43 Usc 1331

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43 USC CHAPTER 29, SUBCHAPTER III: OUTER CONTINENTAL SHELF LANDS
From Title 43—PUBLIC LANDS
CHAPTER 29—SUBMERGED LANDS

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 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;
(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;

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(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 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.)
EDITORIAL NOTES

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

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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 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 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).
STATUTORY NOTES AND RELATED SUBSIDIARIES

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; Pub. L. 115–97, title II, §20002, Dec. 22, 2017, 131 Stat.
2237, 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

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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.
"(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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"(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
designate 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

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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.—
"(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

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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.
"(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—
"(A) $500,000,000 for each of fiscal years 2016 through 2019;
"(B) $650,000,000 for each of fiscal years 2020 and 2021; and

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"(C) $500,000,000 for each of fiscal years 2022 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 such sums as may be necessary to carry out the provisions of this Act [enacting this
subchapter]."
EXECUTIVE DOCUMENTS

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

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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, including 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.

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WILLIAM J. CLINTON.

EX. ORD. NO. 13795. IMPLEMENTING AN AMERICA-FIRST OFFSHORE ENERGY
STRATEGY
Ex. Ord. No. 13795, Apr. 28, 2017, 82 F.R. 20815, provided:
By the authority vested in me as President by the Constitution and the laws of the United States of
America, including the Outer Continental Shelf Lands Act, 43 U.S.C. 1331 et seq., and in order to
maintain global leadership in energy innovation, exploration, and production, it is hereby ordered as
follows:
Section 1. Findings. America must put the energy needs of American families and businesses first
and continue implementing a plan that ensures energy security and economic vitality for decades to
come. The energy and minerals produced from lands and waters under Federal management are
important to a vibrant economy and to our national security. Increased domestic energy production
on Federal lands and waters strengthens the Nation's security and reduces reliance on imported
energy. Moreover, low energy prices, driven by an increased American energy supply, will benefit
American families and help reinvigorate American manufacturing and job growth. Finally, because
the Department of Defense is one of the largest consumers of energy in the United States, domestic
energy production also improves our Nation's military readiness.
Sec. 2. Policy. It shall be the policy of the United States to encourage energy exploration and
production, including on the Outer Continental Shelf, in order to maintain the Nation's position as a
global energy leader and foster energy security and resilience for the benefit of the American
people, while ensuring that any such activity is safe and environmentally responsible.
Sec. 3. Implementing an America-First Offshore Energy Strategy. To carry out the policy set forth in
section 2 of this order, the Secretary of the Interior shall:
(a) as appropriate and consistent with applicable law, including the procedures set forth in section
1344 of title 43, United States Code, in consultation with the Secretary of Defense, give full
consideration to revising the schedule of proposed oil and gas lease sales, as described in that
section, so that it includes, but is not limited to, annual lease sales, to the maximum extent permitted
by law, in each of the following Outer Continental Shelf Planning Areas, as designated by the
Bureau of Ocean Energy Management (BOEM) (Planning Areas): Western Gulf of Mexico, Central
Gulf of Mexico, Chukchi Sea, Beaufort Sea, Cook Inlet, Mid-Atlantic, and South Atlantic;
(b) ensure that any revisions made pursuant to subsection (a) of this section do not hinder or
affect ongoing lease sales currently scheduled as part of the 2017–2022 Outer Continental Shelf Oil
and Gas Leasing Proposed Final Program, as published on November 18, 2016; and
(c) develop and implement, in coordination with the Secretary of Commerce and to the maximum
extent permitted by law, a streamlined permitting approach for privately funded seismic data
research and collection aimed at expeditiously determining the offshore energy resource potential of
the United States within the Planning Areas.
Sec. 4. Responsible Planning for Future Offshore Energy Potential. (a) The Secretary of Commerce
shall, unless expressly required otherwise, refrain from designating or expanding any National
Marine Sanctuary under the National Marine Sanctuaries Act, 16 U.S.C. 1431 et seq., unless the
sanctuary designation or expansion proposal includes a timely, full accounting from the Department
of the Interior of any energy or mineral resource potential within the designated area—including
offshore energy from wind, oil, natural gas, methane hydrates, and any other sources that the
Secretary of Commerce deems appropriate—and the potential impact the proposed designation or
expansion will have on the development of those resources. The Secretary of the Interior shall
provide any such accounting within 60 days of receiving a notification of intent to propose any such
National Marine Sanctuary designation or expansion from the Secretary of Commerce.
(b) The Secretary of Commerce, in consultation with the Secretary of Defense, the Secretary of
the Interior, and the Secretary of Homeland Security, shall conduct a review of all designations and
expansions of National Marine Sanctuaries, and of all designations and expansions of Marine
National Monuments under the Antiquities Act of 1906, recently recodified at sections 320301 to
320303 of title 54, United States Code, designated or expanded within the 10-year period prior to
the date of this order.
(i) The review under this subsection shall include:
(A) an analysis of the acreage affected and an analysis of the budgetary impacts of the costs

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of managing each National Marine Sanctuary or Marine National Monument designation or
expansion;
(B) an analysis of the adequacy of any required Federal, State, and tribal consultations
conducted before the designations or expansions; and
(C) the opportunity costs associated with potential energy and mineral exploration and
production from the Outer Continental Shelf, in addition to any impacts on production in the
adjacent region.
(ii) Within 180 days of the date of this order, the Secretary of Commerce, in consultation with the
Secretary of Defense and the Secretary of the Interior, shall report the results of the review under
this subsection to the Director of the Office of Management and Budget, the Chairman of the Council
on Environmental Quality, and the Assistant to the President for Economic Policy.
(c) To further streamline existing regulatory authorities, Executive Order 13754 of December 9,
2016 (Northern Bering Sea Climate Resilience), is hereby revoked.
Sec. 5. Modification of the Withdrawal of Areas of the Outer Continental Shelf from Leasing Disposition. The
body text in each of the memoranda of withdrawal from disposition by leasing of the United States
Outer Continental Shelf issued on December 20, 2016, January 27, 2015, and July 14, 2008, is
modified to read, in its entirety, as follows:
"Under the authority vested in me as President of the United States, including section 12(a) of the
Outer Continental Shelf Lands Act, 43 U.S.C. 1341(a), I hereby withdraw from disposition by
leasing, for a time period without specific expiration, those areas of the Outer Continental Shelf
designated as of July 14, 2008, as Marine Sanctuaries under the Marine Protection, Research, and
Sanctuaries Act of 1972, 16 U.S.C. 1431–1434, 33 U.S.C. 1401 et seq."
Nothing in the withdrawal under this section affects any rights under existing leases in the affected
areas.
Sec. 6. Reconsideration of Notice to Lessees and Financial Assurance Regulatory Review. The Secretary
of the Interior shall direct the Director of BOEM to take all necessary steps consistent with law to
review BOEM's Notice to Lessees No. 2016–N01 of September 12, 2016 (Notice to Lessees and
Operators of Federal Oil and Gas, and Sulfur Leases, and Holders of Pipeline Right-of-Way and
Right-of-Use and Easement Grants in the Outer Continental Shelf), and determine whether
modifications are necessary, and if so, to what extent, to ensure operator compliance with lease
terms while minimizing unnecessary regulatory burdens. The Secretary of the Interior shall also
review BOEM's financial assurance regulatory policy to determine the extent to which additional
regulation is necessary.
Sec. 7. Reconsideration of Well Control Rule. The Secretary of the Interior shall review the Final Rule
of the Bureau of Safety and Environmental Enforcement (BSEE) entitled "Oil and Gas and Sulfur
Operations in the Outer Continental Shelf-Blowout Preventer Systems and Well Control," 81 Fed.
Reg. 25888 (April 29, 2016), for consistency with the policy set forth in section 2 of this order, and
shall publish for notice and comment a proposed rule revising that rule, if appropriate and as
consistent with law. The Secretary of the Interior shall also take all appropriate action to lawfully
revise any related rules and guidance for consistency with the policy set forth in section 2 of this
order. Additionally, the Secretary of the Interior shall review BSEE's regulatory regime for offshore
operators to determine the extent to which additional regulation is necessary.
Sec. 8. Reconsideration of Proposed Offshore Air Rule. The Secretary of the Interior shall take all steps
necessary to review BOEM's Proposed Rule entitled "Air Quality Control, Reporting, and
Compliance," 81 Fed. Reg. 19718 (April 5, 2016), along with any related rules and guidance, and, if
appropriate, shall, as soon as practicable and consistent with law, consider whether the proposed
rule, and any related rules and guidance, should be revised or withdrawn.
Sec. 9. Expedited Consideration of Incidental Harassment Authorizations, Incidental-Take, and Seismic
Survey Permits. The Secretary of the Interior and the Secretary of Commerce shall, to the maximum
extent permitted by law, expedite all stages of consideration of Incidental Take Authorization
requests, including Incidental Harassment Authorizations and Letters of Authorization, and Seismic
Survey permit applications under the Outer Continental Shelf Lands Act, 43 U.S.C. 1331 et seq., and
the Marine Mammal Protection Act, 16 U.S.C. 1361 et seq.
Sec. 10. Review of National Oceanic and Atmospheric Administration (NOAA) Technical Memorandum
NMFS–OPR–55. The Secretary of Commerce shall review NOAA's Technical Memorandum NMFS–
OPR–55 of July 2016 (Technical Guidance for Assessing the Effects of Anthropogenic Sound on

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Marine Mammal Hearing) for consistency with the policy set forth in section 2 of this order and,
after consultation with the appropriate Federal agencies, take all steps permitted by law to rescind or
revise that guidance, if appropriate.
Sec. 11. Review of Offshore Arctic Drilling Rule. The Secretary of the Interior shall immediately take all
steps necessary to review the Final Rule entitled "Oil and Gas and Sulfur Operations on the Outer
Continental Shelf—Requirements for Exploratory Drilling on the Arctic Outer Continental Shelf," 81
Fed. Reg. 46478 (July 15, 2016), and, if appropriate, shall, as soon as practicable and consistent with
law, publish for notice and comment a proposed rule suspending, revising, or rescinding this rule.
Sec. 12. Definition. As used in this order, "Outer Continental Shelf Planning Areas, as designated
by the Bureau of Ocean Energy Management" means those areas delineated in the diagrams on
pages S–5 and S–8 of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Draft Proposed
Program, as published by the BOEM in January 2015, with the exception of any buffer zones
included in such planning documents.
Sec. 13. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise
affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary,
administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of
appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or
procedural, enforceable at law or in equity by any party against the United States, its departments,
agencies, or entities, its officers, employees, or agents, or any other person.
DONALD J. TRUMP.
1

See References in Text note below.

2

So in original. Probably should be "accordance".

§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 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 well-trained personnel
using technology, precautions, and techniques sufficient to prevent or minimize the likelihood of blowouts, loss

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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.)
EDITORIAL NOTES

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).
1

So in original. The period probably should be a semicolon.

§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 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 laws of
which apply to such artificial island, installation, or other device pursuant to such subsection, except that until the

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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.)
EDITORIAL NOTES

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.

AMENDMENTS
1984—Subsec. (b). Pub. L. 98–426 substituted "Longshore and Harbor Workers' Compensation

Act" for "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

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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.
STATUTORY NOTES AND RELATED SUBSIDIARIES

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.
1

So in original. Probably should be "settling".

§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

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of serious, irreparable, or immediate harm or damage to life (including fish and other aquatic life), to
property, to any mineral deposits (in areas leased or not leased), or to the marine, coastal, or human
environment, and for the extension of any permit or lease affected by suspension or prohibition under clause
(A) or (B) by a period equivalent to the period of such suspension or prohibition, except that no permit or lease
shall be so extended when such suspension or prohibition is the result of gross negligence or willful violation of
such lease or permit, or of regulations issued with respect to such lease or permit;
(2) with respect to cancellation of any lease or permit—
(A) that such cancellation may occur at any time, if the Secretary determines, after a hearing, that—
(i) continued activity pursuant to such lease or permit would probably cause serious harm or damage to
life (including fish and other aquatic life), to property, to any mineral (in areas leased or not leased), to the
national security or defense, or to the marine, coastal, or human environment;
(ii) the threat of harm or damage will not disappear or decrease to an acceptable extent within a
reasonable period of time; and
(iii) the advantages of cancellation outweigh the advantages of continuing such lease or permit 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.
(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

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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 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.
(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

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(A) 3 The Congress of the United States finds that the unrestrained competitive production of hydrocarbons
from a common hydrocarbon-bearing 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 hydrocarbon-bearing 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.)
EDITORIAL NOTES

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".
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).
STATUTORY NOTES AND RELATED SUBSIDIARIES

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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 Continental 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."
EXECUTIVE DOCUMENTS

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.
1

So in original. Probably should be "subparagraph".

2

So in original. Probably should be "lessee".

3

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

§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

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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;
(8) such lease provides for a royalty to the lessor on oil and gas of not less than 12½ 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 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

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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.)
EDITORIAL NOTES

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.
STATUTORY NOTES AND RELATED SUBSIDIARIES

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.)
STATUTORY NOTES AND RELATED SUBSIDIARIES

TRANSFER OF FUNCTIONS

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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.

§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 12½ 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 12½
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 12½ 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 ½ per centum fixed by the Secretary 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

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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 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
(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

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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 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 Senate or the House of
Representatives, as the case may be, to the procedure relating to a resolution with respect to a bidding system
shall be decided without debate.
(5)(A) During the five-year period commencing on 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

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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 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, condensate, and natural gas
liquids produced on such lease, at the market value and point of delivery applicable to Federal royalty oil, to
small or independent refiners as defined in 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

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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.
(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 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

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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 (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 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.

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(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.
(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
right-of-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

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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 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-of-way 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-of-way 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-ofway 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-of-way under this subsection.
(6) Security
The Secretary shall require the holder of a lease, easement, or right-of-way granted under this subsection
to—
(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

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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.)
EDITORIAL NOTES

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

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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 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 interestbearing 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

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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 12½ 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 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 12½ 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.
STATUTORY NOTES AND RELATED SUBSIDIARIES

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

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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 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 non-Federal 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

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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:
($ million)
Louisiana
Texas
California
Alabama
Alaska
Mississippi
Florida

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:
($ million)
Louisiana
Texas
California
Alabama
Alaska
Mississippi

84
134
289
7
134
2.

"(2) The acceptance of any payment by a State under this section shall satisfy and release any

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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 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."
1

So in original. Probably should be "clause".

2

See References in Text note below.

§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 rightof-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.)
EDITORIAL NOTES

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".
STATUTORY NOTES AND RELATED SUBSIDIARIES

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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.
EXECUTIVE DOCUMENTS

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.
STATUTORY NOTES AND RELATED SUBSIDIARIES

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 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

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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 submitted to the Secretary,
the process to be used for the approval of such revision shall be the same as set forth in subsection (c) of this
section.
(2) All exploration activities pursuant to any lease shall be conducted in accordance with an approved
exploration plan or an approved revision of such plan.
(f) 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.

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(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.)
EDITORIAL NOTES

AMENDMENTS
1978—Pub. L. 95–372 designated existing provisions as subsec. (a)(1) and added subsecs. (a)(2)

to (h).
STATUTORY NOTES AND RELATED SUBSIDIARIES

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.
1

So in original. Probably should be "undertaken;".

§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 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

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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.)
EDITORIAL NOTES

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.
EXECUTIVE DOCUMENTS

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 IX, §901(l)(1), Nov. 10, 1998, 112 Stat. 3290
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 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

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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 gasbearing 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.
(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 leasing program to
the Congress, the Attorney General, and the Governors of affected States, and shall publish such proposed
program in the Federal Register. Each Governor shall, upon request, submit a copy of the proposed leasing
program to the executive of any local government affected by the proposed program.
(d) 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

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(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 administered 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.)
STATUTORY NOTES AND RELATED SUBSIDIARIES

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,

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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".

§1345. Coordination and consultation with affected State and local
governments
(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.
(Aug. 7, 1953, ch. 345, §19, as added Pub. L. 95–372, title II, §208, Sept. 18, 1978, 92 Stat. 652.)

§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

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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 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.)
EDITORIAL NOTES

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."
STATUTORY NOTES AND RELATED SUBSIDIARIES

TERMINATION OF REPORTING REQUIREMENTS
For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of
any annual, 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

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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.
(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.)
STATUTORY NOTES AND RELATED SUBSIDIARIES

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

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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 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.
(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.)
EDITORIAL NOTES

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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."
STATUTORY NOTES AND RELATED SUBSIDIARIES

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 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

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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 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 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.)
EDITORIAL NOTES

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.
STATUTORY NOTES AND RELATED SUBSIDIARIES

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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.
1

So in original. Probably should be "Appeals".

§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.
(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.)
EDITORIAL NOTES

AMENDMENTS

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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).
STATUTORY NOTES AND RELATED SUBSIDIARIES

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, 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 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.

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(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
recommendations to the Secretary, the executive of any affected local government must forward his
recommendations to the Governor of his State. Such comments and recommendations shall be made available
to the public upon request. In addition, any interested person may submit comments and recommendations.
(h) 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 areas, exceptional
resource values in the marine or coastal environment, or other exceptional circumstances, that (i)

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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.
(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

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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 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.)
EDITORIAL NOTES

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 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

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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 comments
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 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.

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(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.)
STATUTORY NOTES AND RELATED SUBSIDIARIES

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 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.

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(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 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.)
EDITORIAL NOTES

REFERENCES IN TEXT
The Emergency Petroleum Allocation Act of 1973, referred to in subsec. (e)(1)(A), 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.
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.
STATUTORY NOTES AND RELATED SUBSIDIARIES

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.

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1

So in original. Probably should be "may".

2

See References in Text note below.

§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.)
EDITORIAL NOTES

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

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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.)
EDITORIAL NOTES

REFERENCES IN TEXT
The Executive Schedule, referred to in text, is set out in section 5311 et seq. of Title 5,
Government Organization and Employees.
STATUTORY NOTES AND RELATED SUBSIDIARIES

REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY RATES
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.
§1356. Documentary, registry and manning requirements
(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 one-year 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 one-year 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

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

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.
(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

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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 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

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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—
(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 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.

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(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 Secretary 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).

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(3) State requirements
(A) Additional information
If the Secretary approves a project for funding under this subsection that is 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 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.)
EDITORIAL NOTES

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 coastal 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.

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(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 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.)
STATUTORY NOTES AND RELATED SUBSIDIARIES

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."

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