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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1616 Introduced in Senate (IS)]

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCHANGE OF OIL AND GAS LEASES IN THE LEWIS AND CLARK 
              NATIONAL FOREST AND THE FLATHEAD NATIONAL FOREST, STATE 
              OF MONTANA.

    (a) In General.--Notwithstanding any other provision of law, the 
Secretary of the Interior may exchange Federal oil and gas leases that 
are in existence and in good standing as of the date of enactment of 
this Act and are located in the exchange area described in subsection 
(b) for credits that may be used--
            (1) for bids in Federal oil and gas lease sales or for 
        royalty and rentals due under Federal leases in the central and 
        western planning areas of the Gulf of Mexico for leases outside 
        the zone defined and governed by section 8(g)(2) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1337(g)(2)); or
            (2) for bid, royalty, or rental payments due under Federal 
        oil and gas leases on Federal land within the State of Montana.
    (b) Exchange Area.--The exchange area referred to in subsection (a) 
consists of--
            (1) the portions of the Lewis and Clark National Forest and 
        the Flathead National Forest in Flathead County, Glacier 
        County, and Pondera County, Montana (including the area known 
        as the ``Badger-Two Medicine''), as delineated on the map 
        entitled ``Exchange Area Map'' and located in T. 27 N., R. 11 
        W., T. 28 N., R. 10-14 W., T. 29 N., R. 10-16 W., T. 30 N., R. 
        11-13 W., and T. 31 N., R. 12-13 W.; and
            (2) the area covered by Federal oil and gas lease no. MTM-
        53314, in Teton County, Montana.
    (c) Amount.--The amount of the credits shall be based on 
investments made in the acquisition and development of the leases 
before the date of enactment of this Act and agreed to by the Secretary 
of the Interior and the leaseholder.
    (d) Withdrawal From Mineral Laws.--Subject to valid existing rights 
not relinquished, the exchange area described in subsection (b)(1) is 
withdrawn from location and entry under the mining laws and from 
leasing under the mineral leasing laws.
    (e) Effect of Use of Credits.--If a person that receives a credit 
under subsection (a) uses the credit to pay any rental or royalty due 
under any Federal oil and gas lease on Federal land within the State of 
Montana, the Secretary of the Interior shall pay the State of Montana, 
from amounts received from oil and gas leases on Federal land that, but 
for this subsection, would be deposited in the Treasury of the United 
States under section 35 of the Act of February 25, 1920 (commonly known 
as the ``Mineral Lands Leasing Act'') (41 Stat. 450, chapter 85; 30 
U.S.C. 191), the amount that the State would have received under 
applicable law if the amount of the royalty or rental had been paid in 
cash.
                                 <all>
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