
boundary within 200 nautical miles of the geographic center of a leased tract within any
area of the outer Continental Shelf.
(B) Exclusion
The term ‘‘producing State’’ does not include a producing State, a majority of the
coastline of which is subject to leasing moratoria, unless production was occurring on
January 1, 2005, from a lease within 10 nautical miles of the coastline of that State.
(10) Qualified Outer Continental Shelf revenues
(A) In general
The term ‘‘qualified Outer Continental
Shelf revenues’’ means all amounts received
by the United States from each leased tract
or portion of a leased tract—
(i) lying—
(I) seaward of the zone covered by section 1337(g) of this title; or
(II) within that zone, but to which section 1337(g) of this title does not apply;
and
(ii) the geographic center of which lies
within a distance of 200 nautical miles
from any part of the coastline of any
coastal State.
(B) Inclusions
The term ‘‘qualified Outer Continental
Shelf revenues’’ includes bonus bids, rents,
royalties (including payments for royalty
taken in kind and sold), net profit share payments, and related late-payment interest
from natural gas and oil leases issued under
this subchapter.
(C) Exclusion
The term ‘‘qualified Outer Continental
Shelf revenues’’ does not include any revenues from a leased tract or portion of a
leased tract that is located in a geographic
area subject to a leasing moratorium on
January 1, 2005, unless the lease was in production on January 1, 2005.
(b) Payments to producing States and coastal political subdivisions
(1) In general
The Secretary shall, without further appropriation, disburse to producing States and

Page 342

coastal political subdivisions in accordance
with this section $250,000,000 for each of fiscal
years 2007 through 2010.
(2) Disbursement
In each fiscal year, the Secretary shall disburse to each producing State for which the
Secretary has approved a plan under subsection (c), and to coastal political subdivisions under paragraph (4), such funds as are allocated to the producing State or coastal political subdivision, respectively, under this
section for the fiscal year.
(3) Allocation among producing States
(A) In general
Except as provided in subparagraph (C)
and subject to subparagraph (D), the
amounts available under paragraph (1) shall
be allocated to each producing State based
on the ratio that—
(i) the amount of qualified outer Continental Shelf revenues generated off the
coastline of the producing State; bears to
(ii) the amount of qualified outer Continental Shelf revenues generated off the
coastline of all producing States.
(B) Amount of outer Continental Shelf revenues
For purposes of subparagraph (A)—
(i) the amount of qualified outer Continental Shelf revenues for each of fiscal
years 2007 and 2008 shall be determined
using qualified outer Continental Shelf
revenues received for fiscal year 2006; and
(ii) the amount of qualified outer Continental Shelf revenues for each of fiscal
years 2009 and 2010 shall be determined
using qualified outer Continental Shelf
revenues received for fiscal year 2008.
(C) Multiple producing States
In a case in which more than one producing State is located within 200 nautical
miles of any portion of a leased tract, the
amount allocated to each producing State
for the leased tract shall be inversely proportional to the distance between—
(i) the nearest point on the coastline of
the producing State; and
(ii) the geographic center of the leased
tract.
(D) Minimum allocation
The amount allocated to a producing State
under subparagraph (A) shall be at least 1
percent of the amounts available under paragraph (1).
(4) Payments to coastal political subdivisions
(A) In general
The Secretary shall pay 35 percent of the
allocable share of each producing State, as
determined under paragraph (3) to the coastal political subdivisions in the producing
State.
(B) Formula
Of the amount paid by the Secretary to
coastal political subdivisions under subparagraph (A)—
(i) 25 percent shall be allocated to each
coastal political subdivision in the proportion that—

Page 343

TITLE 43—PUBLIC LANDS

(I) the coastal population of the coastal political subdivision; bears to
(II) the coastal population of all coastal political subdivisions in the producing
State;
(ii) 25 percent shall be allocated to each
coastal political subdivision in the proportion that—
(I) the number of miles of coastline of
the coastal political subdivision; bears
to
(II) the number of miles of coastline of
all coastal political subdivisions in the
producing State; and
(iii) 50 percent shall be allocated in
amounts that are inversely proportional to
the respective distances between the
points in each coastal political subdivision
that are closest to the geographic center of
each leased tract, as determined by the
Secretary.
(C) Exception for the State of Louisiana
For the purposes of subparagraph (B)(ii),
the coastline for coastal political subdivisions in the State of Louisiana without a
coastline shall be considered to be 1⁄3 the average length of the coastline of all coastal
political subdivisions with a coastline in the
State of Louisiana.
(D) Exception for the State of Alaska
For the purposes of carrying out subparagraph (B)(iii) in the State of Alaska, the
amounts allocated shall be divided equally
among the two coastal political subdivisions
that are closest to the geographic center of
a leased tract.
(E) Exclusion of certain leased tracts
For purposes of subparagraph (B)(iii), a
leased tract or portion of a leased tract shall
be excluded if the tract or portion of a leased
tract is located in a geographic area subject
to a leasing moratorium on January 1, 2005,
unless the lease was in production on that
date.
(5) No approved plan
(A) In general
Subject to subparagraph (B) and except as
provided in subparagraph (C), in a case in
which any amount allocated to a producing
State or coastal political subdivision under
paragraph (4) or (5) is not disbursed because
the producing State does not have in effect
a plan that has been approved by the Secretary under subsection (c), the Secretary
shall allocate the undisbursed amount equally among all other producing States.
(B) Retention of allocation
The Secretary shall hold in escrow an undisbursed amount described in subparagraph
(A) until such date as the final appeal regarding the disapproval of a plan submitted
under subsection (c) is decided.
(C) Waiver
The Secretary may waive subparagraph
(A) with respect to an allocated share of a
producing State and hold the allocable share

§ 1356a

in escrow if the Secretary determines that
the producing State is making a good faith
effort to develop and submit, or update, a
plan in accordance with subsection (c).
(c) Coastal impact assistance plan
(1) Submission of State plans
(A) In general
Not later than July 1, 2008, the Governor of
a producing State shall submit to the Secretary a coastal impact assistance plan.
(B) Public participation
In carrying out subparagraph (A), the Governor shall solicit local input and provide for
public participation in the development of
the plan.
(2) Approval
(A) In general
The Secretary shall approve a plan of a
producing State submitted under paragraph
(1) before disbursing any amount to the producing State, or to a coastal political subdivision located in the producing State,
under this section.
(B) Components
The Secretary shall approve a plan submitted under paragraph (1) if—
(i) the Secretary determines that the
plan is consistent with the uses described
in subsection (d); and
(ii) the plan contains—
(I) the name of the State agency that
will have the authority to represent and
act on behalf of the producing State in
dealing with the Secretary for purposes
of this section;
(II) a program for the implementation
of the plan that describes how the
amounts provided under this section to
the producing State will be used;
(III) for each coastal political subdivision that receives an amount under this
section—
(aa) the name of a contact person;
and
(bb) a description of how the coastal
political subdivision will use amounts
provided under this section;
(IV) a certification by the Governor
that ample opportunity has been provided for public participation in the development and revision of the plan; and
(V) a description of measures that will
be taken to determine the availability of
assistance from other relevant Federal
resources and programs.
(3) Amendment
Any amendment to a plan submitted under
paragraph (1) shall be—
(A) developed in accordance with this subsection; and
(B) submitted to the Secretary for approval or disapproval under paragraph (4).
(4) Procedure
Not later than 90 days after the date on
which a plan or amendment to a plan is submitted under paragraph (1) or (3), the Sec-

§ 1356a

TITLE 43—PUBLIC LANDS

retary shall approve or disapprove the plan or
amendment.
(d) Authorized uses
(1) In general
A producing State or coastal political subdivision shall use all amounts received under
this section, including any amount deposited
in a trust fund that is administered by the
State or coastal political subdivision and dedicated to uses consistent with this section, in
accordance with all applicable Federal and
State laws, only for one or more of the following purposes:
(A) Projects and activities for the conservation, protection, or restoration of
coastal areas, including wetland.
(B) Mitigation of damage to fish, wildlife,
or natural resources.
(C) Planning assistance and the administrative costs of complying with this section.
(D) Implementation of a federally-approved marine, coastal, or comprehensive
conservation management plan.
(E) Mitigation of the impact of outer Continental Shelf activities through funding of
onshore infrastructure projects and public
service needs.
(2) Compliance with authorized uses
If the Secretary determines that any expenditure made by a producing State or coastal political subdivision is not consistent with
this subsection, the Secretary shall not disburse any additional amount under this section to the producing State or the coastal political subdivision until such time as all
amounts obligated for unauthorized uses have
been repaid or reobligated for authorized uses.
(3) Limitation
Not more than 23 percent of amounts received by a producing State or coastal political subdivision for any 1 fiscal year shall be
used for the purposes described in subparagraphs (C) and (E) of paragraph (1).
(e) Emergency funding
(1) In general
In response to a spill of national significance
under the Oil Pollution Act of 1990 (33 U.S.C.
2701 et seq.), at the request of a producing
State or coastal political subdivision and notwithstanding the requirements of part 12 of
title 43, Code of Federal Regulations (or a successor regulation), the Secretary may immediately disburse funds allocated under this
section for 1 or more individual projects that
are—
(A) consistent with subsection (d); and
(B) specifically designed to respond to the
spill of national significance.
(2) Approval by Secretary
The Secretary may, in the sole discretion of
the Secretary, approve, on a project by project
basis, the immediate disbursal of the funds
under paragraph (1).
(3) State requirements
(A) Additional information
If the Secretary approves a project for
funding under this subsection that is in-

Page 344

cluded in a plan previously approved under
subsection (c), not later than 90 days after
the date of the funding approval, the producing State or coastal political subdivision
shall submit to the Secretary any additional
information that the Secretary determines
to be necessary to ensure that the project is
in compliance with subsection (d).
(B) Amendment to plan
If the Secretary approves a project for
funding under this subsection that is not included in a plan previously approved under
subsection (c), not later than 90 days after
the date of the funding approval, the producing State or coastal political subdivision
shall submit to the Secretary for approval
an amendment to the plan that includes any
projects funded under paragraph (1), as well
as any information about such projects that
the Secretary determines to be necessary to
ensure that the project is in compliance
with subsection (d).
(C) Limitation
If a producing State or coastal political
subdivision does not submit the additional
information or amendments to the plan required by this paragraph, or if, based on the
information submitted by the Secretary determines that the project is not in compliance with subsection (d), by the deadlines
specified in this paragraph, the Secretary
shall not disburse any additional funds to
the producing State or the coastal political
subdivisions until the date on which the additional information or amendment to the
plan has been approved by the Secretary.
(Aug. 7, 1953, ch. 345, § 31, as added Pub. L.
106–553, § 1(a)(2) [title IX, § 903], Dec. 21, 2000, 114
Stat. 2762, 2762A–124; amended Pub. L. 109–58,
title III, § 384, Aug. 8, 2005, 119 Stat. 739; Pub. L.
111–212, title III, § 3013, July 29, 2010, 124 Stat.
2341.)
REFERENCES IN TEXT
The Coastal Zone Management Act of 1972, referred to
in subsec. (a)(2), is title III of Pub. L. 89–454, as added
by Pub. L. 92–583, Oct. 27, 1972, 86 Stat. 1280, as amended, which is classified generally to chapter 33 (§ 1451 et
seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title note set
out under section 1451 of Title 16 and Tables.
Sections 107 through 109 of division E of the Consolidated Appropriations Act, 2005, referred to in subsec.
(a)(7), are sections 107 to 109 of Pub. L. 108–447, div. E,
title I, Dec. 8, 2004, 118 Stat. 3063, 3064, which are not
classified to the Code.
The Oil Pollution Act of 1990, referred to in subsec.
(e)(1), is Pub. L. 101–380, Aug. 18, 1990, 104 Stat. 484,
which is classified principally to chapter 40 (§ 2701 et
seq.) of Title 33, Navigation and Navigable Waters. For
complete classification of this Act to the Code, see
Short Title note set out under section 2701 of Title 33
and Tables.
AMENDMENTS
2010—Subsec. (e). Pub. L. 111–212 added subsec. (e).
2005—Pub. L. 109–58 amended section catchline and
text generally. Prior to amendment, section consisted
of subsecs. (a) to (g) relating to construction of section,
definitions, authorization of appropriations, payments
to States and political subdivisions, coastal impact assistance plan by the Governor of each producing coast-

Page 345

TITLE 43—PUBLIC LANDS

al State, authorized uses of amounts provided, and repayment of amounts inconsistent with authorized uses.

§ 1356b. Transboundary hydrocarbon agreements
(a) Authorization
After December 26, 2013, the Secretary may
implement the terms of any transboundary hydrocarbon agreement for the management of
transboundary hydrocarbon reservoirs entered
into by the President and approved by Congress.
In implementing such an agreement, the Secretary shall protect the interests of the United
States to promote domestic job creation and ensure the expeditious and orderly development
and conservation of domestic mineral resources
in accordance with all applicable United States
laws governing the exploration, development,
and production of hydrocarbon resources on the
Outer Continental Shelf.
(b) Submission to Congress
(1) In general
No later than 180 days after all parties to a
transboundary hydrocarbon agreement have
agreed to its terms, a transboundary hydrocarbon agreement that does not constitute a
treaty in the judgment of the President shall
be submitted by the Secretary to—
(A) the Speaker of the House of Representatives;
(B) the Majority Leader of the Senate;
(C) the Chair of the Committee on Natural
Resources of the House of Representatives;
and
(D) the Chair of the Committee on Energy
and Natural Resources of the Senate.
(2) Contents of submission
The submission shall include—
(A) any amendments to this subchapter or
other Federal law necessary to implement
the agreement;
(B) an analysis of the economic impacts
such agreement and any amendments necessitated by the agreement will have on domestic exploration, development, and production of hydrocarbon resources on the
Outer Continental Shelf; and
(C) a detailed description of any regulations expected to be issued by the Secretary
to implement the agreement.
(c) Implementation of specific transboundary
agreement with Mexico
The Secretary may take actions as necessary
to implement the terms of the Agreement between the United States of America and the
United Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the Gulf of
Mexico, signed at Los Cabos, February 20, 2012,
including—
(1) approving unitization agreements and related arrangements for the exploration, development, or production of oil and natural gas
from transboundary reservoirs or geological
structures;
(2) making available, in the limited manner
necessary under the agreement and subject to
the protections of confidentiality provided by
the agreement, information relating to the exploration, development, and production of oil

§ 1356b

and natural gas from a transboundary reservoir or geological structure that may be
considered confidential, privileged, or proprietary information under law;
(3) taking actions consistent with an expert
determination under the agreement; and
(4) ensuring only appropriate inspection
staff at the Bureau of Safety and Environmental Enforcement or other Federal agency
personnel designated by the Bureau, the operator, or the lessee have authority to stop work
on any installation or other device or vessel
permanently or temporarily attached to the
seabed of the United States that may be erected thereon for the purpose of resource exploration, development or production activities
as approved by the Secretary.
(d) Savings provisions
Nothing in this section shall be construed—
(1) to authorize the Secretary to participate
in any negotiations, conferences, or consultations with Cuba regarding exploration, development, or production of hydrocarbon resources in the Gulf of Mexico along the United
States maritime border with Cuba or the area
known by the Department of the Interior as
the ‘‘Eastern Gap’’; or
(2) as affecting the sovereign rights and the
jurisdiction that the United States has under
international law over the Outer Continental
Shelf that appertains to it.
(Aug. 7, 1953, ch. 345, § 32, as added Pub. L. 113–67,
div. A, title III, § 304, Dec. 26, 2013, 127 Stat. 1182.)
APPROVAL OF AGREEMENT WITH MEXICO
Pub. L. 113–67, div. A, title III, § 303, Dec. 26, 2013, 127
Stat. 1181, provided that: ‘‘The Agreement between the
United States of America and the United Mexican
States Concerning Transboundary Hydrocarbon Reservoirs in the Gulf of Mexico, signed at Los Cabos, February 20, 2012, is hereby approved.’’

CHAPTER 30—ADMINISTRATION OF PUBLIC
LANDS
SUBCHAPTER I—GENERAL PROVISIONS
Sec.

1361 to 1364. Repealed.
SUBCHAPTER II—SERVICE CHARGES AND EXCESS
PAYMENTS
1371 to 1374. Repealed.
SUBCHAPTER III—DEPOSITS AND FORFEITURES
1381 to 1383. Repealed.
SUBCHAPTER IV—PUBLIC LAND LAW REVIEW
COMMISSION
1391 to 1400. Omitted.
SUBCHAPTER V—CLASSIFICATION OF LANDS TO
PROVIDE FOR DISPOSAL OR INTERIM MANAGEMENT
1411 to 1418. Omitted.
SUBCHAPTER VI—SALE OF PUBLIC LAND
1421 to 1427. Omitted.
SUBCHAPTER VII—SALE OF PUBLIC LANDS
SUBJECT TO UNINTENTIONAL TRESPASS
1431 to 1435. Omitted.
SUBCHAPTER VIII—PUBLIC AIRPORTS
1441.

Lease of contiguous public lands for public
airports; authority of Secretary of the Interior.