SENATE BILL REPORT

SJM 8009

BYSenators Sutherland, Metcalf, Owen and DeJarnatt; by request of Joint Select Committee on Marine and Ocean Resources

Requesting congress to amend the outer continental shelf lands act.

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):February 7, 1989

Majority Report:     Do pass.

     Signed by Senators Metcalf, Chairman; Amondson, Vice Chairman; Benitz, DeJarnatt, Kreidler, Owen, Patterson, Sutherland.

Senate Staff:Vic Moon (786-7469)

                February 14, 1989

AS PASSED SENATE, FEBRUARY 13, 1990

BACKGROUND:

The Outer Continental Shelf (OCS) of the United States stretches seaward from the end of state-controlled water (three nautical miles from shore) to a point 200 nautical miles from shore.  In this area, the federal government controls all resources.  For the oil, gas, and mineral resources of the ocean, the Minerals Management Service (MMS) of the Department of Interior is the administering agency.  Its authority comes from the Outer Continental Shelf Lands Act (OCSLA).

In the process of preparing for the lease sale, the MMS and the state confer periodically.  Subjects of the discussion include adequacy of data, jurisdictional matters, options for deferral or withdrawal of the sale or portions of the sale, and lease stipulations.

When oil and gas leases produce revenues from products within three to six miles offshore, the federal government shares the revenues with the state.  The state receives 27 percent of any bonus bid or royalty paid.  In leases or sale of natural resources from federal upland areas such as forests and grazing lands, the federal government also shares the revenue with the state.  For gravel or other valuable minerals extracted from the federal outer continental shelf, this is not the case.

SUMMARY:

The state asks Congress to amend the Outer Continental Shelf Lands Act to include a process requiring the Secretary of Interior to more fully consult and confer with the Governor prior to and after disposing of gravel and minerals from the outer continental shelf.  The Outer Continental Shelf Lands Act should also be amended to require the federal government to share with the adjoining state any revenues from the disposal of either gravel or hard rock minerals on the federal outer continental shelf.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested

Senate Committee - Testified:   No one