Now, therefore, the Board of Harbor Commissioners of the City of Long Beach resolves as follows: SECTION 1. The City of Long Beach, Calif., by and through its board of harbor commissioners, does hereby petition the Congress of the United States to act favorably upon and adopt Senate Joint Resolution 13 or House Joint Resolution 40, pending in the 83d Congress, or similar legislation designed to accomplish the objects and purposes set forth therein. SEC. 2. That the Congress of the United States reject and defeat any legislation which by its provisions will authorize any Federal department or agency to grant leases on or exercise any proprietary rights in or to the aforesaid lands lying beneath navigable waters within the boundaries of the various States or in or to the natural resources within such lands and waters. SEC. 3. That the city attorney be and he is hereby authorized and requested to present to the Members of Congress and the appropriate committees thereof all matters pertinent to the aforesaid and to transmit a copy of this resolution to the President of the United States and Members of the Congress. SEC. 4. The secretary of the board shall certify to the passage of this resolution by the Board of Harbor Commissioners of the City of Long Beach, and it shall thereupon take effect. SEC. 5. The secretary of the board shall cause this resolution to be published once in the Long Beach Independent, the official newspaper of the city of Long Beach. I hereby certify that the foregoing_resolution was adopted by the Board of Harbor Commissioners of the City of Long Beach, at its meeting of January 26, 1953, by the following vote: Ayes: Commissioners: Davis, Sullivan, Reider, Daubney, Martin. F. D. REIDER, Secretary of the Board of Harbor Commissioners. I hereby certify that the foregoing is a true and correct copy of Resolution No. HD-493, adopted by the Board of Habor Commissioners of the City of Long Beach, Calif., at its regular meeting of January 26, 1953, as same appears in the official records of said board. [SEAL] ALVIN K. MADDY, Executive Secretary of the Board of Harbor Commissioners. Mr. HOSMER. Thank you very much. Mr. GRAHAM. The meeting is adjourned for today, and tomorrow we will meet at 10 o'clock in room 327. (Thereupon, at 4:30 p. m., a recess was taken until Wednesday, March 4, 1953, at 10 a. m. (The following was submitted for the record:) STATEMENT BY HON. LLOYD M. BENTSEN, JR., MEMBER OF CONGRESS, 15TH DISTRICT OF TEXAS I should like to make a statement in behalf of H. R. 371, introduced by myself on January 3, 1953, and referred to the Committee on the Judiciary. This bill is submitted for the purpose of confirming and establishing the titles of the States to lands beneath navigable waters within State boundaries and to the natural resources within such lands and waters, to provide for the use, control, exploration, development, and conservation of certain resources of the Continental Shelf lying outside of State boundaries. PART II-COMMENT IN SUPPORT OF H. R. 371 My purpose in introducing this bill should be completely apparent. Since 1937, most particularly since 1947, one of the major industries of our Nation has been handicapped in its efforts to secure and make available to the country a substance which has come to be referred to as the lifeblood of our modern civilization-oil-the oil which we know is to be found in the Continental Shelf contiguous to our shores. It must be clear to all of us that every possible source of this vital fluid must be developed, yet through the efforts of a shortsighted few we have been denied access to the one of the last great new sources of supply. For many years there was no question as to the ownership of the land and its resources beneath the marginal seas. For well over 100 years the Federal Government had no interest in these lands. It was only after technical progress and the initiative of private enterprise under State auspices had disclosed the presence of oil and gas beneath the water that there was any question at all of ownership of this area. You have all heard many times recited the numerous Supreme Court decisions, the many lesser-court decisions, the Department of the Interior rulings which for many years only affirmed the commonly held belief in State ownership of the submerged lands adjoining their coasts. Additional confirmation can be found in the more than 200 grants of portions of this area to the Federal Government by the States, at the Federal Government's request and seemingly in full recognition of the States' rights. I say it is unnecessary to recount all of these. Suffice it to say that the overwhelming evidence historically points to ownership of this area by the States. However, since 1945, when the Federal Government first instituted suit against California and later against Louisiana and Texas title to the submerged lands and their resources has become clouded. To my mind this is unfortunate. The result of the Federal Government's efforts in this endeavor has been to slow down the production of oil and gas in the submerged lands and to bring almost to a stop efforts to discover new fields offshore. It has long been the feeling among those familiar with the industry that we were on the brink of great discoveries. Now we are in a period of emergency when we need all of our resources. We have a war in Korea, which demands great quantities of oil, and who knows when some spark may touch off the flame which will bring us into a third world war. It is vital to our national defense that we have at hand as much of critical and strategic materials as possible, and oil is among the most essential. Until the question of ownership of the submerged lands and the resources therein is settled it is readily apparent that the oil industry is not going to increase its already great investment in equipment, time, and effort. That is the purpose of my bill H. R. 371. The bill states that all coastal States own the submerged lands seaward for 3 miles, at the same time that it reserves for the Federal Government control of that area for the purposes of commerce, navigation, national defense, and international affairs, all the proper spheres of activity by the National Government. I believe this to be a fair and equitable delineation of ownership and responsibilities. In the interest of the national defense the bill would give the Federal Government priority of right to secure the oil recovered in this area. There can be no quarrel with that provision. Continuity and equity are served by the provisions for continuation of present leases. In settlement of the troublesome question of the marginal seas and the lands and resources beneath them beyond the 3-mile limit the bill would again accomplish an equitable disposition of ownership and responsibility. This is accomplished by placing title to the seabed and subsoil in the United States but recognizing the claims of the coastal States by placing the police power in each such State, including the powers of taxation, conservation, and control of geophysical explorations, so long as they are consistent with Federal laws. Leasing of this area is to be handled by the Secretary of the Interior, giving full recognition to existing leases under the States, but 371⁄2 percent of the revenues therefrom are to accrue to the coastal States. I believe this to be a fair resolution of the problem. Ample attention is given in this bill to the needs of national defense. Since the earliest discoveries of oil and gas in the marginal sea the States have in good faith exercised all of the rights of sovereignty in this area and revenues have been used to support the schools and other public institutions. within those States. The States sorely need these revenues now as we all know. This bill will insure the full return to these States of the 259,000,000 barrels of oil and 75 trillion cubic feet of gas proven to be within the historical boundaries of these States, plus any further reserves that may be discovered later under the accelerated program of exploration which surely will follow the settlement of the question of ownership. The revenues from the estimated potential reserves inside the historical boundaries of 2,850,000,000 barrels are essential to those States. At the same time the revenues from the 12,450,000,000 estimated potential reserves outside the State boundaries would be equitably shared by the coastal States and the Federal Government under this bill. At a minimum royalty rate of 12 percent this would approximate four billions of dollars, to be divided 371⁄2 percent to the coastal States, 62% percent to go to the United States. My bill is drawn to insure the continuity of exploration and best conservation measures so as to derive the greatest good for the Nation from its re30869-53--17 sources in the Continental Shelf. It seems reasonable to expect extensive revision of reserves estimates, once the full genius of American enterprise is brought to bear as it will undoubtedly be once the question of title is settled. The primary question at hand is speed: Let us get started. Let us not neglect this bonanza which is so readily accessible, which we know exists and is so vital to us. We are spending untold millions, searching all over the world for this black gold so necessary to our civilization. Why need we neglect this source right at our very feet? H. R. 371 provides for an orderly transition from the present state of suspended animation brought on by the Supreme Court decisions. It is my opinion that those very decisions in effect invited Congress to dispose of the question of title to the submerged lands and their resources. Thrice Congress has decided that question in favor of the States, and unfortunately the bills were vetoed. We can wait no longer, because the present state of suspended activity is dangerous. No resource is of any value unless it is developed and these resources of the Continental Shelf are not now being developed or made available as they should be. My bill, H. R. 371, will make them available in short order and in an equit able manner, fair to all concerned. Let us decide the question now, and proceed to the main business of producing the oil and gas and other resources which we so urgently need. Gentlemen, I ask your favorable consideration of H. R. 371. In this bill the term "lands beneath navigable waters" includes (1) all lands within the boundaries of the several States covered by waters navigable under United States law at the time each State became a member of the Union, and all lands from the mean high tide line seaward, or into the Great Lakes or Gulf of Mexico 3 geographical miles or to the point where it existed at that time or as approved by Congress, should it extend more than 3 geographical miles; and (2) all lands formerly beneath navigable waters now filled in, made, or reclaimed. The term "boundaries" includes the seaward boundaries of a State or its boundaries in the Gulf of Mexico or any of the Great Lakes as they existed at the time the State joined the Union, or as approved by Congress heretofore or hereafter or as extended or confirmed in this bill. The term "coastline" as here used is the low-water line along the coast in direct contact with the open sea, and marking the seaward limit of inland waters, including all bodies of water which join the open sea. The terms "grantees" and "lessees" include all such entities implied by the legal term "persons" which hold grants or leases from a State or its predecessor sovereign, to lands beneath navigable waters if acquired in accordance with the laws of the State in which such lands are situated, providing nothing in this bill would confer any greater rights or interests than those granted by the States. The term "natural resources" includes marine animal and plant life of all kinds but not waterpower or use of water for power at any site where the United States now owns the waterpower. The term "lands beneath navigable waters" does not include the beds of streams in lands now or heretofore constituting a part of the public lands of the United States if they were not meandered in connection with the public survey of such lands under the laws of the United States. The term "Continental Shelf" means all submerged lands which lie outside and seaward of lands beneath navigable waters as herein defined and of which the subsoil and natural resources appertain to the United States and are subject to its jurisdiction and control. The term "lease," when used in reference to action by a State or its political subdivision or grantee prior to January 1, 1949, is regarded as including any form of authorization for the use, development, or production of lands beneath navigable waters and the natural resources thereof, and the term "lessee," in such connection, includes any person having the right to develop or produce natural resources or lands beneath navigable waters under any such form of authorization. RIGHTS OF THE STATES This bill declares it to be in the public interest that title to and ownership of the lands beneath navigable waters within the boundaries of the respective States, and the natural resources within them, including the right to control, develop, and use them in accord with applicable State law, are recognized, confirmed, established, and vested in the respective States or their grantees, lessees, or successors in interest thereof, subject to the provisions of this act. By this bill the United States releases and relinquishes to the States and/or its grantees and lessees all of whatever rights, title, and interest in the land, moneys, improvements, and natural resources. Hereby it relinquishes all claims arising from any operations pursuant to State authority within such lands and navigable waters. This bill recognizes all grants and leases in force and effect on June 5, 1950. Such rights, in accord with the laws of the State granting them, are further subject to the provisions of this act for maintaining such a lease and operations thereunder for their full term and any extensions grantable under this bill, with the following provisos : 1. If oil and gas were not being produced under such a lease on or before December 11, 1950, then for a term from the effective date hereof equal to the term remaining unexpired on that date, under the provisions of the lease or any extensions, renewals, or replacements authorized by its terms. 2. That all rents, royalties, and other sums payable under such lease and the laws of the State issuing or whose grantee issued such lease between June 5, 1950, and the effective date of this act not paid heretofore are paid to the State or its grantee issuing the lease within 90 days from the effective date of this act. 3. Nothing in this bill would affect the use, development, improvement, or control by or under the constitutional authority of the United States of such lands and waters for the purposes of navigation, flood control, or production of power at any site where the United States now owns or may hereafter acquire the waterpower, nor be construed as the release or relinquishment of any rights of the United States arising under the constitutional authority of Congress to regulate or improve navigation or to provide for flood control or the production of power at any site where the United States now owns the waterpower. SEAWARD BOUNDARIES Any State which has not done so may extend its seaward boundaries to a line 3 geographical miles distant from its coastline. States bordering the Great Lakes may extend their boundaries to the international boundary line. This bill approves any such claim asserted now or hereafter without prejudice to its claims, if any, to boundaries extending beyond that line. The bill does not question or prejudice the existence of any State's seaward boundary beyond the 3 geographical miles if it was so provided in the State's constitution or laws prior to its joining the Union or is approved by Congress. Exceptions to the above are: 1. Land, specifically designated, resources, and improvements held by the United States, title to which has been acquired lawfully and expressly from any State or holder of title proceeding from a State. 2. Any lands or interests in lands beneath navigable waters held by the United States in trust for the benefit of Indians. POWERS RETAINED BY THE UNITED STATES This bill provides that the United States retains all its power of regulation and control of the submerged lands and navigable waters for the purposes of commerce, navigation, national defense, and international affairs. None of these implies any of the proprietary rights of ownership, use, development, or control of the lands and natural resources which are specifically assigned to the States or their respective grantees or lessees by this bill. In time of war, when Congress or the President so prescribes, when necessary for national defense, the United States shall have priority rights to purchase at prevailing market prices, any or all of the natural resources, or to acquire and use any portion of these lands under due process of law and upon payment of just compensation therefor. JURISDICTION OVER CONTINENTAL SHELF The bill declares it to be the policy of the United States that the natural resources of the subsoil and seabed of the Continental Shelf appertain to the United States and are subject to its jurisdiction, control, and power as provided herewith, with the following qualifications: 1. Except when exercised in a manner inconsistent with pertinent Federal laws, the police power of coastal States extends to that portion of the Continental Shelf within the boundaries of those states extended to the outer margin of the Continental Shelf. Police power includes the power of taxation, conservation, and control of the manner of conducting geophysical explorations. However, the waters above the Continental Shelf, under this bill are to be considered to have the character of the high seas and the right to their free and unimpeded navigation is not to be abridged. 2. Oil and gas deposits are to be controlled and disposed of only in accord with the provisions of this bill; no other rights or claims are to be recognized. PROVISIONS FOR LEASING OF CONTINENTAL SHELF Oil and gas leases on any area not then under lease by a littoral State or the Federal Government may be granted upon request of any responsible and qualified person or when the Secretary of the Interior deems there is a demand for purchase of such leases. Conditions for their granting are as follows: 1. Sales are to be made to the responsible and qualified bidder offering the highest cash bonus per leasing unit. 2. Notice of sale at least 30 days before sale should contain: (a) description of tract; (b) minimum bonus per acre acceptable to Secretary of the Interior on each leasing unit; (c) amount of royalty; (d) amount of rental per acre per year: (e) time and place bids to be opened in public. The leasing units are to be reasonably compact and of such size as the Secretary of the Interior may determine. They may be at least 640 acres but not more than 2,560 acres if within the known geologic structure of a producing field. If not within such a structure they must be at least 2,560 acres but not over 7,680 acres. The term of such leases shall be for 5 years and shall continue so long as oil or gas is produced in paying quantities. Precautions are provided in the form of requirements for standards of diligence, efficiency, and careful practices. Such leases shall provide for minimum royalties of 12% percent of the value of recovery from the leasehold or not less than $1 per acre per year in lieu of rental for each lease year after discovery. Provision is made for the eventuality of cessation of operations or production from whatever cause. All leases require payment of an annual rental of $1 per acre beginning the second year, payable in advance, during the primary term and in lieu of drilling operations or production from the leasing unit. If at expiration of the primary term of a lease, oil or gas is not being produced in paying quantities but drilling operations, having been started 180 days before termination are being diligently prosecuted, the lease shall remain in force. This shall be so as long as such drilling continues, and if production results, so long as production in paying quantities continues. Such leases may be canceled upon failure of grantees or lessees to comply with provisions of the bill as determined in the appropriate court, provided, however, the Secretary of the Interior allow the lessee 20 days in which to show cause in writing why it should not be done. They may be canceled or disposal of interest required by court proceeding showing any interest in ownership or control to be in violation of any of the provisions of the bill. The Secretary of the Interior may specify other terms consistent with the terms of the bill, and he may delegate his authority under the bill to others within the Department of the Interior. Leases or any interest in leases may not be held by citizens of other nations not granting similar or like privileges to citizens or corporations of this country. Any such persons acquiring such rights by descent, will, judgment or decree must dispose of it within 2 years. No rights acquired under this bill may be controlled by any combination in the form of an unlawful trust or be a part of an agreement, contract, understanding, or conspiracy in restraint of trade or commerce in the production or sale of oil or gas or to control their prices. Fraud or misrepresentation in obtaining any lease is ground for invalidation through court action, and such lease cannot be offered for exchange. EXCHANGE OF EXISTING STATE LEASES IN CONTINENTAL SHELF FOR FEDERAL LEASES The Secretary of the Interior is directed to issue a lease to any person in exchange for a lease covering lands in the Continental Shelf under the following conditions: 1. Issued by any State or its grantee prior to January 1, 1949, in force and effect on June 5, 1950, in accord with that State's law. |