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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1170 Reported in Senate (RS)]

                                                       Calendar No. 509

103d CONGRESS

  2d Session

                                S. 1170

                          [Report No. 103-303]

_______________________________________________________________________

                                 A BILL

  To amend the Mineral Leasing Act to provide for leasing of certain 
                    lands for oil and gas purposes.

_______________________________________________________________________

                              July 7, 1994

                        Reported with amendments

                                                       Calendar No. 509
103d CONGRESS
  2d Session
                                S. 1170

                          [Report No. 103-303]

  To amend the Mineral Leasing Act to provide for leasing of certain 
                    lands for oil and gas purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                June 29 (legislative day, June 22), 1993

 Mr. Campbell introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

                              July 7, 1994

    Reported, under authority of the order of the Senate of June 27 
   (legislative day, June 7), 1994, by Mr. Johnston, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL

 
  To amend the Mineral Leasing Act to provide for leasing of certain 
                    lands for oil and gas purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
    Section 1. Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is 
amended by adding the following new subsection at the end thereof:
    ``-(-o-)-(-1-) (p)(1) Authority To Lease.--Notwithstanding any 
other provision of law, the Secretary of the Interior, in consultation 
with the Secretary of Energy, may lease for oil and gas exploration, 
development and production the public domain lands located in Garfield 
County, Colorado, reserved by Executive order of the President dated 
December 6, 1916 (as amended by Executive order of the President dated 
June 12, 1919), and by Executive order of the President dated September 
27, 1924, subject to valid existing rights, and pursuant to the 
requirements of this Act.
    ``(2) Management.--The Secretary of the Interior, through the 
Bureau of Land Management, shall hereafter manage the surface estate in 
the lands covered by this subsection, pursuant to the Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 1701, et seq.), and other 
laws applicable to the public lands.
    -`-`-(-3-) -R-o-y-a-l-t-y-.----A -l-e-a-s-e -o-f -l-a-n-d-s -b-y 
-t-h-e -S-e-c-r-e-t-a-r-y -o-f -t-h-e -I-n-t-e-r-i-o-r -u-n-d-e-r 
-t-h-i-s -s-u-b-s-e-c-t-i-o-n -s-h-a-l-l -b-e -c-o-n-d-i-t-i-o-n-e-d 
-u-p-o-n -t-h-e -p-a-y-m-e-n-t -o-f -a -r-o-y-a-l-t-y -p-u-r-s-u-a-n-t 
-t-o -s-u-b-s-e-c-t-i-o-n -(-b-) -o-f -t-h-i-s -s-e-c-t-i-o-n-, 
-e-x-c-e-p-t -t-h-a-t -t-h-e -S-e-c-r-e-t-a-r-y -m-a-y 
-e-s-t-a-b-l-i-s-h -a -s-l-i-d-i-n-g -s-c-a-l-e -r-o-y-a-l-t-y -o-f 
-n-o-t -l-e-s-s -t-h-a-n -1-2-.-5 -p-e-r -c-e-n-t-u-m -a-n-d -n-o-t 
-m-o-r-e -t-h-a-n -2-5 -p-e-r -c-e-n-t-u-m -i-n -a-m-o-u-n-t -o-r 
-v-a-l-u-e -o-f -t-h-e -p-r-o-d-u-c-t-i-o-n -r-e-m-o-v-e-d -o-r 
-s-o-l-d -f-r-o-m -t-h-e -l-e-a-s-e-.
    ``(3)(A) Subject to the provisions of this paragraph, a lease of 
lands by the Secretary of the Interior under this subsection shall be 
conditioned upon the payment of a royalty pursuant to subsection (b).
    ``(B) The Secretary of the Interior may establish a sliding scale 
royalty of not less than 12.5 percent and not more than 25 percent in 
value of the production removed or sold from a lease under this 
subsection.
    ``(C) The royalty payable to the United States on oil or gas 
produced on said lands, shall be paid in crude oil of a quality 
acceptable to the Secretary of Energy produced on or off the reserve 
and shall be deposited into the Strategic Petroleum Reserve established 
pursuant to the Energy Policy and Conservation Act (42 U.S.C. 6235 et 
seq.): Provided, That 50 percent of the value that the Secretary 
establishes for the royalty oil shall be paid to the State from amounts 
received which otherwise would be deposited to the Treasury as 
miscellaneous receipts under section 35 of this Act, as amended: 
Provided further, That with respect to such royalty oil there shall be 
no payment to the reclamation fund or the Treasury as miscellaneous 
receipts under section 35 of this Act, as amended.
    ``(4) Existing Equipment.--The lease of lands by the Secretary 
under this subsection may include the transfer, at fair market value, 
of wells, gathering lines, and related equipment owned by the United 
States on the lands referenced in paragraph (1) and suitable for use in 
the exploration, development or production of hydrocarbons on such 
-l-a-n-d-s-.-'-'-. lands.
    ``(5) Cost Minimization.--The Secretary of the Interior shall take 
all actions necessary to ensure that the cost of compliance with this 
section is minimized.''.
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