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

-SOURCE-
(Aug. 7, 1953, ch. 345, Sec. 8, 67 Stat. 468; Pub. L. 95-372, title
II, Sec. 205(a), (b), Sept. 18, 1978, 92 Stat. 640, 644; Pub. L.
99-272, title VIII, Sec. 8003, Apr. 7, 1986, 100 Stat. 148; Pub. L.
100-202, Sec. 101(g) [title I, Sec. 100], Dec. 22, 1987, 101 Stat.
1329-213, 1329-225; Pub. L. 103-426, Sec. 1(a), Oct. 31, 1994, 108
Stat. 4371; Pub. L. 104-58, title III, Secs. 302, 303, Nov. 28,
1995, 109 Stat. 563, 565; Pub. L. 105-362, title IX, Sec. 901(k),
Nov. 10, 1998, 112 Stat. 3290; Pub. L. 106-53, title II, Sec.
215(b)(1), Aug. 17, 1999, 113 Stat. 292.)

-REFTEXT-
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 (Sec. 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 antitrust laws, referred to in subsecs. (c)(3), (4)(B) and
(f), are defined in section 1331 of this title.
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.

-COD-
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, Sec. 7(b), Sept. 6, 1966, 80
Stat. 631, the first section of which enacted Title 5, Government
Organization and Employees.


-MISC1-
AMENDMENTS
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, Sec. 303, added
subpar. (H) and redesignated former subpar. (H) as (I).
Subsec. (a)(3). Pub. L. 104-58, Sec. 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, Sec. 205(a), designated
existing provisions as par. (1)(A) and (B), and in par. (1)(A) as
so redesignated, struck out provisions which restricted authority
of Secretary to grant oil and gas leases to situations involving
the urgent need for further exploration and development of oil and
gas deposits of the submerged lands of the outer Continental Shelf
and inserted provisions permitting the promulgation of regulations
for the deposit of cash bids in interest-bearing accounts until the
Secretary announces his decision on whether to accept the bids with
the earned interest paid either to the Treasury or to unsuccessful
bidders, in par. (1)(B) as so redesignated, substituted provisions
relating to variable royalty bids based on a per centum in amount
or value of the production saved, removed, or sold, with either a
fixed work commitment based on dollar amount covering exploration
or a fixed cash bonus as determined by the Secretary or both for
provisions relating to straight royalty bids at not less than 12
1/2 per centum with a cash bonus fixed by the Secretary, and added
pars. (1)(C) to (H) and pars. (2) to (9).
Subsec. (b). Pub. L. 95-372, Sec. 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 12 1/2 per centum, in the amount or
value of the production saved, removed, or sold from the lease".
Subsecs. (c) to (h). Pub. L. 95-372, Sec. 205(b), added subsecs.
(c) to (h). Former subsecs. (c) to (h) redesignated (i) to (n).
Subsec. (i). Pub. L. 95-372, Sec. 205(b), redesignated former
subsec. (c) as (i). Former subsec. (i) redesignated (o).
Subsec. (j). Pub. L. 95-372, Sec. 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, Sec. 205(b), redesignated
former subsecs. (e) to (i) as (k) to (o), respectively.

-CHANGE-
CHANGE OF NAME
Committee on Natural Resources of House of Representatives
treated as referring to Committee on Resources of House of
Representatives by section 1(a) of Pub. L. 104-14, set out as a
note preceding section 21 of Title 2, The Congress.


-MISC2-
REGULATIONS
Section 305 of title III of Pub. L. 104-58 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
Section 306 of title III of Pub. L. 104-58 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."


-TRANS-
ABOLITION OF HOUSE COMMITTEE ON MERCHANT MARINE AND FISHERIES
Committee on Merchant Marine and Fisheries of House of
Representatives abolished and its jurisdiction transferred by House
Resolution No. 6, One Hundred Fourth Congress, Jan. 4, 1995. For
treatment of references to Committee on Merchant Marine and
Fisheries, see section 1(b)(3) of Pub. L. 104-14, set out as a note
preceding section 21 of Title 2, The Congress.

TRANSFER OF FUNCTIONS
Functions vested in, or delegated to, Secretary of Energy and
Department of Energy under or with respect to subsec. (a)(4) of
this section, transferred to, and vested in, Secretary of the
Interior, by section 100 of Pub. L. 97-257, 96 Stat. 841, set out
as a note under section 7152 of Title 42, The Public Health and
Welfare.
Functions of Secretary of the Interior to promulgate regulations
under this subchapter which relate to fostering of competition for
Federal leases, implementation of alternative bidding systems
authorized for award of Federal leases, establishment of diligence
requirements for operations conducted on Federal leases, setting of
rates for production of Federal leases, and 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, Sec. 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.


-MISC3-
REIMBURSEMENT OF LOCAL INTERESTS
Pub. L. 106-53, title II, Sec. 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, Sec. 101(c) [title I], Apr. 26, 1996,
110 Stat. 1321-156, 1321-166; renumbered title I, Pub. L. 104-140,
Sec. 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
Section 304 of title III of Pub. L. 104-58 provided that: "For
all tracts located in water depths of 200 meters or greater in the
Western and Central Planning Area of the Gulf of Mexico, including
that portion of the Eastern Planning Area of the Gulf of Mexico
encompassing whole lease blocks lying west of 87 degrees, 30
minutes West longitude, any lease sale within five years of the
date of enactment of this title [Nov. 28, 1995], shall use the
bidding system authorized in section 8(a)(1)(H) of the Outer
Continental Shelf Lands Act, as amended by this title [43 U.S.C.
1337(a)(1)(H)], except that the suspension of royalties shall be
set at a volume of not less than the following:
"(1) 17.5 million barrels of oil equivalent for leases in water
depths of 200 to 400 meters;
"(2) 52.5 million barrels of oil equivalent for leases in 400
to 800 meters of water; and
"(3) 87.5 million barrels of oil equivalent for leases in water
depths greater than 800 meters."

DISTRIBUTION OF SECTION 1337(G) ACCOUNT
Section 8004 of title VIII of Pub. L. 99-272 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 572
Texas 382
California 338
Alabama 66
Alaska 51
Mississippi 14
Florida 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 84
Texas 134
California 289
Alabama 7
Alaska 134
Mississippi 2.

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

-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1331, 1332, 1346, 1356a
of this title; title 30 sections 196, 1731a; title 42 section 6508.

-FOOTNOTE-
(!1) So in original. Probably should be "clause".

(!2) See References in Text note below.


-End-



-CITE-
43 USC Sec. 1338 01/19/04

-EXPCITE-
TITLE 43 - PUBLIC LANDS
CHAPTER 29 - SUBMERGED LANDS
SUBCHAPTER III - OUTER CONTINENTAL SHELF LANDS

-HEAD-
Sec. 1338. Disposition of revenues

-STATUTE-
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.

-SOURCE-
(Aug. 7, 1953, ch. 345, Sec. 9, 67 Stat. 469.)

-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1335, 1337 of this title;
title 16 section 470h.

-End-



-CITE-
43 USC Sec. 1338a 01/19/04

-EXPCITE-
TITLE 43 - PUBLIC LANDS
CHAPTER 29 - SUBMERGED LANDS
SUBCHAPTER III - OUTER CONTINENTAL SHELF LANDS

-HEAD-
Sec. 1338a. Moneys received as a result of forfeiture by Outer
Continental Shelf permittee, lessee, or right-of-way holder;
return of excess amounts

-STATUTE-
Notwithstanding section 3302 of title 31, any moneys on and after
November 5, 1990, received as a result of the forfeiture of a bond
or other security by an Outer Continental Shelf permittee, lessee,
or right-of-way holder which does not fulfill the requirements of
its permit, lease, or right-of-way or does not comply with the
regulations of the Secretary shall be credited to the royalty and
offshore minerals management account of the Minerals Management
Service to cover the cost to the United States of any improvement,
protection, or rehabilitation work rendered necessary by the action
or inaction that led to the forfeiture, to remain available until
expended: Provided further, That any portion of the moneys so
credited shall be returned to the permittee, lessee, or
right-of-way holder to the extent that the money is in excess of
the amount expended in performing the work necessitated by the
action or inaction which led to their receipt or, if the bond or
security was forfeited for failure to pay the civil penalty, in
excess of the civil penalty imposed.

-SOURCE-
(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.)

-COD-
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.


-MISC1-
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".

-CHANGE-
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'."


-MISC2-
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.

-End-



-CITE-
43 USC Sec. 1339 01/19/04

-EXPCITE-
TITLE 43 - PUBLIC LANDS
CHAPTER 29 - SUBMERGED LANDS
SUBCHAPTER III - OUTER CONTINENTAL SHELF LANDS

-HEAD-
Sec. 1339. Repealed. Pub. L. 104-185, Sec. 8(b), Aug. 13, 1996, 110
Stat. 1717

-MISC1-
Section, act Aug. 7, 1953, ch. 345, Sec. 10, 67 Stat. 469,
related to requirements for refund of excess payments.

EFFECTIVE DATE OF REPEAL
Section 8(b) of Pub. L. 104-185 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.

-End-



-CITE-
43 USC Sec. 1340 01/19/04

-EXPCITE-
TITLE 43 - PUBLIC LANDS
CHAPTER 29 - SUBMERGED LANDS
SUBCHAPTER III - OUTER CONTINENTAL SHELF LANDS

-HEAD-
Sec. 1340. Geological and geophysical explorations

-STATUTE-
(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 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.

-SOURCE-
(Aug. 7, 1953, ch. 345, Sec. 11, 67 Stat. 469; Pub. L. 95-372,
title II, Sec. 206, Sept. 18, 1978, 92 Stat. 647; Pub. L. 99-68,
Sec. 1(c), July 19, 1985, 99 Stat. 166.)


-MISC1-
AMENDMENTS
1978 - Pub. L. 95-372 designated existing provisions as subsec.
(a)(1) and added subsecs. (a)(2) to (h).

-CHANGE-
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.


-TRANS-
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 productionof Federal leases, and specifying of (continued)