T he development of offshore oil, gas, and other mineral resources in the United States is shaped by a number of interrelated legal regimes, including international, federal, and state laws. International law provides a framework for establishing national ownership or control of offshore areas, and U.S. domestic law has, in substance, adopted these internationally recognized principles. It also describes state and federal laws governing development of offshore oil and gas and litigation under these legal regimes. Nations may also claim an area, termed the contiguous zone, which extends 24 nautical miles from the coast (or baseline). State Jurisdiction

In accordance with the federal Submerged Lands Act of 1953 (SLA), coastal states are generally entitled to an area extending three geographical miles from their officially recognized coast (or baseline). Federal Resources

The primary federal law governing development of oil and gas in federal waters is the Outer Continental Shelf Lands Act (OCSLA). More than simply declaring federal control, the OCSLA has as its primary purpose "expeditious and orderly development [of OCS resources], subject to environmental safeguards, in a manner which is consistent with the maintenance of competition and other national needs...." To effectuate this purpose, the OCSLA extends application of federal laws to certain structures and devices located on the OCS; provides that the law of adjacent states will apply to the OCS when it does not conflict with federal law; and, significantly, provides a comprehensive leasing process for certain OCS mineral resources and a system for collecting and distributing royalties from the sale of these federal mineral resources. The Trump Administration has proposed a superseding Five-Year Program, and published a Draft Proposed Program for 2019-2024 in January 2018. For leases located in "the Western and Central Planning Areas of the Gulf of Mexico and the portion of the Eastern Planning Area of the Gulf of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 minutes West longitude and in the Planning Areas offshore Alaska," a broader authority is also provided, allowing the Secretary, with the lessee's consent, to make "other modifications" to royalty or profit share requirements to encourage increased production. The terms of the lease itself create obligations for offshore oil and natural gas exploration and production lessees. The standards for review outlined in Watt have been upheld in subsequent litigation related to the five-year program.
The development of offshore oil, gas, and other mineral resources in the United States is impacted by a number of interrelated legal regimes, including international, federal, and state laws. International law provides a framework for establishing national ownership or control of offshore areas, and domestic federal law mirrors and supplements these standards.
Governance of offshore minerals and regulation of development activities are bifurcated between state and federal law. Generally, states have primary authority in the area extending three geographical miles from their coasts. The federal government and its comprehensive regulatory regime govern minerals located under federal waters, which extend from the states' offshore boundaries to at least 200 nautical miles from the shore. The basis for most federal regulation is the Outer Continental Shelf Lands Act (OCSLA), which provides a system for offshore oil and gas exploration, leasing, and ultimate development. Regulations run the gamut from health, safety, resource conservation, and environmental standards to requirements for production-based royalties and, in some cases, royalty relief and other development incentives.
The five-year program for offshore leasing for 2017-2022 adopted by the Bureau of Ocean Energy Management focuses only on new exploration and production in the Gulf of Mexico and the Cook Inlet off the coast of Alaska. However, the Trump Administration has published a 2019-2024 Draft Proposed Plan that would supersede the 2017-2022 Program. Congress is also free to alter the scope of offshore oil and gas exploration and production contemplated by the 2017-2022 Program via new legislation.
In addition to legislative and regulatory efforts, there has also been significant litigation related to offshore oil and gas development. Over a number of years, courts have clarified the extent of the Secretary of the Interior's discretion over how leasing and development are conducted.