To direct the Minerals Management Service to grant the State of Louisiana and its lessees a credit in the payment of Federal offshore royalties to compensate for oil and gas drainage in the West Delta Field.

Prescribes guidelines under which State lessees may withhold payment of Federal offshore royalties owed to the United States under the Outer Continental Shelf Lands Act if such lessees pay the State of Louisiana, on or before such royalty due date, 44 cents for every dollar of royalty withheld.

Requires such lessees to report quarterly to the Director of the Minerals Management Service on the Federal leases for which the royalty payments are withheld.

Identifies such State lessees as holders of lease rights in certain State leases during a specified Critical Time Period who did not also hold lease rights in a specified Federal lease.