THE OUTER CONTINENTAL SHELF LANDS ACT

(September 2009)

BACKGROUND

The Outer Continental Shelf Lands Act (OCSLA) was enacted by legislation in August 1953. The Outer Continental Shelf is administered by the federal government and consists of the submerged lands, subsoil and seabed lying between the seaward extent of state jurisdiction and the seaward extent of federal jurisdiction. These jurisdictions are defined as follows:

• State jurisdiction:
• The Texas and Gulf coasts of Florida are extended three marine leagues (nine nautical miles) seaward from the baseline from which the width of the territorial sea is measured. A nautical mile is 6,076 feet.
• Louisiana is extended three imperial nautical miles seaward of the baseline from which the width of the territorial sea is measured. An imperial nautical mile is 6,080.2 feet.
• The seaward limits of all other states are extended three nautical miles seaward of the baseline from which the width of the territorial sea is measured.
• Federal jurisdiction is defined under accepted principles of international law. The seaward limit is the farthest of 200 nautical miles seaward of the baseline from which the width of the territorial sea is measured. In cases where the continental shelf exceeds 200 nautical miles, it is a distance not more than a line 100 nautical miles from the 2,500 meter isobath, or a line 350 nautical miles from the baseline.

Note: An isobath is a line on a map or chart connecting all points having the same or a constant depth below the surface of the water.

OCSLA authorizes the Secretary of the Interior to develop regulations for leasing the Outer Continental Shelf lands with the goal of preventing waste and conserving natural resources by granting leases to the highest qualified bidder as determined by competitive bidding procedures. The Secretary designated the Minerals Management Service (MMS) as the agency responsible for the mineral leasing of submerged Outer Continental Shelf lands and to supervise offshore operations after leases are issued. This includes fishing and other rights relating to aquatic life. Its goal is to administer the process in a way that minimizes risk of injury or damage to human, marine and coastal environments. It also operates to preserve, protect and develop oil and natural gas resources consistent with the need to:

• Make such resources available to meet the nation's energy needs as quickly as possible
• Balance orderly resource development with protection of the human, marine and coastal environments
• Ensure the public a fair and equitable return on the resources of these lands
• Preserve and maintain free enterprise competition

Numerous amendments to the Act have been incorporated over the years. Some of these provide for cancellation of leases or permits if continued activity is likely to cause serious harm to life, both human and fish, or other aquatic life. Others stipulate that economic, social and environmental values of renewable and nonrenewable resources be considered in management of these lands.

APPLICATION

American workers employed in exploring for and mining or drilling of natural resources such as oil, petroleum and other minerals have unique exposures. This is especially true when these activities occur on Outer Continental Shelf Lands. Since operations on the Outer Continental Shelf are not subject to any individual state workers compensation laws, special federal legislation was necessary to provide workers compensation coverage. This legislation was the Outer Continental Shelf Lands Act.

OCSLA extends the benefits of the United States Longshore and Harbor Workers' Compensation Act (USL&HWCA) to workers injured or killed on fixed structures permanently attached to the outer continental shelf for the purpose of natural resource exploration or development. It makes the laws of the United States apply to all artificial islands and fixed structures erected on the Outer Continental Shelf used to explore for, develop, remove and transport resources. USL&HWCA provides that the liability of an employer described in the Act is exclusive and applies in place of all other employer-to-employee liability, the employee's parents or relatives, and anyone else entitled to recover damages from that employer because of the employee's injury or death. There are several important definitions in connection with this:

• Employer

This is the entity that hires or employs any employees engaged in operations involving or consisting of exploration, development, removal and transportation of natural resources.

• Employee

This is any natural person engaged in any of the activities indicated above. It does not include a master or member of a crew of any ship or vessel, an officer or employee of the United States or any United States agency, an officer or employee of any State or foreign government or any political subdivision of any of these.

• United States

When used in a geographical sense, this includes the Outer Continental Shelf as defined and described above and any artificial islands and fixed structures on it.

HOW TO COVER WORKERS UNDER THE ACT

WC 00 01 09 A–The Outer Continental Shelf Lands Act Coverage Endorsement must be attached to WC 00 00 00 A–Workers Compensation and Employers Liability Insurance Policy in order for coverage to apply. It provides workers compensation insurance and employers liability insurance for work subject to the Outer Continental Shelf Lands Act extension of the United States Longshore and Harbor Workers' Compensation Act. The location and type of work done must be described on the endorsement schedule or on the policy Information Page. It replaces policy General Section C., Workers Compensation Law, and provides that Part Two–Employers Liability Insurance, C., Exclusion 8 does not apply to work subject to the Outer Continental Shelf Lands Act.

Note: Even though the Outer Continental Shelf Lands Act is an extension of the United States Longshore and Harbor Workers' Compensation Act, using WC 00 01 06 A–Longshore and Harbor Workers Compensation Act coverage Endorsement does not provide Outer Continental Shelf Lands Act coverage. In fact, it actually excludes it.