SEC. 12. COURT’S FINAL RESPONSE TO PETITION: VALU-
ATION CONCERNING ECONOMICALLY RECOV-
ERABLE COAL RESOURCES LOST OR DE-
LAYED, SUSPENSION OR TERMINATION AND
PAYMENT ORDER.
(a) IN GENERAL.—Within 210 days of the date of
issuance of an order pursuant to section 9(c) by which,
or by any action by the Secretary pursuant to section 8(d),
the Federal coal lease and/or any non-Federal interest in
the logical mining unit is suspended, the court shall take
the actions required by this section.
(b) SUSPENSION DETERMINATION.—The court shall
determine whether, as a result of the order or any action
of the Secretary, the Federal coal lease and/or any non-
Federal interest in the logical mining unit shall be sus-
pended in whole or in part to further accommodate oil or
gas development in the common area.
(c) COMPENSATION DETERMINATION.—If the court
makes a determination to suspend pursuant to subsection
(b), the court shall determine the amount of any net in-
come that will not be realized from the loss or delay in
development of economically recoverable resources of coal,
and the unavoidable fixed expenses (including, but not lim-
ited to, additional expenses associated with reclamation,
expenses associated with stranded costs of mining equip-
ment and facilities, a proportionate refund of the lease
bonus, and any lost royalties on coal not produced by the
Federal coal lessee) that will be incurred, by the Federal
coal lessee as a consequence of the suspension.
(d) COURT ORDER.—The court shall issue an order
that—
(1) suspends, in accordance with the determina-
tion made pursuant to subsection (b), all or any part
of the Federal coal lease and/or any non-Federal in-
terest in the logical mining unit, including any appli-
cable payment or production obligations on the lease
or logical mining unit, for the period necessary for
expeditious development in the common area of the
gas or oil that is the subject of the petition for relief
as demonstrated to the court in a production plan
submitted by the oil and gas developer; and
(2) awards to the Federal coal lessee and all
other owners of any interest in the Federal coal
lease or logical mining unit, as their interests may
appear, a sum of money equal to the net income
amount and unavoidable fixed expenses determined
pursuant to subsection (c).
SEC. 13. REVIEW OF EXPERTS’ REPORT AND HEARING.
(a) The court shall make the determinations required
by section 11 or section 12 after reviewing the report of
the panel of experts submitted pursuant to section 10(e)
and the hearing required by subsection (b).
(b) After submission of the report of the panel of ex-
perts pursuant to section 10(e) and prior to making the
determinations required by section 11 or section 12, the
court shall hold a hearing in which the panel of experts
shall present their report and the parties to the proceeding
shall have the opportunity to examine the panel and pro-
vide to the court any evidence or arguments they may have
to support or contravene the recommendations of the re-
port.
SEC. 14. DISBURSEMENT OF PAYMENTS.
(a) PAYMENT TO OIL AND GAS DEVELOPER.—
(1) At the election of the oil and gas developer,
the sum of money awarded by the court pursuant to
section 11(d)(2) shall be—
(A) paid in full within 60 days of the date
of issuance of the order pursuant to section
11(d); or
(B) divided into the number of tons of re-
coverable coal in the common area and paid in
per ton increments as the coal is mined in ac-
cordance with paragraph (2) and subsection (c).
(2) The Federal coal lessee shall make the pay-
ments required by paragraph (1)(B) on a quarterly
basis in advance based on the Federal coal lessee’s
estimate of the number of tons of coal to be mined
in the common area during the following quarter,
and shall add or subtract an amount to or from the
advance payment for the next quarter to reflect the
coal actually sold or transferred.
(b) PAYMENT TO FEDERAL COAL LESSEE.—
(1) At the election of the Federal coal lessee,
the sum of money awarded by the court pursuant to
section 12(d)(2) shall be—
(A) paid in full within 60 days of the date
of issuance of the order pursuant to section
12(d); or
(B) divided into the number of barrels of
recoverable oil or cubic feet of recoverable gas
in the common area and paid in per barrel or
cubic feet increments as the oil or gas is pro-
duced in accordance with paragraph (2) and
subsection (c).
(2) The oil and gas developer shall make the
payments required by paragraph (1)(B) on a quar-
terly basis in advance based on the oil and gas devel-
oper’s estimate of the number of barrels of oil or
cubic feet of gas to be produced in the common area
during the following quarter, and shall add or sub-
tract an amount to or from the advance payment for
the next quarter to reflect the oil or gas actually
produced.
(c) FINAL PAYMENT.—If the mining or production
necessary to make full payment of the sum of money
awarded by the court in accordance with subsection
(a)(1)(B) or subsection (b)(1)(B) does not occur within
5 years of the date of issuance of the court order pursuant
to section 11(d) or section 12(d), the unpaid balance shall
be paid within 60 days thereafter.
SEC. 15. TERMINATION OF OIL AND GAS LEASE SUSPEN-
SION.
(a) NOTIFICATION OF COURT.—If the court issues an
order to suspend all or any part of the oil and gas lease
or right to develop pursuant to section 11(d)—
(1) the Federal coal lessee shall notify the court
and the oil and gas developer when the portion of
the common area subject to the order issued pursu-
ant to section 11(d) is no longer required for mining
operations or support facilities; and
(2) within 120 days of the date of receipt by
the court of the notification pursuant to paragraph
(1) or within 60 days prior to the date on which the
period established by the court in the order issued
pursuant to section 11(d) concludes, the oil and gas
lessee may petition the court for an order that ter-
minates the suspension and fixes the date and terms
on which the oil and gas developer may resume oper-
ations within the portion of the common area subject
to the order issued pursuant to section 11(d).
(b) COURT ORDER TO TERMINATE SUSPENSION OF
LEASE OR RIGHT TO DEVELOP.—The court shall issue
the order sought under subsection (a)(2) within 30 days
of the date of receipt of the petition pursuant to subsection
(a)(2).
(c) TERMINATION
OF LEASE
OR RIGHT TO DE-
VELOP.—
(1) If the oil and gas developer determines that,
as a consequence of the order of the court issued
pursuant to section 9(c) and an order to suspend all
or any part of the oil and gas lease or right to de-
velop pursuant to section 11(d), the conditions de-
scribed in section 11(b)(3) exist, the oil and gas de-
veloper may petition the court to terminate the oil
and gas lease or right to develop.
(2) The petition referred to in paragraph (1)
may be filed any time after issuance of the order of
the court pursuant to section 11(d) but not later
than 120 days after the date of receipt by the court
of the notification pursuant to subsection (a)(1).
(3) Upon receipt of a petition pursuant to para-
graph (1), the court shall make a determination
whether to issue an order to terminate the oil and
gas lease or right to develop and award an addi-
tional amount from the Federal coal lessee to the oil
and gas developer and all other owners of any inter-
est in the oil and gas property, as their interests
may appear, in accordance with the procedures and
deadlines established in section 7(a) and sections 10
through 14.
SEC. 16. TERMINATION OF COAL LEASE SUSPENSION.
(a) NOTIFICATION OF COURT.—If the court issues an
order requiring suspension of all or any part of the Fed-
eral coal lease and/or any non-Federal interest in the log-
ical mining unit that includes the Federal coal lease pursu-
ant to section 12(d)—
(1) the oil and gas developer shall notify the
court and the Federal coal lessee when the portion
of the common area subject to the order issued pur-
suant to section 12(d) is no longer required for gas
or oil production from such portion; and
(2) within 120 days of the date of receipt by
the court of the notification pursuant to paragraph
(1) or within 60 days prior to the date on which the
period established by the court in the order issued
(2) The petition referred to in paragraph (1)
may be filed any time after issuance of the order of
the court pursuant to section 12(d) but not later
than 120 days after the date of receipt by the court
of the notification pursuant to subsection (a)(1).
(3) Upon receipt of a petition pursuant to para-
graph (1), the court shall make a determination
whether to issue an order to terminate all or any
part of the Federal coal lease and/or any non-Fed-
eral interest in the logical mining unit and award an
additional amount from the oil and gas developer to
the Federal coal lessee and all other owners of any
interest in the Federal coal lease or logical mining
unit, as their interests may appear, in accordance
with the procedures and deadlines established in sec-
tion 7(a) and sections 10 through 14.
SEC. 17. SUPPLEMENTAL PETITION FOR RELIEF.
(a) PETITION SUBMITTAL.—
(1) If, at any time after the issuance of an
order pursuant to section 11(d) or section 12(d), the
mining plan that is the basis of the order is altered
in a manner that may warrant suspension of an ad-
ditional part or all of, or termination of, the oil and
gas lease or right to develop or suspension of an ad-
ditional part of the Federal coal lease and/or any
non-Federal interest in the logical mining unit that
includes the Federal coal lease and/or an increase in
the sum of money that was awarded under the
order, either the Federal coal lessee or the oil and
gas developer may, if necessary after compliance
with the requirements of section 6, file a supple-
mental petition for relief with the court to amend
the order.
(2) The requirements of section 7(a) and sec-
tions 8 through 14 shall apply to the supplemental
petition submitted pursuant to paragraph (1).
(b) COURT ORDER.—
(1) Upon completion of the process required by
subsection (a)(2), the court shall make a determina-
tion whether to suspend an additional part or all of,
or terminate, the oil and gas lease or right to de-
velop or to suspend an additional part of the Federal
coal lease and/or any non-Federal interest in the log-
ical mining unit as described in, and to award an
additional sum of money calculated in accordance
with, section 11 or section 12.
(2) The court shall issue any order resulting
from the determinations made pursuant to para-
graph (1) within 90 days of the date of filing of the
supplemental petition for relief.
(3) Any award of an additional sum of money
shall be paid in accordance with section 14.
SEC. 18. APPEAL OF COURT ORDERS.
(a) NONAPPEALABLE ORDERS.—Any order issued
pursuant to section 9(c), section 9(f), section 15(b), or
section 16(b) is final and may not be appealed.
(b) APPEALABLE ORDERS.—Any order issued pursu-
ant to section 11(d), section 12(d), section 15(c)(3), sec-
tion 16(c)(3), or section 17(b)(2) may be appealed, but
the appeal, and any disposition thereof, may not disturb
any order referred to in subsection (a).
SEC. 19. SUSPENSION TERMS.
(a) FEDERAL LEASE SUSPENSION TERMS.—If all or
any part of any lease issued pursuant to the Mineral Leas-
ing Act is suspended in whole or in part by the Secretary
or the court under this Act—
(1) the lessee shall not be required to pay any
rental for the lease for the period of the suspension;
and
(2) if the lease is a Federal oil or gas lease and
is in the primary term or if the lease is a Federal
coal lease, the term of the lease shall be extended by
the length of the period of the suspension plus one
year; or
(3) the lease shall not terminate due to lack of
production for the period of the suspension plus one
year.
(b) OTHER.—If any non-Federal oil and gas lease or
right to develop or any non-Federal interest in a logical
mining unit is suspended in whole or in part by the court
under this Act, the court shall establish terms for the sus-
pension comparable to the terms set forth in subsection
(a).
SEC. 20. LIABILITY LIMITATION.
(a) FEDERAL COAL LESSEE.—Except as provided in
a written agreement reached pursuant to section 6(b) or
reached on or after September 1, 1999, and before the
date of enactment of this Act, or as provided by an order
of the court pursuant to this Act, neither the holder of
a Federal coal lease subject to the agreement or order nor
the United States shall be liable to the oil and gas devel-
oper of, or any owner of an interest in, any oil and gas
property subject to the agreement or order for any de-
crease in or depletion of, or any impairment of the ability
to recover, any gas or oil from the property that may re-
sult from the development of any coal on the Federal coal
leasehold or within a logical mining unit that includes the
Federal coal lease.
(b) OIL AND GAS DEVELOPER.—Except as provided
in a written agreement reached pursuant to section 6(b)
or reached on or after September 1, 1999, and before the
date of enactment of this Act, or as provided by an order
of the court pursuant to this Act, neither the oil and gas
developer of an oil and gas property subject to the agree-
ment or order nor the United States shall be liable to a
holder of a Federal coal lease subject to the agreement
or order, or any owner of any non-Federal interest in a
logical mining unit that includes the Federal coal lease,
or the United States for any impairment of the ability to
recover coal from the Federal coal leasehold or logical min-
ing unit that may result from the development of gas or
oil on the property.
SEC. 21. CREDIT AGAINST ROYALTIES.
(a) IN GENERAL.—
(1) Whenever a holder of a Federal coal lease
is required by a written agreement reached pursuant
to section 6(b) and approved by the Bureau of Land
Management or reached prior to the date of enact-
ment of this Act and approved by the Bureau of
Land Management on or after September 1, 1999,
or by a court order issued pursuant to section 11(d),
section 15(c)(3), or section 17(b)(2), to pay an
amount for suspension of all or part of, or termi-
nation of, a Federal oil and gas lease for coalbed
methane located within the Section 21 Lands, the
amount so paid shall be credited against any royal-
ties on production required by section 7(a) or any
other provision of the Mineral Leasing Act from any
lease of Federal coal issued under the Mineral Leas-
ing Act to such holder or any affiliate thereof.
(2) Whenever a holder of a Federal oil and gas
lease is required by a written agreement reached
pursuant to section 6(b) and approved by the Bu-
reau of Land Management or reached prior to the
date of enactment of this Act and approved by the
Bureau of Land Management on or after September
1, 1999, or by a court order issued pursuant to sec-
tion 12(d), section 16(c)(3), or section 17(b)(2), to
pay an amount for suspension or termination of all
or part of a Federal coal lease located within the
Section 21 Lands, the amount so paid shall be cred-
ited against any royalties on production required by
subsection (b)(1)(A) or subsection (c)(1) of section
17 or any other provision of the Mineral Leasing Act
from any lease of Federal oil and gas issued under
the Mineral Leasing Act to such holder or any affil-
iate thereof.
(b) TREATMENT OF ROYALTIES TO STATES.—The
Secretary shall pay to the State in which the Federal coal
lease or Federal oil and gas lease referred to in subsection
(a)(1) or subsection (a)(2), respectively, is located 50 per-
cent of the amount of any credit against royalties provided
under 
subsection 
(a)(1) 
or 
subsection 
(a)(2),
respectively—
(1) in the same manner as if the credit against
royalties had been paid in money as royalties and
distributed under section 35(a) of the Mineral Leas-
ing Act; and
(2) from amounts received as royalties, rentals,
or bonuses derived from leases issued under this Act
that otherwise would be deposited to miscellaneous
receipts under section 35(a) of the Mineral Leasing
Act.
SEC. 22. DENIAL OF USE AS PRECEDENT.
Nothing in this Act shall be applicable to any lease
under the Mineral Leasing Act for any mineral, or shall
be applicable to, or supersede any statutory or common
law otherwise applicable in, any proceeding in any Federal
or State court involving development of any mineral, out-
side of any common area, as defined in section 3(13),
within or outside of the Powder River Basin, as defined
in section 3(1).