1082 

 32 



which is first landed in the coastal state involved in the immediately 

 preceding fiscal year by comparison with the volume landed in all of 

 the coastal states in such year. (In the computation of such volumes, 

 the conferees, following the Senate bill, intend that 6,000 cubic feet 

 of natural gas be considered the equivalent of one barrel of oil.) 



In the Senate bill, the amount of these grants was to be determined 

 exclusively on the basis of these two factors ; in the House amendment, 

 the amount was to be determined on the basis of these factors plus 

 four additional measures. The conference substitute follows the House 

 amendment and includes in the formula two additional factors which 

 follow the House measures which most closely approximate the extent 

 to which a coastal state is likely to sustain adverse consequences as a 

 result of new or expanded OCS energy activity. The first of these is the 

 amount of outer Continental Shelf acreage which is adjacent to the 

 coastal state involved and which is newly leased by the Federal Gov- 

 ernment in the immediately preceding fiscal year by comparison with 

 the total amount of OCS acreage newly leased by the Federal Govern- 

 ment in such year. The second of these is the number of individuals 

 residing in such state in the immediately preceding fiscal year who 

 obtain new employment in such year as a result of new or expanded 

 outer Continental Shelf energy activities by comparison with the total 

 number of such individuals residing in all of tiie coastal states in such 

 year. This last factor necessarily requires that the year preceding the 

 immediately preceding fiscal year be considered, for purposes of cal- 

 culating formula grants, the "base year" against which the number 

 of individuals who obtain new employment in the immediately 

 preceding fiscal year as a result of new or expanded OCS energy 

 activities is to be measured. The concept of "new employment" is 

 intended to refer to new workers. For example, a construction worker 

 who changes from a job on the Alaska pipeline to a job on an OCS 

 drilling platform, or a drilling-platform worker who is relocated to 

 a geographically different area to do the same work, in the immediately 

 preceding fiscal year, is an individual who obtains new employment in 

 such year as a result of new or expanded outer Continental Shelf en- 

 ergy activities. By contrast, an individual who is promoted from being 

 a worker on a drilling rig to being the foreman of a rig or from being 

 a rig construction worker to a rig production worker in the same 

 geopfraphical area is not such an individual. 



Paragraph (3) of new section 308(b) follows paragraphs (2) and 

 (3) of new section 308(a) in the House amendment in directing the 

 Secretary of Commerce to collect and evaluate the information that 

 is necessarv to apply the foregoin<? formula and in providing statu- 

 tory guidelines for determining which coastal state is the state which 

 is "adjacent" to a particular outer Continental Shelf acreage for pur- 

 poses of this subsection. 



The conferees expect the Secretarv to make the necessary determi- 

 nations for extending lateral seaward boundaries in a timely manner, 

 and to publish such determinations within 270 days after the date of 

 enactment of this subsection. It is further intended by tlie conferees 

 that the statutory guidelines set forth in this paragraph be applied 

 solely for the purpose of determining which coastal state is the state 

 which is "adjacent" to particular outer Continental Shelf acreage 

 under this Act, and that such guidelines not be construed to have 



