House Report 112-74 - PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 1231) TO AMEND THE OUTER CONTINENTAL SHELF LANDS ACT TO REQUIRE THAT EACH 5-YEAR OFFSHORE OIL AND GAS LEASING PROGRAM OFFER LEASING IN THE AREAS WITH THE MOST PROSPECTIVE OIL AND GAS RESOURCES, TO ESTABLISH A DOMESTIC OIL AND NATURAL GAS PRODUCTION GOAL, AND FOR OTHER PURPOSES

[House Report 112-74]
[From the U.S. Government Publishing Office]

112th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 112-74

======================================================================

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 1231) TO AMEND THE OUTER
CONTINENTAL SHELF LANDS ACT TO REQUIRE THAT EACH 5-YEAR OFFSHORE OIL
AND GAS LEASING PROGRAM OFFER LEASING IN THE AREAS WITH THE MOST
PROSPECTIVE OIL AND GAS RESOURCES, TO ESTABLISH A DOMESTIC OIL AND
NATURAL GAS PRODUCTION GOAL, AND FOR OTHER PURPOSES

_______

May 10, 2011.--Referred to the House Calendar and ordered to be printed

_______

Mr. Reed, from the Committee on Rules,
submitted the following

R E P O R T

[To accompany H. Res. 257]

The Committee on Rules, having had under consideration
House Resolution 257, by a record vote of 7 to 3, report the
same to the House with the recommendation that the resolution
be adopted.

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 1231, to
amend the Outer Continental Shelf Lands Act to require that
each 5-year offshore oil and gas leasing program offer leasing
in the areas with the most prospective oil and gas resources,
to establish a domestic oil and natural gas production goal,
and for other purposes, under a structured rule. The resolution
provides one hour of general debate equally divided and
controlled by the chair and ranking minority member of the
Committee on Natural Resources. The resolution waives all
points of order against consideration of the bill. The
resolution provides that the amendment recommended by the
Committee on Natural Resources now printed in the bill shall be
considered as adopted and that the bill, as amended, shall be
considered as read. The resolution waives all points of order
against provisions in the bill, as amended. The resolution
makes in order only those amendments printed in this report.
Each such amendment may be offered only in the order printed in
this report, may be offered only by a Member designated in this
report, shall be considered as read, shall be debatable for the
time specified in this report equally divided and controlled by
the proponent and an opponent, shall not be subject to
amendment, and shall not be subject to a demand for division of
the question in the House or in the Committee of the Whole. All
points of order against the amendments printed in this report
are waived. Finally, the resolution provides one motion to
recommit with or without instructions.

EXPLANATION OF WAIVERS

The resolution waives all points of order against
consideration of the bill. This includes a waiver of clause
3(c)(4) of rule XIII, which requires the inclusion of general
performance goals and objectives in a committee report.
Although the rule waives all points of order against
provisions in the bill, as amended, the Committee is not aware
of any points of order against its provisions. The waiver is
prophylactic in nature.
Although the resolution waives all points of order against
the amendments printed in this report, the Committee is not
aware of any points of order against the amendments and
therefore the waiver is prophylactic in nature.

COMMITTEE VOTES

The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:

Rules Committee record vote No. 92

Motion by Mr. McGovern to report an open rule. Defeated: 3-
6

----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................ Nay Mr. McGovern...................... Yea
Mr. Bishop of Utah.............................. Nay Mr. Hastings of Florida........... Yea
Mr. Woodall..................................... Nay Mr. Polis......................... Yea
Mr. Nugent...................................... Nay
Mr. Scott of South Carolina..................... Nay
Mr. Dreier, Chairman............................ Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 93

Motion by Mr. McGovern to amend the rule to make in order
and provide the appropriate waivers for amendment No. 20,
offered by Rep. Boswell (IA), which would require the Secretary
of the Interior to include requirements for any person awarded
a lease under the program to give preference to hiring veterans
for activities under the lease. Defeated: 3-6

Rules Committee record vote No. 94

Motion by Mr. McGovern to amend the rule to add a new
section at the end of the rule to provide for the immediate
consideration, upon the adoption of the rule, of a bill
consisting of the text of amendment No. 7, offered by Rep.
McGovern under an open rule. Defeated: 3-6

Rules Committee record vote No. 95

Motion by Mr. Hastings of Florida to amend the rule to make
in order and provide the appropriate waivers for amendment No.
19, offered by Rep. Hastings (FL), which would prohibit any
lease-sale from going forward where either the National Academy
of Science or Intergovernmental Panel on Climate Change has
determined that use by human beings of any non-renewable
resource expected to be extracted from the subject property
contributes to global climate change. Defeated: 3-7

----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................ Nay Mr. McGovern...................... Yea
Mr. Bishop of Utah.............................. Nay Mr. Hastings of Florida........... Yea
Mr. Woodall..................................... Nay Mr. Polis......................... Yea
Mr. Nugent...................................... Nay
Mr. Scott of South Carolina..................... Nay
Mr. Webster..................................... Nay
Mr. Dreier, Chairman............................ Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 96

Motion by Ms. Foxx to report a structured rule. Adopted: 7-
3

----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................ Yea Mr. McGovern...................... Nay
Mr. Bishop of Utah.............................. Yea Mr. Hastings of Florida........... Nay
Mr. Woodall..................................... Yea Mr. Polis......................... Nay
Mr. Nugent...................................... Yea
Mr. Scott of South Carolina..................... Yea
Mr. Webster..................................... Yea
Mr. Dreier, Chairman............................ Yea
----------------------------------------------------------------------------------------------------------------

SUMMARY OF AMENDMENTS MADE IN ORDER

1. Hastings (WA): Manager's Amendment Would make technical
numbering corrections to section 2 of the bill. (10 minutes)
2. Connolly (VA), Scott (VA), Moran (VA): Would clarify
that new offshore drilling would not conflict with military
operations. (10 minutes)
3. Markey (MA): Would require that new 5-year leasing plans
require that companies bidding on new leases first renegotiate
any royalty-free leases they own; thus raising more than $2
billion over 10 years. (10 minutes)
4. Keating (MA): Would require the Secretary to make public
information about the lessee's executive bonuses from the most
recent quarter. (10 minutes)
5. Tsongas (MA): Would require that all applicants for a
drilling permit under a lease issued under H.R. 1231 would have
to submit a worst-case scenario oil spill containment and
clean-up plan. (10 minutes)
6. Brown (FL): Would make permanent the current moratorium
on drilling in the eastern gulf of Mexico that expires in 2022.
(10 minutes)
7. Thompson, Mike (CA): Would clarify that the legislation
does not allow for oil and gas drilling on the northern coast
of California. (10 minutes)
8. Inslee (WA): Would require the Washington state Governor
and legislature approve any leasing of the Outer Continental
Shelf off of Washington state. (10 minutes)

TEXT OF AMENDMENTS MADE IN ORDER

1. An Amendment To Be Offered by Representative Hastings of Washington
or His Designee, Debatable for 10 Minutes

Page 3, line 10, strike ``(4)'' and insert ``(5)''.
Page 4, line 6, strike ``(5)'' and insert ``(6)''.
----------

2. An Amendment To Be Offered by Representative Connolly of Virginia or
His Designee, Debatable for 10 Minutes

Page 3, line 12, insert ``, except in locations that would
interfere, conflict with, or impede operations of the Armed
Forces,'' after ``conduct lease sales''.
----------

3. An Amendment To Be Offered by Representative Markey of Massachusetts
or His Designee, Debatable for 10 Minutes

Page 4, line 19, strike the closing quotation marks and the
second period, and after line 19 insert the following new
paragraph:
``(7) Eligibility for new leases and the transfer of
leases.--
``(A) Issuance of new leases.--
``(i) In general.--In each oil and
gas leasing program under this section,
beginning with the 2012-2017 5-year
program, the Secretary of the Interior
shall specify that the Secretary will
not accept bids on any new leases
offered pursuant to this Act from a
person described in paragraph (2)
unless the person has renegotiated each
covered lease with respect to which the
person is a lessee, to modify the
payment responsibilities of the person
to require the payment of royalties if
the price of oil and natural gas is
greater than or equal to the price
thresholds described in clauses (v)
through (vii) of section 8(a)(3)(C) of
the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(a)(3)(C)).
``(ii) Persons described.--A person
referred to in clause (i) is a person
that--
``(I) is a lessee that--
``(aa) holds a
covered lease on the
date on which the
Secretary considers the
issuance of the new
lease; or
``(bb) was issued a
covered lease before
the date of enactment
of this Act, but
transferred the covered
lease to another person
or entity (including a
subsidiary or affiliate
of the lessee) after
the date of enactment
of this Act; or
``(II) any other person that
has any direct or indirect
interest in, or that derives
any benefit from, a covered
lease.
``(iii) Multiple lessees.--
``(I) In general.--For
purposes of clause (1), if
there are multiple lessees that
own a share of a covered lease,
the Secretary may implement
separate agreements with any
lessee with a share of the
covered lease that modifies the
payment responsibilities with
respect to the share of the
lessee to include price
thresholds that are equal to or
less than the price thresholds
described in clauses (v)
through (vii) of section
8(a)(3)(C) of the Outer
Continental Shelf Lands Act (43
U.S.C. 1337(a)(3)(C)).
``(II) Treatment of share as
covered lease.--Beginning on
the effective date of an
agreement under subclause (I),
any share subject to the
agreement shall not constitute
a covered lease with respect to
any lessees that entered into
the agreement.
``(B) Transfers.--A lessee or any other
person who has any direct or indirect interest
in, or who derives a benefit from, a covered
lease shall not be eligible to obtain by sale
or other transfer (including through a swap,
spinoff, servicing, or other agreement) any new
lease made available in an oil and gas leasing
program under this section, or the economic
benefit of such a new lease, unless the lessee
or other person has--
``(i) renegotiated each covered lease
with respect to which the lessee or
person is a lessee, to modify the
payment responsibilities of the lessee
or person to include price thresholds
that are equal to or less than the
price thresholds described in clauses
(v) through (vii) of section 8(a)(3)(C)
of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(a)(3)(C)); or
``(ii) entered into an agreement with
the Secretary to modify the terms of
all covered leases of the lessee or
other person to include limitations on
royalty relief based on market prices
that are equal to or less than the
price thresholds described in clauses
(v) through (vii) of section 8(a)(3)(C)
of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(a)(3)(C)).
``(C) Definitions.--In this paragraph--
``(i) Covered lease.--The term
`covered lease' means a lease for oil
or gas production in the Gulf of Mexico
that is--
``(I) in existence on the
date of enactment of this Act;
``(II) issued by the
Department of the Interior
under section 304 of the Outer
Continental Shelf Deep Water
Royalty Relief Act (43 U.S.C.
1337 note; Public Law 104-58);
and
``(III) not subject to
limitations on royalty relief
based on market price that are
equal to or less than the price
thresholds described in clauses
(v) through (vii) of section
8(a)(3)(C) of the Outer
Continental Shelf Lands Act (43
U.S.C. 1337(a)(3)(C)).
``(ii) Lessee.--The term `lessee'
includes any person or other entity
that controls, is controlled by, or is
in or under common control with, a
lessee.
``(iii) New lease.--The term `new
lease' means a lease issued in a lease
sale under this Act.
``(iv) Secretary.--The term
`Secretary' means the Secretary of the
Interior.''.
----------

4. An Amendment To Be Offered by Representative Keating of
Massachusetts or His Designee, Debatable for 10 Minutes

Page 4, line 19, strike the closing quotation marks and the
second period, and after line 19 insert the following new
paragraph:
``(7) Data regarding bonuses provided to
executives.--In each oil and gas leasing program under
this section, the Secretary shall include requirements
under which the Secretary shall make available to the
public data provided by each lessee under the program
with respect to the bonuses provided to the executives
of the lessee from the most recent quarter.''.
----------

5. An Amendment To Be Offered by Representative Tsongas of
Massachusetts or Her Designee, Debatable for 10 Minutes

Page 4, strike the closing quotation marks and second period
at line 19, and after line 19 insert the following:
``(7) Worst-case containment and clean-up plan
required.--The Secretary shall include, in each 5-year
oil and gas leasing program, a requirement that each
applicant for a permit to drill under a lease issued in
a lease sale under the program must include a plan for
containment and clean-up of a worst-case oil and gas
discharge scenario in activities conducted under the
permit, if issued.''.
----------

6. An Amendment To Be Offered by Representative Brown of Florida or Her
Designee, Debatable for 10 Minutes

Page 4, line 19, strike the closing quotation marks and the
second period, and after line 19 insert the following new
paragraph:
``(7) Making moratorium in the eastern gulf of mexico
permanent.--The Secretary shall not make available for
leasing in any oil and gas leasing program under this
section any area referred to in section 104(a) of the
Gulf of Mexico Energy Security Act of 2006 (title I of
division C of Public Law 109-432; 43 U.S.C. 1331
note).''.
----------

7. An Amendment To Be Offered by Representative Thompson of California
or His Designee, Debatable for 10 Minutes

Page 4, line 19, strike the final closed quotation mark and
the following period.
Page 4, after line 19, insert the following new subparagraph:
``(C) Notwithstanding subparagraph (A), the Secretary
may not include in any oil and gas leasing program
under this paragraph any lease sale in the Northern
California Planning Area.''.
----------

8. An Amendment To Be Offered by Representative Inslee of Washington or
His Designee, Debatable for 10 Minutes

Page 4, line 19, strike the closing quotation marks and the
second period, and after line 19 insert the following new
paragraph:
``(7) Washington state approval required.--Under this
section, the Secretary shall not make available for
leasing for exploration, development, and production of
oil and natural gas any area of the outer Continental
Shelf off the coast of Washington unless such leasing
is approved by the Governor and legislature of the
State of Washington.''.