I
106TH CONGRESS
2D SESSION
H. R. 4297
To amend the Mineral Leasing Act of 1920 to ensure the orderly development
of coal, coalbed methane, natural gas, and oil in common areas of
the Powder River Basin, Wyoming and Montana, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 13, 2000
Mrs. CUBIN introduced the following bill; which was referred to the Committee
on Resources
A BILL
To amend the Mineral Leasing Act of 1920 to ensure the
orderly development of coal, coalbed methane, natural
gas, and oil in common areas of the Powder River Basin,
Wyoming and Montana, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Powder River Basin
Resource Development Act of 2000’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds the following:
(1) The Powder River Basin in Wyoming and
Montana is one of the world’s richest energy re-
source regions, possessing the largest reserves of
coal in the United States and significant deposits of
oil and natural gas, including coalbed methane.
(2) 
The 
coal 
is 
predominantly 
federally
owned—either as part of the public lands or re-
served from public lands that were sold under home-
stead laws enacted in 1909, 1910, and 1916—and
is leased to coal producers by the Bureau of Land
Management, under the Mineral Leasing Act.
(3) The gas and oil are owned by the Federal
Government, the States, and private parties.
(4) The federally owned gas and oil, like the
coal, are part of the public lands and leased to oil
and gas lessees by the Bureau of Land Management
under the Mineral Leasing Act.
(5) The privately owned gas and oil were con-
veyed with the public lands purchased under the 3
homestead laws and may have been sold or leased to
oil and gas producers by the successors to those
original purchasers.
(6) Development of these valuable energy re-
sources is of critical importance to the American
public.
(7) These energy resources provide fuel to heat
and light our homes and power our industries.
(8) Extraction of these energy resources pro-
vides royalties, taxes, and wages that contribute to
national, State, and local treasuries and economies.
(9) Development of both the coal and the gas
and oil is occurring in the Powder River Basin.
(10) In many locations both the coal and the
gas and oil have been leased or sold to different par-
ties. These resources are frequently extracted se-
quentially, but for safety and operational reasons
typically cannot be extracted simultaneously, in the
same location. Where concurrent development is im-
possible and even where it may be possible, disputes
have arisen among the different parties concerning
plans for, and the course of, development of these
resources.
(11) The development of any one of these re-
sources can result in loss of another, either by mak-
ing recovery impossible in the case of coalbed meth-
ane or uneconomic in the case of deep natural gas,
oil, or coal.
(12) The nature, extent, and value of any loss
or delay in development of the gas, oil, or coal re-
source due to development of another of these re-
sources in the common areas within the Powder
River Basin in which disputes between the resources’
developers arise should be ascertained and fair mar-
ket value for the loss or delay provided either by
agreement between the developers or by an expedi-
tious adjudication procedure.
(13) The Federal law under which most of the
coal and much of the gas and oil in the Powder
River Basin are made available for development
should be amended to provide a procedure that will
assure the orderly development of the energy re-
sources, and fair treatment to the resources’ devel-
opers, in the common areas within the Powder River
Basin in which disputes between the developers
arise.
(b) PURPOSES.—The purposes of this Act are to—
(1) amend the Mineral Leasing Act to provide
a procedure to resolve disputes between developers of
coal and developers of natural gas and oil in the
common areas within the Powder River Basin to
which this Act applies regarding the sequence of de-
velopment of those resources in the same location;
(2) encourage maximum recovery of the re-
sources prior to the time at which such disputes are
likely to occur or thereafter until the procedure pro-
vided by this Act is implemented;
(3) ensure that the procedure provided by this
Act is employed only as a last resort if the disputes
are not fully resolved by voluntary agreements be-
tween the resources’ developers or administrative
policies and actions;
(4) determine fair and just compensation owed
for the postponement, or loss, of the opportunity to
develop a resource resulting from implementation of
the procedure provided by this Act; and
(5) provide expressly that the procedure pro-
vided by this Act will neither apply to nor set any
precedent for resolution of disputes between or
among resource developers outside of the common
areas within the Powder River Basin to which this
Act applies.
SEC. 3. AMENDMENT TO THE MINERAL LEASING ACT.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is
amended by redesignating section 44 as section 45 and
inserting after section 43 the following new section:
‘‘SEC. 44. DEVELOPMENT OF COAL, NATURAL GAS, AND OIL
IN THE POWDER RIVER BASIN.
‘‘(a) DEFINITIONS.—As used in this section:
‘‘(1) The term ‘Powder River Basin’ or ‘Basin’
means the area designated as ‘Powder River Basin’
on a map entitled ‘MLA Section 44 Powder River
Basin Area’, dated July 1, 1999, and on file in the
Wyoming and Montana State Offices of the Bureau
of Land Management.
‘‘(2) The term ‘Subsection (h) Lands’ means
the area designated as ‘Subsection (h) Lands’ on the
map described in paragraph (1).
‘‘(3) The term ‘Federal coal lease’ means a
lease of Federal coal in the Basin issued pursuant
to this Act.
‘‘(4) The term ‘Federal coal lessee’ means the
holder of a Federal coal lease.
‘‘(5) The term ‘oil and gas developer’ means the
holder of a lease under this Act for oil or gas in the
Basin or a lease for or right to develop oil and gas
in the Basin provided by any State or private owner.
‘‘(6) The term ‘oil and gas property’ means an
area of the Basin which is subject to the lease for
or right to develop oil and gas held by an oil or gas
developer as described in paragraph (5).
‘‘(7) The term ‘common area’ means an area in
the Basin in which all or a portion of a Federal coal
lease and any area of State or private coal within a
logical mining unit with the Federal coal lease over-
laps all or a portion of an oil and gas property.
‘‘(8) The term ‘approved or proposed mining
plan’ means a mining plan that is approved by, or
has been submitted for the approval of, the Bureau
of Land Management.
‘‘(9) The term ‘coalbed methane’ shall have the
meaning given that term in section 1339(p)(2) of
the Energy Policy Act of 1992 (106 Stat. 2992; 42
U.S.C. 13368(p)(2)).
‘‘(10) The term ‘owner of any interest in the oil
and gas property’ means the owner of any interest
in the oil and gas property, including working inter-
est, lease interest, operating interest, mineral inter-
est, and royalty interest, and any other person who
might receive compensation for unavoidable fixed ex-
penses under an order concerning the oil and gas
property issued pursuant to paragraph (10)(E) of
subsection (f).
‘‘(11) The term ‘owners of any non-Federal in-
terest in the oil and gas property’ means all owners
of any interest in the oil and gas property except the
Federal Government or any agency or department
thereof.
‘‘(12) The term ‘develop’ or ‘development’
means to develop or to produce, or both, or the de-
velopment or production, or both, respectively, in-
cluding all incidental operations.
‘‘(b) PARTIES ENCOURAGED TO ENTER INTO WRIT-
TEN AGREEMENT.—In any common area, the Federal coal
lessee and oil and gas developer, subject to applicable Fed-
eral and State law, may and are encouraged to enter into
a written agreement that details operations and assigns
or assesses costs or compensation for the concurrent or
sequential development of those resources.
‘‘(c) MINERAL CONSERVATION.—The Secretary shall
employ such authority as the Secretary may possess under
this Act to encourage expedited development of oil and gas
and coal that—
‘‘(1) are leased pursuant to this Act;
‘‘(2) are within common areas; and
‘‘(3) otherwise may be lost or bypassed under
agreements entered into, or orders issued, pursuant
to this section.
‘‘(d) EXPLORATION.—Unless otherwise provided by
law, in any common area where no coal, gas, or oil devel-
opment operations have commenced, the Federal coal les-
see and the oil and gas developer shall each—
‘‘(1) have access to conduct exploration activi-
ties; and
‘‘(2) conduct such activities in a manner that
will avoid undue interference with the other’s activi-
ties.
‘‘(e) NEGOTIATIONS CONCERNING DEVELOPMENT
PRIORITY FOR CERTAIN OPERATIONS IN THE BASIN.—
‘‘(1) OBLIGATION
TO
PROVIDE
WRITTEN
NO-
TICE OF CONFLICT.—Whenever a Federal coal lessee
or an oil and gas developer determines that a com-
mon area exists which contains a Federal coal lease,
or a logical mining unit, including the Federal coal
lease, held by the Federal coal lessee and an oil and
gas property held by the oil and gas developer and,
pursuant to an approved or proposed mining plan,
mining operations or facilities in support of mining
for coal on the leasehold or the logical mining unit
will be located within the common area, the Federal
coal lessee or the oil and gas developer shall provide
written notice of the determination to the other
party no later than 210 days prior to the date on
which the mining operations or construction of the
mine support facilities is projected by the approved
or proposed mining plan to commence in the com-
mon area.
‘‘(2) OBLIGATION
TO
NEGOTIATE.—Promptly
after providing the notice referred to in paragraph
(1), the party which provided the notice shall seek
to negotiate a written agreement with the other
party that resolves any conflict between the develop-
ment of gas or oil and development of coal in the
common area.
‘‘(f) COMPENSATION PROCEDURES FOR ASSIGNMENT
OF DEVELOPMENT PRIORITY.—
‘‘(1) PETITION FOR RELIEF.—(A) If the Fed-
eral coal lessee and the oil and gas developer engage
in negotiations, but do not reach agreement, pursu-
ant to subsection (e)(2), the Federal coal lessee or
the oil and gas developer may file a petition for re-
lief as described in subparagraph (C) in the United
States district court for the district in which the
common area is located on any date which is not less
than 150 days prior to the date on which the mining
operations or construction of the mine support facili-
ties is projected by the approved or proposed mining
plan to commence in the common area.
‘‘(B) The petitioner shall serve the oil and gas
developer or the Federal coal lessee, as the case may
be, with a copy of the petition for relief.
‘‘(C) The petition for relief shall include the fol-
lowing:
‘‘(i) A description and map of the Federal
coal lease, the oil and gas property, and the
common area.
‘‘(ii) A list containing the names and ad-
dresses of all owners of any non-Federal inter-
est in the oil and gas property and all owners
of any non-Federal interest in the Federal coal
lease or logical mining unit. The petitioner shall
list those owners of any non-Federal interest in
the oil and gas property and of the Federal coal
lease or logical mining unit whom the petitioner
is able to ascertain from the properly indexed
records of the county recorder of the county or
counties in which the oil and gas property and
Federal coal lease or logical mining unit are lo-
cated, and the respondent shall file with the
court and serve on the petitioner any correc-
tions of, additions to, or deletions from the list
known to the respondent within 10 days of
service of the petition for relief pursuant to
subparagraph (A). Thereafter, whenever any
correction of, addition to, or deletion from the
list becomes known to either the petitioner or
the respondent, that party shall promptly file
with the court and serve on the other party the
addition, correction, or deletion. Any person
who believes he or she is an owner of any non-
Federal interest in the oil and gas property or
in the Federal coal lease or logical mining unit
and is omitted from the list may file a motion
in the court to be added to the list at any time
prior to the issuance of an order pursuant to
paragraph (10)(E) or paragraph (11)(C).
‘‘(iii) A certified copy of the notice de-
scribed in subsection (e)(1).
‘‘(iv) A sworn statement by a senior officer
of the petitioner with authority to commit the
petitioner in any negotiation under subsection
(e)(2) 
stating, 
and 
all 
documents 
dem-
onstrating, that the petitioner negotiated or at-
tempted to negotiate in good faith with the re-
spondent, pursuant to subsection (c)(2), a vol-
untary agreement for development of the coal
and gas or oil resources or an agreement to
compensate the oil and gas developer and all
other owners of any non-Federal interest in the
oil and gas property for any loss of, or delay in
development of, the oil or gas resource, or the
Federal coal lessee and all other owners of any
non-Federal interest in the Federal coal lease
or logical mining unit for any loss of, or delay
in development of, the coal resource, resulting
from the conflict between development of gas or
oil and development of coal in the common
area.
‘‘(D) The Federal coal lessee shall submit a
copy of the approved or proposed mining plan for
the mining operations or support facilities that are
the subject of the petition for relief—
‘‘(i) with the petition for relief if the Fed-
eral coal lessee is the petitioner; or
‘‘(ii) within 5 days of the date of service of
the petition for relief if the Federal coal lessee
is the respondent.
‘‘(2) JOINDER OF PARTIES.—The Secretary of
the Interior and all owners of any non-Federal inter-
est in the oil and gas property and in the Federal
coal lease or logical mining unit identified pursuant
to paragraph (1)(C)(ii) shall be joined in the pro-
ceedings established pursuant to this subsection.
‘‘(3) PARTIES’ RESPONSE TO PETITION.—The
non-Federal respondent or respondents shall have 30
days from the date of service of the petition for re-
lief in which to respond to the petition. The Sec-
retary of the Interior shall have 60 days from the
date of service of the petition for relief in which to
respond to the petition.
‘‘(4) COURT’S INITIAL RESPONSE TO PETITION:
PUBLIC
INTEREST
DETERMINATION
AND
ORDER
CONCERNING SEQUENCE OF DEVELOPMENT.—With-
in 120 days of the filing of the petition for relief
pursuant to paragraph (1)(A), the court shall take
the following actions:
‘‘(A) The court shall determine, with peti-
tioner having the burden of proof—
‘‘(i) whether a common area exists;
and
‘‘(ii) whether the approved or pro-
posed mining plan provides for the mining
operations to intersect, or the mine sup-
port facilities to be constructed in, any
portion of the common area.
‘‘(B)(i) If existence of the common area
and intersection of, or construction in, the com-
mon area are determined pursuant to subpara-
graph (A), the court shall determine whether
the public interest is best realized either by sus-
pension of all or any part of, including any geo-
graphical area of or zone or reservoir subject to,
the oil and gas lease or right to develop to ac-
commodate coal development, or by suspension
of the Federal coal lease to accommodate gas or
oil development, in any portion of the common
area during the period prior to an order issued
pursuant to paragraph (10)(E) or paragraph
(11)(C).
‘‘(ii) Notwithstanding the obligations of
Federal and State officials to maximize the eco-
nomic benefit to be received from mineral re-
sources, the public interest determination de-
scribed in clause (i) shall be made solely by the
calculation of the greater economic benefit to be
realized by comparison, on a net present value
basis, of the Federal and State revenues from
royalties and severance taxes likely to be gen-
erated from each mineral underlying the com-
mon area to which the petition for relief ap-
plies.
‘‘(C)(i) If the determination made pursu-
ant to subparagraph (B) is that the public in-
terest is best realized by suspension of all or
part of the oil and gas lease or right to develop,
the court shall issue an order fixing the date
upon which the Federal coal lessee may com-
mence mining operations or construction of
support facilities in the common area.
‘‘(ii) The date fixed by the court pursuant
to clause (i) may not be later than the com-
mencement date referred to in paragraph
(1)(A) and provided in the notice submitted
pursuant to paragraph (1)(C)(iii), except for
good cause shown.
‘‘(D)(i) If the determination made pursu-
ant to subparagraph (B) is that the public in-
terest is best realized by requiring suspension of
the Federal coal lease, the court shall issue an
order prohibiting the mining operations from
intersecting, or the support facilities from being
constructed in, all or a portion of the common
area.
‘‘(ii) The order issued pursuant to clause
(i) shall expire upon the issuance of an order
pursuant to paragraph (11)(C).
‘‘(5) CONDITIONS IN WHICH COURT MAY RE-
FRAIN FROM ISSUING ORDER.—(A) The court may
receive such briefs or testimony, or both, as it deems
appropriate within 90 days of the filing of the peti-
tion for relief pursuant to paragraph(1)(A), but may
refrain from issuing the order required by paragraph
(4)(C) or paragraph (4)(D) only if the court deter-
mines, pursuant to paragraph (4)(A), that—
‘‘(i) no common area exists; or
‘‘(ii) the approved or proposed mining plan
does not provide for the mining operations to
intersect, or the support facilities to be con-
structed in, the common area.
‘‘(B) If the court makes either determination
described in subparagraph (A), the court shall issue
an order terminating the proceeding under this sub-
section.
‘‘(6) VALUATION
PROCEDURE: APPOINTMENT
OF EXPERTS.—(A) Within 30 days of the issuance
of an order pursuant to paragraph (4)(C) or para-
graph (4)(D), to assist the court in making the de-
terminations pursuant to paragraph (10) or para-
graph (11), the Federal coal lessee and the oil and
gas developer shall each appoint a person who is an
expert in appraising the value of, and right to de-
velop, gas or oil if the order is issued under para-
graph (4)(C), or coal if the order is issued under
paragraph (4)(D), and these persons shall agree
upon and appoint a third person with such expertise.
fidentiality that is applicable, and may be accorded,
to them by law and the Federal rules of civil proce-
dure and evidence.
‘‘(C) All information and data submitted to the
panel of experts pursuant to subparagraph (A) shall
be available for review by all parties unless an ex
parte order is issued by the court.
‘‘(D) The Federal coal lessee may drill for and
otherwise collect data or information on coalbed
methane at any site or sites within the common area
that are not within a spacing unit containing a well
that is producing or capable of producing coalbed
methane. The drilling or collection of data or infor-
mation shall be for the sole purpose of submission
of information and data pursuant to this paragraph.
The Federal coal lessee shall not produce any coal-
bed methane as a result of any drilling authorized
by this subparagraph and shall comply with any
Federal or State requirements applicable to such ac-
tivity.
‘‘(8) SUBMISSION OF BRIEFS AND HEARING.—
(A) Within 45 days of the appointment of the panel
of experts pursuant to paragraph (6), all parties
may submit briefs concerning the determinations to
be made pursuant to paragraph (10) or paragraph
(11).
‘‘(B) Within 60 days of the appointment of the
panel of experts pursuant to paragraph (6), the
panel may, or if requested by the petitioner or a re-
spondent shall, receive testimony from all parties
concerning the determinations to be made pursuant
to paragraph (10) or paragraph (11).
‘‘(9) EXPERTS’ REPORT.—Within 120 days of
the appointment of the panel of experts pursuant to
paragraph (6), the panel shall submit a written re-
port to the court providing in detail the panel’s rec-
ommendations on the determinations to be made
pursuant to paragraph (10) or paragraph (11).
‘‘(10) COURT’S FINAL RESPONSE TO PETITION:
VALUATION CONCERNING ECONOMICALLY RECOVER-
ABLE OIL OR GAS RESOURCES LOST OR DELAYED,
SUSPENSION
OR
TERMINATION, 
AND
PAYMENT
ORDER.—Within 210 days of the issuance of an
order pursuant to paragraph (4)(C), the court shall
take the following actions:
‘‘(A)(i) The court shall determine whether,
as a result of the order issued pursuant to
paragraph (4)(C), all or any part of, including
any geographical area of or zone or reservoir
subject to, the oil and gas lease or right to de-
velop should be suspended during the period in
which the mining operations or support facili-
ties occupy the common area or whether the oil
and gas lease or right to develop should be ter-
minated.
‘‘(ii) Any determination to suspend pursu-
ant to clause (i) shall, wherever possible or ap-
propriate, limit the suspension or phase the sus-
pension to permit the optimum development of
the oil or gas prior to the time at which the
mining operations would reach the area within
the common area that is subject to the suspen-
sion or particular phase of the suspension.
‘‘(iii) Any determination to terminate pur-
suant to clause (i) shall be made only if the
court finds that the economically recoverable oil
and gas resources subject to compensation pur-
suant to subparagraph (E) would be entirely
lost or rendered impracticable to produce as a
consequence of the mining operations in the
common area and that such resources con-
stitute all of the economically recoverable re-
sources within the oil and gas property.
‘‘(B) If the court makes a determination to sus-
pend pursuant to subparagraph (A), the court shall
determine—
‘‘(i) the amount of any net income that will
not be realized due to delay in development of
economically recoverable resources of oil or gas,
other than coalbed methane, from the common
area, whether or not such development has
commenced;
‘‘(ii) the amount of any net income that
will not be realized due to—
‘‘(I) delay in development of economi-
cally recoverable resources of coalbed
methane in the common area, whether or
not development has commenced;
‘‘(II) the loss of any economically re-
coverable resources of coalbed methane
from the coal to be extracted by the min-
ing operations in the common area; and
‘‘(III) the loss of any economically re-
coverable resources of coalbed methane un-
derlying any area that is within the oil and
gas property associated with the common
area and that extends outward from each
exposed coal face of the mining operations
for a distance from which drainage of such
resources is established to the satisfaction
of the court; and
‘‘(iii) any of the following damages that
will be incurred by the oil and gas developer as
a consequence of the suspension: any unavoid-
able fixed expenses (including, but not limited
to, the expenses of shutting in production,
maintenance, testing, redrilling or reconnecting
an existing well, relaying pipeline, and all other
expenses reasonably related to reestablishing
any existing oil or gas production); expenses as-
sociated with stranded costs of drilling equip-
ment and facilities; any royalties on oil or gas
not produced; and any lost income associated
with temporarily shutting in production from
wells outside of the common area as needed for
reconnection to a gathering system or pipeline
to market.
‘‘(C) The determinations made pursuant to
subparagraph (B) shall not reflect any decrease
in value that occurred before the date of the de-
terminations and is caused by the mining oper-
ations or support facilities.
‘‘(D) If the court makes a determination to
terminate pursuant to subparagraph (A), the
court shall determine the amount of any net in-
come that will not be realized and any damages
due to the loss of, or impracticability to
produce, the economically recoverable resources
of oil or gas in the oil and gas property in the
same manner as provided in subparagraph (B).
‘‘(E) The court shall issue an order that—
‘‘(i) suspends all or part of, suspends
in phases parts of, or terminates the oil
and gas lease or right to develop, including
any applicable payment or production obli-
gations; and
‘‘(ii) awards to the oil and gas devel-
oper and all other owners of any interest
in the oil and gas property, as their inter-
ests may appear, a sum of money from the
Federal coal lessee equal to the net income
amount and damages determined pursuant
to subparagraph (B) or subparagraph (D).
‘‘(F) In determining the amount of net in-
come that will not be realized pursuant to sub-
paragraph (B) or subparagraph (D) and the
sum of money to be awarded pursuant to sub-
paragraph (E), the court shall ensure to the
best of its ability that the Federal coal lessee is
not required to pay for the same gas lost, de-
layed in development, or rendered impracticable
to develop to more than one oil and gas devel-
oper or the owner of any interest in more than
one oil and gas property.
‘‘(11) COURT’S FINAL RESPONSE TO PETITION:
VALUATION CONCERNING ECONOMICALLY RECOVER-
ABLE COAL RESERVES LOST OR DELAYED, SUSPEN-
SION
OR
TERMINATION
AND
PAYMENT
ORDER.—
Within 210 days of the issuance of an order pursu-
ant to paragraph (4)(D), the court—
‘‘(A) shall determine whether the Federal
coal lease shall be suspended in whole or in part
to accommodate oil or gas development in the
common area; and
‘‘(B) shall determine the amount of any
net income that will not be realized from the
loss or delay in development of economically re-
coverable resources of coal, and the unavoidable
fixed expenses (including, but not limited to,
additional expenses associated with reclamation,
expenses associated with stranded costs of min-
ing equipment and facilities, a proportionate re-
fund of the lease bonus, and any royalties on
coal not produced) that will be incurred, by the
Federal coal lessee as a consequence of the sus-
pension; and
‘‘(C) shall issue an order that—
‘‘(i) suspends in whole or in part the
Federal coal lease, including any applicable
payment or production obligations on the
lease or logical mining unit, for the period
necessary for expeditious development in
the common area of the gas or oil that is
the subject of the petition for relief as
demonstrated to the court in a production
plan submitted by the oil and gas devel-
oper; and
‘‘(ii) awards to the Federal coal lessee
and all other owners of any interest in the
Federal coal lease or logical mining unit,
as their interests may appear, a sum of
money equal to the net income amount and
unavoidable fixed expenses determined pur-
suant to subparagraph (B).
‘‘(12) REVIEW OF EXPERTS’ REPORT.—(A) The
court shall make the determinations required by
paragraph (10) or paragraph (11) after reviewing
the report of the panel of experts submitted pursu-
ant to paragraph (9) and the hearing required by
subparagraph (B).
‘‘(B) After submission of the report of the
panel of experts pursuant to paragraph (9) and
prior to making the determinations required by
paragraph (10) or paragraph (11), the court shall
hold a hearing in which the panel of experts shall
present their report and the parties to the pro-
ceeding shall have the opportunity to examine the
panel and provide to the court any evidence or argu-
ments they may have to support or contravene the
recommendations of the report.
‘‘(13) DISBURSEMENT OF PAYMENTS.—
‘‘(A)(i) At the election of the oil and gas
developer, the sum of money awarded by the
court pursuant to paragraph (10)(E) shall be—
‘‘(I) paid in full within 60 days of the
date of issuance of the order pursuant to
paragraph (10)(E); or
‘‘(II) divided into the number of tons
of recoverable coal in the common area and
shall be paid in per ton increments as the
coal is mined in accordance with clause (ii)
and subparagraph (C).
‘‘(ii) The Federal coal lessee shall make
the payments required by clause (i)(II) on a
quarterly basis in advance based on the Federal
coal lessee’s estimate of the number of tons of
coal to be mined in the common area during the
following quarter, and shall add or subtract an
amount to or from the advance payment for the
next quarter to reflect the coal actually sold or
transferred.
‘‘(B)(i) At the election of the Federal coal
lessee, the sum of money awarded by the court
pursuant to paragraph (11)(C) shall be—
‘‘(I) paid in full within 60 days of the
date of issuance of the order pursuant to
paragraph (11)(C); or
‘‘(II) divided into the number of bar-
rels of recoverable oil or cubic feet of re-
coverable gas in the common area and paid
in per barrel or cubic feet increments as
the oil or gas is produced in accordance
with clause (ii) and subparagraph (C).
‘‘(ii) The oil and gas developer shall make
the payments required by clause (i)(II) on a
quarterly basis in advance based on the oil and
gas developer’s estimate of the number of bar-
rels of oil or cubic feet of gas to be produced
in the common area during the following quar-
ter, and shall add or subtract an amount to or
from the advance payment for the next quarter
to reflect the oil or gas actually produced.
‘‘(C) If the mining or production necessary
to make full payment of the sum of money
awarded by the court in accordance with sub-
paragraph (A)(i)(II) or subparagraph (B)(i)(II)
does not occur within 5 years of the date of
issuance of the court order pursuant to para-
graph (10)(E) or paragraph (11)(C), the un-
paid balance shall be paid within 60 days there-
after.
‘‘(14) TERMINATION OF OIL AND GAS LEASE
SUSPENSION.—(A) If the court issues an order to
suspend all or any part of the oil and gas lease or
right to develop pursuant to paragraph (10)(E)—
‘‘(i) the Federal coal lessee shall notify the
court and the oil and gas lessee developer when
the portion of the common area subject to the
order issued pursuant to paragraph (10)(E) is
no longer required for mining operations or
support facilities; and
‘‘(ii) within 120 days of the date of receipt
by the court of the notification pursuant to
clause (i) or within 60 days prior to the date
on which the period established by the court in
the order issued pursuant to paragraph (10)(E)
concludes, the oil and gas lessee may petition
the court for an order that terminates the sus-
pension and fixes the date and terms on which
the oil and gas lessee may resume operations
within the portion of the common area subject
to the order issued pursuant to paragraph
(10)(E).
‘‘(B) The court shall issue the order sought
under subparagraph (A)(ii) within 30 days of receipt
of the petition pursuant to subparagraph (A)(ii).
‘‘(C)(i) If the oil and gas developer determines
that, as a consequence of the order of the court
issued pursuant to paragraph (4)(C) and an order to
suspend all or portions of the oil and gas lease or
right to develop pursuant to paragraph (10)(E), the
conditions described in paragraph (10)(A)(iii) exist,
the oil and gas developer may petition the court to
terminate in whole or in part the oil and gas lease
or right to develop.
‘‘(ii) The petition referred to in clause (i) may
be filed any time after issuance of the order of the
court pursuant to paragraph (10)(E) but not later
than 120 days after the date of receipt by the court
of the notification pursuant to subparagraph (A)(i).
‘‘(iii) Upon receipt of a petition pursuant to
clause (i), the court shall make a determination
whether to issue an order to terminate in whole or
in part the oil and gas lease or right to develop and
award an additional amount from the Federal coal
lessee to the oil or gas developer and all other own-
ers of any non-Federal interest in the oil and gas
property, as their interests may appear, in accord-
ance with the procedures and deadlines established
in paragraph (1) and paragraphs (6) through (13).
‘‘(15) TERMINATION OF COAL LEASE SUSPEN-
SION.—(A) If the court issues an order requiring
suspension of the Federal coal lease pursuant to
paragraph (11)(C)—
‘‘(i) the oil and gas developer shall notify
the court and the Federal coal lessee when the
portion of the common area subject to the order
issued pursuant to paragraph (11)(C) is no
longer required for gas or oil production from
such portion; and
‘‘(ii) within 120 days of the receipt by the
court of the notification pursuant to clause (i)
or within 60 days prior to the date on which
the period established by the court in the order
issued pursuant to paragraph (11)(C) con-
cludes, the Federal coal lessee may petition the
court for an order that fixes the date and terms
on which the Federal coal lessee may commence
mining operations or construction of support fa-
cilities in the portion of the common area sub-
ject to the order issued pursuant to paragraph
(11)(C) and, if the Federal coal lease is sus-
pended, terminates the suspension.
‘‘(B) The court shall issue the order sought
under subparagraph (A)(ii) within 30 days of receipt
of the petition pursuant to subparagraph (A)(ii).
‘‘(C)(i) If the Federal coal lessee determines
that, as a consequence of the orders of the court
issued pursuant to paragraph (4)(D) and paragraph
(11)(C), further development of all or any part of
the Federal coal lease is impracticable, the Federal
coal lessee may petition the court to terminate all or
any part of the Federal coal lease.
‘‘(ii) The petition referred to in clause (i) may
be filed any time after issuance of the order of the
court pursuant to paragraph (11)(C) but not later
than 120 days after the date of receipt by the court
of the notification pursuant to subparagraph (A)(i).
‘‘(iii) Upon receipt of a petition pursuant to
clause (i), the court shall make a determination
whether to issue an order to terminate all or any
part of the Federal coal lease and award an addi-
tional amount from the oil and gas developer to the
Federal coal lessee and all other owners of any inter-
est in the Federal coal lease or logical mining unit,
as their interests may appear, in accordance with
the procedures and deadlines established in para-
graph (1) and paragraphs (6) through (13).
‘‘(16) SUPPLEMENTAL
PETITION
FOR
RE-
LIEF.—(A) If, at any time after the issuance of an
order pursuant to paragraph (10)(E) or paragraph
(11)(C), the mining plan that is the basis of the
order is altered in a manner that may warrant sus-
pension of an additional part or all of, or termi-
nation of, the oil and gas lease or right to develop
or suspension of an additional part of the Federal
coal lease or an increase in the sum of money that
was awarded under the order, or both, either the
Federal coal lessee or the oil and gas developer may,
if necessary after compliance with the requirements
of subsection (e), file a supplemental petition for re-
lief with the court to amend the order.
‘‘(B) The requirements of paragraph (1) and
paragraphs (6) through (13) shall apply to the sup-
plemental petition submitted pursuant to subpara-
graph (A).
‘‘(C)(i) Upon completion of the process required
by subparagraph (B), the court shall make a deter-
mination whether to suspend an additional part or
all of, or terminate, the oil and gas lease or right to
develop or to suspend an additional part of the Fed-
eral coal lease as described in, and to award an ad-
ditional sum of money calculated in accordance with,
paragraph (10) or paragraph (11).
‘‘(ii) The court shall issue any order resulting
from the determinations made pursuant to clause (i)
within 90 days of the date of filing of the supple-
mental petition for relief.
‘‘(iii) Any award of an additional sum of money
shall be paid in accordance with paragraph (13).
‘‘(17) APPEAL OF COURT ORDERS.—(A) Any
order issued pursuant to paragraph (4)(C), para-
graph (4)(D), paragraph (5)(B), paragraph (14)(B),
or paragraph (15)(B) is final and may not be ap-
pealed.
‘‘(B) Any order issued pursuant to paragraph
(10)(E), paragraph (11)(C), paragraph (14)(C)(iii),
paragraph (15)(C)(iii), or paragraph (16)(C)(ii) may
be appealed, but the appeal, and any disposition
thereof, may not disturb any order referred to in
subparagraph (A).
‘‘(g) LIABILITY LIMITATION.—
‘‘(1) FEDERAL COAL LESSEE.—Except as pro-
vided in a written agreement reached pursuant to
subsection (e)(2) or reached on or after September
1, 1999, and before the date of enactment of this
section, or as provided by an order of the court pur-
suant to subsection (f), the holder of a Federal coal
lease subject to the agreement or order shall not be
liable to the oil and gas developer of, or any owner
of an interest in, any oil and gas property subject
to the agreement or order for any decrease in or de-
pletion of, or any impairment of the ability to re-
cover, any gas or oil from the property that may re-
sult from the development of any coal on the Fed-
eral coal leasehold or within a logical mining unit
with the Federal coal lease.
‘‘(2) OIL
AND
GAS
DEVELOPER.—Except as
provided in a written agreement reached pursuant to
subsection (e)(2) or reached on or after September
1, 1999, and before the date of enactment of this
section, or as provided by an order of the court pur-
suant to subsection (f), the oil and gas developer of
an oil and gas property subject to the agreement or
order shall not be liable to a holder of a Federal coal
lease subject to the agreement or order, the United
States, or any owner of an interest in private or
State coal within a logical mining unit with the Fed-
eral coal lease, for any impairment of the ability to
recover coal from the Federal coal leasehold or log-
ical mining unit that may result from the develop-
ment of gas or oil on the property.
‘‘(h) CREDIT AGAINST ROYALTIES.—
‘‘(1) IN GENERAL.—(A) Whenever a holder of
a coal lease issued under this Act is required by a
written agreement reached pursuant to subsection
(e)(2) and ratified by the Bureau of Land Manage-
ment or reached prior to the date of enactment of
this section and ratified by the Bureau of Land
Management on or after September 1, 1999, or by
a court order issued pursuant to paragraph (10)(E),
paragraph (14)(C)(iii), or paragraph (16)(C)(ii) of
subsection (f), to pay an amount for termination or
suspension of all or part of, or termination, of an oil
and gas lease of, or right to develop, coalbed meth-
ane on any oil and gas property located within the
Subsection (h) Lands, the amount so paid shall be
credited against any royalties on production required
by section 7(a) or any other provision of this Act
from any Federal coal lease of such holder or any
affiliate thereof.
‘‘(B) Whenever a holder of an oil and gas lease
issued under this Act is required by a written agree-
ment reached pursuant to subsection (c)(2) and rati-
fied by the Bureau of Land Management or reached
prior to the date of enactment of this section and
ratified by the Bureau of Land Management on or
after September 1, 1999, or by a court order issued
pursuant 
to 
paragraph 
(11)(C), 
paragraph
(15)(C)(iii), or paragraph (16)(C)(ii) of subsection
(f), to pay an amount for suspension or termination
of all or part of a Federal coal lease located within
the Subsection (h) Lands, the amount so paid shall
be credited against any royalties on production re-
quired by subsection (b)(1)(A) or subsection (c)(1)
of section 17 or any other provision of this Act from
any Federal oil and gas lease of such holder or any
affiliate thereof.
‘‘(2) TREATMENT OF ROYALTIES TO STATES.—
The Secretary shall pay to the State in which the
coal lease or oil and gas lease referred to in para-
graph (1)(A) or paragraph (1)(B), respectively, is lo-
cated 50 percent of the amount of any credit against
royalties provided under paragraph (1)(A) or para-
graph (1)(B), respectively—
‘‘(A) in the same manner as if the credit
against royalties had been paid in money as
royalties and distributed under section 35(a);
and
‘‘(B) from amounts received as royalties,
rentals, or bonuses derived from leases issued
under this Act that otherwise would be depos-
ited to miscellaneous receipts under section
35(a).
‘‘(i) DENIAL OF USE AS PRECEDENT.—Nothing in
this section shall be applicable to any lease under this Act
for any mineral, or shall be applicable to, or supersede
any statutory or common law otherwise applicable in, any
proceeding in any Federal or State court involving devel-
opment of any mineral, outside of any common area, as
defined in subsection (a)(6), within the Powder River
Basin, as defined in subsection (a)(1).’’.
Æ