(December 2020)
The Outer Continental Shelf Lands Act (OCSLA) was enacted by legislation in August 1953. The federal government administers the Outer Continental Shelf. It consists of the submerged lands, subsoil, and seabed between the seaward extent of state jurisdiction and the seaward extent of federal jurisdiction. These jurisdictions are defined as follows:
Note: A nautical mile is 6,076 feet.
Note: A U.S. l nautical mile is 6,080.2 feet.
Note: An international nautical mile is 6076.10333 feet.
This 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 territorial sea’s width 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 that connects all points that have the same or a constant depth below the water's surface.
OCSLA authorizes the Secretary of the Interior to develop regulations to lease the Outer Continental Shelf lands. The goal is to prevent waste and to conserve natural resources by granting leases to the highest qualified bidder as competitive bidding procedures determine. The Secretary of the Interior grants leases to the highest qualified, responsible bidder based on sealed competitive bids. It also formulates regulations and is responsible for leasing submerged Outer Continental Shelf lands and supervising offshore operations after it issues the leases. This includes fishing and other rights that relate 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 do the following:
There have been numerous amendments to the Act over the years. Some provide for cancellation of leases or permits if continued activity is likely to cause serious harm to the environment, human, fish, or other aquatic life. Others stipulate considering economic, social, and environmental values of renewable and nonrenewable resources in managing these lands.
American workers employed to explore for, mine, or drill 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. Operations there are not subject to any individual state workers compensation laws. As a result, 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 that are permanently attached to the outer continental shelf. Those structures must be there for the purpose of exploring for and/or developing natural resources. It makes United States laws apply to all artificial islands and fixed structures erected on the Outer Continental Shelf that are used to explore for, develop, remove, and transport these resources. USL&HWCA provides that the liability of employers described in the Act is exclusive. It applies in place of all other employer-to-employee liability, to the employee's parents or relatives, and anyone else entitled to recover damages from that employer because of the employee's injury or death. The following are several important definitions in connection with this:
This is the entity that hires or employs any workers engaged in operations that involve or consist of exploring, developing, removing, or transporting natural resources.
This is any natural person engaged in any of the activities listed above. It does not include a master or crewmember of any ship or vessel, an officer or employee of the United States (or of any United States agency), an officer or employee of any state or foreign government, or any political subdivision of any of these.
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.
WC 00 01 09 C–The Outer
Continental Shelf Lands Act Coverage Endorsement must be attached to
WC 00 00 00 C–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 the policy Information Page. It replaces policy General Section C., Workers Compensation Law. It 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.