109TH CONGRESS

2D SESSION S. 2769

AN ACT

To authorize appropriations for fiscal year 2007 for defense

activities of the Department of Energy, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
 †

2

S 2769 ES

1 SECTION 1. TABLE OF CONTENTS.

2 The table of contents for this Act is as follows:

Sec. 1. Table of contents.

Sec. 2. Congressional defense committees.

DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECURITY

AUTHORIZATIONS AND OTHER AUTHORIZATIONS

TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL SECURITY

PROGRAMS

Subtitle A—National Security Programs

Sec. 3101. National Nuclear Security Administration.

Sec. 3102. Defense environmental cleanup.

Sec. 3103. Other defense activities.

Sec. 3104. Defense nuclear waste disposal.

Subtitle B—Other Matters

Sec. 3111. Notice and wait requirement applicable to certain third party financing arrangements.

Sec. 3112. Utilization of international contributions to the Global Threat Reduction Initiative.

Sec. 3113. Utilization of international contributions to the Second Line of Defense Core Program.

Sec. 3114. Extension of Facilities and Infrastructure Recapitalization Program.

Sec. 3115. Two-year extension of authority for appointment of certain scientific, engineering, and technical personnel.

Sec. 3116. Extension of deadline for transfer of lands to Los Alamos County,

New Mexico, and of lands in trust for the Pueblo of San

Ildefonso.

Sec. 3117. Limitations on availability of funds for Waste Treatment and Immobilization Plant.

Sec. 3118. Limitation on availability of funds for implementation of the Russian Surplus Fissile Materials Disposition Program.

Sec. 3119. Limitation on availability of funds for construction of MOX Fuel

Fabrication Facility.

Sec. 3120. Technical correction related to authorization of appropriations for

fiscal year 2006.

Sec. 3121. Education of future nuclear engineers.

TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII—NATIONAL DEFENSE STOCKPILE

Sec. 3301. Transfer of government-furnished uranium stored at Sequoyah

Fuels Corporation, Gore, Oklahoma.

TITLE XXXIV—NAVAL PETROLEUM RESERVES

Sec. 3401. Completion of equity finalization process for Naval Petroleum Reserve Numbered 1.
†

3

S 2769 ES

1 SEC. 2. CONGRESSIONAL DEFENSE COMMITTEES.

2 For purposes of this Act, the term ‘‘congressional de3 fense committees’’ has the meaning given that term in sec4 tion 101(a)(16) of title 10, United States Code.

5 DIVISION C—DEPARTMENT OF

6 ENERGY NATIONAL SECURITY

7 AUTHORIZATIONS AND

8 OTHER AUTHORIZATIONS

9 TITLE XXXI—DEPARTMENT OF

10 ENERGY NATIONAL SECURITY

11 PROGRAMS

12 Subtitle A—National Security

13 Programs

14 SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRA15 TION.

16 (a) AUTHORIZATION OF APPROPRIATIONS.—Funds

17 are hereby authorized to be appropriated to the Depart18 ment of Energy for fiscal year 2007 for the activities of

19 the National Nuclear Security Administration in carrying

20 out programs necessary for national security in the

21 amount of $9,333,311,000, to be allocated as follows:

22 (1) For weapons activities, $6,455,389,000.

23 (2) For defense nuclear nonproliferation activi24 ties, $1,726,213,000.

25 (3) For naval reactors, $795,133,000.
†

4

S 2769 ES

1 (4) For the Office of the Administrator for Nu2 clear Security, $356,576,000.

3 (b) AUTHORIZATION OF NEW PLANT PROJECTS.—

4 From funds referred to in subsection (a) that are available

5 for carrying out plant projects, the Secretary of Energy

6 may carry out new plant projects for the National Nuclear

7 Security Administration as follows:

8 (1) For readiness in technical base and facili9 ties, the following new plant projects:

10 Project 07–D–140, Readiness in Technical

11 Base and Facilities Program, project engineer12 ing and design, various locations, $4,977,000.

13 Project 07–D–220, Radioactive liquid

14 waste treatment facility upgrade project, Los

15 Alamos National Laboratory, Los Alamos, New

16 Mexico, $14,828,000.

17 (2) For facilities and infrastructure recapital18 ization, the following new plant project:

19 Project 07–D–253, Technical Area 1 heat20 ing systems modernization, Sandia National

21 Laboratories, Albuquerque, New Mexico,

22 $14,500,000.

23 (3) For defense nuclear nonproliferation, the

24 following new plant project:
†

5

S 2769 ES

1 Project 07–SC–05, Physical Sciences Fa2 cility, Pacific Northwest National Laboratory,

3 Richland, Washington, $4,220,000.

4 (4) For naval reactors, the following new plant

5 project:

6 Project 07–D–190, Materials Research

7 Technology Complex, project engineering and

8 design, Bettis Atomic Power Laboratory, West

9 Mifflin, Pennsylvania, $1,485,000.

10 SEC. 3102. DEFENSE ENVIRONMENTAL CLEANUP.

11 Funds are hereby authorized to be appropriated to

12 the Department of Energy for fiscal year 2007 for defense

13 environmental cleanup activities in carrying out programs

14 necessary for national security in the amount of

15 $5,430,312,000.

16 SEC. 3103. OTHER DEFENSE ACTIVITIES.

17 Funds are hereby authorized to be appropriated to

18 the Department of Energy for fiscal year 2007 for other

19 defense activities in carrying out programs necessary for

20 national security in the amount of $624,530,000.

21 SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

22 Funds are hereby authorized to be appropriated to

23 the Department of Energy for fiscal year 2007 for defense

24 nuclear waste disposal for payment to the Nuclear Waste

25 Fund established in section 302(c) of the Nuclear Waste
†

6

S 2769 ES

1 Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount

2 of $333,080,000.

3 Subtitle B—Other Matters

4 SEC. 3111. NOTICE AND WAIT REQUIREMENT APPLICABLE

5 TO CERTAIN THIRD PARTY FINANCING AR6 RANGEMENTS.

7 Subtitle A of title XLVIII of the Atomic Energy De8 fense Act (50 U.S.C. 2781 et seq.) is amended by adding

9 at the end the following new section:

10 ‘‘SEC. 4804. NOTICE AND WAIT REQUIREMENT APPLICABLE

11 TO CERTAIN THIRD PARTY FINANCING AR12 RANGEMENTS.

13 ‘‘(a) NOTICE AND WAIT REQUIREMENT.—The Sec14 retary of Energy may not enter into an arrangement de15 scribed in subsection (b) until 30 days after the date on

16 which the Secretary notifies the congressional defense

17 committees in writing of the proposed arrangement.

18 ‘‘(b) COVERED ARRANGEMENTS.—

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), an arrangement referred to in subsection

21 (a) is any alternative financing arrangement, third

22 party financing arrangement, public-private partner23 ship, privatization arrangement, private capital ar24 rangement, or other financing arrangement that—
†

7

S 2769 ES

1 ‘‘(A) is entered into in connection with a

2 project conducted using funds authorized to be

3 appropriated to the Department of Energy to

4 carry out programs necessary for national secu5 rity; and

6 ‘‘(B) involves a contractor or Federal

7 agency obtaining and charging to the Depart8 ment of Energy as an allowable cost under a

9 contract the use of office space, facilities, or

10 other real property assets with a value of at

11 least $5,000,000.

12 ‘‘(2) EXCEPTION.—An arrangement referred to

13 in subsection (a) does not include an arrangement

14 that—

15 ‘‘(A) involves the Department of Energy or

16 a contractor acquiring or entering into a capital

17 lease for office space, facilities, or other real

18 property assets; or

19 ‘‘(B) is entered into in connection with a

20 capital improvement project undertaken as part

21 of an energy savings performance contract

22 under section 801 of the National Energy Con23 servation Policy Act (42 U.S.C. 8287).’’.
†

8

S 2769 ES

1 SEC. 3112. UTILIZATION OF INTERNATIONAL CONTRIBU2 TIONS TO THE GLOBAL THREAT REDUCTION

3 INITIATIVE.

4 Section 3132 of the Ronald W. Reagan National De5 fense Authorization Act for Fiscal Year 2005 (Public Law

6 108–375; 50 U.S.C. 2569) is amended—

7 (1) by redesignating subsection (f) as sub8 section (g); and

9 (2) by inserting after subsection (e) the fol10 lowing new subsection:

11 ‘‘(f) INTERNATIONAL PARTICIPATION IN PRO12 GRAM.—(1) In order to achieve international participation

13 in the program under subsection (b), the Secretary of En14 ergy may, with the concurrence of the Secretary of State,

15 enter into one or more agreements with any person, for16 eign government, or other international organization that

17 the Secretary of Energy considers appropriate for the con18 tribution of funds by such person, government, or organi19 zation for purposes of the programs described in para20 graph (2)(B).

21 ‘‘(2)(A) Notwithstanding section 3302 of title 31,

22 United States Code, and subject to paragraphs (3) and

23 (4), the Secretary of Energy may retain and utilize for

24 purposes of the programs described in subparagraph (B)

25 any amounts contributed by a person, government, or or26 ganization under an agreement under paragraph (1) with-
†

9

S 2769 ES

1 out further appropriation and without fiscal year limita2 tion.

3 ‘‘(B) The programs described in this subparagraph

4 are the following programs within the Global Threat Re5 duction Initiative:

6 ‘‘(i) The International Radiological Threat Re7 duction program.

8 ‘‘(ii) The Emerging Threats and Gap Materials

9 program.

10 ‘‘(iii) The Reduced Enrichment for Research

11 and Test Reactors program.

12 ‘‘(iv) The Russian Research Reactor Fuel Re13 turn program.

14 ‘‘(v) The Global Research Reactor Security pro15 gram.

16 ‘‘(vi) The Kazakhstan Spent Fuel program.

17 ‘‘(3) The Secretary of Energy may not utilize under

18 paragraph (2) any amount contributed under an agree19 ment under paragraph (1) until 30 days after the date

20 on which the Secretary notifies the congressional defense

21 committees of the intent to utilize such amount, including

22 the source of such amount and the proposed purpose for

23 which such amount will be utilized.

24 ‘‘(4) If any amount contributed under paragraph (1)

25 has not been utilized within 5 years of such contribution,
†

10

S 2769 ES

1 the Secretary of Energy shall return such amount to the

2 person, government, or organization that contributed it.

3 ‘‘(5) Not later than 30 days after the receipt of any

4 amount contributed under paragraph (1), the Secretary

5 of Energy shall submit to the congressional defense com6 mittees a notice of the receipt of such amount.

7 ‘‘(6) Not later than October 31 of each year, the Sec8 retary of Energy shall submit to the congressional defense

9 committees a report on the receipt and utilization of

10 amounts under this subsection during the preceding fiscal

11 year. Each report for a fiscal year shall set forth—

12 ‘‘(A) a statement of any amounts received

13 under this subsection, including the source of each

14 such amount; and

15 ‘‘(B) a statement of any amounts utilized under

16 this subsection, including the purposes for which

17 such amounts were utilized.

18 ‘‘(7) The authority of the Secretary of Energy to ac19 cept and utilize amounts under this subsection shall expire

20 on December 31, 2013.’’.

21 SEC. 3113. UTILIZATION OF INTERNATIONAL CONTRIBU22 TIONS TO THE SECOND LINE OF DEFENSE

23 CORE PROGRAM.

24 (a) INTERNATIONAL CONTRIBUTIONS AUTHOR25 IZED.—In order to achieve international participation in
†

11

S 2769 ES

1 the Second Line of Defense Core Program administered

2 by the National Nuclear Security Administration, the Sec3 retary of Energy may, with the concurrence of the Sec4 retary of State, enter into one or more agreements with

5 any person, foreign government, or other international or6 ganization that the Secretary of Energy considers appro7 priate for the contribution of funds by such person, gov8 ernment, or organization for purposes of the program.

9 (b) UTILIZATION OF CONTRIBUTIONS.—Notwith10 standing section 3302 of title 31, United States Code, and

11 subject to subsections (c) and (d), the Secretary of Energy

12 may retain and utilize for purposes of the program any

13 amounts contributed by a person, government, or organi14 zation under an agreement under subsection (a) without

15 further appropriation and without fiscal year limitation.

16 (c) NOTICE AND WAIT REQUIREMENT.—The Sec17 retary of Energy may not utilize under subsection (b) any

18 amount contributed under an agreement under subsection

19 (a) until 30 days after the date on which the Secretary

20 notifies the congressional defense committees of the intent

21 to utilize such amount, including the source of such

22 amount and the proposed purpose for which such amount

23 will be utilized.

24 (d) RETURN OF UNUTILIZED AMOUNTS.—If any

25 amount contributed under subsection (a) has not been uti-
†

12

S 2769 ES

1 lized within 5 years of such contribution, the Secretary

2 of Energy shall return such amount to the person, govern3 ment, or organization that contributed it.

4 (e) NOTIFICATION REQUIREMENT.—Not later than

5 30 days after the receipt of any amount contributed under

6 subsection (a), the Secretary of Energy shall submit to

7 the congressional defense committees a notice of the re8 ceipt of such amount.

9 (f) ANNUAL REPORT.—Not later than October 31 of

10 each year, the Secretary of Energy shall submit to the con11 gressional defense committees a report on the receipt and

12 utilization of amounts under this subsection during the

13 preceding fiscal year. Each report for a fiscal year shall

14 set forth—

15 (1) a statement of any amounts received under

16 this section, including the source of each such

17 amount; and

18 (2) a statement of any amounts utilized under

19 this section, including the purposes for which such

20 amounts were utilized.

21 (g) TERMINATION.—The authority of the Secretary

22 of Energy to accept and utilize amounts under this sub23 section shall expire on December 31, 2013.
†

13

S 2769 ES

1 SEC. 3114. EXTENSION OF FACILITIES AND INFRASTRUC2 TURE RECAPITALIZATION PROGRAM.

3 Section 3114 of the National Defense Authorization

4 Act for Fiscal Year 2004 (Public Law 108–136; 50 U.S.C.

5 2453 note) is amended by striking ‘‘2011’’ both places it

6 appears and inserting ‘‘2013’’.

7 SEC. 3115. TWO-YEAR EXTENSION OF AUTHORITY FOR AP8 POINTMENT OF CERTAIN SCIENTIFIC, ENGI9 NEERING, AND TECHNICAL PERSONNEL.

10 Section 4601(c)(1) of the Atomic Energy Defense Act

11 (50 U.S.C. 2701(c)(1)) is amended by striking ‘‘Sep12 tember 30, 2006’’ and inserting ‘‘September 30, 2008’’.

13 SEC. 3116. EXTENSION OF DEADLINE FOR TRANSFER OF

14 LANDS TO LOS ALAMOS COUNTY, NEW MEX15 ICO, AND OF LANDS IN TRUST FOR THE PUEB16 LO OF SAN ILDEFONSO.

17 Section 632 of the Departments of Commerce, Jus18 tice, and State, the Judiciary, and Related Agencies Ap19 propriations Act, 1998 (Public Law 105–119; 111 Stat.

20 2523; 42 U.S.C. 2391 note) is amended—

21 (1) in subsection (d)(2), by striking ‘‘10 years

22 after the date of enactment of this Act’’ and insert23 ing ‘‘November 26, 2012’’; and

24 (2) in subsection (g)(3)(B), by striking ‘‘the

25 end of the 10-year period beginning on the date of
†

14

S 2769 ES

1 enactment of this Act’’ and inserting ‘‘November 26,

2 2012’’.

3 SEC. 3117. LIMITATIONS ON AVAILABILITY OF FUNDS FOR

4 WASTE TREATMENT AND IMMOBILIZATION

5 PLANT.

6 Of the amount authorized to be appropriated under

7 section 3102 for defense environmental cleanup activities

8 and available for the Waste Treatment and Immobilization

9 Plant—

10 (1) not more than 30 percent of such amount

11 may be obligated or expended until the date on

12 which the Secretary of Energy certifies to the con13 gressional defense committees that the Defense Con14 tract Management Agency has certified the earned

15 value management system used to track and report

16 costs of the Waste Treatment and Immobilization

17 Plant; and

18 (2) not more than 60 percent of such amount

19 may be obligated or expended until the date on

20 which the Secretary of Energy certifies to the con21 gressional defense committees that the final seismic

22 and ground motion criteria have been approved by

23 the Secretary and that the contracting officer of the

24 Waste Treatment and Immobilization Plant Project

25 has formally directed that the final criteria be used
†

15

S 2769 ES

1 for the final design of the Pretreatment Facility and

2 the High-Level Waste Facility of the Waste Treat3 ment and Immobilization Plant.

4 SEC. 3118. LIMITATION ON AVAILABILITY OF FUNDS FOR

5 IMPLEMENTATION OF THE RUSSIAN SUR6 PLUS FISSILE MATERIALS DISPOSITION PRO7 GRAM.

8 (a) LIMITATION.—(1) Except as provided in sub9 section (b), none of the amount authorized to be appro10 priated under section 3101(a)(2) for defense nuclear non11 proliferation activities may be obligated for the implemen12 tation of the Russian Surplus Fissile Materials Disposition

13 Program (in this section referred to as the ‘‘Program’’)

14 until 30 days after the date on which the Secretary of

15 Energy provides to the congressional defense committees

16 written recommendations regarding whether and in what

17 manner the Program should proceed.

18 (2) The recommendations submitted under para19 graph (1) shall include—

20 (A) a description of the disposition method the

21 Government of Russia has agreed to use;

22 (B) a description of the assistance the United

23 States Government plans to provide under the Pro24 gram;
†

16

S 2769 ES

1 (C) an estimate of the total cost and schedule

2 of such assistance;

3 (D) an explanation of how parallelism is to be

4 defined for purposes of the Program and whether

5 such parallelism can be achieved if the United States

6 mixed-oxide (MOX) plutonium disposition program

7 continues on the current planned schedule without

8 further delays.

9 (b) EXCEPTION.—The limitation under subsection

10 (a) does not apply to the obligation of funds to continue

11 research and development associated with the Gas Tur12 bine-Modular Helium Reactor (GT–MHR).

13 SEC. 3119. LIMITATION ON AVAILABILITY OF FUNDS FOR

14 CONSTRUCTION OF MOX FUEL FABRICATION

15 FACILITY.

16 None of the amount authorized to be appropriated

17 under section 3101(a)(2) for defense nuclear nonprolifera18 tion activities may be obligated for construction project

19 99–D–143, the Mixed-Oxide (MOX) Fuel Fabrication Fa20 cility, until 30 days after the date on which the Secretary

21 of Energy provides to the congressional defense

22 committees—

23 (1) an independent cost estimate for the United

24 States Surplus Fissile Materials Disposition Pro25 gram and facilities; and
†

17

S 2769 ES

1 (2) a written certification that the Department

2 of Energy intends to use the MOX Fuel Fabrication

3 Facility for United States plutonium disposition re4 gardless of the future direction of the Russian Sur5 plus Fissile Materials Disposition Program.

6 SEC. 3120. TECHNICAL CORRECTION RELATED TO AUTHOR7 IZATION OF APPROPRIATIONS FOR FISCAL

8 YEAR 2006.

9 Effective as of January 6, 2006, and as if included

10 therein as enacted, section 3101(a) of the National De11 fense Authorization Act for Fiscal Year 2006 (Public Law

12 109–163; 119 Stat. 3537) is amended by striking

13 ‘‘$9,196,456’’ and inserting ‘‘$9,196,456,000’’.

14 SEC. 3121. EDUCATION OF FUTURE NUCLEAR ENGINEERS.

15 (a) FINDINGS.—Congress makes the following find16 ings:

17 (1) The Department of Defense and the United

18 States depend on the specialized expertise of nuclear

19 engineers who support the development and

20 sustainment of technologies including naval reactors,

21 strategic weapons, and nuclear power plants.

22 (2) Experts estimate that over 25 percent of

23 the approximately 58,000 workers in the nuclear

24 power industry in the United States will be eligible

25 to retire within 5 years, representing both a huge
†

18

S 2769 ES

1 loss of institutional memory and a potential national

2 security crisis.

3 (3) This shortfall of workers is exacerbated by

4 reductions to the University Reactor Infrastructure

5 and Education Assistance program, which trains ci6 vilian nuclear scientists and engineers. The defense

7 and civilian nuclear industries are interdependent on

8 a limited number of educational institutions to

9 produce their workforce. A reduction in nuclear sci10 entists and engineers trained in the civilian sector

11 may result in a further loss of qualified personnel

12 for defense-related research and engineering.

13 (4) The Department of Defense’s successful

14 Science, Math and Research for Transformation

15 (SMART) scholarship-for-service program serves as

16 a good model for a targeted scholarship or fellowship

17 program designed to educate future scientists at the

18 postsecondary and postgraduate levels.

19 (b) REPORT ON EDUCATION OF FUTURE NUCLEAR

20 ENGINEERS.—

21 (1) STUDY.—The Secretary of Energy shall

22 study the feasibility and merit of establishing a tar23 geted scholarship or fellowship program to educate

24 future nuclear engineers at the postsecondary and

25 postgraduate levels.
†

19

S 2769 ES

1 (2) REPORT REQUIRED.—The President shall

2 submit to the congressional defense committees, to3 gether with the budget request submitted for fiscal

4 year 2008, a report on the study conducted by the

5 Secretary of Energy under paragraph (1).

6 TITLE XXXII—DEFENSE NU7 CLEAR FACILITIES SAFETY

8 BOARD

9 SEC. 3201. AUTHORIZATION.

10 There are authorized to be appropriated for fiscal

11 year 2007, $22,260,000 for the operation of the Defense

12 Nuclear Facilities Safety Board under chapter 21 of the

13 Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.).

14 TITLE XXXIII—NATIONAL

15 DEFENSE STOCKPILE

16 SEC. 3301. TRANSFER OF GOVERNMENT-FURNISHED URA17 NIUM STORED AT SEQUOYAH FUELS COR18 PORATION, GORE, OKLAHOMA.

19 (a) TRANSPORT AND DISPOSAL.—Not later than

20 March 31, 2007, the Secretary of the Army shall, subject

21 to subsection (c), transport to an authorized disposal facil22 ity for appropriate disposal all of the Federal Government23 furnished uranium in the chemical and physical form in

24 which it is stored at the Sequoyah Fuels Corporation site

25 in Gore, Oklahoma.
†

20

S 2769 ES

1 (b) SOURCE OF FUNDS.—Funds authorized to be ap2 propriated by section 301(1) for the Army for operation

3 and maintenance may be used for the transport and dis4 posal required under subsection (a).

5 (c) LIABILITY.—The Secretary may only transport

6 uranium under subsection (a) after receiving from

7 Sequoyah Fuels Corporation a written agreement satisfac8 tory to the Secretary that provides that—

9 (1) the United States assumes no liability, legal

10 or otherwise, of Sequoyah Fuels Corporation by

11 transporting such uranium; and

12 (2) the Sequoyah Fuels Corporation waives any

13 and all claims it may have against the United States

14 related to the transported uranium.

15 TITLE XXXIV—NAVAL

16 PETROLEUM RESERVES

17 SEC. 3401. COMPLETION OF EQUITY FINALIZATION PROC18 ESS FOR NAVAL PETROLEUM RESERVE NUM19 BERED 1.

20 Section 3412(g) of the National Defense Authoriza21 tion Act for Fiscal Year 1996 (Public Law 104–106; 10

22 U.S.C. 7420 note) is amended—

23 (1) by inserting ‘‘(1)’’ after ‘‘(g)’’; and

24 (2) by adding at the end the following new

25 paragraph:
†

21

S 2769 ES

1 ‘‘(2)(A) In light of the unique role that the inde2 pendent petroleum engineer who is retained pursuant to

3 paragraph (b)(2) performs in the process of finalizing eq4 uity interests, and the importance to the United States

5 taxpayer of timely completion of the equity finalization

6 process, the independent petroleum engineer’s ‘Shallow Oil

7 Zone Provisional Recommendation of Equity Participa8 tion,’ which was presented to the equity finalization teams

9 for the Department of Energy and Chevron U.S.A. Inc.

10 on October 1 and 2, 2002, shall become the final equity

11 recommendation of the independent petroleum engineer,

12 as that term is used in the Protocol on NPR–1 Equity

13 Finalization Implementation Process, July 8, 1996, for

14 the Shallow Oil Zone unless the Department of Energy

15 and Chevron U.S.A. Inc. agree in writing not later than

16 60 days after the date of the enactment of this paragraph

17 that the independent petroleum engineer shall not be liable

18 to either party for any cost or expense incurred or for any

19 loss or damage sustained—

20 ‘‘(i) as a result of the manner in which services

21 are performed by the independent petroleum engi22 neer in accordance with its contract with the De23 partment of Energy to support the equity determina24 tion process;
†

22

S 2769 ES

1 ‘‘(ii) as a result of the failure of the inde2 pendent petroleum engineer in good faith to perform

3 any service or make any determination or computa4 tion, unless caused by its gross negligence; or

5 ‘‘(iii) as a result of the reliance by either party

6 on any computation, determination, estimate or eval7 uation made by the independent petroleum engineer

8 unless caused by the its gross negligence or willful

9 misconduct.

10 ‘‘(B) If Chevron U.S.A. Inc. agrees in writing not

11 later than 60 days after the date of the enactment of this

12 paragraph that the independent petroleum engineer shall

13 not be liable to Chevron U.S.A. Inc. or the Department

14 of Energy for any cost or expense incurred or for any loss

15 or damage described in clauses (i) through (iii) of sub16 paragraph (A), the Department of Energy shall agree to

17 the same not later than such date.’’.

Passed the Senate June 22, 2006.

Attest:

Secretary.
109TH CONGRESS

2D SESSION S. 2769

AN ACT

To authorize appropriations for fiscal year 2007 for

and for other purposes.defense activities of the Department of Energy,