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H.R. 5066, ‘‘DATA PRESERVATION ACT OF 

2014’’; AND H.R. 5176, TO AUTHORIZE THE 

SECRETARY OF THE INTERIOR TO RETIRE COAL PREFERENCE RIGHT LEASE 

APPLICATIONS FOR WHICH THE SECRETARY HAS MADE AN AFFIRMATIVE 

COMMERCIAL QUANTITIES DETERMINATION, AND FOR OTHER PURPOSES 

LEGISLATIVE HEARING 

BEFORE THE

SUBCOMMITTEE ON ENERGY AND 

MINERAL RESOURCES 

OF THE

COMMITTEE ON NATURAL RESOURCES 

U.S. HOUSE OF REPRESENTATIVES 

ONE HUNDRED THIRTEENTH CONGRESS 

SECOND SESSION 

Wednesday, September 17, 2014 

Serial No. 113–90 

Printed for the use of the Committee on Natural Resources 

( 

Available via the World Wide Web: http://www.fdsys.gov 

or 

Committee address: http://naturalresources.house.gov 

(II) 

COMMITTEE ON NATURAL RESOURCES 

DOC HASTINGS, WA, Chairman 

PETER A. DEFAZIO, OR, Ranking Democratic Member 

Don Young, AK 

Louie Gohmert, TX 

Rob Bishop, UT 

Doug Lamborn, CO 

Robert J. Wittman, VA 

Paul C. Broun, GA 

John Fleming, LA 

Tom McClintock, CA 

Glenn Thompson, PA 

Cynthia M. Lummis, WY 

Dan Benishek, MI 

Jeff Duncan, SC 

Scott R. Tipton, CO 

Paul A. Gosar, AZ 

Rau ́l R. Labrador, ID 

Steve Southerland, II, FL 

Bill Flores, TX 

Jon Runyan, NJ 

Markwayne Mullin, OK 

Steve Daines, MT 

Kevin Cramer, ND 

Doug LaMalfa, CA 

Jason T. Smith, MO 

Vance M. McAllister, LA 

Bradley Byrne, AL 

Eni F. H. Faleomavaega, AS 

Frank Pallone, Jr., NJ 

Grace F. Napolitano, CA 

Rush Holt, NJ 

Rau ́l M. Grijalva, AZ 

Madeleine Z. Bordallo, GU 

Jim Costa, CA 

Gregorio Kilili Camacho Sablan, CNMI 

Niki Tsongas, MA 

Pedro R. Pierluisi, PR 

Colleen W. Hanabusa, HI 

Tony Ca ́ rdenas, CA 

Jared Huffman, CA 

Raul Ruiz, CA 

Carol Shea-Porter, NH 

Alan S. Lowenthal, CA 

Joe Garcia, FL 

Matt Cartwright, PA 

Katherine M. Clark, MA 

Vacancy 

Todd Young, Chief of Staff 

Lisa Pittman, Chief Legislative Counsel 

Penny Dodge, Democratic Staff Director 

David Watkins, Democratic Chief Counsel 

SUBCOMMITTEE ON ENERGY AND MINERAL RESOURCES 

DOUG LAMBORN, CO, Chairman 

RUSH HOLT, NJ, Ranking Democratic Member 

Louie Gohmert, TX 

Rob Bishop, UT 

Robert J. Wittman, VA 

Paul C. Broun, GA 

John Fleming, LA 

Glenn Thompson, PA 

Cynthia M. Lummis, WY 

Dan Benishek, MI 

Jeff Duncan, SC 

Paul A. Gosar, AZ 

Bill Flores, TX 

Markwayne Mullin, OK 

Steve Daines, MT 

Kevin Cramer, ND 

Vacancy 

Doc Hastings, WA, ex officio 

Matt Cartwright, PA 

Jim Costa, CA 

Niki Tsongas, MA 

Jared Huffman, CA 

Alan S. Lowenthal, CA 

Tony Ca ́ rdenas, CA 

Rau ́l M. Grijalva, AZ 

Colleen W. Hanabusa, HI 

Joe Garcia, FL 

Katherine M. Clark, MA 

Vacancy 

Vacancy 

Vacancy 

Peter A. DeFazio, OR, ex officio 

(III) 

CONTENTS 

Page 

Hearing held on Wednesday, September 17, 2014 ................................................ 1 

Statement of Members: 

Benishek, Hon. Dan, a Representative in Congress from the State of 

Michigan ........................................................................................................ 3 

Holt, Hon. Rush, a Representative in Congress from the State of New 

Jersey ............................................................................................................. 8 

Prepared statement of ............................................................................... 9 

Lamborn, Hon. Doug, a Representative in Congress from the State of 

Colorado ......................................................................................................... 1 

Prepared statement of ............................................................................... 2 

Luja ́n, Hon. Ben Ray, a Representative in Congress from the State of 

New Mexico, Prepared statement of ............................................................ 10 

Statement of Witnesses: 

Arthur, Jonathan D., Ph.D., P.G., President, Association of American 

State Geologists; State Geologist of Florida ............................................... 12 

Prepared statement of ............................................................................... 13 

Gooding, Patrick J., Research Geologist/Manager, Kentucky Geological 

Survey, University of Kentucky, Well Sample and Core Library ............. 18 

Prepared statement of ............................................................................... 19 

Nedd, Hon. Michael, Assistant Director, Energy, Minerals, & Realty 

Management, Bureau of Land Management, U.S. Department of the 

Interior ........................................................................................................... 30 

Prepared statement of ............................................................................... 32 

Pagano, Theodore A., P.G., P.E., General Manager, Michigan Potash 

Company, LLC .............................................................................................. 22 

Prepared statement of ............................................................................... 23 

Phelps, Walter, Council Delegate, Navajo Nation ......................................... 28 

Prepared statement of ............................................................................... 29 

Additional Materials Submitted for the Record: 

Gallagher, Kevin, Associate Director of Core Science Systems, U.S. 

Geological Survey, U.S. Department of the Interior, Prepared statement 

on H.R. 5066 .................................................................................................. 37 

Michigan Geological Survey, Michigan Geological Repository for Research 

and Education, Testimony documentation in support of H.R. 5066 ......... 39 

Yellich, John A., Certified Professional Geologist, Director, Michigan 

Geological Survey, Michigan Geological Repository for Research and 

Education, Prepared statement on H.R. 5066 ............................................ 4 

(1) 

LEGISLATIVE HEARING ON H.R. 5066, ‘‘DATA 

PRESERVATION ACT OF 2014’’; AND 

H.R. 5176, TO AUTHORIZE THE SECRETARY 

OF THE INTERIOR TO RETIRE COAL PREFERENCE RIGHT LEASE APPLICATIONS FOR 

WHICH THE SECRETARY HAS MADE AN AFFIRMATIVE COMMERCIAL QUANTITIES DETERMINATION, AND FOR OTHER PURPOSES 

Wednesday, September 17, 2014 

U.S. House of Representatives 

Subcommittee on Energy and Mineral Resources 

Committee on Natural Resources 

Washington, DC 

The subcommittee met, pursuant to call, at 2:08 p.m., in room 

1334, Longworth House Office Building, Hon. Doug Lamborn 

[Chairman of the Subcommittee] presiding. 

Present: Representatives Lamborn, Lummis, Benishek, Holt and 

Garcia. 

STATEMENT OF THE HON. DOUG LAMBORN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF COLORADO 

Mr. LAMBORN. The committee will come to order. 

The Chairman notes the presence of a quorum, which, under 

Committee Rule 3(e), is two members. 

The Subcommittee on Energy and Mineral Resources is meeting 

today to hear testimony on a legislative hearing on two bills: 

H.R. 5066, introduced by our colleague, Congressman Benishek, 

the Data Preservation Act of 2014; and H.R. 5176, introduced by 

our colleagues, Congressman Ben Ray Luja ́n and Cynthia Lummis, 

To authorize the Secretary of the Interior to retire coal preference 

right lease applications for which the Secretary has made an affirmative commercial quantities determination. 

Under Committee Rule 4(f), opening statements are limited to 

the Chairman and Ranking Member of the subcommittee. However, 

I ask unanimous consent to include any other Members’ opening 

statements in the hearing record if submitted to the clerk by close 

of business today. 

Hearing no objection, so ordered. 

I now recognize myself for 5 minutes. 

I would like to welcome everyone here today and those listening 

via our webcast to the Subcommittee on Energy and Mineral 

Resources legislative hearing on H.R. 5066, the Data Preservation 

Act of 2014, introduced by the gentleman from Michigan, Dr. 

Benishek; and H.R. 5176, that authorizes the Secretary of the 

Interior to retire coal preference right lease applications for which 

2 

the Secretary has made an affirmative commercial quantities determination, introduced by our former committee colleague from 

New Mexico, Mr. Luja ́n, and cosponsored by the Representative 

from Wyoming, Mrs. Lummis. 

Back in the 1990s, building on the success of the National 

Cooperative Geologic Mapping Program, several professional 

geologic organizations began to push for a national geological and 

geophysical data preservation program to facilitate the acquisition, 

archiving, and storage of mineral and core data. 

Each year tens of millions of private and public dollars are spent 

in the United States acquiring geologic and geophysical data by 

various industries and state and Federal agencies. 

If saved, archived, and stored, it can be retrieved, reviewed, reanalyzed, and reinterpreted and can help identify and solve environmental problems, locate public safety hazards, saving lives, or 

direct exploration, allowing geologists to find possible new discoveries of energy and mineral resources. 

As stated in testimony, ‘‘In 2008, reinspection of a small manila 

pouch full of rock chips from a dry oil test well in southern Texas 

led to the discovery of the Eagle Ford Shale play: a $25 billion economic impact in a 20-county area, supporting more than 47,000 

jobs.’’ What a discovery that was. 

H.R. 5176 solves a long-standing Department of the Interior obligation to the Navajo Nation to transfer lands selected by the 

Navajo Nation in trust for the Navajo by allowing the Interior 

Secretary to address prior mineral rights on the selected parcels. 

The Navajo Nation was granted the right to select certain 

Federal lands to be placed in trust for the Navajo as part of the 

1974 Navajo-Hopi Settlement Act that settled a long-running 

boundary dispute between the Navajo and Hopi. 

The Navajo relinquished land and relocated its citizens as part 

of the agreement. Forty years is a long time for the Navajo Nation 

to wait for the transfer of these lands. 

[The prepared statement of Mr. Lamborn follows:] 

PREPARED STATEMENT OF THE HON. DOUG LAMBORN, CHAIRMAN, SUBCOMMITTEE ON

ENERGY AND MINERAL RESOURCES

I would like to welcome everyone here in the room today and listening via our 

webcast to the Subcommittee on Energy and Mineral Resources legislative hearing 

on H.R. 5066, the ‘‘Data Preservation Act of 2014’’ introduced by Dr. Benishek, and 

H.R. 5176, that authorizes the Secretary of the Interior to retire coal preference 

right lease applications for which the Secretary has made an affirmative commercial 

quantities determination, and for other purposes introduced by Mr. Luja ́n and cosponsored by Mrs. Lummis. 

Back in the 1990s, building on the success of the National Cooperative Geologic 

Mapping Program, several professional geologic organizations began to push for a 

National Geological and Geophysical Data Preservation Program to facilitate the acquisition, archiving and storage of data. 

As it is each year, millions of dollars are spent in the U.S. acquiring geologic and 

geophysical data by various industries and state and Federal agencies. 

If saved, archived and stored it can be reviewed, reanalyzed and reinterpreted and 

can help identify and solve environmental problems, locate public safety hazards 

saving lives, or direct exploration geologists to possible new discoveries of energy 

and mineral resources. 

As stated in Dr. Arthur’s testimony, ‘‘In 2008, reinspection of a small manila 

pouch full of rock chips from a dry oil test well in southern Texas led to the discovery of the Eagle Ford Shale play: a $25 billion economic impact in a 20-county 

area supporting more than 47,000 jobs.’’ 

Not an insignificant discovery! 

3 

H.R. 5176, solves a long-standing Department of the Interior obligation to the 

Navajo Nation to transfer lands selected by the Navajo Nation in Trust for the 

Navajo by allowing the Interior Secretary to address prior mineral rights on the selected parcels. 

The Navajo Nation was granted the right to select certain Federal lands to be 

placed in trust for the Navajo as part of the 1974 Navajo-Hopi Settlement Act that 

settled a long-running boundary dispute between the Navajo and Hopi. 

The Navajo relinquished land and relocated its citizens as part of the agreement. 

Forty years is a long time for the Navajo Nation to wait for the transfer of these 

lands. 

Now I would like to yield 2 minutes of my time to Dr. Benishek to introduce his 

legislation and his witness from Michigan Potash. 

I look forward to hearing from our witnesses today. 

Mr. LAMBORN. I am going to now yield 2 minutes of my time to 

Dr. Benishek to introduce his legislation and a witness who is here 

today from Michigan Potash. 

STATEMENT OF THE HON. DAN BENISHEK, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN 

Dr. BENISHEK. Thank you, Mr. Chairman. I really appreciate the 

time to introduce this bill. And thank you for holding the hearing. 

This bill, the Data Preservation Act of 2014, is to reauthorize the 

National Geological and Geophysical Data Preservation Program 

Act of 2005 through 2019. As the National Research Council reported in 1995, data are the lifeblood of science and the key to 

understanding this and other worlds. As such, they are a critical 

natural resource and must be protected, preserved, and made accessible to all people for all time. 

In my state, Michigan Geological Repository for Research and 

Education has been collecting and storing geological samples and 

data for over 30 years. The repository is the resource center for the 

Michigan Geological Survey and for industry. 

Dr. John Yellich, a Michigan State geologist, reports that the repository houses more than 500,000 feet of core, additional samples, 

and geophysical data for more than 25,000 wells. 

Tens of thousands of well reports, logs and sample analyses have 

been entered into databases. Over the past 6 years, the repository 

has submitted large data sets and received grants under the 

National Geological and Geophysical Data Preservation Program. 

The availability of this data has benefited the people of Michigan 

significantly. In partnership with Core Energy, researchers at the 

Survey relying on archived data in the repository began to use liquefied carbon dioxide for enhanced oil recovery in old, inactive oil 

fields. One field alone has already produced an additional 

1.6 million barrels of oil. 

Core Energy, which is based in Traverse City, Michigan, is the 

only company east of the Mississippi using this innovative technique. Another company, Michigan Potash, reexamined a significant donation of core that led to the discovery of a deposit valued 

at $65 billion. 

I would like to introduce and welcome one of the principals of 

that company, Ted Pagano, who will be testifying here today. 

Finally, I ask unanimous consent to enter testimony and other 

documents for the record from Dr. John Yellich. 

4 

Thank you. I yield back my time. 

[The documents of Dr. John Yellich follow:] 

PREPARED STATEMENT OF JOHN A. YELLICH, CERTIFIED PROFESSIONAL GEOLOGIST, 

DIRECTOR, MICHIGAN GEOLOGICAL SURVEY, MICHIGAN GEOLOGICAL REPOSITORY

FOR RESEARCH AND EDUCATION, A MICHIGAN GEOLOGICAL SURVEY—RESOURCE

CENTER ON H.R. 5066 

Data preservation has been the focus of the Michigan Geological Repository for 

Research and Education (MGRRE) for more than 30 years. MGRRE has received financial support and has submitted very large datasets to the National Geological 

and Geophysical Data Preservation Program (NGGDPP) during the past 6 years. As 

the National Research Council (NRC) reported in 1995: ‘‘Data are the lifeblood of 

science and the key to understanding this and other worlds. As such, they are a critical natural resource and must be protected, preserved, and made accessible to all 

people for all time.’’ In Michigan, we have seen how these data are also essential 

in finding solutions to environmental problems and to supporting economic growth 

through sustainable natural resource management. Because no one can predict 

which environmental and resource issues will arise, for which the solutions will depend on these data, we must make every effort to protect and preserve them. 

In Michigan, geological samples and data are preserved and used in education 

and research by MGRRE, a resource center to the Michigan Geological Survey 

(MGS) at Western Michigan University (WMU). Through MGRRE, industry members and our researchers have furthered development of domestic energy, greenhouse gas sequestration, discovery of non-metallic natural resources, and worked to 

define water resources. MGRRE has data from oil, gas, environmental and 

geotechnical research in over 500,000 feet of core (>95 miles), samples and geophysical data from over 25,000 wells, tens of thousands of well reports, logs and 

sample analysis which is all in databases and scanned digitally and housed in an 

area having >27,000 sq. ft., over half an acre. 

Funding by the NGGDPP for MGRRE and many other data repositories has created a data source for the country and preserved data that previously were at risk 

of damage and/or destruction. We share these examples from our work at MGRRE, 

much of which has been sustained by support from the NGGDPP. 

Using cores and data donated to or rescued from disposal by MGRRE, largely 

from the oil and gas industry, our researchers have conducted research about hydrocarbon reservoirs and presented those results at workshops for more than 20 years 

(attached picture of Manuals). Attendees represented industry, government and 

higher education. By conducting our research in partnership with independent and 

national oil and gas companies, our faculty and students have provided applied solutions. And our students have gained hands-on experience in becoming geoscience 

professionals receiving high paid challenging professional positions. 

The following examples represent some of MGRRE’s major environmental, 

industry and economic milestones over the last 20 years. 

A. In 1995 WMU and Michigan Technological University (MTU) entered into a 

partnership to study preserved oil field core samples and data at MGRRE. 

a. With grant support from the Department of Energy (DOE), MTU-WMU 

demonstrated effective use of horizontal drilling technology to produce additional oil reserves in Michigan, laying a significant foundation for conventional horizontal drilling used today. 

B. Since 1997, MGRRE has been the Michigan Center for the Petroleum 

Technology Transfer (PTTC), initially funded by the DOE, a program where 

industry and academia share in oil industry geological, geophysical and current operational technology. 

a. MGRRE has presented one to two workshops each year, utilizing archived 

core and data. 

b. This program is now entirely self-funded by MGRRE through workshop 

fees and industry sponsorship. 

c. Many of the environmental and industry accomplishments in the last 20 

years were the result of data, well-field experience, and research shared 

at these open industry events. 

5 

C. In 2005, the DOE established a national environmental program to evaluate 

the potential of capturing and safely storing Carbon Dioxide (CO2), in subsurface geologic reservoirs. MGRRE, and other states, submitted proposals 

that would utilize preserved core and geophysical data to explore this concept. 

a. MGRRE was funded to evaluate Michigan’s reservoirs through the 

Midwest Regional Carbon Sequestration Partnership (MRCSP) and conducted a successful test of CO2 sequestration in a collaborative partnership of DOE, MGRRE and industry partner, Core Energy, LLC. 

b. This basic program and subsequent successful testing and evaluations 

have continued for more than 9 years and demonstrated the potential underground storage capacity of tens of billions of tons of CO2. 

D. The CO2 sequestration program further evolved in Michigan when CO2 injections into old oil fields resulted in the added benefit of more energy production through the recovery of previously stranded oil. Typically these fields 

would yield about 25 percent of their reserves initially through primary recovery. The remaining oil was ‘‘stranded’’ in isolated small pore spaces. 

a. Injecting the captured CO2 in these oil-bearing formations produced an 

additional 20 percent to 25 percent of the oil, an economic benefit to 

Michigan, new wealth. 

b. This technology has recovered more than 1.6M barrels of oil, which had 

an estimated revenue of $112,000,000 at $70/BBL price, netting Michigan 

an estimated tax revenue of $7.3 million. 

E. Legislation in Michigan was passed in April 2014 to entice the oil industry 

to invest in this capital-intensive process of CO2 capture and injection by providing them a tax benefit for the additional cost. 

a. Millions of barrels of additional oil will now be recovered through this 

technology, resulting in tens of millions of dollars of both unrealized 

income for Michigan residents and millions of dollars of otherwise unrealized tax revenue to the state of Michigan. 

F. In 2003, MGRRE researchers, MTU and members of the oil and gas industry 

presented their research and experience at a PTTC workshop focusing on the 

potential of undiscovered hydrocarbon reserves, particularly those in the 

Trenton Black River Formations. 

a. Subsequently, in 2006, USGS began a Michigan basin assessment of unrecovered oil resources and WMU geoscientists compiled data for Michigan 

using archived core samples and geophysical data. 

b. This compilation and research was presented at a subsequent MGRRE/ 

PTTC workshop, and this resulted in industry coming to MGRRE to study 

and sample cores for developing exploration targets. 

c. New Trenton/ Black River Formation oil-bearing zones were discovered in 

2006. 

d. The Trenton/ Black River continues to be successfully explored and developed, resulting in additional millions of dollars in economic benefits for 

our citizens and new tax revenues for the state today. 

i. An estimated 5 million Barrels of previously undiscovered oil from five 

newly discovered fields has been produced to date, an additional 

revenue and tax benefit. 

G. In 2009 and 2010, MGRRE hosted conferences about potential unconventional 

oil and gas resources in the Collingwood, Utica and A-1 Carbonate 

formations. 

a. Industry professionals visited MGRRE, studied the samples and data and 

developed a geological and exploration model. 

b. In 2010, $178 million was paid by the oil industry to lease thousands of 

acres of state land, the largest single lease sale to date in Michigan, providing a major source of revenue to the Natural Resources Trust Fund of 

Michigan. 

c. In 2010 and 2011, industry began exploration on these leases, which has 

already resulted in several discoveries of commercial quantities of oil and 

gas and provides the potential for additional millions in economic benefits 

and tax revenue to Michigan. 

6 

H. In 2013 the industrial mineral industry recognized that MGRRE had the only 

collection of geological cores and geophysical data for an extensive deposit of 

potash: a critical ingredient in fertilizer, essential to U.S. agriculture. 

a. Industry professionals and MGRRE researchers conducted tests and completed an evaluation of this material and determined that this represented a significant potash resource to Michigan and to the United 

States. 

b. The area of study has an estimated in-place value of more than 

$65 billion, with additional geologic data indicating an even larger resource area. 

I. Michigan has a coastline contact with four of the five Great Lakes and is perceived as having an abundance of and understanding of water resources, including groundwater. Scientific data collection and mapping of subsurface 

geologic materials and water resources has been limited for more than 30 

years. The Michigan Geological Survey, assigned to WMU in October 2011, 

is now mandated to function through WMU will utilize the MGRRE samples 

and data collections with a scientific geosciences emphasis to develop a greater understanding of the groundwater resources of Michigan. 

a. The MGRRE facility has water well drill samples from over 2000 public 

water supply wells and combined with more than 20,000 oil well sample 

sets. These samples will be used in conjunction with other geologic and 

geophysical information to support the program for effective and rational 

management of our water resources. 

J. Since 2005, MGRRE and WMU has been a major educational foundation for 

numerous students who have utilized the resources of MGRRE and faculty to 

develop the next generation of geosciences professionals. In the last 10 years, 

there have been over 45 Masters graduates from WMU that have benefited 

from the MGRRE and faculty experiences, some whom have gone on for 

Ph.D.’s. These graduates are now experienced contributing professionals in 

the environmental, industrial and academic world. 

Through NGGDPP funding, MGRRE has continued to rescue cores that were literally destined for landfills, recovered cores that had been damaged by poor storage 

conditions, brought cores and samples back to Michigan from out-of-state, scanned 

thousands paper records (mudlogs) so they are now available in digital form, inventoried thousands of well records, hand-entered porosity and permeability numbers 

from old records into individual spreadsheets, uploaded all this data to the National 

Data Repository, thereby increasing the amount of data available and making these 

data publicly accessible. 

Without NGGDPP funding, this recent work would still be in progress. Funding 

for data preservation is very limited and so critically needed. We urge your consideration to continue this funding so that more data can be saved and preserved for 

today and tomorrow. 

Attached are the examples of the workshop manuals, press announcements and 

supporting documentation of data preservation and the benefits. 

7 

Damaged core in boxes is repackaged and catalogued at MGRRE using 

NGGDPP funds. 

MGRRE—Petroleum Technology Transfer Council (PTTC) Manuals 

prepared and used in conferences conducted since 1997 to 2014. 

Mr. LAMBORN. OK. Thank you. 

And now we are about to hear from the Ranking Member for his 

5-minute opening statement. 

But, first, I want to thank Representative Rush Holt of 

New Jersey. He will be retiring at the end of this Congress. I have 

enjoyed working with him these last 4 years. Many times we have 


89836.006.eps 89836.007.eps 89836.008.eps 89836.009.eps
8 

agreed on issues. Many times we have not agreed on issues. But 

that is how our system works. I have always enjoyed his company 

and the input that he provides. 

You will be missed, Representative Holt. 

STATEMENT OF THE HON. RUSH HOLT, A REPRESENTATIVE IN 

CONGRESS FROM THE STATE OF NEW JERSEY 

Mr. HOLT. Well, thank you, Mr. Chairman. That is very kind of 

you. I am still on the job and am delighted to be here once again 

in your committee, or your subcommittee. 

Mr. LAMBORN. And I just say that because this might be the last 

hearing of our subcommittee this year. 

Mr. HOLT. This year. 

Mr. LAMBORN. Yes. 

Mr. HOLT. I see. OK. 

Mr. LAMBORN. We will be coming back after November for a lame 

duck session, but if it is not the case, if we have another hearing, 

I will say my farewell then, also. 

Mr. HOLT. As many times as you like, then. Thank you. 

And thanks to the witnesses for being here today. 

And I appreciate the Chair holding this hearing. 

The first bill, H.R. 5066, would reauthorize the National 

Geological and Geophysical Data Preservation Program, and the 

bill is long overdue. This country’s collection of geologic and geophysical data is invaluable. It represents millions upon millions of 

wells and cores and fossils and maps and other things that have 

been collected over more than a century. 

They are not static museum pieces. These collections are used, 

will be used, should be used, day by day by government scientists 

and the private sector and teachers and students and others. 

And not only are most of these data irreplaceable, but much of 

it needs special handling and storage, so digitizing it is not the answer. It is hard to imagine what future researchers would say if 

we allowed this to disintegrate or disappear. 

Recently, the Geological Survey used a tool on some old mine 

samples, applying modern analytical techniques to see if there are 

potentially valuable minerals, such as rare earth elements, left behind in the mine waste. 

The results in this case are promising, might provide a new 

strategy for decreasing dependence on China and other nations for 

these minerals. But that is only one example of the kinds of things 

that can be done with these data, with these samples. 

The authorization for the program expired 4 years ago and while 

the U.S. Geological Survey has a general authority, it really needs 

a special, specific reauthorization with a clear statement of support 

as well. 

So I think this will help. I hope it helps with the funding levels 

because they are insufficient as it stands. The authorized 

$30 million a year has not come close in the appropriations, and 

it is something on the order of $1 million, I guess, in recent years, 

or it may be as much as $2 million now—$2 million spread over 

the state geological surveys is not nearly enough to really safeguard the collections. 

9 

So I am glad to see it is moving forward. Thank you, Mr. 

Chairman, for doing that. 

The second bill, H.R. 5176, will finally retire some antiquated 

coal lease applications that date back decades. These preference 

right lease applications are a vestige of a bygone method of coal 

leasing, and it is time that we do away with them. 

Since the mid-1970s, the Department of the Interior has gradually been working through these applications. The ones that were 

grandfathered were down to fewer than 30,000 acres in 

New Mexico. This bill would help the Department take care of 

probably all or almost all of those remaining acres and put this system to rest, as it deserves. 

The most concerning thing about the coal preference right lease 

applications in New Mexico is that they are in a terrible area for 

coal mining. Right next door to the Chaco Cultural National 

Historic Park, they lie within a Wilderness Study Area and the 

Fossil Forest Research Natural Area. Some are on the same land 

selected by the Navajo Nation as part of the Land Settlement Act. 

It is my understanding that all the parties involved: the coal 

company, the Navajo Nation, the Administration, are in support of 

retiring these lease applications in exchange for coal-bidding 

credits to be used elsewhere. And this legislation will move that 

along. 

So I look forward to hearing about these two bills and yield back 

the remaining seconds of my time. 

Thank you, Mr. Chairman. 

[The prepared statement of Mr. Holt follows:] 

PREPARED STATEMENT OF THE HON. RUSH HOLT, RANKING MEMBER, SUBCOMMITTEE

ON ENERGY AND MINERAL RESOURCES

Thank you Mr. Chairman for holding this hearing to discuss these two bills. 

The first bill, H.R. 5066, which would reauthorize the National Geological and 

Geophysical Data Preservation Program, is long overdue. 

This country’s collection of geologic and geophysical data is invaluable, representing literally millions upon millions of wells, cores, fossils, maps, and more 

that have been collected at incredible expense for roughly a century and a half. 

These aren’t simply museum pieces. These collections are used every day by the 

private sector, government scientists, teachers, and more. Not only is most of this 

data irreplaceable, or only replaceable at tremendous expense, but much of it needs 

special handling and storage. It can’t just be digitized and kept in a database. 

If you have a core sample, and want to come back later to take a sample for some 

new analysis, you need to have that core sample stored safely in a proper facility. 

And it’s far cheaper to construct and maintain the storage facility than it is to go 

out and drill new cores. 

We can barely imagine how future researchers will use our existing library of geologic data. Recently, the U.S. Geological Survey used a new tool on some old mine 

samples, applying modern analytical techniques to see if there are potentially valuable minerals, such as rare earth elements, that had been left behind in mine waste. 

The results have been extremely promising, and might provide us with a new 

strategy for decreasing our dependence on China for some of these minerals. But 

that work is only possible because those samples were available for testing. 

The authorization for this valuable program expired in 2010, and while the U.S. 

Geological Survey has the general authority it needs to keep the program operating, 

congressional reauthorization would be a clear statement of support, and hopefully 

help boost funding levels. Although authorized at $30 million a year, the program 

barely received $1 million for many years, although recently Congress has boosted 

that to $2 million. 

But that’s $2 million spread out over all the state geological surveys, which is 

helpful, but not nearly enough to truly safeguard these critical collections. I’m glad 

10 

to see us move forward with a reauthorization of this program, and hope that we 

can keep increasing the funding available for it. 

The second bill, H.R. 5176, is a bill to finally retire some antiquated coal lease 

applications that date back decades. These preference right lease applications are 

a vestige of a bygone method of coal leasing that Congress did away with in the 

mid-70s. 

Since that time, the Department of the Interior has been gradually working 

through those applications that were grandfathered in, and we are down to less 

than 30,000 acres in New Mexico. This bill will help the Department take care of 

most, if not all, of these remaining acres, and finally put this system to rest once 

and for all. 

The most concerning thing about the coal preference right lease applications in 

New Mexico is that they’re in a terrible area for coal mining. They’re right next door 

to an important cultural site, the Chaco Culture National Historic Park, lie within 

a Wilderness Study Area and the Fossil Forest Research Natural Area, and are also 

on some of the same lands selected by the Navajo Nation as part of the NavajoHopi Land Settlement Act. 

It is my understanding that all the parties involved—the coal company, the 

Navajo Nation, and the Administration—are in support of retiring these lease applications in exchange for coal bidding credits to be used elsewhere, and that this legislation is necessary to make that happen. 

I look forward to hearing more about these bills, and I thank the witnesses for 

being here today. 

I yield back the balance of my time. 

Mr. LAMBORN. All right. 

Mr. HOLT. Oh. Mr. Chairman—— 

Mr. LAMBORN. Yes. 

Mr. HOLT. May I ask unanimous consent to include in the record 

a statement of Representative Ben Ray Luja ́n on the subject of 

H.R. 5176? 

Mr. LAMBORN. If there is no objection, so ordered. 

Mr. HOLT. Thank you. 

[The prepared statement of Representative Ben Ray Luja ́n on 

H.R. 5176 follows:] 

PREPARED STATEMENT OF THE HON. BEN RAY LUJA ́ N, A REPRESENTATIVE IN

CONGRESS FROM THE STATE OF NEW MEXICO

Mr. Chairman, I appreciate the subcommittee’s willingness to hold this important 

legislative hearing on H.R. 5176, a bill I have sponsored with Representative 

Cynthia Lummis to authorize the Secretary of the Interior to retire coal preference 

right lease applications for which the Secretary has made an affirmative commercial 

quantities determination, and for other purposes. I want to welcome the witnesses 

Walter Phelps, Chairman of the Navajo-Hopi Land Commission, and Mike Nedd, 

Assistant Director from the BLM Minerals & Realty Management, who are appearing before the subcommittee today on this bill. 

While it may not be evident from the bill’s title, the authorization provided to the 

Secretary by this legislation will not only resolve certain preference right lease applications, but will also help resolve a tribal trust obligation to the Navajo Nation 

that has been unresolved for four decades. In 1974, when the Congress enacted the 

Navajo-Hopi Settlement Act, a process was established for the final settlement of 

the reservation boundaries between the Navajo and Hopi tribes. This led to the resettlement of Navajo tribal members and the loss of acreage from the Navajo 

Reservation in order to make the Hopi Reservation whole. In return, the Navajo 

were permitted to select a comparable amount of acreage on Federal lands managed 

by the BLM, to be taken into trust for the Navajo Reservation. In the 1974 Act, 

Congress committed to providing the Navajo these lands, unencumbered by mineral 

rights. 

In the early 1980s, the Navajo Nation selected its parcels of Federal land. The 

Secretary of the Interior has since taken most of those parcels into trust for the 

Navajo Nation. Unfortunately, a number of the parcels selected by the Navajo were 

encumbered by prior mineral rights held by private entities. These parcels are unVerDate Mar 15 2010 13:45 Jul 13, 2015 Jkt 000000 PO 00000 Frm 00014 Fmt 6633 Sfmt 6621 J:\01 ENERGY & MIN\01SE17 2ND SESS. PRINTING\89836.TXT DARLEN
11 

able to be taken into trust for the Navajo until the private mineral rights are removed, and the status of these parcels remains unresolved after decades. 

Several of these parcels are also within 2 miles of the Chaco Canyon National 

Historical Park. It is the BLM’s goal, shared by me and many of my constituents, 

to protect areas closely surrounding the Park that contain important historical and 

archeological assets. 

There have been numerous attempts to resolve this situation administratively, 

and I applaud the efforts of all the parties involved for working in good faith to find 

a solution. A key element to resolving this issue is the exchange of existing preference right lease applications for competitive coal leasing bidding rights that can 

be used to meet future obligations under the Federal coal leasing program. Unfortunately, the Interior Department’s Solicitor has determined that Interior lacks the 

authority to pay the resultant state share of royalties or bonus bids once the new 

bidding rights are exercised. This would significantly disadvantage states in the application of any bidding credits. 

Our bill provides the Secretary of the Interior with important authorities that will 

ensure that all affected parties—private entities, the Navajo Nation, and the 

states—will be treated equitably going forward. Further, the Interior Department 

and private entities holding the mineral rights have already stipulated that there 

are 267 million tons of commercially recoverable coal on these parcels. Absent 

Congress providing statutory authority to the Secretary to resolve issues like this, 

a far more expensive takings claim may occur. Accordingly, our actions here in 

Congress will save taxpayers significant dollars. 

Again, I appreciate the subcommittee’s attention to this important issue, and I am 

committed to working with the subcommittee and committee leadership to move this 

bill forward in an expeditious manner. 

Mr. LAMBORN. We will now hear from our witnesses. 

I want to welcome Jonathan D. Arthur, Ph.D. and P.G., 

President of the Association of American State Geologists and 

Director and State Geologist of Florida; Patrick J. Gooding of the 

Kentucky Geological Survey and the University of Kentucky, Well 

Sample and Core Library; Theodore A. Pagano, P.G. and P.E., 

General Manager of the Michigan Potash Company, LLC; and 

Walter Phelps, Council Delegate of the Navajo Nation; and, finally, 

Michael Nedd, Assistant Director of Energy, Minerals and Realty 

Management of the Bureau of Land Management with the U.S. 

Department of the Interior, who is accompanied by Kevin 

Gallagher, Associate Director of Core Science Systems of the U.S. 

Geological Survey, also with the U.S. Department of the Interior. 

Like all of our witnesses, your written testimony will appear in 

full in the hearing record, so I ask that you keep your oral statements to 5 minutes. 

Our microphones are not automatic. So you need to turn them 

on when you are ready to begin. 

I also want to explain how our timing lights work. When you 

begin to speak, our clerk will start the timer and a green light will 

appear. After 4 minutes, a yellow light will appear and, at that 

time, you should begin to conclude your statement. At 5 minutes, 

the red light will come on and I ask that you conclude at that time. 

I will also be giving the gavel here very soon to Dr. Benishek to 

finish this hearing. This is a very busy day with committees. I have 

two others going on at the same time. 

So, Dr. Benishek, if you can come here, we will do that. 

But, Mr. Arthur, you may begin. Thank you for being here. 

12 

STATEMENT OF JONATHAN D. ARTHUR, PH.D., P.G., PRESIDENT, ASSOCIATION OF AMERICAN STATE GEOLOGISTS; 

STATE GEOLOGIST OF FLORIDA 

Mr. ARTHUR. Thank you, Chairman Lamborn, Ranking Member 

Holt, members of the subcommittee and bill sponsor, Congressman 

Benishek. I appreciate this opportunity to provide testimony in 

support of H.R. 5066, Reauthorization of the National Geological 

and Geophysical Data Preservation Program Act. I serve as the 

State Geologist of Florida and as president of the Association of 

American State Geologists, AASG. 

Today I am testifying on behalf of AASG. Our association commends your efforts to strengthen our Nation’s capacity to address 

the challenges related to energy and critical mineral resources. 

AASG strongly supports restoration, preservation, and accessibility of geological and geophysical data. We acknowledge and support the role of U.S. Geological Survey in administering this 

program. We are grateful that the Act supports important state 

and Federal partnerships through 100 percent matching to achieve 

mutually beneficial goals. 

We acknowledge that local, state and tribal agencies and our 

Federal partners, such as the Departments of the Interior, Energy, 

Homeland Security and EPA, as well as the private sector, rely on 

this data for purposes of water, mineral and energy discoveries and 

assessments, natural hazard mitigation, and protection of human 

health and the environment. Bottom line: This data is important. 

Examples of the data at risk include rock and sediment samples, 

fossils, paper logs, aerial photos and maps, which are often in poor 

states of preservation and access and in danger of permanent loss. 

In 2002, the National Academy of Sciences Report titled 

‘‘Geoscience Data Collections—National Resources in Peril’’ made 

the case for the premise of this Act. Many of this Nation’s geological data repositories, most of which are maintained by state 

geological surveys, are now at or near their storage capacity. Expansion of these facilities requires significant capital costs. 

Per the Act, annual authorization is $30 million. However, appropriation has been on the order of 3 percent. Over the last 5 years, 

average annual funding of roughly $27,000 per state has been 

awarded to an average of 25 states. 

While capital improvements are not possible with this modest appropriation level, small data rescue projects have been accomplished by State Geological Surveys, enhancing accessibility, 

discoverability, and usability of the data. 

For example, funds from the Act supported digital archiving of 

historic mine maps in California, which are used to mitigate public 

safety hazards posed by abandoned mines. 

Florida digitally converted more than 7,000 paper geophysical 

logs, thereby protecting the data and providing digital access to information about the state’s deepest wells for use in groundwater 

and energy assessments. 

The economic and societal importance of geological and geophysical data cannot be overstated. Kansas used 50-year-old drill 

cores in its repository to help determine the cause of fatal gas explosions and recommend solutions. 

13 

Michigan received a mining company donation of 4,000 core 

boxes and, fortunately, had the sufficient staff and space to archive 

the materials for future use. Reinspection of the samples led to discovery of potash deposit valued at $65 billion. 

New Jersey, Maryland, and Delaware used data from their respective collections to cooperate on a study of the Potomac aquifer, 

which serves these states as a principal source of drinking water. 

You heard from Chairman Lamborn about the Eagle Ford Shale 

play in Texas. This successful use of geologic and geophysical data 

is seen in other states. For example, similar stories exist in 

Oklahoma and Pennsylvania, where frequent use of geophysical 

logs and samples has led to rapid and efficient development of significant oil and gas plays. 

Data underpins everything we do as geoscientists. We must protect it, and we must make it accessible. The AASG urges this 

subcommittee to consider extending the reauthorization to 2025. 

Thank you again for this opportunity. 

Dr. BENISHEK [presiding]. Thank you very much. 

[The prepared statement of Mr. Arthur follows:] 

PREPARED STATEMENT OF JONATHAN D. ARTHUR, PH.D., P.G., PRESIDENT, ASSOCIATION OF AMERICAN STATE GEOLOGISTS; STATE GEOLOGIST OF FLORIDA ON

H.R. 5066 

Thank you for the opportunity to submit written testimony for the record on 

H.R. 5066, Reauthorization of the National Geological and Geophysical Data 

Preservation Program Act of 2005 through 2019 (NGGDPP). This testimony is presented on behalf of the Association of American State Geologists (AASG). Our organization, founded in 1908, represents the State Geologists of the 50 United States 

and Puerto Rico. AASG seeks to advance the science and practical application of 

geology and related earth sciences across our lands. AASG strives to optimize the 

role that State Geological Survey agencies play in delivering benefits to the people 

of the United States in relation to developing economic prosperity, understanding 

and mitigating natural hazards, protecting property and lives, and preserving our 

natural environmental heritage. 

AASG recognizes the work of Chairman Lamborn, Ranking Member Holt, sponsor 

Benishek and the members of this committee. We commend your efforts to strengthen our Nation’s capacity to address the challenges associated with energy, as well 

as critical and strategic mineral resources. I share with you today the vital role of 

geological and geophysical data in this regard, the vulnerability of these resources, 

and I will emphasize the role that State Geological Surveys can play in addressing 

associated concerns. 

THE AASG POSITION

AASG strongly supports preservation and access of geological and geophysical 

data, which is facilitated through this Act. We support long-term authorization and 

full appropriation of the Act. We acknowledge and support the role of the U.S. 

Geological Survey (USGS) in administering this program, which includes the development and compilation of state and Federal data inventories, an implementation 

plan, data standards, strategic planning, and collaboration regarding preservation 

techniques. We acknowledge the significance of the National Data Catalog at 

ScienceBase.gov. We acknowledge that local and state agencies and our Federal 

partners, such as the Department of Interior, Department of Energy, Department 

of Homeland Security and the Environmental Protection Agency, rely on this data 

for purposes of water, energy and mineral resource assessments and sustainability, 

hazard mitigation, and protection of human health and the environment. AASG 

understands that despite the continuous evolution of geological, geophysical, engineering concepts, and analytical techniques, there is a constant need to revisit, reexamine, and re-analyze rock samples over time. These ‘‘second looks’’ at archived 

and heritage data can yield energy and mineral discoveries worth billions of dollars 

and generate tens of thousands of jobs. The NGGDPP supports important FederalState partnerships that achieve mutually beneficial goals related to the rescue and 

accessibility of invaluable geoscience data. 

14 

A CRITICAL ISSUE FOR THE NATION

Geoscience-related issues are critical and of immediate concern to the Nation’s 

security and economy. Examples include the following: 

• Location, abundance, sustainability and quality of water supplies 

• Domestic energy sources, such as oil, gas, coal, geothermal, and renewables; 

reduction of carbon emissions 

• Domestic sources of metals and critical minerals 

• Identification, mapping, and prediction of geologic hazards such as 

earthquakes, volcanic eruptions, sinkholes and landslides 

• New technological breakthroughs require re-examination of samples and data; 

data historically deemed insignificant may become paramount to new 

discoveries 

• Training the next generation of geoscientists, especially geologic mappers 

All of these issues rely on the analysis of geological and geophysical samples, collections, and data that already exist. Regrettably, these vital materials are often in 

poor states of preservation and access, and in danger of permanent loss. Many of 

this Nation’s geological data repositories, most of which are maintained by State 

Geological Surveys, are now at or near their storage capacity. Some have exceeded 

their capacity and are relying on temporary, non-climate-controlled portable storage. 

Expansion of these facilities requires significant capital costs. While industry and 

government have made substantial investments to acquire geoscience data and collections for over 150 years, volumes of expensive and arduously obtained subsurface 

information are currently at risk of disposal or ruin. Once these data are lost, they 

probably will never be replaced. 

The value of our Nation’s geological and geophysical data (e.g., rock and ice cores, 

fossils, geophysical tapes and paper logs, rock, mineral and fossil samples, aerial 

photos, field notes) have long been recognized. The fact that significant portions of 

these materials are irreplaceable due to destruction of outcrops (e.g., construction, 

quarrying, flooding, landslides), urbanization, restricted access, and prohibitive replacement expenses only increases their importance. If preserved, these materials 

and data will be invaluable for the next generation of scientific research and education. The ability to preserve and maintain geoscience data and collections has not 

kept pace with the growing need for information and technological advancements, 

many of which require real-world calibration: samples from the Earth. 

Not only is rescue of this data critical, a full understanding and access of the 

types and sources of data is equally important to future geoscientists. To this end, 

developing inventories, and recording metadata—or structured information about 

data—allows for future discovery and use through a georeferenced platform such as 

an Internet-based map. Meticulous effort is involved in the research of metadata; 

it is much like detective or forensic work and is time-consuming. 

In 2002, the National Academy of Sciences reported on ‘‘Geoscience Data and 

Collections—National Resources in Peril,’’ making the case for preserving these irreplaceable data and physical samples. The report notes that ‘‘housing of and access 

to geoscience data and collections have become critical issues for industry, Federal 

and state agencies, museums, and universities. Many resources are in imminent 

danger of being lost through mismanagement, neglect, or disposal. A striking 46 

percent of the state geological surveys polled by the [National Research Council] 

committee reported that there is no space available or they have refused to accept 

new material.’’ 

THE RESPONSE

Congress established the National Geological and Geophysical Data Preservation 

Program (NGGDPP) through the National Energy Policy Act of 2005 [P.L. 109–58, 

Sec. 351] to address these issues. Specifically, the NGGDPP was established to: 

• Create a national network of cooperating geoscience materials centers and 

data archives, representing a partnership between U.S. Department of the 

Interior Bureaus and the State Geological Surveys; 

• Archive geologic, geophysical, and engineering-geologic data, maps, well logs, 

and samples in accordance with National and international formats and 

standards; 

• Permit ready access to the holdings of all collections through a common, 

distributed Internet-based National Digital Catalog of archived materials; 

15 

• Provide Federal assistance, matched by state and private funds, to support 

physical and digital infrastructure efforts, outreach, public awareness, and 

workshops; 

• Ensure that this Nation’s next generation of geoscientists has the necessary 

reference material with which to train; 

• Designate the USGS as the program administrator to coordinate geologic 

material centers and data archives with other Department of Interior 

Bureaus, the State Geological Surveys and the AASG; and 

• Encourage private industry and universities to partner with State Geological 

Surveys and the USGS to leverage resources. 

BUDGET HISTORY—A STATE PERSPECTIVE

Since implementation of the NGGDPP, the annual authorization has been $30 

million, however, total appropriated funds since 2007 equals $8 million. This comprises three percent of the total $240 million authorization during that period. Cooperative funding of state projects began in 2007, totaling $4.58 million to date in 

awards to the states. Over the last 5 years, on average, 25 states per year have 

received funding averaging $27,033 per state. This annually comprises an average 

of 63 percent of the appropriated funds over this 5-year period. 

DATA PRESERVATION ACCOMPLISHMENTS AND APPLICATIONS

With the modest appropriation levels, intended capital improvements have not 

been possible; however, the USGS-administered NGGDPP has successfully implemented the National Data Catalog and funded small data rescue activities and improvements in data collections and management across the country. The following 

describes selected accomplishments of State Geological Surveys. In addition, examples of successful applications of previously archived geological and geophysical data 

are shared to illustrate the importance of these geoscience data resources, which can 

generate billions of dollars for the Nation’s economy, create jobs, and save lives: 

• Alabama has digitally cataloged approximately 170,000 fossil specimens 

within its paleontology collection, providing ready access of fossil information 

to energy companies who are constructing or moving pipelines. The companies 

incorporate this information into the Paleontological Resources section of the 

required Environmental Impact Statement within their applications to the 

Federal Energy Regulatory Commission. Archived vibracores can be used to 

evaluate damage to the Alabama coast due to the Deepwater Horizon oil spill 

and may be the basis for recovering significant funds for coastal restoration. 

• Alaska completed a major curation project supported partly by NGGDPP involving a valuable core sample collection at risk of severe material and data 

loss: 818 boxes of moldy coal-bed methane core from five oil and gas wells 

were cleaned, re-boxed, restored and made available to geoscientists studying 

potential energy resources. Other archived cores once examined and analyzed 

for gold, silver, and tin, are now being analyzed for their promising REE 

potential. 

• Arizona digitized and georeferenced more than 4,900 maps, 5,500 reports, 

5,100 images to date; over 30,000 additional files and maps have also been 

scanned—information used extensively by state and Federal agencies in environmental and abandoned mine/mine safety programs, and by mineral resource exploration companies. 

• California notes the importance of its Historic Mine Maps Collection, which 

is used to remediate public safety hazards posed by abandoned mines 

throughout the state. Almost every year there are reports of California residents entering or falling into abandoned mines and becoming trapped sometimes with deadly results. Maps in the collection provide information on mine 

locations that would otherwise go undetected. 

• Florida converted more than 7,000 geophysical logs to digital format, providing information about state’s deepest wells, making the data more accessible and useful toward exploration of oil, natural gas and deep-aquifer 

drinking water. Evaluation of core samples and geophysical logs continue to 

lead to a refined understanding of the Floridan aquifer system. Moreover, examination of core samples led to discovery of natural sources of arsenic, which 

fostered development of techniques that mitigate the release of this element 

underground sources of drinking water. 

16 

• Kansas used drill cores in its repository that were collected in the 1960s to 

help determine the cause of a gas explosion and recommend solutions. In 

2001, natural gas bursts in Hutchinson, Kansas, resulted in downtown explosions and fires, as well as fountains of natural gas and brines 3 miles east 

of the fires and an explosion under a mobile home that killed two people. 

Using the drill cores and new seismic data, scientists determined that gas 

leakage from a salt cavern used to store natural gas had resulted in two 

anomalous zones of potential high gas pressure. Vent wells were drilled to release the pressure, which prevent further explosions. Originally acquired in 

the 1960s while the Atomic Energy Commission was trying to determine potential nuclear storage facilities, the core was used in 2001 to prevent further 

explosions and deaths from underground natural gas accumulations. 

• Michigan received a mining company donation of 4,000 core boxes and fortunately had sufficient staff process the samples and sufficient space to archive 

the materials for future access. Reinspection of the samples led to discover of 

a potash deposit valued at $65 billion. 

• Missouri received funding from NGGDPP and applied it to convert 400 hardbound, paper field notebooks to a digital format via scanning for preservation 

and archival purposes, increasing public awareness of and accessibility to the 

information. The collection comprises more than 1,500 geology field notebooks 

that date back to 1855. The collection is one-of-a-kind and would be impossible to replace should be lost or destroyed. The notebooks contain historic 

geologic data on outcrop locations, rock-unit layers, mining, karst, hydrology, 

structure and other topics. They also contain historic data on physiography, 

vegetation, socio-economic and cultural information and a myriad of other 

subjects. The notebooks have proven to be essential for site location and characterization work on mine-related Brownfields work. The information has not 

only reduced costs and time by providing mine location data, but has also 

been the sole source of information for more than 1,700 historic mines, many 

of which have significant soil or groundwater lead contamination and are now 

proximal to residential development. 

• Montana applied NGGDPP funds to collect and preserve mines and mineral 

data throughout the state, specifically, preserving drill hole logs, mineral 

evaluations, and many other data related to the New World Mining District. 

Preservation of mineralogic and geochemical data was also accomplished to 

evaluate hundreds of abandoned-inactive mine sites for reprocessing waste 

rock. 

• New Jersey, Maryland and Delaware used geologic and geophysical logs 

from their respective collections to cooperate on a transboundary study to understand the Potomac Aquifer, which is a principal supplier of drinking water 

in each state. The project was supported by the USGS National Cooperative 

Geological Mapping Program (STATEMAP). The geologic information, made 

available in part from the NGGDPP program, assisted the team with identifying the dimensions of the aquifer, and for locating optimal drilling locations 

for additional test wells. Drilling test wells is costly, and the use of existing 

geologic and geophysical information allowed the team of researchers to make 

optimal use of their research funds. 

• New York applied NGGDPP resources to support the scanning of over 1,700 

maps, therefore preserving the documents and making them more accessible. 

State agencies, such as the Departments of Transportation and Environmental Protection, have used the scans of our bedrock maps for projects such 

as landslide mitigation, resource planning, and habitat protection. They have 

also been used by the engineering community in planning and construction 

of a new water supply tunnel for New York City. Engineers on the project 

stated that the existence of archival bedrock data in the NYSGS open file 

saved the City ‘‘millions of dollars in drilling costs.’’ 

• Oklahoma has a core facility and data center, the Oklahoma Petroleum 

Information Center, that is the size of four football fields and holds over 100 

miles of core. It also holds thousands of well logs, thousands of boxes of drilling cuttings, very popular old aerial photographs that we have scanned with 

NGGDPP funding, and equally popular old data such as mud logs which we 

have also scanned with NGGDPP funding. These data are being used daily 

in oil and gas exploration and production efforts across Oklahoma, and we are 

regularly told how invaluable these data are. Some of the recent plays that 

are in the news are the Mississippi Lime, Granite Wash, Woodford shale, and 

SCOOP (South Central Oklahoma Oil Province). The utility of the data we 

17 

preserve can be easily tracked by the requests for core viewing, examination 

of cuttings, and paper records as these and other plays develop. 

• Pennsylvania gas archived core that was drilled and archived over the last 

40+ years and has been utilized over the last 5 years for studies of the 

Marcellus shale. This horizon has recently fueled a significant increase in 

available gas resources to support the U.S. economy. Were it not for the cores 

preserved and maintained by the PA Survey, and the work over the last 30 

years to map, sample and evaluate the Marcellus—long before the advent of 

current drilling technology and the now recognized importance of organic 

shales—the rapid and efficient development of this resource would have been 

significantly delayed. 

• Texas maintains three core research centers. In 2008, reinspection of a small 

manila pouch full of rock chips from a dry oil test well in southern Texas led 

to discovery of the Eagle Ford Shale play: a $25 billion economic impact in 

a 20-county area supporting more than 47,000 jobs. The pouch resides in a 

box among half a million boxes in a Texas Bureau of Economic Geology core 

research facility. The sample had likely not been inspected since the 1950s. 

• Utah has record of over 24,000 air photos that were downloaded last fiscal 

year for use by geotechnical and environmental engineering consultants in 

support of investigations for new development to identify and locate potential 

geologic hazards, and in environmental assessments, and by local governments and others to document land-use changes. The Survey’s Aerial Imagery 

Collection is being used on almost all internal geologic hazard projects and 

emergency responses, and is critical for mapping landslide occurrences (such 

as the over 500 square mile Wasatch Plateau landslide inventory mapping 

project, Seeley Fire emergency response, etc.), and other hazards. 

IN CLOSING

The AASG endorses the NGGDPP as it is designed to readily address a vast and 

enduring concern for the Nation. Not only are geological and geophysical data at 

risk, but scientific clues revealing undiscovered water, mineral and energy resources 

may be lost, and more importantly, data that can save lives may be lost. This cooperative Federal-State program affords the Nation the opportunity to more fully understand the reserves of water resources and mineral and energy reserves in our 

lands. In addition, the data is also used for prediction and preparation of geological 

hazards, as well as to avoid unnecessary costs of embarking in geologic exploration 

in areas already represented in historic collections. 

Given past appropriation levels and the immense importance of this successful 

program, the AASG strongly recommends that the authorization be extended to a 

10-year duration, ‘‘. . . 2015 through 2025.’’ We also encourage full appropriation 

levels to meet national demands for capital improvement projects to store, protect 

and make these valuable geoscience resources more readily available. 

Thank you, again, for this opportunity. I hope you find this information helpful 

as you consider this important matter. 

For more information about geoscience data repositories and success 

stories: 

American Geological Institute, 1997, National Geoscience Data Repository System 

Phase II: Final Report, Alexandria, Virginia, 127 p. 

American Geological Institute, 2003, National Geoscience Data Repository System 

Phase II: Implementation and Operation of the Repository Final Report, Alexandria, 

Virginia, 42 p. 

American Geological Institute, 2006, Directory of Geoscience Data Repositories, 

Alexandria, Virginia, http://www.agiWeb.org/ngdrs/datadirectory.html. 

Collette, Mark, December 30, 2012, ‘‘The Wildcatter: Corpus Christi’s Gregg 

Robertson, key member of Eagle Ford discovery, named 2012 Newsmaker of the 

Year,’’ Corpus Christi Caller Times, Retrieved from http://www.caller.com/business/ 

eagle-ford-shale/the-wildcatter-corpus-christis-gregg-robertson. 

National Research Council, 2002, Geoscience Data and Collections—National 

Resources in Peril, National Academies Press, Washington, DC, 107 p. 

Office of Management and Budget, 2002, Coordination of Geographic Information 

and Related Spatial Data Activities. Circular No. A–16 Revised. 

Roland, Cheryl, September 10, 2013, ‘‘Western Michigan University research facility 

assists in rediscovery of rare mineral deposit,’’ Western Michigan University News, 

Retrieved from http://wmich.edu/news/2013/09/9197. 

18 

SUPPORTING IMAGES

Dr. BENISHEK. Mr. Gooding. 

STATEMENT OF PATRICK J. GOODING, RESEARCH GEOLOGIST/ 

MANAGER, KENTUCKY GEOLOGICAL SURVEY, UNIVERSITY 

OF KENTUCKY, WELL SAMPLE AND CORE LIBRARY 

Mr. GOODING. I am also honored to be here representing the 

Kentucky Geological Survey at the University of Kentucky. 

Geoscience data is the extensive collection of data obtained during research and exploration and includes the following: Fossils—— 

Dr. BENISHEK. Sir, is your microphone on? 


89836.005.eps
19 

Mr. GOODING [continuing]. And includes fossils, geochemistry 

data, minerals, well cuttings, coals, to name a few. 

Are important geoscience data being destroyed? Yes. Each year 

millions of feet of coal and well cuttings along with water data, geologic logs, maps, seismic data, mineral, and fossil collections are 

being discarded all over the country. 

Why is examination of geoscience data important? It leads to 

cleaner, better, and improved environment, discovery of energy 

sources and minerals, and a better understanding of the geological 

history. 

Field work, data acquisition, and research is costly. It is timeconsuming and it is dangerous. Preserving geoscience data at a repository is the solution. State Geological Surveys throughout the 

country maintain facilities similar to this one with supporting 

funds from Congress. Geoscience data are examined daily for research and exploration. 

Where do our donations come from? From coal companies, mining, quarry, research, state and Federal agencies, to name a few. 

Samples and cores add great value to industry and research, in 

education, and in training in all levels. 

Geoscience data provides opportunities for research, exploration 

and development. It is used by graduate students with their thesis 

and dissertations, on class projects, and lab exercises. 

What can be learned from studying this material? A detailed and 

accurate understanding of the subsurface is possible through the 

examination and study of geoscience data. 

And how does geoscience data impact the economy? It provides 

solutions to scientific, economic, environment issues and potentially 

natural disasters. It also facilitates new discoveries, redevelopment 

of old areas, and allows intelligent planning decisions and a better 

management of our natural resources. 

So what is the benefit and purpose of keeping geoscience data? 

There is a constant need to go back and reexamine samples and 

cores as new geological and engineering concepts evolve, as new analytical instruments and techniques are developed, as new progress 

in technology and computer modeling advances, and as new methods of examination and interpretations evolve. 

An established record results in greater success and predictability, less development, and exploration time, readily available 

data, and geoscience data preservation facilities throughout the 

country are filled to capacity. 

Tremendous geoscience data preservation progress has been accomplished nationwide with support from the National Geological 

and Geophysical Data Preservation Program Act of 2005, and reauthorization is warranted and justified. 

I thank you. 

[The prepared statement of Mr. Gooding follows:] 

PREPARED STATEMENT OF PATRICK J. GOODING, RESEARCH GEOLOGIST/MANAGER, 

KENTUCKY GEOLOGICAL SURVEY, WELL SAMPLE AND CORE LIBRARY ON H.R. 5066 

What is geoscience data? 

It is the extensive collection of data obtained during research and exploration. It 

includes fossils, geochemistry data, models, geologic reports, field samples, well 

cuttings, cores, mineral collections, hydrocarbon samples, tar sands, coals, thin sections, engineering reports, maps and geologic cross sections. 

20 

How are geoscience materials used and by whom? 

Although many tools are available for exploration, the examination of geoscience 

data available at state and Federal repositories are used by scientists from the U.S. 

Government, geological surveys, educators from academia, exploration, development 

and industry geologists, consultants, operators, students and the general public. The 

data preserved at these facilities are the best source of materials for research, training, and education and provides solutions to scientific, economic, and environmental 

issues. 

Are important geoscience data being discarded and destroyed? 

Yes. Each year, millions of feet of cores and well cuttings along with the water 

data, geologic records, maps, seismic data, and mineral and fossil collections, are 

discarded and destroyed all over the United States. The loss of this resource, which 

costs millions of dollars to obtain, is a tragedy for our Nation. 

Why are geoscience data important? 

Detailed examination of geoscience data is important in research, development, 

discoveries, exploration of new hydrocarbon reservoirs and mineral deposits critical 

to U.S. energy security and independence. Examination of these data provides opportunities leading to new discoveries in energy, environmental issues, and a better 

understanding of the earth’s history and development. An established record results 

in greater scientific success and predictability. It reduces development and exploration time, and contributes to lower exploration costs, increased efficiency and 

greater safety. Some data are irreplaceable and would be cost prohibitive to reacquire in the future. 

What are the advantages of a repository? 

Repositories preserve geoscience data, make the data accessible, and promote the 

utilization of their collections in education, scientific research, exploration, and development of resources both on and beneath the earth’s surface. 

Historical data, literature, previously analyzed sample data, geophysical logs, core 

data, geochemical analysis and samples are generally available at repositories for 

examination. Many records have been scanned and are accessible in digital format 

on repositories’ Web sites. Utilization of data becomes more efficient when geoscience data pertaining to that state is preserved at a repository located in that 

state. 

How are repositories important for research and development? 

Geoscience data are of great value in industry, research, education and training. 

Cores and well samples are the most important source of information for hydrocarbon and mineral exploration and for stratigraphic and structural investigations. 

Cores and well samples also are the best source of detailed geologic information 

about the nature, occurrence, and extent of rocks in the subsurface. Geologists engaged in the exploration for and development of mineral resources must have 

detailed knowledge about the strata in which the deposits occur, as well as information about associated deposits. Cores and well samples also provide essential information for a better understanding of our groundwater resources and related 

environmental problems. Knowledge about the rock beneath the earth’s surface can 

only be gained through detailed examination of well cuttings and cores. 

How are geoscience data used in education? 

Geoscience data provides opportunities for research, exploration, development and 

scientific reports. Graduate and undergraduate students from universities throughout the country use the materials available at the repositories to generate theses, 

dissertations, class projects, term papers, lab exercises, reports, research papers, 

publications and professional presentations. Examination of cores and well samples 

allows students to expand their knowledge of rocks and geologic processes while conducting research on a wide range of geologic material, thereby providing a greater 

understanding of the subsurface and the evolution of the earth. 

In what disciplines are the data used? 

Geoscience data are used for a wide range of interests including: exploration for 

hydrocarbons, and coal, and in environmental, engineering, mining, construction, 

and land-use studies. In addition, they are used in stratigraphy, sedimentology, paleontology, geochemistry, structure, earthquake investigations, subsurface mapping, 

seismic studies, and geologic reconstruction. 

21 

How are geoscience data acquired? 

Geoscience data are generally donated to Federal and state geological surveys by 

coal, oil and gas, mining, highway construction, and environmental investigations; 

construction projects; quarry operators; university research; and Federal and state 

projects. 

What can examination of geoscience data reveal? 

A detailed and accurate understanding of the rock beneath the earth’s surface can 

only be gained through exploratory drilling and examination of geoscience data generated during exploration. Detailed examination of well samples and cores is important in understanding petroleum reservoirs, and mineral deposits which lead to 

more discoveries of hydrocarbons and minerals critical to the Nation’s energy security and independence. 

Conclusions reached using geoscience data provide information to government and 

industry that allows intelligent planning decisions concerning assessment and management of valuable natural and strategic resources. Without these data, more time 

and effort will be consumed in duplicated exploration and development and there 

would be a greater chance of failure because of increased cost overruns and decreased production. Intelligent planning decisions are made based on reliable data. 

How does geoscience preservation affect the economy? 

Geoscience preservation leads to new discoveries, redevelopment of mature oil and 

gas fields and mineral deposits, and infrastructure, resulting in sustained economic 

growth and more investment in the community and increased tax revenues. It also 

lowers exploration costs, and increases efficiency and safety. Availability of geoscience data allows more detailed preparation and development, better management 

of natural resources, and provides solutions to scientific, economic, and environmental problems and potential natural disasters. 

Without good and efficient management of our current and future resources and 

firm knowledge of where future supplies of these resources can be found, economic 

development cannot be sustained. This fact also begs the question: If our supply of 

strategic minerals from foreign sources was interrupted for any reason, where would 

we find a local source of that mineral? Geoscience data and the professional papers 

generated from research using the subsurface data would be a good place to begin 

the search. 

How much does it cost to initially acquire geoscience data? 

The process of field work, data acquisition and research, time consuming and 

dangerous to attain. It costs millions of dollars to acquire. 

How would preservation of geoscience data affect future generations? 

Preserving geoscience data would provide readily available data to future generations, giving them opportunities for investigation, development and evaluation 

which in turn could lead to new innovations and discoveries. Using these preserved 

data may result in greater success and predictability. Some data are irreplaceable 

and lack of availability of the necessary tools, equipment and labor to reacquire geoscience data may be cost prohibitive in the future. Preservation of geoscience data 

will facilitate the training and education of the next generation of geoscientists, and 

help with appraising water resources, dealing with conservation, and mitigating 

hazards such as earthquakes and landslides. 

What are the advantages of maintaining a database and inventory of 

geoscience data? 

Samples and cores are of great value to industry and research. There is a constant 

need to re-examine geoscience data available at both Federal and state repositories. 

These data are an invaluable resource as new geologic and engineering concepts 

evolve, as new analytical instruments and techniques are developed, as new methods of examination and interpretation emerge, and as advances are made in technology and computer modeling. Our greatest gift is preserving our data and passing 

our knowledge to the next generations. 

How is having geoscience data readily available important to geoscientist? 

Readily available geoscience data will lower the costs and increases the efficiency 

of reworking old reservoirs, reevaluating environmental concerns and predicting 

natural hazards and using new technology and new extraction enhancement techniques. In addition, they can be used in the quest for a pristine and greener environment, by facilitating clean and efficient energy. It is imperative that the next 

generation be trained and educated, because knowledge is the key to success. Using 

22 

this wealth of data can contribute to continued economic prosperity and energy independence, resulting in greater national security. 

Should the National Geological and Geophysical Data Preservation 

Program Act of 2005 be extended to 2014? 

For the most part, both Federal and state repositories are filled to capacity, and 

have inadequate working space. In addition, many repositories are overwhelmed by 

the extent of available collections. Most repositories that have received funding from 

the National Geological and Geophysical Data Preservation Program Act of 2005 are 

making tremendous progress rescuing collections, and preserving, identifying, 

inventorying, scanning and photographing their collections while making the data 

available for inspection at the repository or on their Web sites, and for this to 

continue, reauthorization of this Act is justified and necessary. 

Dr. BENISHEK. Thank you, Mr. Gooding. 

Mr. Pagano, you may begin. 

STATEMENT OF THEODORE A. PAGANO, P.G., P.E., GENERAL 

MANAGER, MICHIGAN POTASH COMPANY, LLC 

Mr. PAGANO. Again, thank you. My name is Ted Pagano. I am 

the founder and general manager of Michigan Potash Company. 

Thank you, Dr. Benishek, for the recommendation to come before 

Congress to speak on behalf of House Bill 5066. 

Dr. Benishek thought about Michigan Potash Company when 

House Bill 5066 came up because our story is a unique and compelling one that really epitomizes the purpose of H.R. 5066. 

So it is a unique one in which we utilized, or Michigan Potash 

Company utilized, rescued and old geological data to identify a critical strategic resource that actually strengthens the U.S. balance of 

trade, helps our U.S. farmers and potentially impacts food security. 

Food security in geology doesn’t tend to usually come to a frame 

of reference or mind, but potash, potash is actually the world’s 

tightest-controlled commodity and it is responsible for our food 

growth. 

It is produced by only 13 producers in the entire world and it 

comes from only 13 countries. Amongst all other commodities, it is 

the tightest controlled. 

Go ahead and turn it to the next slide. 

This is a graphical example of where U.S. potash production has 

come since its peak plateau in 1962. So the blue line shows U.S. 

potash production, and the red line shows U.S. consumption. The 

green line on the back side shows where U.S. prices have come of 

recent times. 

So since 1962 and at peak rates, potash production has declined 

by 65 percent. Demand has increased by 195 percent, in large part 

due to emerging competitive nations, and U.S. potash import reliance has increased by 85 percent. 

This is a picture also generated by the U.S. Geological Survey 

and old historical data, of potash consumption by county. The 

United States only has three places from where potash comes. 

Next to each of those red dots you can actually see when commercial production was established. Most of our potash production 

comes from New Mexico, from what is called the designated potash 

reserve. 

23 

In 1939, it was identified as a strategic resource important 

enough to protect. So it is protected yet today by the Department 

of the Interior. 

But it has become significantly depleted over the past 80 years. 

In fact, one of the potash producers in the designated potash area 

will cease potash production there at the end of this year. That 

leaves us with one potash producer domestically. 

Now, there is a little red dot there in Michigan in the middle of 

the Corn Belt that reached commercial production in 1989. 

We know very little about this. We knew very little about this 

until about 3 years ago. This is the Hersey potash facility in 

Michigan, one of the United States’ only sources of potash. 

In 2008, this gentleman, Bill Harrison, the founder and director 

of the Michigan Geological Repository for Research and Education, 

drove up to Hersey, Michigan, to take back core in his pickup 

truck, and he came across boxes and boxes, over 12,000 foot of core, 

which would cost today over $200 million to replicate. It is one of 

the finest evaporative collections that we have in the United 

States. 

So he took it under his wing, brought it back to preserve. And 

I think Dr. Benishek mentioned he is a beneficiary of the prior 

2005 Data Preservation Act. Without that, he couldn’t operate. 

So a few years later we inquired as to the solid core cuttings that 

he had. And, as it turns out, the youngest commercial deposit of 

potash reaching production in 1989 is also the world’s highestquality ore, globally speaking, and it resides in the U.S. Corn Belt. 

A beneficiary of the Data Preservation Act of 2005 enabled the 

rediscovery of this critical mineral reserve enough in place in 

Michigan to double the U.S. output for over a century and a half. 

So the control of a product in the hands of very few creates price 

control around a resource needed by the United States to sustain 

our farmers and the work that they do to feed our families. The 

MPC story is one that pays H.R. 5066 forward in a real and 

impactful way. 

Thank you. 

[The prepared statement of Mr. Pagano follows:] 

PREPARED STATEMENT OF THEODORE A. PAGANO, P.G., P.E., GENERAL MANAGER, 

MICHIGAN POTASH COMPANY, LLC ON H.R. 5066 

Michigan Potash Company, LLC (‘‘MPC’’) has been invited to give testimony on 

H.R. 5066, the ‘‘Data Preservation Act of 2014’’, as a result of its immediate experience with preserved geological data and the Michigan Geological Repository for 

Research and Education (‘‘MGRRE’’). 

MGRRE was a beneficiary of the National Geological and Geophysical Data 

Preservation Program Act of 2005, and requires these funds to operate. 

MGRRE was founded by William B. Harrison III, in 1982 to preserve and research geological samples and data, for the specific purpose of identifying value, 

both commercial and educational in Michigan’s natural resources. The Repository 

now archives the largest collection of subsurface geological samples and data in the 

state. The collection includes Michigan geological publications, geologic and subsurface maps, driller’s reports, well scout data, oil and gas well production data, 

well test data, various types of wireline logs, drill cuttings samples, drill core samples and other miscellaneous well and geological information. 

IN 2011, MPC became a direct beneficiary of MGRRE’s preservation of geological 

data that resulted in a critical and substantive geological re-discovery that has the 

ability to strengthen U.S. agriculture, farmers, food security, and balance of trade. 

24 

About Potash: 

Potassium is one of the three primary nutrients essential to support carbohydrate 

production and plant life. Potassium is supplied in natural fertilizers to improve 

productivity, efficiency, and yields of agribusiness. The major source of potassium 

is potash (potassium chloride), extracted form sylvinite, a naturally occurring mineral containing both potassium chloride (potash) and sodium chloride (table salt). 

Since 1965, world consumption of potash grew from 12 million tons, to an approximate 58 million tons today. In 50 years, potash consumption has almost quadrupled. 

In the last two decades, potash consumption has doubled. 

The American farmer, the most efficient in the world, consumes about 6 million 

tons of potash annually and globally, pays more than any other farmer. Over 83 percent of U.S. potash consumption is imported. Domestic potash supply comes principally from the Designated Potash Area in New Mexico; established in 1939 as a 

strategic resource, it has been and remains protected by the Secretary of the 

Interior. Over the past 80 years, the Designated Potash Area has become critically 

depleted. 

In December of 2014, one of the two potash producers based in the United States 

will cease potash production from the Designated Potash Area, citing depletion and 

low ore grade. 

Potash is the world’s tightest controlled commodity. It is utilized throughout the 

globe, but commercial production occurs in only 13 countries and from 13 

companies. 

About the Core Recovery: 

A small manufacturing plant in the western rural setting of Hersey, Michigan, for 

extracting and refining potash was opened in the late 1980s by Pittsburg Plate and 

Glass. Harrison, the founder of MGRRE, said the company extracted subterranean 

rock cores all over Michigan back in the 1980s and he was aware of their test drilling at the time, but the company never revealed its findings to the public. 

IMC Global purchased Pittsburg Plate and Glass’ potash producing segment, resulting in the largest potash producer in the world, and at the time most critical 

to the Hersey’s capital growth period, they did not invest the capital Hersey needed 

to expand, thus it remained ‘‘under the radar.’’ 

The Hersey plant contacted MGRRE in 2008 stating it no longer wanted to store 

the Michigan geological core samples it had amassed, and offered to donate them 

to Western Michigan University. 

Harrison accepted on behalf of Western Michigan University, and drove up to 

Hersey in his pickup truck—only to discover there were 4,000 80-pound core samples—approximating 12,000 feet of drilling. The drilling and replacement cost of this 

core, would be over $200 million today. A moving van had to be hired to bring the 

boxed cores to the Michigan Geological Repository for Research and Education, 

where they were cataloged and stored. 

About the Re-Discovery: 

A few years later, following inquiries from MPC, MGRRE and MPC worked collectively to have all of the cores tested by an independent lab in Saskatchewan, provided the province’s foremost expertise in potash analysis. The drilling cores from 

Michigan ‘‘turned out to be the highest grade of potash anywhere in the world. It 

was just remarkable,’’ said Harrison. It is the purest and highest-grade potash being 

produced globally—600 percent higher than that being produced in New Mexico’s 

vast Permian Basin and twice the grade of deposits found in Canada and Russia. 

‘‘What blew our minds was that there were layers in there that were essentially 100 

percent of this potassium chloride,’’ said Harrison. 

The Hersey Potash discovery in 1980, makes it the world’s youngest commercial 

discovery, and a very tightly kept secret. 

As it turns out, and later discovered by MPC, Pittsburg Plate and Glass had intended to double U.S. potash output from Hersey, Michigan, effectively migrating 

the U.S.’ domestic reliance from New Mexico to Michigan. They coined it the ‘U.S. 

Potash Project.’ 

There is enough proven, commercial, potash sitting under Hersey, Michigan to 

double U.S. output for over 150 years, and that’s without drilling any new test 

wells. MPC has worked quietly over the past 3 years to confirm the reserve could 

be technically, economically and logistically put into production as it was originally 

intended by Pittsburg Plate and Glass. 

‘‘One of the things that makes this so valuable is that it is an incredibly rich deposit that is in easy reach of the enormous demand from Midwest corn and soybean 

farmers who operate within a 500-mile radius of this deposit,’’ Harrison says. ‘‘This 

25 

is an opportunity for new wealth to come from the use of natural resources never 

tapped before.’’ 

Some financial endeavors transfer wealth from one hand to another by the trading 

of goods and services. The discovery of a new natural resource, however, and its production, creates brand new Gross Domestic Product, or GDP. At current prices, a 

simple in the ground value exceeds $65 billion. 

Linda Harrison, William’s spouse and an administrator with MGRRE, said the 

Michigan potash was obviously known about, as it was ‘‘booked as proven and probable’’ in SEC documents filed by IMC Global when the company stock traded on the 

New York stock exchange. However, the promising discovery in Michigan was apparently forgotten within IMC Global during its financial trials. 

MPC and MGRRE were the first ones to cut open these vacuum-sealed cores from 

the time they were originally packed. 

MGRRE are not hired consultants nor investors, and have no financial 

involvement with Michigan Potash. 

References: 

Daly, Pete (2013, September 13). Potash a Gold Mine for Michigan. The Grand 

Rapids Business Journal. 

Zipp, Yvonne (2013, September 10). Rediscovery of rare mineral deposit by WMU 

geologists and private company could boost Michigan economy. The Kalamazoo 

Gazette, Mlive. 

Related Materials: 


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Dr. BENISHEK. Thank you, Mr. Pagano. 

Mr. Phelps. 

STATEMENT OF WALTER PHELPS, COUNCIL DELEGATE, 

NAVAJO NATION 

Mr. PHELPS. Thank you. 

Good afternoon, Congressman Benishek, Chairman Lamborn, 

Ranking Member Holt, members of the Subcommittee on Energy 

and Mineral Resources. My name is Walter Phelps, and I am a 

Nation Council Delegate and Chairman of the Navajo-Hopi Land 

Commission of the Navajo Nation Council. 

It is an honor to come before you to discuss the Navajo Nation’s 

support for House Resolution 5176. This legislation would help to 

resolve a 4-decade-old Federal obligation to the Navajo Nation that 

was authorized in the Navajo-Hopi Land Settlement Act of 1974. 

The Act settled the disputed boundaries between the Navajo 

Nation and the Hopi tribe and resulted in the forced relocation of 

over 10,000 Navajo citizens from what is now Hopi land. In return 

for the lost acreage, the Navajo Nation was permitted to select 

unencumbered Federal lands for the conveyance and to trust for 

the Navajo Nation. 

In the early 1980s, Navajo Nation selected parcels of land known 

as Paragon Ranch in northern New Mexico. The Secretary of the 

Interior has conveyed some of these parcels. Unfortunately, a number of the parcels selected within the Paragon Ranch are encumbered by the preference right lease applications held by private 

entities. These parcels cannot be taken into trust for the Navajo 

until the PRLAs are resolved. 

A further complication evolved after the selection of these parcels 

when the Federal Government initiated the Fossil Forest and the 


89836.015.eps
29 

Wilderness Study Area, effectively blocking the development of 

these selected lands. 

The BLM initiative is designed to protect these areas and surrounding lands with historical and archeological assets. There is 

therefore no legal process for deselection and reselection of lands 

that would solve these problems. 

Given the limited availability of BLM lands within the mandated 

18-mile boundary area, there is little opportunity to easily fix this 

issue. 

This legislation should establish that the naturally existing 

boundary of the reservation includes the Navajo trust lands that 

incorporate the satellite communities. The Navajo Nation supports 

this legislation with the ability to deselect and reselect land of 

equal value at the Nation’s discretion. 

Representative Ben Ray Luja ́n and Representative Cynthia 

Lummis introduced House Resolution 5176 to provide the statutory 

authorization to resolve these issues by providing a mechanism to 

retire these remaining PRLAs. We appreciate their efforts and hope 

that this committee will act on the legislation before the end of this 

Congress. 

Passage of this legislation would resolve one aspect of the harsh 

effects experienced by the Navajo people due to the 1974 NavajoHopi Settlement Act. Further, it fulfills a promise made by the 

Federal Government to the Navajo people 40 years ago. 

Thank you. 

Dr. BENISHEK. Thank you, Mr. Phelps. 

[The prepared statement of Mr. Phelps follows:] 

PREPARED STATEMENT OF WALTER PHELPS, NAVAJO NATION COUNCIL DELEGATE ON

H.R. 5176 

Good afternoon Chairman Lamborn, Ranking Member Holt and members of the 

Subcommittee on Energy and Mineral Resources. I am Walter Phelps, Navajo 

Nation Council Delegate, and Chairman of the Navajo-Hopi Land Commission. I am 

here to discuss the Navajo Nation’s support for H.R. 5176. This important legislation brings to a close a four decade-old Federal statutory obligation to the Navajo 

Nation that was authorized in the Navajo Hopi Settlement Act of 1974. 

I would like to thank Congressman Ben Ray Luja ́n and Congresswoman Cynthia 

Lummis and their staff for introducing this legislation. I would also like to take this 

opportunity to thank some of the members of the subcommittee who have been 

strong supporters of the Navajo Nation: Congressmen Bishop, Gosar (our former 

Representative), Mullin, Grijalva, and Hanabusa. The Navajo Nation recognizes and 

appreciates your tireless efforts working on behalf of the Navajo Nation and all 

Native Nations. 

The Navajo-Hopi Settlement Act settled the disputed boundaries between the 

Navajo Nation and Hopi Tribe. The settlement led to the relocation of Navajo 

citizens from what is now Hopi land, and the loss of acreage from the Navajo 

Reservation. In return for the lost acreage, the Navajo Nation was permitted to select comparable acreage on Federal lands to be taken into trust for the Navajo 

Nation. In the 1974 Act, Congress committed to provide the Navajo unencumbered 

lands that the Nation would select from Federal lands managed by the BLM. 

In the early 1980s, the Navajo Nation selected the parcels of Federal land. The 

secretary of the Interior has since taken most of those parcels into trust for the 

Navajo Nation. Unfortunately, a number of the parcels selected by the Navajo 

Nation were encumbered by prior mineral rights (PRLAs) held by private entities. 

These parcels are unable to be taken into trust for the Navajo until the private 

mineral rights are removed. The status of these parcels of land with valid private 

mineral rights, and stipulated commercial quantities of coal, remains unresolved. 

Further complicating a resolution to this matter is that subsequent to the 

Settlement Act, the Federal Government also provided two major areas with protections against development: the Fossil Forest and the Ah-Shi-Sle-Pah Wilderness 

30 

Study Area on which these PRLAs existed and on which the Navajo had selected 

parcels to be taken into trust. It is the BLM’s goal to protect areas closely surrounding the Park that are replete with historical and archeological assets. Unfortunately, the current law does not provide a mechanism for deselecting any of the 

parcels and reselecting others. Further, given the limited availability of BLM lands 

within the mandated 18-mile boundary limitation there is little opportunity to easily 

fix this issue. Allowing for deselection and reselection, and establishing that the 

boundary of the reservation lies within the naturally existing boundaries of Navajo 

trust land would alleviate these issues and allow the Navajo Nation to address the 

BLM’s concerns. 

An important mechanism to un-encumber lands is the exchange of existing PRLAs 

for competitive coal leasing bidding rights, essentially ‘‘trading in’’ the old PRLAs 

for credits that can be used to meet future obligations under the Federal coal leasing program. However, as potential administrative PRLA exchange discussions 

moved forward, the Interior Department’s solicitor discovered that Interior did not 

have the authority to pay the resultant state share of credits. This would significantly disadvantage states in the application of any bidding credits. 

Representatives Ben Ray Luja ́n and Cynthia Lummis introduced H.R. 5176 to 

provide that statutory authorization to resolve of all of these issues, most importantly the Federal obligation to the Navajo Nation, by providing a mechanism to retire these remaining PRLAs. The legislation: 

1. Authorizes the Secretary to negotiate a value for these minerals currently 

held by private interests; 

2. Authorizes the exchange of the mineral rights for a credit in the amount of 

the negotiated value to the private interest, to be applied in other Federal 

leasing activities, and; 

3. Authorizes the Secretary to make ‘‘state share’’ payments to any relevant 

state in which the bidding credits are applied. 

It is important to note that while the selection of the lands in question result from 

the terms of the Navajo-Hopi Land Settlement Act, this is solely a Navajo/Arch/ 

New Mexico issue. The lands selected by the Hopi Tribe for conveyance were solely 

within the state of Arizona, and the rights therein have already been transferred; 

it is only the Navajo Nation that has yet to finalize its land selection and transfer. 

Completion of this exchange does not require that the Hopi agree to the terms contained within the legislation. 

Passage of this legislation would bring to a close one element of the long painful 

experiences that the Navajo people have experienced due to the 1974 Navajo Hopi 

Land Settlement Act. Further it fulfills a promise made by the Federal Government 

to the Navajo Nation 40 years ago. 

Thank you. 

Dr. BENISHEK. And, finally, Mr. Nedd. 

STATEMENT OF THE HON. MICHAEL NEDD, ASSISTANT 

DIRECTOR, ENERGY, MINERALS & REALTY MANAGEMENT, 

BUREAU OF LAND MANAGEMENT, U.S. DEPARTMENT OF THE 

INTERIOR 

Mr. NEDD. Mr. Chairman, Ranking Member, and members of the 

subcommittee, thank you for the opportunity to present the views 

of the Department of the Interior on these two bills. I will briefly 

summarize our views and ask that the entire statement be included in the record. 

I am accompanied today by Mr. Kevin Gallagher, Associate 

Director for the U.S. Geological Survey of Core Science Systems. 

Mr. Gallagher is here to answer questions relating to H.R. 5066. 

H.R. 5066, the Data Preservation Act of 2014, reauthorizes the 

National Geological and Geophysical Data Preservation Program 

through 2019. Through this partnership with the State Geological 

Survey, the Department plays a leading role in the Federal collecVerDate Mar 15 2010 13:45 Jul 13, 2015 Jkt 000000 PO 00000 Frm 00034 Fmt 6633 Sfmt 6602 J:\01 ENERGY & MIN\01SE17 2ND SESS. PRINTING\89836.TXT DARLEN
31 

tion, management and preservation of geological and geophysical 

data. 

Since 2007, the program, which is administered by the U.S. 

Geological Survey, has provided 44 states with almost $4.6 million, 

which, when matched by the states, amount to over $9 million invested in the rescue and preservation of geoscience collection. 

The Department supports H.R. 5066, the Data Preservation Act 

of 2014, in order to provide continued funding for the states and 

Federal partnership, ensuring the rescue and continued preservation of geological and geophysical samples and data. 

H.R. 5176 would authorize the Secretary of the Interior to retire 

certain coal leases in exchange for coal bidding rights elsewhere on 

Federal lands. 

The Department appreciates the work of the cosponsors and supports the goal of seeking resolution to long-standing, unresolved 

mineral development issues. We would like to continue discussions 

with the sponsors and the subcommittee on how best to achieve the 

intent of this bill while minimizing the cost to taxpayers and ensuring continued protection of important environmental and cultural 

resources. 

Prior to 1976, the Secretary was authorized by the Mineral 

Leasing Act to issue permits to prospect for coal on public land in 

areas where no known coal deposit existed. And if commercial 

quantities of coal were demonstrated, permittees could file a preference right lease application, or a PRLA, to develop the coal. 

In 1976, this authority was repealed and the BLM began working to process existing valid PRLAs. Currently, only 11 PRLAs remain, and they are in northern New Mexico just outside Chaco 

Cultural Natural Historical Park. This area has significant environmental, cultural, and other important resources, including 

Wilderness Study Area and areas of critical environmental concern. 

The BLM has worked with the holder of the PRLAs on a settlement agreement which would exchange 11 PRLAs for an equal 

value in Federal bidding credits elsewhere. 

H.R. 5176 provides the authority to ensure that all aspects of 

the exchange could be completed. The Department notes that the 

land currently encumbered by the PRLAs have been selected by the 

Navajo Nation under the Navajo-Hopi Land Settlement Act. The 

Navajo Nation has sought to deselect these lands and select others, 

but is unable to complete the action without further legislation. 

In order to ensure that the environmental, cultural, and other 

important resources in this area are fully protected, the Department encourages Congress to include the authority for the Navajo 

Nation to deselect lands in this legislation. Should that occur, the 

BLM would welcome the opportunity to manage these lands to protect the significant and important values. 

We look forward to continuing to work with the sponsors to 

achieve the goals of H.R. 5176. Thank you for the opportunity to 

present our testimony. I am happy to answer any questions you 

may have. 

Dr. BENISHEK. Thank you, Mr. Nedd. 

[The prepared statement of Mr. Nedd follows:] 

32 

PREPARED STATEMENT OF MICHAEL NEDD, ASSISTANT DIRECTOR FOR ENERGY, 

MINERALS & REALTY MANAGEMENT, BUREAU OF LAND MANAGEMENT, DEPARTMENT

OF THE INTERIOR ON H.R. 5176 

Thank you for the opportunity to present the views of the Department of the 

Interior (Department) on H.R. 5176, which would authorize the Secretary of the 

Interior (Secretary) to retire a certain type of Federal coal lease rights—‘‘preference 

right lease applications’’ or PRLAs—in exchange for coal bidding rights elsewhere 

on Federal lands. The Department appreciates the work of the co-sponsors and supports the goal of seeking resolution to long-standing unresolved mineral development issues. We would like to continue discussions with the sponsors and the 

subcommittee on how best to achieve the intent of this bill while minimizing the 

cost to taxpayers and ensuring continued protection of environmental and cultural 

resources. 

BACKGROUND

Prior to 1976, the Secretary was authorized by the Mineral Leasing Act (MLA) 

to issue permits to prospect for coal on public lands in areas where no known coal 

deposits existed. If coal was discovered, the prospector could file a preference right 

lease application (PRLA). If commercial quantities of coal were demonstrated, the 

prospector was entitled to a ‘‘preference right lease,’’—a noncompetitive, exclusive 

right to mine coal on these public lands for an initial 20-year term. The Federal 

Coal Leasing Amendments Act of 1976 repealed the Secretary’s authority to issue 

prospecting permits and terminated the preference right leasing program, subject to 

valid existing rights. However, prospecting permittees who have filed a PRLA prior 

to 1976 continue to be recognized as having valid existing rights that require adjudication by the BLM. In 1987, the BLM promulgated regulations exclusively for 

processing these pre-1976 PRLAs. 

To date, all PRLAs have been processed, except for 11 held by the Ark Land 

Company (Ark Land), covering approximately 21,000 acres in northern New Mexico. 

These PRLAs are within 3 miles of Chaco Culture National Historic Park and in 

the Ah-Shi-Sle-Pah Wilderness Study Area (WSA), Fossil Forest Research Natural 

Area, and North Road and Ah-Shi-Sle-Pah Road Areas of Critical Environmental 

Concern (ACECs). These areas have cultural archaeological, paleontological, primitive recreational, and environmental significance, and are not an ideal site for commercial development of the coal. In the interest of protecting the important cultural 

and environmental resources in the area, in 2012, after extensive investigation, litigation and negotiation, the BLM New Mexico State Office and Ark Land signed a 

settlement agreement that would seek to exchange the 11 PRLAs for an equal value 

in Federal bidding credits for Federal coal within the borders of the state of 

Wyoming. While this exchange can currently be completed through existing regulations (43 CFR Subpart 3435), further authority is necessary to meet a condition of 

the settlement agreement that requires taxpayers pay the share of sums that would 

have otherwise been paid from bonus bid receipts to the state of Wyoming or any 

other party under the bid-sharing formula. 

In addition, as part of the Navajo-Hopi Land Settlement Act (P.L. 93–531), the 

Navajo Nation selected approximately 12,000 acres of lands which overlap the 

PRLAs and are currently included in protected areas such as the Ah-Shi-Sle-Pah 

WSA and the North Road and the Ah-Shi-Sle-Pah Road ACECs. These selections 

have not yet been completed due to the encumbrance of the PRLAs. The Navajo 

Nation has sought to ‘‘deselect’’ these lands and select others, but is unable to complete the action without further legislation. In the absence of new legislative authority, the sensitive lands currently under discussion would continue to be available 

for development. 

H.R. 5176

H.R. 5176 would authorize the Secretary of the Interior to retire coal PRLAs by 

issuing bidding rights in exchange for relinquishment of the PRLAs. The bill would 

define a ‘‘bidding right’’ as an appropriate legal instrument that may be used in lieu 

of a monetary payment for a bonus bid in a coal sale under the MLA, or as monetary credit against a rental or royalty payment due under a Federal coal lease. 

Thus, a bidding right could be used in lieu of cash for part or all of a winning bonus 

bid in a subsequent coal lease sale, or for rental or royalty owed under a Federal 

coal lease. H.R. 5176 further provides for payment of 50 percent of the amount of 

the bidding right used to the state in which the newly issued coal lease—or in which 

the lease under which a royalty payment is made—is located. The payments to the 

state would be made from revenues received under the MLA that otherwise would 

33 

be deposited to miscellaneous receipts. Under H.R. 5176, bidding rights would be 

fully transferable to any other person and the bidding rights holder would have to 

notify the Secretary of the transfer. The bidding rights would terminate after 5 

years, unless the rights could not be exercised within the 5-year period under 

certain conditions outlined in the bill. 

The Department supports the goal of H.R. 5176 to provide legislative authority 

for a solution to the long-standing coal PRLA issue in northern New Mexico. However, the Administration is concerned about the likely costs of this legislation as 

drafted. Based on the terms of the legislation, and in the context of the Ark Land 

settlement agreement, it appears these costs would likely fall between $53 million 

and $240 million, which provides challenges for identifying suitable offsets. If enacted, the BLM, consistent with 43 CFR Subpart 3435, using standard appraisal 

practices and in coordination with the Department’s Office of Valuation Services, 

will determine on the fair market value of the resources. 

In addition, the Department notes that if the bill is enacted as currently written 

and the PRLAs are relinquished, the Navajo Nation would hold the 12,000 selected 

acres in fee, and would have the authority to develop the resources—including 

coal—as the tribe sees fit. The Navajo Nation has indicated that it is interested in 

deselecting these lands and selecting other lands to fulfill its entitlement. If legislation is to be enacted to resolve the status of PRLAs in this area, the Department 

would like to ensure that the resolution also provides for permanent protection of 

these resources from future impacts. 

In order to ensure that the cultural and environmental resources in this area are 

fully protected, the Department encourages the Congress to work with the Navajo 

Nation to effectuate the deselection of these lands as part of this legislation. Should 

this deselection occur, the land would revert to the BLM. If that occurs, the BLM 

would welcome the opportunity to manage these valuable lands to protect their resource values in a manner consistent with the Ah-Shi-Sle-Pah WSA, and the North 

Road and the Ah-Shi-Sle-Pah Road ACECs. 

CONCLUSION

Thank you for this opportunity to present testimony on H.R. 5176. The Department thanks the sponsors for their dedication to this issue. We look forward to 

continuing to work with the sponsors to achieve these goals. 

Dr. BENISHEK. Thank you all for your statements. 

We will begin the questioning now. Members are limited to 5 

minutes for their questions, but we may have an additional round 

as needed. 

I recognize myself for 5 minutes for my questions. And members 

of the committee may have additional questions for the record, and 

I will ask you to respond to those in writing. 

Mr. Pagano, thanks for taking time out of your schedule to be 

here today to tell us a little bit more about your company. I am 

interested in how this Michigan Potash Company came into being. 

So I have a couple questions. 

How did you find these cores? I mean, can you kind of lead me 

to the path of how did you form Michigan Potash and then find the 

core? Tell me about how this all started. 

Mr. PAGANO. When we began this project, the core wasn’t fully 

cataloged yet at MGRRE, and we had gone down the road to very 

quietly secure an asset that once was secured by Pittsburg Plate 

and Glass, a potash producer at the time, in 1980. 

Following resecuring that asset, then it came to our attention 

that the core was fully cataloged now at MGRRE and quickly 

shortcutted our path toward realizing the impact of the potash deposits in Michigan. So we are a relatively young company. 

Dr. BENISHEK. Where did you find the cores? Where were they 

at when you came into the picture? 

34 

Mr. PAGANO. Well, the cores were underneath Bill’s house. So 

they were already at MGRRE. So the geological work that we had 

done began prior to us becoming aware of the availability of the 

core. 

Dr. BENISHEK. So it must have been kind of exciting to realize 

that you had discovered $65 billion worth of potash there. 

How did you feel when that happened? Did you check your 

numbers? 

Mr. PAGANO. You know, potash is an industrial mineral. When 

it does occur, it occurs en masse. And so initially, I had been speaking to the prior geologist that was familiar with this core when it 

was extracted. And he had told me that, when you see it, you will 

be astounded, and I didn’t really believe him. 

When we stepped into MGRRE, I quite frankly didn’t believe it 

when we did pull it out. I was astounded. 

And Bill Harrison, he picked up a core and he says, ‘‘Ted, I can 

look at this and it looks like it is about 60 percent potash.’’ 

And I said, ‘‘Bill, it is not. That doesn’t exist.’’ 

And he said, ‘‘It looks to me like it is 60 percent KCL, maybe 70 

percent.’’ 

I said, ‘‘No. I doubt it.’’ 

We sent it off to the Saskatchewan Research Council, verified 

that it was, in fact, some of the highest grade, cleanest potash that 

exists in the world. 

Dr. BENISHEK. I have a question for some of the other folks 

there. 

How could this program be improved? I mean, it seems to me 

this is pretty valuable data. It is really expensive to collect, and I 

think it provides valuable information that would benefit our society for centuries. 

So maybe each of you could just give me what you think is the 

most important thing that we should try to improve with the 

program. 

Mr. Arthur. 

Mr. ARTHUR. Thank you, Congressman. Can you hear me all 

right? 

Dr. BENISHEK. Yes. 

Mr. ARTHUR. OK. Well, the program, which has been going on 

since 2007 with regard to funding, all of the infrastructure is set 

up. 

The U.S. Geological Survey has done a great job administering 

the program, building the national geological data catalog into 

which all of this information will flow, facilitated inventory of all 

of the geoscience data collections in the states that participated. It 

would be good to see all states in the country participate. 

But, furthermore, all of the groundwork is laid. The two gaps are 

the fact that there are a lot of facilities that are hitting a wall, literally, with regard to their collections and they need to expand. 

Florida, for example, is addressing this and we are buying maybe 

another 10 or 15 years of core storage, but that doesn’t address the 

paper records and the digitizing and georeferencing of all of this 

other information. 

35 

So the bottom line is to just simply continue the work and increase the funding. And that, to me, would be the primary takehome message is the appropriation. 

Dr. BENISHEK. Mr. Gooding, do you have an opinion other than 

the funding? 

Mr. GOODING. Yes, I have been in charge of the facility in 

Kentucky for the last 37 years, and during that time, I have traveled to 35 facilities, both private, Federal and state, from Canada 

all the way to Texas, looking at their facilities. And if there is one 

thing each repository in the country has in common, it is that they 

are out of space. They are completely out of space. 

In Kentucky, we are stacking pallets three, four, six high in 

rows. So when someone needs to see the collection in a particular 

row, maybe 20 pallets have to be pulled out just to access one well. 

So with the funding that the states have been getting from the 

Geological Survey and from this program over the last few years, 

it went to do rescue collections or repair or to identify collections. 

But the states now need more funding to do expansion, you know, 

whether it is Alaska or Florida—— 

Dr. BENISHEK. Right. 

Mr. GOODING [continuing]. All over the country. I was in Austin 

at the Survey there, and they are pretty much out of room, too. 

Dr. BENISHEK. All right. Thank you. 

And I am over my time. 

But I would like to recognize my colleague from Wyoming, Mrs. 

Lummis. 

Mrs. LUMMIS. And I would like to compliment the Chairman on 

your absolutely beautiful voice, especially when you hook it up to 

a microphone. You should be in radio, not in Congress. 

You know, Mr. Nedd, I have to tell you, I have been here long 

enough to know that, when the Administration comes in with a 

statement that says we would like to continue to work with the 

sponsors, that that is code, and that is code for, ‘‘We don’t like this 

bill, but we don’t want to say it in public.’’ 

It is a little bit like me being a parent and, when my daughter 

would ask me for something, I would say, ‘‘We will see.’’ And it 

didn’t take her long to figure out that ‘‘We will see’’ meant I am 

just trying to put this off, I don’t want to talk about it right now, 

but I am probably not too keen on this idea. 

What is the hang-up here? 

Mr. NEDD. Congresswoman, certainly, as I said in my statement, 

we want to work with the committee to ensure we understand how 

the funding will be made for this. And the BLM worked for this 

settlement and, as you know, the BLM was involved—or the 

Department was involved in the drafting service. 

So again, we believe the bill is heading in the right step and we 

want to achieve the goal, but we just feel there are a few things 

that need to be discussed with the sponsors and the committee. 

Mrs. LUMMIS. OK. So that means—well, I will tell you how the 

funding works, because I am trying to be a good guy here. 

This bill doesn’t have anything to do with Wyoming. This has to 

do with trying to help out the Navajo and trying to get Ark Land 

Company’s property rights monetized. 

36 

It will also help prevent a claim for a property rights taking. And 

that could be very expensive for the Department because, if Ark 

Land Company chooses to sue on a takings claim, the amount that 

they can quantify might even exceed the negotiated value of the 

bidding credits under the settlement. 

Now, you will recall, that is where I come in. These bidding credits are coming out of my state. So when you say the money is coming from Federal land elsewhere, it is coming from—I am the 

‘‘elsewhere.’’ It is from Wyoming. 

So my role here is just to try to be a good guy and help the 

Navajo and the Ark Land Company settle this matter and get on 

with this agreement. 

Now, let me ask you, Mr. Phelps, do you think this settlement 

agreement is an equitable solution for the Federal Government, 

Ark Land, the Navajo, and the states impacted? 

Mr. PHELPS. Thank you for your question. 

The position of the Navajo Nation basically goes back to the 

Settlement Act of 1974, where the Federal Government committed 

to provide unencumbered lands and lands that were taken. So—— 

Mrs. LUMMIS. I appreciate that, and I get that, and I am sorry 

to interrupt you. I was kind of hoping that you could just say ‘‘yes’’ 

or ‘‘no.’’ 

Can you say ‘‘yes’’ or ‘‘no’’? Do you think this is an equitable 

deal? 

Mr. PHELPS. Well, the value question, basically, is of equal value. 

Mrs. LUMMIS. Thank you. Perfect. 

Mr. PHELPS. This must be of equal value. 

Mrs. LUMMIS. Like that. OK. 

Mr. Nedd, do you disagree with that? 

Mr. NEDD. Congresswoman, again, we entered into a settlement, 

and under the settlement term we worked with Arch Coal to put 

forward some framework on how we can value the coal. 

So, again, we believe the goals are right of this bill. And, again, 

the Administration just wants to make certain it works with the 

sponsor to minimize the impact on taxpayers. 

Mrs. LUMMIS. OK. I am one of the sponsors. The other sponsor 

is not here. 

Mr. NEDD. So we—— 

Mrs. LUMMIS. So let’s talk. Here we are. 

Mr. NEDD. We would love to work with you, Congresswoman, 

and we certainly can do it here or we can come back and visit with 

you. But we would love to discuss with the sponsors how to do that 

and the committee. 

Mrs. LUMMIS. Well, you know what? Time is kind of a’wasting. 

You know, we are down to the wire here. So my time is expired. 

But, man, I would just like to get this done. 

Dr. BENISHEK. I would like to maybe try to finish it off. I agree 

with Mrs. Lummis. 

What is it you want? 

I can give you more time, Mrs. Lummis. 

Mr. NEDD. As we said, the Administration would certainly like 

to work with the committee to figure out how to minimize—— 

Dr. BENISHEK. Well, she’s asking what exactly, what are you 

asking for? 

37 

Mr. NEDD. Well, Congressman, there is a range that has came 

up between $53 million and $240 million. And so the Administration would like to work through the committee to figure out how 

to minimize the cost to the taxpayer—$53 million to $240 million 

is a wide variety—and then to figure out how to minimize the taxpayers’ impact. And I think that is the accent here. 

The second accent is to really ensure Congress work with the 

Navajo Nation so they can have a way to deselect the lands. Those 

are the two major accents of the bill, or the Administration is 

asking. 

Mrs. LUMMIS. How does delaying this bill moving forward advance that conclusion? Would you like to have the bill written so 

it uses a specific number? 

Mr. NEDD. Again, Congresswoman, I believe it is going to take 

some discussion. But certainly $53 million always sound better 

than $240 million. 

Second thing. Would like to ensure there is some way the bill 

takes into account how to allow the Navajo to deselect the land so, 

therefore, the Interior would be able to manage these lands for its 

important environmental and cultural resources. 

So, again, I believe those are the major parts. 

Mrs. LUMMIS. Fair enough, Mr. Nedd. You answered my question. And I am happy to work with you. And I appreciate getting 

down to the specifics here. So thanks. 

Mr. Chairman, I yield back. And thank you for giving me the 

opportunity to explore it right here. 

Dr. BENISHEK. Might as well try to finish it off a little bit. Yes. 

Mrs. LUMMIS. OK. Thank you very much. 

Dr. BENISHEK. Well, one final order of business. 

I ask unanimous consent to enter into the record a submission 

in support of H.R. 5066 from the Michigan Geological Survey, the 

Michigan Geological Repository for Research and Education. 

And hearing no objection, so ordered. 

If there is no other business, without objection, the committee is 

adjourned. 

[Whereupon, at 2:59 p.m., the subcommittee was adjourned.] 

[ADDITIONAL MATERIALS SUBMITTED FOR THE RECORD]

PREPARED STATEMENT OF KEVIN GALLAGHER, U.S. GEOLOGICAL SURVEY, 

U.S. DEPARTMENT OF THE INTERIOR ON H.R. 5066 

Thank you, Mr. Chairman, for inviting the Department of the Interior to provide 

its views on H.R. 5066, the Data Preservation Act of 2014, to reauthorize the 

National Geological and Geophysical Data Preservation Program through 2019. 

The Energy Policy Act of 2005 established the National Geological and 

Geophysical Data Preservation Program (NGGDPP) and outlined the following 

goals: 

• Archive geological, geophysical, and engineering data, maps, well logs, and 

samples; 

• Provide a national catalog of archived materials; and 

• Provide technical and financial assistance to state geological surveys and 

relevant Department of the Interior bureaus for archived materials. 

38 

Through this partnership with the state geological surveys, the Department of the 

Interior plays a leading role in the Federal collection, management and preservation 

of geological and geophysical data. 

Since 2007 the NGGDPP, administered by the U.S. Geological Survey, has provided 44 states with almost $4.6M which, when matched by the states, amounts to 

over $9M invested in the rescue and preservation of geoscience collections. These 

preserved data have been used in discoveries that have brought significant benefit 

to local and state economies. In addition, over 2.6M geoscience data records have 

been entered into the National Digital Catalog, an Internet-accessible library describing the geologic collections located in Federal and state repositories. 

There are numerous examples of Federal and state partnerships that we have 

funded via this program, and we would like to highlight three of those. 

• In 2009, the Michigan Geological Survey received Program funds to prepare 

accurate inventories of rescued core from western Michigan. A search of this 

inventory by a potash company scientist revealed a large deposit of high 

grade potassium chloride, a critical ingredient in fertilizer. In September 

2013, this deposit was estimated to be worth $65M, and if mined, would 

create an estimated 300 jobs. 

• Most of the characterization work for tar sand deposits in western Kentucky 

took place in the early 1900s, with a second brief round of interest after the 

1974 Arab oil embargo. Using funds from this program, the Kentucky 

Geological Survey was able to preserve these historical tar sand cores that 

had been slated for disposal. Inspection of samples in these cores by exploration geologists led to the initiation of a $5M exploration program that culminated in a proven deposit in Kentucky. 

• Last, preservation of geological and geophysical data and samples has proven 

invaluable in the continued research on the Bakken shale from the Williston 

Basin in North Dakota and Montana. The USGS Core Research Center in 

Denver houses core samples from this region. Over the last 10 years, these 

well-preserved cores have been accessed providing many private, academic 

and Federal research scientists with information key in the discovery and advancement of the existing and potential energy resources in the Williston 

Basin. 

The Department of the Interior supports H.R. 5066, the Data Preservation Act of 

2014, in order to provide continued funding for state and Federal partnerships ensuring the rescue and continued preservation of geological and geophysical samples 

and data. We thank Representative Benishek for introducing this legislation. 

Preserving endangered geoscience collections is significantly more cost effective 

than recollecting these samples and data. Properly housing, inventorying and 

curating these collections, as we have identified for you today, provides an invaluable resource that underpins a wide variety of research, which can lead to important 

discoveries, new jobs and a stronger economy. 

Mr. Chairman, again, we thank you for this opportunity. We will be pleased to 

respond to any questions you may have. 

39 

SUBMISSION FOR THE RECORD IN SUPPORT OF H.R. 5066 FROM THE MICHIGAN

GEOLOGICAL SURVEY, THE MICHIGAN GEOLOGICAL REPOSITORY FOR RESEARCH AND

EDUCATION


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