Amends the Outer Continental Shelf Lands Act to instruct the Secretary of the Interior to agree to any lessee request to amend any lease issued as a result of a Central or Western Gulf of Mexico lease sale held between January 1, 1998, and December 31, 1999, to incorporate price thresholds applicable to certain royalty suspension provisions in the amount of $34.73 per barrel (2005 dollars) for oil and of $4.34 per million Btu (2005 dollars) for natural gas, adjusted for changes in the implicit price deflator.
Directs the Secretary to establish a conservation of resources fee for producing leases at $9 per barrel for oil and $1.25 per million Btu for gas (2006 dollars). Applies such fee only to leases issued with deep water royalty relief for which royalties are not being paid when prices exceed specified amounts per barrel.
Instructs the Secretary of the Treasury to deposit the royalty revenues in the Treasury, to be available to the Secretary of the Interior, without further appropriation, for FY2007-FY2016, for disbursement to Gulf producing states and coastal political subdivisions.
Expresses the intent of Congress: (1) that this Act result in a healthy and growing American industrial, manufacturing, transportation, and service sector employing America's workforce in the development of affordable energy from the OCS; and (2) to OCS monitor deployment of personnel and material to encourage development of American technology and manufacturing, as well as the establishment of important industrial facilities to support expanded access to American resources.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6401 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 6401
To promote the fair production of oil and gas on the Outer Continental
Shelf.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 6, 2006
Mr. Melancon (for himself and Mr. Abercrombie) introduced the following
bill; which was referred to the Committee on Resources
_______________________________________________________________________
A BILL
To promote the fair production of oil and gas on the Outer Continental
Shelf.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. LEASES, EASEMENTS, AND RIGHTS-OF-WAY ON THE OUTER
CONTINENTAL SHELF.
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
is amended by adding at the end the following:
``(q) Royalty Suspension Provisions.--
``(1) In general.--Subject to paragraphs (2) through (4),
the Secretary shall agree to a request by any lessee to amend
any lease issued as a result of a Central or Western Gulf of
Mexico lease sale held during the period beginning on January
1, 1998, and ending on December 31, 1999, to incorporate price
thresholds applicable to royalty suspension provisions in the
amount of $34.73 per barrel (2005 dollars) for oil and for
natural gas of $4.34 per million Btu (2005 dollars).
``(2) Adjustment.--The oil and natural gas price thresholds
established under paragraph (1) shall be adjusted during any
calendar year after 2005 by the percentage, if any, by which
the implicit price deflator for the gross domestic product as
computed and published by the Department of Commerce changed
during the preceding calendar year.
``(3) New royalty suspension volumes.--After the date of
enactment of this subsection, price thresholds shall apply to
any royalty suspension volumes granted by the Secretary.
``(4) Effective date.--Any amended lease shall impose the
new price thresholds effective beginning October 1, 2006.
``(r) Conservation of Resources Fees.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall establish, by
regulation, a conservation of resources fee for producing
leases that will apply to new and existing leases which shall
be established at $9 per barrel for oil and $1.25 per million
Btu for gas (2006 dollars).
``(2) Covered areas.--The fee shall only apply to leases
issued with deep water royalty relief for which royalties are
not being paid when prices exceed $34.73 per barrel for oil and
$4.34 per million Btu for natural gas (2005 dollars).
``(3) Effective date.--A fee imposed under this subsection
shall apply to production that occurs on or after October 1,
2006.''.
SEC. 2. COASTAL IMPACT ASSISTANCE PROGRAM.
Section 31(b) of the Outer Continental Shelf Lands Act (43 U.S.C.
1356a(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``The'' and inserting the
following:
``(A) Fiscal years 2007 through 2010.--The''; and
(B) by adding at the end the following:
``(B) Certain royalty revenues.--Notwithstanding
section 9, of the amount of any royalty revenues
payable to the United States from any lease issued with
deep water royalty relief as the result of a Central or
Western Gulf of Mexico lease sale held during the
period beginning on January 1, 1998, and ending on
December 31, 1999, the Secretary of the Treasury shall
deposit--
``(i) the amount of the royalty revenues in
a special account in the Treasury, to be
available to the Secretary of the Interior,
without further appropriation, for each of
fiscal years 2007 through 2016, for
disbursement to Gulf producing States and
coastal political subdivisions in accordance
with this section, except that the amount made
available under this clause shall not exceed a
total of $5,450,000,000; and
``(ii) any remainder of the royalty
revenues in the general fund of the Treasury,
to be used for deficit reduction.''; and
(2) in paragraph (3)(B)--
(A) in clause (i), by striking ``and'' after the
semicolon at the end;
(B) in clause (ii), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(iii) the amount of qualified outer
Continental Shelf revenues for each of fiscal
years 2011 through 2016 shall be determined
using qualified outer Continental Shelf
revenues received for fiscal year 2010.''.
SEC. 3. SENSE OF THE CONGRESS TO BUY AND BUILD AMERICAN.
(a) Buy and Build American.--It is the intention of the Congress
that this Act, among other things, result in a healthy and growing
American industrial, manufacturing, transportation, and service sector
employing the vast talents of America's workforce to assist in the
development of affordable energy from the Outer Continental Shelf.
Moreover, the Congress intends to monitor the deployment of personnel
and material in the Outer Continental Shelf to encourage the
development of American technology and manufacturing to enable United
States workers to benefit from this Act by good jobs and careers, as
well as the establishment of important industrial facilities to support
expanded access to American resources.
(b) Safeguard for Extraordinary Ability.--Section 30(a) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the
matter preceding paragraph (1) by striking ``regulations which'' and
inserting ``regulations that shall be supplemental and complimentary
with and under no circumstances a substitution for the provisions of
the Constitution and laws of the United States extended to the subsoil
and seabed of the outer Continental Shelf pursuant to section 4(a)(1)
of this Act, except insofar as such laws would otherwise apply to
individuals who have extraordinary ability in the sciences, arts,
education, or business, which has been demonstrated by sustained
national or international acclaim, and that''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Resources.
Referred to the Subcommittee on Energy and Mineral Resources.
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