H. R. 2491—74
Subtitle B—Provisions Relating to the Em-
ployee Retirement Income Security Act
of 1974
SEC. 4101. WAIVER OF MINIMUM PERIOD FOR JOINT AND SURVIVOR
ANNUITY EXPLANATION BEFORE ANNUITY STARTING
DATE.
(a) GENERAL RULE.—For purposes of section 205(c)(3)(A) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1055(c)(3)(A)), the minimum period prescribed by the Secretary
of the Treasury between the date that the explanation referred
to in such section is provided and the annuity starting date shall
not apply if waived by the participant and, if applicable, the partici-
pant’s spouse.
(b) EFFECTIVE DATE.—Subsection (a) shall apply to plan years
beginning after December 31, 1995.
TITLE V—ENERGY AND NATURAL
RESOURCES PROVISIONS
Subtitle A—Nuclear Regulatory
Commission Annual Charges
SEC. 5001. NUCLEAR REGULATORY COMMISSION ANNUAL CHARGES.
Section 6101(a)(3) of the Omnibus Budget Reconciliation Act
of 1990 (42 U.S.C. 2214(a)(3)) is amended by striking ‘‘September
30, 1998’’ and inserting ‘‘September 30, 2002’’.
Subtitle B—Department of Energy Assets
CHAPTER 1—UNITED STATES ENRICHMENT
CORPORATION
SEC. 5201. SHORT TITLE.
This chapter may be cited as the ‘‘USEC Privatization Act’’.
SEC. 5202. DEFINITIONS.
For purposes of this chapter:
(1) The term ‘‘AVLIS’’ means atomic vapor laser isotope
separation technology.
(2) The term ‘‘Corporation’’ means the United States
Enrichment Corporation and, unless the context otherwise
requires, includes the private corporation and any successor
thereto following privatization.
(3) The term ‘‘gaseous diffusion plants’’ means the Paducah
Gaseous Diffusion Plant at Paducah, Kentucky and the Ports-
mouth Gaseous Diffusion Plant at Piketon, Ohio.
(4) The term ‘‘highly enriched uranium’’ means uranium
enriched to 20 percent or more of the uranium–235 isotope.
(5) The term ‘‘low-enriched uranium’’ means uranium
enriched to less than 20 percent of the uranium–235 isotope,
including that which is derived from highly enriched uranium.
H. R. 2491—75
(6) The term ‘‘low-level radioactive waste’’ has the meaning
given such term in section 2(9) of the Low-Level Radioactive
Waste Policy Act (42 U.S.C. 2021b(9)).
(7) The term ‘‘private corporation’’ means the corporation
established under section 5205.
(8) The term ‘‘privatization’’ means the transfer of owner-
ship of the Corporation to private investors.
(9) The term ‘‘privatization date’’ means the date on which
100 percent of the ownership of the Corporation has been
transferred to private investors.
(10) The term ‘‘public offering’’ means an underwritten
offering to the public of the common stock of the private corpora-
tion pursuant to section 5204.
(11) The term ‘‘Russian HEU Agreement’’ means the Agree-
ment Between the Government of the United States of America
and the Government of the Russian Federation Concerning
the Disposition of Highly Enriched Uranium Extracted from
Nuclear Weapons, dated February 18, 1993.
(12) The term ‘‘Secretary’’ means the Secretary of Energy.
(13) The term ‘‘Suspension Agreement’’ means the Agree-
ment to Suspend the Antidumping Investigation on Uranium
from the Russian Federation, as amended.
(14) The term ‘‘uranium enrichment’’ means the separation
of uranium of a given isotopic content into 2 components, 1
having a higher percentage of a fissile isotope and 1 having
a lower percentage.
SEC. 5203. SALE OF THE CORPORATION.
(a) AUTHORIZATION.—The Board of Directors of the Corporation,
with the approval of the Secretary of the Treasury, shall transfer
the interest of the United States in the United States Enrichment
Corporation to the private sector in a manner that provides for
the long-term viability of the Corporation, provides for the continu-
ation by the Corporation of the operation of the Department of
Energy’s gaseous diffusion plants, provides for the protection of
the public interest in maintaining a reliable and economical domes-
tic source of uranium mining, enrichment and conversion services,
and, to the extent not inconsistent with such purposes, secures
the maximum proceeds to the United States.
(b) PROCEEDS.—Proceeds from the sale of the United States’
interest in the Corporation shall be deposited in the general fund
of the Treasury.
SEC. 5204. METHOD OF SALE.
(a) AUTHORIZATION.—The Board of Directors of the Corporation,
with the approval of the Secretary of the Treasury, shall transfer
ownership of the assets and obligations of the Corporation to the
private corporation established under section 5205 (which may be
consummated through a merger or consolidation effected in accord-
ance with, and having the effects provided under, the law of the
State of incorporation of the private corporation, as if the Corpora-
tion were incorporated thereunder).
(b) BOARD DETERMINATION.—The Board, with the approval of
the Secretary of the Treasury, shall select the method of transfer
and establish terms and conditions for the transfer that will provide
the maximum proceeds to the Treasury of the United States and
will provide for the long-term viability of the private corporation,
the continued operation of the gaseous diffusion plants, and the
H. R. 2491—76
public interest in maintaining reliable and economical domestic
uranium mining and enrichment industries.
(c) ADEQUATE PROCEEDS.—The Secretary of the Treasury shall
not allow the privatization of the Corporation unless before the
sale date the Secretary of the Treasury determines that the method
of transfer will provide the maximum proceeds to the Treasury
consistent with the principles set forth in section 5203(a).
(d) APPLICATION OF SECURITIES LAWS.—Any offering or sale
of securities by the private corporation shall be subject to the
Securities Act of 1933 (15 U.S.C. 77a. et seq.), the Securities
Exchange Act of 1934 (15 U.S.C. 78a. et seq.), and the provisions
of the Constitution and laws of any State, Territory, or possession
of the United States relating to transactions in securities.
SEC. 5205. ESTABLISHMENT OF PRIVATE CORPORATION.
(a) INCORPORATION.—(1) The directors of the Corporation shall
establish a private for-profit corporation under the laws of a State
for the purpose of receiving the assets and obligations of the Cor-
poration at privatization and continuing the business operations
of the Corporation following privatization.
(2) The directors of the Corporation may serve as incorporators
of the private corporation and shall take all steps necessary to
establish the private corporation, including the filing of articles
of incorporation consistent with the provisions of this chapter.
(3) Employees and officers of the Corporation (including mem-
bers of the Board of Directors) acting in accordance with this
section on behalf of the private corporation shall be deemed to
be acting in their official capacities as employees or officers of
the Corporation for purposes of section 205 of title 18, United
States Code.
(b) STATUS
OF
THE PRIVATE CORPORATION.—(1) The private
corporation shall not be an agency, instrumentality, or establish-
ment of the United States, a Government corporation, or a Govern-
ment-controlled corporation.
(2) Except as otherwise provided by this chapter, financial
obligations of the private corporation shall not be obligations of,
or guaranteed as to principal or interest by, the Corporation or
the United States, and the obligations shall so plainly state.
(3) No action under section 1491 of title 28, United States
Code, shall be allowable against the United States based on actions
of the private corporation.
(c) APPLICATION OF POST-GOVERNMENT EMPLOYMENT RESTRIC-
TIONS.—Beginning on the privatization date, the restrictions stated
in section 207 (a), (b), (c), and (d) of title 18, United States Code,
shall not apply to the acts of an individual done in carrying out
official duties as a director, officer, or employee of the private
corporation, if the individual was an officer or employee of the
Corporation (including a director) continuously during the 45 days
prior to the privatization date.
(d) DISSOLUTION.—In the event that the privatization does not
occur, the Corporation will provide for the dissolution of the private
corporation within 1 year of the private corporation’s incorporation
unless the Secretary of the Treasury or his delegate, upon the
Corporation’s request, agrees to delay any such dissolution for an
additional year.
H. R. 2491—77
SEC. 5206. TRANSFERS TO THE PRIVATE CORPORATION.
Concurrent with privatization, the Corporation shall transfer
to the private corporation—
(1) the lease of the gaseous diffusion plants in accordance
with section 5207,
(2) all personal property and inventories of the Corporation,
(3) all contracts, agreements, and leases under section
5208(a),
(4) the Corporation’s right to purchase power from the
Secretary under section 5208(b),
(5) such funds in accounts of the Corporation held by
the Treasury or on deposit with any bank or other financial
institution as approved by the Secretary of the Treasury, and
(6) all of the Corporation’s records, including all of the
papers and other documentary materials, regardless of physical
form or characteristics, made or received by the Corporation.
SEC. 5207. LEASING OF GASEOUS DIFFUSION FACILITIES.
(a) TRANSFER OF LEASE.—Concurrent with privatization, the
Corporation shall transfer to the private corporation the lease of
the gaseous diffusion plants and related property for the remainder
of the term of such lease in accordance with the terms of such
lease.
(b) RENEWAL.—The private corporation shall have the exclusive
option to lease the gaseous diffusion plants and related property
for additional periods following the expiration of the initial term
of the lease.
(c) EXCLUSION
OF FACILITIES
FOR PRODUCTION
OF HIGHLY
ENRICHED URANIUM.—The Secretary shall not lease to the private
corporation any facilities necessary for the production of highly
enriched uranium but may, subject to the requirements of the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), grant the
Corporation access to such facilities for purposes other than the
production of highly enriched uranium.
(d) DOE RESPONSIBILITY FOR PREEXISTING CONDITIONS.—The
payment of any costs of decontamination and decommissioning,
response actions, or corrective actions with respect to conditions
existing before July 1, 1993, at the gaseous diffusion plants shall
remain the sole responsibility of the Secretary.
(e) ENVIRONMENTAL AUDIT.—For purposes of subsection (d),
the conditions existing before July 1, 1993, at the gaseous diffusion
plants shall be determined from the environmental audit conducted
pursuant to section 1403(e) of the Atomic Energy Act of 1954
(42 U.S.C. 2297c–2(e)).
(f) TREATMENT
UNDER
PRICE-ANDERSON
PROVISIONS.—Any
lease executed between the Secretary and the Corporation or the
private corporation, and any extension or renewal thereof, under
this section shall be deemed to be a contract for purposes of section
170d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)).
(g) WAIVER OF EIS REQUIREMENT.—The execution or transfer
of the lease between the Secretary and the Corporation or the
private corporation, and any extension or renewal thereof, shall
not be considered a major Federal action significantly affecting
the quality of the human environment for purposes of section 102
of the National Environmental Policy Act of 1969 (42 U.S.C. 4332).
H. R. 2491—78
SEC. 5208. TRANSFER OF CONTRACTS.
(a) TRANSFER OF CONTRACTS.—Concurrent with privatization,
the Corporation shall transfer to the private corporation all con-
tracts, agreements, and leases, including all uranium enrichment
contracts, that were—
(1) transferred by the Secretary to the Corporation pursu-
ant to section 1401(b) of the Atomic Energy Act of 1954 (42
U.S.C. 2297c(b)), or
(2) entered into by the Corporation before the privatization
date.
(b) NONTRANSFERABLE POWER CONTRACTS.—The Corporation
shall transfer to the private corporation the right to purchase
power from the Secretary under the power purchase contracts for
the gaseous diffusion plants executed by the Secretary before July
1, 1993. The Secretary shall continue to receive power for the
gaseous diffusion plants under such contracts and shall continue
to resell such power to the private corporation at cost during the
term of such contracts.
(c) EFFECT OF TRANSFER.—(1) Notwithstanding subsection (a),
the United States shall remain obligated to the parties to the
contracts, agreements, and leases transferred under subsection (a)
for the performance of its obligations under such contracts, agree-
ments, or leases during their terms. Performance of such obligations
by the private corporation shall be considered performance by the
United States.
(2) If a contract, agreement, or lease transferred under sub-
section (a) is terminated, extended, or materially amended after
the privatization date—
(A) the private corporation shall be responsible for any
obligation arising under such contract, agreement, or lease
after any extension or material amendment, and
(B) the United States shall be responsible for any obligation
arising under the contract, agreement, or lease before the termi-
nation, extension, or material amendment.
(3) The private corporation shall reimburse the United States
for any amount paid by the United States under a settlement
agreement entered into with the consent of the private corporation
or under a judgment, if the settlement or judgment—
(A) arises out of an obligation under a contract, agreement,
or lease transferred under subsection (a), and
(B) arises out of actions of the private corporation between
the privatization date and the date of a termination, extension,
or material amendment of such contract, agreement, or lease.
(d) PRICING.—The Corporation may establish prices for its prod-
ucts, materials, and services provided to customers on a basis
that will allow it to attain the normal business objectives of a
profit making corporation.
SEC. 5209. LIABILITIES.
(a) LIABILITY OF THE UNITED STATES.—(1) Except as otherwise
provided in this chapter, all liabilities arising out of the operation
of the uranium enrichment enterprise before July 1, 1993, shall
remain the direct liabilities of the Secretary.
(2) Except as provided in subsection (a)(3) or otherwise provided
in a memorandum of agreement entered into by the Corporation
and the Office of Management and Budget prior to the privatization
date, all liabilities arising out of the operation of the Corporation
H. R. 2491—79
between July 1, 1993, and the privatization date shall remain
the direct liabilities of the United States.
(3) All liabilities arising out of the disposal of depleted uranium
generated by the Corporation between July 1, 1993, and the
privatization date shall become the direct liabilities of the Secretary.
(4) Any stated or implied consent for the United States, or
any agent or officer of the United States, to be sued by any person
for any legal, equitable, or other relief with respect to any claim
arising from any action taken by any agent or officer of the United
States in connection with the privatization of the Corporation is
hereby withdrawn.
(5) To the extent that any claim against the United States
under this section is of the type otherwise required by Federal
statute or regulation to be presented to a Federal agency or official
for adjudication or review, such claim shall be presented to the
Department of Energy in accordance with procedures to be estab-
lished by the Secretary. Nothing in this paragraph shall be con-
strued to impose on the Department of Energy liability to pay
any claim presented pursuant to this paragraph.
(6) The Attorney General shall represent the United States
in any action seeking to impose liability under this subsection.
(b) LIABILITY
OF
THE
CORPORATION.—Notwithstanding any
provision of any agreement to which the Corporation is a party,
the Corporation shall not be considered in breach, default, or viola-
tion of any agreement because of the transfer of such agreement
to the private corporation under section 5208 or any other action
the Corporation is required to take under this chapter.
(c) LIABILITY OF THE PRIVATE CORPORATION.—Except as pro-
vided in this chapter, the private corporation shall be liable for
any liabilities arising out of its operations after the privatization
date.
(d) LIABILITY
OF OFFICERS
AND DIRECTORS.—(1) No officer,
director, employee, or agent of the Corporation shall be liable in
any civil proceeding to any party in connection with any action
taken in connection with the privatization if, with respect to the
subject matter of the action, suit, or proceeding, such person was
acting within the scope of his employment.
(2) This subsection shall not apply to claims arising under
the Securities Act of 1933 (15 U.S.C. 77a. et seq.), the Securities
Exchange Act of 1934 (15 U.S.C. 78a. et seq.), or under the Constitu-
tion or laws of any State, territory, or possession of the United
States relating to transactions in securities.
SEC. 5210. EMPLOYEE PROTECTIONS.
(a) CONTRACTOR EMPLOYEES.—(1) Privatization shall not dimin-
ish the accrued, vested pension benefits of employees of the Corpora-
tion’s operating contractor at the two gaseous diffusion plants.
(2) In the event that the private corporation terminates or
changes the contractor at either or both of the gaseous diffusion
plants, the plan sponsor or other appropriate fiduciary of the pen-
sion plan covering employees of the prior operating contractor shall
arrange for the transfer of all plan assets and liabilities relating
to accrued pension benefits of such plan’s participants and bene-
ficiaries from such plant to a pension plan sponsored by the new
contractor or the private corporation or a joint-labor management
plan, as the case may be.
H. R. 2491—80
(3) In addition to any obligations arising under the National
Labor Relations Act (29 U.S.C. 151 et seq.), any employer (including
the private corporation if it operates a gaseous diffusion plant
without a contractor or any contractor of the private corporation)
at a gaseous diffusion plant shall—
(A) abide by the terms of any unexpired collective bargain-
ing agreement covering employees in bargaining units at the
plant and in effect on the privatization date until the stated
expiration or termination date of the agreement; or
(B) in the event a collective bargaining agreement is not
in effect upon the privatization date, have the same bargaining
obligations under section 8(d) of the National Labor Relations
Act (29 U.S.C. 158(d)) as it had immediately before the
privatization date.
(4) If the private corporation replaces its operating contractor
at a gaseous diffusion plant, the new employer (including the new
contractor or the private corporation if it operates a gaseous diffu-
sion plant without a contractor) shall—
(A) offer employment to non-management employees of the
predecessor contractor to the extent that their jobs still exist
or they are qualified for new jobs, and
(B) abide by the terms of the predecessor contractor’s collec-
tive bargaining agreement until the agreement expires or a
new agreement is signed.
(5) In the event of a plant closing or mass layoff (as such
terms are defined in section 2101(a) (2) and (3) of title 29, United
States Code) at either of the gaseous diffusion plants, the Secretary
of Energy shall treat any adversely affected employee of an operat-
ing contractor at either plant who was an employee at such plant
on July 1, 1993, as a Department of Energy employee for purposes
of sections 3161 and 3162 of the National Defense Authorization
Act for Fiscal Year 1993 (42 U.S.C. 7274h–7274i).
(6)(A) The Secretary and the private corporation shall cause
the post-retirement health benefits plan provider (or its successor)
to continue to provide benefits for eligible persons, as described
under subparagraph (B), employed by an operating contractor at
either of the gaseous diffusion plants in an economically efficient
manner and at substantially the same level of coverage as eligible
retirees are entitled to receive on the privatization date.
(B) Persons eligible for coverage under subparagraph (A) shall
be limited to:
(i) persons who retired from active employment at one
of the gaseous diffusion plants on or before the privatization
date as vested participants in a pension plan maintained either
by the Corporation’s operating contractor or by a contractor
employed prior to July 1, 1993, by the Department of Energy
to operate a gaseous diffusion plant; and
(ii) persons who are employed by the Corporation’s operat-
ing contractor on or before the privatization date and are vested
participants in a pension plan maintained either by the Cor-
poration’s operating contractor or by a contractor employed
prior to July 1, 1993, by the Department of Energy to operate
a gaseous diffusion plant.
(C) The Secretary shall fund the entire cost of post-retirement
health benefits for persons who retired from employment with an
operating contractor prior to July 1, 1993.
H. R. 2491—81
(D) The Secretary and the Corporation shall fund the cost
of post-retirement health benefits for persons who retire from
employment with an operating contractor on or after July 1, 1993,
in proportion to the retired person’s years and months of service
at a gaseous diffusion plant under their respective management.
(7)(A) Any suit under this subsection alleging a violation of
an agreement between an employer and a labor organization shall
be brought in accordance with section 301 of the Labor Management
Relations Act (29 U.S.C. 185).
(B) Any charge under this subsection alleging an unfair labor
practice violative of section 8 of the National Labor Relations Act
(29 U.S.C. 158) shall be pursued in accordance with section 10
of the National Labor Relations Act (29 U.S.C. 160).
(C) Any suit alleging a violation of any provision of this sub-
section, to the extent it does not allege a violation of the National
Labor Relations Act, may be brought in any district court of the
United States having jurisdiction over the parties, without regard
to the amount in controversy or the citizenship of the parties.
(b) FORMER FEDERAL EMPLOYEES.—(1)(A) An employee of the
Corporation that was subject to either the Civil Service Retirement
System (referred to in this section as ‘‘CSRS’’) or the Federal
Employees’ Retirement System (referred to in this section as
‘‘FERS’’) on the day immediately preceding the privatization date
shall elect—
(i) to retain the employee’s coverage under either CSRS
or FERS, as applicable, in lieu of coverage by the Corporation’s
retirement system, or
(ii) to receive a deferred annuity or lump-sum benefit pay-
able to a terminated employee under CSRS or FERS, as
applicable.
(B) An employee that makes an election under subparagraph
(A)(ii) shall have the option to transfer the balance in the employee’s
Thrift Savings Plan account to a defined contribution plan under
the Corporation’s retirement system, consistent with applicable law
and the terms of the Corporation’s defined contribution plan.
(2) The Corporation shall pay to the Civil Service Retirement
and Disability Fund—
(A) such employee deductions and agency contributions
as are required by sections 8334, 8422, and 8423 of title 5,
United States Code, for those employees who elect to retain
their coverage under either CSRS or FERS pursuant to para-
graph (1);
(B) such additional agency contributions as are determined
necessary by the Office of Personnel Management to pay, in
combination with the sums under subparagraph (A), the ‘‘nor-
mal cost’’ (determined using dynamic assumptions) of retire-
ment benefits for those employees who elect to retain their
coverage under CSRS pursuant to paragraph (1), with the
concept of ‘‘normal cost’’ being used consistent with generally
accepted actuarial standards and principles; and
(C) such additional amounts, not to exceed two percent
of the amounts under subparagraphs (A) and (B), as are deter-
mined necessary by the Office of Personnel Management to
pay the cost of administering retirement benefits for employees
who retire from the Corporation after the privatization date
under either CSRS or FERS, for their survivors, and for survi-
vors of employees of the Corporation who die after the privatiza-
H. R. 2491—82
tion date (which amounts shall be available to the Office of
Personnel Management as provided in section 8348(a)(1)(B)
of title 5, United States Code).
(3) The Corporation shall pay to the Thrift Savings Fund such
employee and agency contributions as are required by section 8432
of title 5, United States Code, for those employees who elect to
retain their coverage under FERS pursuant to paragraph (1).
(4) Any employee of the Corporation who was subject to the
Federal Employee Health Benefits Program (referred to in this
section as ‘‘FEHBP’’) on the day immediately preceding the
privatization date and who elects to retain coverage under either
CSRS or FERS pursuant to paragraph (1) shall have the option
to receive health benefits from a health benefit plan established
by the Corporation or to continue without interruption coverage
under the FEHBP, in lieu of coverage by the Corporation’s health
benefit system.
(5) The Corporation shall pay to the Employees Health Benefits
Fund—
(A) such employee deductions and agency contributions
as are required by section 8906(a)–(f) of title 5, United States
Code, for those employees who elect to retain their coverage
under FEHBP pursuant to paragraph (4); and
(B) such amounts as are determined necessary by the Office
of Personnel Management under paragraph (6) to reimburse
the Office of Personnel Management for contributions under
section 8906(g)(1) of title 5, United States Code, for those
employees who elect to retain their coverage under FEHBP
pursuant to paragraph (4).
(6) The amounts required under paragraph (5)(B) shall pay
the Government contributions for retired employees who retire from
the Corporation after the privatization date under either CSRS
or FERS, for survivors of such retired employees, and for survivors
of employees of the Corporation who die after the privatization
date, with said amounts prorated to reflect only that portion of
the total service of such employees and retired persons that was
performed for the Corporation after the privatization date.
SEC. 5211. OWNERSHIP LIMITATIONS.
(a) SECURITIES LIMITATIONS.—No director, officer, or employee
of the Corporation may acquire any securities, or any rights to
acquire any securities of the private corporation on terms more
favorable than those offered to the general public—
(1) in a public offering designed to transfer ownership
of the Corporation to private investors,
(2) pursuant to any agreement, arrangement, or under-
standing entered into before the privatization date, or
(3) before the election of the directors of the private corpora-
tion.
(b) OWNERSHIP LIMITATION.—Immediately following the con-
summation of the transaction or series of transactions pursuant
to which 100 percent of the ownership of the Corporation is trans-
ferred to private investors, and for a period of three years thereafter,
no person may acquire, directly or indirectly, beneficial ownership
of securities representing more than 10 percent of the total votes
of all outstanding voting securities of the Corporation. The foregoing
limitation shall not apply to—
(1) any employee stock ownership plan of the Corporation,
H. R. 2491—83
(2) members of the underwriting syndicate purchasing
shares in stabilization transactions in connection with the
privatization, or
(3) in the case of shares beneficially held in the ordinary
course of business for others, any commercial bank, broker-
dealer, or clearing agency.
SEC. 5212. URANIUM TRANSFERS AND SALES.
(a) TRANSFERS AND SALES BY THE SECRETARY.—The Secretary
shall not provide enrichment services or transfer or sell any ura-
nium (including natural uranium concentrates, natural uranium
hexafluoride, or enriched uranium in any form) to any person
except as consistent with this section.
(b) RUSSIAN HEU.—(1) On or before December 31, 1996, the
United States Executive Agent under the Russian HEU Agreement
shall transfer to the Secretary without charge title to an amount
of uranium hexafluoride equivalent to the natural uranium compo-
nent of low-enriched uranium derived from at least 18 metric tons
of highly enriched uranium purchased from the Russian Executive
Agent under the Russian HEU Agreement. The quantity of such
uranium hexafluoride delivered to the Secretary shall be based
on a tails assay of 0.30 U235. Uranium hexafluoride transferred
to the Secretary pursuant to this paragraph shall be deemed under
United States law for all purposes to be of Russian origin.
(2) Within 7 years of the date of enactment of this Act, the
Secretary shall sell, and receive payment for, the uranium
hexafluoride transferred to the Secretary pursuant to paragraph
(1). Such uranium hexafluoride shall be sold—
(A) at any time for use in the United States for the purpose
of overfeeding;
(B) at any time for end use outside the United States;
(C) in 1995 and 1996 to the Russian Executive Agent
at the purchase price for use in matched sales pursuant to
the Suspension Agreement; or
(D) in calendar year 2001 for consumption by end users
in the United States not prior to January 1, 2002, in volumes
not to exceed 3,000,000 pounds U3O8 equivalent per year.
(3) With respect to all enriched uranium delivered to the United
States Executive Agent under the Russian HEU Agreement on
or after January 1, 1997, the United States Executive Agent shall,
upon request of the Russian Executive Agent, enter into an agree-
ment to deliver concurrently to the Russian Executive Agent an
amount of uranium hexafluoride equivalent to the natural uranium
component of such uranium. An agreement executed pursuant to
a request of the Russian Executive Agent, as contemplated in
this paragraph, may pertain to any deliveries due during any period
remaining under the Russian HEU Agreement. The quantity of
such uranium hexafluoride delivered to the Russian Executive
Agent shall be based on a tails assay of 0.30 U235. Title to uranium
hexafluoride delivered to the Russian Executive Agent pursuant
to this paragraph shall transfer to the Russian Executive Agent
upon delivery of such material to the Russian Executive Agent,
with such delivery to take place at a North American facility des-
ignated by the Russian Executive Agent. Uranium hexafluoride
delivered to the Russian Executive Agent pursuant to this para-
graph shall be deemed under United States law for all purposes
to be of Russian origin. Such uranium hexafluoride may be sold
H. R. 2491—84
to any person or entity for delivery and use in the United States
only as permitted in subsections (b)(5), (b)(6) and (b)(7) of this
section.
(4) In the event that the Russian Executive Agent does not
exercise its right to enter into an agreement to take delivery of
the natural uranium component of any low-enriched uranium, as
contemplated in paragraph (3), within 90 days of the date such
low-enriched uranium is delivered to the United States Executive
Agent, or upon request of the Russian Executive Agent, then the
United States Executive Agent shall engage an independent entity
through a competitive selection process to auction an amount of
uranium hexafluoride or U3O8 (in the event that the conversion
component of such hexafluoride has previously been sold) equivalent
to the natural uranium component of such low-enriched uranium.
An agreement executed pursuant to a request of the Russian Execu-
tive Agent, as contemplated in this paragraph, may pertain to
any deliveries due during any period remaining under the Russian
HEU Agreement. Such independent entity shall sell such uranium
hexafluoride in one or more lots to any person or entity to maximize
the proceeds from such sales, for disposition consistent with the
limitations set forth in this subsection. The independent entity
shall pay to the Russian Executive Agent the proceeds of any
such auction less all reasonable transaction and other administra-
tive costs. The quantity of such uranium hexafluoride auctioned
shall be based on a tails assay of 0.30 U235. Title to uranium
hexafluoride auctioned pursuant to this paragraph shall transfer
to the buyer of such material upon delivery of such material to
the buyer. Uranium hexafluoride auctioned pursuant to this para-
graph shall be deemed under United States law for all purposes
to be of Russian origin.
(5) Except as provided in paragraphs (6) and (7), uranium
hexafluoride delivered to the Russian Executive Agent under para-
graph (3) or auctioned pursuant to paragraph (4), may not be
delivered for consumption by end users in the United States either
directly or indirectly prior to January 1, 1998, and thereafter only
in accordance with the following schedule:
Annual maximum deliveries to end users
Year:
(millions lbs.
U3O8
equivalent)
1998 ...................................................................................................
1999 ...................................................................................................
2000 ...................................................................................................
2001 ...................................................................................................
2002 ...................................................................................................
2003 ...................................................................................................
2004 ...................................................................................................
2005 ...................................................................................................
2006 ...................................................................................................
2007 ...................................................................................................
2008 ...................................................................................................
2009 and each year thereafter ........................................................
20.
(6) Uranium hexafluoride delivered to the Russian Executive
Agent under paragraph (3) or auctioned pursuant to paragraph
(4) may be sold at any time as Russian-origin natural uranium
in a matched sale pursuant to the Suspension Agreement, and
H. R. 2491—85
in such case shall not be counted against the annual maximum
deliveries set forth in paragraph (5).
(7) Uranium hexafluoride delivered to the Russian Executive
Agent under paragraph (3) or auctioned pursuant to paragraph
(4) may be sold at any time for use in the United States for
the purpose of overfeeding in the operations of enrichment facilities.
(8) Nothing in this subsection (b) shall restrict the sale of
the conversion component of such uranium hexafluoride.
(9) The Secretary of Commerce shall have responsibility for
the administration and enforcement of the limitations set forth
in this subsection. The Secretary of Commerce may require any
person to provide any certifications, information, or take any action
that may be necessary to enforce these limitations. The United
States Customs Service shall maintain and provide any information
required by the Secretary of Commerce and shall take any action
requested by the Secretary of Commerce which is necessary for
the administration and enforcement of the uranium delivery limita-
tions set forth in this section.
(10) The President shall monitor the actions of the United
States Executive Agent under the Russian HEU Agreement and
shall report to the Congress not later than December 31 of each
year on the effect the low-enriched uranium delivered under the
Russian HEU Agreement is having on the domestic uranium min-
ing, conversion, and enrichment industries, and the operation of
the gaseous diffusion plants. Such report shall include a description
of actions taken or proposed to be taken by the President to prevent
or mitigate any material adverse impact on such industries or
any loss of employment at the gaseous diffusion plants as a result
of the Russian HEU Agreement.
(c) TRANSFERS TO THE CORPORATION.—(1) The Secretary shall
transfer to the Corporation without charge up to 50 metric tons
of enriched uranium and up to 7,000 metric tons of natural uranium
from the Department of Energy’s stockpile, subject to the restric-
tions in subsection (c)(2).
(2) The Corporation shall not deliver for commercial end use
in the United States—
(A) any of the uranium transferred under this subsection
before January 1, 1998;
(B) more than 10 percent of the uranium (by uranium
hexafluoride equivalent content) transferred under this sub-
section or more than 4,000,000 pounds, whichever is less, in
any calendar year after 1997; or
(C) more than 800,000 separative work units contained
in low-enriched uranium transferred under this subsection in
any calendar year.
(d) INVENTORY SALES.—(1) In addition to the transfers author-
ized under subsections (c) and (e), the Secretary may, from time
to time, sell natural and low-enriched uranium (including low-
enriched uranium derived from highly enriched uranium) from the
Department of Energy’s stockpile.
(2) Except as provided in subsections (b), (c), and (e), no sale
or transfer of natural or low-enriched uranium shall be made
unless—
(A) the President determines that the material is not nec-
essary to national security needs,
(B) the Secretary determines that the sale of the material
will not have an adverse material impact on the domestic
H. R. 2491—86
uranium mining, conversion, or enrichment industry, taking
into account the sales of uranium under the Russian HEU
Agreement and the Suspension Agreement, and
(C) the price paid to the Secretary will not be less than
the fair market value of the material.
(e) GOVERNMENT
TRANSFERS.—Notwithstanding subsection
(d)(2), the Secretary may transfer or sell enriched uranium—
(1) to a Federal agency if the material is transferred for
the use of the receiving agency without any resale or transfer
to another entity and the material does not meet commercial
specifications;
(2) to any person for national security purposes, as deter-
mined by the Secretary; or
(3) to any State or local agency or nonprofit, charitable,
or educational institution for use other than the generation
of electricity for commercial use.
(f) SAVINGS PROVISION.—Nothing in this chapter shall be read
to modify the terms of the Russian HEU Agreement.
SEC. 5213. LOW-LEVEL WASTE.
(a) RESPONSIBILITY OF DOE.—(1) The Secretary, at the request
of the generator, shall accept for disposal low-level radioactive
waste, including depleted uranium if it were ultimately determined
to be low-level radioactive waste, generated by the Corporation
as a result of the operations of the gaseous diffusion plants or
as a result of the treatment of such wastes at a location other
than a gaseous diffusion plant. The terms and conditions for such
service shall be no more favorable than those the Secretary offers
any other generator of such wastes generated by uranium enrich-
ment plants licensed by the Nuclear Regulatory Commission.
(2) The Secretary shall recover the cost of providing the service
in paragraph (1), including a pro rata share of any capital costs,
by charging the Corporation a fee for such service in an amount
equal to the price charged uranium enrichment plants licensed
by the Nuclear Regulatory Commission, but in no event shall the
Secretary charge any generator more than an amount equal to
that which would be charged by commercial, State, regional, or
interstate compact entities for disposal of such waste.
(b) AGREEMENTS WITH OTHER PERSONS.—The Corporation or
any other generator may also enter into agreements for the disposal
of low-level radioactive waste subject to subsection (a) with any
person other than the Secretary that is authorized by applicable
laws and regulations to dispose of such wastes, but shall have
no authority under this or any other law to require a State or
interstate compact to treat, store, or dispose of such waste in
a State or interstate compact facility without the State or compact’s
consent.
SEC. 5214. AVLIS.
(a) EXCLUSIVE RIGHT TO COMMERCIALIZE.—The Corporation
shall have the exclusive commercial right to deploy and use any
AVLIS patents, processes, and technical information owned or con-
trolled by the Government, upon completion of a royalty agreement
with the Secretary.
(b) TRANSFER OF RELATED PROPERTY TO CORPORATION.—
(1) IN GENERAL.—To the extent requested by the Corpora-
tion and subject to the requirements of the Atomic Energy
Act of 1954 (42 U.S.C. 2011 et seq.), the President shall transfer
H. R. 2491—87
without charge to the Corporation all of the right, title, or
interest in and to property owned by the United States under
control or custody of the Secretary that is directly related
to and materially useful in the performance of the Corporation’s
purposes regarding AVLIS and alternative technologies for ura-
nium enrichment, including—
(A) facilities, equipment, and materials for research,
development, and demonstration activities; and
(B) all other facilities, equipment, materials, processes,
patents, technical information of any kind, contracts, agree-
ments, and leases.
(2) EXCEPTION.—Facilities, real estate, improvements, and
equipment related to the gaseous diffusion, and gas centrifuge,
uranium enrichment programs of the Secretary shall not trans-
fer under paragraph (1)(B).
(3) EXPIRATION OF TRANSFER AUTHORITY.—The President’s
authority to transfer property under this subsection shall expire
upon the privatization date.
(c) LIABILITY FOR PATENT AND RELATED CLAIMS.—With respect
to any right, title, or interest provided to the Corporation under
subsection (a) or (b), the Corporation shall have sole liability for
any payments made or awards under section 157 b. (3) of the
Atomic Energy Act of 1954 (42 U.S.C. 2187(b)(3)), or any settlements
or judgments involving claims for alleged patent infringement. Any
royalty agreement under subsection (a) of this section shall provide
for a reduction of royalty payments to the Secretary to offset any
payments, awards, settlements, or judgments under this subsection.
SEC. 5215. APPLICATION OF CERTAIN LAWS.
(a) OSHA.—(1) As of the privatization date, the private corpora-
tion shall be subject to and comply with the Occupational Safety
and Health Act of 1970 (29 U.S.C. 651 et seq.).
(2) The Nuclear Regulatory Commission and the Occupational
Safety and Health Administration shall, within 90 days after the
date of enactment of this Act, enter into a memorandum of agree-
ment to govern the exercise of their authority over occupational
safety and health hazards at the gaseous diffusion plants, including
inspection, investigation, enforcement, and rulemaking relating to
such hazards.
(b) ANTITRUST LAWS.—For purposes of the antitrust laws, the
performance by the private corporation of a ‘‘matched import’’ con-
tract under the Suspension Agreement shall be considered to have
occurred prior to the privatization date, if at the time of privatiza-
tion, such contract had been agreed to by the parties in all material
terms and confirmed by the Secretary of Commerce under the
Suspension Agreement.
(c) ENERGY REORGANIZATION ACT REQUIREMENTS.—(1) The pri-
vate corporation and its contractors and subcontractors shall be
subject to the provisions of section 211 of the Energy Reorganization
Act of 1974 (42 U.S.C. 5851) to the same extent as an employer
subject to such section.
(2) With respect to the operation of the facilities leased by
the private corporation, section 206 of the Energy Reorganization
Act of 1974 (42 U.S.C. 5846) shall apply to the directors and
officers of the private corporation.
H. R. 2491—88
SEC. 5216. AMENDMENTS TO THE ATOMIC ENERGY ACT.
(a) REPEAL.—(1) Chapters 22 through 26 of the Atomic Energy
Act of 1954 (42 U.S.C. 2297–2297e-7) are repealed as of the
privatization date.
(2) The table of contents of such Act is amended as of the
privatization date by striking the items referring to sections
repealed by paragraph (1).
(b) NRC LICENSING.—(1) Section 11v. of the Atomic Energy
Act of 1954 (42 U.S.C. 2014v.) is amended by striking ‘‘or the
construction and operation of a uranium enrichment facility using
Atomic Vapor Laser Isotope Separation technology’’.
(2) Section 193 of the Atomic Energy Act of 1954 (42 U.S.C.
2243) is amended by adding at the end the following:
‘‘(f) LIMITATION.—No license or certificate of compliance may
be issued to the United States Enrichment Corporation or its succes-
sor under this section or sections 53, 63, or 1701, if the Commission
determines that—
‘‘(1) the Corporation is owned, controlled, or dominated
by an alien, a foreign corporation, or a foreign government;
or
‘‘(2) the issuance of such a license or certificate of compli-
ance would be inimical to—
‘‘(A) the common defense and security of the United
States; or
‘‘(B) the maintenance of a reliable and economical
domestic source of enrichment services.’’.
(3) Section 1701(c)(2) of the Atomic Energy Act of 1954 (42
U.S.C. 2297f(c)(2)) is amended to read as follows:
‘‘(2) PERIODIC
APPLICATION
FOR
CERTIFICATE
OF
COMPLI-
ANCE.—The Corporation shall apply to the Nuclear Regulatory
Commission for a certificate of compliance under paragraph
(1) periodically, as determined by the Commission, but not
less than every 5 years. The Commission shall review any
such application and any determination made under subsection
(b)(2) shall be based on the results of any such review.’’.
(4) Section 1702(a) of the Atomic Energy Act of 1954 (42 U.S.C.
2297f–1(a)) is amended—
(1) by striking ‘‘other than’’ and inserting ‘‘including’’, and
(2) by striking ‘‘sections 53 and 63’’ and inserting ‘‘sections
53, 63, and 193’’.
(c) JUDICIAL REVIEW OF NRC ACTIONS.—Section 189b. of the
Atomic Energy Act of 1954 (42 U.S.C. 2239(b)) is amended to
read as follows:
‘‘b. The following Commission actions shall be subject to judicial
review in the manner prescribed in chapter 158 of title 28, United
States Code and chapter 7 of title 5, United States Code:
‘‘(1) Any final order entered in any proceeding of the kind
specified in subsection (a).
‘‘(2) Any final order allowing or prohibiting a facility to
begin operating under a combined construction and operating
license.
‘‘(3) Any final order establishing by regulation standards
to govern the Department of Energy’s gaseous diffusion ura-
nium enrichment plants, including any such facilities leased
to a corporation established under the USEC Privatization Act.
‘‘(4) Any final determination under section 1701(c) relating
to whether the gaseous diffusion plants, including any such
H. R. 2491—89
facilities leased to a corporation established under the USEC
Privatization Act, are in compliance with the Commission’s
standards governing the gaseous diffusion plants and all
applicable laws.’’.
(d) CIVIL PENALTIES.—Section 234 a. of the Atomic Energy
Act of 1954 (42 U.S.C. 2282(a)) is amended by—
(1) striking ‘‘any licensing provision of section 53, 57, 62,
63, 81, 82, 101, 103, 104, 107, or 109’’ and inserting: ‘‘any
licensing or certification provision of section 53, 57, 62, 63,
81, 82, 101, 103, 104, 107, 109, or 1701’’; and
(2) by striking ‘‘any license issued thereunder’’ and insert-
ing: ‘‘any license or certification issued thereunder’’.
(e) 
REFERENCES
TO
THE
CORPORATION.—Following 
the
privatization date, all references in the Atomic Energy Act of 1954
to the United States Enrichment Corporation shall be deemed to
be references to the private corporation.
SEC. 5217. AMENDMENTS TO OTHER LAWS.
(a) DEFINITION
OF GOVERNMENT CORPORATION.—As of the
privatization date, section 9101(3) of title 31, United States Code,
is amended by striking subparagraph (N) as added by section 902(b)
of Public Law 102–486.
(b) DEFINITION OF THE CORPORATION.—Section 1018(1) of the
Energy Policy Act of 1992 (42 U.S.C. 2296b–7(1) is amended by
inserting ‘‘or its successor’’ before the period.
CHAPTER 2—DEPARTMENT OF ENERGY
SEC. 5221. SALE OF DOE ASSETS.
(a) ASSET MANAGEMENT AND DISPOSITION PROGRAM.—
(1) IN GENERAL.—In order to maximize the use of Depart-
ment of Energy assets and to reduce overhead and other costs
related to asset management at the Department’s facilities
and laboratories, the Secretary of Energy shall conduct an
asset management and disposition program that will result
in not less than $225,000,000 in receipts and savings by October
1, 2000.
(2) ITEMS TO BE INCLUDED.—The program shall include
an inventory of assets in the care of the Department and
its contractors; the recovery, reuse, and stewardship of assets;
and disposition of a minimum of 1,139,000,000 pounds of fuel,
136,000 tons of chemicals and industrial gases, 557,000 tons
of scrap metal, 14,000 radiation sources, 17,000 pieces of major
equipment, 11,000 pounds of precious metals, and 91,000,000
pounds of base metals.
(b) FEDERAL PROPERTY AND ADMINSTRATIVE SERVICES ACT.—
The disposition of assets under this section is not subject to section
202 or 203 of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 483, 484) or section 13 of the Surplus
Property Act of 1944 (50 U.S.C. App. 1622). In order to avoid
market disruptions, the Secretary shall consult with appropriate
executive agencies with respect to dispositions under this section.
(c) DISPOSITION OF PROCEEDS.—After deduction of administra-
tive costs of disposition under this section not to exceed $7,000,000
per year, the remainder of the proceeds from dispositions under
this subpart shall be returned to the Treasury as miscellaneous
H. R. 2491—90
receipts. There shall be established a new receipt account in the
Treasury for proceeds of asset sales under this section.
SEC. 5222. SALE OF WEEKS ISLAND OIL.
Notwithstanding section 161 of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6241), the Secretary of Energy shall draw
down and sell 32,000,000 barrels of oil contained in the Weeks
Island Strategic Petroleum Reserve Facility. The Secretary shall,
to the greatest extent practicable, sell oil from the reserve in a
manner that minimizes the impact of such sale upon supply levels
and market forces.
SEC. 5223. LEASE OF EXCESS STRATEGIC PETROLEUM RESERVE
CAPACITY.
(a) AMENDMENT.—Part B of title I of the Energy Policy and
Conservation Act (42 U.S.C. 6231 et seq.) is amended by adding
at the end the following:
‘‘USE OF UNDERUTILIZED FACILITIES
‘‘SEC. 168. (a) AUTHORITY.—Notwithstanding any other provi-
sion of this title, the Secretary, by lease or otherwise, for any
term and under such other conditions as the Secretary considers
necessary or appropriate, may store in underutilized Strategic
Petroleum Reserve facilities petroleum product owned by a foreign
government or its representative. Petroleum products stored under
this section are not part of the Strategic Petroleum Reserve and
may be exported without license from the United States.
‘‘(b) PROTECTION OF FACILITIES.—All agreements entered into
pursuant to subsection (a) shall contain provisions providing for
fees to fully compensate the United States for all costs of storage
and removals of petroleum products, including the cost of replace-
ment facilities necessitated as a result of any withdrawals.
‘‘(c) ACCESS TO STORED OIL.—The Secretary shall ensure that
agreements to store petroleum products for foreign governments
or their representatives do not affect the ability of the United
States to withdraw, distribute, or sell petroleum from the Strategic
Petroleum Reserve in response to an energy emergency or to the
obligations of the United States under the Agreement on an Inter-
national Energy Program.
‘‘(d) AVAILABILITY OF FUNDS.—Beginning in fiscal year 2001
and in each fiscal year thereafter except for fiscal years 2003
and 2004, 50 percent of the funds resulting from the leasing of
Strategic Petroleum Reserve facilities authorized by subsection (a)
shall be available to the Secretary of Energy without further appro-
priation for the purchase of oil for the Strategic Petroleum
Reserve.’’.
(b) TABLE OF CONTENTS AMENDMENT.—The table of contents
of part B of title I of the Energy Policy and Conservation Act
is amended by adding at the end the following:
‘‘Sec. 168. Use of underutilized facilities.’’.
H. R. 2491—91
Subtitle C—Natural Resources
CHAPTER 1—DEPARTMENT OF THE INTERIOR
CONVEYANCES
Subchapter A—California Directed Land Sale
SEC. 5301. CONVEYANCE OF PROPERTY.
All right, title and interest of the United States in the property
depicted 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 Meridian, Township 9 North,
Range 19 East, and improvements thereon, together with all nec-
essary easements for utilities and ingress and egress to such prop-
erty, including, but not limited to, the right to improve those ease-
ments, are conveyed to the Department of Health Services of the
State of California upon the tendering of $500,100 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 this section and, as part of the consider-
ation paid for such property, such conveyance is declared to meet
and fully comply with any otherwise applicable provisions of section
7 of the Endangered Species Act of 1973 (16 U.S.C. 1536) and
the National Environmental Policy Act of 1969 (42 U.S.C. 4332).
The Secretary of the Interior shall issue evidence of title pursuant
to this Act notwithstanding any other provision of law.
Subchapter B—Helium Reserves
SEC. 5311. SHORT TITLE.
This subchapter may be cited as the ‘‘Helium Act of 1995’’.
SEC. 5312. AMENDMENT OF HELIUM ACT.
Except as otherwise expressly provided, whenever in this chap-
ter an amendment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, 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. 5313. AUTHORITY OF SECRETARY.
Sections 3, 4, and 5 are amended to read as follows:
‘‘SEC. 3. AUTHORITY OF SECRETARY.
‘‘(a) EXTRACTION
AND
DISPOSAL
OF
HELIUM
ON
FEDERAL
LANDS.—
‘‘(1) IN
GENERAL.—The Secretary may enter into agree-
ments with private parties for the recovery and disposal of
helium on Federal lands upon such terms and conditions as
the Secretary deems fair, reasonable, and necessary.
‘‘(2) LEASEHOLD RIGHTS.—The Secretary may grant lease-
hold rights to any such helium.
‘‘(3) LIMITATION.—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 agree-
ment for recovery and disposal of helium.
H. R. 2491—92
‘‘(4) REGULATIONS.—Agreements under paragraph (1) may
be subject to such regulations as may be prescribed by the
Secretary.
‘‘(5) EXISTING RIGHTS.—An agreement under paragraph (1)
shall be subject to any rights of any affected Federal oil and
gas lessee that may be in existence prior to the date of the
agreement.
‘‘(6) TERMS AND CONDITIONS.—An agreement under para-
graph (1) (and any extension or renewal of an agreement)
shall contain such terms and conditions as the Secretary may
consider appropriate.
‘‘(7) PRIOR AGREEMENTS.—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 produced from Federal lands in existence on the date
of enactment of the Helium Act of 1995 except to the extent
that such agreements are renewed or extended after that date.
‘‘(b) STORAGE, TRANSPORTATION AND SALE.—The Secretary may
store, transport, and sell helium only in accordance with this Act.
‘‘SEC. 4. STORAGE, TRANSPORTATION, AND WITHDRAWAL OF CRUDE
HELIUM.
‘‘(a) STORAGE, TRANSPORTATION AND WITHDRAWAL.—The Sec-
retary may store, transport and withdraw crude helium and main-
tain and operate crude helium storage facilities, in existence on
the date of enactment of the Helium Act of 1995 at the Bureau
of Mines Cliffside Field, and related helium transportation and
withdrawal facilities.
‘‘(b) CESSATION OF PRODUCTION, REFINING, AND MARKETING.—
Not later than 18 months after the date of enactment of the Helium
Act of 1995, the Secretary shall cease producing, refining, and
marketing refined helium and shall cease carrying out all other
activities relating to helium which the Secretary was authorized
to carry out under this Act before the date of enactment of the
Helium Act of 1995, except activities described in subsection (a).
‘‘(c) DISPOSAL OF FACILITIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (5), not later than
24 months after the cessation of activities referred to in sub-
section (b) of this section, the Secretary shall designate as
excess property and dispose of all facilities, equipment, and
other real and personal property, and all interests therein,
held by the United States for the purpose of producing, refining
and marketing refined helium.
‘‘(2) APPLICABLE LAW.—The disposal of such property shall
be in accordance with the Federal Property and Administrative
Services Act of 1949.
‘‘(3) PROCEEDS.—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 purposes
of section 6(f).
‘‘(4) COSTS.—All costs associated with such sale and dis-
posal (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).
‘‘(5) EXCEPTION.—Paragraph (1) shall not apply to any
facilities, equipment, or other real or personal property, or
H. R. 2491—93
any interest therein, necessary for the storage, transportation
and withdrawal of crude helium or any equipment, facilities,
or other real or personal property, required to maintain the
purity, quality control, and quality assurance of crude helium
in the Bureau of Mines Cliffside Field.
‘‘(d) EXISTING CONTRACTS.—
‘‘(1) IN GENERAL.—All contracts that were entered into by
any person with the Secretary for the purchase by the person
from the Secretary of refined helium and that are in effect
on the date of the enactment of the Helium Act of 1995 shall
remain in force and effect until the date on which the refining
operations cease, as described in subsection (b).
‘‘(2) COSTS.—Any costs associated with the termination of
contracts described in paragraph (1) shall be paid from the
helium production fund established under section 6(f).
‘‘SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITHDRAWAL.
‘‘(a) IN GENERAL.—Whenever the Secretary provides helium
storage withdrawal or transportation services to any person, the
Secretary shall impose a fee on the person to reimburse the Sec-
retary for the full costs of providing such storage, transportation,
and withdrawal.
‘‘(b) TREATMENT.—All fees received by the Secretary under sub-
section (a) shall be treated as moneys received under this Act
for purposes of section 6(f).’’.
SEC. 5314. SALE OF CRUDE HELIUM.
(a) Subsection 6(a) is amended by striking ‘‘from the Secretary’’
and inserting ‘‘from persons who have entered into enforceable
contracts to purchase an equivalent amount of crude helium from
the Secretary’’.
(b) Subsection 6(b) is amended—
(1) by inserting ‘‘crude’’ before ‘‘helium’’; and
(2) by adding the following at the end: ‘‘Except as may
be required by reason of subsection (a), sales of crude helium
under this section shall be in amounts as the Secretary deter-
mines, in consultation with the helium industry, necessary
to carry out this subsection with minimum market disruption.’’.
(c) Subsection 6(c) is amended—
(1) by inserting ‘‘crude’’ after ‘‘Sales of’’; and
(2) by striking ‘‘together with interest as provided in this
subsection’’ and all that follows through the end of the sub-
section and inserting ‘‘all funds required to be repaid to the
United States as of October 1, 1995 under this section (referred
to in this subsection as ‘repayable amounts’). The price at
which crude helium is sold by the Secretary shall not be less
than the amount determined by the Secretary by—
‘‘(1) dividing the outstanding amount of such repayable
amounts by the volume (in million cubic feet) of crude helium
owned by the United States and stored in the Bureau of Mines
Cliffside Field at the time of the sale concerned, and
‘‘(2) adjusting the amount determined under paragraph
(1) by the Consumer Price Index for years beginning after
December 31, 1995.’’.
(d) Subsection 6(d) is amended to read as follows:
‘‘(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
H. R. 2491—94
and credited against the amounts required to be repaid to the
Treasury under subsection (c).’’.
(e) Subsection 6(e) is repealed.
(f) Subsection 6(f) is amended—
(1) by striking ‘‘(f)’’ and inserting ‘‘(e)(1)’’; and
(2) by adding the following at the end:
‘‘(2)(A) 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 $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).
‘‘(B) On repayment of all amounts referred to in subsection
(c), the fund established under this section shall be terminated
and all moneys received under this Act shall be deposited in the
general fund of the Treasury.’’.
SEC. 5315. ELIMINATION OF STOCKPILE.
Section 8 is amended to read as follows:
‘‘SEC. 8. ELIMINATION OF STOCKPILE.
‘‘(a) STOCKPILE SALES.—
‘‘(1) COMMENCEMENT.—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
amounts as would be necessary to dispose of all such helium
reserves in excess of 600,000,000 cubic feet on a straight-
line basis between such date and January 1, 2015.
‘‘(2) TIMES
OF
SALE.—The sales shall be at such times
during each year and in such lots as the Secretary determines,
in consultation with the helium industry, to be necessary to
carry out this subsection with minimum market disruption.
‘‘(3) PRICE.—The price for all sales under paragraph (1),
as determined by the Secretary in consultation with the helium
industry, shall be such price as will ensure repayment of the
amounts required to be repaid to the Treasury under section
6(c).
‘‘(b) DISCOVERY OF ADDITIONAL RESERVES.—The discovery of
additional helium reserves shall not affect the duty of the Secretary
to make sales of helium under subsection (a).’’.
SEC. 5316. REPEAL OF AUTHORITY TO BORROW.
Sections 12 and 15 are repealed.
SEC. 5317. 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 referred to in sub-
section (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
H. R. 2491—95
date of November 23, 1937, and of record in Vol. 66A of the Patent
Records of the State of Texas. The metes and bounds description
of such lands is as follows:
(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) aforesaid, 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.
(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 fol-
lows:
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 Section 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.
CHAPTER 2—ARCTIC COASTAL PLAIN LEASING AND
REVENUE ACT
SEC. 5331. SHORT TITLE.
This chapter may be cited as the ‘‘Arctic Coastal Plain Leasing
and Revenue Act of 1995’’.
SEC. 5332. DEFINITIONS.
When used in this chapter the term—
(1) ‘‘Coastal Plain’’ means that area identified as such
in the map entitled ‘‘Arctic National Wildlife Refuge’’, dated
August 1980, as referenced in section 1002(b) of the Alaska
National Interest Lands Conservation Act of 1980 (16 U.S.C.
3142(b)(1)) comprising approximately 1,549,000 acres; and
(2) ‘‘Secretary’’ except as otherwise provided, means the
Secretary of the Interior or the Secretary’s designee.
SEC. 5333. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL
PLAIN.
(a) AUTHORIZATION.—The Congress hereby authorizes and
directs the Secretary, acting through the Bureau of Land Manage-
H. R. 2491—96
ment in consultation with the Fish and Wildlife Service and other
appropriate Federal offices and agencies, to take such actions as
are necessary to establish and implement a competitive oil and
gas leasing program that will result in an environmentally sound
program for the exploration, development, and production of the
oil and gas resources of the Coastal Plain and to administer the
provisions of this chapter through regulations, lease terms, condi-
tions, restrictions, prohibitions, stipulations and other provisions
that ensure the oil and gas exploration, development, and produc-
tion activities on the Coastal Plain will result in no significant
adverse effect on fish and wildlife, their habitat, subsistence
resources, and the environment, and shall require the application
of the best commercially available technology for oil and gas explo-
ration, development, and production, on all new exploration, devel-
opment, and production operations, and whenever practicable, on
existing operations, and in a manner to ensure the receipt of fair
market value by the public for the mineral resources to be leased.
(b) REPEAL.—The prohibitions and limitations contained in sec-
tion 1003 of the Alaska National Interest Lands Conservation Act
of 1980 (16 U.S.C. 3143) are hereby repealed.
(c) COMPATIBILITY.—Congress hereby determines that the oil
and gas leasing program and activities authorized 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 deter-
mination.
(d) SOLE AUTHORITY.—This chapter shall be the sole authority
for leasing on the Coastal Plain: Provided, That nothing in this
chapter shall be deemed to expand or limit State and local regu-
latory authority.
(e) FEDERAL LAND.—The Coastal Plain shall be considered ‘‘Fed-
eral land’’ for the purposes of the Federal Oil and Gas Royalty
Management Act of 1982 .
(f) SPECIAL AREAS.—The Secretary, after consultation with the
State of Alaska, City of Kaktovik, and the North Slope Borough,
is authorized to designate up to a total of 45,000 acres of the
Coastal Plain as Special Areas and close such areas to leasing
if the Secretary determines that these Special Areas are of such
unique character and interest so as to require special management
and regulatory protection. The Secretary may, however, permit
leasing of all or portions of any Special Areas within the Coastal
Plain 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 designated Special Areas.
(g) LIMITATION ON CLOSED AREAS.—The Secretary’s sole author-
ity to close lands within the Coastal Plain to oil and gas leasing
and to exploration, development, and production is that set forth
in this subtitle.
(h) CONVEYANCE.—In order to maximize Federal revenues by
removing clouds on title of lands and clarifying land ownership
patterns within the Coastal Plain, the Secretary, notwithstanding
the provisions of section 1302(h)(2) of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3192(h)(2)), is authorized and
directed to convey (1) to the Kaktovik Inupiat Corporation the
surface estate of the lands described in paragraph 2 of Public
Land Order 6959, to the extent necessary to fulfill the Corporation’s
H. R. 2491—97
entitlement under section 12 of the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1611), and (2) to the Arctic Slope Regional
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.
SEC. 5334. RULES AND REGULATIONS.
(a) PROMULGATION.—The Secretary shall prescribe such rules
and regulations as may be necessary to carry out the purposes
and provisions of this chapter, including rules and regulations relat-
ing to protection of the fish and wildlife, their habitat, subsistence
resources, and the environment of the Coastal Plain. Such rules
and regulations shall be promulgated no later than fourteen months
after the date of enactment of this chapter and shall, as of their
effective date, apply to all operations conducted under a lease
issued or maintained under the provisions of this chapter and
all operations on the Coastal Plain related to the leasing, explo-
ration, development and production of oil and gas.
(b) REVISION OF REGULATIONS.—The Secretary shall periodi-
cally review and, if appropriate, revise the rules and regulations
issued under subsection (a) of this section to reflect any significant
biological, environmental, or engineering data which come to the
Secretary’s attention.
SEC. 5335. ADEQUACY OF THE DEPARTMENT OF THE INTERIOR’S
LEGISLATIVE ENVIRONMENTAL IMPACT STATEMENT.
The ‘‘Final Legislative Environmental Impact Statement’’ (April
1987) on the Coastal Plain prepared pursuant to section 1002
of the Alaska National Interest Lands Conservation Act of 1980
(16 U.S.C. 3142) and section 102(2)(C) of the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is hereby found
by the Congress to be adequate to satisfy the legal and procedural
requirements of the National Environmental Policy Act of 1969
with respect to actions authorized to be taken by the Secretary
to develop and promulgate the regulations for the establishment
of the leasing program authorized by this chapter, to conduct the
first lease sale and any subsequent lease sale authorized by this
chapter, and to grant rights-of-way and easements to carry out
the purposes of this chapter.
SEC. 5336. LEASE SALES.
(a) LEASE SALES.—Lands may be leased pursuant to the provi-
sions of this chapter to any person qualified to obtain a lease
for deposits of oil and gas under the Mineral Leasing Act, as
amended (30 U.S.C. 181).
(b) PROCEDURES.—The Secretary shall, by regulation, establish
procedures for—
(1) receipt and consideration of sealed nominations for any
area in the Coastal Plain for inclusion in, or exclusion (as
provided in subsection (c)) from, a lease sale; and
(2) public notice of and comment on designation of areas
to be included in, or excluded from, a lease sale.
(c) LEASE SALES ON COASTAL PLAIN.—The Secretary shall, by
regulation, provide for lease sales of lands on the Coastal Plain.
When lease sales are to be held, they shall occur after the nomina-
tion process provided for in subsection (b) of this section. For
the first lease sale, the Secretary shall offer for lease those acres
receiving the greatest number of nominations, but no less than
H. R. 2491—98
two hundred thousand acres and no more than three hundred
thousand acres shall be offered. If the total acreage nominated
is less than two hundred thousand acres, the Secretary shall include
in such sale any other acreage which he believes has the highest
resource potential, but in no event shall more than three hundred
thousand acres of the Coastal Plain be offered in such sale. With
respect to subsequent lease sales, the Secretary shall offer for
lease no less than two hundred thousand acres of the Coastal
Plain. The initial lease sale shall be held within twenty months
of the date of enactment of this chapter. The second lease sale
shall be held no later than twenty-four months after the initial
sale, with additional sales conducted no later than twelve months
thereafter so long as sufficient interest in development exists to
warrant, in the Secretary’s judgment, the conduct of such sales.
SEC. 5337. GRANT OF LEASES BY THE SECRETARY.
(a) IN GENERAL.—The Secretary is authorized to grant to the
highest responsible qualified bidder by sealed competitive cash
bonus bid any lands to be leased on the Coastal Plain upon payment
by the lessee of such bonus as may be accepted by the Secretary
and of such royalty as may be fixed in the lease, which shall
be not less than 121⁄2 per centum in amount or value of the produc-
tion removed or sold from the lease.
(b) ANTITRUST REVIEW.—Following each notice of a proposed
lease sale and before the acceptance of bids and the issuance
of leases based on such bids, the Secretary shall allow the Attorney
General, in consultation with the Federal Trade Commission, thirty
days to perform an antitrust review of the results of such lease
sale on the likely effects the issuance of such leases would have
on competition and the Attorney General shall advise the Secretary
with respect to such review, including any recommendation for
the nonacceptance of any bid or the imposition of terms or conditions
on any lease, as may be appropriate to prevent any situation
inconsistent with the antitrust laws.
(c) SUBSEQUENT TRANSFERS.—No lease issued under this chap-
ter may be sold, exchanged, assigned, sublet, or otherwise trans-
ferred except with the approval of the Secretary. Prior to any
such approval the Secretary shall consult with, and give due consid-
eration to the views of, the Attorney General.
(d) IMMUNITY.—Nothing in this chapter shall be deemed to
convey to any person, association, corporation, or other business
organization immunity from civil or criminal liability, or to create
defenses to actions, under any antitrust law.
(e) DEFINITIONS.—As used in this section, the term—
(1) ‘‘antitrust review’’ shall be deemed an ‘‘antitrust inves-
tigation’’ for the purposes of the Antitrust Civil Process Act
(15 U.S.C. 1311); and
(2) ‘‘antitrust laws’’ means those Acts set forth in section
1 of the Clayton Act (15 U.S.C. 12) as amended.
SEC. 5338. LEASE TERMS AND CONDITIONS.
An oil or gas lease issued pursuant to this chapter shall—
(1) be for a tract consisting of a compact area not to
exceed five thousand seven hundred sixty acres, or nine sur-
veyed or protracted sections which shall be as compact in
form as possible;
(2) be for an initial period of ten years and shall be
extended for so long thereafter as oil or gas is produced in
H. R. 2491—99
paying quantities from the lease or unit area to which the
lease is committed or for so long as drilling or reworking
operations, as approved by the Secretary, are conducted on
the lease or unit area;
(3) require the payment of royalty as provided for in section
5337 of this chapter;
(4) require that exploration activities pursuant to any lease
issued or maintained under this chapter shall be conducted
in accordance with an exploration plan or a revision of such
plan approved by the Secretary;
(5) require that all development and production pursuant
to a lease issued or maintained pursuant to this chapter shall
be conducted in accordance with development and production
plans approved by the Secretary;
(6) require posting of bond as required by section 5339
of this chapter;
(7) provide that the Secretary may close, on a seasonal
basis, portions of the Coastal Plain to exploratory drilling activi-
ties as necessary to protect caribou calving areas and other
species of fish and wildlife;
(8) contain such provisions relating to rental and other
fees as the Secretary may prescribe at the time of offering
the area for lease;
(9) provide that the Secretary may direct or assent to
the suspension of operations and production under any lease
granted under the terms of this chapter in the interest of
conservation of the resource or where there is no available
system to transport the resource. If such a suspension is
directed or assented to by the Secretary, any payment of rental
prescribed by such lease shall be suspended during such period
of suspension of operations and production, and the term of
the lease shall be extended by adding any such suspension
period thereto;
(10) provide that whenever the owner of a nonproducing
lease fails to comply with any of the provisions of this chapter,
or of any applicable provision of Federal or State environmental
law, or of the lease, or of any regulation issued under this
chapter, such lease may be canceled by the Secretary if such
default continues for more than thirty days after mailing of
notice by registered letter to the lease owner at the lease
owner’s record post office address of record;
(11) provide that whenever the owner of any producing
lease fails to comply with any of the provisions of this chapter,
or of any applicable provision of Federal or State environmental
law, or of the lease, or of any regulation issued under this
chapter, such lease may be forfeited and canceled by any appro-
priate proceeding brought by the Secretary in any United States
district court having jurisdiction under the provisions of this
chapter;
(12) provide that cancellation of a lease under this chapter
shall in no way release the owner of the lease from the obliga-
tion to provide for reclamation of the lease site;
(13) allow the lessee, at the discretion of the Secretary,
to make written relinquishment of all rights under any lease
issued pursuant to this chapter. The Secretary shall accept
such relinquishment by the lessee of any lease issued under
H. R. 2491—100
this chapter where there has not been surface disturbance
on the lands covered by the lease;
(14) provide that for the purpose of conserving the natural
resources of any oil or gas pool, field, or like area, or any
part thereof, and in order to avoid the unnecessary duplication
of facilities, to protect the environment of the Coastal Plain,
and to protect correlative rights, the Secretary shall require
that, to the greatest extent practicable, lessees unite with each
other in collectively adopting and operating under a cooperative
or unit plan of development for operation of such pool, field,
or like area, or any part thereof, and the Secretary is also
authorized and directed to enter into such agreements as are
necessary or appropriate for the protection of the United States
against drainage;
(15) require that the holder of a lease or leases on lands
within the Coastal Plain shall be fully responsible and liable
for the reclamation of lands within the Coastal Plain and
any other Federal lands adversely affected in connection with
exploration, development, production or transportation activi-
ties on a lease within the Coastal Plain by the holder of a
lease or as a result of activities conducted on the lease by
any of the leaseholder’s subcontractors or agents;
(16) provide that the holder of a lease may not delegate
or convey, by contract or otherwise, the reclamation responsibil-
ity and liability to another party without the express written
approval of the Secretary;
(17) provide that the standard of reclamation for lands
required to be reclaimed under this chapter be, as nearly as
practicable, a condition capable of supporting the uses which
the lands were capable of supporting prior to any exploration,
development, or production activities, or upon application by
the lessee, to a higher or better use as approved by the Sec-
retary;
(18) contain the terms and conditions relating to protection
of fish and wildlife, their habitat, and the environment, as
required by section 5333(a) of this chapter;
(19) provide that the holder of a lease, its agents, and
contractors use best efforts to provide a fair share, as deter-
mined by the level of obligation previously agreed to in the
1974 agreement implementing Section 29 of the Federal Agree-
ment and Grant of Right of Way for the Operation of the
Trans-Alaska Pipeline, of employment and contracting for
Alaska Natives and Alaska Native Corporations from through-
out the State; and
(20) contain such other provisions as the Secretary deter-
mines necessary to ensure compliance with the provisions of
this chapter and the regulations issued under this chapter.
SEC. 5339. BONDING REQUIREMENTS TO ENSURE FINANCIAL RESPON-
SIBILITY OF LESSEE AND AVOID FEDERAL LIABILITY.
(a) REQUIREMENT.—The Secretary shall, by rule or regulation,
establish such standards as may be necessary to ensure that an
adequate bond, surety, or other financial arrangement will be estab-
lished prior to the commencement of surface disturbing activities
on any lease, to ensure the complete and timely reclamation of
the lease tract, and the restoration of any lands or surface waters
adversely affected by lease operations after the abandonment or
H. R. 2491—101
cessation of oil and gas operations on the lease. Such bond, surety,
or financial arrangement is in addition to, and not in lieu, of
any bond, surety, or financial arrangement required by any other
regulatory authority or required by any other provision of law.
(b) AMOUNT.—The bond, surety, or financial arrangement shall
be in an amount—
(1) to be determined by the Secretary to provide for rec-
lamation of the lease site in accordance with an approved
or revised exploration or development and production plan;
plus
(2) set by the Secretary consistent with the type of oper-
ations proposed, to provide the means for rapid and effective
cleanup, and to minimize damages resulting from an oil spill,
the escape of gas, refuse, domestic wastewater, hazardous or
toxic substances, or fire caused by oil and gas activities.
(c) ADJUSTMENT.—In the event that an approved exploration
or development and production plan is revised, the Secretary may
adjust the amount of the bond, surety, or other financial arrange-
ment to conform to such modified plan.
(d) DURATION.—The responsibility and liability of the lessee
and its surety under the bond, surety, or other financial arrange-
ment shall continue until such time as the Secretary determines
that there has been compliance with the terms and conditions
of the lease and all applicable law.
(e) TERMINATION.—Within sixty days after determining that
there has been compliance with the terms and conditions of the
lease and all applicable laws, the Secretary, after consultation with
affected Federal and State agencies, shall notify the lessee that
the period of liability under the bond, surety, or other financial
arrangement has been terminated.
SEC. 5340. OIL AND GAS INFORMATION.
(a) IN GENERAL.—(1) Any lessee or permittee conducting any
exploration for, or development or production of, oil or gas pursuant
to this chapter shall provide the Secretary access to all data and
information from any lease granted pursuant to this chapter (includ-
ing processed and analyzed) obtained from such activity and shall
provide copies of such data and information as the Secretary may
request. Such data and information shall be provided in accordance
with regulations which the Secretary shall prescribe.
(2) If processed and analyzed information provided pursuant
to paragraph (1) is provided in good faith by the lessee or permittee,
such lessee or permittee shall not be responsible for any con-
sequence of the use or of reliance upon such processed and analyzed
information.
(3) Whenever any data or information is provided to the Sec-
retary, pursuant to paragraph (1)—
(A) by a lessee or permittee, in the form and manner
of processing which is utilized by such lessee or permittee
in the normal conduct of business, the Secretary shall
pay the reasonable cost of reproducing such data and
information; or
(B) by a lessee or permittee, in such other form and
manner of processing as the Secretary may request, the
Secretary shall pay the reasonable cost of processing and
reproducing such data and information.
H. R. 2491—102
(b) REGULATIONS.—The Secretary shall prescribe regulations
to: (1) assure that the confidentiality of privileged or proprietary
information received by the Secretary under this section will be
maintained; and (2) set forth the time periods and conditions which
shall be applicable to the release of such information.
SEC. 5341. EXPEDITED JUDICIAL REVIEW.
(a) Any complaint seeking judicial review of any provision in
this chapter, or any other action of the Secretary under this chapter
may be filed in any appropriate district court of the United States,
and such complaint must be filed within ninety days from the
date of the action being challenged, or after such date if such
complaint is based solely on grounds arising after such ninetieth
day, in which case the complaint must be filed within ninety days
after the complainant knew or reasonably should have known of
the grounds for the complaint: Provided, That any complaint seeking
judicial review of an action of the Secretary in promulgating any
regulation under this chapter may be filed only in the United
States Court of Appeals for the District of Columbia.
(b) Actions of the Secretary with respect to which review could
have been obtained under this section shall not be subject to judicial
review in any civil or criminal proceeding for enforcement.
SEC. 5342. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
Notwithstanding Title XI of the Alaska National Interest Lands
Conservation Act of 1980 (16 U.S.C. 3161 et seq.), the Secretary
is authorized and directed to grant, in accordance with the provi-
sions of Section 28(c) through (t) and (v) through (y) of the Mineral
Leasing Act of 1920 (30 U.S.C. 185), rights-of-way and easements
across the Coastal Plain for the transportation of oil and gas under
such terms and conditions as may be necessary so as not to result
in a significant adverse effect on the fish and wildlife, subsistence
resources, their habitat, and the environment of the Coastal Plain.
Such terms and conditions shall include requirements that facilities
be sited or modified so as to avoid unnecessary duplication of
roads and pipelines. The regulations issued as required by section
5334 of this chapter shall include provisions granting rights-of-
way and easements across the Coastal Plain.
SEC. 5343. ENFORCEMENT OF SAFETY AND ENVIRONMENTAL REGULA-
TIONS TO ENSURE COMPLIANCE WITH TERMS AND
CONDITIONS OF LEASE.
(a) RESPONSIBILITY OF THE SECRETARY.—The Secretary shall
diligently enforce all regulations, lease terms, conditions, restric-
tions, prohibitions, and stipulations promulgated pursuant to this
chapter.
(b) RESPONSIBILITY OF HOLDERS OF LEASE.—It shall be the
responsibility of any holder of a lease under this chapter to—
(1) maintain all operations within such lease area in compli-
ance with regulations intended to protect persons and property
on, and fish and wildlife, their habitat, subsistence resources,
and the environment of, the Coastal Plain; and
(2) allow prompt access at the site of any operations subject
to regulation under this chapter to any appropriate Federal
or State inspector, and to provide such documents and records
which are pertinent to occupational or public health, safety,
or environmental protection, as may be requested.
H. R. 2491—103
(c) ON-SITE INSPECTION.—The Secretary shall promulgate regu-
lations to provide for—
(1) scheduled onsite inspection by the Secretary, at least
twice a year, of each facility on the Coastal Plain which is
subject to any environmental or safety regulation promulgated
pursuant to this chapter or conditions contained in any lease
issued pursuant to this chapter to assure compliance with
such environmental or safety regulations or conditions; and
(2) periodic onsite inspection by the Secretary at least
once a year without advance notice to the operator of such
facility to assure compliance with all environmental or safety
regulations.
SEC. 5344. NEW REVENUES.
(a) DISTRIBUTION OF REVENUES.—(1) Notwithstanding any other
provision of law, all revenues received by the Federal Government
from competitive bids, sales, bonuses, royalties, rents, fees, or
interest derived from the leasing of oil and gas within the Coastal
Plain shall be deposited into the Treasury of the United States,
solely as provided in this subsection.
(2) Fifty percent of all revenues referred to in paragraph (1)
shall be paid by the Secretary of the Treasury semiannually to
the State of Alaska, on March 30 and September 30 of each year.
(3)(A) The Secretary of the Treasury is directed to monitor
the revenues deposited into the Treasury from oil and gas leases
issued under the authority of this chapter. Except as provided
in subparagraph (B), all monies deposited into the Treasury from
such oil and gas leases in excess of $2,600,000,000 shall be distrib-
uted as follows:
(i) Fifty percent shall be paid to the State of Alaska in
the manner provided in this subsection; and
(ii) Fifty percent shall be deposited into a special fund
established in the Treasury of the United States known as
the ‘‘National Park, Refuge, and Fish and Wildlife Renewal
and Protection Fund (hereinafter in this section referred to
as the ‘‘renewal fund’’).
(B) Deposits into the renewal fund shall not exceed
$250,000,000 over the life of the renewal fund. Monies in excess
of such amount shall be deposited as miscellaneous receipts in
the Treasury of the United States.
(C) Deposits into the renewal fund shall remain available until
expended. The Secretary of the Treasury is directed to develop
procedures for use of the renewal fund to ensure accountability
and demonstrated results.
(b) USE OF RENEWAL FUND.—Monies from the renewal fund
shall be made available to the Secretary of the Interior, without
further appropriation, at the beginning of each fiscal year in which
funds are available, and shall be expended by the Secretary as
follows:
(1) Twenty-five percent shall be used for infrastructure
needs at units of the National Park System, including but
not limited to, facility refurbishment, repair and replacement,
interpretive media and exhibit repair and replacement, and
infrastructure projects associated with park resource protection;
(2) Twenty-five percent shall be used for infrastructure
needs at units of the National Wildlife Refuge System, including
but not limited to, facility refurbishment, repair and replace-
H. R. 2491—104
ment, interpretive media and exhibit repair and replacement,
and infrastructure projects associated with refuge resource
protection;
(3) Twenty-five percent shall be used for acquisition of
important habitat lands for threatened or endangered species
from owners of private property. Such lands shall be acquired
solely on a willing seller basis and shall be managed by the
Secretary for the conservation of such species pursuant to the
terms of section 5 of the Endangered Species Act of 1973
(16 U.S.C. 1534); and
(4) Twenty-five percent shall be available for wetlands
projects in accordance with the applicable provision of the North
American Wetlands Conservation Act (16 U.S.C. 4401 et seq.).
(c) COMMUNITY ASSISTANCE.—There is hereby established a
Community Assistance Fund in the Treasury into which shall be
deposited $30,000,000 from revenues derived from the Federal share
of the first lease sale authorized under this chapter. The Secretary
of the Treasury shall invest the funds in the Community Assistance
Fund in interest bearing government securities. No more than
$5,000,000 per year from the Community Assistance Fund, shall
be available to the Secretary for distribution, upon application
and without further appropriation, to organized boroughs, other
municipal subdivisions of the State of Alaska, and recognized Indian
Reorganization Act entities which are directly impacted by the
exploration and production of oil and gas on the Coastal Plain
authorized by this chapter to provide public and social services
and facilities required in connection with such activities.
CHAPTER 3—WATER PROJECTS
Subchapter A—Irrigation Prepayment
SEC. 5351. AUTHORIZATION FOR PREPAYMENT OF CONSTRUCTION
CHARGES.
Subsection 213(a) of the Reclamation Reform Act of 1982 (96
Stat.1269, 43 U.S.C. 390mm(a)) is amended:
(1) by adding at the beginning:
‘‘Notwithstanding any provision of Reclamation law or limita-
tion contained in any repayment or water service contract, any
person or district holding such a contract or receiving water under
such a contract with the United States may prepay the construction
costs referred to in this section either through accelerated or lump
sum payments. For the purposes of such prepayment only, the
project to which such contract applies is declared to be complete
and the Secretary shall determine the repayment obligations associ-
ated with the construction costs of the project facilities so that
accelerated payments or a lump sum payment may be made. The
amount of any prepayment shall be calculated by discounting the
remaining payments due under a contract in accordance with the
guidelines set forth in Circular A–129 issued by the Office of
Management and Budget: Provided, That the discount shall be
adjusted by any amounts necessary to compensate the Federal
Government for the direct or indirect loss of future tax revenues
if the individual or district plans to use federally tax-exempt financ-
ing for such prepayment.’’;
(2) by striking ‘‘lands in a district’’ and inserting: ‘‘lands
in a district, or lands owned or leased by a person’’;
H. R. 2491—105
(3) by striking ‘‘obligation of a district’’ and inserting:
‘‘obligation of a district or a person’’;
(4) by striking ‘‘enactment of this Act.’’ and inserting:
‘‘enactment of this Act or as otherwise provided for in this
section. Any additional capital costs incurred after the date
of such prepayment shall be recoverable as a separate obligation
and shall not be considered to be a new or supplemental benefit
for the purposes of this Act nor cause the full cost pricing
limitation of this Act or the ownership limitations contained
in any provision of Federal reclamation law to apply to the
lands to which such capital costs apply.’’.
SEC. 5352. CONFORMING AMENDMENT.
Subsection 213(c) of the Reclamation Reform Act of 1982 (43
U.S.C. 390mm(c)) is repealed.
Subchapter B—Hetch Hetchy
SEC. 5353. HETCH HETCHY DAM.
Section 7 of the Act of December 19, 1913 (38 Stat. 242, chapter
4), is amended—
(1) by striking ‘‘$30,000’’ in the first sentence and inserting
‘‘$2,000,000’’; 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, notwithstanding any other provision
of law, shall not be available for obligation or expenditure
until appropriated 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.’’.
Subchapter C—Collbran Project
SEC. 5355. COLLBRAN PROJECT.
(a) SHORT
TITLE.—This subchapter may be cited as the
‘‘Collbran Project Unit Conveyance Act’’.
(b) DEFINITIONS.—For purposes of this subchapter:
(1) DISTRICTS.—The term ‘‘Districts’’ means the Ute Water
Conservancy District and the Collbran Conservancy District
(including their successors and assigns), which are political
subdivisions of the State of Colorado.
(2) FEDERAL RECLAMATION LAWS.—The term ‘‘Federal rec-
lamation laws’’ means the Act of June 17, 1902 and Acts
amendatory thereof or supplementary thereto (32 Stat. 388,
chapter 1093; 43 U.S.C. 371 et seq.) (including regulations
adopted pursuant to those Acts).
(3) PROJECT.—The term ‘‘Project’’ means the Collbran Rec-
lamation Project, as constructed and operated under the Act
of July 3, 1952 (66 Stat. 325, chapter 565), including all prop-
erty, equipment, and assets of or relating to the Project that
are owned by the United States, including—
(A) Vega Dam and Reservoir (but not including The
Vega Recreation Facilities);
(B) Leon-Park Dams and Feeder Canal;
(C) Southside Canal;
(D) East Fork Diversion Dam and Feeder Canal;
H. R. 2491—106
(E) Bonham-Cottonwood Pipeline;
(F) Snowcat Shed and Diesel Storage;
(G) Upper Molina Penstock and Power Plant;
(H) Lower Molina Penstock and Power Plant;
(I) the diversion structure in the tailrace of the Lower
Molina Power Plant;
(J) all substations and switchyards;
(K) a non-exclusive easement for the use of existing
easements or rights-of-way owned by the United States
on or across non-Federal lands which are necessary for
access to Project facilities;
(L) title to lands reasonably necessary for all Project
facilities except for land described in subparagraph (K)
or subsection (c)(1)(B) or (C);
(M) all permits and contract rights held by the Bureau
of Reclamation, including, without limitation, contract or
other rights relating to the operation, use, maintenance,
repair, or replacement of the water storage reservoirs
located on the Grand Mesa which are operated as a part
of the Project;
(N) all equipment, parts inventories, and tools;
(O) all additions, replacements, betterments, and
appurtenances to any of the above; and
(P) a copy of all data, plans, designs, reports, records,
or other materials, whether in writing or in any form
of electronic storage relating specifically to the Project.
(4) VEGA RECREATION FACILITIES.—The term ‘‘Vega Recre-
ation Facilities’’ includes, but is not limited to, buildings, camp-
grounds, picnic areas, parking lots, fences, boat docks and
ramps, electrical lines, water and sewer systems, trash and
toilet facilities, roads and trails, and other structures and equip-
ment used for State park purposes at and near Vega Reservoir
such as recreation, maintenance and daily and overnight visitor
use, and lands above the high water level of Vega Reservoir
within the area previously defined by the Department of the
Interior as the ‘‘Reservoir Area Boundary’’ which have not
historically been utilized for Collbran Project water storage
and delivery facilities, together with an easement for public
access for recreational purposes to Vega Reservoir and the
water surface thereof, and construction, operation, maintenance
and replacement of such recreation facilities below the high
water line. Such facilities shall also include improvements con-
structed or added as a result of the agreements referred to
in section (c)(6).
(c) CONVEYANCE OF THE COLLBRAN PROJECT.—
(1) IN GENERAL.—
(A) CONVEYANCE TO DISTRICTS.—The Secretary of the
Interior shall convey to the Districts all right, title, and
interest of the United States in and to the Project, as
described in subsection (b)(3), by quitclaim deed and bill
of sale, without warranties, in the last quarter of fiscal
year 2000, subject only to the requirements of this section.
Until such conveyance occurs, the Bureau of Reclamation
shall continue to provide for the operation, maintenance,
repair, and replacement of Project facilities and the storage
reservoirs on the Grand Mesa to the extent such respon-
sibilities are the responsibility of the Bureau of Reclama-
H. R. 2491—107
tion and have not been delegated to the Districts prior
to the date of enactment of this Act or are delegated or
transferred to the Districts by agreement thereafter, so
that at the time of conveyance such facilities are in the
same condition as, or better condition than, the condition
of the facilities on the date of enactment of this Act.
(B) EASEMENTS ON NATIONAL FOREST SYSTEM LANDS.—
The Secretary of Agriculture shall grant, in the last quarter
of fiscal year 2000, subject only to the requirements of
this section; (i) a non-exclusive easement on and across
National Forest System lands to the Districts for ingress
and egress on existing access routes to each existing compo-
nent of the Project and to the existing storage reservoirs
on the Grand Mesa which are operated as a part of the
Project; (ii) a non-exclusive easement on National Forest
System lands for the operation, use, maintenance, repair,
and replacement, but not enlargement, of the existing stor-
age reservoirs on the Grand Mesa to the owners and opera-
tors of such reservoirs which are operated as a part of
the Project; which easement may be exercised in the event
that the existing land use authorizations for such storage
reservoirs are restricted, terminated, relinquished, or aban-
doned, and which easement shall not be subject to condi-
tions or requirements that interfere with or limit the use
of such reservoirs for water supply or power purposes;
and (iii) a non-exclusive easement to the Districts for the
operation, use, maintenance, repair, and replacement, but
not enlargement, of those components of Project facilities
which are located on National Forest System lands, subject
to the requirement that the Districts shall provide reason-
able notice to and the opportunity for consultation with
the designated representative of the Secretary of Agri-
culture for non-routine, non-emergency activities that occur
on such easements.
(C) EASEMENTS TO DISTRICTS FOR SOUTHSIDE CANAL.—
The Secretary of the Interior shall grant to the Districts,
in the last quarter of fiscal year 2000, subject only to
the requirements of this section, (i) a non-exclusive ease-
ment on and across lands administered by agencies within
the Department of the Interior for ingress and egress on
existing access routes to and along the Southside Canal,
and (ii) a non-exclusive easement for the operation, use,
maintenance, repair, and replacement of the Southside
Canal, subject to the requirement that the Districts shall
provide reasonable notice to and the opportunity for con-
sultation with the designated representative of the Sec-
retary of the Interior for non-routine, non-emergency activi-
ties that occur on such easements.
(2) RESERVATION.—The transfer of rights and interests
pursuant to paragraphs (1)(A), (B), and (C) shall reserve to
the United States all minerals, including hydrocarbons, and
a perpetual right of public access over, across, under, and
to the portions of the Project which on the date of enactment
of this Act were open to public use for fishing, boating, hunting,
and other outdoor recreation purposes and other public uses
such as grazing, mineral development and logging: Provided,
That the United States may allow for continued public use
H. R. 2491—108
and enjoyment of such portions of the Project for recreational
activities and other public uses conducted as of the date of
enactment of this Act.
(3) CONVEYANCE TO STATE OF COLORADO.—All right, title,
and interest in the Vega Recreation Facilities shall remain
in the United States until the terms of the agreements referred
to in paragraph (6) have been fulfilled by the United States.
At such time, all right, title, and interest in the Vega Recreation
Facilities shall be conveyed by the Secretary of the Interior
to the State of Colorado, Division of Parks and Outdoor Recre-
ation.
(4) PAYMENT.—
(A) IN GENERAL.—At the time of transfer, the Districts
shall pay to the United States $12,900,000 ($12,300,000
of which represents the net present value of the outstand-
ing repayment obligations for the Project), of which—
(i) $12,300,000 shall be deposited in the general
fund of the United States Treasury; and
(ii) $600,000 shall be deposited in a special account
in the United States Treasury and shall be available
to the United States Fish and Wildlife Service, Region
6, without further appropriation, for use in funding
Colorado operations and capital expenditures associ-
ated with the Grand Valley Water Management Project
for the purpose of recovering endangered fish in the
Upper Colorado River Basin, as identified in the Recov-
ery Implementation Program for Endangered Fish Spe-
cies in the Upper Colorado River Basin, or such other
component of the Recovery Implementation Program
within Colorado that is selected with the concurrence
of the Governor of the State of Colorado.
(B) SOURCE OF FUNDS.—Funds for the payment to the
extent of the amount specified in subparagraph (A) shall
not be derived from the issuance or sale, prior to the
conveyance, of State or local bonds the interest on which
is exempt from taxation under section 103 of the Internal
Revenue Code of 1986.
(5) OPERATION OF PROJECT.—
(A) IN GENERAL.—The Project was authorized and con-
structed to place water to beneficial use for authorized
purposes within the State of Colorado. The Project shall
be operated and used by the Districts for a period of 40
years after the date of enactment of this Act for the pur-
poses for which the Project was authorized under the Act
of July 3, 1952 (66 Stat. 325, chapter 565). The Districts
shall attempt to the extent practicable, taking into consid-
eration historic Project operations, to notify the State of
Colorado of changes in historic Project operations which
may adversely affect State park operations.
(B) 
REQUIREMENTS.—During 
the 
40-year 
period
described in subparagraph (A)—
(i) the Districts shall annually submit to the Sec-
retary of Agriculture and the Colorado Department
of Natural Resources a plan for operation of the Project,
which plan shall—
(I) report on Project operations for the previous
year;
H. R. 2491—109
(II) provide a description of the manner of
Project operations anticipated for the forthcoming
year, which shall be prepared after consultation
with the designated representatives of the Sec-
retary of Agriculture, the Board of County
Commissioners of Mesa County, Colorado, and the
Colorado Department of Natural Resources; and
(III) certify that the Districts have operated
and will operate and maintain the Project facilities
in accordance with sound engineering practices;
and
(ii) subject to subsection (d), all electric power gen-
erated by operation of the Project shall be made avail-
able to and be marketed by the Western Area Power
Administration (including its successors or assigns).
(6) AGREEMENTS.—Conveyance of the Project shall be sub-
ject to the agreements between the United States and the
State of Colorado dated August 22, 1994, and September 23,
1994, relating to the construction and operation of recreational
facilities at Vega Reservoir, which agreements shall continue
to be performed by the parties thereto according to the terms
of the agreements.
(d) OPERATION OF THE POWER COMPONENT.—
(1) CONFORMITY
TO
HISTORIC
OPERATIONS.—The power
component and facilities of the Project shall be operated in
substantial conformity with the historic operations of the power
component and facilities (including recent operations in a peak-
ing mode).
(2) POWER MARKETING.—
(A) EXISTING
MARKETING
ARRANGEMENT.—The Post-
1989 Marketing Criteria, which provide for the marketing
of power generated by the power component of the Project
as part of the output of the Salt Lake City Area Integrated
Projects, shall no longer be binding on the Project upon
conveyance of the Project under subsection (c)(1).
(B) AFTER
TERMINATION
OF
EXISTING
MARKETING
ARRANGEMENT.—
(i) IN GENERAL.—After the conveyance, the Dis-
tricts shall offer all power produced by the power
component of the Project to the Western Area Power
Administration or its successors or assigns (referred
to in this section as ‘‘Western’’), which, in consultation
with its affected preference customers, shall have the
first right to purchase such power at the rates estab-
lished in accordance with clause (ii). If Western
declines to purchase the power after consultation with
its affected preference customers, such power shall
then be offered at the same rates first to Western’s
preference customers located in the Salt Lake City
Area Integrated Projects marketing area (referred to
in this section as the ‘‘SLCAIP preference customers’’).
Thereafter, such power may be sold to any other party:
Provided, however, That no such sale may occur at
rates less than rates established in accordance with
clause (ii) unless such power is first offered at such
lesser rate first to Western and then to its SLCAIP
preference customers.
H. R. 2491—110
(ii) The rate for power initially offered to Western
and its SLCAIP preference customers under this para-
graph shall not exceed that required to produce reve-
nues sufficient to provide for—
(I) annual debt service and/or recoupment of
the cost of capital for the amount specified in
subsection (c)(4)(A)(i) of this section, less the sum
of $310,000 (which is the net present value of
the outstanding repayment obligation of the
Collbran Conservancy District), and
(II) the cost of operation, maintenance, and
replacement of the power component of the Project.
Such costs and rate shall be determined in a manner
consistent with the current principles followed by the
Secretary of the Interior and by Western in its annual
power and repayment study.
(e) LICENSE.—
(1) Prior to the conveyance of the Project to the Districts,
the Commission shall issue to the Districts a license or licenses
as appropriate under part I of the Federal Power Act, as
amended, (16 U.S.C. 791 et seq.), authorizing for a term of
40 years the continued operation and maintenance of the power
component of the Project.
(2) The license issued pursuant to subsection (1):
(A) shall be for the purpose of operating, using,
maintaining, repairing, and replacing the power component
of the Project as authorized by the Act of July 3, 1952
(66 Stat. 325, chapter 565);
(B) shall be conditioned upon the requirement that
the power component of the Project continue to be operated
and maintained in accordance with the authorized purposes
of the Project;
(C) shall be subject only to the provisions of Part
I of the Federal Power Act, except the word ‘‘constructed’’
in section 3(10); the four provisos of section 4(e); section
6 to the extent it requires the licensee’s acceptance of
those terms and conditions of the Act that this subsection
waives; section 10(e) as concerns annual charges for the
use and occupancy of Federal lands and facilities; section
10(f); section 10(j); section 18; section 19; section 20; and
section 22 of the Federal Power Act, 16 U.S.C. 796(10),
797(e), 799, 803(e), 803(f), 803(j), 811, 812, 813, and 815;
and shall not be subject to the standard ‘‘L–Form’’ license
conditions, published at 54 FPC 1792–1928 (1975), the
Federal Land Policy and Management Act (43 U.S.C. 1701
et seq.), as amended, section 2402 of the Energy Policy
Act of 1992 (16 U.S.C. 797c), the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), the Endangered
Species Act of 1973 (16 U.S.C. 1531 et seq.), the Wild
and Scenic Rivers Act (16 U.S.C. 1271 et seq.), the Federal
Water Pollution Control Act (commonly known as the
‘‘Clean Water Act’’) (33 U.S.C. 1251 et seq.), the National
Historic Preservation Act (16 U.S.C. 470 et seq.), the
Coastal Zone Management Act of 1972 (16 U.S.C. 1451
et seq.), the Fish and Wildlife Coordination Act (16 U.S.C.
661 et seq.), or any other Act otherwise applicable to the
licensing of the project.
H. R. 2491—111
(3) The license issued under paragraph (1) is deemed to
meet the licensing standards of the Federal Power Act, includ-
ing section 10(a) and the last sentence of section 4(e), 16 U.S.C.
797(e).
(4) Any power site reservation established by the President,
the Secretary of the Interior, or pursuant to section 24 of
the Federal Power Act (16 U.S.C. 818) or any other law, which
exists on any lands, whether federally or privately owned,
that are included within the boundaries of the project shall
be vacated by operation of law upon issuance of the license
for the project.
(5) All requirements of Part I of the Federal Power Act
and of any other Act applicable to the licensing of a hydro-
electric project shall apply to the project upon expiration of
the license issued under this section.
(6) For purposes of this section, ‘‘Commission’’ means the
Federal Energy Regulatory Commission.
(7) The operation of the Project shall be subject to all
applicable State and Federal laws subsequent to the issuance
of the license pursuant to paragraph (1).
(f) INAPPLICABILITY OF NEPA.—Neither the conveyance of the
Project nor the issuance of easements pursuant to this section
constitutes a major Federal action within the meaning of the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.), including any regulations issued under such Act.
(g) INAPPLICABILITY OF PRIOR AGREEMENTS AND OF FEDERAL
RECLAMATION LAWS.—On conveyance of the Project to the Dis-
tricts—
(1) the Repayment Contract dated May 27, 1957, as amend-
ed April 12, 1962, between the Collbran Conservancy District
and the United States, and the Contract for use of Project
facilities for Diversion of Water dated January 11, 1962, as
amended November 10, 1977, between the Ute Water Conser-
vancy District and the United States, shall be terminated and
of no further force or effect; and
(2) the Project shall no longer be subject to or governed
by the Federal reclamation laws.
(h) DISTRICTS’ LIABILITY.—The Districts shall be liable, to the
extent allowed under State law, for all acts or omissions relating
to the operation and use of the Project by the Districts that occur
subsequent to the conveyance under section (c), including damages
to Federal lands or facilities which result from the failure of Project
facilities.
(i) EFFECT ON STATE LAW.—Nothing in this section shall be
construed to impair the effectiveness of any State or local law
(including regulations) relating to land use.
(j) TREATMENT OF SALES FOR PURPOSES OF CERTAIN LAWS.—
The sales of assets under this subchapter shall not be considered
a disposal of Federal surplus property under the following provisions
of law:
(1) Section 203 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 484).
(2) Section 13 of the Surplus Property Act of 1944 (50
U.S.C. App. 1622).
H. R. 2491—112
Subchapter D—Sly Park
SEC. 5356. SLY PARK.
(a) SHORT TITLE.—This subchapter may be cited as the ‘‘Sly
Park Unit Conveyance Act’’.
(b) DEFINITIONS.—For purposes of this subchapter:
(1) The term ‘‘El Dorado Irrigation District’’ or ‘‘District’’
means a political subdivision of the State of California duly
organized, existing, and acting pursuant to the laws thereof
with its principal place of business in the city of Placerville,
El Dorado 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 authorized under the Act entitled ‘‘An
Act to authorize the American River Basin Development,
California, for irrigation and reclamation, and for other pur-
poses’’, approved October 14, 1949 (63 Stat. 852 chapter 690),
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, on or before Decem-
ber 31, 1997, and upon receipt of the payment for the original
construction debt described in paragraph (2), sell and convey
to the El Dorado Irrigation District all right, title, and interest
of the United States in and to the Sly Park Unit. At the
time the Sly Park Unit is conveyed, the Secretary shall also
transfer and assign to the District 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.
(2) SALE
PRICE.—The sale price for the Sly Park Unit
shall be $3,993,982, which is the outstanding balance for the
original construction of the Sly Park Unit payable to the United
States. Payment shall be deposited as miscellaneous receipts
in the Treasury and credited to the Central Valley Project
Restoration Fund. Payment of such price shall extinguish all
payment obligations under contract numbered 14–06–200–949
between the District and the Secretary.
(d) NO ADDITIONAL ENVIRONMENTAL IMPACT.—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 existing ongoing
water project, (B) the Sly Park Unit operation, facilities, and water
rights have been, and after the sale and transfer will continue
to be, committed 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 addi-
tional growth or expansion of the Project or other environmental
impacts. Consequently, the sale, conveyance and assignment of
the Sly Park Unit and water rights shall not be subject to environ-
mental review pursuant to the National Environmental Policy Act
of 1969 (42 U.S.C. 4332) or endangered species review or consulta-
tion pursuant to section 7 of the Endangered Species Act of 1973
(16 U.S.C. 1536).
H. R. 2491—113
(e) CERTAIN CONTRACT OBLIGATIONS NOT AFFECTED.—The sale
of the Sly Park Unit under this section shall not affect the payment
obligations of the District under the contract between the District
and the Secretary numbered 14–06–200–7734, as amended by con-
tracts numbered 14–06–200–4282A and 14–06–200–8536A.
(f) TREATMENT OF SALES FOR PURPOSES OF CERTAIN LAWS.—
The sales of assets under this subchapter part shall not be consid-
ered a disposal of Federal surplus property under the following
provisions of law:
(1) Section 203 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 484).
(2) Section 13 of the Surplus Property Act of 1944 (50
U.S.C. App. 1622).
Subchapter E—Central Utah Project
SEC. 5357. PREPAYMENT OF CERTAIN REPAYMENT CONTRACTS
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 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 supplemented on
November 26, 1985, providing for repayment of municipal and
industrial water delivery facilities for which repayment is provided
pursuant to such contract, under terms and conditions similar to
those contained in the supplemental contract that provided for
the prepayment of the Jordan Aqueduct dated October 28, 1993.
The prepayment may be provided in several installments to reflect
substantial completion of the delivery facilities being prepaid and
may not be adjusted on the basis of the type of prepayment financ-
ing utilized by the District: Provided, That the District shall com-
plete all payments authorized pursuant to this section by the end
of fiscal year 2002.’’.
CHAPTER 4—FEDERAL OIL AND GAS ROYALTIES
SEC. 5361. DEFINITIONS.
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 follows:
‘‘(7) ‘lessee’ means any person to whom the United States
issues an oil and gas lease or any person to whom operating
rights in a lease 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 additional payment or
credit, if any, applicable thereto, to rectify an underpayment
or overpayment on a lease;
‘‘(18) ‘administrative proceeding’ means any Department
of the Interior agency process in which a demand, decision
or order issued by the Secretary or a delegated State is subject
to appeal or has been appealed;
H. R. 2491—114
‘‘(19) ‘assessment’ means any fee or charge levied or
imposed by the Secretary or a delegated State 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, counterclaim, crossclaim, or other
pleading seeking affirmative relief or seeking credit or
recoupment; or
‘‘(B) with respect to a demand, the receipt by the
Secretary or a delegated State or a lessee of the demand;
‘‘(21) ‘credit’ means the application of an overpayment (in
whole or in part) against an obligation which has become due
to discharge, cancel or reduce the obligation;
‘‘(22) ‘delegated State’ means a State which, pursuant to
an agreement or agreements under section 205, performs
authorities, duties, responsibilities, or activities of the Secretary
which may be performed by a State under the Constitution
of the United States for all lands within the State, including,
but not limited to—
‘‘(A) activities under sections 111 and 115;
‘‘(B) collection, audit, lease and post-lease management
activities, and applicable enforcement activities;
‘‘(C) inspections (including activities described in sec-
tion 108);
‘‘(D) 
approval 
of 
pooling, 
unitization, 
and
communitization agreements; and
‘‘(E) investigations;
‘‘(23) ‘demand’ means—
‘‘(A) an order to pay issued by the Secretary or the
applicable delegated State that has a reasonable basis to
conclude that the obligation in the amount of the demand
is due and owing; or
‘‘(B) a separate written request by a lessee which
asserts an obligation due the lessee that has a reasonable
basis to conclude that the obligation in the amount of
the demand is due and owing, but does not mean any
royalty or production report, or any information contained
therein, required by the Secretary or a delegated State;
‘‘(24) ‘obligation’ means—
‘‘(A) any duty of the Secretary or, if applicable, a dele-
gated State—
‘‘(i) to take oil or gas royalty in kind at or near
the lease (unless the lease expressly provides for deliv-
ery at a different location); or
‘‘(ii) to pay, refund, offset, or credit monies includ-
ing but not limited to)—
‘‘(I) the principal amount of any royalty, mini-
mum 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 at or
near the lease (unless the lease expressly provides
for delivery at a different location); or
H. R. 2491—115
‘‘(ii) to pay, offset or credit monies including but
not limited to—
‘‘(I) the principal amount of any royalty, mini-
mum 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 administered by the Secretary
for, or any mineral leasing law related to, the
exploration, production and development of oil or
gas on Federal lands or the Outer Continental
Shelf;
‘‘(25) ‘order to pay’ means a written order issued by the
Secretary or the applicable delegated State which—
‘‘(A) asserts a specific, definite, and quantified obliga-
tion claimed to be due, and
‘‘(B) specifically identifies the obligation by lease,
production month and monetary amount of such obligation
claimed to be due and ordered to be paid, as well as
the reason or reasons such obligation is claimed to be
due, but such term does not include any other communica-
tion or action by or on behalf of the Secretary or a delegated
State;
‘‘(26) ‘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 produc-
tion month that is in excess of the royalties due for that
month;
‘‘(27) ‘payment’ means satisfaction, in whole or in part,
of an obligation;
‘‘(28) ‘penalty’ means a statutorily authorized civil fine
levied or imposed for a violation of this Act, any mineral leasing
law, or a term or provision of a lease administered by the
Secretary;
‘‘(29) ‘refund’ means the return of an overpayment;
‘‘(30) ‘State concerned’ means, with respect to a lease, a
State which receives a portion of royalties or other payments
under the mineral leasing laws from such lease;
‘‘(31) ‘underpayment’ means any payment or nonpayment
by a lessee that is less than the amount legally required to
be paid on an obligation; and
‘‘(32) ‘United States’ means the United States Government
and any department, agency, or instrumentality thereof, the
several States, the District of Columbia, and the territories
of the United States.’’.
SEC. 5362. MAXIMIZING RECEIPTS THROUGH STATE EFFORTS.
(a) GENERAL AUTHORITY.—Section 205(a) of the Federal Oil
and Gas Royalty Management Act of 1982 (30 U.S.C. 1735(a))
is amended to read as follows:
‘‘(a) In order to provide incentives to States to maximize the
amount of oil and gas receipts collected on lease obligations within
the six-year period of limitations, and consequently to maximize
the Federal share of such receipts to the United States Treasury,
upon written request of a State, the State, pursuant to an agree-
ment or agreements and consistent with subsection (c), may perform
H. R. 2491—116
all or part of the authorities, duties, responsibilities, and activities
of the Secretary under this Act which may be delegated to a State
under the Constitution of the United States for all Federal lands
within the State. The delegated State shall assume and perform
the authorities, duties, responsibilities, or activities delegated under
this section. To avoid duplication of effort, any authority, duty,
responsibility, or activity delegated to a State under this Act with
respect to all Federal lands within the State may not be carried
out by the Secretary. Under any such agreement, the Secretary
shall share oil or gas royalty management information.’’.
(b) DETERMINATION.—Section 205(b) of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1735(b)) is amend-
ed by striking ‘‘is authorized to’’ and inserting ‘‘shall’’.
(c) FEDERAL-STATE ROYALTY COLLECTION EFFORTS.—Subsection
(c) section 205 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1735) is amended by striking ‘‘which define’’
and all that follows and inserting ‘‘within 18 months after the
date of enactment of section 115, under which States may perform
the authorities, duties, responsibilities, and activities under this
title which are subject to delegation, based on the recommendations
of the States concerned following consultation with affected persons.
If the Secretary decides not to follow any recommendations sup-
ported by all States concerned, the Secretary shall justify such
decision within 30 days after making such decision. In carrying
out this section the Secretary shall provide for reasonable flexibility
to a State to perform any authority, duty, responsibility or activity
delegated hereunder in a more efficient and cost-effective manner
and provide the States concerned a direct role in determining such
requirements, procedures and policies. To ensure efficient and
timely collections of royalties pursuant to this Act, the delegated
States shall provide—
‘‘(1) for the effective and efficient performance of any
authority, duty, responsibility or activity delegated under this
Act;
‘‘(2) for the consistent and uniform performance among
the delegated States of any authority, duty, responsibility or
activity delegated under this Act;
‘‘(3) for valuation under the terms of the leases and
applicable Federal statutes; and
‘‘(4) for uniform reporting form and reporting requirements
for all Federal lessees, unless the State and all affected parties
otherwise agree.’’.
(d) PERFORMANCE.—Subsection (d) of section 205 of the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1735)
is amended by striking ‘‘, pertaining’’ and all that follows and
inserting the following: ‘‘for requirements pertaining to records
and accounts to be maintained and reporting procedures to be
required by delegated States under this section. The records and
accounts under such reporting procedures shall be sufficient to
allow the Secretary to monitor the performance of any delegated
State under this section. The applicable delegated State and the
Secretary shall agree to terms and conditions for inclusion into
an agreement to perform all or part of the authorities, duties,
responsibilities, and activities under this title consistent with sub-
section (c).’’.
H. R. 2491—117
(e) STATE ACTIONS.—Section 204 of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1734) is amended
by adding at the end the following:
‘‘(d) With respect to enforcement of an obligation under this
Act, a State bringing an action under this section shall enjoy
no greater rights than the Secretary enjoys under this Act.’’.
(f) SAVINGS PROVISION.—Nothing in the amendments made by
this section shall impair any agreement, or any extension thereof,
existing under section 205 as in effect on the day before the date
of enactment of this Act. Following enactment of this Act, any
State which is a party to an existing agreement under such section
under which the State has been delegated audit or inspection
responsibility, may issue orders to pay, subpoenas, or notices to
perform restructured accounting and may continue to perform
audits or inspections under terms and conditions consistent with
the Federal Oil and Gas Royalty Management Act of 1982 (30
U.S.C. 1701 et seq.), as amended by this chapter.
(g) RECEIPTS.—Section 205(f) of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1735(f)) is amended by adding
at the end the following: ‘‘Such costs shall be allocable for the
purposes of section 35(b) of the Act entitled ‘‘An Act to promote
the mining of coal, phosphate, oil, oil shale, gas, and sodium on
the public domain’’, approved February 25, 1920 (commonly known
as the ‘‘Mineral Leasing Act’’) (30 U.S.C. 191(b)) to the administra-
tion and enforcement of laws providing for the leasing of any
onshore lands or interests in land owned by the United States.
The Secretary shall compensate any State in the next succeeding
fiscal year for the aggregate amount of such costs incurred but
not compensated due to such allocation for the current fiscal year.
All money received from sales, bonuses, royalties, and interest,
including money claimed to be due and owing pursuant to a delega-
tion under this section, shall be payable and paid to the Treasury
of the United States.’’.
SEC. 5363. SECRETARIAL AND DELEGATED STATES’ ACTIONS AND
LIMITATION PERIODS.
(a) IN GENERAL.—The Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1701 et seq.) is amended by adding
after section 114 the following new section:
‘‘SEC. 115. SECRETARIAL AND DELEGATED STATES’ ACTIONS AND
LIMITATION PERIODS.
‘‘(a) IN GENERAL.—All duties, responsibilities, and activities
with respect to a lease shall be performed by the Secretary, dele-
gated States, and lessees in a timely manner.
‘‘(b) LIMITATION PERIOD.—
‘‘(1) 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. The Secretary, a delegated
State, or a lessee (A) shall not take any other or further
action regarding that obligation, including (but not limited to)
the issuance of any order, request, demand or other communica-
tion seeking any document, accounting, determination, calcula-
tion, recalculation, payment, principal, interest, assessment,
or penalty or the initiation, pursuit or completion of an audit
with respect to that obligation; and (B) shall not pursue any
other equitable or legal remedy, whether under statute or com-
H. R. 2491—118
mon law, with respect to an action on or an enforcement of
said obligation.
‘‘(2) The limitations set forth in sections 2401, 2415, 2416,
and 2462 of title 28, United States Code and section 42 of
the Mineral Leasing Act (30 U.S.C. 226–2) shall not apply
to any obligation to which this Act applies. Section 3716 of
title 31, United States Code, may be applied to an obligation
the enforcement of which is not barred by this Act, but may
not be applied to any obligation the enforcement of which
is barred by this Act.
‘‘(c) OBLIGATION BECOMES DUE.—
‘‘(1) IN GENERAL.—For purposes of this Act, an obligation
becomes due when the right to enforce the obligation is fixed.
‘‘(2) ROYALTY OBLIGATIONS.—The right to enforce any roy-
alty obligation for any given 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.
‘‘(d) TOLLING
OF LIMITATION PERIOD.—The running of the
limitation period under subsection (b) shall not be suspended, tolled,
extended, or enlarged for any obligation for any reason by any
action, including an action by the Secretary or a delegated State,
other than the following:
‘‘(1) TOLLING AGREEMENT.—A written agreement executed
during the limitation period between the Secretary or a dele-
gated State and a lessee which tolls the limitation period for
the amount of time during which the agreement is in effect.
‘‘(2) SUBPOENA.—
‘‘(A) The issuance of a subpoena to a lessee in accord-
ance with the provisions of subsection (B)(i) shall toll the
limitation period with respect to the obligation 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 (i) the lessee has produced such
subpoenaed records for the subject obligation, (ii) the Sec-
retary or a delegated State receives written notice that
the subpoenaed records for the subject obligation are not
in existence or are not in the lessee’s possession or control,
or (iii) a court has determined in a final decision that
such records are not required to be produced, whichever
occurs first.
‘‘(B)(i) A subpoena for the purposes of this section
which requires a lessee to produce records necessary to
determine the proper reporting and payment of an obliga-
tion due the Secretary may be issued only by an Assistant
Secretary of the Interior or an Acting Assistant Secretary
of the Interior who is a schedule C employee (as defined
by section 213.3301 of title 5, Code of Federal Regulations)
and may not be delegated to any other person. If a State
has been delegated authority pursuant to section 205, the
State, acting through the highest elected State official hav-
ing ultimate authority over the collection of royalties from
leases on Federal lands within the State, may issue such
subpoena, but may not delegate such authority to any
other person.
‘‘(ii) A subpoena described in clause (i) may only be
issued against a lessee during the limitation period pro-
vided in this section and only after the Secretary or a
H. R. 2491—119
delegated State has in writing requested the records from
the lessee related to the obligation which is the subject
of the subpoena and has determined that—
‘‘(I) the lessee has failed to respond within a
reasonable period of time to the Secretary’s or the
applicable delegated State’s written request for such
records necessary for an audit, investigation or other
inquiry made in accordance with the Secretary’s or
such delegated State’s responsibilities under this Act;
or
‘‘(II) the lessee has in writing denied the Sec-
retary’s or the applicable delegated State’s written
request to produce such records in the lessee’s posses-
sion or control necessary for an audit, investigation
or other inquiry made in accordance with the Sec-
retary’s or such delegated State’s responsibilities under
this Act; or
‘‘(III) the lessee has unreasonably delayed in
producing records necessary for an audit, investigation
or other inquiry made in accordance with the Sec-
retary’s or the applicable delegated State’s responsibil-
ities under this Act after the Secretary’s or such dele-
gated State’s written request.
‘‘(C) In seeking records, the Secretary or the applicable
delegated State shall afford the lessee a reasonable period
of time after a written request by the Secretary or such
delegated State in which to provide such records prior
to the issuance of any subpoena.
‘‘(3) MISREPRESENTATION
OR
CONCEALMENT.—The inten-
tional misrepresentation or concealment of a material fact for
the purpose of evading the payment of an obligation in which
case the limitation period shall be tolled for the period of
such misrepresentation or such concealment.
‘‘(4) ORDER TO PERFORM A RESTRUCTURED ACCOUNTING.—
(A) The issuance of a notice under subsection (D) that the
lessee has not adequately performed a restructured accounting
shall toll the limitation period with respect to the obligation
which is the subject of the notice only for the period beginning
on the date the lessee receives the notice and ending 120
days after the date on which (i) the Secretary or the applicable
delegated State receives written notice the accounting or other
requirement has been performed, or (ii) a court has determined
in a final decision that the lessee is not required to perform
the accounting, whichever occurs first.
‘‘(B)(i) The Secretary or the applicable delegated State may
issue an order to perform a restructured accounting to a lessee
when the Secretary or such delegated State determines during
an in-depth audit of a lessee that the lessee should recalculate
royalty due on an obligation based upon the Secretary’s or
the delegated State’s finding that the lessee has made identified
underpayments or overpayments which are demonstrated by
the Secretary or the delegated State to be based upon repeated,
systemic reporting errors for a significant number of leases
or a single lease for a significant number of reporting months
with the same type of error which constitutes a pattern of
violations and which are likely to result in either significant
underpayments or overpayments.
H. R. 2491—120
‘‘(ii) The power of the Secretary to issue an order to perform
a restructured accounting may not be delegated below the most
senior career professional position having responsibility for the
royalty management program, which position is currently des-
ignated as the ‘Associate Director for Royalty Management’,
and may not be delegated to any other person. If a State
has been delegated authority pursuant to section 205, the State,
acting through the highest ranking State official having ulti-
mate authority over the collection of royalties from leases on
Federal lands within the State, may issue such order to per-
form, which may not be delegated to any other person. An
order to perform a restructured accounting shall—
‘‘(I) be issued within a reasonable period of time from
when the audit identifies the systemic, reporting errors;
‘‘(II) specify the reasons and factual bases for such
order; and
‘‘(III) be specifically identified as an ‘order to perform
a restructured accounting’.
‘‘(C) An order to perform a restructured accounting shall
not mean or be construed to include any other communication
or action by or on behalf of the Secretary or a delegated State.
‘‘(D) If a lessee fails to adequately perform a restructured
accounting pursuant to this subsection, a notice shall be issued
to the lessee that the restructured accounting has not been
adequately performed. A lessee shall be given a reasonable
time within which to perform the restructured accounting. Such
notice may be issued under this section only by an Assistant
Secretary of the Interior or an acting Assistant Secretary of
the Interior who is a schedule C employee (as defined by
section 213.3301 of title 5, Code of Federal Regulations) and
may not be delegated to any other person. If a State has
been delegated authority pursuant to section 205, the State,
acting through the highest elected State official having ultimate
authority over the collection of royalties from leases on Federal
lands within the State, may issue such notice, which may
not be delegated to any other person.
‘‘(e) TERMINATION OF LIMITATIONS PERIOD.—An action or an
enforcement of an obligation by the Secretary or delegated State
or a lessee shall be barred under this section prior to the running
of the six-year period provided in subsection (b) in the event—
‘‘(1) the Secretary or a delegated State has notified the
lessee in writing that a time period is closed to further audit;
or
‘‘(2) the Secretary or a delegated State and a lessee have
so agreed in writing.
‘‘(f) RECORDS REQUIRED
FOR DETERMINING COLLECTIONS.—
Records required pursuant to section 103 by the Secretary or any
delegated State for the purpose of determining obligations due
and compliance with any applicable mineral leasing law, lease
provision, regulation or order with respect to oil and gas leases
from Federal lands or the Outer Continental Shelf shall be main-
tained for the same period of time during which a judicial proceed-
ing or demand may be commenced under subsection (b). If a judicial
proceeding or demand is timely commenced, the record holder shall
maintain such records until the final nonappealable decision in
such judicial proceeding is made, or with respect to that demand
is rendered, unless the Secretary or the applicable delegated State
H. R. 2491—121
authorizes in writing an earlier release of the requirement to main-
tain such records. Notwithstanding anything herein to the contrary,
under no circumstance shall a record holder be required to maintain
or produce any record relating to an obligation for any time period
which is barred by the applicable limitation in this section. Records
required for administrative actions and investigations (including,
but not limited to, accounting collection and audits) under this
Act involving obligations shall not be duplicated pursuant to section
3518(c)(1)(B) of title 44, United States Code.
‘‘(g) TIMELY COLLECTIONS.—In order to most effectively utilize
resources available to the Secretary to maximize the collection
of oil and gas receipts from lease obligations to the Treasury within
the six-year period of limitations, and consequently to maximize
the State share of such receipts, the Secretary shall not perform
or require accounting, reporting, or audit activities if the Secretary
and the State concerned determines that the cost of conducting
or requiring the activity exceeds the expected amount to be collected
by the activity, based on the most current 12 months of activity.
To the maximum extent possible, the Secretary and delegated States
shall reduce costs to the United States Treasury and the States
by discontinuing requirements for unnecessary or duplicative data
and other information, such as separate allowances and payor
information, relating to obligations due. If the Secretary and the
State concerned determine that collection will result sooner, the
Secretary or the applicable delegated State may waive or forego
interest in whole or in part.
‘‘(h) APPEALS AND FINAL AGENCY ACTION.—
‘‘(1) 30-MONTH PERIOD.—All orders issued by the Secretary
or a delegated State are subject to appeal to the Secretary.
No State shall impose any conditions which would hinder a
lessee’s immediate appeal of an order to the Secretary or the
Secretary’s designee. The Secretary shall issue a final decision
in any administrative proceeding, including any administrative
proceedings pending on the date of enactment of this section,
within 30 months from the date such proceeding was com-
menced or 30 months from the date of such enactment, which-
ever is later. The 30-month period may be extended by any
period of time agreed upon in writing by the Secretary and
the lessee.
‘‘(2) EFFECT OF FAILURE TO ISSUE DECISION.—If no such
decision has been issued by the Secretary within the 30-month
period referred to in paragraph (1)—
‘‘(A) the Secretary shall be deemed to have issued
and granted a decision in favor of the lessee or lessees
as to any nonmonetary obligation and any monetary obliga-
tion the principal amount of which is less than $2,500;
and
‘‘(B) the Secretary shall be deemed to have issued
a final decision in favor of the Secretary, which decision
shall be deemed to affirm those issues for which the agency
rendered a decision prior to the end of such period, as
to any monetary obligation the principal amount of which
is $2,500 or more, and the lessee shall have a right to
a de novo judicial review of such deemed final decision.
‘‘(i) COLLECTIONS
OF DISPUTED AMOUNTS DUE.—To expedite
collections relating to disputed obligations due within the six-year
period beginning on the date the obligation became due, the parties
H. R. 2491—122
shall hold not less than one settlement consultation and the Sec-
retary and the State concerned may take such action as is appro-
priate to compromise and settle a disputed obligation, including
waiving or reducing interest and allowing offsetting of obligations
among leases.
‘‘(j) ENFORCEMENT OF A CLAIM FOR JUDICIAL REVIEW.—In the
event a demand subject to this section is properly and timely
issued, the obligation which is the subject of the demand may
be enforced beyond the six-year limitations period without being
barred by this statute of limitations. In the event a demand subject
to this section is properly and timely commenced, a judicial proceed-
ing challenging the final agency action with respect to such demand
shall be deemed timely so long as such judicial proceeding is com-
menced within 180 days from receipt of notice by the lessee of
the final agency action.
‘‘(k) IMPLEMENTATION
OF FINAL DECISION.—In the event a
judicial proceeding or demand subject to this section is timely
commenced and thereafter the limitation period in this section
lapses during the pendency of such proceeding, any party to such
proceeding shall not be barred from taking such action as is required
or necessary to implement a final unappealable judicial or adminis-
trative decision, including any action required or necessary to imple-
ment such decision by the recovery or recoupment of an
underpayment or overpayment by means of refund or credit.
‘‘(l) STAY
OF PAYMENT OBLIGATION PENDING REVIEW.—Any
party ordered by the Secretary or a delegated State to pay any
obligation (other than an assessment) shall be entitled to a stay
of such payment without bond or other surety instrument pending
an administrative or judicial proceeding if the party periodically
demonstrates to the satisfaction of the Secretary that such party
is financially solvent or otherwise able to pay the obligation. In
the event the party is not able to so demonstrate, the Secretary
may require a bond or other surety instrument satisfactory to
cover the obligation. Any party ordered by the Secretary or a
delegated State to pay an assessment shall be entitled to a stay
without bond or other surety instrument.’’.
(b) CLERICAL AMENDMENT.—The table of contents in section
1 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1701) is amended by inserting after the item relating
to section 114 the following new item:
‘‘Sec. 115. Limitation periods and agency actions.’’.
SEC. 5364. ADJUSTMENT AND REFUNDS.
(a) IN GENERAL.—The Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1701 et seq.) is amended by inserting
after section 111 the following:
‘‘SEC. 111A. ADJUSTMENTS AND REFUNDS.
‘‘(a) ADJUSTMENTS TO ROYALTIES PAID TO THE SECRETARY OR
A DELEGATED STATE.—
‘‘(1) If, during the adjustment period, a lessee determines
that an adjustment or refund request is necessary to correct
an underpayment or overpayment of an obligation, the lessee
shall make such adjustment or request a refund within a
reasonable period of time and only during the adjustment
period. The filing of a royalty report which reflects the
underpayment or overpayment of an obligation shall constitute
H. R. 2491—123
prior written notice to the Secretary or the applicable delegated
State of an adjustment.
‘‘(2)(A) For any adjustment, the lessee shall calculate and
report the interest due attributable to such adjustment at the
same time the lessee adjusts the principal amount of the subject
obligation, except as provided by subparagraph (B).
‘‘(B) In the case of a lessee who determines that subpara-
graph (A) would impose a hardship, the Secretary or such
delegated State shall calculate the interest due and notify the
lessee within a reasonable time of the amount of interest due,
unless such lessee elects to calculate and report interest in
accordance with subparagraph (A).
‘‘(3) An adjustment or a request for a refund for an obliga-
tion may be made after the adjustment period only upon written
notice to and approval by the Secretary or the applicable dele-
gated State, as appropriate, during an audit of the period
which includes the production month for which the adjustment
is being made. If an overpayment is identified during an audit,
then the Secretary or the applicable delegated State, as appro-
priate, shall allow a credit or refund in the amount of the
overpayment.
‘‘(4) For purposes of this section, the adjustment period
for any obligation shall be the five-year period following the
date on which an obligation became due. The adjustment period
shall be suspended, tolled, extended, enlarged, or terminated
by the same actions as the limitation period in section 115.
‘‘(b) REFUNDS.—
‘‘(1) IN GENERAL.—A request for refund is sufficient if it—
‘‘(A) is made in writing to the Secretary and, for pur-
poses of section 115, is specifically identified as a demand;
‘‘(B) identifies the person entitled to such refund;
‘‘(C) provides the Secretary information that reasonably
enables the Secretary to identify the overpayment for which
such refund is sought; and
‘‘(D) provides the reasons why the payment was an
overpayment.
‘‘(2) NOTICE.—The Secretary shall promptly notify each
State concerned of a request for refund.
‘‘(3) PAYMENT BY SECRETARY OF THE TREASURY.—The Sec-
retary shall certify the amount of the refund to be paid under
paragraph (1) to the Secretary of the Treasury who shall make
such refund. Such refund shall be paid from amounts received
as current receipts from sales, bonuses, royalties (including
interest charges collected under this section) and rentals of
the public lands and the Outer Continental Shelf under the
provisions of the Mineral Leasing Act and the Outer Continen-
tal Shelf Lands Act, which are not payable to a State or
the Reclamation Fund. The portion of any such refund attrib-
utable to any amounts previously disbursed to a State, the
Reclamation Fund, or any recipient prescribed by law shall
be deducted from the next disbursements to that recipient
made under the applicable law. Such amounts deducted from
subsequent disbursements shall be credited to miscellaneous
receipts in the Treasury.
‘‘(4) PAYMENT
PERIOD.—A refund under this subsection
shall be paid or denied (with an explanation of the reasons
for the denial) within 120 days of the date on which the request
H. R. 2491—124
for refund is received by the Secretary. Such refund shall
be subject to later audit by the Secretary or the applicable
delegated State and subject to the provisions of this Act.
‘‘(5) PROHIBITION AGAINST REDUCTION OF REFUNDS OR CRED-
ITS.—In no event shall the Secretary or any delegated State
directly or indirectly claim or offset any amount or amounts
against, or reduce any refund or credit (or interest accrued
thereon) by the amount of any obligation the enforcement of
which is barred by section 115.’’.
(b) CLERICAL AMENDMENT.—The table of contents in section
1 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1701) is amended by inserting after the item relating
to section 111 the following new item:
‘‘Sec. 111A. Adjustments and refunds.’’.
SEC. 5365. ROYALTY TERMS AND CONDITIONS, INTEREST, AND PEN-
ALTIES.
(a) LESSEE INTEREST.—Section 111 of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1721) is amended
by adding after subsection (g) the following:
‘‘(h) Interest shall be allowed and paid or credited on any
overpayment, with such interest to accrue from the date such over-
payment was made, at the rate obtained by applying the provisions
of subparagraphs (A) and (B) of section 6621(a)(1) of the Internal
Revenue Code of 1986, but determined without regard to the matter
following subparagraph (B) of section 6621(a)(1). Interest which
has accrued on any overpayment may be applied to reduce an
underpayment. This subsection applies to overpayments made later
than six months after the date of enactment of this subsection
or September 1, 1996, whichever is later. Such interest shall be
paid from amounts received as current receipts from sales, bonuses,
royalties (including interest charges collected under this section)
and rentals of the public lands and the Outer Continental Shelf
under the provisions of the Mineral Leasing Act, and the Outer
Continental Shelf Lands Act, which are not payable to a State
or the Reclamation Fund. The portion of any such interest payment
attributable to any amounts previously disbursed to a State, the
Reclamation Fund, or any other recipient designated by law shall
be deducted from the next disbursements to that recipient made
under the applicable law. Such amounts deducted from subsequent
disbursements shall be credited to miscellaneous receipts in the
Treasury.’’.
(b) LIMITATION ON INTEREST.—Section 111 of the Federal Oil
and Gas Royalty Management Act of 1982, as amended by sub-
section (a), is further amended by adding at the end the following:
‘‘(i) Upon a determination by the Secretary that an excessive
overpayment (based upon all obligations of a lessee for a given
reporting month) was made for the sole purpose of receiving
interest, interest shall not be paid on the excessive amount of
such overpayment. For purposes of this Act, an ‘excessive overpay-
ment’ shall be the amount that any overpayment a lessee pays
for a given reporting month (excluding payments for demands for
obligations determined to be due as a result of judicial or adminis-
trative proceedings or agreed to be paid pursuant to settlement
agreements) for the aggregate of all of its Federal leases exceeds
10 percent of the total royalties paid that month for those leases.’’.
H. R. 2491—125
(c) ESTIMATED PAYMENT.—Section 111 of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1721), as amended
by subsections (a) and (b), is further amended by adding at the
end the following:
‘‘(j) A lessee may make a payment for the approximate amount
of royalties (hereinafter in this subsection ‘estimated payment’)
that would otherwise be due for such lease to avoid underpayment
or nonpayment interest charges. When an estimated payment is
made, actual royalties are due and payable at the end of the
month following the month in which the estimated payment is
made. If the lessee makes a payment for such actual royalties,
the lessee may apply the estimated payment to future royalties.
Any estimated payment may be adjusted, recouped, or reinstated
at any time by the lessee.’’.
(d) VOLUME ALLOCATION OF OIL AND GAS PRODUCTION.—Section
111 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1721), as amended by subsections (a) through (c), is
amended by adding at the end the following:
‘‘(k)(1) Except as otherwise provided by this subsection—
‘‘(A) a lessee of a lease in a unit or communitization agree-
ment which contains only Federal leases with the same royalty
rate and funds distribution shall report and pay royalties on
oil and gas production for each production month based on
the actual volume of production sold by or on behalf of that
lessee;
‘‘(B) a lessee of a lease in any other unit or communitization
agreement shall report and pay royalties on oil and gas produc-
tion for each production month based on the volume of oil
and gas produced from such agreement and allocated to the
lease in accordance with the terms of the agreement; and
‘‘(C) a lessee of a lease that is not contained in a unit
or communitization agreement shall report and pay royalties
on oil and gas production for each production month based
on the actual volume of production sold by or on behalf of
that lessee.
‘‘(2) This subsection applies only to requirements for reporting
and paying royalties. Nothing in this subsection is intended to
alter a lessee’s liability for royalties on oil or gas production based
on the share of production allocated to the lease in accordance
with the terms of the lease, a unit or communitization agreement,
or any other agreement.
‘‘(3) For any unit or communitization agreement, if all lessees
contractually agree to an alternative method of royalty reporting
and payment, the lessees may submit such alternative method
to the Secretary or the delegated State for approval and make
payments in accordance with such approved alternative method
so long as such alternative method does not reduce the amount
of the royalty obligation.
‘‘(4) The Secretary or the delegated State shall grant an excep-
tion from the reporting and payment requirements for marginal
properties by allowing for any calendar year or portion thereof
royalties to be paid each month based on the volume of production
sold. Interest shall not accrue on the difference for the entire
calendar year or portion thereof between the amount of oil and
gas actually sold and the share of production allocated to the
lease until the beginning of the month following such calendar
year or portion thereof. Any additional royalties due or overpaid
H. R. 2491—126
royalties and associated interest shall be paid, refunded, or credited
within six months after the end of each calendar year in which
royalties are paid based on volumes of production sold. For the
purpose of this subsection, the term ‘marginal property’ means
a lease that produces on average the combined equivalent of less
than 15 barrels of oil per day or 90 thousand cubic feet of gas
per day, or a combination thereof, determined by dividing the
average daily production of crude oil and natural gas from producing
wells on such lease by the number of such wells, unless the Sec-
retary, together with the State concerned, determines that a dif-
ferent production is more appropriate.
‘‘(5) Not later than two years after the date of the enactment
of this subsection, the Secretary shall issue any appropriate demand
for all outstanding royalty payment disputes regarding who is
required to report and pay royalties on production from units and
communitization agreements outstanding on the date of the enact-
ment of this subsection, and collect royalty amounts owed on such
production.’’.
(e) PRODUCTION ALLOCATION.—Section 111 of the Federal Oil
and Gas Royalty Management Act of 1982 (30 U.S.C. 1721), as
amended by subsections (a) through (d), is amended by adding
at the end the following:
‘‘(l) The Secretary or the delegated State shall issue all deter-
minations of allocations of production for units and communitization
agreements within 120 days of a request for determination. If
the Secretary or the delegated State fails to issue a determination
within such 120-day period, the Secretary shall waive interest due
on obligations subject to the determination until the end of the
month following the month in which the determination is made.’’.
(f) NEW ASSESSMENT TO ENCOURAGE PROPER ROYALTY PAY-
MENTS.—
(1) IN GENERAL.—The Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1721), as amended by this section,
is further amended by adding at the end the following:
‘‘SEC. 116. ASSESSMENTS.
‘‘Beginning eighteen months after the date of enactment of
this section, to encourage proper royalty payment the Secretary
or the delegated State shall impose assessments on lessees who
chronically submit erroneous reports under this Act. Assessments
under this Act may only be issued as provided for in this section.’’.
(2) CLERICAL AMENDMENT.—The table of contents in section
1 of such Act (30 U.S.C. 1701) is amended by adding after
the item relating to section 115 the following new item:
‘‘Sec. 116. Assessments.’’.
(g) LIABILITY FOR ROYALTY PAYMENTS.—Section 102(a) of the
Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C.
1712(a)) is amended to read as follows:
‘‘(a) In order to increase receipts and achieve effective collections
of royalty and other payments, a lessee who is required to make
any royalty or other payment under a lease or under the mineral
leasing laws, shall make such payments in the time and manner
as may be specified by the Secretary or the applicable delegated
State. A lessee may designate a person to make all or part of
the payments due under a lease on the lessee’s behalf and shall
notify the Secretary or the applicable delegated State in writing
of such designation, in which event said designated person may,
H. R. 2491—127
in its own name, pay, offset or credit monies, make adjustments,
request and receive refunds and submit reports with respect to
payments required by the lessee. The person owning operating
rights in a lease shall be primarily liable for its pro rata share
of payment obligations under the lease. If the person owning the
legal record title in a lease is other than the operating rights
owner, the person owning the legal record title shall be secondarily
liable for its pro rata share of such payment obligations under
the lease.’’.
(h) CLERICAL AMENDMENT.—The heading of section 111 of the
Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C.
1721) is amended to read as follows:
‘‘ROYALTY TERMS AND CONDITIONS, INTEREST, AND PENALTIES’’.
SEC. 5366. ALTERNATIVES FOR MARGINAL PROPERTIES.
(a) IN GENERAL.—The Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1701 et seq.), as amended by section
5365 of this chapter, is further amended by adding at the end
the following:
‘‘SEC. 117. ALTERNATIVES FOR MARGINAL PROPERTIES.
‘‘(a) DETERMINATION OF BEST INTERESTS OF STATE CONCERNED
AND THE UNITED STATES.—The Secretary and the State concerned,
acting in the best interests of the United States and the State
concerned to promote production, reduce administrative costs, and
increase net receipts to the United States and the States, shall
jointly determine, on a case by case basis, the amount of what
marginal production from a lease or leases or well or wells, or
parts thereof, shall be subject to a prepayment under subsection
(b) or regulatory relief under subsection (c). If the State concerned
does not consent, such prepayments or regulatory relief shall not
be made available under this section for such marginal production,
provided that if royalty payments from a lease or leases, or well
or wells is not shared with any State, such determination shall
be made solely by the Secretary.
‘‘(b) PREPAYMENT OF ROYALTY.—
‘‘(1) IN GENERAL.—Notwithstanding the provisions of any
lease to the contrary, for any lease or leases or well or wells
identified by the Secretary and the State concerned pursuant
to subsection (a), the Secretary is authorized to accept a prepay-
ment for royalties in lieu of monthly royalty payments under
the lease for the remainder of the lease term if the affected
lessee so agrees. Any prepayment agreed to by the Secretary,
State concerned and lessee which is less than an average $500
per month in total royalties shall be effectuated under this
section not earlier than two years after the date of enactment
of this section and, any prepayment which is greater than
an average $500 per month in total royalties shall be effec-
tuated under this section not earlier than three years after
the date of enactment of this section. The Secretary and the
State concerned may condition their acceptance of the prepay-
ment authorized under this section on the lessee’s agreeing
to such terms and conditions as the Secretary and the State
concerned deem appropriate and consistent with the purposes
of this Act. Such terms may—
H. R. 2491—128
‘‘(A) provide for prepayment that does not result in
a loss of revenue to the United States in present value
terms;
‘‘(B) include provisions for receiving additional prepay-
ments or royalties for developments in the lease or leases
or well or wells that deviate significantly from the assump-
tions and facts on which the valuation is determined; and
‘‘(C) require the lessee to provide such periodic produc-
tion reports as may be necessary to allow the Secretary
and the State concerned to monitor production for the
purposes of subparagraph (B).
‘‘(2) STATE SHARE.—A prepayment under this section shall
be shared by the Secretary with any State or other recipient
to the same extent as any royalty payment for such lease.
‘‘(3) SATISFACTION OF OBLIGATION.—Except as may be pro-
vided in the terms and conditions established by the Secretary
under subsection (b), a lessee who makes a prepayment under
this section shall have satisfied in full its obligation to pay
royalty on the production stream sold from the lease or leases
or well or wells.
‘‘(c) ALTERNATIVE ACCOUNTING AND AUDITING REQUIREMENTS.—
Within one year after the date of the enactment of this section,
the Secretary or the delegated State shall provide accounting,
reporting, and auditing relief that will encourage lessees to continue
to produce and develop properties subject to subsection (a); provided,
that such relief will only be available to lessees in a State that
concurs, which concurrence is not required if royalty from the
lease or leases or well or wells is not shared with any State.
Prior to granting such relief, the Secretary and, if appropriate,
the State concerned shall agree that the type of marginal wells
and relief provided under this paragraph is in the best interest
of the United States and, if appropriate, the State concerned.’’.
(b) CLERICAL AMENDMENT.—The table of contents in section
1 of such Act (30 U.S.C. 1701) is amended by adding after the
item relating to section 115 the following new item:
‘‘Sec. 117. Alternatives for marginal properties.’’.
SEC. 5367. REPEALS.
(a) FOGRMA.—As applicable to Federal lands, sections 202
and 307 of the Federal Oil and Gas Royalty Management Act
of 1982 (30 U.S.C. 1732 and 1755), are repealed. Such repeal
shall not affect cooperative agreements involving Indian tribes or
Indian lands. Section 1 of such Act (relating to the table of contents)
is amended by striking out the items relating to sections 202
and 307.
(b) OCSLA.—Effective on the date of the enactment of this
Act, section 10 of the Outer Continental Shelf Lands Act (43 U.S.C.
1339) is repealed.
SEC. 5368. INDIAN LANDS.
The amendments and repeals made by this chapter shall not
apply with respect to Indian lands, and the provisions of the Federal
Oil and Gas Royalty Management Act of 1982 as in effect on
the day before the date of enactment of this Act shall continue
to apply after such date with respect to Indian lands.
SEC. 5369. PRIVATE LANDS.
This chapter shall not apply to any privately owned minerals.
H. R. 2491—129
SEC. 5369A. EFFECTIVE DATE.
Except as provided by section 115(f), section 111(h), section
111(k)(5), and section 117 of the Federal Oil and Gas Royalty
Management Act of 1982 (as added by this chapter), this chapter,
and the amendments made by this chapter, shall apply with respect
to the production of oil and gas after the first day of the month
following the date of the enactment of this Act.
CHAPTER 5—MINING
SEC. 5371. SHORT TITLE.
This chapter may be cited as ‘‘The Mining Law Revenue Act
of 1995’’.
SEC. 5372. DEFINITIONS.
When used in this chapter—
(1) ‘‘Assessment year’’ means the annual period commenc-
ing at 12 o’clock noon on the 1st day of September and ending
at 12 o’clock noon on the 1st day of September of the following
year.
(2) ‘‘Federal lands’’ means lands and interests in lands
owned by the United States that are open to mineral location,
or that were open to mineral location when a mining claim
or site was located and which have not been patented under
the general mining laws.
(3) ‘‘General mining laws’’ means those Acts which gen-
erally comprise chapters 2, 11, 12, 12A, 15, and 16, and sections
161 and 162, of Title 30 of the United States Code, all Acts
heretofore enacted which are amendatory of or supplementary
to any of the foregoing Acts, and the judicial and administrative
decisions interpreting such Acts.
(4) ‘‘Locatable minerals’’ means those minerals owned by
the United States and subject to location and disposition under
the general mining laws on or after the effective date of this
chapter, but not including any mineral held in trust by the
United States for any Indian or Indian tribe, as defined in
section 2 of the Indian Mineral Development Act of 1982 (25
U.S.C. 2101), or any mineral owned by any Indian or Indian
tribe, as defined in that section, that is subject to a restriction
against alienation imposed by the United States, or any mineral
owned by any incorporated Native group, village corporation,
or regional corporation and acquired by the group or corporation
under the provisions of the Alaska Native Claims Settlement
Act (43 U.S.C. 1601 et seq.).
(5) ‘‘Mineral activities’’ means any activity related to, or
incidental to, exploration for or development, mining, produc-
tion, beneficiation, or processing of any locatable mineral or
mineral that would be locatable if it were subject to disposition
under the general mining laws, or reclamation of the impacts
of such activities.
(6) ‘‘Mining claim or site’’, except where provided otherwise,
means a lode mining claim, placer mining claim, mill site
or tunnel site.
(7) ‘‘Operator’’ means any person conducting mineral activi-
ties subject to this chapter.
(8) ‘‘Person’’ means an individual, Indian tribe, partnership,
association, society, joint venture, joint stock company, firm,
H. R. 2491—130
company, limited liability company, corporation, cooperative or
other organization, and any instrumentality of State or local
government, including any publicly owned utility or publicly
owned corporation of State or local government.
(9) ‘‘Secretary’’ means the Secretary of the Interior.
SEC. 5373. RENTAL PAYMENT REQUIREMENTS.
(a) RENTAL PAYMENTS.—(1) 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 Secretary prior
to September 1 of each year, until a patent has been issued therefor,
an annual rental payment for each unpatented mining claim or
site.
(2) LOCATION PAYMENT.—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 location is filed with
the Bureau of Land Management pursuant to section 314(b) of
the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1744(b)), a $25.00 location payment, in lieu of the annual rental
payment of $100 per mining claim or site for the assessment year
which includes the date of location of such mining claim or site.
(3) EXEMPTION AND WAIVER.—(A) The owner of any mining
claim or site who demonstrates to the Secretary on or before the
first day of any assessment year that access to such mining claim
or site was denied during the prior assessment year by the action
or inaction of any State or Federal governmental officer, agency,
or court, or by any Indian tribal authority, shall be exempt from
the annual rental payment requirements of paragraph (1) for the
assessment year following the filing of the certification.
(B) The rental payment provided for in subsection 5373(a)
shall be waived for the owner of a mining claim or site who certifies
in writing to the Secretary, on or before the date the payment
is due, that, as of the date such payment is due, such owner
and all related persons own not more than ten unpatented mining
claims or sites. Any owner of a mining claim or site that is not
required to pay a rental payment under this subsection shall con-
tinue to be subject to the assessment work requirements of the
general mining laws or of any other State or Federal law, subject
to any suspension or deferment of annual assessment work provided
by law, for the assessment year following the filing of the certifi-
cation required by this subsection.
(4) AMOUNT OF ANNUAL RENTAL PAYMENT.—For each assess-
ment year the annual rental payment payable 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 Payment Per Site or Claim:
1996–1998 ...........................................
$100 per year
1999 and thereafter ...........................
$200 per year
(5) EFFECT OF FORFEITURE.—No owner or co-owner of a mining
claim or site which has been forfeited because the rental payment
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
H. R. 2491—131
of lands located within the forfeited claim for a period of 12 months
after the date of forfeiture.
(b) ANNUAL LABOR.—(1) Beginning in 1999, amounts expended
on activities that qualify as annual labor under the general mining
laws may be credited on a dollar for dollar basis towards up to
50 percent of the annual rental payment payable under this section
for the following assessment year. During the assessment year
in 1999, annual labor performed in 1998 may be credited toward
the annual rental payment due in 1999.
(2) In order to receive credit under this subsection for annual
labor work, the description and value of the work must be included
in the statement required in subsection (e) and the statement
must be timely filed.
(3) Annual labor performed on an individual mining claim
or site within a group of contiguous claims may be credited towards
the aggregate amount of rental payments due on all of the contig-
uous claims within that group.
(c) WORK QUALIFYING AS ANNUAL LABOR.—(1) Only work which
directly benefits or develops a mining claim or facilitates the extrac-
tion of ore qualifies as annual labor or other activities as determined
by the Secretary. Acceptable labor and improvements include, but
are not limited to, any of the following:
(A) Drilling or excavating, including ore extraction.
(B) Mining costs directly associated with the production
of ore.
(C) Prospecting work which benefits the claim or a contig-
uous claim.
(D) Development work toward an actual mine, such as
shafts, tunnels, crosscuts and drifts, settling ponds and dams.
(E) Activities covered under section 1 of the Act of Septem-
ber 2, 1958 (30 U.S.C. 281), as amended.
(F) Reclamation conducted pursuant to State or Federal
surface management laws or regulations.
(2) The following activities do not qualify as annual labor:
(A) Work involved in maintaining the location such as
brushing and marking boundaries or replacing corner posts
and location notices.
(B) Transportation of workers to or from the location.
(C) Prospecting or exploration work not conducted within
the location or a contiguous location.
(d) AMENDMENTS OF PUBLIC LAW 85–876.—The Act of Septem-
ber 2, 1958 (Public Law 85-876; 30 U.S.C. 281), is amended as
follows:
(1) Section 1 is amended by inserting ‘‘mineral activities,
environmental baseline monitoring, and’’ after ‘‘without being
limited to’’ and before ‘‘geological, 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 ‘‘environmental
baseline monitoring or’’ after ‘‘experience to conduct’’ and before
‘‘geological, geochemical or geophysical surveys’’.
(3) Section 2 is amended by adding the following new
subsection at the end thereof:
‘‘(e) The term ‘environmental baseline monitoring’ means activi-
ties for collecting, reviewing and analyzing information concerning
soil, vegetation, wildlife, mineral, air, water, cultural, historical,
archaeological or other resources related to planning for or comply-
H. R. 2491—132
ing with Federal and State environmental or permitting require-
ments applicable to potential or proposed mineral activities on
the claim(s).’’.
(e) RENTAL PAYMENT STATEMENT.—Each payment under sub-
section (a) of this section shall be accompanied by a statement
which reasonably identifies the mining claim or site for which
the rental payment 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 STATEMENT.—When the value of annual
labor is credited towards part or all of the rental payment, subject
to the 50-percent limit set forth in subsection (b)(1), the following
shall apply:
(1) The rental payment statement required in subsection
(e) must also state the dates of performance of the labor,
describe the character and total value of the improvements
made or the labor performed, and the amount of labor used
as a credit toward the rental payment for the current year.
(2) The annual labor statements must include a summary
of the quantity, value and location of work done. This includes
a listing of the physical work done, to include drilling, trench-
ing, sampling and underground excavation, and the location
of any environmental, geologic, geochemical, and geophysical
surveys. The claim holder shall maintain sufficient records
which document the value of the work claimed.
(3) All supporting material filed pursuant to paragraph
(2) shall remain confidential in accordance 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.
(4) To the extent that labor credited against the rental
payment payable under this section is determined by a final
action not to qualify as labor under the general mining laws,
the claimant shall pay the insufficiency by making payment
to the Secretary of an amount equal to the amount of the
rental payment against which the insufficient labor was cred-
ited. If such payment is made within 30 days of the claimant’s
receipt of a notice of a final decision making such determination,
the claim concerned shall not be forfeited or null or void,
and the rental payment applicable to such claim shall be
deemed timely paid.
(g) CREDIT AGAINST ROYALTY.—The annual claim rental pay-
ment payable in advance of the assessment year for any unpatented
mining claim or site, or the aggregate rental payments from a
group of contiguous claims or sites, shall be credited against the
amount of royalty obligation accruing for that year for such claims
or sites under section 5375.
(h) FAILURE TO COMPLY.—The failure of the owner to pay
any claim rental payment for a mining claim or site by the date
such payment is due under this section shall constitute forfeiture
of the mining claim or site and such mining claim or site shall
be null and void, effective as of the day after the date such payment
is due: Provided, That if such rental payment is paid on or before
H. R. 2491—133
the 30th day after such payment was due under this section, such
mining claim or site shall not be forfeited or null or void.
(i) AMENDMENT
OF FLPMA FILING REQUIREMENTS.—Section
314(a) of the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1744(a)) is hereby repealed.
(j) RELATED PERSONS.—As used in this section, the term
‘‘related persons’’ includes—
(1) the spouse and dependent children (as defined 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.
(k) REPEAL.—Sections 10101 through 10106 of the Omnibus
Budget Reconciliation Act of 1993 (107 Stat. 406; 30 U.S.C. 28g)
are repealed.
SEC. 5374. PATENTS.
(a) IN GENERAL.—Except as provided in subsection (c), any
patent issued by the United States under the general mining laws
after the date of enactment of this chapter shall be issued only—
(1) upon payment by the owner of the claim 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 the land for mineral activities; and
(2) subject to reservation by the United States of the royalty
provided in section 5375.
(b) RIGHT OF RE-ENTRY.—
(1) Except as provided in subsection 5374(c), and notwith-
standing any other provision of law, the United States shall
retain a right of re-entry in lands patented under section 5374.
(2) Such right of re-entry of the United States shall ripen
if—
(A) the land is used by the patentee, or any subsequent
owners, for any purpose other than conducting mineral
activities in good faith;
(B) such use is not discontinued within a time period
specified by the Secretary (but not earlier than 90 days
after the Secretary provides the owner of the land with
written notice pursuant to paragraph (2) to discontinue
such use); and
(C) the Secretary elects to assert the right of re-entry
in accordance with paragraph (3).
(3) The ripened right of re-entry retained by the United
States pursuant to subparagraph (2) shall vest and all right,
title and interest in such patented estate shall revert to the
United States only if—
(A) the Secretary files a declaration of re-entry within
6 months of the requisite occurrences under paragraph
(2) with the Office of the Bureau of Land Management
in the State where the land subject to such right of re-
entry is situated; and
(B) the Secretary records such declaration in the office
of the county recorder of the county in which the lands
subject to a reversion are situated within 30 days of filing
under subparagraph (A).
(4) One year after the patent holder provides written notice
to the Secretary that all mineral activities are completed and
H. R. 2491—134
applicable reclamation is completed, the right of re-entry held
by the United States and created under the subsection (b)
shall expire unless within such period the Secretary notifies
the patent holder in writing that he is exercising the right
of re-entry held by the United States. At such time, ownership
of the patented lands shall automatically revert to the United
States, notwithstanding subparagraphs (A), (B) and (C) of sub-
section (b)(2). The Secretary may decline to exercise the right
of re-entry and such rights shall continue if—
(A) solid waste or hazardous substances released on
or from the patented estate may pose a threat to public
safety or the environment; or
(B) acceptance of title would expose the United States
to liability for past mineral activities on the patented
estate.
(c) PROTECTION OF VALID EXISTING RIGHTS.—Notwithstanding
any other provision of law, the requirements of this chapter (except
with respect to rental payments in accordance with section 5373)—
(1) shall not apply to the mining claims and sites contained
within those mineral patent applications pending at the Depart-
ment as of September 30, 1995, which shall be processed under
the general mining laws in effect immediately prior to the
date of enactment of this chapter; and
(2) likewise shall not apply to the mining claims or sites
for which there is on the date of enactment of this chapter
a vested possessory property right against the Government
under the general mining laws in effect immediately prior
to the date of enactment of this chapter.
SEC. 5375. ROYALTY.
(a) IN GENERAL.—The production and sale of locatable minerals
(including associated minerals) from any unpatented mining claim
(other than those from Federal lands to which subsection 5374(c)
applies) or any mining claim patented under subsection 5374(a)
shall be subject to a royalty of 5.0 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 with annual net proceeds from mineral produc-
tion subject to subsection (a) of less than $50,000.
(2) The obligation to pay royalties hereunder shall accrue
upon the sale of locatable minerals or mineral products pro-
duced from a mining claim subject to such royalty, and not
upon the stockpiling of the same for future processing.
(3) Where mining operations subject to this section are
conducted in two or more places by the same person, the
operations shall be considered a single operation the aggregate
net proceeds from which shall be subject to the $50,000 limita-
tion set forth in this subsection.
(4) 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.
(c) DEFINITIONS.—For the purposes of this chapter:
H. R. 2491—135
(1) The term ‘‘net proceeds’’ shall mean gross yield, less
the sum of the following deductions for costs incurred 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 min-
eral from the claim to the place or places of reduction,
beneficiation, refining, and sale.
(C) The actual cost of reduction, beneficiation, refining,
and sale of the locatable mineral.
(D) The actual cost of marketing and delivering the
locatable mineral and the conversion of the locatable min-
eral into money.
(E) The actual cost of maintenance and repairs of—
(i) all machinery, equipment, apparatus, and facili-
ties used in the mine;
(ii) all crushing, milling, leaching, refining, smelt-
ing, and reduction works, plants, and facilities; and
(iii) all facilities and equipment for transportation.
(F) The actual cost for support personnel and support
services at the mine site, including without limitation,
accounting, assaying, drafting and mapping, computer serv-
ices, surveying, housing, camp, and office expenses, safety,
and security.
(G) The actual cost of engineering, sampling, and
assaying pertaining to development and production.
(H) The actual cost of permitting, reclamation, environ-
mental compliance and monitoring.
(I) The actual cost of fire and other insurance on the
machinery, equipment, apparatus, works, plants, and facili-
ties mentioned in subparagraph (E).
(J) Depreciation of the original capitalized cost of the
machinery, equipment, apparatus, works, plants, and facili-
ties listed in subparagraph (E). The annual depreciation
charge shall consist of amortization of the original cost
in the manner consistent with the Internal Revenue Code
of 1986, as amended from time to time. The probable life
of the property represented 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 compensation law, all money paid
as contributions under the Federal Social Security Act,
and all money paid to State government in real property
taxes and severance or other taxes measured or levied
on production, or Federal excise tax payments and pay-
ments as fees or charges for use of the Federal lands
from which the locatable minerals are produced.
(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 following mean-
ing:
H. R. 2491—136
(A) In the case of sales of gold and silver ore, con-
centrates 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 subpara-
graph (A) (including cathode, anode or copper rod or wire,
or other products fabricated from the locatable minerals),
the term ‘‘gross yield’’ means the gross income from mining
derived from the first commercially marketable product
determined in the same manner as under section 613 of
the Internal Revenue Code of 1986.
(C) If ore, concentrates, beneficiated or fabricated prod-
ucts, or locatable minerals are used or consumed and are
not sold in an arms length transaction, the term ‘‘gross
yield’’ 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 selling 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 minerals 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 speculative activity or arrangement shall not
be included in gross yield.
(d) LIMITATIONS AND ALLOCATIONS OF NET PROCEEDS, GROSS
YIELD, AND ALLOWABLE DEDUCTIONS.—
(1) The deductions listed in subsection (c)(1) are intended
to allow 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 minerals 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 accepted industry
standards; and
H. R. 2491—137
(B) gross yield, allowable costs and net proceeds for
royalty purposes shall be allocated in proportion to mineral
products recovered from the mining 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 minerals from such claim and receiving the net proceeds
of such sale. No person who makes any royalty payment attributable
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 adjustment 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 accom-
panied by a statement containing each of the following:
(A) The name and Bureau of Land Management 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 fab-
ricated products produced and sold from such mining claim
or claims for such period.
(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 pro-
ceeds from the production and sale of such ores, con-
centrates, solutions or beneficiated products for such period,
including an itemization of the applicable 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 royalties 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 REQUIREMENTS.—
H. R. 2491—138
(1) An owner, operator, or other person directly involved
in the conduct of mineral activities, transportation, purchase,
or sale of locatable minerals, concentrates, 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 implementing this section or determining compliance with
regulations or orders under this section. Upon the request
of the Secretary when conducting an audit or investigation
pursuant to subsection (i), the appropriate records, reports,
or information required by this subsection shall be made avail-
able for inspection and duplication by the Secretary.
(2) Records required by the Secretary under this section
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 specifically 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 period applicable to such audit or investigation
under subsection (i) expires.
(h) INTEREST ASSESSMENTS.—
(1) If royalty payments under this section are not received
by the Secretary on the date that such payments are due,
or if such payments 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 Current
Value of Funds Rate.’’ In the case of an underpayment or
partial payment, interest shall be computed 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 respect 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 person or persons
entitled thereto, together with interest thereon for the number
of days such overpayment or amounts were held by the Sec-
retary, 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 LIMITATIONS.—
(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 produced 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 the production involved,
the royalty allegedly due and the basis for the claim. No action,