43 U.S.C. § 1337
Leases, easements, and rights-of-way on the outer Continental Shelf
No bid for a lease may be submitted if the Secretary finds, after notice and hearing, that the bidder is not meeting due diligence requirements on other leases.
No lease issued under this subchapter may be sold, exchanged, assigned, or otherwise transferred except with the approval of the Secretary. Prior to any such approval, the Secretary shall consult with and give due consideration to the views of the Attorney General.
Nothing in this subchapter shall be deemed to convey to any person, association, corporation, or other business organization immunity from civil or criminal liability, or to create defenses to actions, under any antitrust law.
Nothing contained in this section shall be construed to alter, limit, or modify any claim of any State to any jurisdiction over, or any right, title, or interest in, any submerged lands.
In order to meet the urgent need for further exploration and development of the sulphur deposits in the submerged lands of the outer Continental Shelf, the Secretary is authorized to grant to the qualified persons offering the highest cash bonuses on a basis of competitive bidding sulphur leases on submerged lands of the outer Continental Shelf, which are not covered by leases which include sulphur and meet the requirements of section 1335(a) of this title, and which sulphur leases shall be offered for bid by sealed bids and granted on separate leases from oil and gas leases, and for a separate consideration, and without priority or preference accorded to oil and gas lessees on the same area.
A sulphur lease issued by the Secretary pursuant to this section shall (1) cover an area of such size and dimensions as the Secretary may determine, (2) be for a period of not more than ten years and so long thereafter as sulphur may be produced from the area in paying quantities or drilling, well reworking, plant construction, or other operations for the production of sulphur, as approved by the Secretary, are conducted thereon, (3) require the payment to the United States of such royalty as may be specified in the lease but not less than 5 per centum of the gross production or value of the sulphur at the wellhead, and (4) contain such rental provisions and such other terms and provisions as the Secretary may by regulation prescribe at the time of offering the area for lease.
Notice of sale of leases, and the terms of bidding, authorized by this section shall be published at least thirty days before the date of sale in accordance with rules and regulations promulgated by the Secretary.
All moneys paid to the Secretary for or under leases granted pursuant to this section shall be deposited in the Treasury in accordance with section 1338 of this title.
The issuance of any lease by the Secretary pursuant to this subchapter, or the making of any interim arrangements by the Secretary pursuant to section 1336 of this title shall not prejudice the ultimate settlement or adjudication of the question as to whether or not the area involved is in the outer Continental Shelf.
The Secretary may cancel any lease obtained by fraud or misrepresentation.
Except with respect to projects that meet the criteria established under section 388(d) of the Energy Policy Act of 2005, the Secretary shall issue a lease, easement, or right-of-way under paragraph (1) on a competitive basis unless the Secretary determines after public notice of a proposed lease, easement, or right-of-way that there is no competitive interest.
The Secretary shall provide for the duration, issuance, transfer, renewal, suspension, and cancellation of a lease, easement, or right-of-way under this subsection.
The Secretary shall provide for coordination and consultation with the Governor of any State or the executive of any local government that may be affected by a lease, easement, or right-of-way under this subsection.
Not later than 270 days after
Nothing in this subsection displaces, supersedes, limits, or modifies the jurisdiction, responsibility, or authority of any Federal or State agency under any other Federal law.
This subsection does not apply to any area on the outer Continental Shelf within the exterior boundaries of any unit of the National Park System, National Wildlife Refuge System, or National Marine Sanctuary System, or any National Monument.
The Emergency Petroleum Allocation Act of 1973, referred to in subsec. (b)(7), is Pub. L. 93–159,
Section 8004(b)(1)(B) of the Outer Continental Shelf Lands Act Amendments of 1985, referred to in subsec. (g)(5)(A), is section 8004(b)(1)(B) of Pub. L. 99–272, which is set out as a note below.
The Deepwater Port Act of 1974, referred to in subsec. (p)(1), is Pub. L. 93–627,
The Ocean Thermal Energy Conversion Act of 1980, referred to in subsec. (p)(1), is Pub. L. 96–320,
Section 388(d) of the Energy Policy Act of 2005, referred to in subsec. (p)(3), is section 388(d) of Pub. L. 109–58, which is set out as a note under this section.
In subsec. (a)(3)(C)(ii), “section 702 of title 5” substituted for “section 10(a) of the Administrative Procedures Act (5 U.S.C. 702)” on authority of Pub. L. 89–554, § 7(b),
2025—Pub. L. 119–21, § 50102(d)(1), repealed 117–169, § 50261, and provided that any provision of law amended or repealed by that section is restored or revived as if that section had not been enacted. See 2022 Amendment and Repeal of Pub. L. 117–169 notes below.
Subsec. (a)(1)(A), (C). Pub. L. 119–21, § 50102(d)(2)(A), (B), substituted “not less than 12½ percent, but not more than 16⅔ percent,” for “not less than 12½ per centum”.
Subsec. (a)(1)(F). Pub. L. 119–21, § 50102(d)(2)(C), substituted “not less than 12½ percent, but not more than 16⅔ percent,” for “no less than 12½ per centum”.
Subsec. (a)(1)(H). Pub. L. 119–21, § 50102(d)(2)(D), substituted “not less than 12½ percent, but not more than 16⅔ percent,” for “no less than 12 and ½ per centum”.
2022—Subsec. (a)(1)(A), (C). Pub. L. 117–169, § 50261(1), which substituted “not less than 16⅔ percent, but not more than 18¾ percent, during the 10-year period beginning on
Subsec. (a)(1)(F). Pub. L. 117–169, § 50261(2), which substituted “not less than 16⅔ percent, but not more than 18¾ percent, during the 10-year period beginning on
Subsec. (a)(1)(H). Pub. L. 117–169, § 50261(3), which substituted “not less than 16⅔ percent, but not more than 18¾ percent, during the 10-year period beginning on
2021—Subsec. (p)(1)(C). Pub. L. 117–58, § 40343, inserted “storage,” before “or transmission”.
Subsec. (p)(1)(E). Pub. L. 117–58, § 40307(b), added subpar. (E).
2005—Pub. L. 109–58, § 388(c), substituted “Leases, easements, and rights-of-way on the outer Continental Shelf” for “Grant of leases by Secretary” in section catchline.
Subsec. (a)(3)(B). Pub. L. 109–58, § 346, inserted “and in the Planning Areas offshore Alaska” after “West longitude” in introductory provisions.
Subsec. (p). Pub. L. 109–58, § 388(a), added subsec. (p).
1999—Subsec. (k)(2)(B). Pub. L. 106–53 substituted “a Federal, State, or local government agency” for “an agency of the Federal Government”.
1998—Subsec. (a)(9). Pub. L. 105–362 struck out par. (9) which related to report to Congress by Secretary of Energy on bidding options for oil and gas leases on outer Continental Shelf land.
1995—Subsec. (a)(1)(H), (I). Pub. L. 104–58, § 303, added subpar. (H) and redesignated former subpar. (H) as (I).
Subsec. (a)(3). Pub. L. 104–58, § 302, designated existing provisions as subpar. (A) and added subpars. (B) and (C).
1994—Subsec. (k). Pub. L. 103–426 designated existing provisions as par. (1) and added par. (2).
1987—Subsec. (g)(5)(A). Pub. L. 100–202 substituted “an escrow account established pursuant to an agreement under section 1336 of this title” for “such account” in second sentence, added cl. (i), designated existing indented par. as cl. (ii), substituted “a boundary” for “any boundary”, “any additional moneys” for “all moneys”, and inserted “or credited to” before “the escrow account”.
1986—Subsec. (g)(1). Pub. L. 99–272 amended par. (1) generally. Prior to amendment, par. (1) read as follows: “At the time of soliciting nominations for the leasing of lands within three miles of the seaward boundary of any coastal State, the Secretary shall provide the Governor of such State—
“(A) an identification and schedule of the areas and regions proposed to be offered for leasing;
“(B) all information concerning the geographical, geological, and ecological characteristics of such regions;
“(C) an estimate of the oil and gas reserves in the areas proposed for leasing; and
“(D) an identification of any field, geological structure, or trap located within three miles of the seaward boundary of such coastal State.”
Subsec. (g)(2). Pub. L. 99–272 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “After receipt of nominations for any area of the outer Continental Shelf within three miles of the seaward boundary of any coastal State, the Secretary shall inform the Governor of such coastal State of any such area which the Secretary believes should be given further consideration for leasing. The Secretary, in consultation with the Governor of the coastal State, shall then, determine whether any such area may contain one or more oil or gas pools or fields underlying both the outer Continental Shelf and lands subject to the jurisdiction of such State. If, with respect to such area, the Secretary selects a tract or tracts which may contain one or more oil or gas pools or fields underlying both the outer Continental Shelf and lands subject to the jurisdiction of such State, the Secretary shall offer the Governor of such coastal State the opportunity to enter into an agreement concerning the disposition of revenues which may be generated by a Federal lease within such area in order to permit their fair and equitable division between the State and Federal Government.”
Subsec. (g)(3). Pub. L. 99–272 amended par. (3) generally. Prior to amendment, par. (3) read as follows: “Within ninety days after the offer by the Secretary pursuant to paragraph (2) of this subsection, the Governor shall elect whether to enter into such agreement and shall notify the Secretary of his decision. If the Governor accepts the offer, the terms of any lease issued shall be consistent with the provisions of this subchapter, with applicable regulations, and, to the maximum extent practicable, with the applicable laws of the coastal State. If the Governor declines the offer, or if the parties cannot agree to terms concerning the disposition of revenues from such lease (by the time the Secretary determines to offer the area for lease), the Secretary may nevertheless proceed with the leasing of the area.”
Subsec. (g)(4). Pub. L. 99–272 amended par. (4) generally. Prior to amendment, par. (4) read as follows: “Notwithstanding any other provision of this subchapter, the Secretary shall deposit in a separate account in the Treasury of the United States all bonuses, royalties, and other revenues attributable to oil and gas pools underlying both the outer Continental Shelf and submerged lands subject to the jurisdiction of any coastal State until such time as the Secretary and the Governor of such coastal State agree on, or if the Secretary and the Governor of such coastal State cannot agree, as a district court of the United States determines, the fair and equitable disposition of such revenues and any interest which has accrued and the proper rate of payments to be deposited in the treasuries of the Federal Government and such coastal State.”
Subsec. (g)(5) to (7). Pub. L. 99–272 added pars. (5) to (7).
1978—Subsec. (a). Pub. L. 95–372, § 205(a), designated existing provisions as par. (1)(A) and (B), and in par. (1)(A) as so redesignated, struck out provisions which restricted authority of Secretary to grant oil and gas leases to situations involving the urgent need for further exploration and development of oil and gas deposits of the submerged lands of the outer Continental Shelf and inserted provisions permitting the promulgation of regulations for the deposit of cash bids in interest-bearing accounts until the Secretary announces his decision on whether to accept the bids with the earned interest paid either to the Treasury or to unsuccessful bidders, in par. (1)(B) as so redesignated, substituted provisions relating to variable royalty bids based on a per centum in amount or value of the production saved, removed, or sold, with either a fixed work commitment based on dollar amount covering exploration or a fixed cash bonus as determined by the Secretary or both for provisions relating to straight royalty bids at not less than 12½ per centum with a cash bonus fixed by the Secretary, and added pars. (1)(C) to (H) and pars. (2) to (9).
Subsec. (b). Pub. L. 95–372, § 205(a), redesignated cls. (1) to (4) as pars. (1), (2), (3), and (6) respectively, added pars. (4), (5), and (7), and in par. (1) as so redesignated, inserted provisions authorizing the Secretary to lease tracts larger than 5760 acres if a larger area is necessary to comprise a reasonable economic production unit and in par. (2) as so redesignated, inserted provision to allow up to a 10 year initial period if the longer period is necessary to encourage exploration and development in areas because of unusually deep water or other unusually adverse conditions, and in par. (3) as so redesignated, substituted “payment of amount or value as determined by one of the bidding systems set forth in subsection (a) of this section” for “payment of a royalty of not less than 12½ per centum, in the amount or value of the production saved, removed, or sold from the lease”.
Subsecs. (c) to (h). Pub. L. 95–372, § 205(b), added subsecs. (c) to (h). Former subsecs. (c) to (h) redesignated (i) to (n).
Subsec. (i). Pub. L. 95–372, § 205(b), redesignated former subsec. (c) as (i). Former subsec. (i) redesignated (o).
Subsec. (j). Pub. L. 95–372, § 205(b), redesignated former subsec. (d) as (j). Former subsec. (j), which provided that any person complaining of the cancellation of a lease by the Secretary could have the Secretary’s action reviewed in the United States District Court for the District of Columbia by filing a petition for review, was struck out. See section 1349 of this title.
Subsecs. (k) to (o). Pub. L. 95–372, § 205(b), redesignated former subsecs. (e) to (i) as (k) to (o), respectively.
Secretary of the Interior required to promulgate regulations to carry out amendment by section 40307(b) of Pub. L. 117–58 not later than 1 year after
Pub. L. 104–58, title III, § 305,
Pub. L. 119–21, title V, § 50102(d)(1),
Pub. L. 109–58, title III, § 388(d),
Pub. L. 104–58, title III, § 306,
Committee on Merchant Marine and Fisheries of House of Representatives abolished and its jurisdiction transferred by House Resolution No. 6, One Hundred Fourth Congress,
Functions vested in, or delegated to, Secretary of Energy and Department of Energy under or with respect to subsec. (a)(4) of this section, transferred to, and vested in, Secretary of the Interior, by section 100 of Pub. L. 97–257, 96 Stat. 841, set out as a note under section 7152 of Title 42, The Public Health and Welfare.
Functions of Secretary of the Interior to promulgate regulations under this subchapter which relate to fostering of competition for Federal leases, implementation of alternative bidding systems authorized for award of Federal leases, establishment of diligence requirements for operations conducted on Federal leases, setting of rates for production of Federal leases, and specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests taken in kind, transferred to Secretary of Energy by section 7152(b) of Title 42. Section 7152(b) of Title 42 was repealed by Pub. L. 97–100, title II, § 201,
For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including authority of Secretary of Labor, see section 18851 of Title 42, The Public Health and Welfare.
Pub. L. 117–58, div. D, title III, § 40307(c),
Pub. L. 109–58, title III, § 388(b),
Pub. L. 109–58, title III, § 388(e),
Pub. L. 106–53, title II, § 215(b)(2),
Pub. L. 104–134, title I, § 101(c) [title I],
Pub. L. 104–58, title III, § 304,
Pub. L. 99–272, title VIII, § 8004, ($ million) Louisiana 572 Texas 382 California 338 Alabama 66 Alaska 51 Mississippi 14 Florida 0.03 as well as 27 percent of the royalties, derived from any lease of Federal lands, which have been deposited through ($ million) Louisiana 84 Texas 134 California 289 Alabama 7 Alaska 134 Mississippi 2.