Innovation in Offshore Leasing Act
(Sec. 2) This bill amends the Outer Continental Shelf Lands Act to authorize the Bureau of Ocean Energy Management (BOEM) to conduct offshore oil and gas lease sales through Internet-based bidding methods.
Before conducting any Internet-based sale, BOEM is required to gather information from each company present for bidding at the 10 most recent oil and gas lease sales conducted under the Outer Continental Shelf Lands Act. The information is designed to provide the bidding public sufficient opportunity to share ideas, methods, and concerns regarding Internet-based leasing.
All Internet-based sales must meet certain requirements and BOEM shall publicly disclose statistical data regarding any sale on the day the sale is executed.
Additionally, BOEM must conduct at least one Internet-based lease sale in the Gulf of Mexico Outer Continental Shelf Region within 18 months.
BOEM must also provide a report to Congress within 90 days after it conducts a third Internet-based lease sale.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5577 Introduced in House (IH)]
<DOC>
114th CONGRESS
2d Session
H. R. 5577
To amend the Outer Continental Shelf Lands Act to authorize the
Secretary of the Interior to conduct offshore oil and gas lease sales
through Internet-based live lease sales, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 24, 2016
Mr. Graves of Louisiana (for himself and Mr. Lowenthal) introduced the
following bill; which was referred to the Committee on Natural
Resources
_______________________________________________________________________
A BILL
To amend the Outer Continental Shelf Lands Act to authorize the
Secretary of the Interior to conduct offshore oil and gas lease sales
through Internet-based live lease sales, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Innovation in Offshore Leasing
Act''.
SEC. 2. INTERNET-BASED OFFSHORE OIL AND GAS LEASE SALES.
(a) Authorization.--Section 8 of the Outer Continental Shelf
Leasing Act (43 U.S.C. 1337) is amended by adding at the end the
following:
``(q) Internet-Based Oil and Gas Lease Sales.--
``(1) In general.--In order to modernize the Nation's
offshore leasing program to ensure the best return to the
Federal taxpayer, reduce fraud, and ensure a fair and
competitive leasing process, the Secretary may conduct lease
sales under this section through Internet-based, sealed-bidding
methods.
``(2) Sale requirements.--Sales conducted under paragraph
(1) shall ensure--
``(A) live web streaming of the bid reading
process;
``(B) a bidder verification process that discloses
to bidders at least 24 hours before the bid reading
process a list of bids submitted by all persons on each
lease tract without disclosing bid amounts;
``(C) the ability for a bidder to correct a
possible misreading of a submitted bid;
``(D) an independent, third-party observer from the
Department of the Interior's Office of the Inspector
General present during the bid reading process to
prevent wrongdoing, independently certify the bidding
process, and maintain transparency;
``(E) data security measures to ensure bidder data
is kept secure; and
``(F) a participant survey soliciting voluntary
feedback from bidders on the bidding process.
``(3) Transparency in sale-day statistics.--
``(A) Requirement.--The Secretary shall publicly
disclose statistical data regarding each lease sale
under this subsection, on the day the sale is executed.
``(B) Included data.--Among data disclosed, the
Secretary shall include--
``(i) the total value of high bids;
``(ii) the number of tracts offered;
``(iii) the number of acres offered;
``(iv) the number of tracts receiving bids;
``(v) the number of acres receiving bids;
``(vi) the total number of bids;
``(vii) the average number of bids per
tract;
``(viii) the total number of bidders
participating;
``(ix) bidding statistics by water depth;
``(x) the name of the entity that submitted
each bid, the amount of the bid, and the tract
for which the bid was submitted;
``(xi) of tracts receiving bids, the number
of bids per tract by water depth;
``(xii) the tract receiving the greatest
number of bids;
``(xiii) the tract receiving the highest
bid; and
``(xiv) any other statistical data that may
be disclosed in accordance with this Act.
``(C) Data transparency.--The Secretary shall
ensure all data regarding lease sales under this
subsection is publicly available and easily accessible,
free of charge, on the Internet, including for download
and aggregation in machine-readable format.''.
(b) Modernizing Leasing Through Collaboration.--
(1) In general.--Before conducting the first Internet-based
lease sale under the amendment made by this section, the
Secretary of the Interior shall issue a request for information
from each company present for bidding at the ten most recent
oil and gas lease sales conducted by the Secretary under the
Outer Continental Shelf Lands Act, in order to provide the
bidding public sufficient opportunity to share innovative
ideas, methods, and concerns regarding Internet-based leasing.
(2) Integration of information.--The Secretary shall
review, evaluate, and integrate suggestions and concerns
collected under paragraph (1) as the Secretary works to
modernize the offshore leasing process through Internet-based
leasing options.
(3) User workshop.--The Secretary shall conduct not less
than one user workshop with viable bidders prior to conducting
an Internet-based lease sale to provide the bidding public with
an opportunity to beta test any prototype of an Internet-based
leasing platform.
(c) Deadline for Gulf of Mexico Lease Sale.--Not later than one
year after the date of the enactment of this Act, the Secretary of the
Interior shall conduct at least one Internet-based lease sale under the
amendment made by subsection (a) for leasable acreage in the Gulf of
Mexico.
(d) Evaluating Internet-Based Offshore Leasing.--Not later than 90
days after the third Internet-based lease sale conducted under the
amendment made by subsection (a), the Secretary of the Interior shall
analyze all such Internet-based lease sales and transmit to Congress a
thorough analysis of the sales. The analysis shall include--
(1) estimates of increases or decreases in such lease
sales, compared to sales conducted by non-Internet-based
bidding, in--
(A) the number of bidders;
(B) the average amount of bids;
(C) the highest bid; and
(D) the lowest bid;
(2) an estimate of the total cost or savings to the
Department of the Interior as a result of such sales, compared
to sales conducted by non-Internet-based bidding;
(3) voluntary and anonymous feedback from persons
participating in such sales, on the Internet-based leasing
process and potential areas for improvement in such sales; and
(4) an evaluation of the demonstrated or expected
effectiveness of different structures for lease sales that may
provide an opportunity to better maximize bidder participation,
ensure the highest return to the Federal taxpayers, minimize
opportunities for fraud or collusion, and ensure the security
and integrity of the leasing process.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Natural Resources.
Referred to the Subcommittee on Energy and Mineral Resources.
Subcommittee Hearings Held.
Subcommittee on Energy and Mineral Resources Discharged.
Committee Consideration and Mark-up Session Held.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Unanimous Consent.
Reported (Amended) by the Committee on Natural Resources. H. Rept. 114-713.
Reported (Amended) by the Committee on Natural Resources. H. Rept. 114-713.
Placed on the Union Calendar, Calendar No. 552.
Mr. Thompson (PA) moved to suspend the rules and pass the bill, as amended.
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Considered under suspension of the rules. (consideration: CR H5069-5070)
DEBATE - The House proceeded with forty minutes of debate on H.R. 5577.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H5069-5070)
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5069-5070)
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources.