II 

108TH CONGRESS 

2D SESSION S. 2790 

To provide for the conveyance of certain public land in northwestern New 

Mexico by resolving a dispute associated with coal preference right lease 

interests on the land. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 10, 2004 

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

to the Committee on Indian Affairs 

A BILL

To provide for the conveyance of certain public land in northwestern New Mexico by resolving a dispute associated 

with coal preference right lease interests on the land.

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Bisti PRLA Dispute 

5 Resolution Act’’. 

6 SEC. 2. WITHDRAWAL OF COAL PREFERENCE RIGHT LEASE 

7 APPLICATIONS. 

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of law, if any of the coal preference right lease appli-
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1 cations captioned NMNM 3752, NMNM 3753, NMNM 

2 3754, NMNM 3755, NMNM 3835, NMNM 3837, NMNM 

3 3918, NMNM 3919, NMNM 6802, NMNM 7235 and 

4 NMNM 8745 are withdrawn by the holder or holders of 

5 the applications, the Secretary of the Interior, acting 

6 through the Bureau of Land Management (referred to in 

7 this Act as the ‘‘Secretary’’), shall issue under section 

8 4(a)(2) to each such holder or holders a certificate of bid9 ding rights (in such form and manner as provided for 

10 under regulations promulgated by the Secretary under the 

11 Mineral Leasing Act (30 U.S.C. 181 et seq.)) that con12 stitutes the combined fair market value, as determined 

13 under section 3, of the coal reserves for each coal pref14 erence right lease application withdrawn by the holder. 

15 (b) RELINQUISHMENT.—The relinquishment of all 

16 rights associated with the coal preference lease applica17 tions withdrawn shall be effective on the date of the 

18 issuance of the certificate of bidding rights under section 

19 4(a)(2). 

20 (c) NO ADJUDICATION.—The withdrawals and 

21 issuances required under subsection (a) shall occur with22 out any further adjudication of coal preference right lease 

23 applications by the Secretary. 
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1 SEC. 3. METHOD FOR DETERMINING FAIR MARKET VALUE. 

2 (a) IN GENERAL.—Notwithstanding any other provi3 sion of law, this section shall apply to the issuance of a 

4 certificate of bidding rights under section 4(a)(2). 

5 (b) VALUE OF COAL RESERVES.— 

6 (1) IN GENERAL.—The fair market value of the 

7 coal reserves of any coal preference right lease appli8 cation withdrawn under section 2(a) shall be deter9 mined by the panel established under paragraph (2). 

10 (2) PANEL.— 

11 (A) ESTABLISHMENT.—Not later than 30 

12 days after the date of enactment of this Act, 

13 the Secretary shall establish a panel to deter14 mine the fair market value of the coal reserves 

15 of any coal preference right lease applications 

16 withdrawn under section 2(a). 

17 (B) MEMBERSHIP.—The panel shall be 

18 composed of 3 representatives, of whom— 

19 (i) 1 representative shall be appointed 

20 by the Secretary; 

21 (ii) 1 representative shall be appointed 

22 by the holder of the preference right lease 

23 application; and 

24 (iii) 1 representative shall be ap25 pointed by the Governor of the State of 

26 New Mexico. 
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1 (3) MINERAL APPRAISER.—The Secretary shall 

2 contract with a qualified coal reserve appraiser to 

3 assist the panel established under paragraph (2)(A) 

4 in determining the fair market value of a coal re5 serve. 

6 (4) SUPPLEMENTAL INFORMATION.—In deter7 mining the fair market value of a coal reserve, the 

8 panel may supplement any information provided to 

9 the panel, as the panel determines to be appropriate. 

10 (5) DETERMINATION.—Not later than 75 days 

11 after the date on which the panel is established 

12 under paragraph (2)(A), the panel shall submit to 

13 the Secretary the determination of the panel with re14 spect to the fair market value of a coal reserve of 

15 any coal preference right lease application with16 drawn by the holder. 

17 SEC. 4. ISSUANCE OF PATENTS TO RELINQUISHED PREF18 ERENCE RIGHT LEASE APPLICATIONS. 

19 (a) IN GENERAL.—Notwithstanding any other provi20 sion of law, not later than 120 days after the withdrawal 

21 of a coal preference right lease application, the Secretary 

22 shall— 

23 (1) issue to the Navajo Nation patents to the 

24 land, including the mineral estate, subject to the 

25 coal preference right lease application withdrawn— 
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1 (A) in full and final satisfaction of the 

2 right of the Navajo Nation to select land in 

3 New Mexico under section 11 of the Navajo–

4 Hopi Land Settlement Act of 1974 (25 U.S.C. 

5 640d–10); and 

6 (B) to facilitate land consolidation and fa7 cilitate mineral development in northwest New 

8 Mexico; and 

9 (2) issue a certificate of bidding rights in the 

10 amount of the fair market value determined under 

11 section 3. 

12 (b) ENFORCEMENT.—The duties of the Secretary 

13 under this section shall be considered nondiscretionary 

14 and enforceable in a mandamus proceeding brought under 

15 section 1361 of title 28, United States Code. 

16 SEC. 5. USE OF EXCHANGE BIDDING RIGHTS. 

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of law— 

19 (1) a certificate of bidding rights issued under 

20 section 4(a)(2) shall— 

21 (A) be subject to such procedures as the 

22 Secretary may establish pertaining to notice of 

23 transfer and accountings of holders and their 

24 balances; 
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1 (B) be transferable by the holder or hold2 ers of the certificate of bidding rights in whole 

3 or in part; and 

4 (C) constitute a monetary credit that, sub5 ject to paragraph (2), may be applied, at the 

6 election of the holder or holders of the certifi7 cate of bidding rights, against— 

8 (i) rentals, advance royalties, or pro9 duction royalties payable to the Secretary 

10 under Federal coal leases; and 

11 (ii) bonus payments payable to the 

12 Secretary in the issuance of a Federal coal 

13 lease or Federal coal lease modification 

14 under the coal leasing provisions of the 

15 Mineral Leasing Act (30 U.S.C. 181 et 

16 seq.); and 

17 (2) in a case in which a certificate of bidding 

18 rights issued under section 4(a)(2) is applied by the 

19 holder or holders of the certificate of bidding rights 

20 as a monetary credit against a payment obligation 

21 under a Federal coal lease, the holder or holders— 

22 (A) may apply the bidding rights only 

23 against 50 percent of the amount payable under 

24 the lease; and 
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1 (B) shall pay the remaining 50 percent as 

2 provided for under the lease in cash or cash 

3 equivalent. 

4 (b) PAYMENT UNDER LEASE OBLIGATIONS.—Any 

5 payment of a Federal coal lease obligation by the holder 

6 or holders of a certificate of bidding rights issued under 

7 section 4(a)(2)— 

8 (1) shall be treated as money received under 

9 section 35 of the Mineral Leasing Act (30 U.S.C. 

10 191); but 

11 (2) shall be credited and redistributed by the 

12 Secretary only as follows: 

13 (A) 50 percent of the amount paid in cash 

14 or its equivalent shall be— 

15 (i) distributed to the State in which 

16 the lease is located; and 

17 (ii) treated as a redistribution under 

18 section 35 of the Mineral Leasing Act (30 

19 U.S.C. 191). 

20 (B) 50 percent of the amount paid through 

21 a crediting of the bidding rights involved shall 

22 be treated as a payment that is subject to redis23 tribution under that section to the Reclamation 
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1 and Miscellaneous Receipts accounts in the 

2 Treasury.

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