HOUSE BILL REPORT

HJM 4003

BYRepresentatives Basich, S. Wilson, Rust, Sayan, Jacobsen, Pruitt, Jones and Nelson; by request of Joint Select Committee on Marine and Ocean Resources

Petitioning Congress to amend the outer continental shelf act.

House Committe on Natural Resources & Parks

Majority Report:  Do pass.  (11)

      Signed by Representatives Belcher, Chair;K. Wilson, Vice Chair; Beck, Ranking Republican Member; Brumsickle, Dellwo, Ferguson,R. Fisher, Fuhrman, Hargrove, Raiter and Sayan.

House Staff:Bill Koss (786-7129)

AS PASSED HOUSE MARCH 6, 1989

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 the 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 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 the 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.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Dick Nelson; Dave McCraney, Governor's Ocean Work Group.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The coastal resources should not be developed without better opportunities for participation initiated by the federal government.  The economic, strategic, and environmental consequences need to be adequately addressed.  Revenues from ocean mineral development should be shared following the same policies as on uplands.

House Committee - Testimony Against:      None Presented.