Thompson Divide Withdrawal and Protection Act of 2017

To provide for the withdrawal and protection of certain Federal land in the State of Colorado, and for other purposes. 1. Short title This Act may be cited as the Thompson Divide Withdrawal and Protection Act of 2017 2. Findings and purposes (a) Findings Congress finds that— (1) the Thompson Divide in western Colorado provides rural character, a robust agriculture-based economy, and outstanding recreational and sporting opportunities to the public; (2) the Thompson Divide— (A) provides important spring and summer grazing land for historical ranching operations; and (B) was described by President Theodore Roosevelt as a great, wild country (3) the Interior Board of Land Appeals has determined that certain mineral leases previously issued within the Thompson Divide are legally deficient; (4) the remedy to the deficiencies described in paragraph (3) may result in protracted legal action and uncertainty for surrounding communities and industry; and (5) the communities affected by the leases have requested a solution that— (A) addresses the leasing controversy; and (B) provides long-term certainty for management of Federal land within the Thompson Divide and the surrounding landscape. (b) Purposes The purposes of this Act are— (1) to provide for the cancellation of certain Federal mineral leases in the Thompson Divide; (2) subject to valid existing rights, to withdraw certain Federal land in the Thompson Divide area from future mineral and other disposal laws; and (3) to provide a market-based form of reimbursement for cancelled leases. 3. Definitions In this Act: (1) North thompson divide lease The term North Thompson Divide Lease (2) Secretary The term Secretary (3) South thompson divide lease The term South Thompson Divide Lease (4) State The term State (5) Thompson divide map The term Thompson Divide map Greater Thompson Divide Area Map (6) Thompson divide withdrawal and protection area The term Thompson Divide Withdrawal and Protection Area Thompson Divide Withdrawal and Protection Area (7) Wolf creek storage field development rights (A) In general The term Wolf Creek Storage Field development rights Wolf Creek Storage Agreement (B) Exclusions The term Wolf Creek Storage Field development rights 4. Thompson Divide Withdrawal and Protection Area (a) Withdrawal Subject to valid existing rights, the Thompson Divide Withdrawal and Protection Area is withdrawn from all forms of— (1) entry, appropriation, and disposal under the public land laws; (2) location, entry, and patent under the mining laws; and (3) operation of the mineral leasing, mineral materials, and geothermal leasing laws. (b) Surveys The exact acreage and legal description of the Thompson Divide Withdrawal and Protection Area shall be determined by surveys approved by the Secretary, in consultation with the Secretary of Agriculture. 5. North Thompson Divide Lease exchange (a) In general Except as provided in subsection (b), in exchange for the relinquishment by a leaseholder of all North Thompson Divide Leases of the leaseholder, the Secretary may issue to the leaseholder credits for bid, royalty, or rental payments due under Federal oil and gas leases on Federal land in the State. (b) Exception If a North Thompson Divide Lease has been cancelled by the Secretary before the date of enactment of this Act and the holder of the cancelled lease has been compensated for the cancelled lease, the Secretary may not issue credits for bid, royalty, or rental payments for the cancelled lease under subsection (a). (c) Amount of credit (1) In general The amount of the credits issued to a holder of any North Thompson Divide Leases relinquished under subsection (a) shall— (A) be equal to the sum of— (i) the amount of the bonus bids paid for the applicable North Thompson Divide Leases; (ii) the amount of any rental paid for the applicable North Thompson Divide Leases as of the date on which the holder of the applicable North Thompson Divide Leases notifies the Secretary of the decision to relinquish the applicable North Thompson Divide Leases; and (iii) the amount of any expenses incurred by the holder of the applicable North Thompson Divide Leases in the preparation of drilling permits, sundry notices, or other related submissions in furtherance of the development of the applicable North Thompson Divide Leases as of July 29, 2016, including any expenses related to the preparation of analyses under the National Environmental Policy Act of 1969 42 U.S.C. 4321 (B) require the approval of the Secretary. (2) Exclusion The amount of a credit issued under subsection (a) shall not include any expenses paid by the holder of a North Thompson Divide Lease for legal fees or related expenses for legal work with respect to a North Thompson Divide Lease. (d) Cancellation The North Thompson Divide Leases, on relinquishment and without further action by the Secretary, shall— (1) be permanently cancelled; and (2) not be reissued. (e) Conditions (1) Applicable law Except as otherwise provided in this section, the exchange under this section shall be conducted in accordance with— (A) this Act; and (B) other applicable laws (including regulations). (2) Acceptance of credits The Secretary shall accept credits issued under subsection (a) in the same manner as cash for the payments described in that subsection. (3) Applicability The use of the credits issued under subsection (a) shall be subject to the laws (including regulations) applicable to the payments described in that subsection, to the extent the laws are consistent with this section. (4) Treatment of credits All amounts in the form of credits issued under subsection (a) accepted by the Secretary shall be considered to be amounts received for the purposes of— (A) section 35 of the Mineral Leasing Act ( 30 U.S.C. 191 (B) section 20 of the Geothermal Steam Act of 1970 ( 30 U.S.C. 1019 6. South Thompson Divide Lease exchange (a) In general Except as provided in subsection (b), in exchange for the relinquishment by a leaseholder of all South Thompson Divide Leases of the leaseholder, the Secretary may issue to the leaseholder credits for bid, royalty, or rental payments due under Federal oil and gas leases on Federal land in the State. (b) Exception If a South Thompson Divide Lease has been cancelled by the Secretary before the date of enactment of this Act and the holder of the cancelled lease has been compensated for the cancelled lease, the Secretary may not issue credits for bid, royalty, or rental payments for the cancelled lease under subsection (a). (c) Amount of credit (1) In general The amount of the credits issued to the holder of any South Thompson Divide Leases relinquished under subsection (a) shall— (A) be equal to the sum of— (i) the amount of the bonus bids paid for the applicable South Thompson Divide Leases; (ii) the amount of any rental paid for the applicable South Thompson Divide Leases as of the date on which the holder of the applicable South Thompson Divide Leases notifies the Secretary of the decision to relinquish the applicable South Thompson Divide Leases; (iii) the amount of any expenses incurred by the holder of the applicable South Thompson Divide Leases in the preparation of drilling permits, sundry notices, or other related submissions in furtherance of the development of the applicable South Thompson Divide Leases as of July 29, 2016, including any expenses related to the preparation of analyses under the National Environmental Policy Act of 1969 42 U.S.C. 4321 (iv) the amount of any expenses incurred by the holder of the applicable South Thompson Divide Leases in the purchasing of rights and the preparation of drilling permits, sundry notices, or other related submissions in furtherance of the development of the Wolf Creek Storage Field development rights; and (B) require the approval of the Secretary. (2) Exclusion The amount of a credit issued under subsection (a) shall not include any expenses paid by the holder of a South Thompson Divide Lease for legal fees or related expenses for legal work with respect to a South Thompson Divide Lease. (d) Cancellation The South Thompson Divide Leases, on relinquishment and without further action by the Secretary, shall— (1) be permanently cancelled; and (2) not be reissued. (e) Conditions (1) Applicable law Except as otherwise provided in this section, the exchange under this section shall be conducted in accordance with— (A) this Act; and (B) other applicable laws (including regulations). (2) Acceptance of credits The Secretary shall accept credits issued under subsection (a) in the same manner as cash for the payments described in that subsection. (3) Applicability The use of the credits issued under subsection (a) shall be subject to the laws (including regulations) applicable to the payments described in that subsection, to the extent the laws are consistent with this section. (4) Treatment of credits All amounts in the form of credits issued under subsection (a) accepted by the Secretary shall be considered to be amounts received for the purposes of— (A) section 35 of the Mineral Leasing Act ( 30 U.S.C. 191 (B) section 20 of the Geothermal Steam Act of 1970 ( 30 U.S.C. 1019 (f) Wolf creek storage field development rights (1) Conveyance to secretary As a condition precedent to the relinquishment of the South Thompson Divide Leases, a leaseholder shall permanently relinquish, transfer, and otherwise convey to the Secretary, in a form acceptable to the Secretary, all Wolf Creek Storage Field development rights of the leaseholder. (2) Limitation of transfer Any interest acquired by the Secretary under paragraph (1) shall be held in perpetuity and not transferred, reissued, or otherwise used for mineral extraction. 7. Methane leasing in the Lower North Fork Valley (a) Inventory Not later than 1 year after the date of enactment of this Act, the Secretary shall complete, or shall collaborate with agencies of the State or with institutions of higher education in the State to complete, an inventory of all significant emissions of methane in the North Fork Valley, Colorado, including methane emissions from active, inactive, and abandoned coal mines. (b) Leasing program (1) In general Not later than 1 year after the date of completion of the inventory required under subsection (a), the Secretary shall carry out, to the extent permissible under applicable law, a program to offer for lease Federal methane from active, inactive, and abandoned coal mines, subject to valid existing rights. (2) Conditions The program carried out under paragraph (1) shall— (A) only include methane that can be collected and transported in a manner that does not— (i) endanger the safety of coal mine workers; or (ii) unreasonably interfere with ongoing operations at coal mines; and (B) provide for the owners or operators of mines with leases that overlap potential methane leases under the program carried out under paragraph (1) to elect to remove the areas from potential methane leasing under the program if the owners or operators determine that the conditions described in subparagraph (A) are not met. (c) Coal mine methane electrical power generation demonstration program (1) In general Not later than 2 years after the date of completion of the inventory required under subsection (a), the Secretary shall enter into discussions with the eligible entities described in paragraph (2) to develop a program to facilitate the sale and delivery of methane that is subject to subsection (b), but which has not been leased under that subsection, to one or more of the eligible entities to demonstrate the feasibility, cost-effectiveness, and environmental benefits of producing electrical power from methane from coal mines. (2) Description of eligible entity An eligible entity referred to in paragraph (1) is a rural electric utility, energy cooperative, or municipal utility with service area boundaries within 100 miles of Paonia, Colorado. (3) Establishment of pricing In facilitating the delivery of methane under paragraph (1), the Secretary shall establish pricing for the sale and delivery of methane that is sufficient to reimburse all costs to the Secretary for the implementation and management of the demonstration program developed under that paragraph. (4) Contracts The Secretary may contract with the State or one or more institutions of higher education in the State to provide services to the eligible entities described in paragraph (2) to facilitate the program developed under paragraph (1), with all related costs to be included in the pricing established under paragraph (3). 8. Effect Unless expressly provided in this Act, nothing in this Act— (1) expands, diminishes, or impairs any valid existing mineral leases, mineral interest, or other property rights wholly or partially within the Thompson Divide Withdrawal and Protection Area, including access to the leases, rights, or land in accordance with applicable Federal, State, and local laws (including regulations); (2) prevents the capture of methane from active, inactive, or abandoned coal mines covered by this Act, in accordance with applicable law; or (3) prevents access to, or the development of, any new or existing coal mine or lease in Delta or Gunnison County, Colorado.

Summary: Thompson Divide Withdrawal and Protection Act of 2017 This bill withdraws the Thompson Divide Withdrawal and Protection Area in Colorado from: (1) entry, appropriation, and disposal under the public land laws; (2) location, entry, and patent under the mining laws; and (3) operation of the mineral leasing, mineral materials, and geothermal leasing laws. In exchange for the relinquishment of all of the North Thompson Divide leases or South Thompson Divide leases of a leaseholder, the Department of the Interior may issue to such leaseholder credits for bid, royalty, or rental payments due under federal oil and gas leases on federal land in Colorado. Upon relinquishment, such leases shall be permanently canceled and shall not be reissued. As a condition for relinquishing South Thompson Divide leases, a leaseholder must permanently relinquish, transfer, and otherwise convey to Interior all of its Wolf Creek Storage Field development rights, excluding any storage rights or related activities within the area. Interior shall: (1) complete, or shall collaborate with state agencies or institutions of higher education in Colorado to complete, an inventory of all significant methane emissions in the North Fork Valley, including emissions from active, inactive, and abandoned coal mines; (2) carry out a program to lease federal methane from such mines; and (3) enter into discussions to develop a program to facilitate the sale and delivery of such methane that has not been leased to at least one rural electric utility, municipal utility, or energy cooperative with service area boundaries within 100 miles of Paonia, Colorado, to demonstrate the feasibility, cost-effectiveness, and environmental benefits of producing electrical power from methane collected from coal mines.