Offshore Leasing Standards and Accountability Act of 2026

Today's wording of each part of the law, with what would be struck out and added. Each change also gives the bill's own instruction, word for word.

1. 43 U.S.C. 1331added 34by S. 4715 Sec. 2(a)

   34 Fitness to operate standards for offshore oil and gas activities.—(a) Requirement for approvals.— Beginning on the date on which the Secretary issues or revises regulations under subsection (b)(5), the Secretary may not issue, extend the term of, or approve the transfer of a lease, easement, or right-of-way for oil or gas exploration, development, or production on the outer Continental Shelf with respect to a recipient responsible party unless the recipient responsible party is certified as fit to operate in accordance with subsection (b).(b) Certification of fitness To operate.—(1) In general.— The Secretary shall certify a recipient responsible party as fit to operate based on—(A) the past compliance of the recipient responsible party, and any covered entity of the recipient responsible party, with Federal, State, and local environmental and safety laws and regulations, including deadlines and requirements related to environmental reclamation, decommissioning, and worker safety;(B) the financial solvency and capacity of the recipient responsible party, and any covered entity of the recipient responsible party, to weather market shocks and fulfill current and projected decommissioning liabilities; and(C) any other criteria with respect to the recipient responsible party, and any covered entity of the recipient responsible party, the Secretary may establish by regulation.(2) Minimum qualifications.— The Secretary may not certify a recipient responsible party as fit to operate unless the recipient responsible party—(A) demonstrates, and the Secretary verifies, that—(i) the recipient responsible party, and any covered entity of the recipient responsible party, did not violate any deadline or requirement of Federal, State, or local environmental or safety laws or regulations related to environmental reclamation, decommissioning, or worker safety during the period of 10 years ending on (as applicable) the date on which the request for certification was made or the date on which the Secretary makes an assessment under paragraph (4)(B);(ii) the recipient responsible party, and any covered entity of the recipient responsible party, are not in violation of this Act or any other Federal, State, or local environmental or safety law or regulation, including with respect to any overdue decommissioning orders for oil and gas infrastructure located on the outer Continental Shelf;(iii) the recipient responsible party, and any covered entity of the recipient responsible party, took timely and effective corrective actions to address any worker safety incidents, oil spills, or other unauthorized pollutant discharges, and infrastructure failures or disruptions disclosed under paragraph (B)(iv);(iv) the recipient responsible party, and any covered entity of the recipient responsible party, do not owe any rentals, royalties, or other fees for any Federal or State lease, easement, or right-of-way;(v) a Federal or State authority did not reduce the rate for royalties on oil or gas produced under any Federal or State lease held by the recipient responsible party, or any covered entity of the recipient responsible party, during the period of 10 years ending on (as applicable) the date on which the request for certification was made or the date on which the Secretary makes an assessment under paragraph (4)(B);(vi) the recipient responsible party, and any parent company of the recipient responsible party, possess an investment grade credit rating from a nationally recognized statistical rating organization, as such term is defined in section 3(a)(62) of the Securities Exchange Act of 1934;(vii) the recipient responsible party, and any parent company of the recipient responsible party, have not filed a petition for bankruptcy under title 11, United States Code, during the period of 10 years ending on (as applicable) the date on which the request for certification was made or the date on which the Secretary makes an assessment under paragraph (4)(B); and(viii) the recipient responsible party, and any covered entity of the recipient responsible party, have sufficient financial capacity to—(I) fulfill all current and projected decommissioning liabilities, including demonstration that the liabilities disclosed under subparagraph (B)(i)(I) are fully collateralized or otherwise financially secured;(II) implement and maintain up-to-date risk mitigation technologies, environmental protection measures, and worker safety measures, including the use of effective blow-out preventer systems and well-control processes pursuant to the requirements specified in section 250.730 of title 30, Code of Federal Regulations (or any successor regulations); and(III) support a sufficient amount of staff needed for maintenance and oversight of oil and gas infrastructure on the outer Continental Shelf in accordance with environmental, health, and safety requirements; and(B) provides to the Secretary a disclosure of—(i) current and projected decommissioning liabilities of the recipient responsible party, and any covered entity of the recipient responsible party, related to all leases, easements, and rights-of-way administered by a Federal or State authority, including—(I) domestic and global oil and gas decommissioning liabilities; and(II) the value of decommissioning obligations relative to the proven value of oil and gas reserves of the areas subject to such leases, easements, and rights-of-way;(ii) past results of inspections of oil and gas infrastructure operated by the recipient responsible party and any covered entity of the recipient responsible party;(iii) the number, length of ownership, and decommissioning status of each non-producing oil and gas well located on an area subject to a State or Federal oil and gas lease held by the recipient responsible party or any covered entity of the recipient responsible party; and(iv) the number of worker safety incidents, oil spills or other unauthorized pollutant dis

   The bill says: The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended by adding at the end the following:

   Bill text · Current law (43 U.S.C. 1331)

2. 43 U.S.C. 1334(b)changedby S. 4715 Sec. 2(b)

   The bill says: Section 5(b) of the Outer Continental Shelf Lands Act (43 U.S.C. 1334(b)) is amended by inserting ", including the regulations issued or revised under section 34 relating to fitness to operate" after "regulations issued under this Act".

   Bill text · Current law (43 U.S.C. 1334)

3. 43 U.S.C. 1334added (k)by S. 4715 Sec. 3

   (k) Escrow account for decommissioning liability.—(1) In general.— The holder of an oil and gas lease shall, in accordance with this subsection, make payments to an interest-bearing escrow account, established and administered by the Secretary, in order to fully meet the total cost of decommissioning the oil and gas infrastructure located on the area subject to the lease.(2) Decommissioning cost estimate.—(A) In general.— For each oil and gas lease, the Secretary, or an independent third-party entity designated by the Secretary, shall calculate and periodically update a probabilistic estimate of the total cost of decommissioning existing and proposed oil and gas infrastructure, including platforms, wells, and pipelines, located on the area subject to such lease.(B) Initial estimate.— The Secretary, or the independent third-party, shall calculate an initial estimate of the total costs described in subparagraph (A) prior to the issuance of a new lease.(C) Reevaluation and updates.— The Secretary, or the independent third-party, shall reevaluate and, if necessary, update the estimate of the total costs described in subparagraph (A) at a minimum—(i) not less frequently than once every 2 years, to reflect any changes in such total costs;(ii) prior to the approval of a development and production plan pursuant to section 25;(iii) prior to the end of the schedule for payments established under paragraph (3); and(iv) following the disbursal of funds from the escrow accounts for a use approved under paragraph (4).(3) Payment schedule.—(A) In general.— The Secretary shall establish a mandatory schedule for payments required by paragraph (1).(B) Deadlines to establish schedules.—(i) New leases.— With respect to the issuance, extension, or transfer of an oil and gas lease after the date of enactment of this subsection, the Secretary shall establish the schedule for payments prior to such issuance, extension, or transfer.(ii) Existing leases.— With respect to any lease in effect as of the date of enactment of this subsection, the Secretary shall establish the schedule for payments by not later than 1 year after such date of enactment.(C) Minimum payments by 5 years.— Each schedule of payments established under subparagraph (A) shall provide that the total amount of payments made to the escrow account by the date that is 5 years after the schedule is established be not less than the total decommissioning costs for all oil and gas infrastructure located on the area of the applicable lease.(D) Initial payments.— No lease may be issued, and no development and production plan may be approved under section 25, unless the recipient responsible party or leaseholder makes a payment to the escrow account in an amount equal to the greater of—(i) 25 percent of the average cost to decommission oil and gas infrastructure located on a typical lease at similar depths; and(ii) 25 percent of the total decommissioning costs for all oil and gas infrastructure proposed to be installed on the area subject to the lease pursuant to the plan.(E) Lease extensions and transfers.—(i) Missed payments.— The Secretary may not extend the term of, or approve the transfer of, a lease if the holder of the lease owes any outstanding payments to the escrow account.(ii) Adoption of payment schedule.— The Secretary may not approve the transfer of a lease unless the recipient responsible party agrees to adopt the schedule for payments established for the lease.(F) Adjustments.— The Secretary shall adjust a schedule for payments established under subparagraph (A) to reflect any update to the applicable cost estimate under paragraph (2)(C).(G) Supplemental financial assurances.— If the combined amount of the funds in an escrow account for a lease and any supplemental financial assurances provided by the holder of the lease exceeds the total decommissioning cost estimate calculated by the Secretary pursuant to paragraph (2), the Secretary shall correspondingly reduce the supplemental financial assurances required until the combined figure is equivalent to the decommissioning cost estimate.(H) Interest.— Any interest paid on funds in an escrow account established under paragraph (1) shall become part of the principal funds in the account.(I) Amounts from joint and several liability.— All funds accrued from previous holders of an oil and gas lease as a result of joint and several liability for the purposes of decommissioning shall be deposited into the corresponding escrow account.(J) Return of remaining funds after decommissioning.— After decommissioning is complete, any funds remaining in an escrow account for a lease established under paragraph (1) shall be returned to any parties that made payments to the escrow account, excluding any amounts deposited pursuant to subparagraph (I), based on the proportion of the payments made by the respective party.(4) Use of funds.—(A) In general.— The holder of a lease may only use funds in an escrow account established under paragraph (1)—(i) for the purposes of decommissioning the oil and gas infrastructure located on the area subject to the lease; and(ii) if the use is approved by the Secretary.(B) No use as collateral.— No person may commit funds held in an escrow account established under paragraph (1) as collateral.(5) Penalties.— If the required payments into an escrow account established under paragraph (1) are delinquent by more than 60 days, the Secretary shall—(A) raise the royalty rate for the applicable lease at a rate sufficient to recover the delinquent amount within 6 months and deposit the recovered amount into the applicable escrow account established under paragraph (1); or(B) suspend the lease, pursuant to section 5(a)(2), until the holder of the lease provides the delinquent amount.(6) Definitions.— In this subsection, the terms decommissioning, parent company, and recipient responsible party have the meanings given such terms, respectively, in secti

   The bill says: Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) is amended by adding at the end the following:

   Bill text · Current law (43 U.S.C. 1334)

4. 43 U.S.C. 1334added (l)by S. 4715 Sec. 4

   (l) Restriction on temporary abandonment of wells.—(1) In general.— The Secretary—(A) may not approve the placement of an oil well in temporary abandonment status for a period longer than 3 years; and(B) may only approve such placement after submission and validation of an accompanying economic analysis verifying the potential for temporary abandonment to improve operational stability of the oil well or mitigate environmental impacts of operating the oil well.(2) Extension.— Notwithstanding paragraph (1)(A), the Secretary may, on a one-time basis for an oil well, extend the maximum period the oil well may be placed in temporary abandonment status to 5 years if the Secretary determines such extension is necessary to ensure operational stability or environmental safety.

   The bill says: Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) is amended by adding at the end the following:

   Bill text · Current law (43 U.S.C. 1334)

From the bill's official text on GovInfo and the U.S. Code, 2024 edition, which may not yet show changes made since.