43 U.S.C. § 1337 — Leases, easements, and rights-of-way on

Page 335 TITLE 43—PUBLIC LANDS § 1337 (Aug. 7, 1953, ch. 345, § 7, 67 Stat. 467.) Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS Functions of Secretary of the Interior to promulgate regulations under this subchapter which relate to fos- tering of competition for Federal leases, implementa- tion of alternative bidding systems authorized for award of Federal leases, establishment of diligence re- quirements for operations conducted on Federal leases, setting of rates for production of Federal leases, and specifying of procedures, terms, and conditions for ac- quisition 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 Wel- fare. Section 7152(b) of Title 42 was repealed by Pub. L. 97–100, title II, § 201, Dec. 23, 1981, 95 Stat. 1407, and func- tions 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 respon- sible 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 pro- mulgated in advance, any oil and gas lease on submerged lands of the outer Continental Shelf which are not covered by leases meeting the re- quirements of subsection (a) of section 1335 of this title. Such regulations may provide for the deposit of cash bids in an interest-bearing ac- count until the Secretary announces his deci- sion on whether to accept the bids, with the in- terest earned thereon to be paid to the Treasury as to bids that are accepted and to the unsuc- cessful bidders as to bids that are rejected. The bidding shall be by sealed bid and, at the discre- tion of the Secretary, on the basis of— (A) cash bonus bid with a royalty at not less than 162⁄3 percent, but not more than 183⁄4 per- cent, during the 10-year period beginning on August 16, 2022, and not less than 162⁄3 percent thereafter, fixed by the Secretary in amount or value of the production saved, removed, or sold; (B) variable royalty bid based on a per cen- tum 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 deter- mined 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 slid- ing royalty based on such formulae as the Sec- retary shall determine as equitable to encour- age continued production from the lease area as resources diminish, but not less than 162⁄3 percent, but not more than 183⁄4 percent, dur- ing the 10-year period beginning on August 16, 2022, and not less than 162⁄3 percent thereafter, 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 not less than 162⁄3 percent, but not more than 183⁄4 per- cent, during the 10-year period beginning on August 16, 2022, and not less than 162⁄3 percent thereafter, fixed by the Secretary in amount or value of the production saved, removed, or sold and a fixed per centum share of net prof- its 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 not less than 162⁄3 percent, but not more than 183⁄4 per- cent, during the 10-year period beginning on August 16, 2022, and not less than 162⁄3 percent thereafter, 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 bid- ding systems authorized in subparagraphs (A) through (G), or any other systems of bid vari- ables, terms, and conditions which the Sec- retary determines to be useful to accomplish the purposes and policies of this subchapter, except that no such bidding system or modi- fication 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 en- compassing 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 pro- duction on producing or non-producing leases; or (ii) encourage production of marginal re- sources on producing or non-producing leases; through primary, secondary, or tertiary recov- ery means, reduce or eliminate any royalty or net profit share set forth in the lease(s). With the lessee’s consent, the Secretary may make other modifications to the royalty or net profit share terms of the lease in order to achieve these purposes. (C)(i) Notwithstanding the provisions of this subchapter other than this subparagraph, with Page 336 TITLE 43—PUBLIC LANDS § 1337 1 So in original. Probably should be ‘‘clause’’. respect to any lease or unit in existence on No- vember 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 lo- cated 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 en- compassing 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 eco- nomic in the absence of the relief from the re- quirement 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 Sec- retary prior to such determination. The Sec- retary shall clearly define the information re- quired for a complete application under this sec- tion. 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 produc- tion would not be economic in the absence of the relief from the requirement to pay royalties pro- vided for by clause (i), the Secretary must deter- mine the volume of production from the lease or unit on which no royalties would be due in order to make such new production economically via- ble; 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. Rede- termination of the applicability of clause (i) shall be undertaken by the Secretary when re- quested by the lessee prior to the commence- ment 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 Sec- retary 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 deter- mination 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 redetermina- tion. (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 produc- tion 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 fol- lowing 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 de- velopment activities pursuant to a Develop- ment Operations Coordination Document, or supplement thereto that would expand produc- tion 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 deter- mined 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 produc- tion 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 roy- alties due, with interest but without penalty, or can apply for a refund, with interest, of any overpayment. (vi) During the production of volumes deter- mined pursuant to clause (ii) or (iii) of this sub- paragraph, in any year during which the arith- metic average of the closing prices on the New York Mercantile Exchange for natural gas ex- ceeds $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 deter- mined pursuant to clauses 1 (ii) or (iii). Esti- mated royalty payments will be made if such av- erage of the closing prices for the previous year exceeds $3.50. After the end of the calendar year, when the new average price can be calculated, lessees will pay any royalties due, with interest but without penalty, or can apply for a refund, with interest, of any overpayment. (vii) The prices referred to in clauses (v) and (vi) of this subparagraph shall be changed during any calendar year after 1994 by the percentage, Page 337 TITLE 43—PUBLIC LANDS § 1337 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 para- graph 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 para- graph, and they supersede other rules only to the extent that they are inconsistent there- with; and (ii) with full recognition of the constitu- tional 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 im- mediately 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 re- ferred 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 consider- ation of the resolution or to discharge the com- mittee from further consideration of any other resolution with respect to the same bidding sys- tem 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 resolu- tion 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 resolu- tion. 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 com- mittee be made with respect to any other reso- lution 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 consider- ation 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 recon- sider 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 be- tween those favoring and those opposing the res- olution. A motion further to limit debate is not debatable. An amendment to, or motion to re- commit, 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 con- sideration of a resolution with respect to a bid- ding system, and motions to proceed to the con- sideration of other business, shall be decided without debate. (J) Appeals from the decisions of the Chair re- lating to the application of the rules of the Sen- ate or the House of Representatives, as the case may be, to the procedure relating to a resolu- tion 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 deter- mine which bidding alternatives will best ac- complish the purposes and policies of this sub- chapter, require, as to no more than 10 per cen- tum of the tracts offered each year, each bidder to submit bids for any area of the outer Conti- nental 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 alter- native 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 para- graph (1) of this subsection, other than the sys- tem authorized by subparagraph (A), shall be ap- plied to not less than 20 per centum and not more than 60 per centum of the total area of- fered 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 sub- chapter. (6) At least ninety days prior to notice of any lease sale under subparagraph (D), (E), (F), or, if appropriate, (H) of paragraph (1), the Secretary shall by regulation establish rules to govern the calculation of net profits. In the event of any dispute between the United States and a lessee concerning the calculation of the net profits under the regulation issued pursuant to this paragraph, the burden of proof shall be on the lessee. (7) After an oil and gas lease is granted pursu- ant 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 ex- ploration work commitment, or (ii) a perform- ance bond in form and substance and with a surety satisfactory to the Secretary, in the Page 338 TITLE 43—PUBLIC LANDS § 1337 2 See References in Text note below. 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 subpara- graph, the principal amount of such cash de- posit or bond may, in accordance with regula- tions, be periodically reduced upon proof, sat- isfactory to the Secretary, that a portion of the exploration work commitment has been satisfied; (B) 50 per centum of all exploration expendi- tures on, or directly related to, the lease, in- cluding, but not limited to (i) geological inves- tigations and related activities, (ii) geo- physical investigations including seismic, geo- magnetic, and gravity surveys, data proc- essing 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 com- mitment, 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 as- signed to such exploration work shall be so in- cluded; 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 com- mitment 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 rea- sons 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 se- lected 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 hun- dred and sixty acres, as the Secretary may de- termine, unless the Secretary finds that a larger area is necessary to comprise a reason- able economic production unit; (2) be for an initial period of— (A) five years; or (B) not to exceed ten years where the Sec- retary finds that such longer period is nec- essary to encourage exploration and develop- ment 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 quan- tities, 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 re- quirements and the approval of the develop- ment and production plan required by this subchapter; (5) provide for suspension or cancellation of the lease during the initial lease term or thereafter pursuant to section 1334 of this title; (6) contain such rental and other provisions as the Secretary may prescribe at the time of offering the area for lease; and (7) provide a requirement that the lessee offer 20 per centum of the crude oil, conden- sate, and natural gas liquids produced on such lease, at the market value and point of deliv- ery 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 Sec- retary shall allow the Attorney General, in con- sultation 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 Commis- sion, may agree to a shorter review period. (2) The Attorney General may, in consultation with the Federal Trade Commission, conduct such antitrust review on the likely effects the issuance of such leases would have on competi- tion as the Attorney General, after consultation with the Federal Trade Commission, deems ap- propriate and shall advise the Secretary with re- spect to such review. The Secretary shall pro- vide such information as the Attorney General, after consultation with the Federal Trade Com- mission, may require in order to conduct any antitrust review pursuant to this paragraph and to make recommendations pursuant to para- graph (3) of this subsection. (3) The Attorney General, after consultation with the Federal Trade Commission, may make such recommendations to the Secretary, includ- ing the nonacceptance of any bid, as may be ap- propriate to prevent any situation inconsistent with the antitrust laws. If the Secretary deter- mines, 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 main- tain a situation inconsistent with the antitrust laws, the Secretary may— (A) refuse (i) to accept an otherwise quali- fied 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. Page 339 TITLE 43—PUBLIC LANDS § 1337 (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 re- views, make recommendations, or seek appro- priate relief. (B) Neither the issuance of a lease nor any- thing 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 Sec- retary finds, after notice and hearing, that the bidder is not meeting due diligence require- ments on other leases. (e) Secretary’s approval for sale, exchange, as- signment, or other transfer of leases No lease issued under this subchapter may be sold, exchanged, assigned, or otherwise trans- ferred 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 sea- ward 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 sea- ward boundary of any coastal State, and subse- quently as new information is obtained or devel- oped 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 con- cerning the geographical, geological, and eco- logical 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, geo- logical structure, or trap. The provisions of the first sentence of sub- section (c) and the provisions of subsections (e)–(h) of section 1352 of this title shall be appli- cable to the release by the Secretary of any in- formation to any coastal State under this para- graph. 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 Sec- retary 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 bound- ary 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 re- spect 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, royal- ties, and other revenues (derived from any bid- ding 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 per- centage of surface acreage of the tract that lies within such three nautical miles. Except as pro- vided 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 inter- est thereon. The remaining balance of such reve- nues 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 po- tentially hydrocarbon-bearing area may under- lie the Federal and State boundary, the Sec- retary 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 hy- drocarbon-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 poten- tially 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 de- scribed 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 be- tween the United States and a State which is Page 340 TITLE 43—PUBLIC LANDS § 1337 subject to an agreement under section 1336 of this title, the Secretary shall credit to the ac- count established pursuant to such agreement all bonuses, rents, and royalties, and other reve- nues (derived from any bidding system author- ized 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 ac- count. Proceeds of an escrow account estab- lished pursuant to an agreement under section 1336 of this title shall be distributed as follows: (i) Twenty-seven percent of all bonuses, rents, and royalties, and other revenues (de- rived from any bidding system authorized under subsection (a)(1)), excluding Federal in- come 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 as- serted by the Federal Government in the boundary dispute, together with all accrued interest thereon, shall be paid to the State ei- ther— (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 dis- pute 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 depos- ited 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 ac- cordance 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, in- cluding joint lease sales, occurring after Sep- tember 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 ac- count and the States’ shares described in para- graph (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 di- vided equally among such States. (h) State claims to jurisdiction over submerged lands Nothing contained in this section shall be con- strued 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 de- posits in the submerged lands of the outer Con- tinental Shelf, the Secretary is authorized to grant to the qualified persons offering the high- est cash bonuses on a basis of competitive bid- ding sulphur leases on submerged lands of the outer Continental Shelf, which are not covered by leases which include sulphur and meet the re- quirements 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 consider- ation, and without priority or preference ac- corded to oil and gas lessees on the same area. (j) Terms and provisions of sulphur leases A sulphur lease issued by the Secretary pursu- ant to this section shall (1) cover an area of such size and dimensions as the Secretary may deter- mine, (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 well- head, and (4) contain such rental provisions and such other terms and provisions as the Sec- retary may by regulation prescribe at the time of offering the area for lease. (k) Other mineral leases; award to highest bid- der; 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 bo- nuses 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 Sec- retary may negotiate with any person an agree- ment 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 de- velopment of the resources. No fee shall be as- sessed directly or indirectly under this subpara- graph against a Federal, State, or local govern- ment agency. Page 341 TITLE 43—PUBLIC LANDS § 1337 (C) The Secretary may, through this para- graph 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 re- sources 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 bid- ding, authorized by this section shall be pub- lished at least thirty days before the date of sale in accordance with rules and regulations pro- mulgated 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 ulti- mate settlement or adjudication of con- troversies The issuance of any lease by the Secretary pursuant to this subchapter, or the making of any interim arrangements by the Secretary pur- suant to section 1336 of this title shall not preju- dice the ultimate settlement or adjudication of the question as to whether or not the area in- volved 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 en- ergy and related purposes (1) In general The Secretary, in consultation with the Sec- retary of the Department in which the Coast Guard is operating and other relevant depart- ments and agencies of the Federal Govern- ment, may grant a lease, easement, or right- of-way on the outer Continental Shelf for ac- tivities not otherwise authorized in this sub- chapter, 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, pro- duction, or storage of oil or natural gas, ex- cept that a lease, easement, or right-of-way shall not be granted in an area in which oil and gas preleasing, leasing, and related ac- tivities are prohibited by a moratorium; (B) support transportation of oil or natural gas, excluding shipping activities; (C) produce or support production, trans- portation, storage, or transmission of energy from sources other than oil and gas; (D) use, for energy-related purposes or for other authorized marine-related purposes, facilities currently or previously used for ac- tivities 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 re- lated activities are prohibited by a morato- rium; or (E) provide for, support, or are directly re- lated to the injection of a carbon dioxide stream into sub-seabed geologic formations for the purpose of long-term carbon seques- tration. (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 pay- ment of 27 percent of the revenues received by the Federal Government as a result of pay- ments 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 eq- uitable 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 un- less the Secretary determines after public no- tice 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 man- ner 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 inter- ests 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 reason- able 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 re- lating to, a lease, easement, or right-of- way for an area of the outer Continental Shelf; and Page 342 TITLE 43—PUBLIC LANDS § 1337 (ii) any other use of the sea or seabed, in- cluding use for a fishery, a sealane, a po- tential site of a deepwater port, or naviga- tion; (K) public notice and comment on any pro- posal submitted for a lease, easement, or right-of-way under this subsection; and (L) oversight, inspection, research, moni- toring, and enforcement relating to a lease, easement, or right-of-way under this sub- section. (5) Lease duration, suspension, and cancella- tion 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 pro- tect 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 af- fected State and local governments The Secretary shall provide for coordination and consultation with the Governor of any State or the executive of any local govern- ment that may be affected by a lease, ease- ment, or right-of-way under this subsection. (8) Regulations Not later than 270 days after August 8, 2005, the Secretary, in consultation with the Sec- retary of Defense, the Secretary of the Depart- ment in which the Coast Guard is operating, the Secretary of Commerce, heads of other rel- evant 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, super- sedes, limits, or modifies the jurisdiction, re- sponsibility, 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 ex- terior boundaries of any unit of the National Park System, National Wildlife Refuge Sys- tem, 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; Pub. L. 117–58, div. D, title III, §§ 40307(b), 40343, Nov. 15, 2021, 135 Stat. 1003, 1033; Pub. L. 117–169, title V, § 50261, Aug. 16, 2022, 136 Stat. 2056.) Editorial Notes REFERENCES IN TEXT The Emergency Petroleum Allocation Act of 1973, re- ferred 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 Presi- dent’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 com- plete classification of this Act to the Code, see Short Title note set out under section 1501 of Title 33 and Ta- bles. 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 chap- ter 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, re- ferred 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’’ sub- stituted for ‘‘section 10(a) of the Administrative Proce- dures 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 sec- tion, to reflect the probable intent of Congress. AMENDMENTS 2022—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 there- after,’’ for ‘‘not less than 121⁄2 per centum’’. Subsec. (a)(1)(F). Pub. L. 117–169, § 50261(2), sub- stituted ‘‘not less than 162⁄3 percent, but not more than 183⁄4 percent, during the 10-year period beginning on Au- gust 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), sub- stituted ‘‘not less than 162⁄3 percent, but not more than 183⁄4 percent, during the 10-year period beginning on Au- gust 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 sub- par. (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 lon- gitude’’ in introductory provisions. Page 343 TITLE 43—PUBLIC LANDS § 1337 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 En- ergy 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 in- dented par. as cl. (ii), substituted ‘‘a boundary’’ for ‘‘any boundary’’, ‘‘any additional moneys’’ for ‘‘all moneys’’, and inserted ‘‘or credited to’’ before ‘‘the es- crow 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 Gov- ernor 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 re- gions; ‘‘(C) an estimate of the oil and gas reserves in the areas proposed for leasing; and ‘‘(D) an identification of any field, geological struc- ture, or trap located within three miles of the sea- ward boundary of such coastal State.’’ Subsec. (g)(2). Pub. L. 99–272 amended par. (2) gen- erally. 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 in- form the Governor of such coastal State of any such area which the Secretary believes should be given fur- ther consideration for leasing. The Secretary, in con- sultation 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 ju- risdiction of such State. If, with respect to such area, the Secretary selects a tract or tracts which may con- tain 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 equi- table division between the State and Federal Govern- ment.’’ Subsec. (g)(3). Pub. L. 99–272 amended par. (3) gen- erally. 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 Gov- ernor 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) gen- erally. Prior to amendment, par. (4) read as follows: ‘‘Notwithstanding any other provision of this sub- chapter, the Secretary shall deposit in a separate ac- count 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 Sec- retary and the Governor of such coastal State cannot agree, as a district court of the United States deter- mines, the fair and equitable disposition of such reve- nues 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 fur- ther exploration and development of oil and gas depos- its of the submerged lands of the outer Continental Shelf and inserted provisions permitting the promulga- tion of regulations for the deposit of cash bids in inter- est-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 nec- essary to comprise a reasonable economic production unit and in par. (2) as so redesignated, inserted provi- sion to allow up to a 10 year initial period if the longer period is necessary to encourage exploration and devel- opment 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 roy- alty 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 sub- secs. (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 pro- vided 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), redesig- nated former subsecs. (e) to (i) as (k) to (o), respec- tively. Statutory Notes and Related Subsidiaries REGULATIONS Secretary of the Interior required to promulgate reg- ulations 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. Page 344 TITLE 43—PUBLIC LANDS § 1337 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 imple- ment the provisions of this title [amending this section and enacting provisions set out as notes under this sec- tion] 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 sub- mitted 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 off- shore 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 ref- erences to Committee on Merchant Marine and Fish- eries, 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 En- ergy and Department of Energy under or with respect to subsec. (a)(4) of this section, transferred to, and vest- ed 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 fos- tering of competition for Federal leases, implementa- tion of alternative bidding systems authorized for award of Federal leases, establishment of diligence re- quirements for operations conducted on Federal leases, setting of rates for production of Federal leases, and specifying of procedures, terms, and conditions for ac- quisition 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 re- turned to Secretary of the Interior. See House Report No. 97–315, pp. 25, 26, Nov. 5, 1981. WAGE RATE REQUIREMENTS For 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 au- thority 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 Conti- nental 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 Com- mandant of the Coast Guard, and the Secretary of De- fense, 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 be- fore the date on which the mapping initiative is estab- lished, to the maximum extent practicable. ‘‘(3) INCLUSIONS.—Mapping carried out under the map- ping initiative shall include an indication of the loca- tions 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 con- servation and management of living marine re- sources.’’ 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 reduc- tion 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 estab- lished (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 ex- pended 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 Cen- tral 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; Page 345 TITLE 43—PUBLIC LANDS § 1338a ‘‘(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 dis- tribute 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 sub- section (b)(1)(A) of this section for the period prior to October 1, 1985. ‘‘(b)(1) As a fair and equitable disposition of all reve- nues (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 ef- fect 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 ac- crued 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 Fed- eral 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 fis- cal year in which this title is enacted, 3 percent of the following sums in each of the five fiscal years fol- lowing 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 pay- ments 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 ac- crue 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 im- mediately distribute such sums with accrued interest to the State of Louisiana.’’ § 1338. Disposition of revenues All rentals, royalties, and other sums paid to the Secretary or the Secretary of the Navy under any lease on the outer Continental Shelf for the period from June 5, 1950, to date, and thereafter shall be deposited in the Treasury of the United States and credited to miscellaneous receipts. (Aug. 7, 1953, ch. 345, § 9, 67 Stat. 469.) § 1338a. Moneys received as a result of forfeiture by Outer Continental Shelf permittee, lessee, or right-of-way holder; deposits and transfers to decommissioning account; return of excess amounts Notwithstanding section 3302 of title 31, any moneys hereafter received as a result of the for- feiture of a bond or other security by an Outer Continental Shelf permittee, lessee, or right-of- way holder that does not fulfill the require- ments of its permit, lease, or right-of-way or does not comply with the regulations of the Sec- retary, or as a bankruptcy distribution or settle- ment associated with such failure or noncompli- ance, shall be credited to a separate account es- tablished in the Treasury for decommissioning activities and shall be available to the Bureau of Ocean Energy Management without further ap- propriation or fiscal year limitation to cover the cost to the United States of any improvement, protection, rehabilitation, or decommissioning work rendered necessary by the action or inac- tion that led to the forfeiture or bankruptcy dis- tribution or settlement, to remain available until expended: Provided further, That amounts deposited into the decommissioning account may be allocated to the Bureau of Safety and Environmental Enforcement for such costs: Pro- vided further, That any moneys received for such costs currently held in the Ocean Energy Man- agement account shall be transferred to the de- commissioning account: Provided further, That any portion of the moneys so credited shall be returned to the bankruptcy estate, 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 ac- tion 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 pen- alty imposed. (Pub. L. 118–42, div. E, title I, § 123, Mar. 9, 2024, 138 Stat. 249.) Editorial Notes CODIFICATION Section was enacted as part of the Department of the Interior and Related Agencies Appropriations Act, 2024, and also as part of the Consolidated Appropriations Act, 2024, and not as part of the Outer Continental Shelf Lands Act which comprises this subchapter.