Order Code RL34667
Outer Continental Shelf Leasing: Side-by-Side
Comparison of Five Legislative Proposals
Updated September 16, 2008
Marc Humphries
Analyst in Energy Policy
Resources, Science, and Industry Division

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Outer Continental Shelf Leasing: Side-by-Side
Comparison of Five Legislative Proposals
Summary
This report provides a side-by-side comparison of three bills and two proposals,
each of which addresses oil and gas development in the outer continental shelf
(OCS). None of the bills has passed its respective chamber. One of the proposals,
H.R. 6899, the “Comprehensive American Energy Security and Taxpayer Protection
Act,” is expected to come to the House floor the week of September 15, 2008.
The moratoria on oil and gas leasing in much of the OCS has become a major
issue in Congress and also in the Presidential campaign. This report describes the
background of OCS leasing and the various positions taken by proponents and
opponents of leasing. It then compares the provisions of three bills that have been
introduced with reported summaries of the House proposal and the Senate proposal,
the “New Energy Reform Act of 2008.”

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Contents
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
List of Tables
Table 1. Comparison of H.R. 6566, H.R. 6670, H.R. 6709, H.R. 6899, and the
Senate Draft Energy Reform Act of 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

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Outer Continental Shelf Leasing: Side-by-
Side Comparison of Five Legislative
Proposals
This report provides a side-by-side comparison of three bills and two proposals
— H.R. 6566, H.R. 6670, H.R. 6709, H.R. 6899 (the House Leadership Proposal),
and the Senate Draft Proposal — which address oil and gas development in the outer
continental shelf (OCS). None of the bills has passed its respective chamber. The text
below provides background on the issues. The side-by-side table gives a description
of selected sections of the bills.
Recent Developments
President Bush announced on June 18, 2008, that he would like to open areas
of the Outer Continental Shelf (OCS) for oil and gas development currently under
presidential and congressional moratoria (discussed in more detail below). The
President stated that he would lift the executive branch moratoria only after Congress
did so legislatively. But, on July 14, 2008, President Bush reversed his position and
lifted the executive ban on the OCS imposed in 1990 by President George H.W.
Bush. Senator John McCain, among others, has called on Congress to lift the offshore
drilling moratoria as well. Further, the Administration proposes to begin planning
its next five-year leasing program that would, if approved, be implemented as early
as 2010 — two years ahead of schedule. The proposed new five-year program would
supersede the current five-year leasing program from 2007-2012. The
Administration argues that a new five-year lease program beginning in 2010 would
allow any newly opened OCS areas (if the congressional moratoria is lifted this year)
to be offered in a lease sale sooner than if they remained on their current schedule.
Since the President lifted the executive ban, members of Congress have
introduced legislation that would lift the congressional prohibition (in part or
completely) against leasing and development of oil and natural gas in the OCS. The
legislation section of this report summarizes several of those bills, including the
House Leadership proposal (H.R. 6899). Many in Congress, however, oppose lifting
the offshore ban. They argue that there are still several million acres leased onshore
and offshore but not yet producing and that production from these lands could
increase U.S. oil supply.
How much oil could be brought into production in the short-term (from non-
producing leased lands or those under the moratoria) and its impact on price is
uncertain. An attempt to lift the offshore moratoria with an amendment to the
FY2009 Interior, Environment, and Related Agencies Appropriations bill during the
House subcommittee markup was defeated by a vote of 6-9. Meanwhile, on June 26,

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2008, under suspension of the rules (which requires a two-thirds majority for
passage), the House defeated a measure (H.R. 6251) that would have increased rental
fees on non-producing oil and gas leases, and denied new federal leases to those not
diligently developing the leases they have.
Background
Oil and gas leasing has been prohibited on much of the outer continental shelf
(OCS) since the 1980s. Congress has enacted OCS leasing moratoria for each of
fiscal years 1982-2006 in the annual Interior and Related Agencies Appropriations
bill (now the Interior and Environment and Related Agencies Appropriations bill),
allowing leasing only in the Gulf of Mexico (except near Florida) and parts of
Alaska. President George H.W. Bush in 1990 issued a presidential directive ordering
the Department of the Interior (DOI) not to conduct offshore leasing or preleasing
activity in areas covered by the annual legislative moratoria until 2000. In 1998,
President Clinton extended the offshore leasing prohibition until 2012.
Proponents of the moratoria contend that offshore drilling would pose
unacceptable environmental risks and threaten coastal tourism industries, whereas
supporters of expanded offshore leasing counter that more domestic oil and gas
production is vital for the nation’s energy security.
The Outer Continental Shelf Lands Act of 1953 (OCSLA), as amended,
provides for the leasing of OCS lands in a manner that protects the environment and
returns revenues to the federal government in the form of bonus bids, rents, and
royalties.1 OCSLA requires the Secretary of the Interior to submit five-year leasing
programs that specify the time, location, and size of the areas to be offered. Each
five-year leasing program entails a lengthy multistep process that includes
environmental impact statements. After a public comment period, a final proposed
plan is submitted to the President and Congress. The latest plan went into effect July
1, 2002. Public hearings for the 2007-2012 leasing program are underway. States
and interest groups are filing comments on future lease sale areas for the 2007-2012
leasing program.2
States with energy development off their shores in federal waters3 have been
seeking a larger portion of the federal revenues generated in those areas. They
particularly want more assistance for coastal areas that may be most affected by
onshore and near-shore activities that support offshore energy development.
1 43 U.S.C. 1331 et seq.
2 Federal Register Notice, 70 FR 49669.
3 State jurisdiction is typically limited to three nautical miles seaward of the baseline from
which the breadth of the territorial sea is measured. However, the state jurisdiction off the
Gulf Coast of Florida and Texas extends nine nautical miles and for Louisiana, three
imperial nautical miles. Federal jurisdiction extends, typically, 200 nautical miles seaward
of the baseline from which the breadth of the territorial sea is measured. One nautical mile
equals 1.15 statute miles.

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CRS-3
Proponents of these proposals look to the rates at which funds are given to
jurisdictions where onshore energy development occurs on federal lands within those
jurisdictions. Coastal destruction has received more attention in Louisiana —
especially hard-hit by hurricanes in 2005 — where many square miles of wetlands
have been lost to the ocean each year. Widespread energy-related development is
thought to contribute to coastal losses. Currently, the affected states receive some
revenue directly from offshore oil and gas leases in federal waters under section 8(g)
of OCSLA and under the Gulf of Mexico Energy Security Act of 2006. (P.L. 109-
432).4 This is in contrast to the 50% share of direct revenues to states that have
onshore federal leases within their boundaries. Opponents point out the budget
implications that would result from such a loss of federal revenues.
4 The 8(g) revenue stream is the result of a 1978 OCSLA amendment that provides for a
“fair and equitable” sharing of revenues from section 8(g) common pool lands. These lands
are defined in the amendments as submerged acreage lying outside the three-nautical mile
state-federal demarcation line, typically extending to a total of six nautical miles offshore
but that include a pool of oil common to both federal and state jurisdiction. The states’ share
of the revenue (27%) was established by the OCSLA amendments of 1985 (P.L. 99-272) and
is paid directly to the states. Payments to the states previously had been placed in escrow,
which were then paid out between 1986 and 2001.

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Table 1. Comparison of H.R. 6566, H.R. 6670, H.R. 6709, H.R. 6899, and the
Senate Draft Energy Reform Act of 2008
Senate Draft Energy
Provision
H.R. 6566
H.R. 6670
H.R. 6709
H.R. 6899
Reform Act of 2008
Short Title
American Energy Act
Long-Term Energy
National Conservation,
Comprehensive
New Energy Reform
(Title I)
Assurance and Security
Environment, and
American Energy
Act of 2008
Act of 2008
Energy Act
Security and Taxpayer
(Title I)
Protection Act
Grants of Leases by
Sec. 109. The Secretary
No similar provision.
No similar provision.
No similar provision.
No similar provision.
Secretary
of the Interior would
(natural gas-only leases
establish regulations for
and conservation of
natural gas-only leases
resources fee)
in the OCS. The value
of the leases for bidding
purposes would exclude
the value of any
potential crude oil.
However, oil could be
produced if the adjacent
state government did
not object. In addition,
an annual conservation
of resources fee of
$3.75 per acre would be
established and applied
to new and existing
non-producing leases.

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Senate Draft Energy
Provision
H.R. 6566
H.R. 6670
H.R. 6709
H.R. 6899
Reform Act of 2008
Gulf of Mexico Energy
Sec. 122. GOMESA
Sec. 101. Amends
Sec. 101. GOMESA
No changes to
Sec. 401. Would open
Security Act of 2006
would be repealed.
GOMESA to allow
would be repealed.
GOMESA.
the Eastern Gulf of
(GOMESA) (sec. 104
drilling in the Eastern
Mexico in areas beyond
(a) of P.L. 109-432)
Gulf of Mexico beyond
50 miles off the
100 miles of the Florida
coastline for oil and
coastline.
natural gas leasing, but
only after consultation
with the Secretary of
Defense.
Reservation of Lands
Sec.111. Section 12 of
Sec. 123. OCS
Sec. 101. OCS
Would allow states to
Sec. 401. The
and Rights
OCSLA would be
moratoria/withdrawals
congressional moratoria
“opt-in” to oil and gas
southeastern states
(establishing where
amended (43 U.S.C.
are terminated outside
are repealed but leases
development 50-100
(Virginia, North
drilling can take place)
1341). Defines
the Gulf of Mexico
may not be issued
miles off their coasts if
Carolina, South
presidential withdrawal
beyond 100 miles of the
within 25 miles of a
a state legislature enacts
Carolina, and Georgia )
authority and limits to
coastline. A Governor
state’s coastline. The
a state law authorizing
may submit a petition
25% the amount of
of a state outside the
secretary may not issue
oil and gas
for approval to the
acreage withdrawn
Gulf of Mexico may
leases in areas between
development.
Secretary of the Interior
beyond 100 miles from
submit a request to the
25-50 miles off a state’s
to conduct an oil and
any coastline. The
Secretary of the Interior
coastline if the state
Beyond 100 miles
natural gas lease sale
areas within 50 miles of
to lease for oil and
passes a law, within one
offshore in areas now
beyond 50 miles from
the state’s coastline
natural gas between 25-
year of enactment of
under the congressional
its coast.
would be off-limits
100 miles of a state’s
this act, disapproving of
moratoria would be
unless states submit a
coastline if the coastal
such leases.
open to oil and gas
petition for leasing to
state passes a law to
development.
the Secretary of the
authorize such request.
Interior. The acreage
National Marine
between 50 and 100
sanctuaries, national
miles from the state’s
marine monuments, and
coastline would be
the Georges Bank (in
available for leasing
the North Atlantic

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Senate Draft Energy
Provision
H.R. 6566
H.R. 6670
H.R. 6709
H.R. 6899
Reform Act of 2008
unless the state
Planning Area) would
petitioned the Secretary
remain off-limits.
for a withdrawal from
leasing for a five-year
period. The state may
request a five-year
extension for
withdrawal multiple
times. There would be a
prohibition of leasing
east of the military
mission line as defined
in the bill unless a
waiver is granted by the
Secretary of Defense.
Disposition of Receipts
Sec. 110. A revenue
Sec. 102. Revenue
Sec. 102. Revenue
No similar provision.
Sec. 401. Revenue
(Revenue Sharing for
sharing plan for coastal
sharing (with limits)
sharing with states
sharing provisions in
new leases)
states would include
with the states would
would include revenues
the bill would allow for
tracts within 100 miles
include all qualified
from qualified leases to
Southeastern states -
of the states’ coastlines
revenues to be
be shared as follows:
Virginia, North
and tracts beyond 100
distributed as follows:
30% to the general fund
Carolina, South
miles of the states’
25% to the general fund
of the U.S. Treasury,
Carolina, and Georgia
coastlines. There
of the U.S. Treasury,
30% to producing
to receive 37.5% of
would be phased-in
25% to the Energy
states, 40% split among
revenues generated
sharing and immediate
Independence and
several reserve accounts
from leases 50 to 100
sharing for both areas.
Security Fund that
(e.g., Conservation
off their coasts. If two
Under the phased-in
would be established by
Reserve, Environment
or more neighboring
plan, the states’ share
the act, and 50% to a
Restoration Reserve)
states “opt-in,” then the
would eventually reach
special account for the
that would be
revenue share would
42.5% of the revenues
states.
established under this
increase to 50%.

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Senate Draft Energy
Provision
H.R. 6566
H.R. 6670
H.R. 6709
H.R. 6899
Reform Act of 2008
generated from offshore
act.
leases. Phased-in
sharing would be
different for those
leases held within 4
marine leagues of a
state’s coastline. For all
areas the phased-in
sharing plan includes
lease tracts available
under the 2002-2007
leasing program in
effect prior to
enactment of this act,
and those lease tracts in
production prior to
October 1, 2005, that
were not available for
leasing under the 2002-
2007 leasing program.
Immediate revenue
sharing of 42.5% would
occur from offshore
leases not under the
phased-in plan.
The allocation of
royalty revenues for
tracts between 4 marine
leagues and 100 miles
and those beyond 100

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Senate Draft Energy
Provision
H.R. 6566
H.R. 6670
H.R. 6709
H.R. 6899
Reform Act of 2008
miles would be shared
among producing states
that have a coastline
point within 300 miles
of any portion of the
leased tract: 1/3 to the
adjacent state and 2/3 to
each producing state
inversely proportional
to the distance to the
nearest point of the
coastline of the
producing state and the
geographic center of the
leased tract. This
section also includes
language that would
share only 25% of OCS
revenues from lease
tracts partially or
completely beyond 100
miles if no leasing is
allowed within any
portion of a state’s
adjacent zone within
100 miles of its
coastline.

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CRS-9
Senate Draft Energy
Provision
H.R. 6566
H.R. 6670
H.R. 6709
H.R. 6899
Reform Act of 2008
Policy
Sec. 102. states that it is
No similar provision.
No similar provision.
No similar provision.
No similar provision.
U.S. policy that
adjacent states commit
significant resources to
development of
offshore oil and gas,
thus those states should
receive a portion of the
revenues generated
from offshore activities.
Administration of
Sec. 108. Amends
No similar provision.
No similar provision.
No similar provision.
No similar provision.
Leasing
Section 5 of OCSLA
(43 U.S.C. 1334 ) and
allows lessee to
voluntarily release a
portion of a lease in
which it has no interest
in producing and is
deemed geologically
prospective by the
Secretary of the
Interior. The lessee, in
return would receive a
royalty incentive on the
portion retained. This
section also establishes
procedures for natural
gas-only leases.

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Senate Draft Energy
Provision
H.R. 6566
H.R. 6670
H.R. 6709
H.R. 6899
Reform Act of 2008
OCS Leasing Program
Sec. 112. Amends Sec.
No similar provision.
Sec. 102. See
No similar provision.
No similar provision.
18 of 43 U.S.C. 1344.
disposition of receipts
Would make available
section above.
at least 75% of unleased
acreage and establish a
procedure for the
preparation of a
proposed leasing
program, including the
preparation of a draft
Environmental Impact
Statement (EIS).
Would also estimate
states’ adjacent zones
resources and share of
OCS revenues.
Environmental Studies
Sec. 114. Amends
No similar provision.
No similar provision.
No similar provision.
No similar provision.
Section 20(d) of
OCSLA (43 U.S.C.
1346). Categorical
exclusions (CE) for the
need for an
Environmental
Assessment (EA) or
EIS including seismic
activities are
established. Exploration
plans would be no
longer subject to an EIS

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Senate Draft Energy
Provision
H.R. 6566
H.R. 6670
H.R. 6709
H.R. 6899
Reform Act of 2008
and may be eligible for
a CE. An EIS would be
required only for the
first development and
production plan within
each OCS Planning
Area. Future plans for
leased tracts within the
Area would require an
EA unless the EIS were
over 10 years old.
Termination of Effect
Sec. 115. All provisions
See Sec. 123
Similar provision.
No similar provision.
No similar provision.
of Laws Prohibiting the
of existing laws
description above.
Spending of
prohibiting the
Appropriated Funds for
spending of
Certain Purposes
appropriated funds to
conduct oil and natural
gas leasing and
preleasing activities in
the OCS would no
longer be in effect.
Leases From Areas
Sec. 120. Lessees may
No similar provision.
No similar provision.
No similar provision.
No similar provision.
Located within 100
exchange their leases
Miles of California or
held within 100 miles
Florida
of the coast of Florida
or California for oil and
gas or natural gas leases
in other parts of the
OCS available for
leasing.

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Senate Draft Energy
Provision
H.R. 6566
H.R. 6670
H.R. 6709
H.R. 6899
Reform Act of 2008
Coastal Impact
Sec. 121. Would repeal
No similar provision.
No similar provision.
No similar provision.
No similar provision.
Assistance
Sec. 31 of OCSLA (43
U.S.C. 1356a),
providing Coastal
Assistance.
Energy Independence
No similar provision.
Sec. 131. An Energy
No similar provision.
No similar provision.
Sec. 401. An
and Security Fund
Independence and
Alternative Fuel Trust
Security Fund would be
Fund would be
established to fund
established to conduct
energy research and
research, development,
development projects
and commercialization
including but not
programs in alternative
limited to wind, solar,
fuels and alternative
geothermal, advanced
fuel technologies.
vehicles, and carbon
capture and storage.
National Commission
Sec. 101. Would
on Energy
establish a National
Independence
Commission on Energy
Independence to
examine technical and
policy obstacles to
achieving U.S. energy
independence and make
recommendations
to Congress and the
President.

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