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(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 sub-
section (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, agreements, or leases during their
terms. Performance of such obligations by the private cor-
poration shall be considered performance by the United
States.
(2) If a contract, agreement, or lease transferred under
subsection (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, agree-
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ment, or lease after any extension or material amend-
ment, and
(B) the United States shall be responsible for
any obligation arising under the contract, agreement,
or lease before the termination, 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 corpora-
tion 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 products, materials, and services provided to cus-
tomers on a basis that will allow it to attain the normal
business objectives of a profit making corporation.
SEC. 5009. LIABILITIES.
(a) LIABILITY OF THE UNITED STATES.—(1) Except
as otherwise provided in this Subtitle, all liabilities arising
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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 other-
wise 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 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 li-
abilities 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 out of, or resulting from,
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 accord-
ance with procedures to be established by the Secretary.
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Nothing in this paragraph shall be construed to impose on
the Department of Energy liability to pay any claim pre-
sented 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.—Notwithstand-
ing any provision of any agreement to which the Corpora-
tion is a party, the Corporation shall not be considered in
breach, default, or violation of any agreement because of
the transfer of such agreement to the private corporation
under section 5008 or any other action the Corporation is
required to take under this subtitle.
(c) LIABILITY OF THE PRIVATE CORPORATION.—Ex-
cept as provided in this subtitle, the private corporation
shall be liable for any liabilities arising out of its oper-
ations 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.
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(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 Constitution or laws of any State, territory,
or possession of the United States relating to transactions
in securities.
SEC. 5010. EMPLOYEE PROTECTIONS.
(a) CONTRACTOR
EMPLOYEES.—(1) Privatization
shall not diminish the accrued, vested pension benefits of
employees of the Corporation’s operating contractor at the
two gaseous diffusion plants.
(2) In the event that the private corporation termi-
nates or changes the contractor at either or both of the gase-
ous diffusion plants, the plan sponsor or other appropriate
fiduciary of the pension 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 plans participants and beneficiaries from
such plant to a pension plan sponsored by the new contrac-
tor or the private corporation or a joint labor-management
plan, as the case may be.
(3) In addition to any obligations arising under the
National Labor Relations Act, any employer (including the
private corporation if it operates a gaseous diffusion plant
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without a contractor or any contractor of the private cor-
poration) at a gaseous diffusion plant shall—
(A) abide by the terms of any unexpired collec-
tive bargaining agreement covering employees in bar-
gaining units at the plant and in effect on the privat-
ization date until the stated expiration or termi-
nation date of the agreement; or
(B) in the event a collective bargaining agree-
ment 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 diffusion plant without a contractor)
shall—
(A) offer employment to non-management em-
ployees 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 contrac-
tor’s collective bargaining agreement until the agree-
ment expires or a new agreement is signed.
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(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 diffu-
sion plants, the Secretary of Energy shall treat any ad-
versely affected employee of an operating contractor at ei-
ther 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 Author-
ization 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 persons em-
ployed 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 operat-
ing contractor or by a contractor employed prior to
July 1, 1993, by the Department of Energy to operate
a gaseous diffusion plant.
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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 subsection, 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
of the parties, without regard to the amount in controversy
or the citizenship of the parties.
(b) FORMER FEDERAL EMPLOYEES.—(1)(A) Employ-
ees of the Corporation who were subject to either the Civil
Service Retirement System (CSRS) or the Federal Employ-
ees’ Retirement System (FERS) on the day immediately
preceding the privatization date shall elect—
(i) to retain their coverage under either CSRS or
FERS, as applicable, in lieu of coverage by the Cor-
poration’s retirement system, or
(ii) to receive a deferred annuity or lump-sum
benefit payable to a terminated employee under
CSRS or FERS, as applicable.
(B) Those employees electing subparagraph (A)(ii)
shall have the option to transfer the balance in their Thrift
Savings Plan account to a defined contribution plan under
the Corporation’s retirement system, consistent with appli-
cable law and the terms of the Corporation’s defined con-
tribution plan.
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(2) The Corporation shall pay to the Civil Service Re-
tirement and Disability Fund—
(A) such employee deductions and agency con-
tributions as are required by sections 8334, 8422, and
8423 of title 5, United States Code, for those employ-
ees who elect to retain their coverage under either
CSRS or FERS pursuant to paragraph (1);
(B) such additional agency contributions as are
determined necessary by the Office of Personnel Man-
agement to pay, in combination with the sums under
subparagraph (A), the ‘‘normal cost’’ (determined
using dynamic assumptions) of retirement 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 prin-
ciples; and
(C) such additional amounts, not to exceed two
percent of the amounts under subparagraphs (A) and
(B), as are determined necessary by the Office of Per-
sonnel 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 survivors
of employees of the Corporation who die after the pri-
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vatization 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 re-
quired 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
(FEHBP) on the day immediately preceding the privatiza-
tion 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 inter-
ruption 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 con-
tributions 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
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(B) such amounts as are determined necessary
by the Office of Personnel Management under para-
graph (6) to reimburse the Office of Personnel Man-
agement 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 employ-
ees who retire from the Corporation after the privatization
date under either CSRS or FERS, for survivors of such re-
tired employees, and for survivors of employees of the Cor-
poration 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 per-
formed for the Corporation after the privatization date.
SEC. 5011. OWNERSHIP 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 favor-
able than those offered to the general public—
(1) in a public offering designed to transfer own-
ership of the Corporation to private investors,
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(2) pursuant to any agreement, arrangement, or
understanding entered into before the privatization
date, or
(3) before the election of the directors of the pri-
vate corporation.
SEC. 5012. URANIUM TRANSFERS AND SALES.
(a) TRANSFERS AND SALES BY THE SECRETARY.—The
Secretary shall not provide enrichment services or transfer
or sell any uranium (including natural uranium con-
centrates, natural uranium hexafluoride, or enriched ura-
nium 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 equiva-
lent to the natural uranium component of low-enriched ura-
nium 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 U.S. law for all purposes to be of
Russian origin.
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(2) Within 7 years of the date of enactment of this
subtitle, the Secretary shall sell, and receive payment for,
the uranium hexafluoride transferred to the Secretary pur-
suant 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; or
(C) 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 million 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 Execu-
tive Agent, enter into an agreement 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 re-
quest 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
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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 pur-
suant to this paragraph shall be deemed under U.S. law
for all purposes to be of Russian origin. Such uranium
hexafluoride may be sold to any person or entity for deliv-
ery and use in the United States only as permitted in sub-
sections (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 de-
livery of the natural uranium component of any low-en-
riched uranium, as contemplated in paragraph (3), within
90 days of the date such low-enriched uranium is delivered
to the United States 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 pre-
viously been sold) equivalent to the natural uranium com-
ponent of such low-enriched uranium. Such independent en-
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tity 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 ad-
ministrative costs. The quantity of such uranium
hexafluoride auctioned shall be based on a tails assay of
0.30 U235. Title to uranium hexafluoride auctioned pursu-
ant to this paragraph shall transfer to the buyer of such
material upon delivery of such material to the buyer. Ura-
nium hexafluoride auctioned pursuant to this paragraph
shall be deemed under U.S. law for all purposes to be of
Russian origin.
(5) Except as provided in paragraphs (6) and (7), ura-
nium hexafluoride delivered to the Russian Executive Agent
under paragraph (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 Jan-
uary 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 ................................................................................................
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Annual maximum
deliveries to end users
Year:
(millions lbs. U3O8
equivalent)
2003 ................................................................................................
2004 ................................................................................................
2005 ................................................................................................
2006 ................................................................................................
2007 ................................................................................................
2008 ................................................................................................
2009 and each year thereafter ......................................................
20.
(6) Uranium hexafluoride delivered to the Russian Ex-
ecutive Agent under paragraph (3) or auctioned pursuant
to paragraph (4) may be sold at any time as Russian-ori-
gin natural uranium in a matched sale pursuant to the
Suspension Agreement, and in such case shall not be count-
ed against the annual maximum deliveries set forth in
paragraph (5).
(7) Uranium hexafluoride delivered to the Russian Ex-
ecutive 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 oper-
ations of enrichment facilities.
(8) Nothing in this subsection (b) shall restrict the sale
of the conversion component of such uranium hexafluroide.
Material sold pursuant to paragraph 5 shall not be
swapped, exchanged or loaned.
(9) The Secretary of Commerce shall have responsibil-
ity for the administration and enforcement of the limita-
tions set forth in this subsection. The Secretary of Com-
merce may require any person to provide any certifications,
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information, or take any action that may be necessary to
enforce these limitations. The U.S. Customs Service shall
maintain and provide any information required by the Sec-
retary of Commerce and shall take any action requested by
the Secretary of Commerce which is necessary for the ad-
ministration and enforcement of the uranium delivery limi-
tations 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 ura-
nium delivered under the Russian HEU Agreement is hav-
ing on the domestic uranium mining, conversion, and en-
richment industries, and the operation of the gaseous diffu-
sion plants. Such report shall include a description of ac-
tions taken or proposed to be taken by the President to pre-
vent or mitigate any material adverse impact on such in-
dustries 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 Sec-
retary shall transfer to the Corporation without charge up
to 50 metric tons of enriched uranium and up to 7,000 met-
ric tons of natural uranium from the Department of Ener-
gy’s stockpile, subject to the restrictions in subsection (c)(2).
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(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 subsection or more than 4 million 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 trans-
fers authorized under subsections (c) and (e), the Secretary
may, from time to time, sell natural and low-enriched ura-
nium (including low-enriched uranium derived from highly
enriched uranium) from the Department of Energy’s stock-
pile.
(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 necessary to national security needs,
(B) the Secretary determines that the sale of the
material will not have an adverse material impact on
the domestic uranium mining, conversion, or enrich-
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ment industry, taking into account the sales of ura-
nium 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 sub-
section (d)(2), the Secretary may transfer or sell enriched
uranium—
(1) to a Federal agency if the material is trans-
ferred 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 determined 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 subtitle shall
be read to modify the terms of the Russian HEU Agreement.
SEC. 5013. 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—
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(A) 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 the
gaseous diffusion plants, or
(B) any person licensed by the Nuclear Regu-
latory Commission to operate a uranium enrichment
facility under sections 53, 63, and 193 of the Atomic
Energy Act of 1954 (42 U.S.C. 2073, 2093, and
2243).
(2) Except as provided in paragraph (3), the generator
shall reimburse the Secretary for the disposal of low-level
radioactive waste pursuant to paragraph (1) in an amount
equal to the Secretary’s costs, including a pro rata share
of any capital costs, but in no event more than an amount
equal to that which would be charged by commercial, State,
regional, or interstate compact entities for disposal of such
waste.
(3) In the event depleted uranium were ultimately de-
termined to be low-level radioactive waste, the generator
shall reimburse the Secretary for the disposal of depleted
uranium pursuant to paragraph (1) in an amount equal
to the Secretary’s costs, including a pro rata share of any
capital costs.
(b) AGREEMENTS WITH OTHER PERSONS.—The gen-
erator may also enter into agreements for the disposal of
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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.
(c) STATE
OR
INTERSTATE
COMPACTS.—Notwith-
standing any other provision of law, no State or interstate
compact shall be liable for the treatment, storage, or dis-
posal of any low-level radioactive waste (including mixed
waste) attributable to the operation, decontamination, and
decommissioning of any uranium enrichment facility.
SEC. 5014. AVLIS.
(a) EXCLUSIVE RIGHT TO COMMERCIALIZE.—The
Corporation shall have the exclusive commercial right to de-
ploy and use any AVLIS patents, processes, and technical
information owned or controlled by the Government, upon
completion of a royalty agreement with the Secretary.
(b) TRANSFER OF RELATED PROPERTY TO CORPORA-
TION.—
(1) IN GENERAL.—To the extent requested by the
Corporation and subject to the requirements of the
Atomic Energy Act of 1954, the President shall trans-
fer 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 Sec-
retary that is directly related to and materially useful
in the performance of the Corporation’s purposes re-
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garding AVLIS and alternative technologies for ura-
nium enrichment, including—
(A) facilities, equipment, and materials for
research, development, and demonstration activi-
ties; and
(B) all other facilities, equipment, mate-
rials, processes, patents, technical information of
any kind, contracts, agreements, and leases.
(2) EXCEPTION.—Facilities, real estate, improve-
ments, and equipment related to the gaseous diffusion,
and gas centrifuge, uranium enrichment programs of
the Secretary shall not transfer 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 in-
volving 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 off-
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set any payments, awards, settlements, or judgments under
this subsection.
SEC. 5015. GASEOUS DIFFUSION TECHNOLOGY.
(a) TRANSFER OF RIGHTS.—The Corporation shall
have the exclusive commercial rights for both uranium en-
richment and non-uranium enrichment uses of any patents,
patent applications, trade secrets, and other technical infor-
mation related to the gaseous diffusion technology owned
or controlled by the Department of Energy, or by the United
States but under control or custody of the Department of
Energy. The Corporation shall enter into an exclusive li-
censing agreement with the Department of Energy provid-
ing for—
(1) the payment of royalties of 3 percent of the
gross, pre-tax revenues realized by the Corporation
from its non-uranium enrichment commercial uses of
such patents, patent applications, trade secrets, and
other technical information,
(2) the reduction of such royalties to offset any
payments, awards, settlements, or judgments rendered
against the Corporation in its deployment or licens-
ing of the exclusive commercial rights under this sec-
tion, and
(3) the reservation of a non-exclusive, royalty-
free right to the United States Government to use
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such patents, patent applications, trade secrets, and
other technical information solely for Governmental
purposes.
(b) IMPROVEMENTS.—New patents, trade secrets, and
other technical information developed for commercial appli-
cations that derive from the gaseous diffusion technology
initially licensed by the Corporation shall be at the Cor-
poration’s expense and shall be free from royalties to the
Department of Energy.
SEC. 5016. APPLICATION OF CERTAIN LAWS.
(a) OSHA.—(1) As of the privatization date, the pri-
vate corporation 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 Occu-
pational Safety and Health Administration shall, within
90 days after the enactment of this subtitle, enter into a
memorandum of agreement to govern the exercise of their
authority over occupational safety and health hazards at
the gaseous diffusion plants, including inspection, inves-
tigation, enforcement, and rulemaking relating to such haz-
ards.
(b) ANTITRUST LAWS.—For purposes of the antitrust
laws, the performance by the private corporation of a
‘‘matched import’’ contract under the Suspension Agree-
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ment shall be considered to have occurred prior to the pri-
vatization date, if at the time of privatization, such con-
tract had been agreed to by the parties in all material terms
and confirmed by the Secretary of Commerce under the Sus-
pension Agreement.
(c) ENERGY REORGANIZATION ACT REQUIREMENTS.—
(1) The private corporation and its contractors shall be sub-
ject to the provisions of section 211 of the Energy Reorga-
nization 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 Reor-
ganization Act of 1974 (42 U.S.C. 5846) shall apply to the
directors and officers of the private corporation.
SEC. 5017. AMENDMENTS TO THE ATOMIC ENERGY ACT.
(a) REPEAL.—(1) Chapters 22 through 26 of the Atom-
ic Energy Act of 1954 (42 U.S.C. 1201–1608) 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 sec-
tions 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 strik-
ing ‘‘or the construction and operation of a uranium en-
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richment facility using Atomic Vapor Laser Isotope Sepa-
ration 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 compli-
ance may be issued to the United States Enrichment Cor-
poration or its successor under section 53, 63, 193, or 1701,
if in the opinion of the Commission, the issuance of such
a license or certificate of compliance—
‘‘(1) would be inimical to the common defense
and security of the United States; or
‘‘(2) would be inimical to the maintenance of a
reliable and economical domestic source of enrichment
services because of the nature and extent of the owner-
ship, control, or domination of the Corporation by a
foreign corporation or a foreign government or any
other relevant factors or circumstances.’’.
(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 COMPLIANCE.—The Corporation shall apply to the
Nuclear Regulatory Commission for a certificate of
compliance under paragraph (1) periodically, as de-
termined by the Commission, but not less than every
5 years. The Commission shall review any such appli-
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cation and any determination made under subsection
(b)(2) shall be based on the results of any such re-
view.’’.
(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 ‘‘in-
cluding’’, and
(2) by striking ‘‘sections 53 and 63’’ and insert-
ing ‘‘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 con-
struction and operating license.
‘‘(3) Any final order establishing by regulation
standards to govern the Department of Energy’s gase-
ous diffusion uranium enrichment plants, including
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any such facilities leased to a corporation established
under the USEC Privatization Act.
‘‘(4) Any final determination relating to whether
the gaseous diffusion plants, including any such fa-
cilities leased to a corporation established under the
USEC Privatization Act, are in compliance with the
Commission’s standards governing the gaseous diffu-
sion 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 provi-
sion of section 53, 57, 62, 63, 81, 82, 101, 103, 104,
107, 109, or 1701’’; and
(2) by striking ‘‘any license issued thereunder’’
and inserting: ‘‘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.
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SEC. 5018. 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).
(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 adding at the end ‘‘or its successor.’’.
Subtitle B—Department of the
Interior Conveyances
SEC. 5101. SHORT TITLE.
This subtitle may be cited as the ‘‘Helium Act of
1995’’.
SEC. 5102. AMENDMENT OF HELIUM ACT.
Except as otherwise expressly provided, whenever in
this part an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other 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. 5103. 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 FED-
ERAL LANDS.—
‘‘(1) IN
GENERAL.—The Secretary may enter
into agreements with private parties for the recovery
and disposal of helium on Federal lands upon such
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terms and conditions as the Secretary deems fair, rea-
sonable, and necessary.
‘‘(2) LEASEHOLD RIGHTS.—The Secretary may
grant leasehold 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 agreement for recovery and disposal
of helium.
‘‘(4) REGULATIONS.—Agreements under para-
graph (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 ex-
istence prior to the date of the agreement.
‘‘(6) TERMS
AND
CONDITIONS.—An agreement
under paragraph (1) (and any extension or renewal
of an agreement) shall contain such terms and condi-
tions 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 Fed-
eral lands in existence on the date of enactment of the
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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 ac-
cordance with this Act.
‘‘SEC. 4. STORAGE, TRANSPORTATION, AND WITHDRAWAL
OF CRUDE HELIUM.
‘‘(a) 
STORAGE, 
TRANSPORTATION
AND
WITH-
DRAWAL.—The Secretary may store, transport and with-
draw crude helium and maintain 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 18 months after the cessation of activi-
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ties referred to in section (b) of this section, the Sec-
retary shall designate as excess property and dispose
of all facilities, equipment, and other real and per-
sonal 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 disposal (including costs associated with termi-
nation of personnel) and with the cessation of activi-
ties 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 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
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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 en-
tered 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 enact-
ment of the Helium Act of 1995 shall remain in force
and effect until the date on which the refining oper-
ations cease, as described in subsection (b).
‘‘(2) COSTS.—Any costs associated with the ter-
mination of contracts described in paragraph (1)
shall be paid from the helium production fund estab-
lished under section 6(f).
‘‘SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITH-
DRAWAL.
‘‘(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 Secretary for the full costs of providing such
storage, transportation, and withdrawal.
‘‘(b) TREATMENT.—All fees received by the Secretary
under subsection (a) shall be treated as moneys received
under this Act for purposes of section 6(f).’’.
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SEC. 5104. 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 determines, 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 pro-
vided in this subsection’’ and all that follows through
the end of the subsection and inserting ‘‘all funds re-
quired to be repaid to the United States as of October
1, 1994 under this section (referred to in this sub-
section 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—
‘‘(i) dividing the outstanding amount of
such repayable amounts by the volume (in mil-
lion cubic feet) of crude helium owned by the
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United States and stored in the Bureau of Mines
Cliffside Field at the time of the sale concerned,
and
‘‘(ii) adjusting the amount determined
under paragraph (1) by the Consumer Price
Index for years beginning after December 31,
1994.’’.
(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 and credited against the amounts
required to be repaid to the Treasury under subsection (c).’’.
(e) Subsection 6(e) is repealed.
(f) Subsection (f) is amended—
(A) by striking ‘‘(f)’’ and inserting ‘‘(e)(1)’’;
and
(B) 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 nec-
essary to carry out this Act during such fiscal year) shall
be paid to the Treasury and credited as provided in para-
graph (1).
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‘‘(B) On repayment of all amounts referred to in sub-
section (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. 5105. 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 Unit-
ed States in such amounts as may be necessary to dis-
pose of all such helium reserves in excess of
600,000,000 cubic feet by January 1, 2015.
‘‘(2) TIMES OF SALE.—The sales shall be at such
times during each year and in such lots as the Sec-
retary determines, in consultation with the helium in-
dustry, to be necessary to carry out this subsection
with minimum market disruption.
‘‘(3) PRICE.—The price for all sales under para-
graph (1), as determined by the Secretary in con-
sultation 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).
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‘‘(b) DISCOVERY OF ADDITIONAL RESERVES.—The dis-
covery of additional helium reserves shall not affect the duty
of the Secretary to make sales of helium under subsection
(a).’’.
SEC. 5106. REPEAL OF AUTHORITY TO BORROW.
Sections 12 and 15 are repealed.
Subtitle C—Arctic Coastal Plain
Leasing and Revenue Act
SEC. 5201. SHORT TITLE.
This subtitle may be cited as the ‘‘Arctic Coastal Plain
Leasing and Revenue Act of 1995’’.
SEC. 5202. PURPOSE AND POLICY.
The Congress hereby declares that it is the purpose and
policy of this subtitle to authorize competitive oil and gas
leasing and development to proceed on the Coastal Plain
in a manner consistent with protection of the environment,
maintenance of fish and wildlife and their habitat, and the
interests of the area’s subsistence users, and in a manner
that will reduce the Federal deficit by an estimated $1.3
billion over the next seven years.
SEC. 5203. DEFINITIONS.
When used in this subtitle 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
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1002(b) of the Alaska National Interest Lands Con-
servation Act of 1980 (16 U.S.C. 3142(b)(1)) compris-
ing approximately 1,549,000 ACRES acres; and
(2) ‘‘Secretary’’ means the Secretary of the Inte-
rior or the Secretary’s designee.
SEC. 5204. LEASING PROGRAM FOR LANDS WITHIN THE
COASTAL PLAIN.
(a) AUTHORIZATION.—The Congress hereby authorizes
and directs the Secretary and other appropriate Federal of-
ficers and agencies to take such actions as are necessary
to establish and implement a competitive oil and gas leas-
ing 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 no
further findings or decisions shall be required to implement
this authorization. The Secretary shall administer the pro-
visions of this subtitle through regulations, lease terms, con-
ditions, restrictions, prohibitions, stipulations and other
provisions that ensure the oil and gas exploration, develop-
ment, and production activities on the Coastal Plain will
result in no significant adverse effect on fish and wildlife,
their habitat, and the environment, and shall require the
application of the best commercially available technology
for oil and gas exploration, development, and production,
on all new exploration, development, and production oper-
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ations, 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 con-
tained in section 1003 of the Alaska National Interest
Lands Conservation Act of 1980 (16 U.S.C. 3143) are here-
by repealed.
(c) SOLE AUTHORITY.—This subtitle shall be the sole
authority for leasing on the Coastal Plain.
(d) FEDERAL LAND.—The Coastal Plain shall be con-
sidered ‘‘Federal land’’ for the purposes of the Federal Oil
and Gas Royalty Management Act of 1982.
SEC. 5205. 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 subtitle, including
rules and regulations relating to protection of the fish and
wildlife, their habitat, and the environment of the Coastal
Plain. Such rules and regulations shall be promulgated
within eighteen months after the date of enactment of this
subtitle and shall, as of their effective date, apply to all
operations conducted under a lease issued or maintained
under the provisions of this subtitle and all operations on
the Coastal Plain related to the leasing, exploration, devel-
opment and production of oil and gas.
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(b) REVISION OF REGULATIONS.—The Secretary shall
periodically review and, if appropriate, revise the rules and
regulations issued under subsection (a) of this section to re-
flect any significant biological, environmental, or engineer-
ing data which come to the Secretary’s attention.
SEC. 5206. ADEQUACY OF THE DEPARTMENT OF THE INTE-
RIOR’S LEGISLATIVE ENVIRONMENTAL IM-
PACT STATEMENT.
The ‘‘Final Legislative Environmental Impact State-
ment’’ (April 1987) on the Coastal Plain prepared pursu-
ant 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 Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)) is hereby found by the Con-
gress to be adequate to satisfy the legal requirements under
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 a
leasing program authorized by this subtitle and to conduct
the first lease sale authorized by this subtitle.
SEC. 5207. LEASE SALES.
(a) LEASE SALES.—Lands may be leased pursuant to
the provisions of this subtitle to any person qualified to ob-
tain a lease for deposits of oil and gas under the Mineral
Leasing Act, as amended (30 U.S.C. 181).
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(b) PROCEDURES.—The Secretary shall, by regulation,
establish procedures for—
(1) receipt and consideration of sealed nomina-
tions for any area in the Coastal Plain for inclusion
in, or exclusion (as provided in subsection (d)) from,
a lease sale; and
(2) public notice of and comment on designation
of areas to be included in, or excluded per subsection
(d) 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 nomination process provided for in sub-
section (b) of this section. For the first lease sale, the Sec-
retary shall offer for lease those acres receiving the greatest
number of nominations, but not to exceed a total of three
hundred thousand acres. If the total acreage nominated is
less than three 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. Thereafter, no more than three hundred
thousand acres of the Coastal Plain may be leased in any
one lease sale. The initial lease sale shall be held within
twenty-four months of the date of enactment of this subtitle.
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The second lease sale shall be held twenty-four months after
the initial sale, with additional sales conducted every twen-
ty-four months thereafter so long as sufficient interest in
development exists to warrant, in the Secretary’s judgment,
the conduct of such sales.
(d) SPECIAL AREAS.—The Secretary, after consulta-
tion with the State of Alaska, City of Kaktovik, and the
North Slope Borough, is authorized to designate up to a
total of 60,000 acres of the Coastal Plain as Special Areas
and close it to leasing if the Secretary determines that these
lands are of such unique character and interest so as to
require special management and regulatory protection. The
Secretary shall notify the Committee on Energy and Natu-
ral Resources of the Senate and the Committee on Resources
of the House of Representatives ninety days in advance of
making such designations. The Secretary may permit leas-
ing of all or portions of any lands within the Coastal Plain
designated as Special Areas by setting lease terms that limit
or condition surface use and occupancy by lessees of such
lands but permit the use of horizontal drilling technology
from sites on leases located outside the designated Special
Areas.
SEC. 5208. GRANT OF LEASES BY THE SECRETARY.
(a) IN GENERAL.—The Secretary is authorized to
grant to the highest responsible qualified bidder by sealed
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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 production re-
moved 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 Fed-
eral 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
shall advise the Secretary with respect to such review, in-
cluding 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 inconsist-
ent with the antitrust laws.
(c) SUBSEQUENT TRANSFERS.—No lease issued under
this subtitle may be sold, exchanged, assigned, or otherwise
transferred except with the approval of the Secretary. Prior
to any such approval the Secretary shall consult with, and
give due consideration to the views of, the Attorney General.
(d) IMMUNITY.—Nothing in this subtitle shall be
deemed to convey to any person, association, corporation,
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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 ‘‘anti-
trust investigation’’ 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. 5209. LEASE TERMS AND CONDITIONS.
An oil or gas lease issued pursuant to this subtitle
shall—
(1) be for a tract consisting of a compact area
not to exceed five thousand seven hundred sixty acres,
or nine surveyed 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 pro-
duced in 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 5208 of this subtitle;
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(4) require that exploration activities pursuant
to any lease issued or maintained under this subtitle
shall be conducted in accordance with an exploration
plan or a revision of such plan approved by the Sec-
retary;
(5) require that all development and production
pursuant to a lease issued or maintained pursuant to
this subtitle shall be conducted in accordance with a
development and production plan approved by the
Secretary;
(6) require posting of bond as required by section
5210 of this subtitle;
(7) forbid the flaring of natural gas from any
well unless the Secretary finds that such flaring is
necessary to alleviate a temporary emergency situa-
tion or to conduct testing or work-over operations;
(8) contain such rental and other provisions as
the Secretary may prescribe at the time of offering the
area for lease;
(9) provide that the Secretary may direct or as-
sent to the suspension of operations and production
under any lease granted under the terms of this sub-
title in the interest of conservation of the resource or
where there is no available system to transport the re-
source. If such a suspension is directed or assented to
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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 subtitle, or of any applicable provi-
sion of Federal or State environmental law, or of the
lease, or of any regulation issued under this subtitle,
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 pro-
ducing lease fails to comply with any of the provi-
sions of this subtitle, or of any applicable provision
of Federal or State environmental law, or of the lease,
or of any regulation issued under this subtitle, 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 subtitle;
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(12) provide that cancellation of a lease under
this subtitle shall in no way release the owner of the
lease from the obligation to provide for reclamation of
the lease site;
(13) require that no lease issued under the au-
thority of this subtitle shall be assigned or sublet, ex-
cept with the consent of the Secretary;
(14) allow the lessee, at the discretion of the Sec-
retary, to make written relinquishment of all rights
under any lease issued pursuant to this subtitle, and
the Secretary shall accept the relinquishment by the
lessee of any lease issued under this subtitle where
there has not been surface disturbance on the lands
covered by the lease;
(15) 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 cor-
relative 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
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enter into such agreements as are necessary or appro-
priate for the protection of the United States against
drainage;
(16) require that the holder of a lease or leases
on lands within the Coastal Plain shall be fully re-
sponsible and liable for the reclamation of lands with-
in the Coastal Plain and any other Federal lands ad-
versely affected in connection with exploration, devel-
opment, production or transportation activities 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;
(17) provide that the holder of a lease may not
delegate or convey, by contract or otherwise, the rec-
lamation responsibility and liability to another party
without the express written approval of the Secretary;
(18) provide that the standard of reclamation for
lands required to be reclaimed under this subtitle be,
as nearly as practicable, a condition capable of sup-
porting the uses which the lands were capable of sup-
porting prior to any exploration, development, or pro-
duction activities, or upon application by the lessee,
to a higher or better use as approved by the Secretary;
(19) contain the terms and conditions relating to
protection of fish and wildlife, their habitat, and the
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environment, as required by section 5204 (a) of this
subtitle; and
(20) contain such other provisions as the Sec-
retary determines necessary to ensure compliance
with the provisions of this subtitle and the regulations
issued thereunder.
SEC. 5210. BONDING REQUIREMENTS TO ENSURE FINAN-
CIAL RESPONSIBILITY 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 established 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 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 arrange-
ment shall be in an amount—
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(1) to be determined by the Secretary to provide
for reclamation of the lease site in accordance with an
approved or revised exploration or development and
production plan; plus
(2) an amount set by the Secretary consistent
with the type of operations proposed, to provide the
means for rapid and effective cleanup, and to mini-
mize 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 ex-
ploration or development and production plan is revised,
the Secretary may adjust the amount of the bond, surety,
or other financial arrangement to conform to such modified
plan.
(d) DURATION.—The responsibility and liability of the
lessee and its surety under the bond, surety, or other finan-
cial arrangement shall continue until such time as the Sec-
retary determines that there has been compliance with the
terms and conditions of the lease and all applicable law.
(e) TERMINATION.—Within sixty days after determin-
ing that there has been compliance with the terms and con-
ditions 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
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bond, surety, or other financial arrangement has been ter-
minated.
SEC. 5211. OIL AND GAS INFORMATION.
(a) IN GENERAL.—(1) Any lessee or permittee conduct-
ing any exploration for, or development or production of,
oil or gas pursuant to this subtitle shall provide the Sec-
retary access to all data and information from any lease
granted pursuant to this subtitle (including 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 pre-
scribe.
(2) If processed and analyzed information provided
pursuant to paragraph (1) of this subsection is provided
in good faith by the lessee or permittee, such lessee or per-
mittee shall not be responsible for any consequence of the
use or of reliance upon such processed and analyzed infor-
mation.
(3) Whenever any data or information is provided to
the Secretary, pursuant to paragraph (1) of this sub-
section—
(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
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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 re-
quest, the Secretary shall pay the reasonable cost of
processing and reproducing such data and informa-
tion.
(b) REGULATIONS.—The Secretary shall prescribe reg-
ulations 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 infor-
mation.
SEC. 5212. EXPEDITED JUDICIAL REVIEW.
Any complaint seeking judicial review of an action of
the Secretary in promulgating any regulation under this
subtitle may be filed only in the United States Court of
Appeals for the District of Columbia, and such complaint
shall be filed within ninety days from the date of such pro-
mulgation, 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
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the grounds for the complaint. Any complaint seeking judi-
cial review of any other actions of the Secretary under this
subtitle 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 com-
plainant knew or reasonably should have known of the
grounds for the complaint. 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. 5213. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
Notwithstanding title XI of the Alaska National Inter-
est Lands Conservation Act of 1980 (16 U.S.C. 3161 et
seq.), the Secretary is authorized and directed to grant, in
accordance with the provisions 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, their
habitat, and the environment of the Coastal Plain. Such
terms and conditions shall include requirements that facili-
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ties be sited or modified so as to avoid unnecessary duplica-
tion of roads and pipelines. The regulations issued pursu-
ant to this subtitle shall include provisions granting of
rights-of-way across the Coastal Plain.
SEC. 5214. ENFORCEMENT OF SAFETY AND ENVIRON-
MENTAL REGULATIONS TO ENSURE COMPLI-
ANCE WITH TERMS AND CONDITIONS OF
LEASE.
(a) RESPONSIBILITY OF THE SECRETARY.—The Sec-
retary shall diligently enforce all regulations, lease terms,
conditions, restrictions, prohibitions, and stipulations pro-
mulgated pursuant to this subtitle.
(b) RESPONSIBILITY OF HOLDERS OF LEASE.—It shall
be the responsibility of any holder of a lease under this sub-
title to—
(1) maintain all operations within such lease
area in compliance with regulations intended to pro-
tect persons and property on, and fish and wildlife,
their habitat, and the environment of, the Coastal
Plain; and
(2) allow prompt access at the site of any oper-
ations subject to regulation under this subtitle to any
appropriate Federal or State inspector, and to pro-
vide such documents and records which are pertinent
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to occupational or public health, safety, or environ-
mental protection, as may be requested.
(c) ON-SITE INSPECTION.—The Secretary shall pro-
mulgate regulations 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 subtitle or
conditions contained in any lease issued pursuant to
this subtitle to assure compliance with such environ-
mental or safety regulations or conditions; and
(2) periodic onsite inspection by the Secretary at
least once a year without advance notice to the opera-
tor of such facility to assure compliance with all envi-
ronmental or safety regulations.
SEC. 5215. NEW REVENUES.
(a) DISTRIBUTION OF REVENUES.—Notwithstanding
any other provision of law, all revenues received by the Fed-
eral Government from competitive bids, sales, bonuses, roy-
alties, rents, fees, interest or other income derived from the
leasing of oil and gas resources within the Coastal Plain
shall be deposited into the Treasury of the United States:
Provided, That 50 per centum of all such revenues shall
be paid by the Secretary of the Treasury semiannually, on
March 30th and on September 30th of each year, to the
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State of Alaska: Provided further, That the Secretary of the
Treasury shall monitor the total amount of bonus bid reve-
nue deposited into the Treasury from oil and gas leases is-
sued under the authority of this subtitle. All bonus bid reve-
nue deposited in the Treasury in excess of $2,600,000,000
shall be distributed as follows: 50 per centum to the State
of Alaska in the manner provided in this subsection and
50 per centum into a special fund established in the Treas-
ury of the United States known as the ‘‘National Park and
Wildlife Refuge Renewal Fund’’ (Renewal Fund).
(b) USE OF RENEWAL FUND.—Funds from the Re-
newal 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 may
be expended by the Secretary for infrastructure needs at
units of the National Park and Wildlife Refuge Systems,
including but not limited to facility refurbishment, repair
and replacement, interpretive media and exhibit repair and
replacement and infrastructure projects associated with
park and wildlife refuge resource protection: Provided, That
such amounts shall remain available until expended, and
that the Secretary shall develop procedures for the use of
the Renewal Fund that ensure accountability and dem-
onstrated results. Such procedures shall not take effect until
90 days after transmittal to the Committees on Energy and
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Natural Resources and Environment and Public Works of
the Senate and the appropriate Committees of the House
of Representatives: Provided further, That beginning the
first full fiscal year after funds are deposited in the Renewal
Fund, the Secretary shall submit an annual report to the
Congress, on a unit-by-unit basis, detailing the expendi-
tures of such receipts, and that any revenues made available
pursuant to this section shall be in addition to funds appro-
priated in the preceding fiscal year for the Park Service
and Fish and Wildlife Service and shall not result in a
reduction or offset of such appropriated funds.
Subtitle D—Park Entrance Fees
SEC. 5300. FEES.
(a) ADMISSION FEES.—Section 4(a) of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–
6a(a)) is amended:
(1) By deleting ‘‘fee-free travel areas’’ and ‘‘life-
time admission permit’’ from the subsection.
(2) By striking ‘‘$25’’ in the first sentence of
paragraph (1)(a)(i), and inserting ‘‘$50’’.
(3) By adding at the end of clause (ii) of para-
graph (1)(A) the following: ‘‘Such receipts shall be
made available, subject to appropriation, for author-
ized resource protection, rehabilitation and conserva-
tion projects as provided for by subsection (I), includ-
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ing projects to be carried out by the Public Land
Corps or any other conservation corps pursuant to the
Youth Conservation Corps Act of 1970 (16 U.S.C.
1701 and following), or other related programs or au-
thorities, on lands administered by the Secretary of
the Interior and the Secretary of Agriculture.’’.
(4) By striking ‘‘$15’’ in paragraph (a)(1)(B),
and inserting ‘‘$25’’.
(5) By striking the fifth and sixth sentences in
paragraph (a)(2), and by amending the fourth sen-
tence to read as follows: ‘‘The fee for a single-visit
permit at any designated area shall be collected on a
per person basis, not to exceed $6 per person, includ-
ing for those entering by private, noncommercial vehi-
cle.’’.
(6) By inserting the word ‘‘Great’’ before
‘‘Smoky’’ in the third sentence of paragraph (a)(3),
and by striking the last sentence.
(7) By striking the second sentence in paragraph
(a)(4), in its entirety and inserting: ‘‘Such permit
shall be nontransferable, shall be issued for a one-time
charge of $10, and shall entitle the permittee to free
admission into any area designated pursuant to this
subsection.’’.
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(8) By amending the third sentence in para-
graph (a)(4), to read as follows: ‘‘No fees of any kind
shall be collected from any persons who have a right
of access for hunting or fishing privileges under a spe-
cific provision of law or treaty or who are engaged
in the conduct of official Federal, State, or local gov-
ernment business.’’.
(9) By striking paragraph (a)(5), in its entirety
and inserting: ‘‘The Secretary of the Interior and the
Secretary of Agriculture shall establish procedures
providing for the issuance of a lifetime admission
permit to any citizen of, or person legally domiciled
in, the United States, if such citizen or person applies
for such permit and is permanently disabled. Such
procedures shall assure that such permit shall be is-
sued only to persons who have been medically deter-
mined to be permanently disabled. Such permit shall
be nontransferable, shall be issued without charge,
and shall entitle the permittee and one accompanying
individual to general admission into any area des-
ignated pursuant to this subsection, notwithstanding
the method of travel.’’.
(10) By striking subparagraph (a)(6)(A), in its
entirety and inserting: ‘‘No later than 30 days after
the enactment date of this sentence, the Secretary of
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the Interior shall submit to the Committee on Energy
and Natural Resources of the United States Senate
and the Committee on Resources of the House of Rep-
resentatives a report on the admission fees proposed
to be charged at units of the National Park System.
The report shall include a list of units of the National
Park System and the admission fee proposed to be
charged at each unit. The Secretary of the Interior
shall also identify areas where such fees are author-
ized but not collected, including an explanation of the
reasons that such fees are not collected.’’.
(11) By striking paragraph (a)(9) in its entirety
and by renumbering current paragraph (10) as ‘‘(9)’’.
(12) By striking all but the last sentence in
paragraph (a)(11), and renumbering the remaining
sentence as ‘‘(a)(10)’’.
(13) By renumbering paragraph (a)(12) as
‘‘(a)(11)’’.
(b) RECREATION FEES.—Section 4(b) of the Land and
Water Conservation Fund Act of 1965; 16 U.S.C. 460l–
6a(b)), is amended:
(1) By striking ‘‘fees for Golden Age Passport
permittees’’ from the heading.
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(2) By striking ‘‘personal collection of the fee by
an employee or agent of the Federal agency operating
the facility,’’.
(3) By striking ‘‘Any Golden Age Passport per-
mittee, or’’ and inserting ‘‘Any’’.
(c) CRITERIA, POSTING AND UNIFORMITY OF FEES.—
Section 4(d) of the Land and Water Conservation Fund Act
of 1965 (16 U.S.C. 460l–6a(d)) is amended by striking from
the first sentence, ‘‘recreation fees charged by non-Federal
public agencies,’’ and inserting: ‘‘fees charged by other pub-
lic and private entities,’’.
(d) PENALTY.—Section 4(e) of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l–6a(e)) is
amended by deleting ‘‘of not more than $100.’’ and insert-
ing: ‘‘as provided by law.’’.
(e) TECHNICAL AMENDMENTS.—Section 4(h) of the
Land and Water Conservation Fund Act of 1965 (16 U.S.C.
460l–6a(h)), is amended—
(1) by striking ‘‘Bureau of Outdoor Recreation’’
and inserting: ‘‘National Park Service’’;
(2) by striking ‘‘Natural’’ in the phrase ‘‘Com-
mittee on Natural Resources of the House of Rep-
resentatives’’; and
(3) by striking ‘‘Bureau’’ and inserting: ‘‘Na-
tional Park Service’’;
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(h) CHARGES FOR TRANSPORTATION PROVIDED BY
THE NATIONAL PARK SERVICE.—Section 4(l)(1) of the
Land and Water Conservation Fund Act of 1965 (16 U.S.C.
460l–6a(1)) is amended—
(1) by striking the word ‘‘viewing’’ from the sec-
tion heading and inserting ‘‘visiting’’, and
(2) by striking the word ‘‘view’’ from the first
sentence of subparagraph (1) and inserting ‘‘visit’’.
(i) COMMERCIAL TOUR USE FEES.—Section 4(n) of
the Land and Water Conservation Fund Act of 1965 (16
U.S.C. 460l–6a(n)) is further amended—
(1) By striking the first sentence of subsection
(n)(1) and inserting: ‘‘In the case of each unit of the
National Park System for which an admission fee is
charged under this section, the Secretary of the Inte-
rior shall establish, by October 1, 1995, a commercial
tour use fee in lieu of a per person admission fee to
be imposed on each vehicle entering the unit for the
purpose of providing commercial tour services within
the unit.’’.
(2) By striking the period at the end of sub-
section (n)(3) and inserting: ‘‘with written notifica-
tion of such adjustments provided to commercial tour
operators twelve months in advance of implementa-
tion.’’.
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(j) FEES FOR SPECIAL USES.—Section 4 of the Land
and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–
6a)), is further amended by adding at the end the following:
‘‘(o) FEES
FOR
COMMERCIAL/NON-RECREATIONAL
USES.—The Secretary of the Interior shall establish reason-
able fees for uses of National Park System units that require
special arrangements, including permits. Such fees shall be
set at a level as the Secretary deems necessary to ensure
that the United States will receive fair market value for
such use, and shall, at a minimum, cover all costs of provid-
ing necessary services associated with such use, except that
at the Secretary’s discretion, the Secretary may waive or
reduce such fees in the case of any nonprofit organization
or any organization using an area within the National
Park System for educational purposes. That portion of such
fee which exceeds the cost of providing necessary services
associated with such use shall be deposited into the Park
Renewal Fund.’’.
(k) CONFORMING AMENDMENTS.—
(1) Section 3 of Public Law 70–805 (45 Stat.
1300), is amended by striking the last sentence.
(2) Section 5(e) of Public Law 87–657 (76 Stat.
540; 16 U.S.C. 459c–5), is repealed.
(3) Section 3(b) of Public Law 87–750 (76 Stat.
747; 16 U.S.C. 398e(b)) is repealed.
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(4) Section 4(e) of Public Law 92–589 (86 Stat.
1299; 16 U.S.C. 460bb–3), is amended by striking the
first sentence.
(5) Section 6(j) of Public Law 95–348 (92 Stat.
487; 16 U.S.C. 410dd(j)) is repealed.
(6) Section 207 of Public Law 96–199 (94 Stat.
77; 16 U.S.C. 410ff–6) is repealed.
(7) Section 106 of Public Law 96–287 (94 Stat.
600; 16 U.S.C. 410gg–5) is amended by striking the
last sentence.
(8) Section 204 of Public Law 96–287 (94 Stat.
601) is amended by striking the last sentence.
(9) Section 5 of Public Law 96–428 (94 Stat.
1843; 16 U.S.C. 461 note) is repealed.
(10) Public Law 100–55 (101 Stat. 371; U.S.C.
460l–6a note) is repealed.
SEC. 5301. CHALLENGE COST-SHARE AGREEMENTS.
The Secretary of the Interior is authorized to negotiate
and enter into challenge cost-share agreements with any
State or local government, public or private agency, organi-
zation, institution, corporation, individual, or other entity
for the purpose of sharing costs or services in carrying out
any authorized functions and responsibilities of the Sec-
retary with respect to any unit of the National Park System
(as defined in section 2(a) of the Act of August 8, 1953
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(16 U.S.C. 1c(a)), any affiliated area, or designated Na-
tional Scenic or Historic Trail.
SEC. 5302. COST RECOVERY FOR DAMAGE TO NATIONAL
PARK RESOURCES.
(a) DEFINITION OF PARK SYSTEM RESOURCE.—Sec-
tion 1 (d) of the National Park System Visitor Facilities
Fund Act (16 U.S.C. 19jj(d)) is amended to read as follows:
‘‘(d) ‘Park system resource’ means any living or
nonliving resource that is located within the boundaries of
a unit of the National Park System, except for resources
owned by a non-Federal entity.’’.
(b) DEFINITION OF MARINE OR AQUATIC PARK SYS-
TEM RESOURCE.—Section 1 of the National Park System
Visitor Facilities Fund Act (16 U.S.C. 19jj) is amended by
adding at the end the following:
‘‘(g) ‘Marine or aquatic park system resource’ means
any living or non-living resource that is located within or
is a living part of a marine or aquatic regimen within the
boundaries of a unit of the National Park System, except
for resources owned by a non-Federal entity.’’.
(c) LIABILITY IN REM.—Section 2(b) of the National
Park System Visitor Facilities Fund Act (16 U.S.C. 19jj–
1(b)) is amended by striking ‘‘any park’’ and inserting
‘‘any marine or aquatic park’’.
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SEC. 5303. SPECIAL ACCOUNT.
A special account is hereby established in the Treasury
of the United States that shall be called the Park Renewal
Fund (hereinafter referred to in this subtitle as ‘‘the fund’’).
SEC. 5304. COVERING OF FEES INTO PARK RENEWAL FUND.
Notwithstanding section 4(i) of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l–6a(i)), be-
ginning in fiscal year 1996, there shall be deposited into
the fund eighty percent of all revenues received from admis-
sion, recreation use, commercial tour use, and commercial/
non-recreational use fees collected by units of the National
Park System in excess of:
(1) $82,000,000 for fiscal year 1996;
(2) $85,000,000 for fiscal year 1997;
(3) $88,000,000 for fiscal year 1998;
(4) $91,000,000 for fiscal year 1999;
(5) $94,000,000 for fiscal year 2000;
(6) $97,000,000 for fiscal year 2001; and
(7) $100,000,000 for fiscal year 2002.
SEC. 5305. ALLOCATION AND USE OF FEES.
(a) ALLOCATION.—Beginning in fiscal year 1997, re-
ceipts in the fund from the previous fiscal year shall be
available to the Secretary without further appropriation
and shall be allocated as follows (except that all amounts
in excess of $20,000,000 in fiscal year 2003 and all
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amounts in fiscal year 2004 shall not be available for obli-
gation until fiscal year 2006):
(1) Seventy-five percent shall be allocated among
the units of the National Park System in the same
proportion as admission, recreation use, commercial
tour use and commercial/non-recreational use fees col-
lected from a specific unit bears to the total amount
of such fees collected from all units of the National
Park System for each fiscal year.
(2) Twenty-five percent shall be allocated among
the units of the National Park System on the basis
of need, as determined by the Secretary.
(b) USE.—Expenditures from the fund shall be used
solely for infrastructure and operational needs by units of
the National Park System. By January 1 of each year, the
Secretary shall provide to the Committee on Energy and
Natural Resources of the United States Senate and the
Committee on Resources of the House of Representatives a
list of proposed expenditures from the fund for each unit
for that fiscal year and a report detailing expenditures, by
unit, for the previous fiscal year.
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Subtitle E—Water Projects
SEC. 5400. AUTHORIZATION FOR PREPAYMENT OF CON-
STRUCTION CHARGES.
Subsection 213(a) of the Reclamation Reform Act of
1982 (96 Stat.1269, 43 U.S.C. 390mm(a)) is amended:
(a) By adding at the beginning:
‘‘Notwithstanding any provision of Reclamation law or
limitation 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 as-
sociated 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 con-
tract 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
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individual or district plans to use federally tax-exempt fi-
nancing for such prepayment.’’.
(b) By deleting ‘‘lands in a district’’ and inserting:
‘‘lands in a district, or lands owned or leased by a person’’.
(c) By deleting ‘‘obligation of a district’’ and inserting:
‘‘obligation of a district or a person’’.
(d) By deleting ‘‘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 obli-
gation and shall not be considered to be a new or supple-
mental benefit for the purposes of this act nor cause the
full cost pricing limitation of this act or the ownership lim-
itations contained in any provision of Federal reclamation
law to apply to the lands to which such capital costs
apply.’’.
SEC. 5401. CONFORMING AMENDMENT.
Subsection 213(c) of the Reclamation Reform Act of
1982 (43 U.S.C. 390mm(c)) is repealed.
SEC. 5410. HETCH HETCHY DAM.
Section 7 of the Act of December 13, 1913 (38 Stat.
242), is amended—
(1) By striking ‘‘pay the sum of $30,000’’ and
all that follows in the first sentence and inserting
‘‘pay an amount determined annually by the Sec-
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retary in accordance with the formula used by the
Federal Energy Regulatory Commission for applica-
tion to licenses of hydroelectric projects under the
Federal Power Act (16 U.S.C. 791 et seq.), provided
that, in no event shall such amount be less than
$597,000.00. Said amount to be paid on the first day
of July of each year.’’.
(2) By amending the second and third sentences
to read as follows: ‘‘These funds shall be placed in a
separate fund by the United States and, notwith-
standing any other provision of law, shall not be
available for obligation or expenditure until appro-
priated by Congress. The highest priority use of the
funds shall be for annual operation of Yosemite Na-
tional Park, with the remainder of any funds to be
used to fund operations of other national parks in the
State of California.’’.
SEC. 5420. COLLBRAN PROJECT.
(a) SHORT TITLE.—This section may be cited as the
‘‘Collbran Project Unit Conveyance Act’’.
(b) DEFINITIONS.—For purposes of this section:
(1) DISTRICTS.—The term ‘‘Districts’’ means the
Ute Water Conservancy District and the Collbran
Conservancy District (including their successors and
assigns).
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(2) FEDERAL
RECLAMATION
LAWS.—The term
‘‘Federal reclamation laws’’ means the Act of June
17, 1902, and Acts amendatory thereof or supple-
mentary 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 Reclamation Project, as constructed and op-
erated under the Act of July 3, 1952 (66 Stat. 325,
chapter 565), including all property, equipment, and
assets of or relating to the Project that are owned by
the United States, including—
(A) Vega Dam and Reservoir (but not in-
cluding recreation facilities owned by the United
States or the State of Colorado);
(B) Leon-Park Dams and Feeder Canal;
(C) Southside Canal;
(D) East Fork Diversion Dam and Feeder
Canal;
(E) Bonham-Cottonwood Pipeline;
(F) Snowcat Shed and Diesel Storage;
(G) Upper Molina Penstock and Power
Plant;
(H) Lower Molina Penstock and Power
Plant;
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(I) the diversion structure in the tailrace of
the Lower Molina Power Plant;
(J) all substations and switchyards;
(K) a perpetual, non-exclusive easement for
the use of easements or rights-of-way owned by
the United States on or across non-Federal lands
which are necessary for access to Project facili-
ties;
(L) a perpetual, non-exclusive easement on
and across National Forest lands for access to
existing Project facilities and access to and the
operation, use repair, and replacement of the ex-
isting storage reservoirs on the Grand Mesa
which are operated as a part of the Project;
(M) title to lands reasonably necessary for
all Project facilities except for those described in
subparagraphs (3)(K) and (3)(L);
(N) all permits and contract rights;
(O) all equipment, parts inventories, and
tools;
(P) all additions, replacements, betterments,
and appurtenances to any of the above; and
(Q) a copy of all data, plans designs, re-
ports, records, or other materials, whether in
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writing or in any form of electronic storage re-
lating specifically to the Project.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Interior.
(c) CONVEYANCE OF THE COLLBRAN PROJECT.—
(1) IN GENERAL.—The Secretary shall convey to
the Districts all right, title, and interest of the United
States in and to the Project, as described in this sec-
tion, by quitclaim deed and bill of sale, without war-
ranties, during the last quarter of fiscal year 2000,
subject only to the requirements of this section: Pro-
vided, That such conveyance shall reserve to the Unit-
ed 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
purposes such as grazing, mineral development and
logging: Provided further, That the United States
may allow for the continued public use and enjoy-
ment of such portions of the Project for recreational
activities and other public uses conducted as of the
date of enactment of this Act.
(2) PAYMENT.—
(A) IN GENERAL.—At the time of transfer,
the Districts shall pay to the United States
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$12,900,000 ($12,300,000 of which represents the
net present value of the outstanding repayment
obligations of the Districts), of which—
(i) $12,300,000 shall be deposited in
the general fund of the United States Treas-
ury; and
(ii) $600,000 shall be deposited in a
special account in the United States Treas-
ury 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 ex-
penditures associated with the Recovery Im-
plementation Program for Endangered Fish
Species in the Upper Colorado River Basin.
(B) SOURCE
OF
FUNDS.—Funds for the
payment to the extent of the amount specified in
the paragraph (1)(A) shall not be derived from
the issuance or sale, prior to the conveyance, of
State or local bonds the interest on which is ex-
empt from taxation under section 103 of the In-
ternal Revenue Code of 1986 (26 U.S.C. 103).
(3) OPERATION OF PROJECT.—
(A) IN GENERAL.—The Project shall be op-
erated and used by the Districts for a period of
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40 years after the date of enactment of this sec-
tion for the purposes for which the Project was
authorized under the Act of July 3, 1952 (66
Stat. 325, chapter 565).
(B) REQUIREMENTS.—During the 40-year
period described in paragraph (1)—
(i) the Districts shall annually submit
to the Secretary a plan for operation of the
Project, which plan shall—
(I) report on Project operations
for the previous year;
(II) provide a description of the
manner of Project operations antici-
pated for the forthcoming year; and
(III) certify that the Districts
have operated and will operate and
maintain the Project facilities in ac-
cordance with sound engineering prac-
tices; and
(ii) provide that, subject to subsection
(d), all electric power generated by oper-
ation of the Project shall be made available
to and be marketed by the Western Area
Power Administration (including its succes-
sors and assigns).
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(4) AGREEMENTS.—Conveyance of the Project
shall be subject to the agreements between the United
States and the State of Colorado dated August 22,
1994, and September 23, 1994, relating to the con-
struction 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.—
(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 facili-
ties (including recent operations in a peaking mode).
(2) POWER MARKETING.—
(A) UNDER
EXISTING
AGREEMENTS.—The
Districts shall be bound by the agreements be-
tween the Bureau of Reclamation and the West-
ern Area Power Administration in existence on
the date of enactment of this section, which pro-
vide 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 under the Post 1989 Operating Criteria,
until those agreements expire or are terminated.
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(B) 
AFTER
EXPIRATION
OF
EXISTING
AGREEMENT.—
(i) After the agreements described in
paragraph (1) expire or are terminated, the
Districts shall offer all power produced by
the power component of the Project to the
Western Area Power Administration or its
successors or assigns (‘‘Western’’), which, in
consultation with its affected preference cus-
tomers, shall have the first right to purchase
such power at the rates established in ac-
cordance with Subparagraph (ii) of this
paragraph. If Western declines to purchase
the power after consultation with its af-
fected 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 (‘‘SLCAIP preference cus-
tomers’’). Thereafter, such power may be
sold to any other party: Provided, however,
That no such sale may occur at rates less
than established in accordance with sub-
paragraph (ii) of this paragraph unless
such power is first offered at such lesser rate
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first to Western and then to its SLCAIP
preference customers.
(ii) The rate for power initially offered
to Western and its SLCAIP preference cus-
tomers under this paragraph shall not ex-
ceed that required to produce revenues suffi-
cient to provide for
(I) annual debt service and/or
recoupment of the cost of capital for
the amount specified in subsection
(c)(2) of this section, less the sum of
$220,000 (which is the net present
value of the outstanding repayment ob-
ligation of the Collbran Conservancy
District), and
(II) the cost of operation, mainte-
nance and replacement of the power
component of the Project.
(iii) Such costs and rate shall be deter-
mined in a manner consistent with the cur-
rent principles followed by the Secretary of
the Interior and by Western in its annual
power and repayment study.
(3) LICENSE.—The Districts are by this section
granted a license under the Federal Power Act (16
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U.S.C. 791a et seq.) for the operation of the Project
in accordance with the requirement of subsection
(c)(3) of this section, for a period of 40 years after
the date of conveyance of the Project, after which pe-
riod the license may be renewed in accordance with
applicable law.
(e) INAPPLICABILITY OF NEPA.—The conveyance of
the Project does not constitute a major Federal action with-
in the meaning of the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.), including any regulations
issued under such Act.
(f) INAPPLICABILITY OF PRIOR AGREEMENTS AND OF
FEDERAL RECLAMATION LAWS.—On conveyance of the
Project to the Districts—
(1) the Repayment Contract dated May 27,
1957, as amended April 12, 1962, between the
Collbran Conservancy District and the United States,
and the Contract for use of Project facilities for Di-
version of Water dated January 11, 1962, as amended
November 10, 1977, between the Ute Water Conser-
vancy District and the United States, shall be termi-
nated and of no further force or effect; and
(2) the Project shall no longer be subject to or
governed by the Federal reclamation laws.
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(g) DISTRICTS’ LIABILITY.—The Districts shall be lia-
ble for all acts or omissions relating to the operation and
use of the Project that occur subsequent to the conveyance.
Subtitle F—Federal Oil and Gas
Royalties
SEC. 5500. SHORT TITLE.
This subtitle may be cited as the ‘‘Federal Oil and Gas
Royalty Simplification and Fairness Act of 1995’’.
SEC. 5501. DEFINITIONS.
Section 3 of the Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1701 et seq.) is amended by
striking ‘‘and’’ at the end of paragraph (15), by striking
the period at the end of paragraph (16) and inserting a
semicolon, and by adding at the end the following:
‘‘(17) ‘adjustment’ means an amendment to a
previously filed report on an obligation, and any ad-
ditional payment or credit, if any, applicable thereto,
to rectify an underpayment or overpayment on a
lease;
‘‘(18) ‘administrative proceeding’ means any
agency process in which a demand, decision or order
issued by the Secretary is subject to appeal or has
been appealed;
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‘‘(19) ‘assessment’ means any fee or charge levied
or imposed by the Secretary or the United States
other than—
‘‘(A) the principal amount of any royalty,
minimum royalty, rental, bonus, Net profit share
or proceed of sale;
‘‘(B) any interest; or
‘‘(C) any civil or criminal penalty;
‘‘(20) ‘commence’ means—
‘‘(A) with respect to a judicial proceeding,
the service of a complaint, petition, counter-
claim, crossclaim, or other pleading seeking af-
firmative relief or seeking credit or recoupment;
or
‘‘(B) with respect to a demand, the receipt
by the Secretary or a lessee of the demand;
‘‘(21) ‘credit’ means the application of an over-
payment (in whole or in part) against an obligation
which has become due to discharge, cancel or reduce
the obligation;
‘‘(22) ‘demand’ means—
‘‘(A) an order to pay issued by the Sec-
retary; or
‘‘(B) a separate written request by a lessee
which asserts an obligation due the lessee, but
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does not mean any royalty or production report,
or any information contained therein, required
by the Secretary;
‘‘(23) ‘obligation’ means—
‘‘(A) any duty of the Secretary or the Unit-
ed States—
‘‘(i) to take oil or gas royalty in kind;
or
‘‘(ii) to pay, refund, offset, or credit
monies including but not limited to—
‘‘(I) the principal amount of any
royalty, minimum royalty, rental,
bonus, net profit share or proceed of
sale; or
‘‘(II) any interest;
‘‘(B) any duty of a lessee—
‘‘(i) to deliver oil or gas royalty in
kind; or
‘‘(ii) to pay, offset or credit monies in-
cluding but not limited to—
‘‘(I) the principal amount of any
royalty, minimum royalty, rental,
bonus, net profit share or proceed of
sale;
‘‘(II) any interest;
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‘‘(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 re-
lated to, the exploration, production and development
of oil or gas on Federal lands or the Outer Continen-
tal Shelf;
‘‘(24) ‘order to pay’ means a written order is-
sued by the Secretary or the United States which—
‘‘(A) asserts a definite and quantified obli-
gation due the Secretary or the United States;
and
‘‘(B) specifically identifies the obligation by
lease, production month and amount of such ob-
ligation 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 com-
munication or action by or on behalf of the Sec-
retary or the United States;
‘‘(25) ‘order to perform a restructured account-
ing’ means a written order issued by the Secretary
during a full and complete audit of a lessee to recal-
culate royalty due on an obligation based upon the
Secretary’s finding that the lessee has made identified
underpayments or overpayments which are dem-
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onstrated by the Secretary to be based upon repeated,
systemic reporting errors for a significant number of
leases for a significant number of reporting months
with the same type of error which constitutes a pat-
tern of violations and which are likely to result in ei-
ther a significant underpayment or overpayment. The
term ‘order to perform a restructured accounting’
shall not include any other communication or action
by or on behalf of the Secretary or the United States;
‘‘(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 production month that is in
excess of the royalties due for that month;
‘‘(27) ‘payment’ means satisfaction, in whole or
in part, of an obligation due the Secretary or the
United States;
‘‘(28) ‘penalty’ means a statutorily authorized
civil fine levied or imposed by the Secretary or the
United States for a violation of this Act, any mineral
leasing law, or a term or provision of a lease admin-
istered by the Secretary;
‘‘(29) ‘refund’ means the return of an overpay-
ment by the Secretary or the United States by the
drawing of funds from the United States Treasury;
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‘‘(30) ‘State concerned’ means, with respect to a
lease, a State which receives a portion of royalties
under this Act 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 instru-
mentality thereof, and the several States, the District
of Columbia, Puerto Rico, and the territories and pos-
sessions of the United States.’’.
SEC. 5502. LIMITATION PERIODS.
(a) IN GENERAL.—The Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.) is amend-
ed by adding after section 114 the following new section:
‘‘SEC. 115. LIMITATION PERIODS AND AGENCY ACTIONS.
‘‘(a) IN GENERAL.—A judicial proceeding or demand
which arises from, or relates to an obligation, shall be com-
menced within six years from the date on which the obliga-
tion becomes due and if not so commenced shall be barred,
except as otherwise provided by this section.
‘‘(b) OBLIGATION BECOMES DUE.—
‘‘(1) IN GENERAL.—For purposes of this Act, an
obligation becomes due when the right to enforce the
obligation is fixed.
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‘‘(2) ROYALTY OBLIGATIONS.—The right to en-
force the royalty obligation for a production month
for a lease is fixed for purposes of this Act on the last
day of the calendar month following the month in
which oil or gas is produced.
‘‘(c) TOLLING LIMITATIONS PERIOD.—The running of
the limitation period under subsection (a) shall not be sus-
pended, tolled, extended, or enlarged for any obligation for
any reason by any action, including an action by the Sec-
retary or the United States, other than the following:
‘‘(1) TOLLING
AGREEMENT.—A written agree-
ment executed during the limitation period between
the Secretary and a lessee which tolls the limitation
period for the amount of time during which the agree-
ment is in effect.
‘‘(2) SUBPOENA.—(A) The issuance of a sub-
poena in accordance with the provisions of section
107(c) 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 Secretary receives written notice
that the subpoenaed records for the subject obli-
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gation are not in existence or are not in the les-
see’s possession or control, or
‘‘(iii) a court has determined in a final de-
cision that such records are not required to be
produced, whichever occurs first.
‘‘(B) If a State has been delegated authority pur-
suant to section 205 and pursuant to said delegation
executes a cooperative agreement under section 202,
the Secretary shall issue a subpoena hereunder upon
the request of the highest ranking State official having
ultimate authority over the collection of royalties on
State owned lands.
‘‘(3) FRAUD OR CONCEALMENT.—Any fraud or
concealment by a lessee in an attempt to defeat or
evade an obligation in which case the limitation pe-
riod shall be tolled for the period of such fraud or
such concealment.
‘‘(4) TOLLING REQUEST.—A written tolling re-
quest from a lessee based upon the lessee’s representa-
tion that the lessee’s entitlement to an overpayment
has not been finally determined. The limitation pe-
riod shall be tolled pursuant to this paragraph from
the date the Secretary receives the tolling request until
the earlier of the end of the requested period or 12
months after the date the Secretary receives the tolling
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request, but is subject to successive 12-month renewals
by the lessee made prior to the expiration of the then
applicable 12-month period. The tolling request shall
be sufficient if it identifies—
‘‘(A) the person who made the potential
overpayment;
‘‘(B) the leases and production months in-
volved in the potential overpayment; and
‘‘(C) the reasons the lessee believes that it
may later be entitled to a refund of the overpay-
ment.
‘‘(5) ORDER TO PERFORM A RESTRUCTURED AC-
COUNTING.—
‘‘(A) The issuance of an order to perform a
restructured accounting by the Secretary nec-
essary for an audit. The limitation period under
subsection (a) shall be tolled for the obligation
which is the subject of the order only for the time
period commencing on the date the lessee receives
such order until—
‘‘(i) 120 days after the Secretary has
received written notice that the accounting
(or other requirement) has been performed,
or
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‘‘(ii) the issuance of a final decision
that the lessee is not required to perform the
accounting, whichever is earlier.
‘‘(B) The Secretary is not precluded during
a full and complete audit from issuing an order
to perform a restructured accounting by the Sec-
retary for a single lease upon a finding that the
lessee has made identified underpayments or
overpayments which are demonstrated to be
based upon repeated, systemic reporting errors
on that lease for a significant number of report-
ing months with the same type of error which
constitutes a pattern of violations and which are
likely 
to 
result 
in 
either 
a 
significant
underpayment or overpayment. The power of the
Secretary to issue an order to perform a restruc-
tured accounting may not be delegated below the
most senior career professional position having
responsibility for the royalty management pro-
gram, which position is currently designated as
the ‘Associate Director for Royalty Management’.
An order to perform a restructured accounting
shall—
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‘‘(i) be issued within a reasonable pe-
riod 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 account-
ing’.
‘‘(d) TERMINATION
OF LIMITATIONS PERIOD.—The
limitations period shall be terminated in the event—
‘‘(1) the Secretary has notified the lessee in writ-
ing that a time period is closed to further audit; or
‘‘(2) the Secretary and a lessee have so agreed in
writing.
‘‘(e) FINAL AGENCY ACTION.—
‘‘(1) 3-YEAR PERIOD.—The Secretary shall issue
a final decision in any administrative proceeding, in-
cluding any administrative proceedings pending on
the date of enactment of the Federal Oil and Gas
Royalty Simplification and Fairness Act of 1995,
within three years from the date such proceeding was
initiated or three years from the date of such enact-
ment, whichever is later. The three-year period may
be extended by any period of time agreed upon in
writing by the Secretary and the lessee.
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‘‘(2) EFFECT OF FAILURE TO ISSUE DECISION.—
‘‘(A) IN GENERAL.—If no such decision has
been issued by the Secretary within the three-
year period referred to in paragraph (1)—
‘‘(i) 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
obligation the principal amount of which is
less than $2,500; and
‘‘(ii) 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 ren-
dered a decision prior to the end of such pe-
riod, 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.
‘‘(B) NO PRECEDENTIAL EFFECT ON OTHER
PROCEEDINGS.—Deemed decisions under sub-
paragraph (A) shall have no precedential effect
in any judicial or administrative proceeding or
for any other purpose.
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‘‘(f) ADMINISTRATIVE
SETTLEMENT.—During the
pendency of any administrative proceeding, the parties
shall hold at least one settlement consultation for the pur-
pose of discussing disputed matters between the parties. For
purposes of settlement, the Secretary may waive interest re-
quired and may allow offsetting of obligations among leases.
The Secretary and the State concerned shall seek to resolve
disputes with a lessee in as expeditious a manner as pos-
sible, through settlement negotiations and other alternative
dispute resolution processes methods. If any dispute involv-
ing an obligation due is not resolved by the end of the six-
year period beginning on the date the obligation became
due, the amount of interest otherwise payable with respect
to the obligation shall accrue after such six-year period at
the rate—
‘‘(1) for purposes of section 111(h), reduced each
year thereafter by two additional percentage points
from the rate in effect under this subsection for the
previous year (but not less than zero); and
‘‘(2) for purposes of section 111(a), reduced each
year thereafter by one additional percentage point
from the rate in effect under this subsection for the
previous year (but not less than zero).
‘‘(g) LIMITATION ON CERTAIN ACTIONS BY THE UNIT-
ED STATES.—When an action on or enforcement of an obli-
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gation under the mineral leasing laws is barred under this
section the United States or an officer or agency thereof
may not take any other or further action regarding that
obligation, including (but not limited to) the issuance of
any order, request, demand or other communication seeking
any document, accounting, determination, calculation, re-
calculation, payment, principal, interest, assessment, or
penalty or the initiation, pursuit or completion of an audit
with respect to that obligation.
‘‘(h) JUDICIAL REVIEW.—In the event a demand sub-
ject to this section is 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 pro-
ceeding is commenced within 180 days from receipt of no-
tice by the lessee of the final agency action.
‘‘(i) 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 proceed-
ing, 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 administrative decision,
including any action required or necessary to implement
such decision by the recovery or recoupment of an
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underpayment or overpayment by means of refund or cred-
it.
‘‘(j) STAY OF PAYMENT OBLIGATION PENDING RE-
VIEW.—Any party ordered by the Secretary or the United
States 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 finan-
cially solvent or otherwise able to pay the obligation. In
the event the party is not able to so demonstrate, the Sec-
retary may require a bond or other surety instrument satis-
factory to cover the obligation. Any party ordered by the
Secretary to pay an assessment shall be entitled to a stay
without bond or other surety instrument.
‘‘(k) INAPPLICABILITY OF THE OTHER STATUTES OF
LIMITATION.—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 ap-
plies.’’.
(b) SUBPOENA.—Section 107 of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1717) is
amended by adding at the end the following:
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‘‘(c) RULES REGARDING ISSUANCE OF SUBPOENA RE-
LATING TO REPORTING AND PAYMENT OF AN OBLIGATION
DUE.—
‘‘(1) IN GENERAL.—A subpoena which requires a
lessee to produce records necessary to determine the
proper reporting and payment of an obligation due
the Secretary may be issued under this section only
by the Solicitor, an Assistant Secretary of the Inte-
rior, 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.
‘‘(2) PRIOR WRITTEN REQUEST REQUIRED.—A
subpoena described in paragraph (1) may only be is-
sued against a lessee during the limitation period
provided in section 115 and only after the Secretary
has in writing requested the records from the lessee re-
lated to the obligation which is the subject of the sub-
poena and has determined that—
‘‘(A) the lessee has failed to respond within
a reasonable period of time to the Secretary’s
written request for such records necessary for an
audit, investigation or other inquiry made in ac-
cordance with the Secretary’s responsibilities
under this Act;
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‘‘(B) the lessee has in writing denied the
Secretary’s written request to produce such
records in the lessee’s possession or control nec-
essary for an audit, investigation or other in-
quiry made in accordance with the Secretary’s
responsibilities under this Act; or
‘‘(C) the lessee has unreasonably delayed in
producing records necessary for an audit, inves-
tigation or other inquiry made in accordance
with the Secretary’s responsibilities under this
Act after the Secretary’s written request.
‘‘(3) REASONABLE
PERIOD
FOR
COMPLIANCE
WITH
WRITTEN
REQUEST.—In seeking records, the
Secretary shall afford the lessee a reasonable period of
time after a written request by the Secretary in which
to provide such records prior to the issuance of any
subpoena.’’.
(c) CLERICAL AMENDMENT.—The table of contents in
section 1 of such Act (30 U.S.C. 1701) is amended by add-
ing after the item relating to section 114 the following new
item:
‘‘Sec. 115. Limitation periods and agency actions.’’.
SEC. 5503. ADJUSTMENT AND REFUNDS.
(a) IN GENERAL.—The Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.) is amend-
ed by adding after section 111 the following new section:
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‘‘SEC. 111A. ADJUSTMENTS AND REFUNDS.
‘‘(a) ADJUSTMENTS.—
‘‘(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. Any such ad-
justment shall not require prior notice to or approval
of the Secretary.
‘‘(2)(A) For any adjustment, the lessee shall cal-
culate 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 on whom the Sec-
retary determines that subparagraph (A) would im-
pose a hardship, the Secretary shall calculate the in-
terest 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 obligation may be made after the adjustment pe-
riod only upon written notice to and approval by the
Secretary during an audit of the period which in-
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cludes the production month for which the adjustment
is being made. If an overpayment is identified during
an audit, then the Secretary 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, ex-
tended, enlarged, or terminated by the same actions
as the limitation period in section 115.
‘‘(b) REFUNDS.—
‘‘(1) IN GENERAL.—A request for refund is suffi-
cient if it—
‘‘(A) is made in writing to the Secretary
and, for purposes 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.
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‘‘(2) PAYMENT BY SECRETARY OF THE TREAS-
URY.—The Secretary shall certify the amount of the
refund to be paid under paragraph (1) to the Sec-
retary of the Treasury who shall make such refund.
Such refund shall be paid from amounts received as
current receipts from sales, bonuses, royalties (includ-
ing 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 refund attributable to any
amounts previously disbursed to a State, the Rec-
lamation 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.
‘‘(3) PAYMENT
PERIOD.—A refund under this
subsection shall be paid or denied (with an expla-
nation of the reasons for the denial) within 120 days
of the date on which the request for refund is received
by the Secretary. Such refund shall be subject to later
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audit by the Secretary and subject to the provisions
of this Act.
‘‘(4) PROHIBITION AGAINST REDUCTION OF RE-
FUNDS OR CREDITS.—In no event shall the Secretary
directly or indirectly claim 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 Act (30 U.S.C. 1701) is amended by adding
after the item relating to section 111 the following new item:
‘‘Sec. 111A. Adjustments and refunds.’’.
SEC. 5504. REQUIRED RECORDKEEPING.
Section 103 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1713(b)) is amended by
adding at the end the following:
‘‘(c) records required by the Secretary for the purpose
of determining 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 Con-
tinental Shelf shall be maintained for the same period of
time during which a judicial proceeding or demand may
be commenced under section 115(a). If a judicial proceeding
or demand is timely commenced, the record holder shall
maintain such records until the final nonappealable deci-
sion in such judicial proceeding is made, or with respect
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to that demand is rendered, unless the Secretary authorizes
in writing an earlier release of the requirement to maintain
such records. Notwithstanding anything herein to the con-
trary, under no circumstance shall a record holder be re-
quired to maintain or produce any record relating to an
obligation for any time period which is barred by the appli-
cable limitation in section 115.’’.
SEC. 5505. ROYALTY INTEREST, PENALTIES, AND PAY-
MENTS.
(a) PERIOD.—Section 111(f) of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1721(f))
is amended to read as follows:
‘‘(f) The Secretary may waive or forego such interest
in whole or in part. Interest shall be charged under this
section only for the number of days a payment is late.’’.
(b) 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 follow-
ing:
‘‘(h) Interest shall be allowed and the Secretary shall
pay or credit such interest on any overpayment, with such
interest to accrue from the date such overpayment was
made, at the rate applicable under section 6621(a)(2) of the
Internal Revenue Code of 1986. Interest which has accrued
on any overpayment may be applied to reduce an
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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 cur-
rent receipts from sales, bonuses, royalties (including inter-
est charges collected under this section) and rentals of the
public lands and the Outer Continental Shelf under the pro-
visions 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 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 disburse-
ments to that recipient made under the applicable law.
Such amounts deducted from subsequent disbursements
shall be credited to miscellaneous receipts in the Treasury.’’.
(c) LIMITATION ON INTEREST.—Section 111 of the
Federal Oil and Gas Royalty Management Act, as amended
by subsection (b) of this Act, 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 exces-
sive amount of such overpayment. For purposes of this Act,
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an ‘excessive overpayment’ shall be the amount that any
overpayment a lessee pays for a given reporting month (ex-
cluding payments for demands for obligations as a result
of judicial or administrative proceedings for settlement
agreements and for other similar payments) for the aggre-
gate of all of its Federal leases exceeds 25 percent of the
total royalties paid that month for those leases.’’.
(d) ESTIMATED PAYMENT.—Section 111 of the Federal
Oil and Gas Royalty Management Act, as amended by sub-
sections (b) and (c) of this Act, is further amended by add-
ing at the end the following:
‘‘(j) A lessee may make a payment for the approximate
amount of royalties (hereinafter in this subsection ‘‘esti-
mated payment’) that would otherwise be due to the Sec-
retary for such lease to avoid underpayment or nonpayment
interest charges. When an estimated payment is made, ac-
tual royalties become due at the end of the month following
the period covered by the estimated payment. If the lessee
makes a payment for such actual royalties, the lessee may
apply the estimated payment to future royalties. Any esti-
mated payment may be adjusted, recouped, or reinstated
at any time by the lessee.’’.
(e) VOLUME ALLOCATION OF OIL AND GAS PRODUC-
TION.—Section 111 of the Federal Oil and Gas Royalty
Management Act (30 U.S.C. 1721), as amended by sub-
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sections (b) through (d) of this Act, is amended by adding
at the end the following:
‘‘(k)(1) Except as otherwise provided by this sub-
section—
‘‘(A) a lessee of a lease in a unit or
communitization agreement which contains only Fed-
eral leases with the same royalty rate and funds dis-
tribution must 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 must report and pay roy-
alties on oil and gas production for each production
month based on the volume of oil and gas produced
from such agreement and allocated to the lease in ac-
cordance with the terms of the agreement; and
‘‘(C) a lessee of a lease that is not contained in
a unit or communitization agreement must report
and pay royalties on oil and gas production for each
production month based on the actual volume of pro-
duction 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
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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 agree-
ment.
‘‘(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 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 shall grant an exception from the
reporting and payment requirements for marginal prop-
erties by allowing for any calendar year or portion thereof
royalties to be paid each month based on the volume of pro-
duction 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 produc-
tion allocated to the lease until the beginning of the month
following calendar year or portion thereof. Any additional
royalties due or overpaid 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
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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 domestic crude oil and do-
mestic natural gas from producing wells on such lease by
the number of such wells, unless the Secretary, together with
the State concerned, determines that an amount which is
a nonsubstantive variation thereof is more appropriate.
‘‘(5) Not later than two years after the date of the en-
actment of this subsection, the Secretary shall issue any ap-
propriate demand for all outstanding royalty payment dis-
putes regarding who is required to report and pay royalties
on production from units and communitization agreements
outstanding on the date of the enactment of this subsection,
and collect royalty amounts owed on such production.’’.
(f) PRODUCTION ALLOCATION.—Section 111 of the
Federal Oil and Gas Royalty Management Act (30 U.S.C.
1721), as amended by subsections (b) through (e) of this
Act, is further amended by adding at the end the following:
‘‘(l) The Secretary shall issue all determinations of al-
locations of production for units and communitization
agreements within 120 days of a request for determination.
If the Secretary 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
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month following the month in which the determination is
made.’’.
SEC. 5506. LIMITATION ON ASSESSMENTS.
Section 111 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1721), as amended by sec-
tion 5505 of this Act, is further amended by adding at the
end the following:
‘‘(l)(1) After the date of enactment of this subsection,
the Secretary shall not impose any assessment for any late
payment or underpayment. After the date of enactment of
this subsection, the Secretary may impose an assessment
only for erroneous reports submitted by lessees subject to
the limitations of paragraph (2). Nothing in this section
shall prohibit the Secretary from imposing penalties or in-
terest under other sections of this Act for late payments or
underpayments.
‘‘(2) No assessment for erroneous reports shall be im-
posed for 18 months following the date of enactment of this
subsection, or until the Secretary issues a final rule which
provides for imposition of an assessment only on a lessee
who chronically submits erroneous reports and which estab-
lishes what constitutes chronic errors for a lessee, whichever
is later. However, if the Secretary determines during that
18-month period that the reporting error rate for all report-
ers for all Federal leases has increased by one-third for three
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consecutive report months for either production reporting
or royalty reporting over the 12 months preceding the date
of enactment of this subsection, the Secretary may impose
an assessment for erroneous reports only for the increased
category of report under regulations in effect on the date
of enactment of this subsection.’’.
SEC. 5507. ALTERNATIVES FOR MARGINAL PROPERTIES.
(a) IN GENERAL.—The Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.), as
amended by section 5502 of this Act, is further amended
by adding at the end the following:
‘‘SEC. 116. ALTERNATIVES FOR MARGINAL PROPERTIES.
‘‘(a) SELLING REVENUE STREAM.—
‘‘(1) IN GENERAL.—Notwithstanding the provi-
sions of any lease to the contrary, upon request of the
lessee and a State under section 205(g), the Secretary
shall authorize a lessee for a marginal property and
for a lease, the administration of which is not cost-
effective for the Secretary to administer, to make a
prepayment in lieu of royalty payments under the
lease for the remainder of the lease term. For the pur-
poses of this section, the term ‘marginal property’ has
the same meaning given such term in section
111(k)(4), unless the Secretary, together with each
State in which such marginal production occurs, de-
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termines otherwise to better achieve the purpose of
this section.
‘‘(2) MARGINAL
PROPERTIES.—For marginal
properties, prepayments under paragraph (1) shall
begin—
‘‘(A) in the case of those properties produc-
ing on average $500 or less per month in total
royalties to the United States, two years after the
date of the enactment of this section;
‘‘(B) in the case of those properties produc-
ing on average more than $500 but $1,000 or
less per month in total royalties to the United
States, three years after the date of the enact-
ment of this section;
‘‘(C) in the case of those properties produc-
ing on average more than $1,000 but $1,500 or
less per month in total royalties to the United
States, four years after the date of the enactment
of this section; and
‘‘(D) in the case of those properties not de-
scribed in subparagraphs (A) through (C), five
years after the date of the enactment of this sec-
tion.
‘‘(3) ADMINISTRATION
NOT
COST-EFFECTIVE.—
For a lease, the administration of which is not cost-
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effective for the Secretary to administer, prepayments
under paragraph (1) shall begin on the date of the en-
actment of this section.
‘‘(4) SATISFACTION OF ROYALTY OBLIGATION.—A
lessee who makes a prepayment under this section
shall have satisfied in full its obligation to pay roy-
alty on production from the lease or a portion of a
lease and shall not be required to submit any royalty
reports to the Secretary. The prepayment shall be
shared by the Secretary with any State or other recip-
ient to the same extent as any royalty payment for
such lease.
‘‘(5) VALUATION.—The prepayment authorized
under this section shall only occur if the Secretary,
the State concerned, and the lessee determine that
such prepayment is based on the present value of the
projected remaining royalties from the production
from the lease, based on appropriate nominal dis-
count rate for a comparable term, as provided in Of-
fice of Management and Budget Circular A–94.
‘‘(b) ALTERNATIVE ACCOUNTING
AND ALTERNATIVE
ACCOUNTING AND AUDITING REQUIREMENTS.—
‘‘(1) IN GENERAL.—Within one year after the
date of the enactment of this section, for the marginal
properties referenced in subsection (a)(1), the Sec-
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retary shall provide accounting, reporting, and audit-
ing relief that will encourage lessees to continue to
produce and develop such properties: Provided, That
such relief will only be available to lessees in a State
that concurs.
‘‘(2) PAYMENT DATE.—For leases subject to this
section, the Secretary may allow royalties to be paid
later than the time specified in the lease.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 of the Federal Oil and Gas Royalty Management
Act (30 U.S.C. 1701) is amended by adding after the item
relating to section 115 the following new item:
‘‘Sec. 116. Alternatives for marginal properties.’’.
SEC. 5508. NOTICE REQUIREMENT.
Section 23(a)(2) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1349(a)(2)) is amended to read as follows:
‘‘(2) Except as provided in paragraph (3) of this
subsection, no action may be commenced under sub-
section (a)(1) of this section if the Attorney General
has commenced and is diligently prosecuting a civil
action in a court of the United States with respect to
such matter, but in any such action in a court of the
United States any person having a legal interest
which is or may be adversely affected may intervene
as a matter of right.’’.