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on the date on which the Secretary notifies the Committee
on Armed Services of the Senate and the Committee on
National Security and the Committee on Commerce of the
House of Representatives that the Secretary has accepted
an offer under subsection (b)(5) for the sale of that re-
serve.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 7421 the following new
item:
‘‘7421a. Sale of naval petroleum reserves.’’.
Subtitle C—National Defense
Stockpile
SEC. 8021. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL
DEFENSE STOCKPILE FOR DEFICIT REDUC-
TION.
(a) DISPOSALS REQUIRED.—(1) During fiscal year
1996, the President shall dispose of all cobalt contained
in the National Defense Stockpile that, as of the date of
the enactment of this Act, is authorized for disposal under
any law (other than this Act).
(2) In addition to the disposal of cobalt under para-
graph (1), the President shall dispose of additional quan-
tities of cobalt and quantities of aluminum, ferro colum-
bium, germanium, palladium, platinum, and rubber con-
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tained in the National Defense Stockpile so as to result
in receipts to the United States in amounts equal to—
(A) $21,000,000 during the fiscal year ending
September 30, 1996;
(B) $338,000,000 during the five-fiscal year pe-
riod ending on September 30, 2000; and
(C) $649,000,000 during the seven-fiscal year
period ending on September 30, 2002.
(3) The President is not required to include the dis-
posal of the materials identified in paragraph (2) in an
annual materials plan for the National Defense Stockpile.
Disposals made under this section may be made without
consideration of the requirements of an annual materials
plan.
(b) LIMITATION ON DISPOSAL QUANTITY.—The total
quantities of materials authorized for disposal by the
President under subsection (a)(2) may not exceed the
amounts set forth in the following table:
Authorized Stockpile Disposals
Material for disposal
Quantity
Aluminum .............................................................................
62,881 short tons
Cobalt ....................................................................................
42,482,323 pounds con-
tained
Ferro Columbium ..................................................................
930,911 pounds contained
Germanium ...........................................................................
68,207 kilograms
Palladium ..............................................................................
1,264,601 troy ounces
Platinum ...............................................................................
452,641 troy ounces
Rubber ..................................................................................
125,138 long tons
(c) DEPOSIT OF RECEIPTS.—Notwithstanding sec-
tion 9 of the Strategic and Critical Materials Stock Piling
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Act (50 U.S.C. 98h), funds received as a result of the dis-
posal of materials under subsection (a)(2) shall be depos-
ited into the general fund of the Treasury for the purpose
of deficit reduction.
(d) RELATIONSHIP TO OTHER DISPOSAL AUTHOR-
ITY.—The disposal authority provided in subsection (a)(2)
is new disposal authority and is in addition to, and shall
not affect, any other disposal authority provided by law
regarding the materials specified in such subsection.
(e) TERMINATION OF DISPOSAL AUTHORITY.—The
President may not use the disposal authority provided in
subsection (a)(2) after the date on which the total amount
of receipts specified in subparagraph (C) of such sub-
section is achieved.
(f) DEFINITION.—The term ‘‘National Defense
Stockpile’’ means the National Defense Stockpile provided
for in section 4 of the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. 98c).
TITLE IX—COMMITTEE ON
RESOURCES
SEC. 9000. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE IX—COMMITTEE ON RESOURCES
Sec. 9000. Table of contents.
Subtitle A—Alaska and Helium Privatization
PART 1—ALASKA
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Sec. 9001. Exports of Alaskan North Slope oil.
Sec. 9002. Arctic Coastal Plain leasing and revenue.
Sec. 9003. Alaska Power Administration sale.
PART 2—HELIUM PRIVATIZATION
Sec. 9011. Short title.
Sec. 9012. Amendment of Helium Act.
Sec. 9013. Authority of Secretary.
Sec. 9014. Sale of crude helium.
Sec. 9015. Elimination of stockpile.
Sec. 9016. Repeal of authority to borrow.
Sec. 9017. Reports.
Sec. 9018. Land conveyance in Potter County, Texas.
Subtitle B—Water and Power
PART 1—POWER MARKETING ADMINISTRATIONS
Sec. 9201. Short title.
Sec. 9202. Evaluation of sales of Southeastern, Southwestern, and Western
Area Power Administration facilities.
Sec. 9203. Bonneville Power Administration appropriations refinancing.
PART 2—RECLAMATION
Sec. 9211. Prepayment of certain repayment contracts between the United
States and the Central Utah Water Conservancy District.
Sec. 9212. Treatment of city of Folsom as a Central Valley Project contractor.
Sec. 9213. Sly Park.
Sec. 9214. Hetch Hetchy Dam.
Subtitle C—National Parks, Forests, and Public Lands
PART 1—CONCESSION REFORM
Sec. 9301. Short title.
Sec. 9302. Purpose.
Sec. 9303. Definitions.
Sec. 9304. Nature and types of concession authorizations.
Sec. 9305. Competitive selection process for concession service agreements.
Sec. 9306. Concessioner evaluations.
Sec. 9307. Capital improvements.
Sec. 9308. Duration of concession authorization.
Sec. 9309. Rates and charges to the public.
Sec. 9310. Transferability of concession authorizations.
Sec. 9311. Fees charged by the United States for concession authorizations.
Sec. 9312. Disposition of fees.
Sec. 9313. Dispute resolution.
Sec. 9314. Recordkeeping.
Sec. 9315. Application of general governmental acquisition requirements.
Sec. 9316. Rules of construction.
Sec. 9317. Regulations.
Sec. 9318. Relationship to other existing laws.
PART 2—NATIONAL FOREST SKI AREAS
Sec. 9321. Privatization of Forest Service ski areas.
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Sec. 9322. Ski area permit fees and withdrawal of ski areas from operation of
mining laws.
PART 3—DOMESTIC LIVESTOCK GRAZING
Sec. 9331. Applicable regulations.
Sec. 9332. Fees and charges.
Sec. 9333. Animal unit month.
Sec. 9334. Term of grazing permits or grazing leases.
Sec. 9335. Conformance with land use plan.
Sec. 9336. Effective date.
PART 4—REGIONAL DISPOSAL FACILITY OF SOUTHWESTERN LOW LEVEL
RADIOACTIVE WASTE DISPOSAL COMPACT
Sec. 9341. Conveyance of property.
Sec. 9342. Conveyance of easements.
Subtitle D—Territories
PART 1—COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
Sec. 9401. Termination of annual direct grant assistance.
PART 2—TERRITORIAL ADMINISTRATIVE CESSATION ACT
Sec. 9421. Short title.
Sec. 9422. Congressional findings.
Sec. 9423. Elimination of Office of Territorial and International Affairs.
Sec. 9424. Certain activities not funded.
Subtitle E—Minerals
PART 1—HARDROCK MINING
Sec. 9501. Findings and purpose.
Sec. 9502. Patents under the general mining law.
Sec. 9503. Royalty under the general mining law.
Sec. 9504. Mineral materials.
Sec. 9505. Claim maintenance requirements.
PART 2—FEDERAL OIL AND GAS ROYALTIES
Sec. 9511. Short title.
Sec. 9512. Definitions.
Sec. 9513. Limitation periods.
Sec. 9514. Adjustment and refunds.
Sec. 9515. Required recordkeeping.
Sec. 9516. Royalty interest, penalties, and payments.
Sec. 9517. Limitation on assessments.
Sec. 9518. Alternatives for marginal properties.
Sec. 9519. Royalty in kind.
Sec. 9520. Royalty simplification and cost-effective audit and collection require-
ments.
Sec. 9521. Repeals.
Sec. 9522. Delegation to States.
Sec. 9523. Performance standard.
Sec. 9524. Indian lands.
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Sec. 9525. Private lands.
Sec. 9526. Effective date.
Subtitle F—Indian Gaming
Sec. 9601. Indian gaming.
Subtitle G—Consultation
Sec. 9701. Consultation.
Subtitle H—Mapping
Sec. 9801. Short title.
Sec. 9802. Surveying and mapping contracting program.
Sec. 9803. Inventory of activities.
Sec. 9804. Plan to increase use of contracts.
Sec. 9805. Reports.
Sec. 9806. Definitions.
Subtitle A—Alaska and Helium
Privatization
PART 1—ALASKA
SEC. 9001. EXPORTS OF ALASKAN NORTH SLOPE OIL.
(a) AMENDMENT OF MINERAL LEASING ACT.—Sec-
tion 28(s) of the Mineral Leasing Act (30 U.S.C. 185(s))
is amended to read as follows:
‘‘EXPORTS OF ALASKAN NORTH SLOPE OIL
‘‘(s)(1) Subject to paragraphs (2) through (6) of this
subsection and notwithstanding any other provision of this
Act or any other provision of law (including any regula-
tion) applicable to the export of oil transported by pipeline
over right-of-way granted pursuant to section 203 of the
Trans-Alaska Pipeline Authorization Act (43 U.S.C.
1652), such oil may be exported unless the President finds
that exportation of this oil is not in the national interest.
The President shall make his national interest determina-
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tion within 5 months after the date of enactment of this
subsection. In evaluating whether exports of this oil are
in the national interest, the President shall at a minimum
consider—
‘‘(A) whether exports of this oil would diminish
the total quantity or quality of petroleum available
to the United States;
‘‘(B) the results of an appropriate environ-
mental review, including consideration of appropriate
measures to mitigate any potential adverse effects of
exports of this oil on the environment, which shall
be completed within four months of the date of the
enactment of this subsection; and
‘‘(C) whether exports of this oil are likely to
cause sustained material oil supply shortages or sus-
tained oil prices significantly above world market
levels that would cause sustained material adverse
employment effects in the United States or that
would cause substantial harm to consumers, includ-
ing in noncontiguous States and Pacific territories.
If the President determines that exports of this oil are
in the national interest, he may impose such terms and
conditions (other than a volume limitation) as are nec-
essary or appropriate to ensure that such exports are con-
sistent with the national interest.
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‘‘(2) Except in the case of oil exported to a country
with which the United States entered into a bilateral inter-
national oil supply agreement before November 26, 1979,
or to a country pursuant to the International Emergency
Oil Sharing Plan of the International Energy Agency, any
oil transported by pipeline over right-of-way granted pur-
suant to section 203 of the Trans-Alaska Pipeline Author-
ization Act (43 U.S.C. 1652) shall, when exported, be
transported by a vessel documented under the laws of the
United States and owned by a citizen of the United States
(as determined in accordance with section 2 of the Ship-
ping Act, 1916 (46 U.S.C. App. 802)).
‘‘(3) Nothing in this subsection shall restrict the au-
thority of the President under the Constitution, the Inter-
national Emergency Economic Powers Act (50 U.S.C.
1701 et seq.), or the National Emergencies Act (50 U.S.C.
1601 et seq.) to prohibit exports of this oil or under Part
B of title II of the Energy Policy and Conservation Act
(42 U.S.C. 6271–76).
‘‘(4) The Secretary of Commerce shall issue any rules
necessary for implementation of the President’s national
interest determination, including any licensing require-
ments and conditions, within 30 days of the date of such
determination by the President. The Secretary of Com-
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merce shall consult with the Secretary of Energy in ad-
ministering the provisions of this subsection.
‘‘(5) If the Secretary of Commerce finds that export-
ing oil under authority of this subsection has caused sus-
tained material oil supply shortages or sustained oil prices
significantly above world market levels and further finds
that these supply shortages or price increases have caused
or are likely to cause sustained material adverse employ-
ment effects in the United States, the Secretary of Com-
merce, in consultation with the Secretary of Energy, shall
recommend, and the President may take, appropriate ac-
tion concerning exports of this oil, which may include
modifying or revoking authority to export such oil.
‘‘(6) Administrative action under this subsection is
not subject to sections 551 and 553 through 559 of title
5, United States Code.’’.
(b) GAO REPORT.—
(1) REVIEW.—The Comptroller General of the
United States shall conduct a review of energy pro-
duction in California and Alaska and the effects of
Alaskan North Slope oil exports, if any, on consum-
ers, independent refiners, and shipbuilding and ship
repair yards on the West Coast and in Hawaii. The
Comptroller General shall commence this review 2
years after the date of enactment of this Act and,
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within 6 months after commencing the review, shall
provide a report to the Committee on Resources and
the Committee on Commerce of the House of Rep-
resentatives and the Committee on Energy and Nat-
ural Resources of the Senate.
(2) CONTENTS OF REPORT.—The report shall
contain a statement of the principal findings of the
review and recommendations for Congress and the
President to address job loss in the shipbuilding and
ship repair industry on the West Coast, as well as
adverse impacts on consumers and refiners on the
West Coast and in Hawaii, that the Comptroller
General attributes to Alaska North Slope oil exports.
SEC. 9002. ARCTIC COASTAL PLAIN LEASING AND REVE-
NUE.
(a) PURPOSE.—It is the purpose of this section to
reduce the Federal deficit by an estimated $1,300,000,000
over the next 5 years. This revenue will be derived from
competitive bonus bids for oil and gas leases in the Coastal
Plain area of Alaska’s North Slope.
(b) DEFINITIONS.—For the purposes of this section:
(1) The term ‘‘Secretary’’ means the Secretary
of the Interior.
(2) The term ‘‘Coastal Plain’’ means that por-
tion of the Arctic National Wildlife Refuge identified
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in section 1002(b)(1) of the Alaska National Inter-
est Lands Conservation Act of 1980 (Public Law
96–487; 16 U.S.C. 3142(b)(1)) consisting of ap-
proximately 1,549,000 acres.
(c) COMPATIBILITY.—Congress hereby determines
that the oil and gas leasing program and activities author-
ized by this section in the Coastal Plain are compatible
with the purposes for which the Arctic National Wildlife
Refuge was established, and that no further findings or
decisions are required to implement this determination.
(d) AUTHORIZATION.—(1) Congress hereby author-
izes and directs the Secretary to establish and promptly
implement a program to assure the expeditious competi-
tive leasing exploration, development, production, and
transportation of the oil and gas resources of the Coastal
Plain. Regulations to implement this program and to gov-
ern oil and gas leasing, exploration, development and pro-
duction shall be promulgated by the Secretary within 6
months of the date of enactment of this section.
(2) The Coastal Plain leasing program required by
paragraph (1) shall include the following:
(A) The first lease sale of not less than 200,000
acres shall be conducted within 12 months of the
date of enactment of this section.
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(B) The lease sales shall be based upon an in-
dustry nomination process.
(C) The Secretary is directed to grant to the
highest responsible qualified bidder or bidders by
competitive bidding, under regulations promulgated
in advance, any oil and gas lease on unleased Fed-
eral lands within the Coastal Plain. These regula-
tions may provide for the deposit of cash bids in an
interest-bearing account until the Secretary accepts
the bids, with interest earned paid to the General
Treasury for bids that are accepted, and to the un-
successful bidders for bids that are rejected.
(D) Royalty payments shall not be less than
121⁄2 percent, and rental payments shall be pre-
scribed by the Secretary.
(E) The Attorney General of the United States
and the Federal Trade Commission may conduct
such review of lease terms and lease sale activities
as are necessary to ensure compliance with the anti-
trust laws.
(F) The size of lease tracts may be up to
11,520 acres but not less than 2,560 acres, as deter-
mined by the Secretary, except that the Secretary
may lease smaller tracts if he determines smaller
tracts are necessary to promote a more competitive
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leasing program or are necessary in certain locations
to mitigate reasonably foreseeable impacts on the en-
vironment.
(G) Each lease shall be issued for an initial pe-
riod of up to 10 years and shall be extended as long
as oil or gas is produced in paying quantities from
the lease or unit area to which the lease is commit-
ted or as drilling or reworking operations as ap-
proved by the Secretary are conducted thereon.
(H) The Secretary is authorized and directed to
promulgate regulations and to include terms in
leases to ensure that—
(i) activities are conducted pursuant to an
approved exploration or development plan;
(ii) lessees secure an appropriate perform-
ance bond to cover activities;
(iii) provision is made for the suspension,
cancellation, assignment, relinquishment and
unitization of leases; and
(iv) the Secretary has access to lease infor-
mation and that confidential, privileged or pro-
prietary information furnished by lessees is ade-
quately protected.
(e) JUDICIAL REVIEW.—Any complaint filed seeking
judicial review of an action of the Secretary in promulgat-
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ing any regulation under this section may be filed only
in the United States Court of Appeals for the District of
Columbia, and such complaint shall be filed within 90 days
from the date of such promulgation, or after such date
if such complaint is based solely on grounds arising after
such 90th day, in which case the complaint must be filed
within 90 days after the complainant knew or reasonably
should have known of the grounds for the complaint. Any
complaint seeking judicial review of any other actions of
the Secretary under this section may be filed in any appro-
priate district court of the United States, and such com-
plaint must be filed within 90 days from the date of the
action being challenged, or after such date if such com-
plaint is based solely on grounds arising after such 90th
day, in which case the complaint must be filed within 90
days after the complainant knew or reasonably should
have known of the grounds for the complaint.
(f) ADMINISTRATION.—(1) Section 1003 of the Alas-
ka National Interest Lands Conservation Act of 1980 (94
Stat. 2452; 16 U.S.C. 3143) is repealed.
(2) This section shall be considered the primary land
management authorization for all activities associated
with exploration, development, and production from the
Coastal Plain. No land management review, determina-
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tion, or other action shall be required except as specifically
authorized by this section.
(g) PROTECTION
OF FISH
AND WILDLIFE RE-
SOURCES
AND OTHER ENVIRONMENTAL VALUES.—(1)
Before conducting a competitive oil and gas lease sale
under this section, the Secretary shall promulgate, within
6 months, as provided in subsection (d)(1), such rules and
regulations as are necessary to ensure that oil and gas
exploration, development, production, and transportation
activities undertaken in the Coastal Plain achieve the rea-
sonable protection of the fish and wildlife resources, envi-
ronment and subsistence uses of the Coastal Plain.
(2) The Secretary shall administer the provisions of
this section through regulations and lease terms that the
Secretary determines to be necessary to mitigate reason-
ably foreseeable and significantly adverse effects on the
fish and wildlife, surface resources and subsistence re-
sources of the Coastal Plain.
(3)(A) The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, Alaska, and the
North Slope Borough, is authorized to close to leasing and
designate up to 30,000 acres of the Coastal Plain as Spe-
cial Areas if the Secretary determines that these lands are
of such unique character and interest so as to require spe-
cial management and regulatory protection. The Secretary
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shall notify the Committee on Energy and Natural Re-
sources of the Senate and the Committee on Resources
of the House of Representatives 90 days in advance of
making such designations. The Secretary may permit leas-
ing of all or portions of any lands within the Coastal Plain
designated as Special Areas by setting lease terms that
limit or condition surface use and occupancy by lessees
of such lands but permit the use of horizontal drilling
technology from sites on leases located outside the des-
ignated Special Areas.
(B) Notwithstanding any other provision of law or
any international agreement to which the United States
is a party, the Secretary’s sole authority to close lands
within the Coastal Plain to oil and gas leasing and to ex-
ploration, development, and production as provided for in
this part is set forth in subparagraph (A).
(4) The Secretary shall, in consultation with the
State of Alaska, the city of Kaktovik, Alaska, and the
North Slope Borough, develop guidelines to encourage the
siting of facilities having common use characteristics
(service bases, ports and docks, airports, major pipelines
and roads) in a manner which leads to facility consolida-
tion, avoids unnecessary duplication, utilizes existing fa-
cilities, minimizes impacts on fish, wildlife, habitat and the
subsistence activities of residents of Native communities,
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and avoids disruption of the lives of the residents of the
Village of Kaktovik and other communities.
(5) Notwithstanding title XI of the Alaska National
Interest Lands Conservation Act of 1980 (94 Stat. 2457;
16 U.S.C. 3161 et seq.), the Secretary is authorized and
directed to grant, under sections 28(a) through (t) and
(v) through (y) of the Mineral Leasing Act (30 U.S.C.
185), rights-of-way and easements across the Coastal
Plain for the purposes of this section, for pipeline con-
struction, and the transportation of oil and gas and relat-
ed purposes.
(6) The Secretary is authorized to close, on a sea-
sonal basis, portions of the Coastal Plain to exploratory
drilling activities as necessary to protect caribou calving
areas and other species of fish and wildlife.
(h) APPLICATION OF ENVIRONMENTAL LAWS.—The
‘‘Final Legislative Environmental Impact Statement’’
(April 1987) prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980
(94 Stat. 2449; 16 U.S.C. 3142) and section 102(2)(C)
of the National Environmental Policy Act of 1969 (89
Stat. 424; 42 U.S.C. 4332(2)(C)) is hereby determined
to be adequate and legally sufficient for all actions author-
ized pursuant to this section, including all phases of oil
and gas leasing, exploration, development, production,
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transportation and related activities, including the grant-
ing of rights-of-way, use permits and other authorizations.
(i) NEW REVENUES.—(1) Notwithstanding any other
provision of law, all revenues received from competitive
bids, sales, bonuses, royalties, rents, fees, interest or other
income derived from the leasing of oil and gas resources
within the Coastal Plain shall be deposited into the Treas-
ury of the United States: Provided, That 50 percent of
all such Coastal Plain revenues shall be paid by the Sec-
retary of the Treasury semiannually, on March 30th and
on September 30th of each year, to the State of Alaska.
(2) On March 1st of each year following the date of
enactment of this section, the Secretary shall prepare and
submit to the Congress an annual report on the revenues
derived and on the leasing program authorized by this sec-
tion.
(j) CONVEYANCE.—Notwithstanding the provisions of
section 1302(h)(2) of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3192(h)(2)), the Secretary
is authorized and directed to convey (1) to the Kaktovik
Inupiat Corporation the surface estate of the lands de-
scribed in paragraph 2 of Public Land Order 6959, to the
extent necessary to fulfill the corporation’s entitlement
under section 12 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1611), and (2) to the Arctic Slope Re-
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gional Corporation the subsurface estate beneath such
surface estate pursuant to the August 9, 1983, agreement
between the Arctic Slope Regional Corporation and the
United States of America.
(k) PENALTY.—Any person, including any Federal
official, who fails to comply with any provision or mandate
of this section, a lease term, or a regulation promulgated
under this section, after notice of such failure and expira-
tion of a reasonable period for corrective action, shall be
liable, after hearing, for a civil penalty of not more than
$10,000 for each day of the continuance of such failure.
(l) COMMUNITY ASSISTANCE.—There is hereby estab-
lished a Community Assistance Fund in the Treasury
which shall be maintained at a level of $5,000,000 annu-
ally from the Federal share of Coastal Plain revenues and
shall be available to the Secretary for the purposes of this
section. Organized boroughs, other municipal subdivisions
of the State of Alaska, and recognized Indian Reorganiza-
tion Act entities which are impacted by activities author-
ized under this section shall be eligible, on application to
the Secretary, for local assistance from the Community
Assistance Fund for needed social services and to provide
public services and facilities required in connection with
supporting exploration and development of the Coastal
Plain.
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(m) EMPLOYMENT AND CONTRACTING.—As a condi-
tion of any leases, permits, or other Federal authorizations
granted or issued pursuant to this section, a recipient of
those leases, permits, or authorizations shall be required
to use its best efforts to assure that the lessee and its
agents and contractors provide a fair share of employment
and contracting for Alaska Natives and Alaska Native
Corporations from throughout the State.
(n) USE OF ANWR REVENUES.—
(1) ESTABLISHMENT OF ENDOWMENT.—There
is hereby established in the general fund of the
Treasury a separate account which shall be known
as the National Endowment for Fish and Wildlife.
(2) CONTENTS.—(A) Except as provided in
subparagraph (B), the Endowment shall consist of
revenues received from the following sources:
(i) Gifts, devises, and bequests to the En-
dowment.
(ii) Amounts appropriated by the Congress
to the Endowment.
(iii) Any revenues deposited into the
Treasury of the United States under subsection
(i), from the Federal share of revenues derived
from oil and gas leasing within the Coastal
Plain, that exceed $1,300,000,000.
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(B) After the Endowment has reached a level of
$250,000,000 in principal, further payments to the
Endowment shall consist only of the following:
(i) Gifts, devises, and bequests to the En-
dowment.
(ii) Amounts appropriated by the Congress
to the Endowment.
(iii) 5 percent of the Federal royalties de-
rived from commercial production of oil and gas
on Federal leases on the Coastal Plain.
(3) ESTABLISHMENT OF FISH AND WILDLIFE
CONSERVATION COMMISSION.—(A) To carry out the
purposes of this subsection, there is hereby estab-
lished a commission to be known as the Fish and
Wildlife Conservation Commission.
(B) The Commission shall consist of—
(i) the Secretary of the Interior, who shall
be the chairman,
(ii) 3 Members of the Senate selected by
the President of the Senate, and
(iii) 3 Members of the House of Represent-
atives selected by the Speaker.
(C) At least 1 member of the Commission se-
lected from each House of Congress shall be a mem-
ber of the minority party in that House.
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(D) Any Member of the House of Representa-
tives who is a member of the Commission, if re-
elected to the succeeding Congress, may serve on the
Commission notwithstanding the expiration of a
Congress.
(E) Any vacancy on the Commission shall be
filled in the same manner as the original appoint-
ment.
(4) EXPENDITURES BY COMMISSION.—(A) The
Fish and Wildlife Commission may make expendi-
tures from the Endowment for the following fish and
wildlife conservation purposes:
(i) Acquisition of important habitat lands
for endangered species or threatened species
from owners of private property. Such lands
may be acquired solely on a willing seller basis
and shall be managed by the Secretary of the
Interior for the conservation of such species
pursuant to the terms of section 5 of the En-
dangered Species Act of 1973 (16 U.S.C.
1534).
(ii) Provision of funding for purposes au-
thorized under the Endangered Species Act of
1973.
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(iii) Provision of funds to the North Amer-
ican Wetlands Conservation Fund pursuant to
the North American Wetlands Conservation Act
(16 U.S.C. 4401 et seq.).
(B) The amount expended under subparagraph
(A)(iii) each fiscal year shall equal or exceed 25 per-
cent of the total expenditures from the Endowment
in that fiscal year.
(C) The Secretary of the Interior may not rec-
ommend any lands or interest in lands for purchase
or other forms of acquisition using funds made
available under the terms of this section unless the
Secretary of the Interior—
(i) has determined that such lands are nec-
essary for the conservation of endangered spe-
cies or other fish and wildlife; and
(ii) has consulted with the county or other
unit of local government in which such lands
are located and with the Governor of the State
concerned.
(D) Land or an interest in land may not be ac-
quired with moneys from the Endowment unless—
(i) the acquisition thereof has been ap-
proved by the Governor of the State in which
the land is located; and
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(ii) the owner of the land or interest has
offered the land or interest for acquisition
under this subsection and consented to the ac-
quisition.
(5) ANNUAL REPORT.—The Commission shall,
through its chairman, annually report in detail to
the Congress, by not later than the first Monday in
December, regarding the operations of the Commis-
sion during the preceding fiscal year.
(6) STATE LAW.—The jurisdiction of any State,
both civil and criminal, over persons upon areas ac-
quired under this subsection shall not be changed or
otherwise affected by reason of the acquisition and
administration of the areas by the United States as
endangered species habitat. Nothing in this sub-
section is intended to interfere with the operation
of the game laws of the States.
(7) ADMINISTRATION OF AREAS ACQUIRED.—
Areas of lands, waters, or interest therein acquired
or reserved pursuant to this subsection shall, unless
otherwise provided by law, be administered by the
Secretary of the Interior under rules and regulations
prescribed by the Secretary to conserve and protect
endangered species in accordance with the Endan-
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gered Species Act of 1973, or to restore or develop
adequate wildlife habitat.
(8) DEFINITIONS.—In this subsection:
(A) The term ‘‘Commission’’ means the
Fish and Wildlife Conservation Commission es-
tablished by this subsection.
(B) The term ‘‘Endowment’’ means the
National Endowment for Fish and Wildlife es-
tablished by this subsection.
(9) CONFORMING AMENDMENT.—Section 7 of
the North American Wetlands Conservation Act of
1989 (16 U.S.C. 4406) is amended by adding at the
end the following:
‘‘(e) FISH AND WILDLIFE COMMISSION FUNDING.—
In addition to the amounts made available under sub-
sections (a), (b), and (c) of this section, the Council may
receive funds from the Fish and Wildlife Commission to
carry out the purposes of this Act. Use of such funds shall
not be subject to the cost allocation requirements of sec-
tion 8 of this Act.’’.
SEC. 9003. ALASKA POWER ADMINISTRATION SALE.
(a) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘Eklutna assets’’ means the
Eklutna Hydroelectric Project and related assets as
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described in section 4 and Exhibit A of the Eklutna
Purchase Agreement.
(2) The term ‘‘Eklutna Purchase Agreement’’
means the August 2, 1989, Eklutna Purchase
Agreement between the Alaska Power Administra-
tion of the Department of Energy and the Eklutna
Purchasers, together with any amendments thereto
which were adopted before the enactment of this sec-
tion.
(3) The term ‘‘Eklutna Purchasers’’ means the
Municipality of Anchorage doing business as Munici-
pal Light and Power, the Chugach Electric Associa-
tion, Inc. and the Matanuska Electric Association,
Inc.
(4) The term ‘‘Secretary’’ means the Secretary
of Energy except where otherwise specified.
(5) The term ‘‘Snettishan assets’’ means the
Snettisham Hydroelectric Project and related assets
as described in section 4 and Exhibit A of the
Snettisham Purchase Agreement.
(6) The term ‘‘Snettisham Purchase Agree-
ment’’ means the February 10, 1989, Snettisham
Purchase Agreement between the Alaska Power Ad-
ministration of the Department of Energy and the
Alaska Power Authority and its successors in inter-
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est, together with any amendments thereto which
were adopted before the enactment of this section.
(b) SALE OF SNETTISHAM AND EKLUNTA ASSETS.—
(1) SNETTISHAM.—The Secretary is authorized
and directed to sell and transfer the Snettisham as-
sets to the State of Alaska in accordance with the
terms of this section and the Snettisham Purchase
Agreement.
(2) EKLUTNA.—The Secretary is authorized
and directed to sell and transfer the Eklutna assets
to the Eklutna Purchasers in accordance with the
terms of this section and the Eklutna Purchase
Agreement.
(3) COOPERATION
OF
OTHER
AGENCIES.—
Other departments, agencies, and instrumentalities
of the United States shall cooperate with the Sec-
retary in implementing the sales and transfers under
this section.
(4) AUTHORIZATION OF APPROPRIATIONS; CON-
TRIBUTED FUNDS.—(A) There are authorized to be
appropriated such sums as may be necessary to pre-
pare, survey, or acquire Snettisham and Eklutna as-
sets for sale and transfer under this section. Such
preparations and acquisitions shall provide sufficient
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title in the assets to ensure beneficial use, enjoy-
ment, and occupancy thereof to the purchasers.
(B) Notwithstanding any other provision of law,
the Alaska Power Administration is authorized to re-
ceive, administer, and expend such contributed funds
as may be provided by the Eklutna Purchasers or
customers or the Snettisham Purchasers or cus-
tomers for the purposes of upgrading, improving,
maintaining, 
or 
administering 
Eklutna 
or
Snettisham. Upon the termination of the Alaska
Power Administration required under subsection (d),
the Secretary of Energy shall administer and expend
any remaining balances of such contributed funds
for the purposes intended by the contributors.
(C) The Secretary is directed to use up to
$5,000,000 from unobligated balances available to
the Department of Energy to fund any sale prepara-
tion costs for the sales under this section, and shall
provide an accounting of all sale preparation costs to
the Committee on Resources of the House of Rep-
resentatives and to the Committee on Energy and
Natural Resources of the Senate within 60 days
after completion of the sale.
(c) GENERAL PROVISIONS.—
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(1) RIGHTS-OF-WAY
AND
OTHER
LANDS
FOR
THE EKLUTNA PROJECT.—With respect to Eklutna
lands described in Exhibit A of the Eklutna Pur-
chase Agreement:
(A) The Secretary of the Interior shall
issue rights-of-way to the Alaska Power Admin-
istration for subsequent reassignment to the
Eklutna Purchasers at no cost to the Eklutna
Purchasers.
(B) Such rights-of-way shall remain effec-
tive for a period equal to the life of the Eklutna
hydroelectric project as extended by improve-
ments, repairs, renewals, or replacements.
(C) Such rights-of-way shall be sufficient
for the operation, maintenance, repair, and re-
placement of, and access to, the facilities of the
Eklutna hydroelectric project located on mili-
tary lands and lands managed by the Bureau of
Land Management, including land selected by,
but not yet conveyed to, the State of Alaska.
(D) If the Eklutna Purchasers subse-
quently sell or transfer the Eklutna hydro-
electric project to private ownership, the Bu-
reau of Land Management may assess reason-
able and customary fees for continued use of
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(4) REPEAL OF ACT OF AUGUST 9, 1955.—The
Act of August 9, 1955 (69 Stat. 618), concerning
water resources investigations in Alaska, is repealed.
(5) TREATMENT OF ASSET SALE.—The sales of
assets under this section shall not be considered a
disposal of Federal surplus property under the Fed-
eral Property and Administrative Services Act of
1949 (40 U.S.C. 484) or the Surplus Property Act
of 1944 (50 U.S.C. App. 1622).
(6) APPLICATION OF CERTAIN LAWS.—(A) The
Act of July 31, 1950 (64 Stat. 382), shall cease to
apply on the date, as determined by the Secretary,
when all Eklutna assets have been conveyed to the
Eklutna Purchasers.
(B) Section 204 of the Flood Control Act of
1962 (Public Law 87–874; 76 Stat. 1193) shall
cease to apply effective on the date, as determined
by the Secretary, when all Snettisham assets have
been conveyed to the State of Alaska.
(d) TERMINATION OF ALASKA POWER ADMINISTRA-
TION.—
(1) 
TERMINATION
OF
ALASKA
POWER
ADMINISTATION.—Not later than one year after both
of the sales authorized in this section have occurred,
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as measured by the Transaction Dates stipulated in
the Purchase Agreements, the Secretary shall—
(A) complete the business of, and close
out, the Alaska Power Administration;
(B) prepare and submit to Congress a re-
port documenting the sales; and
(C) return unobligated balances of funds
appropriated for the Alaska Power Administra-
tion to the Treasury of the United States.
(2) DOE ORGANIZATION ACT.—Section 302(a)
of the Department of Energy Organization Act (42
U.S.C. 7152(a)) is amended as follows:
(A) In paragraph (1)—
(i) by striking out subparagraph (C);
and
(ii) by redesignating subparagraphs
(D), (E), and (F) as subparagraphs (C),
(D), and (E) respectively.
(B) In paragraph (2), by striking out ‘‘the
Bonneville Power Administration, and the Alas-
ka Power Administration’’ and inserting in lieu
thereof ‘‘and the Bonneville Power Administra-
tion’’.
The amendments made by this paragraph shall take
effect on the date on which the Secretary submits
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the report referred to in subparagraph (B) of para-
graph (1).
(e) PROCEEDS.—The proceeds from the sale of
Snettisham and Eklutna assets under this section shall be
credited to miscellaneous receipts in the Treasury.
(f) SECTION
147(d) 
OF
INTERNAL
REVENUE
CODE.—For purposes of section 147(d) of the Internal
Revenue Code of 1986, the ‘‘first use’’ of Snettisham shall
be considered to occur pursuant to acquistion of the prop-
erty by or on behalf of the State of Alaska.
PART 2—HELIUM PRIVATIZATION
SEC. 9011. SHORT TITLE.
This part may be cited as the ‘‘Helium Privatization
Act of 1995’’.
SEC. 9012. AMENDMENT OF HELIUM ACT.
Except as otherwise expressly provided, whenever in
this part an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Helium Act (50 U.S.C.
167 to 167n).
SEC. 9013. AUTHORITY OF SECRETARY.
Sections 3, 4, and 5 are amended to read as follows:
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‘‘SEC. 3. AUTHORITY OF SECRETARY.
‘‘(a) EXTRACTION AND DISPOSAL OF HELIUM ON
FEDERAL LANDS.—(1) The Secretary may enter into
agreements with private parties for the recovery and dis-
posal of helium on Federal lands upon such terms and
conditions as he deems fair, reasonable and necessary. The
Secretary may grant leasehold rights to any such helium.
The Secretary may not enter into any agreement by which
the Secretary sells such helium other than to a private
party with whom the Secretary has an agreement for re-
covery and disposal of helium. Such agreements may be
subject to such rules and regulations as may be prescribed
by the Secretary.
‘‘(2) Any agreement under this subsection shall be
subject to the existing rights of any affected Federal oil
and gas lessee. Each such agreement (and any extension
or renewal thereof) shall contain such terms and condi-
tions as deemed appropriate by the Secretary.
‘‘(3) This subsection shall not in any manner affect
or diminish the rights and obligations of the Secretary and
private parties under agreements to dispose of helium pro-
duced from Federal lands in existence at the enactment
of the Helium Privatization Act of 1995 except to the ex-
tent that such agreements are renewed or extended after
such date.
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‘‘(b) STORAGE, TRANSPORTATION, AND SALE.—The
Secretary is authorized to store, transport, and sell helium
only in accordance with this Act.
‘‘(c) MONITORING AND REPORTING.—The Secretary
is authorized to monitor helium production and helium re-
serves in the United States and to periodically prepare re-
ports regarding the amounts of helium produced and the
quantity of crude helium in storage in the United States.
‘‘SEC. 4. STORAGE, TRANSPORTATION, AND WITHDRAWAL
OF CRUDE HELIUM.
‘‘(a) STORAGE, TRANSPORTATION, 
AND
WITH-
DRAWAL.—The Secretary is authorized to store and trans-
port crude helium and to maintain and operate existing
crude helium storage at the Bureau of Mines Cliffside
Field, together with related helium transportation and
withdrawal facilities.
‘‘(b) CESSATION OF PRODUCTION, REFINING, AND
MARKETING.—Effective 18 months after the date of en-
actment of the Helium Privatization Act of 1995, the Sec-
retary shall cease producing, refining and marketing re-
fined helium and shall cease carrying out all other activi-
ties relating to helium which the Secretary was authorized
to carry out under this Act before the date of enactment
of the Helium Privatization Act of 1995, except those ac-
tivities described in subsection (a). The amount of helium
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reserves owned by the United States and stored in the Bu-
reau of Mines Cliffside Field at such date of cessation,
less 600,000,000 cubic feet, shall be the helium reserves
owned by the United States required to be sold pursuant
to section 8(b) hereof.
‘‘(c) DISPOSAL
OF FACILITIES.—(1) Within two
years after the date on which the Secretary ceases produc-
ing, refining and marketing refined helium and ceases all
other activities relating to helium in accordance with sub-
section (b), the Secretary shall dispose of all facilities,
equipment, and other real and personal property, together
with all interests therein, held by the United States for
the purpose of producing, refining and marketing refined
helium. The disposal of such property shall be in accord-
ance with the provisions of law governing the disposal of
excess or surplus properties of the United States.
‘‘(2) All proceeds accruing to the United States by
reason of the sale or other disposal of such property shall
be treated as moneys received under this chapter for pur-
poses of section 6(f). All costs associated with such sale
and disposal (including costs associated with termination
of personnel) and with the cessation of activities under
subsection (b) shall be paid from amounts available in the
helium production fund established under section 6(f).
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‘‘(3) Paragraph (1) shall not apply to any facilities,
equipment, or other real or personal property, or any in-
terest therein, necessary for the storage and transpor-
tation of crude helium or any equipment needed to main-
tain the purity, quality control, and quality assurance of
helium in the reserve.
‘‘(d) EXISTING CONTRACTS.—All contracts which
were entered into by any person with the Secretary for
the purchase by such person from the Secretary of refined
helium and which are in effect on the date of the enact-
ment of the Helium Privatization Act of 1995 shall remain
in force and effect until the date on which the facilities
referred to in subsection (c) are disposed of. Any costs
associated with the termination of such contracts shall be
paid from the helium production fund established under
section 6(f).
‘‘SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITH-
DRAWAL.
‘‘Whenever the Secretary provides helium storage,
withdrawal, or transportation services to any person, the
Secretary is authorized and directed to impose fees on
such person to reimburse the Secretary for the full costs
of providing such storage, transportation, and withdrawal.
All such fees received by the Secretary shall be treated
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as moneys received under this Act for purposes of section
6(f).’’.
SEC. 9014. SALE OF CRUDE HELIUM.
Section 6 is amended as follows:
(1) Subsection (a) is amended by striking out
‘‘from the Secretary’’ and inserting ‘‘from persons
who have entered into enforceable contracts to pur-
chase an equivalent amount of crude helium from
the Secretary’’.
(2) Subsection (b) is amended by inserting
‘‘crude’’ before ‘‘helium’’ and by adding the follow-
ing at the end thereof: ‘‘Except as may be required
by reason of subsection (a), the Secretary shall not
make sales of crude helium under this section in
such amounts as will disrupt the market price of
crude helium.’’.
(3) Subsection (c) is amended by inserting
‘‘crude’’ before ‘‘helium’’ the first place it appears
and by striking ‘‘together with interest as provided
in subsection (d) of this section’’ and all that follows
down through the period at the end of such sub-
section and inserting the following:
‘‘all funds required to be repaid to the United States as
of October 1, 1995, under this section (hereinafter re-
ferred to as ‘repayable amounts’). The price at which
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crude helium is sold by the Secretary shall not be less than
the amount determined by the Secretary as follows:
‘‘(1) Divide the outstanding amount of such re-
payable amounts by the volume (in mcf) of crude he-
lium owned by the United States and stored in the
Bureau of Mines Cliffside Field at the time of the
sale concerned.
‘‘(2) Adjust the amount determined under para-
graph (1) by the Consumer Price Index for years be-
ginning after December 31, 1995.’’.
(4) Subsection (d) is amended to read as fol-
lows:
‘‘(d) EXTRACTION OF HELIUM FROM DEPOSITS ON
FEDERAL LANDS.—All moneys received by the Secretary
from the sale or disposition of helium on Federal lands
shall be paid to the Treasury and credited against the
amounts required to be repaid to the Treasury under sub-
section (c) of this section.’’.
(5) Subsection (e) is repealed.
(6) Subsection (f) is amended by inserting
‘‘(1)’’ after ‘‘(f)’’ and by adding the following at the
end thereof:
‘‘(2) Within 7 days after the commencement of each
fiscal year after the disposal of the facilities referred to
in section 4(c), all amounts in such fund in excess of
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$2,000,000 (or such lesser sum as the Secretary deems
necessary to carry out this Act during such fiscal year)
shall be paid to the Treasury and credited as provided in
paragraph (1). Upon repayment of all amounts referred
to in subsection (c), the fund established under this sec-
tion shall be terminated and all moneys received under this
Act shall be deposited in the Treasury as General Reve-
nues.’’.
SEC. 9015. ELIMINATION OF STOCKPILE.
Section 8 is amended to read as follows:
‘‘SEC. 8. ELIMINATION OF STOCKPILE.
‘‘(a) REVIEW OF RESERVES.—The Secretary shall re-
view annually the known helium reserves in the United
States and make a determination as to the expected life
of the domestic helium reserves (other than Federally
owned helium stored at the Cliffside Reservoir) at that
time.
‘‘(b) STOCKPILE SALES.—Not later than January 1,
2005, the Secretary shall commence offering for sale crude
helium from helium reserves owned by the United States
in such minimum annual amounts as would be necessary
to dispose of all such helium reserves in excess of
600,000,000 cubic feet (mcf) on a straight-line basis be-
tween such date and January 1, 2015: Provided, That the
minimum price for all such sales, as determined by the
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Secretary in consultation with the helium industry, shall
be such as will ensure repayment of the amounts required
to be repaid to the Treasury under section 6(c), and pro-
vided further that the minimum annual sales requirement
may be deferred only if, and to the extent that, the Sec-
retary is unable to arrange sales at the minimum price.
The sales shall be at such times during each year and in
such lots as the Secretary determines, in consultation with
the helium industry, are necessary to carry out this sub-
section with minimum market disruption.
‘‘(c) DISCOVERY OF ADDITIONAL RESERVES.—The
discovery of additional helium reserves shall not affect the
duty of the Secretary to make sales of helium as provided
in subsection (b), as the case may be.’’.
SEC. 9016. REPEAL OF AUTHORITY TO BORROW.
Sections 12 and 15 are repealed.
SEC. 9017. REPORTS.
Section 16 is amended by redesignating existing sec-
tion 16 as section 16(a) and inserting the following at the
end thereof:
‘‘(b)(1) The Inspector General of the Department of
the Interior shall cause to be prepared, not later than
March 31 following each fiscal year commencing with the
date of enactment of the Helium Privatization Act of
1995, annual financial statements for the Helium Oper-
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ations of the Bureau of Mines. The Director of the Bureau
of Mines shall cooperate with the Inspector General in ful-
filling this requirement, and shall provide him with such
personnel and accounting assistance as may be necessary
for that purpose. The financial statements shall be audited
by the General Accounting Office, and a report on such
audit shall be delivered by the General Accounting Office
to the Secretary of the Interior and Congress, not later
than June 30 following the end of the fiscal year for which
they are prepared. The audit shall be prepared in accord-
ance with generally accepted government auditing stand-
ards.
‘‘(2) The financial statements shall be comprised of
the following:
‘‘(A) A balance sheet reflecting the overall fi-
nancial position of the Helium Operations, including
assets and liabilities thereof;
‘‘(B) the Statement of Operations, reflecting
the fiscal period results of the Helium Operations;
‘‘(C) a statement cash flows or changes in fi-
nancial position of the Helium Operations; and
‘‘(D) a reconciliation of budget reports of the
Helium Operations.
‘‘(3) The Statement of Operations shall include but
not be limited to the revenues from, and costs of, sales
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of crude helium, the storage and transportation of crude
helium, the production, refining and marketing of refined
helium, and the maintenance and operation of helium stor-
age facilities at the Bureau of Mines Cliffside Field. The
term ‘revenues’ for this purpose shall exclude (A) royalties
paid to the United States for production of helium or other
extraction of resources, except to the extent that the He-
lium Operations incur direct costs in connection therewith,
and (B) proceeds from sales of assets other than inven-
tory. The term ‘expenses’ shall include, but not be limited
to (i) all labor costs of the Bureau of Mines Helium Oper-
ations, and of the Department of the Interior in connec-
tion therewith, and (ii) for financial reporting purposes
but not in connection with the determination of sales
prices in section 6(c), all current-period interest on out-
standing repayable amounts (as described in section 6(c))
calculated at the same rates as such interest was cal-
culated prior to the enactment of the Helium Privatization
Act of 1995.
‘‘(4) The balance sheet shall include, but not be lim-
ited to, on the asset side, the present discounted market
value of crude helium reserves; and on the liability side,
the accrued liability for principal and interest on debt to
the United States. For financial reporting purposes but
not in connection with the determination of sales prices
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in section 6(c), the balance sheet shall also include accrued
but unpaid interest on outstanding repayable amounts (as
described in section 6(c)) through the date of the report,
calculated at the same rates as such interest was cal-
culated prior to the enactment of the Helium Privatization
Act of 1995.’’.
SEC. 9018. LAND CONVEYANCE IN POTTER COUNTY, TEXAS.
(a) IN GENERAL.—The Secretary of the Interior shall
transfer all right, title, and interest of the United States
in and to the parcel of land described in subsection (b)
to the Texas Plains Girl Scout Council for consideration
of $1, reserving to the United States such easements as
may be necessary for pipeline rights-of-way.
(b) LAND DESCRIPTION.—The parcel of land re-
ferred to in subsection (a) is all those certain lots, tracts
or parcels of land lying and being situated in the County
of Potter and State of Texas, and being the East Three
Hundred Thirty-One (E331) acres out of Section Seventy-
eight (78) in Block Nine (9), B.S. & F. Survey, (some-
times known as the G. D. Landis pasture) Potter County,
Texas, located by certificate No. 1/39 and evidenced by
letters patents Nos. 411 and 412 issued by the State of
Texas under date of November 23, 1937, and of record
in Vol. 66A of the Patent Records of the State of Texas.
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The metes and bounds description of such lands is as fol-
lows:
(1) FIRST TRACT.—One Hundred Seventy-one
(171) acres of land known as the North part of the
East part of said survey Seventy-eight (78) afore-
said, described by metes and bounds as follows:
Beginning at a stone 20 x 12 x 3 inches
marked X, set by W. D. Twichell in 1905, for
the Northeast corner of this survey and the
Northwest corner of Section 59;
Thence, South 0 degrees 12 minutes East with
the West line of said Section 59, 999.4 varas to
the Northeast corner of the South 160 acres of
East half of Section 78;
Thence, North 89 degrees 47 minutes West
with the North line of the South 150 acres of
the East half, 956.8 varas to a point in the
East line of the West half Section 78;
Thence North 0 degrees 10 minutes West with
the East line of the West half 999.4 varas to
a stone 18 x 14 x 3 inches in the middle of the
South line of Section 79;
Thence South 89 degrees 47 minutes East 965
varas to the place of beginning.
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(2) SECOND TRACT.—One Hundred Sixty (160)
acres of land known as the South part of the East
part of said survey No. Seventy-eight (78) described
by metes and bounds as follows:
Beginning at the Southwest corner of Section
59, a stone marked X and a pile of stones;
Thence North 89 degrees 47 minutes West with
the North line of Section 77, 966.5 varas to the
Southeast corner of the West half of Section
78; Thence North 0 degrees 10 minutes West
with the East line of the West half of Section
78;
Thence South 89 degrees 47 minutes East
965.8 varas to a point in the East line of Sec-
tion 78;
Thence South 0 degrees 12 minutes East 934.6
varas to the place of beginning.
Containing an area of 331 acres, more or less.
Subtitle B—Water and Power
PART 1—POWER MARKETING ADMINISTRATIONS
SEC. 9201. SHORT TITLE.
This part may be cited as the ‘‘Power Administration
Act’’.
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SEC. 9202. EVALUATION OF SALES OF SOUTHEASTERN,
SOUTHWESTERN, 
AND 
WESTERN 
AREA
POWER ADMINISTRATION FACILITIES.
(a) REPEALS.—The following provisions are repealed:
(1) Section 505 of Public Law 102–377, the
Fiscal Year 1993 Energy and Water Development
Appropriations Act.
(2) Section 208 of Public Law 99–349, the Ur-
gent Supplemental Appropriations Act, 1986.
(3) Section 510 of Public Law 101–514, the
Fiscal Year 1991 Energy and Water Development
appropriations Act.
(b) EVALUATION OF ISSUES.—(1) The Secretary of
Energy, the Secretary of the Interior, and the Secretary
of the Army shall enter into arrangements with an experi-
enced private sector firm to serve as advisor to the Sec-
retaries with respect to the sale of the facilities used to
generate and transmit the electric power marketed by the
Southeastern Power Administration, the Southwestern
Power Administration and the Western Area Power Ad-
ministration, including all transmission and related struc-
tures, equipment, facilities and all real, tangible and intan-
gible property (including rights-of-way) which are used in
connection with, and necessary for, the operation of such
power generation and transmission facilities.
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(2) Prior to December 31, 1996, the advisor shall
provide to the Secretaries and the Congress a report iden-
tifying all recipients of water and power from such facili-
ties, all relevant contracts, debt obligations, equity inter-
ests, and other binding agreements which apply to the fa-
cilities concerned and to the sale of electric power from
such facilities, all assets tangible or intangible, all applica-
ble requirements relating to environmental mitigation, In-
dian trust responsibilities, land ownership or use rights
relevant to the proposed transfers which could terminate
based on a transfer out of Federal ownership, and naviga-
tional requirements which affect the operation of such fa-
cilities.
(3) In conducting the evaluation, the Secretaries and
the advisor should also recognize that many of the dams
and reservoirs associated with the generation of electric
power marketed by the Power Marketing Administrations
are first and foremost water supply, flood control, or navi-
gation projects. In general, power generation is incidental
to these primary purposes. In addition, there are also sec-
ondary purposes such as recreation and environmental val-
ues which are served by these facilities as well as the
power production. The evaluation should assume that such
facilities will continue to be operated in a manner consist-
ent with their current, primary purposes and the evalua-
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tion directed by this section shall not assume any changes
in the other current operational objectives of the facilities.
(4) Such evaluation shall also include an evaluation
of the tax consequences, and the revenue impacts of such
consequences for the United States, of possible arrange-
ments for the sale of generation and transmission facilities
to potential transferees identified by the advisor. The re-
port shall also investigate alternative groupings of such
generation and transmission facilities for purposes of sale
in order to determine which groupings would be most de-
sirable for purposes of effectuating such sales. Proposed
transfers should be structured by watershed or by project
unless the advisor can provide satisfactory information to
the Secretaries that another alternative should be used.
Asset groupings shall specifically be designed to avoid the
sale of the most valuable assets while the Federal govern-
ment would be forced to retain the less valuable assets.
SEC. 9203. BONNEVILLE POWER ADMINISTRATION APPRO-
PRIATIONS REFINANCING.
(a) DEFINITIONS.—For the purposes of this section:
(1) The term ‘‘Administrator’’ means the Ad-
ministrator of the Bonneville Power Administration.
(2) The term ‘‘capital investment’’ means a
capitalized cost funded by Federal appropriations
that—
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(5) The term ‘‘repayment date’’ means the end
of the period within which the Administrator’s rates
are to assure the repayment of the principal amount
of a capital investment.
(6) The term ‘‘Treasury rate’’ means—
(A) for an old capital investment, a rate
determined by the Secretary of the Treasury,
taking into consideration prevailing market
yields, during the month preceding October 1,
1995, on outstanding interest-bearing obliga-
tions of the United States with periods to matu-
rity comparable to the period between October
1, 1995, and the repayment date for the old
capital investment; and
(B) for a new capital investment, a rate
determined by the Secretary of the Treasury,
taking into consideration prevailing market
yields, during the month preceding the begin-
ning of the fiscal year in which the related
project, facility, or separable unit or feature is
placed in service, on outstanding interest-bear-
ing obligations of the United States with peri-
ods to maturity comparable to the period be-
tween the beginning of the fiscal year and the
repayment date for the new capital investment.
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(b) NEW PRINCIPAL AMOUNTS.—(1) Effective Octo-
ber 1, 1995, an old capital investment shall have a new
principal amount that is the sum of—
(A) the present value of the old payment
amounts for the old capital investment, calculated
using a discount rate equal to the Treasury rate for
the old capital investment; and
(B) an amount equal to $100,000,000 multi-
plied by a fraction whose numerator is the principal
amount of the old payment amounts for the old cap-
ital investment and whose denominator is the sum of
the principal amounts of the old payment amounts
for all old capital investments.
(2) With the approval of the Secretary of the Treas-
ury based solely on consistency with this Act, the Adminis-
trator shall determine the new principal amounts under
paragraph (1) and the assignment of interest rates to the
new principal amounts under subsection (c).
(3) For the purposes of this section, ‘‘old payment
amounts’’ means, for an old capital investment, the annual
interest and principal that the Administrator would have
paid to the United States Treasury from October 1, 1995,
if this section were not enacted, assuming that—
(A) the principal were repaid—
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(i) on the repayment date the Adminis-
trator assigned before October 1, 1993, to the
old capital investment, or
(ii) with respect to an old capital invest-
ment for which the Administrator has not as-
signed a repayment date before October 1,
1993, on a repayment date the Administrator
shall assign to the old capital investment in ac-
cordance with paragraph 10(d)(1) of the ver-
sion of Department of Energy Order RA
6120.2 in effect on October 1, 1993; and
(B) interest were paid—
(i) at the interest rate the Administrator
assigned before October 1, 1993, to the old cap-
ital investment, or
(ii) with respect to an old capital invest-
ment for which the Administrator has not as-
signed an interest rate before October 1, 1993,
at a rate determined by the Secretary of the
Treasury, taking into consideration prevailing
market yields, during the month preceding the
beginning of the fiscal year in which the related
project, facility, or separable unit or feature is
placed in service, on outstanding interest-bear-
ing obligations of the United States with peri-
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ods to maturity comparable to the period be-
tween the beginning of the fiscal year and the
repayment date for the old capital investment.
(c) 
INTEREST
RATE
FOR
NEW
PRINCIPAL
AMOUNTS.—As of October 1, 1995, the unpaid balance
on the new principal amount established for an old capital
investment under subsection (b) shall bear interest annu-
ally at the Treasury rate for the old capital investment
until the earlier of the date that the new principal amount
is repaid or the repayment date for the new principal
amount.
(d) REPAYMENT DATES.—As of October 1, 1995, the
repayment date for the new principal amount established
for an old capital investment under subsection (b) shall
be no earlier than the repayment date for the old capital
investment assumed in subsection (b)(3)(A).
(e) PREPAYMENT LIMITATIONS.—During the period
October 1, 1995, through September 30, 2000, the total
new principal amounts of old capital investments, as es-
tablished under subsection (b), that the Administrator
may pay before their respective repayment dates shall not
exceed $100,000,000.
(f) INTEREST RATES FOR NEW CAPITAL INVEST-
MENTS
DURING
CONSTRUCTION.—(1) The principal
amount of a new capital investment includes interest in
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each fiscal year of construction of the related project, facil-
ity, or separable unit or feature at a rate equal to the
one-year rate for the fiscal year on the sum of—
(A) construction expenditures that were made
from the date construction commenced through the
end of the fiscal year, and
(B) accrued interest during construction.
(2) The Administrator shall not be required to pay,
during construction of the project, facility, or separable
unit or feature, the interest calculated, accrued, and cap-
italized under paragraph (1).
(3) For the purposes of this subsection, ‘‘one-year
rate’’ for a fiscal year means a rate determined by the
Secretary of the Treasury, taking into consideration pre-
vailing market yields, during the month preceding the be-
ginning of the fiscal year, on outstanding interest-bearing
obligations of the United States with periods to maturity
of approximately one year.
(g) INTEREST RATES FOR NEW CAPITAL INVEST-
MENTS.—The unpaid balance on the principal amount of
a new capital investment bears interest at the Treasury
rate for the new capital investment from the date the re-
lated project, facility, or separable unit or feature is placed
in service until the earlier of the date the new capital in-
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vestment is repaid or the repayment date for the new cap-
ital investment.
(h) CREDITS TO ADMINISTRATOR’S PAYMENTS TO
THE UNITED STATES TREASURY.—The Confederated
Tribe of the Colville Reservation Grand Coulee Dam Set-
tlement Act (Public Law 103–436) is amended by striking
section 6 and inserting the following:
‘‘SEC. 6. CREDITS TO ADMINISTRATOR’S PAYMENTS TO THE
UNITED STATES TREASURY.
‘‘(a) IN GENERAL.—So long as the Adminisatrator
makes annual payments to the tribes under the settlement
agreement, the Administrator shall apply against amounts
otherwise payable by the Administrator to the United
States Treasury a credit that reduces the Administrator’s
payment in the amount and for each fiscal year as follows:
$15,250,000 in fiscal year 1996; $15,860,000 in fiscal
year 1997; $16,490,000 in fiscal year 1998; $17,150,000
in fiscal year 1999; $17,840,000 in fiscal year 2000; and
$4,100,000 in each succeeding fiscal year.
‘‘(b) DEFINITIONS.—For the purposes of this sec-
tion—
‘‘(1) the term ‘settlement agreement’ means
that settlement agreement between the United
States of America and the Confederated Tribes of
the Colville Reservation signed by the Tribes on
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April 16, 1994, and by the United States of America
on April 21, 1994, which settlement agreement re-
solves claims of the Tribes in Docket 181–D of the
Indian Claims Commission, which docket has been
transferred to the United States Court of Federal
Claims; and
‘‘(2) the term ‘Tribes’ means the Confederated
Tribes of the Colville Reservation, a Federally recog-
nized Indian Tribe.’’.
(i) CONTRACT PROVISIONS.—In each contract of the
Administrator that provides for the Administrator to sell
electric power, transmission, or related services, and that
is in effect after September 30, 1995, the Administrator
shall offer to include, or as the case may be, shall offer
to amend to include, provisions specifying that after Sep-
tember 30, 1995—
(1) the Administrator shall establish rates and
charges on the basis that—
(A) the principal amount of an old capital
investment shall be no greater than the new
principal amount established under subsection
(b);
(B) the interest rate applicable to the un-
paid balance of the new principal amount of an
old capital investment shall be no greater than
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the interest rate established under subsection
(c);
(C) any payment of principal of an old
capital investment shall reduce the outstanding
principal balance of the old capital investment
in the amount of the payment at the time the
payment is tendered; and
(D) any payment of interest on the unpaid
balance of the new principal amount of an old
capital investment shall be a credit against the
appropriate interest account in the amount of
the payment at the time the payment is ten-
dered;
(2) apart from charges necessary to repay the
new principal amount of an old capital investment as
established under subsection (b), and to pay the in-
terest on the principal amount under subsection (c),
no amount may be charged for return to the United
States Treasury as repayment for or return on an
old capital investment, whether by way of rate, rent,
lease payment, assessment, user charge, or any other
fee;
(3) amounts provided under section 1304 of
title 31, United States Code, shall be available to
pay, and shall be the sole source for payment of, a
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judgment against or settlement by the Administrator
or the United States on a claim for a breach of the
contract provisions required by this Act; and
(4) the contract provisions specified in this Act
shall not—
(A) preclude the Administrator from recov-
ering, through rates or other means, any tax
that is generally imposed on electric utilities in
the United States, or
(B) affect the Administrator’s authority
under applicable law, including section 7(g) of
the Pacific Northwest Electric Power Planning
and Conservation Act (16 U.S.C. 839e(g)), to—
(i) allocate costs and benefits, includ-
ing but not limited to fish and wildlife
costs, to rates or resources, or
(ii) design rates.
(j) SAVINGS PROVISIONS.—(1) This section does not
affect the obligation of the Administrator to repay the
principal associated with each capital investment, and to
pay interest on the principal, only from the ‘‘Administra-
tor’s net proceeds,’’ as defined in section 13 of the Federal
Columbia River Transmission System Act (16 U.S.C.
838k(b)).
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(2) Except as provided in subsection (e) of this sec-
tion, this section does not affect the authority of the Ad-
ministrator to pay all or a portion of the principal amount
associated with a capital investment before the repayment
date for the principal amount.
(k) DOE STUDY.—(1) The Administrator shall un-
dertake a study to determine the effect that increases in
the rates for electric power sales made by the Adminis-
trator may have on the customer base of the Bonneville
Power Administration. Such study shall identify other
sources of electric power that may be available to cus-
tomers of the Bonneville Power Administration and shall
estimate the level at which higher rates for power sales
by the Administration may result in the loss of customers
by the Administration.
(2) The Administrator shall undertake a study to de-
termine the total prior costs incurred by the Bonneville
Power Administration for compliance with the provisions
of the Endangered Species Act of 1973 and the total fu-
ture costs anticipated to be incurred by the Administration
for compliance with such provisions.
(3) The Administrator shall submit the results of the
studies undertaken under this section to the Congress
within 180 days after the date of the enactment of this
Act.
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PART 2—RECLAMATION
SEC. 9211. PREPAYMENT OF CERTAIN REPAYMENT CON-
TRACTS BETWEEN THE UNITED STATES AND
THE CENTRAL UTAH WATER CONSERVANCY
DISTRICT.
The second sentence of section 210 of the Central
Utah Project Completion Act (106 Stat. 4624) is amended
to read as follows: ‘‘The Secretary of the Interior shall
allow for prepayment of the repayment contract between
the United States and the Central Utah Water Conser-
vancy District dated December 28, 1965, and supple-
mented on November 26, 1985, providing for repayment
of the municipal and industrial water delivery facilities for
which repayment is provided pursuant to such contract,
under such terms and conditions as the Secretary deems
appropriate to protect the interest of the United States,
which shall be similar to the terms and conditions con-
tained in the supplemental contract that provided for the
prepayment of the Jordan Aqueduct dated October 28,
1993. The District shall exercise its right to prepayment
pursuant to this section by the end of fiscal year 2002.’’.
SEC. 9212. TREATMENT OF CITY OF FOLSOM AS A CENTRAL
VALLEY PROJECT CONTRACTOR.
For the purposes of being considered eligible to be
a transferee of Central Valley Project water to be used
for municipal and industrial purposes, the city of Folsom,
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California, shall be treated as a Central Valley Project
contractor as of November 1, 1990.
SEC. 9213. SLY PARK.
(a) SHORT TITLE.—This section may be cited as the
‘‘Sly Park Unit Conveyance Act’’.
(b) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘El Dorado Irrigation District’’
or ‘‘District’’ means a political subdivision of the
State of California duly organized, existing, and act-
ing pursuant to the laws thereof with its principal
place of business in the city of Placerville, El Do-
rado County, California.
(2) The term ‘‘Secretary’’ means the Secretary
of the Interior.
(3) The term ‘‘Sly Park Unit’’ means the Sly
Park Dam and Reservoir, Camp Creek Diversion
Dam and Tunnel and conduits and canals as author-
ized under the American River Act of October 14,
1949 (63 Stat. 852), together with all other facilities
owned by the United States including those used to
convey and store water delivered from Sly Park, as
well as all recreation facilities associated thereto.
(c) SALE OF THE SLY PARK UNIT.—
(1) IN GENERAL.—The Secretary shall, within
one year after the date of enactment of this Act, sell
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and convey to the El Dorado Irrigation District the
Sly Park Unit. Within such one-year period, the Sec-
retary shall also transfer and assign the water rights
relating to the Sly Park Unit held in trust by the
Secretary for diversion and storage under California
State permits numbered 2631, 5645A, 10473, and
10474 to the El Dorado Irrigation District.
(2) SALE PRICE.—The sale price shall not ex-
ceed—
(A) the construction costs ($30,926,230),
as included in the accounts of the Secretary,
plus
(B) interest on the construction costs allo-
cated to domestic use, at the authorized rate in-
cluded in enactment of the Act of October 14,
1949 (63 Stat. 852), up to an agreed upon
date, less
(C) all revenues to date as collected under
the terms of the contract between the United
States and the El Dorado Irrigation District,
estimated at $9,146,885.
(3) TERMS OF PAYMENT.—The Secretary shall
provide for a payment of the purchase price under
paragraph (2) on terms not to exceed 20 years. The
interest rate to be paid by the District shall be the
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authorized rate included in the Act of October 14,
1949 (63 Stat. 852). Section 213(c) of the Reclama-
tion Reform Act of 1982 (43 U.S.C. 390mm(c))
shall not apply to the purchase of the Sly Park Unit
under this section.
(4) CONVEYANCE.—Upon signing the agree-
ment to carry out the sale required by this section,
the Secretary shall convey and assign to the El Do-
rado Irrigation District all right, title, and interest
of the United States in and to the Sly Park Unit.
(5) NO
ADDITIONAL
ENVIRONMENTAL
IM-
PACT.—The Congress specifically finds that (A) the
sale, conveyance and assignment of the Sly Park
Unit and water rights under this section involves the
transfer of the ownership and operation of an exist-
ing ongoing water project, (B) the Sly Park Unit op-
eration, facilities and water rights have been, and
after the sale and transfer will continue to be, com-
mitted to maximum reasonable and beneficial use for
existing services, and (C) the sale, conveyance and
assignment of the Sly Park Unit and water rights
does not involve any additional growth or expansion
of the project or other environmental impacts. Con-
sequently, the sale, conveyance and assignment of
the Sly Park Unit and water rights shall not be sub-
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ject to environmental review pursuant to the Na-
tional Environmental Policy Act of 1969 (42 U.S.C.
4332) or endangered species review or consultation
pursuant to section 7 of the Endangered Species Act
of 1973 (16 U.S.C. 1536).
SEC. 9214. HETCH HETCHY DAM.
Section 7 of the Act of December 19, 1913 (38 Stat.
242), is amended—
(1) by striking ‘‘$30,000’’ in the first sentence
and inserting ‘‘$8,000,000’’, and
(2) by amending the second and third sentences
to read as follows: ‘‘These funds shall be placed in
a separate fund by the United States and, notwith-
standing any other provision of law, shall not be
available for obligation or expenditure until appro-
priated by the Congress. The highest priority use of
the funds shall be for annual operation of Yosemite
National Park, with the remainder of any funds to
be used to fund operations of other national parks
in the State of California.’’.
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Subtitle C—National Parks,
Forests, and Public Lands
PART 1—CONCESSION REFORM
SEC. 9301. SHORT TITLE.
This part may be cited as the ‘‘Visitor Facilities and
Services Enhancement Act of 1995’’.
SEC. 9302. PURPOSE.
The purpose of this part is to ensure that quality visi-
tor facilities and services are provided by the Federal land
management agencies (Forest Service, United States Fish
and Wildlife Service, National Park Service, Bureau of
Land Management, Bureau of Reclamation and United
States Army Corps of Engineers). Each Federal land
management agency shall implement a program to encour-
age appropriate development and operation of services and
facilities for the accommodation of visitors. The program
implemented by each such agency shall consist of actions
which—
(1) recognize the importance of the private sec-
tor in providing a quality visitor experience on Fed-
eral lands by encouraging private sector investments
for facilities and services on Federal lands under a
fair and competitive process;
(2) establish the basis for an effective relation-
ship between the land management agencies and pri-
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vate businesses operating on public lands and waters
in efforts to serve the public and to protect the re-
sources of these areas;
(3) measure quality and value of services pro-
vided by concessioners and provide incentives for
consistent excellence.
(4) ensure a fair return to the Federal Govern-
ment; and
(5) are consistent among the various agencies
to the extent practicable in order to increase effi-
ciency of the Federal Government and simplify re-
quirements for concessioners.
SEC. 9303. DEFINITIONS.
For the purposes of this part:
(1) The term ‘‘adjusted gross receipts’’ means
gross receipts less revenue derived from goods and
services provided on other than Federal lands or
conveyed to units of Government for hunting or fish-
ing licenses or for entrance or recreation fees, or
from such other exclusions as the Secretary con-
cerned might apply.
(2) The term ‘‘agency head’’ means the head of
an agency or his or her designated representative.
(3) The term ‘‘concessioner’’ means a person or
other entity acting under a concession authorization
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which provides public services, facilities, or activities
on Federal lands or waters pursuant to a concession
services agreement or concession license.
(4) The term ‘‘concession license’’ means a
written contract between the agency head and the
concessioner which sets forth the terms and condi-
tions under which the concessioner is authorized to
provide recreation services or activities on a limited
basis as well as the rights and obligations of the
Federal Government.
(5) The term ‘‘concession service agreement’’
means a written contract between the agency head
and the concessioner which sets forth the terms and
conditions under which the concessioner is author-
ized to provide visitor services, facilities, or activities
as well as the rights and obligations of the Federal
Government.
(6) The term ‘‘gross receipts’’ means revenue
from goods or services provided by concession serv-
ices, facilities, or activities on Federal lands and wa-
ters.
(7) The term ‘‘performance incentive’’ means a
credit based on past performance toward the score
awarded by the Secretary to a concessioner’s pro-
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posal submitted in response to a solicitation for the
reissuance of such contract.
(8) The term ‘‘proposal’’ means the complete
submission for a concession service agreement of-
fered in response to the solicitation for such conces-
sion service agreement.
(9) The term ‘‘prospectus’’ means a document
or documents issued by the Secretary concerned and
included with a solicitation which sets forth the min-
imum requirements for the award of a concession
service agreement.
(10) The term ‘‘Secretary concerned’’ means—
(A) the Secretary of the Interior with re-
spect to the United States Fish and Wildlife
Service, National Park Service, Bureau of Land
Management, and Bureau of Reclamation;
(B) the Secretary of Agriculture with re-
spect to the Forest Service; and
(C) the Secretary of the Army with respect
to the United States Army Corps of Engineers.
(11) The term ‘‘solicitation’’ means a request
by the Secretary concerned for proposals in response
to a prospectus.
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SEC. 9304. NATURE AND TYPES OF CONCESSION AUTHOR-
IZATIONS.
(a) IN GENERAL.—The Secretary concerned may
enter into concession authorizations, as follows:
(1) CONCESSION
SERVICES
AGREEMENT.—A
concession service agreement shall be entered into
for all concessions where the Secretary concerned
makes a finding that the provision of concession
services is in the interest of the Federal Government
and issues either a competitive offering for conces-
sion services, facilities or activities or a noncompeti-
tive offering for such services, facilities, or activities
based on a finding that due to special circumstances
it is not in the public interest of the United States
to award a concession service agreement on a com-
petitive basis. Where the concessioner develops or
uses fixed facilities on Federal lands, the Secretary
concerned shall issue a lease.
(2) CONCESSION LICENSE.—Whenever the Sec-
retary concerned makes a finding that public enjoy-
ment of Federal lands would be enhanced through
the provision of concession services and that there
exists no need to limit the number of concessioners
providing such services, he shall consider entering
into a concession license with a qualified conces-
sioner. Activities covered under a concession license
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would typically be one-time, intermittent, or infre-
quently scheduled. The Secretary concerned may not
limit the number of concession licenses issued for
the same types of activities in a particular geo-
graphic area. The Secretary concerned shall monitor
such concession licenses to determine whether issu-
ance of a concession service agreement would be a
more appropriate authorization.
(3) 
LANDS
UNDER
MULTIPLE
JURISDIC-
TIONS.—The Secretaries of the Departments con-
cerned shall designate an agency to be the lead
agency concerning concessions which conduct a sin-
gle operation on lands or waters under the jurisdic-
tion of more than one agency. Unless otherwise
agreed to by each such Secretary concerned, the lead
agency shall be that agency under whose jurisdiction
the concessioner generates the greatest amount of
gross receipts. The agency so designated shall issue
a single authorization and collect a single fee under
paragraphs (1) and (2) for such operation. Such au-
thorization shall provide for use in a manner consist-
ent with the plans and policies for each agency.
(b) LEASES OF AREAS TO STATES AND STATE THIRD
PARTY AGREEMENT NOT COVERED.—This part does not
apply to leases or licenses of entire areas to States or other
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political subdivisions or to any third party agreement is-
sued by any such State or political subdivisions with re-
spect to such entire area.
SEC. 9305. COMPETITIVE SELECTION PROCESS FOR CON-
CESSION SERVICE AGREEMENTS.
(a) AWARD
TO BEST PROPOSAL.—The Secretary
shall enter into, and reissue, a concession service agree-
ment with the person whom the Secretary determines in
accordance with this section submits the best proposal
through a competitive process as defined in this section.
(b) SOLICITATION
AND
PROSPECTUS.—The Sec-
retary concerned shall prepare a solicitation and prospec-
tus which describes the concession service opportunity and
shall publish, in appropriate locations, announcements of
the availability of the solicitation, prospectus, and the con-
cession service opportunity. The solicitation shall include
(but need not be limited to) the following:
(1) A description of the services and facilities to
be provided by the concessioner.
(2) The level of capital investment required by
the concessioner (if any).
(3) Terms and conditions of the concession
service agreement.
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(4) Minimum facilities and services to be pro-
vided by the Secretary to the concessioner and the
public.
(5) Minimum fees to the United States.
(c) FACTORS AND MINIMUM STANDARDS IN DETER-
MINING BEST PROPOSAL.—The prospectus shall assign a
weight to each factor indentified therein related to the im-
portance of such factor in the selection process. Points
shall be awarded for each such factor, based on the rel-
ative strength of the proposal concerning that factor. In
determining the best proposal, the Secretary concerned
shall take into consideration (but shall not be limited to)
the following, including whether the proposal meets the
minimum requirements (if any) of the Secretary for each
of the following:
(1) Responsiveness to the prospectus.
(2) Quality of visitor services taking into ac-
count the nature of equipment and facilities to be
provided.
(3) Experience and performance in providing
similar services. This factor shall account for not
less than 20 percent of the maximum points avail-
able under any prospectus. Where the Secretary con-
cerned determines it to be warranted to provide for
a high quality visitor experience, the prospectus for
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a concession service agreement shall provide greater
weight to this factor based on such aspects of the
concession service agreement as scope or size, com-
plexity, nature of technical skills required, and site-
specific knowledge of the area. The similarity of the
qualifying experience outlined in the proposal to the
nature of the services required under the concession
service agreement and the length of such qualifying
experience shall be the basis for awarding points for
this factor.
(4) Record of resource protection (as appro-
priate for services and activities with potential to im-
pact natural or cultural resources).
(5) Financial capability.
(6) Fees to the United States.
(d) SELECTION PROCESS.—The process for selecting
the best proposal shall consist of the following:
(1) First, the Secretary concerned shall identify
those proposals which meet the minimum standards
(if any) for the factors identified under subsection
(c).
(2) Second, the Secretary concerned shall evalu-
ate all proposals identified under paragraph (1),
considering all factors identified under subsection
(c), as well as performance incentives earned under
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section 9306(c) and renewal penalties incurred
under section 9306(d).
(3) Third, the Secretary concerned shall offer
the concession service agreement to the best quali-
fied applicant as determined by the evaluation under
paragraph (2).
(e) INAPPLICABILITY OF NEPA TO TEMPORARY EX-
TENSIONS AND SIMILAR REISSUANCE OF CONCESSIONS
AGREEMENTS.—The temporary extension of a concession
authorization, or reissuance of a concession authorization
to provide concession services similar in nature and
amount to concession services provided under the previous
authorization, is hereby determined to be a categorical ex-
clusion as provided for under the National Environmental
Policy Act of 1969 (42 U.S.C. 4331 et seq.).
(f) PROVISION
FOR ADDITIONAL RELATED SERV-
ICES.—The Secretary concerned may modify the conces-
sion service agreement to allow concessioners to provide
services closely related to such agreement, if the Secretary
concerned determines that such changes would enhance
the safety or enjoyment of visitors and would not unduly
restrict the award of future concession service agreements.
SEC. 9306. CONCESSIONER EVALUATIONS.
(a) IN GENERAL.—The Secretary concerned shall de-
velop a program of evaluations of the concessioners oper-
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ating under a concession service agreement who are pro-
viding visitor services in areas under the jurisdiction of
the Secretary. The evaluations shall be on an annual basis
over the duration of the concession service agreement. In
developing the evaluation program, the Secretary con-
cerned shall seek broad public input from concessioners,
State agencies, and other interested persons. The evalua-
tion program shall—
(1) include the four program areas of: quality
of visitor services provided; resource protection (as
applicable); financial performance; and compliance
with concession service agreement provisions and
pertinent laws and regulations;
(2) define three levels of performance—
(A) good, which shall be defined as a level
of performance which exceeds the requirements
outlined in the prospectus, but which is attain-
able;
(B) satisfactory, which shall be defined as
meeting the requirements as contained in the
prospectus; and
(C) unsatisfactory, which shall be defined
as not meeting the requirements contained in
the prospectus;
(3) be based on criteria which—
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(A) are objective, measurable, and attain-
able; and
(B) shall include as applicable general
standards for all concession operations, indus-
try-specific standards, and standards developed
by the Secretary concerned in consultation with
the concessioner for each concession service
agreement;
(4) be designed in such a manner that the an-
nual evaluation represents the overall performance of
the concessioner without undue weight to matters of
limited importance; and
(5) take into account factors beyond the control
of the concessioner, such as general market and
other economic fluctuations, as well as weather and
other natural phenomena, so that such factors may
not be used as a justification for denial of perform-
ance incentives.
(b) ANNUAL EVALUATIONS.—
(1) REQUIREMENTS.—The Secretary concerned
shall at least semiannually review the performance of
each concessioner and shall assign an overall rating
for each concessioner for each year. The procedure
for any performance evaluation shall be provided to
the concessioner prior to the beginning of any eval-
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uation period. Such procedure shall provide for ade-
quate notification of the concessioner prior to any
on-site evaluation and permit a representative of the
concessioner to observe the evaluation. The conces-
sioner shall be entitled to a complete explanation of
any rating given. If the Secretary’s performance
evaluation for any year results in an unsatisfactory
rating of the concessioner, the Secretary concerned
shall so notify the concessioner, in writing. Such no-
tification shall identify the nature of conditions
which require corrective action and shall provide the
concessioner with a list of corrective actions nec-
essary to meet the standards.
(2) SUSPENSION, REVOCATION, AND
TERMI-
NATION
OF
AUTHORIZATION.—The Secretary con-
cerned may suspend, revoke, or terminate a conces-
sion authorization if the concessioner fails to correct
the conditions identified by the Secretary within the
limitations established by the Secretary at the time
notice of the unsatisfactory rating is provided to the
concessioner. The Secretary may immediately sus-
pend or revoke a concession authorization where nec-
essary to protect the public health or welfare.
(c) PERFORMANCE INCENTIVES.—
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(1) In evaluating the performance of a conces-
sioner, the incumbent concessioner is entitled to a
performance incentive of—
(A) one percent of the maximum points
available under such evaluations for perform-
ance in each year in which the concessioner’s
annual performance is rated good, as specified
in subsection (a)(2)(A), and
(B) a one-time three year merit term ex-
tension upon a finding that a concessioner has
been rated as good in each annual performance
evaluation through the term of the concession
service agreement.
(2) A performance incentive awarded under
paragraph (1)(A) may not exceed 10 percent of the
maximum points available under such evaluations
over the life of the concession service agreement.
(d) RENEWAL PENALTY.—In evaluating the perform-
ance of a concessioner, a concessioner shall be penalized
one percent of the maximum points available under such
evaluation for performance in each year in which the con-
cessioner’s annual performance is found to be unsatisfac-
tory.
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SEC. 9307. CAPITAL IMPROVEMENTS.
(a) PRIVATE SECTOR DEVELOPMENT.—It is the pol-
icy of the United States to encourage the private sector
to develop, own, and maintain to the extent possible such
public recreation facilities which would enhance public use
and enjoyment of Federal lands as are contained in ap-
proved plans developed by the Secretary concerned. Under
the terms of this part, concessioners may only construct
or finance construction under terms of section 9312 such
public facilities on Federal lands as are to be used by the
concessioner under the terms of their concession service
agreement or facilities which are necessary for the conces-
sioner to administer such public facilities on Federal
lands.
(b) INVESTMENT INTEREST.—
(1) IN GENERAL.—A concessioner, who is re-
quired or authorized under a concession service
agreement pursuant to this part to acquire or con-
struct any structure, improvement, or fixture pursu-
ant to such agreement on Federal lands shall have
an investment interest therein, to the extent pro-
vided by the agreement and this part. Such invest-
ment interest shall not be extinguished by the expi-
ration of such agreement. Such investment interest
may be assigned, transferred, encumbered or relin-
quished.
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(2) LIMITATION.—Such investment interest
shall not be construed to include or imply any au-
thority, privilege, or right to operate or engage in
any business or other activity, and the use of any
improvement in which the concessioner has an in-
vestment interest shall be wholly subject to the ap-
plicable provisions of the concession service agree-
ment and of laws and regulations relating to the
area.
(3) FEDERAL PROPERTY.—The agreement shall
specify which new improvements required under
terms of the concession service agreement, if any,
shall become the property of the Federal Govern-
ment at the end of the agreement. No concession
service agreement shall provide for a concessioner to
obtain an investment interest in any building which
is wholly owned by the Federal Government. Title to
the land on which such structure, improvement, or
fixture is placed shall remain in the United States.
(c) SALE OF ASSETS.—If the existing concessioner is
not selected as the best qualified applicant at the time of
reissuance of a concession service agreement, the Sec-
retary concerned shall require the new concessioner to buy
the investment interest of the existing concessioner.
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(d) CLOSURE
OF CONCESSIONER FACILITIES.—In
the event of a decision by the Secretary concerned, that
the public interest, by reason of public and safety consid-
erations or for other reasons beyond the control of the con-
cessioner, requires the discontinuation or closure of facili-
ties in which the concessioner has an investment interest,
the Secretary shall compensate the concessioner in the
amount equal to the value of the investment interest.
(e) DETERMINATION OF VALUE OF INVESTMENT IN-
TEREST.—For purposes of this part, the investment inter-
est of any capital improvement at the end of the conces-
sion service agreement period is the actual cost of con-
struction of such capital improvement adjusted from the
completion of such construction by changes in the
Consumer Price Index (selected in the same manner as
such Index is selected under section 9311(c)(2)) less de-
preciation evidenced by the condition and prospective serv-
iceability in comparison with a new unit of like kind, but
not to exceed fair market value. Such value shall be deter-
mined by appraisal and included in any prospectus.
SEC. 9308. DURATION OF CONCESSION AUTHORIZATION.
(a) CONCESSION SERVICE AGREEMENT.—The stand-
ard term of a concession service agreement shall be ten
years. The Secretary concerned may issue a concession
service agreement for less than ten years if he determines
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(in his discretion) that the average annual gross receipts
over the life of the concession service agreement would be
less than $100,000. The Secretary concerned may not
issue a concession service agreement for less than five
years. The Secretary concerned shall issue a concession
service agreement for longer than ten years if the Sec-
retary determines (in his discretion) that such longer term
is in the public interest or necessary due to the extent
of investment and associated financing requirements and
to meet the obligations assumed. The term for a conces-
sion service agreement may not exceed 30 years.
(b) CONCESSION LICENSE.—The term for a conces-
sion license may not exceed two years.
(c) TEMPORARY EXTENSION.—The Secretary may
agree to temporary extensions of concession service agree-
ments for up to two years on a noncompetitive basis to
avoid interruption of services to the public.
SEC. 9309. RATES AND CHARGES TO THE PUBLIC.
In general, rates and charges to the public shall be
set by the concessioner. For concession service agreements
only, a concessioner’s rates and charges to the public shall
be subject to the approval of the Secretary concerned in
those instances where the Secretary determines that suffi-
cient competition for such facilities and services does not
exist within or in close proximity to the area in which the
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concessioner operates. In those instances, the concession
service agreement shall state that the reasonableness of
the concessioner’s rates and charges to the public shall
be reviewed and approved by the Secretary concerned pri-
marily by comparison with those rates and charges for fa-
cilities and services of comparable character under similar
conditions, with due consideration for length of season,
seasonal variations, average percentage of occupancy, ac-
cessibility, availability and costs of labor and materials,
type of patronage, and other factors deemed significant
by the Secretary concerned. Such review shall be com-
pleted within 90 days of receipt of all necessary informa-
tion, or the requirement for the Secretary’s approval shall
be waived and such rates and charges as proposed by the
concessioner considered to be approved for immediate use.
SEC. 9310. TRANSFERABILITY OF CONCESSION AUTHORIZA-
TIONS.
(a) CONCESSION SERVICE AGREEMENTS.—
(1) APPROVAL REQUIRED.—A concession serv-
ice agreement is transferable or assignable only upon
the approval of the Secretary concerned, which ap-
proval may not be unreasonably withheld or delayed.
The Secretary may not approve any such transfer or
assignment if the Secretary determines that the pro-
spective concessioner is or is likely to be unable to
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completely satisfy all of the material requirements,
terms, and conditions of the agreement or that the
terms of the transfer or assignment would preclude
providing appropriate facilities or services to the
public at reasonable rates.
(2) CONSIDERATION PERIOD.—If the Secretary
fails to approve or disapprove a transfer or assign-
ment under paragraph (1) within 90 days after the
date on which the Secretary receives all necessary
information requested by the Secretary with respect
to such transfer, the transfer or assignment shall be
deemed approved.
(3) NO MODIFICATION OF TERMS AND CONDI-
TIONS.—The terms and conditions of the concessions
service agreement shall not be subject to modifica-
tion by reason of any transfer or assignment under
this section.
(4) PERFORMANCE INCENTIVE.—Upon approval
of the sale or transfer, the prospective concessioner
shall be entitled to the benefit of performance incen-
tives earned by the previous concessioner.
(b) CONCESSION LICENSE.—A concession license
may not be transferred.
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SEC. 9311. FEES CHARGED BY THE UNITED STATES FOR
CONCESSION AUTHORIZATIONS.
(a) IN GENERAL.—The Secretary concerned shall
charge a fee for the privilege of providing concession serv-
ices pursuant to this part. The fee for any concession serv-
ice agreement may include any of the following:
(1) An annual cash payment for the privilege of
providing concession services.
(2) The amount required for capital improve-
ments required pursuant to section 9307(a).
(3) Fees for rental or lease of Government-
owned facilities or lands occupied by the conces-
sioner.
(4) Expenditures for maintenance of or im-
provements to Government-owned facilities occupied
by the concessioner.
(b) ESTABLISHMENT OF AMOUNT.—
(1) MINIMUM
ACCEPTABLE
FEE.—The Sec-
retary concerned shall establish a minimum fee for
each applicable category specified in paragraphs (1)
through (4) of subsection (a) which is acceptable to
the Secretary under this section and shall include
the minimum fee in the prospectus under section
9305. This fee shall be based on historical data,
where available, as well as industry-specific and
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other market data available to the Secretary con-
cerned.
(2) FINAL FEE.—Except as provided by para-
graph (3), the final fee shall be the amount bid by
the selected applicant under section 9305.
(3) SUBSTANTIALLY
SIMILAR
SERVICES
IN
A
SPECIFIC GEOGRAPHIC AREA.—Where the Secretary
concerned simultaneously offers authorizations for
more than one river runner, outfitter, or guide con-
cession operation to provide substantially similar
services in a defined geographic area, the concession
fee for all such concessioners shall be specified by
the Secretary concerned in the prospectus. The Sec-
retary concerned shall base the fee on historical
data, where available, as well as on industry-specific
and other market data available to the Secretary
concerned or may establish a charge per user day.
(c) ADJUSTMENT OF FEES.—
(1) IN GENERAL.—The amount of any fee for
the term of the concession service agreement shall be
set at the beginning of the concession authorization
and may only be modified on the basis of inflation,
if the annual payment is not determined by a per-
centage of adjusted gross receipts (as measured by
changes in the Consumer Price Index), to reflect
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substantial changes from the conditions specified in
the prospectus, or in the event of an unforeseen dis-
aster.
(2) CPI.—For the purposes of adjustments for
inflation under paragraph (1), the Federal agencies
shall select a Consumer Price Index published by the
Bureau of Labor Statistics and shall use such index
in a consistent manner.
(d) CONCESSION LICENSE FEE.—The fee for a con-
cession license shall at least cover the program administra-
tive costs and may not be changed over the term of the
license.
SEC. 9312. DISPOSITION OF FEES.
(a) CONCESSION IMPROVEMENT ACCOUNT.—
(1) IN
GENERAL.—The Secretary concerned
shall, whenever the concession service agreement re-
quires or authorizes the concessioner to make capital
improvements or occupy Government-owned facili-
ties, require the concessioner to establish a conces-
sion improvement account. The concessioner shall
deposit into this account—
(A) all funds for capital improvements as
specified in the concession service agreement;
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(B) all funds for maintenance of or im-
provements to Government-owned facilities oc-
cupied by the concessioner; and
(C) all amounts received from the Sec-
retary concerned pursuant to subsection (b).
(2) TERMS
AND
CONDITIONS.—The account
shall be maintained by the concessioner in an inter-
est bearing account in a Federally insured financial
institution. The concessioner shall maintain the ac-
count separately from any other funds or accounts
and shall not commingle the monies in the account
with any other moneys. The Secretary concerned
may establish such other terms, conditions, or re-
quirements as the Secretary determines to be nec-
essary to ensure the financial integrity of the ac-
count.
(3) DISBURSEMENTS.—The concessioner shall
make disbursements from the account for improve-
ments and other activities, only as specified in the
concession 
service 
agreement 
and 
subsection
(b)(2)(C).
(4) RECORDS.—The concessioner shall maintain
proper records for all disbursements made from the
account. Such records shall include (but not be lim-
ited to) invoices, bank statements, canceled checks,
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and such other information as the Secretary con-
cerned determines to be necessary.
(5) ANNUAL
FINANCIAL
STATEMENT.—The
concessioner shall annually submit to the Secretary
concerned a statement reflecting total activity in the
account for the preceding financial year. The state-
ment shall reflect monthly deposits, expenditures by
project, interest earned, and such other information
as the Secretary concerned requires.
(6) TRANSFER
OF
REMAINING
BALANCE.—
Upon the termination of a concession authorization,
or upon the transfer of a concession service agree-
ment, any remaining balance in the account shall be
transferred by the concessioner to the successor con-
cessioner, to be used solely as set forth in this sub-
section. In the event there is no successor conces-
sioner, the account balance shall be deposited in the
Treasury as miscellaneous receipts.
(b) AMOUNTS RECEIVED RELATING TO PRIVILEGE
OF PROVIDING CONCESSION SERVICES AND RENTAL OF
GOVERNMENT-OWNED FACILITIES.—
(1) DEPOSIT INTO TREASURY.—The Secretary
concerned shall deposit into the Treasury of the
United States as miscellaneous receipts amounts re-
ceived for a fiscal year for the privilege of providing
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concession services and the rental of Government-
owned facilities up to the amount specified in the
table in paragraph (3) for the National Park Service
for that fiscal year. For the other agencies covered
under this part, the Secretary concerned shall de-
velop a schedule of anticipated receipts to be depos-
ited to the Treasury and submit such schedule to the
appropriate Congressional committees within 18
months of the date of enactment of this Act. Noth-
ing in this part shall be construed to modify any
provision of law relating to sharing of Federal re-
ceipts with any other level of Government.
(2) DEPOSIT INTO CONCESSION IMPROVEMENT
ACCOUNTS.—(A) Amounts received by the Secretary
concerned for a fiscal year for the privilege of pro-
viding concession services and the use of Govern-
ment-owned facilities which exceed the amount speci-
fied in the table in paragraph (3) for that fiscal year
shall be available for deposit in the succeeding fiscal
year into concession improvement accounts.
(B) Of the amounts available for deposit into
concession improvement accounts, the Secretary
shall make available to each concessioner a percent-
age of such excess amounts which bears the same
ratio as the amount paid by the concessioner to the
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Secretary concerned for a fiscal year for the privi-
lege of providing concession services and the use of
Government-owned facilities bears to the total
amount paid to the Secretary concerned by all con-
cessioners for that fiscal year for such privilege on
an agency-wide basis.
(C) Amounts made available to a concessioner
under this paragraph may be used only for expendi-
tures on visitor services and facilities at the area at
which the funds were generated.
(3) DEPOSIT INTO CONCESSION IMPROVEMENT
ACCOUNTS.—The table referred to in paragraph (2),
expressed by fiscal year on an agency basis, is as fol-
lows:
National Park Service
Fiscal year:
Amount:
1997 ...................................................................
$15,800,000
1998 ...................................................................
$21,100,000
1999 ...................................................................
$26,700,000
2000 ...................................................................
$32,300,000
2001 ...................................................................
$38,200,000
2002 ...................................................................
$44,400,000.
(c) AUDIT REQUIREMENT.—Beginning with fiscal
year 1998, the Inspector General of the Department con-
cerned shall conduct a biennial audit of concession fees
generated pursuant to this part. The Inspector General
shall make a determination as to whether concession fees
are being collected and expended in accordance with this
part and shall submit copies of each audit to the Commit-
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tee on Resources of the House of Representatives and the
Committee on Energy and Natural Resources of the Sen-
ate.
SEC. 9313. DISPUTE RESOLUTION.
(a) BOARD OF CONTRACT APPEALS.—The Board of
Contract Appeals within each Department shall adjudicate
disputes between the Federal Government and conces-
sioners arising under this part, including disputes regard-
ing the revocation, suspension, or termination of a conces-
sion authorization, transfers of concession service agree-
ments, and performance evaluations of concessions. Such
disputes shall be subject to the Contract Disputes Act of
1978 (41 U.S.C. 601 et seq.). The expiration of a conces-
sion authorization shall not be subject to appeal to the
Board.
(b) ADMINISTRATIVE REVIEW.—Appeals of decisions
may be taken to the Board of Contract Appeals after one
level of review of decisions made within an agency.
(c) EXPEDITED PROCEDURE.—Appeals of decisions
to suspend, revoke, or terminate a concession authoriza-
tion shall be considered under an expedited procedure, as
provided by the Secretary concerned by regulation.
(d) JUDICIAL REVIEW.—
(1) IN GENERAL.—A person may seek judicial
review of decisions made by the Board. Such review
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shall be conducted by the court with jurisdiction on
a de novo basis.
(2) CONCESSION SERVICE AGREEMENTS.—Judi-
cial review of decisions rendered by the Board re-
garding concession service agreements shall be to the
United States Court of Federal Claims in accord-
ance with section 1491 of title 28, United States
Code (commonly referred to as the ‘‘Tucker Act’’).
(3) CONCESSION LICENSES.—Judicial review of
decisions rendered by the Board regarding conces-
sion licenses shall be to the appropriate Federal Dis-
trict Court.
(d) INAPPLICABILITY
OF CERTAIN PROVISIONS.—
Disputes arising under this part shall not be subject to
the jurisdiction of the General Accounting Office to review
bid protests under the Competition in Contracting Act of
1984.
SEC. 9314. RECORDKEEPING.
(a) MAINTENANCE AND ACCESS.—Each concessioner
shall keep such records as the Secretary concerned may
prescribe to enable the Secretary to determine that all
terms of the concession authorization have been and are
being faithfully performed, and the Secretary and his duly
authorized representatives shall, for the purpose of audit
and examination, have access at reasonable times and lo-
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cations to such records and to other books, documents,
and papers of the concessioner pertinent to the concession
authorization and all the terms and conditions thereof.
(b) ACCESS
BY
COMPTROLLER
GENERAL.—The
Comptroller General of the United States or any of his
duly authorized representatives shall, until the expiration
of five calendar years after the close of the business year
of each concessioner have access to and the right to exam-
ine any pertinent books, documents, papers, and records
of the concessioner related to the concession authorization
involved.
SEC. 9315. APPLICATION OF GENERAL GOVERNMENTAL AC-
QUISITION REQUIREMENTS.
The following laws and regulations shall not apply to
concession service agreements and concession licenses
under this part:
(1) Title III of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 251–
266).
(2) The Office of Federal Procurement Policy
Act (41 U.S.C. 401 et seq.).
(3) The Federal Acquisition Streamlining Act
of 1994 (Public Law 103–355).
(4) The Brooks Automatic Data Processing Act
(40 U.S.C. 759).
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(5) Chapters 137 and 141 of title 10, United
States Code.
(6) The Federal Acquisition Regulation and any
laws not listed in paragraphs (1) through (5) provid-
ing authority to promulgate regulations in the Fed-
eral Acquisition Regulation.
(7) The Act of June 20, 1936 (20 U.S.C. 107;
commonly referred to as the ‘‘Randolph-Sheppard
Act’’) and the Service Contract Act of 1965 (41
U.S.C. 351 et seq.).
SEC. 9316. RULES OF CONSTRUCTION.
Concession programs of an agency on Federal lands
and waters subject to this part shall be fully consistent
with the agency’s mission and laws applicable to the agen-
cy. Nothing in this part shall be construed as limiting or
restricting any right, title, or interest of the United States
in any land or resources.
SEC. 9317. REGULATIONS.
(a) IN GENERAL.—Pursuant to enactment of this
part, no new concession authorization may be issued, nor
may any existing concession authorization remain in effect
after two years after the date of the enactment of this
Act, unless regulations fully implementing this part are
in effect. During such two-year period, the Secretary may
only extend an existing concession authorization for a pe-
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riod ending at the end of such two-year period. Such ex-
tensions shall be made in accordance with the applicable
provisions of law specified in section 9318, as such provi-
sions were in effect on the day before the date of the en-
actment of this Act. The Secretary of the Interior, Sec-
retary of Agriculture, and Secretary of the Army shall de-
velop a single set of regulations which specify a uniform
set of recordkeeping requirements for all concessioners
with respect to implementation of this part.
(b) QUALIFICATIONS OF AGENCY PERSONNEL AS-
SIGNED CONCESSION MANAGEMENT DUTIES.—The Sec-
retary, by regulation under subsection (a) and taking into
account the provisions of this part, shall specify the mini-
mum training and qualifications required for agency per-
sonnel assigned predominantly to concession management
duties, including (but not limited to) competency in busi-
ness management, public health and safety, and the deliv-
ery of quality customer services.
SEC. 9318. RELATIONSHIP TO OTHER EXISTING LAWS.
(a) REPEALS.—
(1) The Act entitled ‘‘An Act relating to the es-
tablishment of concession policies in the areas ad-
ministered by the National Park Service and for
other purposes’’ (16 U.S.C. 20–20g) approved Octo-
ber 9, 1965, is repealed.
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(2) The last paragraph under the heading
‘‘FOREST SERVICE’’ in the Act of March 4, 1915 (38
Stat. 1101), as amended by the Act of July 28,
1956 (chap. 771; 70 Stat. 708) (16 U.S.C. 497), is
repealed.
(3) Section 7 of the Act of April 24, 1950 (16
U.S.C. 580d) is repealed.
(b) SUPERSEDED PROVISIONS.—The provisions of
this part shall supersede the provisions of the following
Acts as they pertain to concessions management:
(1) The Federal Land Policy and Management
Act of 1976 (Oct. 21, 1976).
(2) Public Law 87–714 (16 U.S.C. 460k et
seq.; commonly known as the ‘‘Refuge Recreation
Act’’).
(3) The National Wildlife Refuge System Ad-
ministration Act of 1966 (16 U.S.C. 668dd).
(c) CONFORMING AMENDMENT.—The fourth sen-
tence of section 3 of the Act of August 25, 1916 (16
U.S.C. 3; 39 Stat. 535), is amended by striking all
through ‘‘no natural’’ and inserting in lieu thereof ‘‘No
natural’’.
(d) MODIFIED PROVISIONS.—The second sentence of
section 4 of the Act entitled ‘‘An Act authorizing the con-
struction of certain public works on rivers and harbors for
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flood control, and for other purposes’’ (16 U.S.C. 460d)
is amended by inserting ‘‘, except for commercial conces-
sions purposes’’ the first place it appears after ‘‘public in-
terest’’.
(e) SAVINGS.—
(1) IN GENERAL.—The repeal of any provision,
the superseding of any provision, and the amend-
ment of any provision, of an Act referred to in sub-
sections (a), (b), or (c) shall not affect the validity
of any authorizations entered into under any such
Act. The provisions of this part shall apply to any
such authorizations, except to the extent such provi-
sions are inconsistent with the express terms and
conditions of such authorizations.
(2) RIGHT OF RENEWAL.—The right of renewal
explicitly provided for by any concession contract
under any such provision shall be preserved for a
single renewal of a contract following the enactment
of, or concession authorization under, this part.
(3) VALUE
OF
CAPITAL
IMPROVEMENTS
OR
POSSESSORY INTEREST.—Nothing in this part shall
be construed to change the value of existing capital
improvements or possessory interest as identified in
concession contracts entered into before the enact-
ment of this Act.
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(4) ANILCA.—Nothing in this part shall be
construed to amend, supersede or otherwise affect
any provision of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3101 et seq.) relating
to revenue-producing visitor services.
(5) SKI AREA PERMITS.—No provision of this
part shall apply to any ski area permittee operating
on lands administered by the Forest Service.
(6) PROCEDURES FOR CONSIDERING EXISTING
CONCESSIONERS IN REISSUANCE OF CONTRACTS.—
In the case of any concession contract which has ex-
pired prior to the date of the enactment of this Act,
or within five years after the date of the enactment
of this Act, the incumbent concessioner shall be enti-
tled to a one-time bonus of five percent of the maxi-
mum points available in the reissuance of a previous
concession authorization. For any concession con-
tract entered into prior to the date of enactment of
this Act, which is projected to terminate five years
or later after the enactment of this Act, any conces-
sioner shall be entitled to a performance incentive as
outlined in this part. The concessioner shall be enti-
tled to an evaluation for the purposes of section
9306 of good for each year in which the Secretary
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concerned does not complete an evaluation as pro-
vided for in this part.
PART 2—NATIONAL FOREST SKI AREAS
SEC. 9321. PRIVATIZATION OF FOREST SERVICE SKI AREAS.
(a) AUTHORIZATION TO SELL.—
(1) IN
GENERAL.—Not later than five years
after the date of enactment of this part, the Sec-
retary of Agriculture shall offer to sell not less than
40 ski areas to the qualifying ski area operator. Any
such sale shall provide for continuation of public ac-
cess for diverse recreational uses. The Secretary
shall offer such areas for sale only after consultation
with State and local governments. Any such sale
shall be at fair market value and, subject to valid ex-
isting rights, shall transfer all right, title, and inter-
est of the United States in and to the lands. In any
such sale, the Secretary shall establish the minimum
acceptable bid based on the appraised fair market
value of such lands.
(2) QUALIFYING LANDS.—For the purposes of
subsection (a), lands are qualifying concession lands
if such lands are—
(A) subject to a lease on the date of the
enactment of this Act for use as a ski area with
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improvements with a fair market value greater
than $2,000,000; and
(B) located either adjacent to the boundary
of the Federal lands or adjacent to other sig-
nificant private inholdings.
(b) APPRAISAL.—
(1) IN GENERAL.—The Secretary shall provide
for an independent appraisal of the lands and inter-
ests therein to be transferred pursuant to subsection
(a). The appraiser shall—
(A) utilize nationally recognized appraisal
standards, including to the extent appropriate
the uniform appraisal standards for Federal
land acquisition; and
(B) not include the value of any improve-
ment placed on the lands by the concessioner.
(2) APPRAISAL REPORT.—The appraiser shall
submit a detailed report to the Secretary.
(c) ADDITIONAL LANDS.—In addition to the national
forest ski area, the Secretary may transfer by sale or ex-
change additional National Forest System lands for the
purpose of adding such lands to and operating them as
part of a ski area sold under subsection (a). The transfer
of additional lands under this subsection shall be in ac-
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cordance with this part and the laws generally applicable
to the National Forest System.
(d) USE OF PROCEEDS BY THE APPROPRIATE SEC-
RETARY.—The Secretary may retain 50 percent of the
funds generated through sales under this section to ac-
quire other high priority lands identified for acquisition
in any forest land and resource management plan. The
remaining 50 percent of such amount shall be deposited
in the Treasury as miscellaneous receipts.
SEC. 9322. SKI AREA PERMIT FEES AND WITHDRAWAL OF
SKI AREAS FROM OPERATION OF MINING
LAWS.
The National Forest Ski Area Permit Act of 1986
(16 U.S.C. 497b) is amended by adding at the end the
following new sections:
‘‘SEC. 4. SKI AREA PERMIT FEES.
‘‘(a) SKI AREA PERMIT FEE.—
‘‘(1) IN
GENERAL.—Except as provided by
paragraph (2), after the date of the enactment of
this section, the fee for all ski area permits on Na-
tional Forest System lands shall be calculated,
charged, and paid only as set forth in subsection (b).
‘‘(2) EXCEPTION.—Paragraph (1) does not
apply to any ski area where the existing permit in
effect on the date of enactment of this section speci-
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fies a different method to calculate the fee. In any
such situation the terms of such permit shall prevail,
unless the permit holder notifies the Forest Service
that the permit holder agrees to adopt the method
of fee calculation specified in this section. The For-
est Service should encourage such permit holders to
consider adopting the new method of fee calculation
in order to reduce its administrative costs.
‘‘(b) METHOD OF CALCULATION.—
‘‘(1) DETERMINATION
OF
ADJUSTED
GROSS
REVENUE SUBJECT TO FEE.—The Secretary of Agri-
culture shall calculate the ski area permit fee to be
charged a ski area permittee by first determining
the permittee’s adjusted gross revenue to be subject
to the permit fee. The permittee’s adjusted gross
revenue is equal to the sum of the following:
‘‘(A) The permittee’s gross revenues from
alpine lift ticket and alpine season pass sales
plus revenue from alpine ski school operations,
with such total multiplied by the permittee’s
slope transport feet percentage on National
Forest System lands.
‘‘(B) The permittee’s gross revenues from
nordic ski use pass sales and nordic ski school
operations, with such total multiplied by the
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permittee’s percentage of nordic trails on Na-
tional Forest System lands.
‘‘(C) The permittee’s gross revenues from
ancillary facilities physically located on National
Forest System lands, including all permittee or
subpermittee lodging, food service, rental shops,
parking, and other ancillary operations.
‘‘(2) DETERMINATION
OF
SKI
AREA
PERMIT
FEE.—The Secretary shall determine the ski area
permit fee to be charged a ski area permittee by
multiplying adjusted gross revenue determined under
paragraph (1) for the permittee by the following per-
centages for each revenue bracket and adding the
total for each revenue bracket:
‘‘(A) 1.5 percent of all adjusted gross reve-
nue below $3,000,000.
‘‘(B) 2.5 percent for adjusted gross reve-
nue between $3,000,000 and $15,000,000.
‘‘(C) 2.75 percent for adjusted gross reve-
nue between $15,000,000 and $50,000,000.
‘‘(D) 4.0 percent for the amount of ad-
justed gross revenue that exceeds $50,000,000.
‘‘(3) SLOPE TRANSPORT FEET PERCENTAGE.—
In cases where ski areas are only partially located on
National Forest System lands, the slope transport
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feet percentage on national forest land referred to in
paragraph (1) shall be calculated as generally de-
scribed in the Forest Service Manual in effect as of
January 1, 1992.
‘‘(4) ANNUAL
ADJUSTMENT
OF
ADJUSTED
GROSS REVENUE.—In order to insure that the ski
area permit fee set forth in this subsection remains
fair and equitable to both the United States and ski
area permittees, the Secretary shall adjust, on an
annual basis, the adjusted gross revenue figures for
each revenue bracket in subparagraphs (A) through
(D) of paragraph (2) by the percent increase or de-
crease in the national Consumer Price Index for the
preceding calendar year.
‘‘(c) MINIMUM FEE.—In cases where an area of Na-
tional Forest System land is under a ski area permit but
the permittee does not have revenue or sales qualifying
for fee payment pursuant to subsection (a), the permittee
shall pay an annual minimum fee of $2 for each acre of
National Forest System land under permit. Rental fees
imposed under this subsection shall be paid at the time
specified in subsection (d).
‘‘(d) TIME FOR PAYMENT.—The fee set forth in sub-
section (b) shall be due on June 1 of each year and shall
be paid or prepaid by the permittee on a monthly, quar-
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terly, annual, or other schedule as determined appropriate
by the Secretary in consultation with the permittee. It is
the intention of Congress that unless mutually agreed oth-
erwise by the Secretary and the permittee, the payment
or prepayment schedule shall conform to the permittee’s
schedule in effect prior to the enactment of this section.
To simplify bookkeeping and fee calculation burdens on
the permittee and the Forest Service, the Secretary shall
each year provide the permittee with a standardized form
and worksheets (including annual fee calculations brackets
and rates) to be utilized for fee calculation and submitted
with the fee payment. Information provided on such forms
shall be compiled by the Secretary annually and kept in
the Office of the Chief, United States Forest Service.
‘‘(e) DEFINITIONS.—To simplify bookkeeping and ad-
ministrative burdens on ski area permittees and the For-
est Service, as used in this section, the terms ‘revenue’
and ‘sales’ mean actual income from sales. Such terms do
not include sales of operating equipment, refunds, rent
paid to the permittee by sublessees, sponsor contributions
to special events or any amounts attributable to employee
gratuities, discounts, complimentary lift tickets, or other
goods or services (except for bartered goods) for which the
permittee does not receive money.
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‘‘(f) EFFECTIVE DATE FOR FEES.—The ski area per-
mit fees as provided under this section shall become effec-
tive on July 1, 1996, and cover receipts retroactive to July
1, 1995. If a ski area permittee has paid fees for the 12-
month period ending on June 30, 1996, under the grad-
uated rate fee system formula in effect prior to the date
of the enactment of this section, such fees shall be credited
toward the new ski area permit fee due for that period
under this section.
‘‘(g) REPORT ON FAIR MARKET VALUE.—No later
than five years after the date of enactment of this section
and every 10 years thereafter, the Secretary shall submit
to the Committee on Energy and Natural Resources of
the United States Senate and the Committees of Agri-
culture and Resources of the United States House of Rep-
resentatives a report analyzing whether the ski area per-
mit fee system legislated by this section is returning a fair
market value rental to the United States together with any
recommendations the Secretary may have for modifica-
tions in the system.
‘‘(h) TRANSITION PERIOD.—Where the new fee pro-
vided for in this section results in an increase in permit
fee greater than one percent of the permittee’s adjusted
gross revenue (as defined in subsection (b)(1)), the new
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fee shall be phased in over a three year period in a manner
providing for increases of approximately equal increments.
‘‘(i) APPLICABILITY OF NEPA TO REISSUANCE OF
SKI AREA PERMITS.—The reissuance of a ski area permit
to provide activities similar in nature and amount to the
activities provided under the previous permit is hereby de-
termined to be a categorical exclusion as provided for
under the National Environmental Policy Act of 1969 (42
U.S.C. 4331 et seq.).
‘‘SEC. 5. WITHDRAWAL OF SKI AREAS FROM OPERATION OF
MINING LAWS.
‘‘Subject to valid existing rights, all lands located
within the boundaries of ski area permits issued prior to,
on, or after the date of the enactment of this section pur-
suant to the authority of the Act of March 4, 1915 (16
U.S.C. 497), the Act of June 4, 1897 (16 U.S.C. 473 et
seq.), or section 3 of this Act are hereby and henceforth
automatically withdrawn from all forms of appropriation
under the mining laws and from disposition under all laws
pertaining to mineral and geothermal leasing. Such with-
drawal shall continue for the full term of the permit and
any modification, reissuance, or renewal of the permit.
Such withdrawal shall be canceled automatically upon ex-
piration or other termination of the permit unless, at the
request of the Secretary of Agriculture, the Secretary of
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the Interior determines to continue the withdrawal. Upon
cancellation of the withdrawal, the land shall be automati-
cally restored to all appropriation not otherwise restricted
under the public land laws.’’.
PART 3—DOMESTIC LIVESTOCK GRAZING
SEC. 9331. APPLICABLE REGULATIONS.
(a) BLM LANDS.—Except as otherwise provided by
this part, grazing of domestic livestock on lands adminis-
tered by the Bureau of Land Management shall be in ac-
cordance with part 1780 and part 4100 of title 43, Code
of Federal Regulations, as in effect on January 1, 1995.
(b) FOREST SERVICE LANDS.—Except as otherwise
provided by this part, grazing of domestic livestock on
lands administered by the Forest Service shall, to the ex-
tent possible, be in accordance with regulations, which the
Secretary of Agriculture shall promulgate, which are sub-
stantially similar to the regulations referred to in sub-
section (a). Regulations promulgated under this sub-
section may differ from the regulations referred to in sub-
section (a) to the extent necessary to conform to the laws
governing the National Forest System (other than this
part).
(c) FEDERAL LANDS.—For the purposes of this part,
the term ‘‘Federal lands’’ means lands administered by
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the Bureau of Land Management and lands administered
by the Forest Service.
SEC. 9332. FEES AND CHARGES.
(a) BASIC FEE.—The basic fee for each animal unit
month in a grazing fee year to be determined by the Bu-
reau of Land Management and the Forest Service shall
be equal to the 3-year average of the total gross value of
production for beef cattle, as compiled by the Economic
Research Service of the Department of Agriculture in ac-
cordance with subsection (b) on the basis of economic data
published by the Service in the Economic Indicators of the
Farm Sector: Cost of Production—Major Field Crops &
Livestock and Dairy for the 3 years preceding the grazing
fee year, multiplied by the 10 year average of the United
States Treasury Securities 6-month bill ‘‘new issue’’ rate
and divided by 12.
(b) CRITERIA.—The Economic Research Service of
the Department of Agriculture shall continue to compile
the gross production value of production of beef cattle as
reported in a dollar per bred cow basis in the ‘‘U.S. Cow-
Calf Production Cash Costs and Returns’’.
(c) SURCHARGE.—
(1) IN GENERAL.—A surcharge shall be added
to the grazing fee billings for authorized grazing of
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livestock owned by persons other than the permittee
or lessee except where—
(A) such use is made by livestock owned by
a spouse, child, or grandchild or their respective
spouse of the permittee and lessee; or
(B) the permittee or lessee is unable to
make full grazing use, as authorized by a graz-
ing permit or lease, due to the infirmed condi-
tion or death of the permittee or lessee.
(2) TREATMENT
AS
ADDITIONAL
FEE.—The
surcharge shall be over and above any other fees
that may be charged for using public land forage.
(3) PRIOR
PAYMENT
REQUIRED.—Surcharges
shall be paid prior to grazing use.
(4) AMOUNT.—The surcharge for authorized
pasturing of livestock owned by persons other than
the permittee or lessee shall be equal to 25 percent
of the difference between the current year’s Federal
grazing fee and the prior year’s private grazing land
lease rate per AUM for the appropriate State as
compiled by the National Agricultural Statistics
Service.
(5) IN GENERAL.—The Bureau of Land Man-
agement and the Forest Service shall make a deter-
mination under subsection (a) based on the following
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information gathered by the National Agriculture
Statistics Service of the Department of Agriculture
with respect to the largest single grazing lease of
each grazing operator (in terms of dollars):
(A) Whether the operator charged—
(i) per acre;
(ii) per head per month;
(iii) per pound of gain;
(iv) per hundredweight of gain; or
(v) by another measure, and the rate
charged.
(B)(i) The estimated average pounds
gained per season for the grazing lease.
(ii) The total dollar amount estimated to
be realized from the grazing lease.
(iii) Grazing lease acreage.
(iv) The State and county where the graz-
ing lease is located.
(C) The classes of livestock grazed.
(D) The term of the grazing lease.
(E)(i) Whether grazing lease payments are
paid if no grazing occurred.
(ii) Whether the grazing lease contains a
take or pay provision.
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(F) Additional information on whether the
following are provided by the landlord on a 5-
year basis:
(i) Fencing maintenance.
(ii) Animal management and over-
sight.
(iii) Water maintenance.
(iv) Salt and minerals.
(v) Other service (specified).
(vi) No services.
(vii) Hunting.
(viii) Fishing.
(ix) Other (specified).
(x) None.
(6) PRIVATE
NATIVE
RANGELAND.—For the
purpose of determining rates for grazing leases of
private native rangeland, rates for irrigated pasture,
crop aftermath, and dryland winter wheat shall be
excluded.
SEC. 9333. ANIMAL UNIT MONTH.
(a) DEFINITION
OF ANIMAL UNIT MONTH.—The
term ‘‘animal unit month’’ means 1 month’s use and occu-
pancy of range by—
(1) 1 cow, bull, steer, heifer, horse, burro, or
mule, 7 sheep, or 7 goats, each of which is 6 months
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of age or older on the date on which the animal be-
gins grazing on Federal land;
(2) any such animal regardless of age if the
animal is weaned on the date on which the animal
begins grazing on Federal land; and
(3) any such animal that will become 12
months of age during the period of use authorized
under a grazing permit or grazing lease.
(b) LIVESTOCK NOT COUNTED.—There shall not be
counted as an animal unit month the use of Federal land
for grazing by an animal that is less than 6 months of
age on the date on which the animal begins grazing on
Federal land and is the natural progeny of an animal on
which a grazing fee is paid if the animal is removed from
the Federal land before becoming 12 months of age.
SEC. 9334. TERM OF GRAZING PERMITS OR GRAZING
LEASES.
A grazing permit or grazing lease shall be issued for
a term of 15 years unless—
(1) the land is pending disposal;
(2) the land will be devoted to a public purpose
that precludes grazing prior to the end of 15 years;
or
(3) the Secretary determines that it would be in
the best interest of sound land management to speci-
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fy a shorter term, if the decision to specify a shorter
term is supported by appropriate and accepted re-
source analysis and evaluation.
SEC. 9335. CONFORMANCE WITH LAND USE PLAN.
Livestock grazing activities and management actions
approved by the Secretary of the Interior or the Secretary
of Agriculture, as the case may be—
(1) may include any such activities as are not
clearly prohibited by a land use plan; and
(2) shall not require any consideration under
the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) in addition to the studies sup-
porting the land use plan.
SEC. 9336. EFFECTIVE DATE.
This part shall apply to grazing on Federal lands on
and after the date of the enactment of this Act.
PART 
4—REGIONAL 
DISPOSAL 
FACILITY 
OF
SOUTHWESTERN LOW LEVEL RADIOACTIVE
WASTE DISPOSAL COMPACT
SEC. 9341. CONVEYANCE OF PROPERTY.
(a) CONVEYANCE.—Upon the tendering of $500,000
on behalf of the State of California and the release of the
United States by the State of California from any liability
for claims relating to the property described in subsection
(b), all right, title and interest of the United States in
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and to said lands and improvements thereon are conveyed
to the Department of Health Services of the State of Cali-
fornia: Provided, That the property shall revert to the
United States if the property is not used as a low-level
radioactive waste disposal facility.
(b) DESCRIPTION.—The lands conveyed are those de-
picted on a map designated USGS 7.5 minute quadrangle,
west of Flattop Mtn, CA 1984, entitled ‘‘Location Map
for Ward Valley Site’’, located in San Bernardino Merid-
ian, Township 9 North, Range 19 East.
(c) TITLE.—The Secretary of the Interior shall issue
evidence of title pursuant to this Act notwithstanding any
other provision of law. The Southwestern Low-Level Ra-
dioactive Waste Disposal Compact’s Ward Valley regional
disposal facility and transfer of the land are in compliance
with any applicable provisions of section 7 of Endangered
Species Act of 1973 (16 U.S.C. 1536) and the National
Environmental Policy Act of 1969 (42 U.S.C. 4332).
(d) DEPOSIT OF FUNDS.—Sums received pursuant to
subsection (a) shall be deposited as miscellaneous receipts
in the Treasury of the United States.
(e) EXPIRATION OF AUTHORITY.—This authority ex-
pires October 1, 2010.
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SEC. 9342. CONVEYANCE OF EASEMENTS.
Concurrent with the conveyance property described in
section 9341(b) to the Department of Health Services of
the State of California, all necessary easements for utili-
ties and ingress and egress to said lands described in sec-
tion 9341(b) of this Act and the right to improve those
easements, are also conveyed to the Department of Health
Services of the State of California: Provided, That the De-
partment of Health Services right-of-way easements revert
to the United States if the lands referenced in section
9341 are not licensed and used as a low-level radioactive
waste disposal facility.
Subtitle D—Territories
PART 1—COMMONWEALTH OF THE NORTHERN
MARIANA ISLANDS
SEC. 9401. TERMINATION OF ANNUAL DIRECT GRANT AS-
SISTANCE.
(a) TERMINATION.—Pursuant to section 704(d) of
the Covenant to Establish a Commonwealth of the North-
ern Mariana Islands in Political Union with the United
States of America (48 U.S.C. 1681 note), the annual pay-
ments under section 702 of the Covenant shall terminate
as of September 30, 1995.
(b) REPEAL.—Sections 3 and 4 of the Act of March
24, 1976 (Public Law 94–241; 48 U.S.C. 1681 note), as
amended, are repealed, effective October 1, 1995.
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(c) REMOVAL OF AUTHORITY TO OBLIGATE CERTAIN
FUNDS.—Amounts appropriated under title VII of the
Covenant to Establish a Commonwealth of the Northern
Mariana Islands in Political Union with the United States
of America, and under sections 3 and 4 of Public Law
94–241 (48 U.S.C. 1681), which are not obligated as of
the date of the enactment of this Act may not be obligated
after such date.
(d) CONFORMING AMENDMENTS.—Section 5 of such
Act (48 U.S.C. 1681 note) is amended—
(1) by striking out ‘‘agreement identified in sec-
tion 3 of this Act’’ and inserting in lieu thereof
‘‘Agreement of the Special Representatives on Fu-
ture United States Financial Assistance for the Gov-
ernment of the Northern Mariana Islands, executed
July 10, 1985, between the special representative of
the President of the United States and the special
representatives of the Governor of the Northern
Mariana Islands’’; and
(2) by striking out ‘‘Committee on Interior and
Insular Affairs’’ and inserting in lieu thereof ‘‘Com-
mittee on Resources’’.
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PART 2—TERRITORIAL ADMINISTRATIVE
CESSATION ACT
SEC. 9421. SHORT TITLE.
This part may be cited as the ‘‘Territorial Adminis-
trative Cessation Act’’.
SEC. 9422. CONGRESSIONAL FINDINGS.
The Congress finds that—
(1) each of the four political subdivisions of the
United Nations Trust Territory of the Pacific Is-
lands, known as the Japanese Mandated Islands,
have successfully entered into distinct self-governing
entities, thereby culminating in the final termination
of the Trusteeship and the end of the trusteeship re-
sponsibilities of the United States as administering
authority of the Trust Territory on October 1, 1994;
(2) the United States territories have developed
progressively increased local self-government over
the past five decades;
(3) the territories predominantly deal directly
with Federal agencies and departments, as a State
would;
(4) the administering responsibilities of the De-
partment of the Interior with respect to the insular
areas has declined substantially during the past five
decades; and
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(5) Federal-territorial relations can be enhanced
and Federal fiscal conditions improved by the elimi-
nation of unnecessary Federal bureaucracy.
SEC. 9423. ELIMINATION OF OFFICE OF TERRITORIAL AND
INTERNATIONAL AFFAIRS.
(a) IN GENERAL.—The Office of Territorial and
International Affairs of the Department of the Interior,
established pursuant to the Order of the Secretary of the
Interior 3046, of February 14, 1980, as amended, is here-
by abolished.
(b) TERMINATION OF POSITION OF ASSISTANT SEC-
RETARY.—Section 5315 of title 5, United States Code, is
amended by striking ‘‘Assistant Secretaries of the Interior
(6)’’ and inserting ‘‘Assistant Secretaries of the Interior
(5)’’.
(c) EFFECTIVE
DATE.—Subsection (a) and the
amendment made by subsection (b) shall take effect on
the first day of the first fiscal year that begins after the
date of the enactment of this Act.
SEC. 9424. CERTAIN ACTIVITIES NOT FUNDED.
Amounts may not be made available for the following
program activities for assistance to territories for fiscal
years beginning after September 30, 1995, as identified
under the appropriations account numbered 14–0412–0–
1–808:
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(1) technical assistance, item 00.12;
(2) maintenance assistance, item 00.14;
(3) disaster fund, item 00.17; and
(4) insular management controls, item 00.19.
Subtitle E—Minerals
PART 1—HARDROCK MINING
SEC. 9501. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds and declares that—
(1) a secure and reliable supply of locatable
minerals is essential to the industrial base of the
United States, national security, and balance of
trade;
(2) many of the deposits of locatable minerals
that may be commercially developed are on Federal
lands as that term is defined in this Act, and are
difficult and expensive to discover, mine, extract and
process;
(3) the national need for locatable minerals will
continue to expand, and without a strong mining in-
dustry the demand for the minerals will exceed do-
mestic sources of supply;
(4) mining of locatable minerals is an extremely
high-risk, capital-intensive endeavor, which, to at-
tract necessary investment, requires certainty and
predictability in access to Federal lands in establish-
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ment of mining titles, and in the rights of owners of
mining claims or sites to develop minerals;
(5) the national interest is to foster and encour-
age private enterprise in the development of a do-
mestic minerals industry to maintain and create
high-paying jobs and the various Federal, State, and
local taxes paid by the mining industry in the
United States;
(6) changes in the general mining laws of the
United States to provide more direct economic re-
turn to the United States and greater protection of
public resources are desirable, so long as these
changes do not act as a disincentive to development
of minerals, adversely affect employment in the min-
ing industry or in industries that provide goods and
services required for mining activities, interfere with
a secure and reliable domestic supply of minerals, or
adversely affect the balance of trade of the United
States; and
(7) mining claims, mill sites and tunnel sites lo-
cated under the general mining laws are property in-
terests, and any law or regulation that substantially
impairs existing property rights may expose the Fed-
eral Government to takings claims under the fifth
amendment to the United States Constitution.
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(b) PURPOSE.—It is the purpose of this subtitle to—
(1) affirm and maintain the policy established
in section 2 of the Mining and Minerals Policy Act
of 1970;
(2) promote exploration for and the develop-
ment of a secure and reliable domestic source of
locatable minerals;
(3) provide for increased Federal revenue from
the location and production of locatable minerals
from Federal lands through patent payments and
royalties; and
(4) recognize that unpatented mining claims,
mill sites and tunnel sites are property rights in the
fullest sense and avoid, to the greatest extent pos-
sible, claims of takings of existing property rights
under the general mining laws that could require
compensation under the fifth amendment to the
United States Constitution.
SEC. 9502. PATENTS UNDER THE GENERAL MINING LAW.
(a) IN GENERAL.—Any patent issued by the United
States under the general mining laws after the date of
the enactment of this Act for any interest in land covered
by a mining claim or site under such laws shall be issued
only—
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(1) upon payment by the owner of the mining
claim or site of the fair market value for the interest
in the land owned by the United States exclusive of,
and without regard to, the mineral deposits in the
land or the use of such land for mineral activities
unless the requirements of subsection (b) are met,
and
(2) subject to a reservation by the United
States of the royalty provided in section 9503(a),
unless the requirements in subsection (b) are met.
(b) PATENT TRANSITION.—(1) Subsection (a) shall
not apply to any mining claim or site if—
(A) the claimant establishes that the claim or
site constituted a valid mining claim as of the date
of the enactment of this Act; and
(B) the claimant has filed a patent application
or mineral survey application prior to the date of the
enactment of this Act, or files such an application
with the Bureau of Land Management before the
date 2 years after the date of the enactment of this
Act. A patent application or mineral survey applica-
tion referred to in this subparagraph shall be
deemed timely, notwithstanding that the application
may be corrected or supplemented and resubmitted
thereafter.
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(2) During the 2-year period in paragraph (1)(B), or
while there is pending a mineral survey or patent applica-
tion to which this subsection applies, an owner of the min-
ing claim or site may continue work on a mining claim
or site directed toward establishment and confirmation of
entitlement to a patent, and may amend the application
as necessary.
(3) Where access to any mining claim or site has been
denied or impeded by the action or inaction of any Federal
official, agency, or court during all or part of the 5-year
period preceding the date of enactment of this Act, includ-
ing any mining claim or site within the area described in
section 106 of Public Law 103–433, and the mining claim
or site may require further exploration or development in
order for the claimant to file a patent application or a
mineral survey application and otherwise meet the require-
ments of paragraph (1), the claimant may, within 1 year
after the date of enactment of this Act, submit a certified
written statement to the Secretary describing the access
denial or impediment, and shall then have a period of 10
years from the date of enactment of this Act or the termi-
nation of such access denial or impediment, whichever oc-
curs first, to conduct such mineral exploration or develop-
ment activities, file a patent application or mineral survey
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application, and otherwise meet the requirements of para-
graph (1).
(c) PAYMENT PLAN.—(1) Any owner grossing less
than $500,000 annually shall qualify for a payment plan.
Upon completion of the patent process, the owner of the
mining claim may purchase the surface estate under the
following conditions:
(A) Payment to be amortized over 5 years with
5 equal annual payments, including principal and in-
terest.
(B) Interest shall be calculated per annum at a
rate of 2 percent over the ‘‘Treasury Current Value
of Funds Rate’’ on the date of execution of the pay-
ment plan agreement.
(2) The purchaser shall be notified by certified mail
after 60 days of delinquent payments and have 90 days
from receipt of notification to correct the delinquency. Re-
possession shall be by and under the laws of repossession,
foreclosure, and replevin of the State wherein the land is
situated.
(d) REPEAL OF PATENTING MORATORIUM; PROCESS-
ING OF PATENT APPLICATIONS.—Sections ll and ll
of Public Law ll are hereby repealed. The Secretary
of the Interior shall diligently process all patent applica-
tions under the general mining laws pending on the date
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of enactment and shall make determinations for all such
applications regarding patent issuance within 2 years.
SEC. 9503. ROYALTY UNDER THE GENERAL MINING LAW.
(a) IN GENERAL.—The production and sale of
locatable minerals (including associated minerals) from
any unpatented mining claim (other than those from Fed-
eral lands to which subsection 9502(b) applies) or any
mining claim patented under section 9502(a) shall be sub-
ject to a royalty of 3.5 percent on the net proceeds from
such production mined and sold from such claim.
(b) ROYALTY EXCLUSION.—(1) The royalty payable
under this section shall be waived for any person or cor-
poration with annual net proceeds from mineral produc-
tion subject to subsection (a) of less than $50,000.
(2) Where mining operations subject to this section
are conducted in 2 or more places by 1 person or corpora-
tion, the operations shall be considered a single operation
the aggregate net proceeds from which shall be subject
to the $50,000 limitation set forth in this subsection.
(3) No royalty shall be payable under this section
with respect to minerals processed at a facility by the same
person or entity which extracted the minerals if an urban
development action grant has been made under section
119 of the Housing and Community Development Act of
1974 with respect to any portion of such facility.
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(4) The obligation to pay royalties under this section
shall accrue only upon the sale of locatable minerals or
mineral products produced from a mining claim subject
to such royalty, and not upon the stockpiling of the same
for future processing.
(c) DEFINITIONS.—For the purposes of this subtitle:
(1) The term ‘‘net proceeds’’ means gross yield,
less the sum of the following deductions for costs in-
curred prior to sale or value determination, and none
other:
(A) The actual cost of extracting the
locatable mineral.
(B) The actual cost of transporting the
locatable mineral from the claim to the place or
places of reduction, beneficiation, refining, and
sale.
(C) The actual cost of crushing, process-
ing, reduction, beneficiation, refining, and sale
of the locatable mineral.
(D) The actual cost of marketing and de-
livering the locatable mineral and the conver-
sion of the locatable mineral into money.
(E) The actual cost of maintenance and re-
pairs of—
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works, plants, and facilities listed in subpara-
graph (E). The annual depreciation charge shall
consist of amortization of the original cost in
the manner consistent with the Internal Reve-
nue Code of 1986, as amended from time to
time. The probable life of the property rep-
resented by the original cost must be considered
in computing the depreciation charge.
(K) All money expended for premiums for
industrial insurance, and the owner paid cost of
hospital and medical attention and accident
benefits and group insurance for all employees
engaged in the production or processing of
locatable minerals.
(L) All money paid as contributions or
payments under State unemployment com-
pensation law, all money paid as contributions
under the Federal Social Security Act, and all
money paid to State government in real prop-
erty taxes and severance or other taxes meas-
ured or levied on production, or Federal excise
tax payments and payments as fees or charges
for use of the Federal lands from which the
locatable minerals are produced.
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(M) The actual cost of the developmental
work in or about the mine or upon a group of
mines when operated as a unit.
(2) The term ‘‘gross yield’’ shall having the fol-
lowing meaning:
(A) In the case of sales of gold and silver
ore, concentrates or bullion, or the sales of
other locatable minerals in the form of ore or
concentrates, the term ‘‘gross yield’’ means the
actual proceeds of sale of such ore, concentrates
or bullion.
(B) In the case of sales of beneficiated
products from locatable minerals other than
those subject to subparagraph (A) (including
cathode, anode or copper rod or wire, or other
products fabricated from the locatable min-
erals), the term ‘‘gross yield’’ means the gross
income from mining derived from the first com-
mercially marketable product determined in the
same manner as under section 613 of the Inter-
nal Revenue Code of 1986.
(C) If ore, concentrates, beneficiated or
fabricated products, or locatable minerals are
used or consumed and are not sold in an arms
length transaction, the term ‘‘gross yield’’
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means the reasonable fair market value of the
ore, concentrates, beneficiated or fabricated
products at the mine or wellhead determined
from the first applicable of the following:
(i) Published or other competitive sell-
ing prices of locatable minerals of like kind
and grade.
(ii) Any proceeds of sale.
(iii) Value received in exchange for
any thing or service.
(iv) The value of any locatable min-
erals in kind or used or consumed in a
manufacturing process or in providing a
service.
Without limiting the foregoing, the profits or
losses incurred in connection with forward
sales, futures or commodity options trading,
metal loans, or any other price hedging or spec-
ulative activity or arrangement shall not be in-
cluded in gross yield.
(3) The term ‘‘Secretary’’ means the Secretary
of the Interior.
(d) LIMITATIONS AND ALLOCATIONS OF NET PRO-
CEEDS, GROSS YIELD, AND ALLOWABLE COSTS.—(1) The
deductions listed in subsection (c)(1) are intended to allow
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a reasonable allowance for overhead. Such deductions shall
not include any expenditures for salaries, or any portion
of salaries, of any person not actually engaged in—
(A) the working of the mine;
(B) the operating of the leach pads, ponds,
plants, mills, smelters, or reduction works;
(C) the operating of the facilities or equipment
for transportation; or
(D) superintending the management of any of
those operations described in subparagraphs (A)
through (C).
(2) Ores or solutions of locatable minerals subject to
the royalty requirements of this section may be extracted
from mines comprised of mining claims and lands other
than mining claims and ore or solutions of locatable min-
erals subject to the royalty requirements of this section
may be commingled with ores or solutions from lands
other than mining claims. In any such case, for purposes
of determining the amount of royalties payable under this
section—
(A) the operator shall first sample, weigh or
measure, and assay the same in accordance with ac-
cepted industry standards; and
(B) gross yield, allowable costs and net pro-
ceeds for royalty purposes shall be allocated in pro-
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portion to mineral products recovered from the min-
ing claims in accordance with accepted industry
standards.
(e) LIABILITY
FOR
ROYALTY
PAYMENTS.—The
owner or co-owners of a mining claim subject to a royalty
under this section shall be liable for such royalty to the
extent of the interest in such claim owned. As used in this
subsection, the terms ‘‘owner’’ and ‘‘co-owner’’ mean the
person or persons owning the right to mine locatable min-
erals from such claim and receiving the net proceeds of
such sale. No person who makes any royalty payment at-
tributable to the interest of the owner or co-owners liable
therefor shall become liable to the United States for such
royalty as a result of making such payment on behalf of
such owner or co-owners.
(f) TIME AND MANNER OF PAYMENT.—(1) Royalty
payments for production from any mining claim subject
to the royalty payable under this section shall be due to
the United States at the end of the month following the
end of the calendar quarter in which the net proceeds from
the sale of such production are received by the owner or
co-owners. Royalty payments may be made based upon
good faith estimates of the gross yield, net proceeds and
the quantity of ore, concentrates, or other beneficiated or
fabricated products of locatable minerals, subject to ad-
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justment when the actual annual gross yield, net proceeds
and quantity are determined by the owner of the mining
claim or site or co-owners.
(2) Each royalty payment or adjustment shall be ac-
companied by a statement containing each of the follow-
ing:
(A) The name and Bureau of Land Manage-
ment serial number of the mining claim or claims
from 
which 
ores, 
concentrates, 
solutions 
or
beneficiated products of locatable minerals subject to
the royalty required in this section were produced
and sold for the period covered by such payment or
adjustment.
(B) The estimated (or actual, if determined)
quantity of such ore, concentrates, solutions or
beneficiated or fabricated products produced and
sold from such mining claim or claims for such pe-
riod.
(C) The estimated (or actual, if determined)
gross yield from the production and sale of such ore,
concentrates, solutions or beneficiated products for
such period.
(D) The estimated (or actual, if determined)
net proceeds from the production and sale of such
ores, concentrates, solutions or beneficiated products
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for such period, including an itemization of the ap-
plicable deductions described in subsection (c)(1).
(E) The estimated (or actual, if determined)
royalty due to the United States, or adjustment due
to the United States or such owner or co-owners, for
such period.
(3) In lieu of receiving a refund under subsection (h),
the owner or co-owners may elect to apply any adjustment
due to such owner or co-owners as an offset against royal-
ties due from such owner or co-owners to the United
States under this Act, regardless of whether such royalties
are due for production and sale from the same mining
claim or claims.
(g) RECORDKEEPING
AND REPORTING REQUIRE-
MENTS.—(1) An owner, operator, or other person directly
involved in the conduct of mineral activities, transpor-
tation, purchase, or sale of locatable minerals, con-
centrates, or products derived therefrom, subject to the
royalty under this section, through the point of royalty
computation, shall establish and maintain any records,
make any reports, and provide any information that the
Secretary may reasonably require for the purposes of im-
plementing this section or determining compliance with
regulations or orders under this section. Upon the request
of the Secretary when conducting an audit or investigation
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pursuant to subsection (i), the appropriate records, re-
ports, or information required by this subsection shall be
made available for inspection and duplication by the Sec-
retary.
(2) Records required by the Secretary under this sec-
tion shall be maintained for 3 years after the records are
generated unless the Secretary notifies the record holder
that he or she has initiated an audit or investigation spe-
cifically identifying and involving such records and that
such records must be maintained for a longer period.
When an audit or investigation is under way, such records
shall be maintained until the earlier of the date that the
Secretary releases the record holder of the obligation to
maintain such records or the date that the limitations pe-
riod applicable to such audit or investigation under sub-
section (i) expires.
(h) INTEREST ASSESSMENTS.—(1) If royalty pay-
ments under this section are not received by the Secretary
on the date that such payments are due, or if such pay-
ments are less than the amount due, the Secretary shall
charge interest on such unpaid amount. Interest under
this subsection shall be computed at the rate published
by the Department of the Treasury as the ‘‘Treasury Cur-
rent Value of Funds Rate.’’ In the case of an
underpayment or partial payment, interest shall be com-
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puted and charged only on the amount of the deficiency
and not on the total amount, and only for the number
of days such payment is late. No other late payment or
underpayment charge or penalty shall be charged with re-
spect to royalties under this section.
(2) In any case in which royalty payments are made
in excess of the amount due, or amounts are held by the
Secretary pending the outcome of any appeal in which the
Secretary does not prevail, the Secretary shall promptly
refund such overpayments or pay such amounts to the per-
son or persons entitled thereto, together with interest
thereon for the number of days such overpayment or
amounts were held by the Secretary, with the addition of
interest charged against the United States computed at
the rate published by the Department of the Treasury as
the ‘‘Treasury Current Value of Funds Rate.’’
(i) AUDITS, PAYMENT
DEMANDS
AND
LIMITA-
TIONS.—(1) The Secretary may conduct, after notice, any
audit reasonably necessary and appropriate to verify the
payments required under this section.
(2) The Secretary shall send or issue any billing or
demand letter for royalty due on locatable minerals pro-
duced and sold from any mining claim subject to royalty
required by this section not later than 3 years after the
date such royalty was due and must specifically identify
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the production involved, the royalty allegedly due and the
basis for the claim. No action, proceeding or claim for roy-
alty due on locatable minerals produced and sold, or relat-
ing to such production, may be brought by the United
States, including but not limited to any claim for addi-
tional royalties or claim of the right to offset the amount
of such additional royalties against amounts owed to any
person by the United States, unless judicial suit or admin-
istrative proceedings are commenced to recover specific
amounts claimed to be due prior to the expiration of 3
years from the date such royalty is alleged to have been
due.
(j) TRANSITIONAL RULES.—Any mining claim for
which a patent is issued pursuant to section 9502(b) shall
not be subject to the obligation to pay the royalty pursu-
ant to this section. Royalty payments for any claim proc-
essed under section 9502(b) shall be suspended pending
final determination of the right to patent. For any such
claim that is determined not to qualify for the issuance
of a patent under section 9502(b), royalties shall be pay-
able under this section on production after the date of en-
actment of this Act, plus interest computed at the rate
published by the Department of the Treasury as the
‘‘Treasury Current Value of Funds Rate’’ on production
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after such date of enactment and before the date of such
determination.
(k) DISBURSEMENT
OF REVENUES.—The receipts
from royalties collected under this section shall be dis-
bursed as follows:
(1) Two-thirds of such receipts shall be paid
into the Treasury of the United States and deposited
as miscellaneous receipts.
(2) One-third of such receipts shall be paid by
the Secretary of the Treasury to the State in which
the mining claim from which production occurred is
located.
(l) NO IMPLIED COVENANTS.—The owner of a min-
ing claim subject to the provisions of this title shall have
no obligation, express or implied, to explore for, develop,
produce or market locatable minerals as a result of the
obligation to pay a royalty hereunder, and the timing, na-
ture, extent and manner of exploring, developing, mining
and marketing such locatable minerals shall be in the sole
discretion of the claim owner.
SEC. 9504. MINERAL MATERIALS.
(a) DETERMINATIONS.—Section 3 of the Act of July
23, 1955 (30 U.S.C. 611), is amended as follows:
(1) Insert ‘‘(a)’’ before the first sentence.
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(2) Add the following new subsection at the end
thereof:
‘‘(b)(1) Subject to valid existing rights, after the date
of enactment of this subsection, notwithstanding the ref-
erence to common varieties in subsection (a) and to the
exception to such term relating to a deposit of materials
with some property giving it distinct and special value, all
deposits of mineral materials referred to in such sub-
section, including the block pumice referred to in such
subsection, shall be subject to disposal only under the
terms and conditions of the Materials Act of 1947.
‘‘(2) For purposes of paragraph (1), the term ‘valid
existing rights’ means that a mining claim located for any
such mineral material had some property giving it the dis-
tinct and special value referred to in subsection (a), or
as the case may be, met the definition of block pumice
referred to in such subsection, was properly located and
maintained under the general mining laws prior to the
date of the enactment of this subsection, and was sup-
ported by a discovery of a valuable mineral deposit within
the meaning of the general mining laws as in effect imme-
diately prior to such date of enactment and that such
claim continues to be valid under this Act.’’.
(b) IDENTIFIED DEPOSITS.—In order to assure that
the Secretary has the authority to provide for the develop-
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ment of mineral materials which, in order to justify the
investment necessary for the development of the appro-
priate mine, quarry or other workings and related facili-
ties, may require longer and more secure tenure than is
provided by sales contracts under the Act entitled ‘‘An Act
to provide for the disposal of materials on the public lands
of the United States’’, approved July 31, 1947 (30 U.S.C.
602), and in order to provide flexibility with regard to the
manner of disposition of mineral materials section 2 of
such Act is amended by adding at the end the following:
‘‘(b) IDENTIFIED DEPOSITS.—(1) Lands known to
contain valuable deposits of mineral materials subject to
this Act and subsequent amendments and not covered by
any contract, permit, or lease under this section shall also
be subject to disposition by lease under this Act by the
Secretary of the Interior through advertisement, competi-
tive bidding, or such other methods as he may by general
regulations adopt, and in such reasonably compact areas
as he shall fix.
‘‘(2) All leases will be conditioned upon—
‘‘(A) the payment by the lessee of such royalty
as may be fixed in the lease, not less than two per-
cent of the quantity or gross value of the output of
mineral materials, and
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‘‘(B) the payment in advance of a rental of 25
cents per acre for the first calendar year or fraction
thereof; 50 cents per acre for the second, third,
fourth, and fifth years, respectively; and $1 per acre
per annum thereafter during the continuance of the
lease, such rental for that year being credited
against royalties accruing for that year.
‘‘(3)(A) Any lease issued under this subsection shall
be for a term of 20 years and so long thereafter as the
lessee complies with the terms and conditions of the lease
and upon the further condition that at the end of each
20-year period succeeding the date of the lease such rea-
sonable adjustment of the terms and conditions thereof
may be made therein as may be prescribed by the Sec-
retary of the Interior unless otherwise provided by law at
the expiration of such periods.
‘‘(B) Leases shall be conditioned upon a minimum
annual production or the payment of a minimum royalty
in lieu thereof, except when production is interrupted by
strikes, the elements, or casualties not attributable to the
lessee.
‘‘(C) The Secretary of the Interior may permit sus-
pension of operations under any such leases when market-
ing conditions are such that the leases cannot be operated
except at a loss.
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‘‘(D) The Secretary upon application by the lessee
prior to the expiration of any existing lease in good stand-
ing shall amend such lease to provide for the same tenure
and to contain the same conditions, including adjustment
at the end of each 20-year period succeeding the date of
said lease, as provided for in this subsection.
‘‘(c) OTHER LANDS.—(1) The Secretary of the Inte-
rior is hereby authorized, under such rules and regulations
as he may prescribe, to grant to any qualified applicant
a prospecting permit which shall give the exclusive right
to prospect for mineral materials in lands belonging to the
United States which are not subject to subsection (b), and
are not covered by a contract, permit, or lease under this
Act, except that a prospecting permit shall not exceed a
period of 2 years and the area to be included in such a
permit shall not exceed 2,560 acres of land in reasonably
compact form.
‘‘(2) The Secretary of the Interior shall reserve and
may exercise the authority to cancel any prospecting per-
mit upon failure by the permittee to exercise due diligence
in the prosecution of the prospecting work in accordance
with the terms and conditions stated in the permit, and
shall insert in every such permit issued under the provi-
sions of this Act appropriate provisions for its cancellation
by him.
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‘‘(3) Upon showing to the satisfaction of the Sec-
retary of the Interior that valuable deposits of one of the
mineral materials subject to the Materials Act of 1947
have been discovered by the permittee within the area cov-
ered by his permit, and that such land is valuable therefor,
the permittee shall be entitled to a lease for any or all
of the land embraced in the prospecting permit, at a roy-
alty of not less than two percent of the quantity or gross
value of the output of the mineral materials at the point
of shipment to market, such lease to be taken in compact
form by legal subdivisions of the public land surveys, or
if the land be not surveyed, by survey executed at the cost
of the permittee in accordance with regulations prescribed
by the Secretary of the Interior.’’.
(d) MINERAL
MATERIALS
DISPOSAL
CLARIFICA-
TION.—Section 4 of the Act of July 23, 1955 (30 U.S.C.
612), as amended as follows:
(1) In subsection (b) insert ‘‘and mineral mate-
rial’’ after ‘‘vegetative’’.
(2) In subsection (c) insert ‘‘and mineral mate-
rial’’ after ‘‘vegetative’’.
(e) CONFORMING AMENDMENT.—Section 1 of the
Act of July 31, 1947, entitled ‘‘An Act to provide for the
disposal of materials on the public lands of the United
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States’’ (30 U.S.C. 601 and following) is amended by
striking ‘‘common varieties of’’ in the first sentence.
(f) SHORT TITLES.—
(1) SURFACE
RESOURCES.—The Act of July
23, 1955, is amended by inserting after section 7
the following new section:
‘‘SEC. 8. This Act may be cited as the ‘Surface Re-
sources Act of 1955’.’’.
(2) MINERAL MATERIALS.—The Act of July 31,
1947, entitled ‘‘An Act to provide for the disposal of
materials on the public lands of the United States’’
(30 U.S.C. 601 and following) is amended by insert-
ing after section 4 the following new section:
‘‘SEC. 5. This Act may be cited as the ‘Materials Act
of 1947’.’’.
(g) REPEALS.—(1) Subject to valid existing rights,
the Act of August 4, 1892 (27 Stat. 348, 30 U.S.C. 161),
commonly known as the Building Stone Act, is hereby re-
pealed.
(2) Subject to valid existing rights, the Act of Janu-
ary 31, 1901 (30 U.S.C. 162), commonly known as the
Saline Placer Act, is hereby repealed.
(h) AUTHORIZATION
FOR DISPOSAL
OF MINERAL
MATERIALS BY CONTRACT.—Section 2(a) of the Act enti-
tled ‘‘An Act to provide for the disposal of materials on
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the public lands of the United States’’, approved July 31,
1947 (30 U.S.C. 602(a)), is amended—
(1) by striking the period at the end of para-
graph (3) and inserting ‘‘or, if’’; and
(2) by adding after paragraph (3) the following:
‘‘(4) the material is a mineral material.’’.
(i) SODIUM.—Section 24 of the Mineral Leasing Act
(30 U.S.C. 181 et seq.) is amended by inserting after ‘‘2
per centum’’ in each place it appears the following: ‘‘and
not greater than five and one-half per centum’’. Any rate
under section 24 of the Mineral Leasing Act (30 U.S.C.
181) in excess of five and one-half per centum shall not
be allowed unless the following conditions are met:
(1) the Secretary, in consultation with the Sec-
retary of Commerce and the United States Trade
Representative, finds that any increase in the royalty
rate for sodium will not have an adverse effect on
the export of domestically produced soda ash;
(2) the Secretary reports this finding of no ‘‘ad-
verse effect’’ to Congress and recommends an addi-
tional proposed royalty rate increase; and
(3) the Congress, within 360 days, approves the
Secretary’s recommendation.
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The Secretary shall, within 90 days, offer for competitive
bid all tracts for which there are applications pending on
sodium leases.
SEC. 9505. CLAIM MAINTENANCE REQUIREMENTS.
(a) MAINTENANCE FEES.—
(1) ANNUAL
MAINTENANCE
FEE.—After the
date of enactment of this Act, the owner of each
unpatented mining claim or site located pursuant to
the general mining laws, whether located before or
after the enactment of this Act, shall pay to the Sec-
retary in advance on or before September 1 of each
year, until a patent has been issued therefor, an an-
nual maintenance fee per mining claim or site.
(2) INITIAL MAINTENANCE FEE.—The owner of
each unpatented mining claim or site located after
the date of enactment of this Act pursuant to the
general mining laws shall pay to the Secretary, at
the time the copy of the notice or certificate of loca-
tion is filed with the Bureau of Land Management
pursuant to section 314(b) of the Federal Land Pol-
icy and Management Act of 1976 (43 U.S.C.
1744(b)), the location fee required under subsection
(i) of this section, in lieu of the annual maintenance
fee of $100 per mining claim or site for the assess-
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ment year which includes the date of location of
such mining claim or site.
(3) EXEMPTION.—The owner of any mining
claim or site who certifies in writing to the Secretary
on or before the first day of any assessment year
that access to such mining claim or site was denied
or impeded during the prior assessment year by the
action or inaction of any local, State, or Federal
governmental officer, agency, or court, or by any In-
dian tribal authority, shall be exempt from the an-
nual maintenance fee requirements of paragraph (1)
for the assessment year following the filing of the
certification.
(4) AMOUNT OF ANNUAL MAINTENANCE FEE.—
For each assessment year the annual maintenance
fee payable under paragraph (1) for a claim or site
referred to in paragraph (1) shall be in the amount
specified in Table 1.
TABLE 1
Assessment Year
Amount of Fee Per Site
or Claim
1 through 3 .................................................................
$100 per year
4 through 5 .................................................................
$150 per year
6 through 10 ...............................................................
$200 per year
11 through 15 .............................................................
$300 per year
16 and thereafter ........................................................
$500 per year
For purposes of applying Table 1 in the case of claims
filed before the enactment of this Act, the portion of the
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assessment year in which this Act is enacted shall be treat-
ed as the first assessment year.
(5) EFFECT OF FORFEITURE.—No owner or co-
owner of a mining claim or site which has been for-
feited because the maintenance fee has not been paid
and no person who is a related person of any such
owner or co-owner may relocate a new claim on any
part of lands located within the forfeited claim for
a period of 18 months after the date of forfeiture.
(6) DEPOSIT OF FEES.—The full amount of all
fees paid under this subsection shall be deposited in
the General Fund of the Treasury.
(b) ANNUAL LABOR.—(1) Amounts expended on ac-
tivities that qualify as annual labor under the general min-
ing laws may be credited on a dollar for dollar basis to-
wards up to 75 percent of the annual maintenance fee pay-
able under this section for the following assessment year.
(2) Subject to the 75 percent limit set forth in para-
graph (1), the excess of amounts expended for annual
labor performed in any one year over such 75 percent limit
may be applied to the maintenance fee due in subsequent
years for a period of up to three years.
(3) In order to receive credit under this subsection
for annual labor work or excess annual labor, the descrip-
tion and value of the work must be included in the state-
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ment required in subsection (e) and the statement must
be timely filed.
(4) Annual labor performed on an individual mining
claim or site within a group of contiguous claims may be
credited towards the aggregate amount of maintenance
fees due on all of the contiguous claims within that group.
(c) WORK QUALIFYING
AS ANNUAL LABOR.—(1)
Only work which directly benefits or develops a mining
claim or facilitates the extraction of ore qualifies as annual
labor. Acceptable labor and improvements include any of
the following:
(A) Drilling or excavating, including ore extrac-
tion.
(B) Mining costs directly associated with the
production of ore.
(C) Prospecting work which benefits the loca-
tion or a contiguous location.
(D) Development work toward an actual mine,
such as shafts, tunnels, crosscuts and drifts, settling
ponds and dams.
(E) Bringing in water for direct mining or mill-
ing purposes.
(F) Clearing of brush, timber, debris, or over-
burden where necessary to facilitate the extraction
or processing of minerals.
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(G) Construction of trails, roads, or landing
strips providing access to claims.
(H) Construction costs of worker housing, mills,
and equipment storage buildings where reasonably
necessary for the development of the location.
(I) Reasonable value of the use of equipment
for prospecting, mining, or development purposes on
the location.
(J) Repairs of equipment used for prospecting,
sampling, or production of minerals provided that
such equipment has been on site during the assess-
ment year.
(K) Cost of moving workers, materials, and
equipment among contiguous locations.
(L) Watchman services of a bona fide employed
watchman on the property where reasonably nec-
essary to protect mining equipment of substantial
value.
(M) Activities covered under section 1 of the
Act of September 2, 1958 (30 U.S.C. 28–1), as
amended.
(N) Reclamation conducted pursuant to State
or Federal surface management regulations.
(O) Other activities which the Secretary may
determine qualify as annual labor.
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(2) The following activities do not qualify as annual
labor:
(A) Work involved in maintaining the location
such as brushing and marking boundaries or replac-
ing corner posts and location notices.
(B) Transportation of workers to or from the
location.
(C) Prospecting or exploration work not con-
ducted within the location or a contiguous location.
(d) AMENDMENTS OF PUBLIC LAW 85–876.—The
Act of September 2, 1958 (Public Law 85–876; 30 U.S.C.
28–1), is amended as follows:
(1) Section 1 is amended by inserting ‘‘mineral
activities, environmental baseline monitoring, and’’
after ‘‘without being limited to’’ and before ‘‘geologi-
cal, geochemical and geophysical surveys’’ and by
striking ‘‘Such’’ at the beginning of the last sentence
and inserting ‘‘Airborne’’.
(2) Section 2(d) is amended by inserting ‘‘envi-
ronmental baseline monitoring or’’ after ‘‘experience
to conduct’’ and before ‘‘geological, geochemical or
geophysical surveys’’.
(3) Section 2 is amended by adding at the end
of the following new subsection at the end thereof:
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‘‘(e) The term ‘environmental baseline monitoring’
means activities for collecting, reviewing and analyzing in-
formation concerning soil, vegetation, wildlife, mineral,
air, water, cultural, historical, archaeological or other re-
sources related to planning for or complying with Federal
and State environmental or permitting requirements appli-
cable to potential or proposed mineral activities on the
claim(s).’’.
(e) MAINTENANCE FEE STATEMENT.—Each pay-
ment under subsection (a) of this section shall be accom-
panied by a statement which reasonably identifies the min-
ing claim or site for which the maintenance fee is being
paid. The statement required under this subsection shall
be in lieu of any annual filing requirements for mining
claims or sites, under any other Federal law, but shall not
supersede any such filing requirement under applicable
State law.
(f) ANNUAL LABOR REPORT.—When the value of an-
nual labor is credited towards part or all of the mainte-
nance fee, subject to the 75-percent limit set forth in sub-
section (b)(1), the following shall apply:
(1) The maintenance fee statement required in
subsection (e) must also state the dates of perform-
ance of the labor, describe the character and total
value of the improvements made or the labor per-
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formed, the amount of labor used as a credit toward
the maintenance fee for the current year, and the
value of excess labor performed in previous years
which is to be applied to the maintenance fee for the
current year.
(2) Documentation which reasonably supports
the activities or improvements claimed must accom-
pany the maintenance fee statement. Such docu-
mentation may include, but is not limited to, copies
of maps showing sample locations, drill locations, or
survey data; environmental baseline data; reports on
geology, geochemistry, or geophysics by qualified ex-
perts; drill results; or engineering reports by quali-
fied engineers.
(3) All supporting material filed pursuant to
paragraph (2) shall remain confidential in accord-
ance with section 552 of title 5 of the United States
Code as long as the location is maintained and for
a period of one year after the location is abandoned,
after which all data filed shall be considered public
information.
(g) EFFECT OF COMPLIANCE AS AGAINST SUBSE-
QUENT LOCATORS.—(1) Except as provided in paragraph
(2), after the date of enactment of this Act, compliance
with the requirements of this section shall, from the time
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the location notice or certificate is posted on the land
under applicable State law, confer upon the owner of any
unpatented mining claim or site, whether located before
or after the date of enactment of this Act, an exclusive
right of possession, as against subsequent locators, of the
land included in such mining claim or site under the gen-
eral mining laws. If more than one mining claim or site
owned or controlled by the same claim or site owner covers
substantially the same land, by reason of the location of
one or more mining claims or sites on such land, the
amendment or relocation of any such mining claim or site,
or otherwise, such exclusive right of possession shall ex-
tend to all such mining claims or sites, effective from the
time the location notice or certificate for the initial mining
claim or site was posted on such land under applicable
State law. The order of location, amendment, or relocation
of any such mining claims or sites on such land shall not
affect the validity of any such mining claim or site. Such
owner of the mining claim or site shall not be required
to be in actual, physical occupation of such land and shall
not be required to exclude rival locators from such land.
Such exclusive right of possession shall be subject to appli-
cable Federal law, including the Multiple Mineral Develop-
ment Act of 1954 (30 U.S.C. 521–31), the Materials Act
of 1947 (30 U.S.C. 601–604) and the Surface Resources
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Act of 1955 (30 U.S.C. 611–15) to the extent applicable,
and shall neither enlarge nor diminish any rights of such
owner of the mining claim or site as against the United
States in such land. This paragraph shall supersede the
common law doctrine of pedis possessio.
(2) Conflicts over the right of exclusive possession of
land included in any mining claim or site shall be deter-
mined in proceedings between owners of mining claims or
sites under the provisions of section 910 of the Revised
Statutes (30 U.S.C. 53) and other applicable law, includ-
ing but not limited to each of the following:
(A) Any conflict based upon circumstances ex-
isting as of the date of enactment of this Act be-
tween mining claims or sites located before the date
of enactment of this Act, shall be resolved under the
law in effect on the day prior to the date of enact-
ment of this Act, including the common law doctrine
of pedis possessio.
(B) Any conflict arising on or after the date of
enactment of this Act between mining claims or sites
located before, on or after the date of enactment
over whether either owner of the mining claim or
site has complied with the requirements of this sec-
tion, shall be resolved under this Act.
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(h) FAILURE
OF CO-OWNER TO CONTRIBUTE.—
Upon the failure of any one or more of several co-owners
of any mining claim or site to contribute such co-owner
or owners’ portion of any location or maintenance fee pay-
able under this section, any co-owner who has paid such
fee may, after the payment due date, serve the delinquent
co-owner or owners with notice of such failure in writing
or, if such delinquent co-owner or owners cannot be lo-
cated after reasonable efforts, by publication in a general
circulation newspaper published in a location nearest the
mining claim or site at least once a week for at least 90
days. If at the expiration of 90 days after such notice in
writing or by publication, any delinquent co-owner fails or
refuses to contribute the owed portion, such co-owner or
owners’ interest shall become the property of the owner
or co-owners who have paid the required fee.
(i) LOCATION FEE.—The owner of each unpatented
mining claim or site located on or after the date of enact-
ment of this Act pursuant to the general mining laws shall
pay to the Secretary, at the time the notice or certificate
of location is filed with the Bureau of Land Management
pursuant to subsection 314(b) of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1744(b)), a loca-
tion fee of $25.00 per mining claim or site. The full
amount of all fees paid under this subsection shall be de-
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posited in the General Fund of the Treasury. Effective
on the date of the enactment of this Act, section 10102
of the Omnibus Budget Reconciliation Act of 1993 (107
Stat. 406; 30 U.S.C. 28g) is repealed.
(j) CREDIT AGAINST MAINTENANCE FEE.—(1) Ex-
cept as provided in paragraph (2), the annual maintenance
fee payable for any unpatented mining claim or site for
any assessment year shall be reduced by the amount of
royalty paid by such claimholder for such mining claim
or site, or for any contiguous mining claim or site, during
the prior assessment year.
(2) Royalties paid during any assessment year prior
to the first full assessment year commencing after the en-
actment of this Act shall not reduce the amount of any
maintenance fee.
(k) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTE-
NANCE FEE UNDER ENERGY POLICY ACT OF 1992.—
This section shall not apply to any oil shale claims for
which a fee is required to be paid under paragraph
2511(e)(2) of the Energy Policy Act of 1992 (30 U.S.C.
242(e)(2)).
(l) FAILURE TO COMPLY.—The failure of the owner
of the mining claim or site to pay any claim maintenance
fee or location fee for a mining claim or site on or before
the date such payment is due under this section shall con-
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stitute forfeiture of the mining claim or site and such min-
ing claim or site shall be null and void, effective as of the
day after the date such payment is due, except that if such
maintenance fee or location fee is paid or tendered on or
before the 30th day after such payment was due under
subsection of this section, such mining claim or site shall
not be forfeited or null or void, and such maintenance fee
or location fee shall be deemed timely paid.
(m) AMENDMENT
OF FLPMA FILING REQUIRE-
MENTS.—(1) Section 314(a) of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1744(a)) is
hereby repealed.
(2) Section 314(c) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1744(c)) is amended
to read as follows:
‘‘(c) FAILURE TO FILE AS CONSTITUTING FORFEIT-
URE; DEFECTIVE OR UNTIMELY FILING.—The failure to
timely file the copy of the notice or certificate of location
as required by subsection (b) shall constitute forfeiture of
the mining claim and such claim shall be null and void
by operation of law; except that it shall not be considered
a failure to file if the notice or certificate of location is
defective or not timely filed for record under other State
or Federal laws permitting or requiring the filing or re-
cording thereof, or if the copy of the notice or certificate
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is filed by or on behalf of some but not all of the owners
of the claim.’’.
(n) RELATED PERSONS.—As used in this section, the
term ‘‘related persons’’ includes—
(1) the spouse and dependent children (as de-
fined in section 152 of the Internal Revenue Code of
1986), of the owner of the mining claim or site; and
(2) a person controlled by, controlling, or under
common control with the owner of the mining claim
or site.
(o) REPEAL.—Section 10101 of the Omnibus Budget
Reconciliation Act of 1993 (107 Stat. 406; 30 U.S.C. 28g)
is repealed, effective with respect to assessment year com-
mencing after the enactment of this Act.
(p) PERIODIC REVIEW OF FEE STRUCTURE.—Begin-
ning in the year 2005 and at 10 year intervals thereafter,
the Secretary shall review the costs incurred by the Sec-
retary to administer mining claims for locatable minerals
under the general mining laws and the structure and level
of maintenance and location fees received by the Secretary
with respect to such claims. The Secretary shall determine
if the revenues from such fees is adequate to cover such
costs, taking inflation and other appropriate factors into
account. The Secretary shall submit the results of each
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such review to the Congress, together with such legislative
recommendations as the Secretary deems appropriate.
PART 2—FEDERAL OIL AND GAS ROYALTIES
SEC. 9511. SHORT TITLE.
This part may be cited as the ‘‘Federal Oil and Gas
Royalty Simplification and Fairness Act of 1995’’.
SEC. 9512. DEFINITIONS.
(a) IN GENERAL.—Section 3 of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1701
et seq.) is amended—
(1) by amending paragraph (7) to read as fol-
lows:
‘‘(7) ‘lessee’ means any person to whom the
United States, an Indian tribe, or an Indian allottee
issues a lease or any person to whom operating
rights have been assigned;’’; and
(2) by striking ‘‘and’’ at the end of paragraph
(15), by striking the period at the end of paragraph
(16) and inserting a semicolon, and by adding at the
end the following:
‘‘(17) ‘adjustment’ means an amendment to a
previously filed report on an obligation, and any ad-
ditional payment or credit, if any, applicable thereto,
to rectify an underpayment or overpayment on a
lease;
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‘‘(18) ‘administrative proceeding’ means any
agency process in which a demand, decision or order
issued by the Secretary is subject to appeal or has
been appealed;
‘‘(19) ‘assessment’ means any fee or charge lev-
ied or imposed by the Secretary or the United States
other than—
‘‘(A) the principal amount of any royalty,
minimum royalty, rental, bonus, net profit
share or proceed of sale;
‘‘(B) any interest; or
‘‘(C) any civil or criminal penalty;
‘‘(20) ‘commence’ means—
‘‘(A) with respect to a judicial proceeding,
the service of a complaint, petition, counter-
claim, crossclaim, or other pleading seeking af-
firmative relief or seeking credit or recoupment;
or
‘‘(B) with respect to a demand, the receipt
by the Secretary or a lessee of the demand;
‘‘(21) ‘credit’ means the application of an over-
payment (in whole or in part) against an obligation
which has become due to discharge, cancel or reduce
the obligation;
‘‘(22) ‘demand’ means—
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‘‘(A) an order to pay issued by the Sec-
retary; or
‘‘(B) a separate written request by a lessee
which asserts an obligation due the lessee,
but does not mean any royalty or production report,
or any information contained therein, required by
the Secretary;
‘‘(23) ‘obligation’ means—
‘‘(A) any duty of the Secretary or the
United States—
‘‘(i) to take oil or gas royalty in kind;
or
‘‘(ii) to pay, refund, offset, or credit
monies including but not limited to—
‘‘(I) the principal amount of any
royalty, 
minimum 
royalty, 
rental,
bonus, net profit share or proceed of
sale; or
‘‘(II) any interest;
‘‘(B) any duty of a lessee—
‘‘(i) to deliver oil or gas royalty in
kind; or
‘‘(ii) to pay, offset or credit monies in-
cluding but not limited to—
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‘‘(I) the principal amount of any
royalty, 
minimum 
royalty, 
rental,
bonus, net profit share or proceed of
sale;
‘‘(II) any interest;
‘‘(III) any penalty; or
‘‘(IV) any assessment,
which arises from or relates to any lease adminis-
tered by the Secretary for, or any mineral leasing
law related to, the exploration, production and devel-
opment of oil or gas on Federal lands or the Outer
Continental Shelf;
‘‘(24) ‘order to pay’ means a written order is-
sued by the Secretary or the United States which—
‘‘(A) asserts a definite and quantified obli-
gation; and
‘‘(B) specifically identifies the obligation by
lease, production month and amount of such
obligation ordered to be paid, as well as the rea-
son or reasons such obligation is claimed to be
due,
but such term does not include any other commu-
nication or action by or on behalf of the Secretary
or the United States;
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‘‘(25) ‘overpayment’ means any payment by a
lessee in excess of an amount legally required to be
paid on an obligation and includes the portion of any
estimated payment for a production month that is in
excess of the royalties due for that month;
‘‘(26) ‘payment’ means satisfaction, in whole or
in part, of an obligation;
‘‘(27) ‘penalty’ means a statutorily authorized
civil fine levied or imposed by the Secretary or the
United States for a violation of this Act, any mineral
leasing law, or a term or provision of a lease admin-
istered by the Secretary;
‘‘(28) ‘refund’ means the return of an overpay-
ment by the Secretary or the United States by the
drawing of funds from the United States Treasury;
‘‘(29) ‘State concerned’ means, with respect to
a lease, a State which receives a portion of royalties
under this Act from such lease; and
‘‘(30) ‘underpayment’ means any payment or
nonpayment by a lessee that is less than the amount
legally required to be paid on an obligation.’’.
(b) LESSEE LIABILITY.—Section 102(a) of the Fed-
eral Oil and Gas Royalty Management Act of 1982 (30
U.S.C. 1712(a)) is amended to read as follows:
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‘‘(a) A lessee who is required to make any royalty
or other payment under a lease or under the mineral leas-
ing laws, shall make such payments in the time and man-
ner as may be specified by the Secretary. A lessee may
designate a person to act on the lessee’s behalf and shall
notify the Secretary in writing of such designation. The
person to whom the United States issues a lease or the
person by whom operating rights are currently owned, but
not both, shall remain primarily liable for its obligations.’’.
SEC. 9513. LIMITATION PERIODS.
(a) IN GENERAL.—The Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.) is
amended by adding after section 114 the following new
section:
‘‘SEC. 115. LIMITATION PERIODS AND AGENCY ACTIONS.
‘‘(a) IN GENERAL.—A judicial proceeding or demand
which arises from, or relates to an obligation, shall be
commenced within six years from the date on which the
obligation becomes due and if not so commenced shall be
barred, except as otherwise provided by this section.
‘‘(b) OBLIGATION BECOMES DUE.—
‘‘(1) IN GENERAL.—For purposes of this Act,
an obligation becomes due when the right to enforce
the obligation is fixed.
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‘‘(2) ROYALTY OBLIGATIONS.—The right to en-
force the royalty obligation for a production month
for a lease is fixed for purposes of this Act on the
last day of the calendar month following the month
in which oil or gas is produced.
‘‘(c) TOLLING OF LIMITATION PERIOD.—The run-
ning of the limitation period under subsection (a) shall
not be suspended, tolled, extended, or enlarged for any ob-
ligation for any reason by any action, including an action
by the Secretary or the United States, other than the fol-
lowing:
‘‘(1) TOLLING AGREEMENT.—A written agree-
ment executed during the limitation period between
the Secretary and a lessee which tolls the limitation
period for the amount of time during which the
agreement is in effect.
‘‘(2) SUBPOENA.—The issuance of a subpoena
in accordance with the provisions of section 107(c)
shall toll the limitation period with respect to the ob-
ligation which is the subject of a subpoena only for
the period beginning on the date the lessee receives
the subpoena and ending on the date on which (A)
the lessee has produced such subpoenaed records for
the subject obligation, (B) the Secretary receives
written notice that the subpoenaed records for the
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subject obligation are not in existence or are not in
the lessee’s possession or control, or (C) a court has
determined in a final decision that such records are
not required to be produced, whichever occurs first.
‘‘(3) FRAUD OR CONCEALMENT.—Any fraud or
concealment by a lessee in an attempt to defeat or
evade an obligation in which case the limitation pe-
riod shall be tolled for the period of such fraud or
such concealment.
‘‘(4) TOLLING REQUEST.—A written tolling re-
quest from a lessee based upon the lessee’s represen-
tation that the lessee’s entitlement to an overpay-
ment has not been finally determined. The limitation
period shall be tolled pursuant to this paragraph
from the date the Secretary receives the tolling re-
quest until the earlier of the end of the requested
period or 12 months after the date the Secretary re-
ceives the tolling request, but is subject to successive
12-month renewals by the lessee made prior to the
expiration of the then applicable 12-month period.
The tolling request shall be sufficient if it identi-
fies—
‘‘(A) the person who made the potential
overpayment;