S. 3284 (112th): South Carolina Offshore Drilling Act

112th Congress, 2011–2013. Text as of Jun 11, 2012 (Introduced).

Status & Summary | PDF | Source: GPO

II

112th CONGRESS

2d Session

S. 3284

IN THE SENATE OF THE UNITED STATES

June 11, 2012

introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources

A BILL

To amend the Outer Continental Shelf Lands Act to provide for the inclusion of areas off the coast of South Carolina in the outer Continental Shelf leasing program for fiscal years 2012 through 2017, and for other purposes.

1.

Short title

This Act may be cited as the South Carolina Offshore Drilling Act.

2.

Outer continental shelf oil and gas leasing off the coast of south carolina

Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is amended by adding at the end the following:

(i)

Leasing off the coast of south carolina

(1)

Definitions

In this subsection:

(A)

Qualified revenues

The term qualified revenues means all rentals, royalties, bonus bids, and other sums due and payable to the United States under a lease sale conducted under this subsection.

(B)

State

The term State means the State of South Carolina.

(2)

Authorization of lease sales

The Secretary shall include in the schedule of proposed lease sales under the outer Continental Shelf leasing program for fiscal years 2012 through 2017 prepared under this section any areas located within the administrative boundaries of the State that are more than 50 miles off the coast of the State.

(3)

Leasing of additional areas

(A)

Petition

The Governor of South Carolina, with the concurrence of the State legislature, may submit to the Secretary a petition requesting that the Secretary make available for leasing any portion of the area within the administrative boundaries of the State that is more than 10, but less than 50, miles off the coast of the State.

(B)

Action by secretary

Notwithstanding any other provision of law, the Secretary shall—

(i)

not later than 90 days after the date of receipt of a petition under subparagraph (A), approve the petition; and

(ii)

on approval of the petition, make the area available for leasing in accordance with this subsection and any other applicable provision of law.

(C)

Failure to act

If the Secretary fails to approve a petition in accordance with subparagraph (B), the petition shall be considered to be approved as of the date that is 90 days after the date of receipt of the petition.

(D)

Treatment

Not later than 180 days after the date on which a petition is approved, or considered to be approved, under subparagraph (A) or (B), the Secretary shall—

(i)

treat the petition as a proposed revision to a leasing program under this section; and

(ii)

except as provided in subparagraph (E), initiate a new 5-year outer Continental Shelf oil and gas leasing program to replace the outer Continental Shelf oil and gas leasing program in effect as of that date, which shall include any lease sale for any area covered by the petition.

(E)

Inclusion in subsequent plans

(i)

In general

If there are less than 18 months remaining in the 5-year outer Continental Shelf oil and gas leasing program described in subparagraph (D)(ii), the Secretary, without consultation with any State, shall include the areas covered by the petition in lease sales under the proposed 5-year outer Continental Shelf oil and gas leasing program.

(ii)

Environmental assessment

Before modifying a 5-year outer Continental Shelf oil and gas leasing program for the next 5-year period, the Secretary shall complete an environmental assessment that describes any anticipated environmental effect of leasing in the area covered by the petition.

(4)

Prohibition on leasing certain areas

(A)

Petition

The Governor of the State, with the concurrence of the State legislature, may submit to the Secretary a petition requesting that the Secretary prohibit the leasing of areas within the administrative boundaries of the State that are more than 50, but less than 100, miles off the coast of the State.

(B)

Action by secretary

Not later than 90 days after the date of receipt of a petition under subparagraph (A), the Secretary shall approve the petition.

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3.

Disposition of qualified outer continental shelf revenues

Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) (as amended by section 2) is amended by adding at the end the following:

(j)

Revenue sharing for additional areas

(1)

Bonus bids

If the Governor or legislature of a coastal State requests the Secretary to allow leasing in an outer Continental Shelf area and the Secretary allows the leasing, the coastal State shall, without further appropriation or action, receive 37.5 percent of any bonus bid paid for leasing rights in the area.

(2)

Post leasing revenues

In addition to bonus bids under paragraph (1), a State described in paragraph (1) shall receive, from leasing of the area, 37.5 percent of—

(A)

any lease rental payments;

(B)

any lease royalty payments;

(C)

any royalty proceeds from a sale of royalties taken in kind by the Secretary; and

(D)

any other revenues from a bidding system under section 8.

(3)

Allocation among coastal political subdivisions of states

The Secretary shall pay 20 percent of the allocable share of each coastal State, as determined under this subsection, directly to certain coastal political subdivisions of the coastal State.

(4)

Conservation royalties

After making distributions in accordance with paragraphs (1) through (3), the Secretary shall, without further appropriation or action, distribute a conservation royalty equal to 12.5 percent of Federal royalty revenues derived from an area leased under this section from all areas leased under this section for any year, into the land and water conservation fund established under section 2 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–5) to provide financial assistance to States under section 6 of that Act (16 U.S.C. 460l–8).

(5)

Deficit reduction

After making distributions in accordance with paragraphs (1) through (4), the Secretary shall, without further appropriation or action, distribute an amount equal to 50 percent of Federal royalty revenues derived from all areas leased under this section for any year, into direct Federal deficit reduction.

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