II

105TH CONGRESS

2D SESSION S. 1616

To authorize the exchange of existing Federal oil and gas leases in the

State of Montana, located in the Lewis and Clark National Forest

and the Flathead National Forest, for credits in future Federal oil

and gas lease sales in the Gulf of Mexico, and for other purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 5, 1998

Mr. BAUCUS introduced the following bill; which was read twice and referred

to the Committee on Energy and Natural Resources

A BILL

To authorize the exchange of existing Federal oil and gas

leases in the State of Montana, located in the Lewis

and Clark National Forest and the Flathead National

Forest, for credits in future Federal oil and gas lease

sales in the Gulf of Mexico, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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•S 1616 IS

1 SECTION 1. EXCHANGE OF OIL AND GAS LEASES IN THE

2 LEWIS AND CLARK NATIONAL FOREST AND

3 THE FLATHEAD NATIONAL FOREST, STATE

4 OF MONTANA.

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law, the Secretary of the Interior may exchange

7 Federal oil and gas leases that are in existence and in

8 good standing as of the date of enactment of this Act and

9 are located in the exchange area described in subsection

10 (b) for credits that may be used—

11 (1) for bids in Federal oil and gas lease sales

12 or for royalty and rentals due under Federal leases

13 in the central and western planning areas of the

14 Gulf of Mexico for leases outside the zone defined

15 and governed by section 8(g)(2) of the Outer Con16 tinental Shelf Lands Act (43 U.S.C. 1337(g)(2)); or

17 (2) for bid, royalty, or rental payments due

18 under Federal oil and gas leases on Federal land

19 within the State of Montana.

20 (b) EXCHANGE AREA.—The exchange area referred

21 to in subsection (a) consists of—

22 (1) the portions of the Lewis and Clark Na23 tional Forest and the Flathead National Forest in

24 Flathead County, Glacier County, and Pondera

25 County, Montana (including the area known as the

26 ‘‘Badger-Two Medicine’’), as delineated on the map
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1 entitled ‘‘Exchange Area Map’’ and located in T. 27

2 N., R. 11 W., T. 28 N., R. 10–14 W., T. 29 N., R.

3 10–16 W., T. 30 N., R. 11–13 W., and T. 31 N.,

4 R. 12–13 W.; and

5 (2) the area covered by Federal oil and gas

6 lease no. MTM–53314, in Teton County, Montana.

7 (c) AMOUNT.—The amount of the credits shall be

8 based on investments made in the acquisition and develop9 ment of the leases before the date of enactment of this

10 Act and agreed to by the Secretary of the Interior and

11 the leaseholder.

12 (d) WITHDRAWAL FROM MINERAL LAWS.—Subject

13 to valid existing rights not relinquished, the exchange area

14 described in subsection (b)(1) is withdrawn from location

15 and entry under the mining laws and from leasing under

16 the mineral leasing laws.

17 (e) EFFECT OF USE OF CREDITS.—If a person that

18 receives a credit under subsection (a) uses the credit to

19 pay any rental or royalty due under any Federal oil and

20 gas lease on Federal land within the State of Montana,

21 the Secretary of the Interior shall pay the State of Mon22 tana, from amounts received from oil and gas leases on

23 Federal land that, but for this subsection, would be depos24 ited in the Treasury of the United States under section

25 35 of the Act of February 25, 1920 (commonly known
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1 as the ‘‘Mineral Lands Leasing Act’’) (41 Stat. 450, chap2 ter 85; 30 U.S.C. 191), the amount that the State would

3 have received under applicable law if the amount of the

4 royalty or rental had been paid in cash.

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