through primary, secondary, or tertiary recovery means, reduce or eliminate any royalty or net profit share set forth in the lease(s). With the lessee's consent, the Secretary may make other modifications to the royalty or net profit share terms of the lease in order to achieve these purposes.
An oil and gas lease issued pursuant to this section shall-
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;
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
The Secretary may cancel any lease obtained by fraud or misrepresentation.
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-
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.
The Secretary shall ensure that any activity under this subsection is carried out in a manner that provides for-
The Secretary shall provide for the duration, issuance, transfer, renewal, suspension, and cancellation of a lease, easement, or right-of-way under this subsection.
The Secretary shall require the holder of a lease, easement, or right-of-way granted under this subsection to-
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.
Not later than 270 days after August 8, 2005, the Secretary, in consultation with the Secretary of Defense, the Secretary of the Department in which the Coast Guard is operating, the Secretary of Commerce, heads of other relevant departments and agencies of the Federal Government, and the Governor of any affected State, shall issue any necessary regulations to carry out this subsection.
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.
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.
1 So in original. Probably should be "clause".
2 See References in Text note below.
43 U.S.C. § 1337
EDITORIAL NOTES
REFERENCES IN TEXTThe Emergency Petroleum Allocation Act of 1973, referred to in subsec. (b)(7), is Pub. L. 93-159, Nov. 27, 1973, 87 Stat. 628, 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, 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, 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.
CODIFICATIONIn 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.
AMENDMENTS2022-Subsec. (a)(1)(A), (C). Pub. L. 117-169, §50261(1), substituted "not less than 162/3 percent, but not more than 183/4 percent, during the 10-year period beginning on August 16, 2022, and not less than 162/3 percent thereafter," for "not less than 121/2 per centum".Subsec. (a)(1)(F). Pub. L. 117-169, §50261(2), substituted "not less than 162/3 percent, but not more than 183/4 percent, during the 10-year period beginning on August 16, 2022, and not less than 162/3 percent thereafter," for "no less than 121/2 per centum". Subsec. (a)(1)(H). Pub. L. 117-169, §50261(3), substituted "not less than 162/3 percent, but not more than 183/4 percent, during the 10-year period beginning on August 16, 2022, and not less than 162/3 percent thereafter," for "no less than 12 and 1/2 per centum".2021-Subsec. (p)(1)(C). Pub. L. 117-58, §40343, inserted "storage," before "or transmission". Subsec. (p)(1)(E). Pub. L. 117-58, §40307(b), added subpar. (E).2005- Pub. L. 109-58, §388(c), substituted "Leases, easements, and rights-of-way on the outer Continental Shelf" for "Grant of leases by Secretary" in section catchline. Subsec. (a)(3)(B). Pub. L. 109-58, §346, inserted "and in the Planning Areas offshore Alaska" after "West longitude" in introductory provisions.Subsec. (p). Pub. L. 109-58, §388(a), added subsec. (p).1999-Subsec. (k)(2)(B). Pub. L. 106-53 substituted "a Federal, State, or local government agency" for "an agency of the Federal Government".1998-Subsec. (a)(9). Pub. L. 105-362 struck out par. (9) which related to report to Congress by Secretary of Energy on bidding options for oil and gas leases on outer Continental Shelf land.1995-Subsec. (a)(1)(H), (I). Pub. L. 104-58, §303, added subpar. (H) and redesignated former subpar. (H) as (I).Subsec. (a)(3). Pub. L. 104-58, §302, designated existing provisions as subpar. (A) and added subpars. (B) and (C). 1994-Subsec. (k). Pub. L. 103-426 designated existing provisions as par. (1) and added par. (2). 1987-Subsec. (g)(5)(A). Pub. L. 100-202 substituted "an escrow account established pursuant to an agreement under section 1336 of this title" for "such account" in second sentence, added cl. (i), designated existing indented par. as cl. (ii), substituted "a boundary" for "any boundary", "any additional moneys" for "all moneys", and inserted "or credited to" before "the escrow account".1986-Subsec. (g)(1). Pub. L. 99-272 amended par. (1) generally. Prior to amendment, par. (1) read as follows: "At the time of soliciting nominations for the leasing of lands within three miles of the seaward boundary of any coastal State, the Secretary shall provide the Governor of such State-"(A) an identification and schedule of the areas and regions proposed to be offered for leasing;"(B) all information concerning the geographical, geological, and ecological characteristics of such regions; "(C) an estimate of the oil and gas reserves in the areas proposed for leasing; and"(D) an identification of any field, geological structure, or trap located within three miles of the seaward boundary of such coastal State."Subsec. (g)(2). Pub. L. 99-272 amended par. (2) generally. Prior to amendment, par. (2) read as follows: "After receipt of nominations for any area of the outer Continental Shelf within three miles of the seaward boundary of any coastal State, the Secretary shall inform the Governor of such coastal State of any such area which the Secretary believes should be given further consideration for leasing. The Secretary, in consultation with the Governor of the coastal State, shall then, determine whether any such area may contain one or more oil or gas pools or fields underlying both the outer Continental Shelf and lands subject to the jurisdiction of such State. If, with respect to such area, the Secretary selects a tract or tracts which may contain one or more oil or gas pools or fields underlying both the outer Continental Shelf and lands subject to the jurisdiction of such State, the Secretary shall offer the Governor of such coastal State the opportunity to enter into an agreement concerning the disposition of revenues which may be generated by a Federal lease within such area in order to permit their fair and equitable division between the State and Federal Government."Subsec. (g)(3). Pub. L. 99-272 amended par. (3) generally. Prior to amendment, par. (3) read as follows: "Within ninety days after the offer by the Secretary pursuant to paragraph (2) of this subsection, the Governor shall elect whether to enter into such agreement and shall notify the Secretary of his decision. If the Governor accepts the offer, the terms of any lease issued shall be consistent with the provisions of this subchapter, with applicable regulations, and, to the maximum extent practicable, with the applicable laws of the coastal State. If the Governor declines the offer, or if the parties cannot agree to terms concerning the disposition of revenues from such lease (by the time the Secretary determines to offer the area for lease), the Secretary may nevertheless proceed with the leasing of the area."Subsec. (g)(4). Pub. L. 99-272 amended par. (4) generally. Prior to amendment, par. (4) read as follows: "Notwithstanding any other provision of this subchapter, the Secretary shall deposit in a separate account in the Treasury of the United States all bonuses, royalties, and other revenues attributable to oil and gas pools underlying both the outer Continental Shelf and submerged lands subject to the jurisdiction of any coastal State until such time as the Secretary and the Governor of such coastal State agree on, or if the Secretary and the Governor of such coastal State cannot agree, as a district court of the United States determines, the fair and equitable disposition of such revenues and any interest which has accrued and the proper rate of payments to be deposited in the treasuries of the Federal Government and such coastal State."Subsec. (g)(5) to (7). Pub. L. 99-272 added pars. (5) to (7). 1978-Subsec. (a). Pub. L. 95-372, §205(a), designated existing provisions as par. (1)(A) and (B), and in par. (1)(A) as so redesignated, struck out provisions which restricted authority of Secretary to grant oil and gas leases to situations involving the urgent need for further exploration and development of oil and gas deposits of the submerged lands of the outer Continental Shelf and inserted provisions permitting the promulgation of regulations for the deposit of cash bids in interest-bearing accounts until the Secretary announces his decision on whether to accept the bids with the earned interest paid either to the Treasury or to unsuccessful bidders, in par. (1)(B) as so redesignated, substituted provisions relating to variable royalty bids based on a per centum in amount or value of the production saved, removed, or sold, with either a fixed work commitment based on dollar amount covering exploration or a fixed cash bonus as determined by the Secretary or both for provisions relating to straight royalty bids at not less than 121/2 per centum with a cash bonus fixed by the Secretary, and added pars. (1)(C) to (H) and pars. (2) to (9).Subsec. (b). Pub. L. 95-372, §205(a), redesignated cls. (1) to (4) as pars. (1), (2), (3), and (6) respectively, added pars. (4), (5), and (7), and in par. (1) as so redesignated, inserted provisions authorizing the Secretary to lease tracts larger than 5760 acres if a larger area is necessary to comprise a reasonable economic production unit and in par. (2) as so redesignated, inserted provision to allow up to a 10 year initial period if the longer period is necessary to encourage exploration and development in areas because of unusually deep water or other unusually adverse conditions, and in par. (3) as so redesignated, substituted "payment of amount or value as determined by one of the bidding systems set forth in subsection (a) of this section" for "payment of a royalty of not less than 121/2 per centum, in the amount or value of the production saved, removed, or sold from the lease".Subsecs. (c) to (h). Pub. L. 95-372, §205(b), added subsecs. (c) to (h). Former subsecs. (c) to (h) redesignated (i) to (n).Subsec. (i). Pub. L. 95-372, §205(b), redesignated former subsec. (c) as (i). Former subsec. (i) redesignated (o). Subsec. (j). Pub. L. 95-372, §205(b), redesignated former subsec. (d) as (j). Former subsec. (j), which provided that any person complaining of the cancellation of a lease by the Secretary could have the Secretary's action reviewed in the United States District Court for the District of Columbia by filing a petition for review, was struck out. See section 1349 of this title.Subsecs. (k) to (o). Pub. L. 95-372, §205(b), redesignated former subsecs. (e) to (i) as (k) to (o), respectively.
STATUTORY NOTES AND RELATED SUBSIDIARIES
REGULATIONSSecretary of the Interior required to promulgate regulations to carry out amendment by section 40307(b) of Pub. L. 117-58 not later than 1 year after Nov. 15, 2021, see section 40307(d) of Pub. L. 117-58 set out as a note under section 1331 of this title. 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 FISHERIESCommittee 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 FUNCTIONSFunctions 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, §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.
WAGE RATE REQUIREMENTSFor provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117-58 including authority of Secretary of Labor, see section 18851 of Title 42, The Public Health and Welfare.
CLARIFICATION Pub. L. 117-58, div. D, title III, §40307(c), Nov. 15, 2021, 135 Stat. 1003, provided that: "A carbon dioxide stream injected for the purpose of carbon sequestration under subparagraph (E) of section 8(p)(1) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337(p)(1) ) shall not be considered to be material (as defined in section 3 of the Marine Protection, Research, and Sanctuaries Act of 1972 ( 33 U.S.C. 1402 )) for purposes of that Act ( 33 U.S.C. 1401 et seq.)."
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 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 | 572 |
Texas | 382 |
California | 338 |
Alabama | 66 |
Alaska | 51 |
Mississippi | 14 |
Florida | 0.03 |
($ million) | |
Louisiana | 84 |
Texas | 134 |
California | 289 |
Alabama | 7 |
Alaska | 134 |
Mississippi | 2. |