SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Montana Mineral Exchange Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Ancillary fund.--The term ``Ancillary Fund'' means the 
        Northern Cheyenne Ancillary Fund established by section 
        5(a)(1).
            (2) Annual 6 percent amount.--The term ``annual 6 percent 
        amount'' means the amount from the Permanent Fund that becomes 
        available each Permanent Fund fiscal year for expenditure or 
        obligation, as provided in section 5(d).
            (3) Annual tonnage.--The term ``annual tonnage'' means the 
        total tonnage of merchantable coal mined during a fiscal year 
        from any mine established after the date of enactment this Act 
        in an approved mine plan area that includes land all or a 
        portion of which is located not more than 25 miles from the 
        boundary of the Northern Cheyenne Reservation, as the boundary 
        exists on the date of enactment of this Act.
            (4) Base sum.--The term ``base sum'' means the amount equal 
        to the annual tonnage multiplied by 50 cents per ton.
            (5) Cheyenne tracts.--The term ``Cheyenne tracts'' means 
        the tracts of land located in the eastern portion of the State 
        within the boundaries of the Northern Cheyenne Reservation, 
        totaling approximately 5,000 acres, as generally depicted on 
        the map entitled ``Cheyenne Coal Land Exchange'' and dated 
        January 9, 2004, and that have the following legal 
        descriptions:
                    (A) T. 2 S., R. 44 E., sec. 17.
                    (B) T. 2 S., R. 44 E., sec. 19.
                    (C) T. 3 S., R. 44 E., sec. 5.
                    (D) T. 3 S., R. 44 E., sec. 7.
                    (E) T. 3 S., R. 44 E., sec. 9.
                    (F) T. 3 S., R. 44 E., sec. 17.
                    (G) T. 3 S., R. 44 E., sec. 19.
                    (H) T. 3 S., R. 44 E., sec. 21, N\1/2\SW\1/4\, and 
                S\1/2\SE\1/4\.
            (6) Exchange.--The term ``exchange'' means the exchange of 
        mineral rights described in section 3(a).
            (7) Federal tracts.--The term ``Federal tracts'' the 
        unleased tracts of land located in the State of Montana, 
        consisting of approximately 5,000 acres, as generally depicted 
        on the map entitled ``Cheyenne Coal Land Exchange'' and dated 
        January 9, 2004, and that have the following legal description:
                    (A) T. 11 N., R. 49 E., sec. 8, S\1/2\.
                    (B) T. 11 N., R. 49 E., sec. 21.
                    (C) T. 11 N., R. 49 E., sec. 27, W\1/2\NW\1/4\.
                    (D) T. 11 N., R. 49 E., sec. 28, NE\1/4\, N\1/
                2\SE\1/4\, and N\1/2\NW\1/4\.
                    (E) T. 9 S., R. 40 E., sec. 3, SW\1/4\SE\1/4\SE\1/
                4\, and SW\1/4\SE\1/4\.
                    (F) T. 9 S., R. 40 E., sec. 4, SW\1/4\NW\1/4\.
                    (G) T. 9 S., R. 40 E., sec. 5, S\1/2\NE\1/4\ and 
                SE\1/4\.
                    (H) T. 9 S., R. 40 E., sec. 8, NW\1/4\NE\1/4\NE\1/
                4\ and NW\1/4\NE\1/4\.
                    (I) T. 9 S., R. 38 E., sec. 24, lot 16 and SE\1/
                4\SE\1/4\.
                    (J) T. 9 S., R. 38 E., sec. 25, lots 9, 12, 13, 16, 
                and E\1/2\E\1/2\.
                    (K) T. 9 S., R. 38 E., sec. 36, E\1/2\SE\1/4\.
                    (L) T. 9 S., R. 39 E., sec. 20, lots 1, 2, 3, and 
                4, E\1/2\NW\1/4\, E\1/2\NE\1/4\, SW\1/4\NE\1/4\, E\1/
                2\SW\1/4\, and SE\1/4\.
                    (M) T. 9 S., R. 39 E., sec. 21, SW\1/4\SW\1/4\.
                    (N) T. 9 S., R. 39 E., sec. 28, W\1/2\NW\1/4\, 
                SW\1/4\, W\1/2\SE\1/4\, and NE\1/4\SE\1/4\.
                    (O) T. 9 S., R. 39 E., sec. 29.
                    (P) T. 9 S., R. 39 E., sec. 32, lots 1, 3, 4, 5, 6, 
                and 7, NE\1/4\NW\1/4\, N\1/2\NE\1/4\, SE\1/4\NE\1/4\, 
                NE\1/4\SW\1/4\, and N\1/2\SE\1/4\.
                    (Q) T. 9 S., R. 39 E., sec. 33, lots 1, 2, 3, and 
                4, NW\1/4\, S\1/2\NE\1/4\, N\1/2\SW\1/4\, and N\1/
                2\SE\1/4\.
                    (R) T. 9 S., R. 39 E., sec. 34, lots 1, 2, 3, and 
                4, N\1/2\SW\1/4\, and N\1/2\SE\1/4\.
            (8) Great northern properties.--The term ``Great Northern 
        Properties'' means Great Northern Properties Limited 
        Partnership, a Delaware limited partnership, and any successor 
        to the ownership interest of Great Northern Properties in the 
        minerals underlying the Cheyenne tracts.
            (9) Immediately preceding permanent fund years.--The term 
        ``immediately preceding Permanent Fund years'' means the 3 
        Permanent Fund fiscal years immediately preceding the current 
        Permanent Fund fiscal year, except that--
                    (A) for the second Permanent Fund fiscal year, the 
                term means the first Permanent Fund fiscal year; and
                    (B) for the third Permanent Fund fiscal year, the 
                term means the first and second Permanent Fund fiscal 
                years.
            (10) Income.--The term ``income'' means the total net 
        return from the investment of the Permanent Fund or Ancillary 
        Fund, consisting of--
                    (A) all interest, dividends, realized and 
                unrealized gains and losses and other earnings, plus 
                all income resulting from the investment of the income; 
                less
                    (B) any costs and fees for private investment 
                management, investment consulting, and custodianship 
                and any other reasonably necessary transactional 
                services or matters.
            (11) Permanent fund.--The term ``Permanent Fund'' means the 
        Northern Cheyenne Permanent Fund established by section 
        5(a)(2).
            (12) Permanent fund fiscal year.--The term ``Permanent Fund 
        fiscal year'' means a fiscal year of the Permanent Fund as 
        defined in the Permanent Fund plan.
            (13) Permanent fund plan.--The term ``Permanent Fund plan'' 
        means the plan established under section 5(g).
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (15) Trailing average permanent fund value.--The term 
        ``trailing average Permanent Fund value'' means the average 
        quarterly market value of the Permanent Fund during the 
        immediately preceding Permanent Fund years.
            (16) Tribe.--The term ``Tribe'' means the Northern Cheyenne 
        Tribe.

SEC. 3. MINERAL RIGHTS EXCHANGE.

    (a) In General.--Notwithstanding any other provision of Federal 
law, concurrent with the conveyance from Great Northern Properties to 
the United States of all of its mineral interests underlying the 
Cheyenne tract, the Secretary shall convey to Great Northern Properties 
all mineral interests in the Federal tracts.
    (b) Trust.--On conveyance of the mineral interests underlying the 
Cheyenne tracts to the United States, the Secretary shall take the 
mineral interests into trust for the benefit of the Tribe.

SEC. 4. TERMS AND CONDITIONS OF EXCHANGE.

    (a) Waiver of Legal Claims.--In return for the exchange, the Tribe 
shall waive any and all claims relating to the failure of the United 
States to previously acquire in trust for the Tribe as part of the 
Northern Cheyenne Reservation the private mineral interests underlying 
the Cheyenne tracts.
    (b) Condition.--As a condition precedent of the exchange, the Tribe 
and Great Northern Properties shall jointly notify the Secretary in 
writing that they have agreed on a formula for the sharing of revenue 
from coal produced from any portion of the Federal tracts.
    (c) Completion of Exchange.--Notwithstanding any other provision of 
law, after satisfaction of the condition precedent specified in 
subsection (b), the exchange shall be completed in a single transaction 
not later than 90 days after the date on which the Secretary receives 
notice under subsection (b).
    (d) Rescission of Exchange.--If a portion of the completed exchange 
is invalidated by a court of competent jurisdiction and the judgment of 
the court is no longer subject to appellate review, the Secretary or 
Great Northern Properties may rescind the entire exchange.

SEC. 5. NORTHERN CHEYENNE PERMANENT FUND AND NORTHERN CHEYENNE 
              ANCILLARY FUND.

    (a) Establishment.--There are established in the Treasury of the 
United States--
            (1) a fund to be known as the ``Northern Cheyenne Permanent 
        Fund''; and
            (2) a fund to be known as the ``Northern Cheyenne Ancillary 
        Fund''.
    (b) Authorization of Appropriations to Funds.--There are authorized 
to be appropriated--
            (1) to the Permanent Fund $10,000,000 for each of fiscal 
        years 2005, 2006, and 2007; and
            (2) to the Ancillary Fund $10,000,000 for each of fiscal 
        years 2008, 2009, 2010, and 2011.
    (c) Transfers From Ancillary Fund to Permanent Fund.--
            (1) In general.--Not later than 120 days after the end of 
        fiscal year 2008 and each subsequent fiscal year in which 
        amounts in the Ancillary Fund are available for transfer to the 
        Permanent Fund, the Secretary of the Treasury shall transfer 
        from the Ancillary Fund to the Permanent Fund an amount, as 
        determined by the Secretary, equal to--
                    (A) the base sum; plus or minus
                    (B) any accrued realized and undisbursed income or 
                any accrued realized loss in the Ancillary Fund as of 
                the end of the fiscal year, in an amount not to exceed 
                the base sum.
            (2) Written statement.--As soon as practicable after a 
        transfer under paragraph (1), the Secretary of the Treasury 
        shall provide to the Tribe--
                    (A) a written statement describing--
                            (i) the amount transferred under paragraph 
                        (1); and
                            (ii) how the amount was calculated; and
                    (B) copies of any written materials used to 
                determine the amount.
    (d) Expenditures From Permanent Fund.--
            (1) In general.--Beginning with the second Permanent Fund 
        fiscal year and during each subsequent Permanent Fund fiscal 
        year, the Tribe may expend or obligate not more than 6 percent 
        of the trailing average Permanent Fund value (plus, during each 
        Permanent Fund fiscal year subsequent to the second Permanent 
        Fund fiscal year, the amount of any unexpended and unobligated 
        portion of the annual 6 percent amount from any of the 
        immediately preceding Permanent Fund years, not including any 
        income that may accrue on that portion) only for the following 
        purposes:
                    (A) Education.
                    (B) Law enforcement.
                    (C) Any other tribal governmental services or 
                facilities.
                    (D) Economic development.
                    (E) Acquisition of land, water rights, or related 
                property interests.
                    (F) Payment of costs and fees incurred in 
                connection with the investment of the Permanent Fund 
                for private investment management, investment 
                consulting, custodianship, and any other reasonably 
                necessary transactional services or matters.
            (2) No other expenditures from permanent fund.--No amounts 
        from the Permanent Fund may be expended or obligated--
                    (A) for the purpose of making per capita payments 
                to members of the Tribe or litigating against any 
                aspect of any proposed or existing off-Reservation coal 
                mining, oil or gas development, or electric power 
                generation project; or
                    (B) for any other purpose other than a purpose 
                authorized in paragraph (1).
    (e) Compliance With Permanent Fund Plan.--The Tribe shall invest, 
manage, disburse, and expend the amounts in the Permanent Fund for the 
purposes described in subsection (d)(1) in accordance with the 
Permanent Fund plan.
    (f) Investment Through Secretary.--
            (1) In general.--As requested by the Tribe, the Secretary 
        shall invest any portions of the Permanent Fund and the 
        Ancillary Fund in interest-bearing deposits and securities in 
        accordance with--
                    (A) the Act of April 1, 1880 (21 Stat. 70, chapter 
                41; 25 U.S.C. 161); and
                    (B) the Act of June 24, 1938 (25 U.S.C. 162a).
            (2) Income.--
                    (A) Permanent fund.--All income earned on 
                investments in the Permanent Fund shall be deposited in 
                the Permanent Fund.
                    (B) Ancillary fund.--All income earned on 
                investments in the Ancillary Fund shall be deposited in 
                the Ancillary Fund.
    (g) Development of Permanent Fund Plan.--
            (1) In general.--The Tribe shall--
                    (A) develop a Permanent Fund plan, in consultation 
                with the Secretary, for the investment, management, 
                administration, and expenditure of the amounts in the 
                Permanent Fund; and
                    (B) submit the plan to the Secretary.
            (2) Contents.--The Permanent Fund plan--
                    (A) shall set forth the manner in which amounts in 
                the Permanent Fund shall be managed, administered, and 
                expended for the purposes described in subsection 
                (d)(1); and
                    (B) may provide for investment management of all or 
                any portion of the Permanent Fund by qualified private 
                professional investment managers.
            (3) Revision.--The Permanent Fund plan may be revised and 
        updated by the Tribe, in consultation with the Secretary.
    (h) Federal Disbursements.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law, while the Permanent Fund or any portion of the 
        Permanent Fund is invested by the Secretary under subsection 
        (f), on request of the Tribe, the Secretary of the Treasury and 
        the Secretary shall make available to the Tribe, amounts in the 
        Permanent Fund to be used--
                    (A) for any of the purposes set forth in subsection 
                (d)(1); or
                    (B) as may be provided in the Permanent Fund plan 
                under subsection (g)(2)(B), to enable submission of all 
                or any portion of the Permanent Fund to private 
                professional investment management.
            (2) Exception.--No amounts shall be made available to the 
        Tribe under paragraph (1) until the Tribe adopts the Permanent 
        Fund plan required by subsection (g).
    (i) Enforcement.--The Secretary may take any judicial or 
administrative action to enforce the provisions of the Permanent Fund 
plan that is necessary to ensure that any amount withdrawn from the 
Permanent Fund is used in accordance with this Act.
    (j) Liability.--If the Tribe exercises the right to withdraw an 
amount from the Permanent Fund, neither the Secretary nor the Secretary 
of the Treasury shall retain any liability for the expenditure or 
investment of the amount withdrawn.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    In addition to the amounts authorized to be appropriated to the 
Permanent Fund and Ancillary Fund under section 5(b), there are 
authorized to be appropriated such sums as are necessary to carry out 
this Act.
Montana Mineral Exchange Act - Sets forth a mineral rights exchange under which the Secretary of the Interior is directed to convey to Great Northern Properties all mineral interests in certain Federal tracts concurrent with conveyance from Great Northern Properties to the United States all of its mineral interests underlying the Cheyenne tract.

Requires the Secretary, following such conveyance, to take [sic] such mineral interests into trust for the benefit of the Northern Cheyenne Tribe (Tribe).

Conditions the exchange upon: (1) waiver by the Tribe of all claims relating to the failure of the United States to previously acquire in trust for the Tribe as part of the Northern Cheyenne Reservation the private mineral interests underlying the Cheyenne tracts; and (2) joint written notification to the Secretary by the Tribe and Great Northern Properties that they have agreed upon a formula for sharing revenue from coal produced from any portion of the Federal tracts.

 Establishes in the Treasury: (1) the Northern Cheyenne Permanent Fund; and (2) the Northern Cheyenne Ancillary Fund.

Prescribes procedural guidelines for: (1) transfers from the Ancillary Fund to the Permanent Fund; and (2) expenditures from the Permanent Fund.

Requires the Tribe to develop a Permanent Fund plan, in consultation with the Secretary, for the investment, management, administration, and expenditure of the amounts in the Permanent Fund.

Prescribes guidelines for Federal disbursements to the Tribe.
A bill to authorize an exchange of mineral rights by the Secretary of the Interior in the State of Montana.