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striking ‘‘September 30, 1998’’ and inserting ‘‘September
30, 2002’’.
Subtitle B—Department of Energy
Assets
CHAPTER 1—UNITED STATES
ENRICHMENT CORPORATION
SEC. 5201. SHORT TITLE.
This chapter may be cited as the ‘‘USEC Privatization
Act’’.
SEC. 5202. DEFINITIONS.
For purposes of this chapter:
(1) The term ‘‘AVLIS’’ means atomic vapor laser
isotope separation technology.
(2) The term ‘‘Corporation’’ means the United
States Enrichment Corporation and, unless the con-
text otherwise requires, includes the private corpora-
tion and any successor thereto following privatiza-
tion.
(3) The term ‘‘gaseous diffusion plants’’ means
the Paducah Gaseous Diffusion Plant at Paducah,
Kentucky and the Portsmouth Gaseous Diffusion
Plant at Piketon, Ohio.
(4) The term ‘‘highly enriched uranium’’ means
uranium enriched to 20 percent or more of the ura-
nium–235 isotope.
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(5) The term ‘‘low-enriched uranium’’ means
uranium enriched to less than 20 percent of the ura-
nium–235 isotope, including that which is derived
from highly enriched uranium.
(6) The term ‘‘low-level radioactive waste’’ has
the meaning given such term in section 2(9) of the
Low-Level Radioactive Waste Policy Act (42 U.S.C.
2021b(9)).
(7) The term ‘‘private corporation’’ means the
corporation established under section 5205.
(8) The term ‘‘privatization’’ means the transfer
of ownership of the Corporation to private investors.
(9) The term ‘‘privatization date’’ means the
date on which 100 percent of the ownership of the
Corporation has been transferred to private investors.
(10) The term ‘‘public offering’’ means an under-
written offering to the public of the common stock of
the private corporation pursuant to section 5204.
(11) The ‘‘Russian HEU Agreement’’ means the
Agreement Between the Government of the United
States of America and the Government of the Russian
Federation Concerning the Disposition of Highly En-
riched Uranium Extracted from Nuclear Weapons,
dated February 18, 1993.
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(12) The term ‘‘Secretary’’ means the Secretary
of Energy.
(13) The ‘‘Suspension Agreement’’ means the
Agreement to Suspend the Antidumping Investigation
on Uranium from the Russian Federation, as amend-
ed.
(14) The term ‘‘uranium enrichment’’ means the
separation of uranium of a given isotopic content
into 2 components, 1 having a higher percentage of a
fissile isotope and 1 having a lower percentage.
SEC. 5203. SALE OF THE CORPORATION.
(a) AUTHORIZATION.—The Board of Directors of the
Corporation, with the approval of the Secretary of the
Treasury, shall transfer the interest of the United States
in the United States Enrichment Corporation to the private
sector in a manner that provides for the long-term viability
of the Corporation, provides for the continuation by the
Corporation of the operation of the Department of Energy’s
gaseous diffusion plants, provides for the protection of the
public interest in maintaining a reliable and economical
domestic source of uranium mining, enrichment and con-
version services, and, to the extent not inconsistent with
such purposes, secures the maximum proceeds to the United
States.
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(b) PROCEEDS.—Proceeds from the sale of the United
States’ interest in the Corporation shall be deposited in the
general fund of the Treasury.
SEC. 5204. METHOD OF SALE.
(a) AUTHORIZATION.—The Board of Directors of the
Corporation, with the approval of the Secretary of the
Treasury, shall transfer ownership of the assets and obliga-
tions of the Corporation to the private corporation estab-
lished under section 5205 (which may be consummated
through a merger or consolidation effected in accordance
with, and having the effects provided under, the law of the
state of incorporation of the private corporation, as if the
Corporation were incorporated thereunder).
(b) BOARD DETERMINATION.—The Board, with the
approval of the Secretary of the Treasury, shall select the
method of transfer and establish terms and conditions for
the transfer that will provide the maximum proceeds to the
Treasury of the United States and will provide for the long-
term viability of the private corporation, the continued op-
eration of the gaseous diffusion plants, and the public inter-
est in maintaining reliable and economical domestic ura-
nium mining and enrichment industries.
(c) ADEQUATE PROCEEDS.—The Secretary of the
Treasury shall not allow the privatization of the Corpora-
tion unless before the sale date the Secretary of Treasury
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determines that the method of transfer will provide the max-
imum proceeds to the Treasury consistent with the prin-
ciples set forth in section 5203(a).
(d) APPLICATION OF SECURITIES LAWS.—Any offering
or sale of securities by the private corporation shall be sub-
ject to the Securities Act of 1933 (15 U.S.C. 77a et seq.),
the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.),
and the provisions of the Constitution and laws of any
State, territory, or possession of the United States relating
to transactions in securities.
SEC. 5205. ESTABLISHMENT OF PRIVATE CORPORATION.
(a) INCORPORATION.—(1) The directors of the Cor-
poration shall establish a private for-profit corporation
under the laws of a State for the purpose of receiving the
assets and obligations of the Corporation at privatization
and continuing the business operations of the Corporation
following privatization.
(2) The directors of the Corporation may serve as
incorporators of the private corporation and shall take all
steps necessary to establish the private corporation, includ-
ing the filing of articles of incorporation consistent with
the provisions of this chapter.
(3) Employees and officers of the Corporation (includ-
ing members of the Board of Directors) acting in accordance
with this section on behalf of the private corporation shall
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be deemed to be acting in their official capacities as employ-
ees or officers of the Corporation for purposes of section 205
of title 18, United States Code.
(b) STATUS OF THE PRIVATE CORPORATION.—(1) The
private corporation shall not be an agency, instrumentality,
or establishment of the United States, a Government cor-
poration, or a Government-controlled corporation.
(2) Except as otherwise provided by this chapter, fi-
nancial obligations of the private corporation shall not be
obligations of, or guaranteed as to principal or interest by,
the Corporation or the United States, and the obligations
shall so plainly state.
(3) No action under section 1491 of title 28, United
States Code, shall be allowable against the United States
based on actions of the private corporation.
(c) APPLICATION OF POST-GOVERNMENT EMPLOYMENT
RESTRICTIONS.—Beginning on the privatization date, the
restrictions stated in section 207 (a), (b), (c), and (d) of
title 18, United States Code, shall not apply to the acts
of an individual done in carrying out official duties as a
director, officer, or employee of the private corporation, if
the individual was an officer or employee of the Corpora-
tion (including a director) continuously during the 45 days
prior to the privatization date.
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(d) DISSOLUTION.—In the event that the privatization
does not occur, the Corporation will provide for the dissolu-
tion of the private corporation within 1 year of the private
corporation’s incorporation unless the Secretary of the
Treasury or his delegate, upon the Corporation’s request,
agrees to delay any such dissolution for an additional year.
SEC. 5206. TRANSFERS TO THE PRIVATE CORPORATION.
Concurrent with privatization, the Corporation shall
transfer to the private corporation—
(1) the lease of the gaseous diffusion plants in
accordance with section 5207,
(2) all personal property and inventories of the
Corporation,
(3) all contracts, agreements, and leases under
section 5208(a),
(4) the Corporation’s right to purchase power
from the Secretary under section 5208(b),
(5) such funds in accounts of the Corporation
held by the Treasury or on deposit with any bank or
other financial institution as approved by the Sec-
retary of the Treasury, and
(6) all of the Corporation’s records, including all
of the papers and other documentary materials, re-
gardless of physical form or characteristics, made or
received by the Corporation.
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SEC. 5207. LEASING OF GASEOUS DIFFUSION FACILITIES.
(a) TRANSFER OF LEASE.—Concurrent with privat-
ization, the Corporation shall transfer to the private cor-
poration the lease of the gaseous diffusion plants and relat-
ed property for the remainder of the term of such lease in
accordance with the terms of such lease.
(b) RENEWAL.—The private corporation shall have the
exclusive option to lease the gaseous diffusion plants and
related property for additional periods following the expira-
tion of the initial term of the lease.
(c) EXCLUSION OF FACILITIES FOR PRODUCTION OF
HIGHLY ENRICHED URANIUM.—The Secretary shall not
lease to the private corporation any facilities necessary for
the production of highly enriched uranium but may, subject
to the requirements of the Atomic Energy Act of 1954 (42
U.S.C. 2011 et seq.), grant the Corporation access to such
facilities for purposes other than the production of highly
enriched uranium.
(d) DOE RESPONSIBILITY FOR PREEXISTING CONDI-
TIONS.—The payment of any costs of decontamination and
decommissioning, response actions, or corrective actions
with respect to conditions existing before July 1, 1993 at
the gaseous diffusion plants shall remain the sole respon-
sibility of the Secretary.
(e) ENVIRONMENTAL AUDIT.—For purposes of sub-
section (d), the conditions existing before July 1, 1993, at
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the gaseous diffusion plants shall be determined from the
environmental audit conducted pursuant to section 1403(e)
of the Atomic Energy Act of 1954 (42 U.S.C. 2297c–2(e)).
(f) TREATMENT
UNDER
PRICE-ANDERSON
PROVI-
SIONS.—Any lease executed between the Secretary and the
Corporation or the private corporation, and any extension
or renewal thereof, under this section shall be deemed to
be a contract for purposes of section 170d. of the Atomic
Energy Act of 1954 (42 U.S.C. 2210(d)).
(g) WAIVER OF EIS REQUIREMENT.—The execution or
transfer of the lease between the Secretary and the Corpora-
tion or the private corporation, and any extension or re-
newal thereof, shall not be considered a major Federal ac-
tion significantly affecting the quality of the human envi-
ronment for purposes of section 102 of the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4332).
SEC. 5208. TRANSFER OF CONTRACTS.
(a) TRANSFER OF CONTRACTS.—Concurrent with pri-
vatization, the Corporation shall transfer to the private cor-
poration all contracts, agreements, and leases, including all
uranium enrichment contracts, that were—
(1) transferred by the Secretary to the Corpora-
tion pursuant to section 1401(b) of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2297c(b)), or
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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. 5209. LIABILITIES.
(a) LIABILITY OF THE UNITED STATES.—(1) Except
as otherwise provided in this chapter, 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 from any action taken
by any agent or officer of the United States in connection
with the privatization of the Corporation is hereby with-
drawn.
(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
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shall be presented to the Department of Energy in accord-
ance with procedures to be established by the Secretary.
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 5208 or any other action the Corporation is
required to take under this chapter.
(c) LIABILITY OF THE PRIVATE CORPORATION.—Ex-
cept as provided in this chapter, 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
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proceeding, such person was acting within the scope of his
employment.
(2) This subsection shall not apply to claims arising
under the Securities Act of 1933 (15 U.S.C. 77a. et seq.),
the Securities Exchange Act of 1934 (15 U.S.C. 78a. et seq.),
or under the Constitution or laws of any State, territory,
or possession of the United States relating to transactions
in securities.
SEC. 5210. EMPLOYEE PROTECTIONS.
(a) CONTRACTOR
EMPLOYEES.—(1) Privatization
shall not 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 plan’s 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 (29 U.S.C. 151 et seq.), any
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employer (including the private corporation if it operates
a gaseous diffusion plant without a contractor or any con-
tractor of the private corporation) 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
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(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.
(5) In the event of a plant closing or mass layoff (as
such terms are defined in section 2101(a)(2) and (3) of title
29, United States Code) at either of the gaseous diffusion
plants, the Secretary of Energy shall treat any adversely
affected employee of an operating contractor at either plant
who was an employee at such plant on July 1, 1993, as
a Department of Energy employee for purposes of sections
3161 and 3162 of the National Defense Authorization Act
for Fiscal Year 1993 (42 U.S.C. 7274h–7274i).
(6)(A) The Secretary and the private corporation shall
cause the post-retirement health benefits plan provider (or
its successor) to continue to provide benefits for eligible per-
sons, as described under subparagraph (B), employed by an
operating contractor at either of the gaseous diffusion
plants in an economically efficient manner and at substan-
tially the same level of coverage as eligible retirees are enti-
tled 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
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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; and
(ii) persons who are employed by the Corpora-
tion’s operating contractor on or before the privatiza-
tion date and are 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.
(C) The Secretary shall fund the entire cost of post-
retirement health benefits for persons who retired from em-
ployment with an operating contractor prior to July 1,
1993.
(D) The Secretary and the Corporation shall fund the
cost of post-retirement health benefits for persons who retire
from employment with an operating contractor on or after
July 1, 1993, in proportion to the retired person’s years
and months of service at a gaseous diffusion plant under
their respective management.
(7)(A) Any suit under this subsection alleging a viola-
tion of an agreement between an employer and a labor orga-
nization shall be brought in accordance with section 301
of the Labor Management Relations Act (29 U.S.C. 185).
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(B) Any charge under this subsection alleging an un-
fair labor practice violative of section 8 of the National
Labor Relations Act (29 U.S.C. 158) shall be pursued in
accordance with section 10 of the National Labor Relations
Act (29 U.S.C. 160).
(C) Any suit alleging a violation of any provision of
this 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
over the parties, without regard to the amount in con-
troversy or the citizenship of the parties.
(b) FORMER FEDERAL EMPLOYEES.—(1)(A) An em-
ployee of the Corporation that was subject to either the Civil
Service Retirement System (referred to in this section as
‘‘CSRS’’) or the Federal Employees’ Retirement System (re-
ferred to in this section as ‘‘FERS’’) on the day imme-
diately preceding the privatization date shall elect—
(i) to retain the employee’s coverage under either
CSRS or FERS, as applicable, in lieu of coverage by
the Corporation’s retirement system, or
(ii) to receive a deferred annuity or lump-sum
benefit payable to a terminated employee under
CSRS or FERS, as applicable.
(B) An employee that makes an election under sub-
paragraph (A)(ii) shall have the option to transfer the bal-
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ance in the employee’s Thrift Savings Plan account to a
defined contribution plan under the Corporation’s retire-
ment system, consistent with applicable law and the terms
of the Corporation’s defined contribution plan.
(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
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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-
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 (referred
to in this section as ‘‘FEHBP’’) on the day immediately
preceding the privatization date and who elects to retain
coverage under either CSRS or FERS pursuant to para-
graph (1) shall have the option to receive health benefits
from a health benefit plan established by the Corporation
or to continue without interruption coverage under the
FEHBP, in lieu of coverage by the Corporation’s health
benefit system.
(5) The Corporation shall pay to the Employees Health
Benefits Fund—
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(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
(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. 5211. OWNERSHIP LIMITATIONS.
(a) SECURITIES LIMITATIONS.—No director, officer, or
employee of the Corporation may acquire any securities, or
any rights to acquire any securities of the private corpora-
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tion on terms more favorable than those offered to the gen-
eral public—
(1) in a public offering designed to transfer own-
ership of the Corporation to private investors,
(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.
(b) OWNERSHIP LIMITATION.—Immediately following
the consummation of the transaction or series of trans-
actions pursuant to which 100 percent of the ownership of
the Corporation is transferred to private investors, and for
a period of three years thereafter, no person may acquire,
directly or indirectly, beneficial ownership of securities rep-
resenting more than 10 percent of the total votes of all out-
standing voting securities of the Corporation. The foregoing
limitation shall not apply to—
(1) any employee stock ownership plan of the
Corporation,
(2) members of the underwriting syndicate pur-
chasing shares in stabilization transactions in con-
nection with the privatization, or
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(3) in the case of shares beneficially held in the
ordinary course of business for others, any commer-
cial bank, broker-dealer, or clearing agency.
SEC. 5212. URANIUM TRANSFERS AND SALES.
(a) TRANSFERS AND SALES BY THE SECRETARY.—The
Secretary shall not provide enrichment services or transfer
or sell any 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 United States law for all purposes
to be of Russian origin.
(2) Within 7 years of the date of enactment of this
Act, the Secretary shall sell, and receive payment for, the
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uranium hexafluoride transferred to the Secretary pursuant
to paragraph (1). Such uranium hexafluoride shall be
sold—
(A) at any time for use in the United States for
the purpose of overfeeding;
(B) at any time for end use outside the United
States;
(C) in 1995 and 1996 to the Russian Executive
Agent at the purchase price for use in matched sales
pursuant to the Suspension Agreement; or,
(D) in calendar year 2001 for consumption by
end users in the United States not prior to January
1, 2002, in volumes not to exceed 3,000,000 pounds
U3O8 equivalent per year.
(3) With respect to all enriched uranium delivered to
the United States Executive Agent under the Russian HEU
Agreement on or after January 1, 1997, the United States
Executive Agent shall, upon request of the Russian 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.
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The quantity of such uranium hexafluoride delivered to the
Russian Executive Agent shall be based on a tails assay
of 0.30 U235. Title to uranium hexafluoride delivered to the
Russian Executive Agent pursuant to this paragraph shall
transfer to the Russian Executive Agent upon delivery of
such material to the Russian Executive Agent, with such
delivery to take place at a North American facility des-
ignated by the Russian Executive Agent. Uranium
hexafluoride delivered to the Russian Executive Agent 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, or upon request of
the Russian Executive Agent, then the United States Execu-
tive Agent shall engage an independent entity through a
competitive selection process to auction an amount of ura-
nium hexafluoride or U3O8 (in the event that the conversion
component of such hexafluoride has previously been sold)
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equivalent to the natural uranium component of such low-
enriched uranium. An agreement executed pursuant to a
request of the Russian Executive Agent, as contemplated in
this paragraph, may pertain to any deliveries due during
any period remaining under the Russian HEU Agreement.
Such 
independent 
entity 
shall 
sell 
such 
uranium
hexafluoride in one or more lots to any person or entity
to maximize the proceeds from such sales, for disposition
consistent with the limitations set forth in this subsection.
The independent entity shall pay to the Russian Executive
Agent the proceeds of any such auction less all reasonable
transaction and other administrative costs. The quantity
of such uranium hexafluoride auctioned shall be based on
a tails assay of 0.30 U235. Title to uranium hexafluoride
auctioned pursuant to this paragraph shall transfer to the
buyer of such material upon delivery of such material to
the buyer. Uranium hexafluoride auctioned pursuant to this
paragraph shall be deemed under United States 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-
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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 ................................................................................................
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 hexafluoride.
(9) The Secretary of Commerce shall have responsibil-
ity for the administration and enforcement of the limita-
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tions set forth in this subsection. The Secretary of Com-
merce may require any person to provide any certifications,
information, or take any action that may be necessary to
enforce these limitations. The United States Customs Serv-
ice shall maintain and provide any information required
by the Secretary of Commerce and shall take any action
requested by the Secretary of Commerce which is necessary
for the administration and enforcement of the uranium de-
livery limitations 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-
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ric tons of natural uranium from the Department of Ener-
gy’s stockpile, subject to the restrictions in subsection (c)(2).
(2) The Corporation shall not deliver for commercial
end use in the United States—
(A) any of the uranium transferred under this
subsection before January 1, 1998;
(B) more than 10 percent of the uranium (by
uranium hexafluoride equivalent content) transferred
under this subsection or more than 4,000,000 pounds,
whichever is less, in any calendar year after 1997; or
(C) more than 800,000 separative work units
contained in low-enriched uranium transferred under
this subsection in any calendar year.
(d) INVENTORY SALES.—(1) In addition to the 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,
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(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-
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 chapter shall
be read to modify the terms of the Russian HEU Agreement.
SEC. 5213. LOW-LEVEL WASTE.
(a) RESPONSIBILITY OF DOE.—(1) The Secretary, at
the request of the generator, shall accept for disposal low-
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level radioactive waste, including depleted uranium if it
were ultimately determined to be low-level radioactive
waste, generated by the Corporation as a result of the oper-
ations of the gaseous diffusion plants or as a result of the
treatment of such wastes at a location other than a gaseous
diffusion plant. The terms and conditions for such service
shall be no more favorable than those the Secretary offers
any other generator of such wastes generated by uranium
enrichment plants licensed by the Nuclear Regulatory Com-
mission.
(2) The Secretary shall recover the cost of providing
the service in paragraph (1), including a pro rata share
of any capital costs, by charging the Corporation a fee for
such service in an amount equal to the price charged ura-
nium enrichment plants licensed by the Nuclear Regulatory
Commission, but in no event shall the Secretary charge any
generator more than an amount equal to that which would
be charged by commercial, state, regional, or interstate com-
pact entities for disposal of such waste.
(b) AGREEMENTS WITH OTHER PERSONS.—The Cor-
poration or any other generator may also enter into agree-
ments for the disposal of low-level radioactive waste subject
to subsection (a) with any person other than the Secretary
that is authorized by applicable laws and regulations to dis-
pose of such wastes, but shall have no authority under this
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or any other law to require a State or interstate compact
to treat, store, or dispose of such waste in a State or inter-
state compact facility without the State or compact’s con-
sent.
SEC. 5214. 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 (42 U.S.C. 2011 et seq.),
the President shall transfer without charge to the Cor-
poration all of the right, title, or interest in and to
property owned by the United States under control or
custody of the Secretary that is directly related to and
materially useful in the performance of the Corpora-
tion’s purposes regarding AVLIS and alternative
technologies for uranium enrichment, including—
(A) facilities, equipment, and materials for
research, development, and demonstration activi-
ties; and
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(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-
set any payments, awards, settlements, or judgments under
this subsection.
SEC. 5215. APPLICATION OF CERTAIN LAWS.
(a) OSHA.—(1) As of the privatization date, the pri-
vate corporation shall be subject to and comply with the
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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 date of enactment of this Act, 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-
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 and sub-
contractors shall be subject to the provisions of section 211
of the Energy Reorganization Act of 1974 (42 U.S.C. 5851)
to the same extent as an employer subject to such section.
(2) With respect to the operation of the facilities leased
by the private corporation, section 206 of the Energy Reor-
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ganization Act of 1974 (42 U.S.C. 5846) shall apply to the
directors and officers of the private corporation.
SEC. 5216. 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. 2297–2297e-7) are re-
pealed as of the privatization date.
(2) The table of contents of such Act is amended as
of the privatization date by striking the items referring to
sections repealed by paragraph (1).
(b) NRC LICENSING.—(1) Section 11v. of the Atomic
Energy Act of 1954 (42 U.S.C. 2014v.) is amended by strik-
ing ‘‘or the construction and operation of a uranium en-
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 this section or sections 53,
63, or 1701, if the Commission determines that—
‘‘(1) the Corporation is owned, controlled, or
dominated by an alien, a foreign corporation, or a
foreign government; or
‘‘(2) the issuance of such a license or certificate
of compliance would be inimical to—
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‘‘(A) the common defense and security of the
United States; or
‘‘(B) the maintenance of a reliable and eco-
nomical domestic source of enrichment services.’’.
(3) Section 1701(c)(2) of the Atomic Energy Act of
1954 (42 U.S.C. 2297f(c)(2)) is amended to read as follows:
‘‘(2) PERIODIC APPLICATION FOR CERTIFICATE
OF 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-
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:
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‘‘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
any such facilities leased to a corporation established
under the USEC Privatization Act.
‘‘(4) Any final determination under section
1701(c) relating to whether the gaseous diffusion
plants, including any such facilities leased to a cor-
poration established under the USEC Privatization
Act, are in compliance with the Commission’s stand-
ards governing the gaseous diffusion plants and all
applicable laws.’’.
(d) CIVIL PENALTIES.—Section 234 a. of the Atomic
Energy Act of 1954 (42 U.S.C. 2282(a)) is amended by—
(1) striking ‘‘any licensing provision of section
53, 57, 62, 63, 81, 82, 101, 103, 104, 107, or 109’’
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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.
SEC. 5217. AMENDMENTS TO OTHER LAWS.
(a) DEFINITION OF GOVERNMENT CORPORATION.—As
of the privatization date, section 9101(3) of title 31, United
States Code, is amended by striking subparagraph (N) as
added by section 902(b) of Public Law 102–486.
(b) DEFINITION
OF
THE
CORPORATION.—Section
1018(1) of the Energy Policy Act of 1992 (42 U.S.C. 2296b–
7(1) is amended by inserting ‘‘or its successor’’ before the
period.
CHAPTER 2—DEPARTMENT OF ENERGY
SEC. 5221. SALE OF DOE ASSETS
(a) ASSET MANAGEMENT
AND DISPOSITION PRO-
GRAM.—
(1) IN GENERAL.—In order to maximize the use
of Department of Energy assets and to reduce over-
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head and other costs related to asset management at
the Department’s facilities and laboratories, the Sec-
retary of Energy shall conduct an asset management
and disposition program that will result in not less
than $225,000,000 in receipts and savings by October
1, 2000.
(2) ITEMS TO BE INCLUDED.—The program shall
include an inventory of assets in the care of the De-
partment and its contractors; the recovery, reuse, and
stewardship of assets; and disposition of a minimum
of 1,139,000,000 pounds of fuel, 136,000 tons of
chemicals and industrial gases, 557,000 tons of scrap
metal, 14,000 radiation sources, 17,000 pieces of
major equipment, 11,000 pounds of precious metals,
and 91,000,000 pounds of base metals.
(b) FEDERAL PROPERTY AND ADMINSTRATIVE SERV-
ICES ACT.—The disposition of assets under this section is
not subject to section 202 or 203 of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 483,
484) or section 13 of the Surplus Property Act of 1944 (50
U.S.C. App. 1622). In order to avoid market disruptions,
the Secretary shall consult with appropriate executive agen-
cies with respect to dispositions under this section.
(c) DISPOSITION OF PROCEEDS.—After deduction of
administrative costs of disposition under this section not
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to exceed $7,000,000 per year, the remainder of the proceeds
from dispositions under this subpart shall be returned to
the Treasury as miscellaneous receipts. There shall be estab-
lished a new receipt account in the Treasury for proceeds
of asset sales under this section.
SEC. 5222. SALE OF WEEKS ISLAND OIL.
Notwithstanding section 161 of the Energy Policy and
Conservation Act (42 U.S.C. 6241), the Secretary of Energy
shall draw down and sell 32,000,000 barrels of oil contained
in the Weeks Island Strategic Petroleum Reserve Facility.
The Secretary shall, to the greatest extent practicable, sell
oil from the reserve in a manner that minimizes the impact
of such sale upon supply levels and market forces.
SEC. 5223. LEASE OF EXCESS STRATEGIC PETROLEUM RE-
SERVE CAPACITY.
(a) AMENDMENT.—Part B of title I of the Energy Pol-
icy and Conservation Act (42 U.S.C. 6231 et seq.) is amend-
ed by adding at the end the following:
‘‘USE OF UNDERUTILIZED FACILITIES
‘‘SEC. 168. (a) AUTHORITY.—Notwithstanding any
other provision of this title, the Secretary, by lease or other-
wise, for any term and under such other conditions as the
Secretary considers necessary or appropriate, may store in
underutilized Strategic Petroleum Reserve facilities petro-
leum product owned by a foreign government or its rep-
resentative. Petroleum products stored under this section
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are not part of the Strategic Petroleum Reserve and may
be exported without license from the United States.
‘‘(b) PROTECTION OF FACILITIES.—All agreements en-
tered into pursuant to subsection (a) shall contain provi-
sions providing for fees to fully compensate the United
States for all costs of storage and removals of petroleum
products, including the cost of replacement facilities neces-
sitated as a result of any withdrawals.
‘‘(c) ACCESS TO STORED OIL.—The Secretary shall en-
sure that agreements to store petroleum products for foreign
governments or their representatives do not affect the ability
of the United States to withdraw, distribute, or sell petro-
leum from the Strategic Petroleum reserve in response to
an energy emergency or to the obligations of the United
States under the Agreement on an International Energy
Program.
‘‘(d) AVAILABILITY OF FUNDS.—Beginning in fiscal
year 2001 and in each fiscal year thereafter except for fiscal
years 2003 and 2004, 50 percent of the funds resulting from
the leasing of Strategic Petroleum Reserve facilities author-
ized by subsection (a) shall be available to the Secretary
of Energy without further appropriation for the purchase
of oil for the Strategic Petroleum Reserve.’’.
(b) TABLE OF CONTENTS AMENDMENT.—The table of
contents of part B of title I of the Energy Policy and Con-
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servation Act is amended by adding at the end the follow-
ing:
‘‘Sec. 168. Use of underutilized facilities.’’.
Subtitle C—Natural Resources
CHAPTER 1—DEPARTMENT OF THE
INTERIOR CONVEYANCES
Subchapter A—California Directed Land Sale
SEC. 5301. CONVEYANCE OF PROPERTY.
All right, title and interest of the United States in the
property depicted on a map designated USGS 7.5 minute
quadrangle, west of Flattop Mtn, CA 1984, entitled ‘‘Loca-
tion Map for Ward Valley Site’’, located in San Bernardino
Meridian, Township 9 North, Range 19 East, and improve-
ments thereon, together with all necessary easements for
utilities and ingress and egress to such property, including,
but not limited to, the right to improve those easements,
are conveyed to the Department of Health Services of the
State of California upon the tendering of $500,100 on behalf
of the State of California and the release of the United
States by the State of California from any liability for
claims relating to the property described in this section and,
as part of the consideration paid for such property, such
conveyance is declared to meet and fully comply with any
otherwise applicable provisions of section 7 of Endangered
Species Act of 1973 (16 U.S.C. 1536) and the National En-
vironmental Policy Act of 1969 (42 U.S.C. 4332). The Sec-
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retary of the Interior shall issue evidence of title pursuant
to this Act notwithstanding any other provision of law.
Subchapter B—Helium Reserves
SEC. 5311. SHORT TITLE.
This subchapter may be cited as the ‘‘Helium Act of
1995’’.
SEC. 5312. AMENDMENT OF HELIUM ACT.
Except as otherwise expressly provided, whenever in
this chapter an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a section
or other provision of the Helium Act (50 U.S.C. 167 to
167n).
SEC. 5313. AUTHORITY OF SECRETARY.
Sections 3, 4, and 5 are amended to read as follows:
‘‘SEC. 3. AUTHORITY OF SECRETARY.
‘‘(a) EXTRACTION AND DISPOSAL OF HELIUM ON 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
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.
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‘‘(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
Helium Act of 1995 except to the extent that such
agreements are renewed or extended after that date.
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‘‘(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 24 months after the cessation of activi-
ties referred to in section (b) of this section, the Sec-
retary shall designate as excess property and dispose
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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
purity, quality control, and quality assurance of
crude helium in the Bureau of Mines Cliffside Field.
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‘‘(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).’’.
SEC. 5314. SALE OF CRUDE HELIUM.
(a) Subsection 6(a) is amended by striking ‘‘from the
Secretary’’ and inserting ‘‘from persons who have entered
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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, 1995 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—
‘‘(1) dividing the outstanding amount of such re-
payable amounts by the volume (in million cubic feet)
of crude helium owned by the United States and
stored in the Bureau of Mines Cliffside Field at the
time of the sale concerned, and
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‘‘(2) adjusting the amount determined under
paragraph (1) by the Consumer Price Index for years
beginning after December 31, 1995.’’.
(d) Subsection 6(d) is amended to read as follows:
‘‘(d) EXTRACTION OF HELIUM FROM DEPOSITS ON
FEDERAL LANDS.—All moneys received by the Secretary
from the sale or disposition of helium on Federal lands shall
be paid to the Treasury and credited against the amounts
required to be repaid to the Treasury under subsection (c).’’.
(e) Subsection 6(e) is repealed.
(f) Subsection 6(f) is amended—
(1) by striking ‘‘(f)’’ and inserting ‘‘(e)(1)’’; and
(2) by adding the following at the end:
‘‘(2)(A) Within 7 days after the commencement of each
fiscal year after the disposal of the facilities referred to in
section 4(c), all amounts in such fund in excess of
$2,000,000 (or such lesser sum as the Secretary deems 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).
‘‘(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.’’.
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SEC. 5315. ELIMINATION OF STOCKPILE.
Section 8 is amended to read as follows:
‘‘SEC. 8. ELIMINATION OF STOCKPILE.
‘‘(a) STOCKPILE SALES.—
‘‘(1) COMMENCEMENT.—Not later than January
1, 2005, the Secretary shall commence offering for sale
crude helium from helium reserves owned by the Unit-
ed States in such amounts as would be necessary to
dispose of all such helium reserves in excess of
600,000,000 cubic feet on a straight-line basis between
such date and January 1, 2015.
‘‘(2) TIMES OF SALE.—The sales shall be at such
times during each year and in such lots as the 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).
‘‘(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).’’.
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SEC. 5316. REPEAL OF AUTHORITY TO BORROW.
Sections 12 and 15 are repealed.
SEC. 5317. LAND CONVEYANCE IN POTTER COUNTY, TEXAS.
(a) IN GENERAL.—The Secretary of the Interior shall
transfer all right, title, and interest of the United States
in and to the parcel of land described in subsection (b) to
the Texas Plains Girl Scout Council for consideration of
$1, reserving to the United States such easements as may
be necessary for pipeline rights-of-way.
(b) LAND DESCRIPTION.—The parcel of land referred
to in subsection (a) is all those certain lots, tracts or parcels
of land lying and being situated in the County of Potter
and State of Texas, and being the East Three Hundred
Thirty-One (E331) acres out of Section Seventy-eight (78)
in Block Nine (9), B.S. & F. Survey, (some times known
as the G.D. Landis pasture) Potter County, Texas, located
by certificate No. 1/39 and evidenced by letters patents Nos.
411 and 412 issued by the State of Texas under date of
November 23, 1937, and of record in Vol. 66A of the Patent
Records of the State of Texas. The metes and bounds de-
scription of such lands is as follows:
(1) FIRST
TRACT.—One Hundred Seventy-one
(171) acres of land known as the North part of the
East part of said survey Seventy-eight (78) aforesaid,
described by metes and bounds as follows:
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Beginning at a stone 20 x 12 x 3 inches marked
X, set by W.D. Twichell in 1905, for the Northeast
corner of this survey and the Northwest corner of Sec-
tion 59;
Thence, South 0 degrees 12 minutes East with
the West line of said Section 59, 999.4 varas to the
Northeast corner of the South 160 acres of East half
of Section 78;
Thence, North 89 degrees 47 minutes West with
the North line of the South 150 acres of the East half,
956.8 varas to a point in the East line of the West
half Section 78;
Thence, North 0 degrees 10 minutes West with
the East line of the West half 999.4 varas to a stone
18 x 14 x 3 inches in the middle of the South line
of Section 79;
Thence, South 89 degrees 47 minutes East 965
varas to the place of beginning.
(2) SECOND TRACT.—One Hundred Sixty (160)
acres of land known as the South part of the East
part of said survey No. Seventy-eight (78) described
by metes and bounds as follows:
Beginning at the Southwest corner of Section 59,
a stone marked X and a pile of stones; Thence, North
89 degrees 47 minutes West with the North line of
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Section 77, 966.5 varas to the Southeast corner of the
West half of Section 78; Thence, North 0 degrees 10
minutes West with the East line of the West half of
Section 78;
Thence, South 89 degrees 47 minutes East 965.8
varas to a point in the East line of Section 78;
Thence, South 0 degrees 12 minutes East 934.6
varas to the place of beginning.
Containing an area of 331 acres, more or less.
CHAPTER 2—ARCTIC COASTAL PLAIN
LEASING AND REVENUE ACT
SEC. 5312. SHORT TITLE.
This chapter may be cited as the ’Arctic Coastal Plain
Leasing and Revenue Act of 1995’’.
SEC. 5322. DEFINITIONS.
When used in this chapter the term—
(1) ‘‘Coastal Plain’’ means that area identified
as such in the map entitled ‘‘Arctic National Wildlife
Refuge’’, dated August 1980, as referenced in section
1002(b) of the Alaska National Interest Lands Con-
servation Act of 1980 (16 U.S.C. 3142(b)(1)) compris-
ing approximately 1, 549,000 acres; and
(2) ‘‘Secretary’’ except as otherwise provided,
means the Secretary of the Interior or the Secretary’s
designee.
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SEC. 5333. LEASING PROGRAM FOR LANDS WITHIN THE
COASTAL PLAIN.
(a) AUTHORIZATION.—The Congress hereby authorizes
and directs the Secretary, acting through the Bureau of
Land Management in consultation with the Fish and Wild-
life Service and other appropriate Federal officers and
agencies, to take such actions as are necessary to establish
and implement a competitive oil and gas leasing program
that will result in an environmentally sound program for
the exploration, development, and production of the oil and
gas resources of the Coastal Plain and to administer the
provisions of this chapter through regulations, lease terms,
conditions, 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, subsistence resources, and the environment,
and shall require the application of the best commercially
available technology for oil and gas exploration, develop-
ment, and production, on all new exploration, development,
and production operations, and whenever practicable, on
existing operations, and in a manner to ensure the receipt
of fair market value by the public for the mineral resources
to be leased.
(b) REPEAL.—The prohibitions and limitations con-
tained in section 1003 of the Alaska National Interest
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Lands Conservation Act of 1980 (16 U.S.C. 3143) are here-
by repealed.
(c) COMPATIBILITY.—Congress hereby determines that
the oil and gas leasing program and activities authorized
by this section in the Coastal Plain are compatible with
the purposes for which the Arctic National Wildlife Refuge
was established, and that no further findings or decisions
are required to implement this determination.
(d) SOLE AUTHORITY.—This chapter shall be the sole
authority for leasing on the Coastal Plain. Provided, That
nothing in this chapter shall be deemed to expand or limit
state and local regulatory authority.
(e) 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 .
(f) SPECIAL AREAS.—The Secretary, after consultation
with the State of Alaska, City of Kaktovik, and the North
Slope Borough, is authorized to designate up to a total of
45,000 acres of the Coastal Plain as Special Areas and close
such areas to leasing if the Secretary determines that these
Special Areas are of such unique character and interest so
as to require special management and regulatory protec-
tion. The Secretary may, however, permit leasing of all or
portions of any Special Areas within the Coastal Plain by
setting lease terms that limit or condition surface use and
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occupancy by lessees of such lands but permit the use of
horizontal drilling technology from sites on leases located
outside the designated Special Areas.
(g) LIMITATION ON CLOSED AREAS.—The Secretary’s
sole authority to close lands within the Coastal Plain to
oil and gas leasing and to exploration, development, and
production is that set forth in this subtitle.
(h) CONVEYANCE.—In order to maximize federal reve-
nues by removing clouds on title of lands and clarifying
land ownership patterns within the Coastal Plain, the Sec-
retary, notwithstanding the provisions of section 1302(h)(2)
of the Alaska National Interest Lands Conservation Act (16
U.S.C. 3192(h)(2)), is authorized and directed to convey (1)
to the Kaktovik Inupiat Corporation the surface estate of
the lands described in paragraph 2 of Public Land Order
6959, to the extent necessary to fulfill the corporation’s enti-
tlement under section 12 of the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1611), and (2) to the Arctic Slope Re-
gional Corporation the subsurface estate beneath such sur-
face estate pursuant to the August 9, 1983, agreement be-
tween the Arctic Slope Regional Corporation and the Unit-
ed States of America.
SEC. 5334. RULES AND REGULATIONS.
(a) PROMULGATION.—The Secretary shall prescribe
such rules and regulations as may be necessary to carry
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out the purposes and provisions of this chapter, including
rules and regulations relating to protection of the fish and
wildlife, their habitat, subsistence resources, and the envi-
ronment of the Coastal Plain. Such rules and regulations
shall be promulgated no later than fourteen months after
the date of enactment of this chapter and shall, as of their
effective date, apply to all operations conducted under a
lease issued or maintained under the provisions of this
chapter and all operations on the Coastal Plain related to
the leasing, exploration, development and production of oil
and gas.
(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. 5335. 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-
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gress to be adequate to satisfy the legal and procedural re-
quirements of the National Environmental Policy Act of
1969 with respect to actions authorized to be taken by the
Secretary to develop and promulgate the regulations for the
establishment of the leasing program authorized by this
chapter, to conduct the first lease sale and any subsequent
lease sale authorized by this chapter, and to grant rights-
of-way and easements to carry out the purposes of this
chapter.
SEC. 5336. LEASE SALES.
(a) LEASE SALES.—Lands may be leased pursuant to
the provisions of this chapter 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).
(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 (c)) from,
a lease sale; and
(2) public notice of and comment on designation
of areas to be included in, or excluded from, a lease
sale.
(c) LEASE SALES ON COASTAL PLAIN.—The Secretary
shall, by regulation, provide for lease sales of lands on the
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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 no less than two hundred thou-
sand acres and no more than three hundred thousand acres
shall be offered. If the total acreage nominated is less than
two hundred thousand acres, the Secretary shall include in
such sale any other acreage which he believes has the highest
resource potential, but in no event shall more than three
hundred thousand acres of the Coastal Plain be offered in
such sale. With respect to subsequent lease sales, the Sec-
retary shall offer for lease no less than two hundred thou-
sand acres of the Coastal Plain. The initial lease sale shall
be held within twenty months of the date of enactment of
this chapter. The second lease sale shall be held no later
than twenty-four months after the initial sale, with addi-
tional sales conducted no later than twelve months there-
after so long as sufficient interest in development exists to
warrant, in the Secretary’s judgment, the conduct of such
sales.
SEC. 5337. GRANT OF LEASES BY THE SECRETARY.
(a) IN GENERAL.—The Secretary is authorized to
grant to the highest responsible qualified bidder by sealed
competitive cash bonus bid any lands to be leased on the
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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
the Attorney General shall advise the Secretary with respect
to such review, including any recommendation for the
nonacceptance of any bid or the imposition of terms or con-
ditions on any lease, as may be appropriate to prevent any
situation inconsistent with the antitrust laws.
(c) SUBSEQUENT TRANSFERS.—No lease issued under
this chapter may be sold, exchanged, assigned, sublet, or oth-
erwise 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 chapter 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. 5338. LEASE TERMS AND CONDITIONS.
An oil or gas lease issued pursuant to this chapter
shall—
(1) be for a tract consisting of a compact area
not to exceed five thousand seven hundred sixty acres,
or nine 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 5337 of this chapter;
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(4) require that exploration activities pursuant
to any lease issued or maintained under this chapter
shall be conducted in accordance with an exploration
plan or a revision of such plan approved by the Sec-
retary;
(5) require that all development and production
pursuant to a lease issued or maintained pursuant to
this chapter shall be conducted in accordance with de-
velopment and production plans approved by the Sec-
retary;
(6) require posting of bond as required by section
5339 of this chapter;
(7) provide that the Secretary may close, on a
seasonal basis, portions of the Coastal Plain to ex-
ploratory drilling activities as necessary to protect
caribou calving areas and other species of fish and
wildlife;
(8) contain such provisions relating to rental
and other fees as the Secretary may prescribe at the
time of offering the area for lease;
(9) provide that the Secretary may direct or as-
sent to the suspension of operations and production
under any lease granted under the terms of this chap-
ter in the interest of conservation of the resource or
where there is no available system to transport the re-
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source. If such a suspension is directed or assented to
by the Secretary, any payment of rental prescribed by
such lease shall be suspended during such period of
suspension of operations and production, and the
term of the lease shall be extended by adding any such
suspension period thereto;
(10) provide that whenever the owner of a
nonproducing lease fails to comply with any of the
provisions of this chapter, or of any applicable provi-
sion of Federal or State environmental law, or of the
lease, or of any regulation issued under this chapter,
such lease may be canceled by the Secretary if such
default continues for more than thirty days after
mailing of notice by registered letter to the lease
owner at the lease owner’s record post office address
of record;
(11) provide that whenever the owner of any pro-
ducing lease fails to comply with any of the provi-
sions of this chapter, or of any applicable provision
of Federal or State environmental law, or of the lease,
or of any regulation issued under this chapter, such
lease may be forfeited and canceled by any appro-
priate proceeding brought by the Secretary in any
United States district court having jurisdiction under
the provisions of this chapter;
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(12) provide that cancellation of a lease under
this chapter shall in no way release the owner of the
lease from the obligation to provide for reclamation of
the lease site;
(13) allow the lessee, at the discretion of the Sec-
retary, to make written relinquishment of all rights
under any lease issued pursuant to this chapter. The
Secretary shall accept such relinquishment by the les-
see of any lease issued under this chapter where there
has not been surface disturbance on the lands covered
by the lease;
(14) provide that for the purpose of conserving
the natural resources of any oil or gas pool, field, or
like area, or any part thereof, and in order to avoid
the unnecessary duplication of facilities, to protect the
environment of the Coastal Plain, and to protect 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
enter into such agreements as are necessary or appro-
priate for the protection of the United States against
drainage;
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(15) 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;
(16) 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;
(17) provide that the standard of reclamation for
lands required to be reclaimed under this chapter be,
as nearly as practicable, a condition capable of 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;
(18) contain the terms and conditions relating to
protection of fish and wildlife, their habitat, and the
environment, as required by section 5333(a) of this
chapter;
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(19) provide that the holder of a lease, its agents,
and contractors use best efforts to provide a fair
share, as determined by the level of obligation pre-
viously agreed to in the 1974 agreement implement-
ing Section 29 of the Federal Agreement and Grant
of Right of Way for the Operation of the Trans-Alas-
ka Pipeline, of employment and contracting for Alas-
ka Natives and Alaska Native Corporations from
throughout the State; and
(20) contain such other provisions as the Sec-
retary determines necessary to ensure compliance
with the provisions of this chapter and the regulations
issued under this chapter.
SEC. 5339. 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
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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—
(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) set by the Secretary consistent with the type
of operations proposed, to provide the means for rapid
and effective cleanup, and to minimize damages re-
sulting from an oil spill, the escape of gas, refuse, do-
mestic 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-
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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
bond, surety, or other financial arrangement has been ter-
minated.
SEC. 5340. 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 chapter shall provide the Sec-
retary access to all data and information from any lease
granted pursuant to this chapter (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) is provided in good faith by the
lessee or permittee, such lessee or permittee shall not be re-
sponsible for any consequence of the use or of reliance upon
such processed and analyzed information.
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(3) Whenever any data or information is provided to
the Secretary, pursuant to paragraph (1)—
(A) by a lessee or permittee, in the form
and manner of processing which is utilized by
such lessee or permittee in the normal conduct of
business, the Secretary shall pay the reasonable
cost of reproducing such data and information;
or
(B) by a lessee or permittee, in such other
form and manner of processing as the Secretary
may request, the Secretary shall pay the reason-
able cost of processing and reproducing such
data and information.
(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 re-
lease of such information.
SEC. 5341. EXPEDITED JUDICIAL REVIEW.
(a) Any complaint seeking judicial review of any pro-
vision in this chapter, or any other action of the Secretary
under this chapter may be filed in any appropriate district
court of the United States, and such complaint must be filed
within ninety days from the date of the action being chal-
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lenged, or after such date if such complaint is based solely
on grounds arising after such ninetieth day, in which case
the complaint must be filed within ninety days after the
complainant knew or reasonably should have known of the
grounds for the complaint: Provided, That any complaint
seeking judicial review of an action of the Secretary in pro-
mulgating any regulation under this chapter may be filed
only in the United States Court of Appeals for the District
of Columbia.
(b) Actions of the Secretary with respect to which re-
view could have been obtained under this section shall not
be subject to judicial review in any civil or criminal pro-
ceeding for enforcement.
SEC. 5342. 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, subsist-
ence resources, their habitat, and the environment of the
Coastal Plain. Such terms and conditions shall include re-
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quirements that facilities be sited or modified so as to avoid
unnecessary duplication of roads and pipelines. The regula-
tions issued as required by section 5334 of this chapter shall
include provisions granting rights-of-way and easements
across the Coastal Plain.
SEC. 5343. ENFORCEMENT OF SAFETY AND 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 chapter.
(b) RESPONSIBILITY OF HOLDERS OF LEASE.—It shall
be the responsibility of any holder of a lease under this
chapter to—
(1) maintain all operations within such lease
area in compliance with regulations intended to pro-
tect persons and property on, and fish and wildlife,
their habitat, subsistence resources, and the environ-
ment of, the Coastal Plain; and
(2) allow prompt access at the site of any oper-
ations subject to regulation under this chapter 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 chapter or
conditions contained in any lease issued pursuant to
this chapter 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. 5344. NEW REVENUES.
(a) DISTRIBUTION OF REVENUES.—(1) Notwithstand-
ing any other provision of law, all revenues received by the
Federal Government from competitive bids, sales, bonuses,
royalties, rents, fees, or interest derived from the leasing of
oil and gas within the Coastal Plain shall be deposited into
the Treasury of the United States, solely as provided in this
subsection.
(2) Fifty percent of all revenues referred to in para-
graph (1) shall be paid by the Secretary of the Treasury
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semiannually to the State of Alaska, on March 30 and Sep-
tember 30 of each year.
(3)(A) The Secretary of the Treasury is directed to
monitor the revenues deposited into the Treasury from oil
and gas leases issued under the authority of this chapter.
Except as provided in subparagraph (B), all monies depos-
ited into the Treasury from such oil and gas leases in excess
of $2,600,000,000 shall be distributed as follows:
(i) Fifty percent shall be paid to the State of
Alaska in the manner provided in this subsection;
and
(ii) Fifty percent shall be deposited into a spe-
cial fund established in the Treasury of the United
States known as the ‘‘National Park, Refuge, and
Fish and Wildlife Renewal and Protection Fund
(hereinafter in this section referred to as the ‘‘renewal
fund’’).
(B) Deposits into the renewal fund shall not exceed
$250,000,000 over the life of the renewal fund. Monies in
excess of such amount shall be deposited as miscellaneous
receipts in the Treasury of the United States.
(C) Deposits into the renewal fund shall remain avail-
able until expended. The Secretary of the Treasury is di-
rected to develop procedures for use of the renewal fund to
ensure accountability and demonstrated results.
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(b) USE OF RENEWAL FUND.—Monies 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 shall
be expended by the Secretary as follows:
(1) Twenty-five percent shall be used for infra-
structure needs at units of the National Park System,
including but not limited to, facility refurbishment,
repair and replacement, interpretive media and ex-
hibit repair and replacement, and Infrastructure
projects associated with park resource protection;
(2) Twenty-five percent shall be used for infra-
structure needs at units of the National Wildlife Ref-
uge System, including but not limited to, facility re-
furbishment, repair and replacement, interpretive
media and exhibit repair and replacement, and infra-
structure projects associated with refuge resource pro-
tection;
(3) Twenty-five percent shall be used for acquisi-
tion of important habitat lands for threatened or en-
dangered species from owners of private property.
Such lands shall be acquired solely on a willing seller
basis and shall be managed by the Secretary for the
conservation of such species pursuant to the terms of
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section 5 of the Endangered Species Act of 1973 (16
U.S.C. 1534); and
(4) Twenty-five percent shall be available for
wetlands projects in accordance with the applicable
provision of the North American Wetlands Conserva-
tion Act (16 U.S.C. 4401 et seq.).
(c) COMMUNITY ASSISTANCE.—There is hereby estab-
lished a Community Assistance Fund in the Treasury into
which shall be deposited $30,000,000 from revenues derived
from the federal share of the first lease sale authorized under
this chapter. The Secretary of the Treasury shall invest the
funds in the Community Assistance Fund in interest bear-
ing government securities. No more than $5,000,000 per
year from the Community Assistance Fund, shall be avail-
able to the Secretary for distribution, upon application and
without further appropriation, to organized boroughs, other
municipal subdivisions of the State of Alaska, and recog-
nized Indian Reorganization Act entities which are directly
impacted by the exploration and production of oil and gas
on the Coastal Plain authorized by this chapter to provide
public and social services and facilities required in connec-
tion with such activities.
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CHAPTER 3—WATER PROJECTS
Subchapter A—Irrigation Prepayment
SEC. 5351. 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:
(1) 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: Pro-
vided, That the discount shall be adjusted by any amounts
necessary to compensate the Federal Government for the di-
rect or indirect loss of future tax revenues if the individual
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or district plans to use federally tax-exempt financing for
such prepayment.’’;
(2) by striking ‘‘lands in a district’’ and insert-
ing: ‘‘lands in a district, or lands owned or leased by
a person’’;
(3) by striking ‘‘obligation of a district’’ and in-
serting: ‘‘obligation of a district or a person’’;
(4) by striking ‘‘enactment of this Act.’’ and in-
serting: ‘‘enactment of this Act or as otherwise pro-
vided for in this section. Any additional capital costs
incurred after the date of such prepayment shall be
recoverable as a separate obligation and shall not be
considered to be a new or supplemental benefit for the
purposes of this act nor cause the full cost pricing
limitation of this Act or the ownership limitations
contained in any provision of federal reclamation law
to apply to the lands to which such capital costs
apply.’’.
SEC. 5352. CONFORMING AMENDMENT.
Subsection 213 (c) of the Reclamation Reform Act of
1982 (43 U.S.C. 390 mm (c)) is repealed.
Subchapter B—Hetch Hetchy
SEC. 5353. HETCH HETCHY DAM.
Section 7 of the Act of December 19, 1913 (38 Stat.
242, chapter 4), is amended—
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(1) by striking ‘‘$30,000’’ in the first sentence
and inserting ‘‘$2,000,000’’; and
(2) by amending the second and third sentences
to read as follows: ‘‘These funds shall be placed in a
separate fund by the United States and, notwith-
standing any other provision of law, shall not be
available for obligation or expenditure until appro-
priated by the Congress. The highest priority use of
the funds shall be for annual operation of Yosemite
National Park, with the remainder of any funds to be
used to fund operations of other national parks in the
State of California.’’.
Subchapter C—Collbran Project
SEC. 5355. COLLBRAN PROJECT.
(a) SHORT TITLE.—This subchapter may be cited as
the ‘‘Collbran Project Unit Conveyance Act’’.
(b) DEFINITIONS.—For purposes of this subchapter:
(1) DISTRICTS.—The term ‘‘Districts’’ means the
Ute Water Conservancy District and the Collbran
Conservancy District (including their successors and
assigns), which are political subdivisions of the State
of Colorado.
(2) FEDERAL
RECLAMATION
LAWS.—The term
‘‘Federal reclamation laws’’ means the Act of June
17, 1902 and Acts amendatory thereof or supple-
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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 The Vega Recreation Facilities);
(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;
(I) the diversion structure in the tailrace of
the Lower Molina Power Plant;
(J) all substations and switchyards;
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(K) a non-exclusive easement for the use of
existing easements or rights-of-way owned by the
United States on or across nonfederal lands
which are necessary for access to Project facili-
ties;
(L) title to lands reasonably necessary for
all Project facilities except for land described in
subparagraph (K) or subsection (c)(1)(B) or (C);
(M) all permits and contract rights held by
the Bureau of Reclamation, including, without
limitation, contract or other rights relating to
the operation, use, maintenance, repair, or re-
placement of the water storage reservoirs located
on the Grand Mesa which are operated as a part
of the Project;
(N) all equipment, parts inventories, and
tools;
(O) all additions, replacements, betterments,
and appurtenances to any of the above; and
(P) a copy of all data, plans, designs, re-
ports, records, or other materials, whether in
writing or in any form of electronic storage re-
lating specifically to the Project.
(4) VEGA
RECREATION
FACILITIES.—The term
‘‘Vega Recreation Facilities’’ includes, but is not lim-
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ited to, buildings, campgrounds, picnic areas, parking
lots, fences, boat docks and ramps, electrical lines,
water and sewer systems, trash and toilet facilities,
roads and trails, and other structures and equipment
used for State park purposes at and near Vega Res-
ervoir such as recreation, maintenance and daily and
overnight visitor use, and lands above the high water
level of Vega Reservoir within the area previously de-
fined by the Department of the Interior as the ‘‘Res-
ervoir Area Boundary’’ which have not historically
been utilized for Collbran Project water storage and
delivery facilities, together with an easement for pub-
lic access for recreational purposes to Vega Reservoir
and the water surface thereof, and construction, oper-
ation, maintenance and replacement of such recre-
ation facilities below the high water line. Such facili-
ties shall also include improvements constructed or
added as a result of the agreements referred to in sec-
tion (c)(6).
(c) CONVEYANCE OF THE COLLBRAN PROJECT.—
(1) IN GENERAL.—
(A) CONVEYANCE TO DISTRICTS.—The Sec-
retary of the Interior shall convey to the Dis-
tricts all right, title, and interest of the United
States in and to the Project, as described in sub-
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section (b)(3), by quitclaim deed and bill of sale,
without warranties, in the last quarter of fiscal
year 2000, subject only to the requirements of
this section. Until such conveyance occurs, the
Bureau of Reclamation shall continue to provide
for the operation, maintenance, repair, and re-
placement of Project facilities and the storage
reservoirs on the Grand Mesa to the extent such
responsibilities are the responsibility of the Bu-
reau of Reclamation and have not been delegated
to the Districts prior to the date of enactment of
this Act or are delegated or transferred to the
Districts by agreement thereafter, so that at the
time of conveyance such facilities are in the same
condition as, or better condition than, the condi-
tion of the facilities on the date of enactment of
this Act.
(B) EASEMENTS ON NATIONAL FOREST SYS-
TEM LANDS.—The Secretary of Agriculture shall
grant, in the last quarter of fiscal year 2000,
subject only to the requirements of this section;
(i) a non-exclusive easement on and across Na-
tional Forest System lands to the Districts for
ingress and egress on existing access routes to
each existing component of the Project and to the
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existing storage reservoirs on the Grand Mesa
which are operated as a part of the Project; (ii)
a non-exclusive easement on National Forest
System lands for the operation, use, mainte-
nance, repair, and replacement, but not enlarge-
ment, of the existing storage reservoirs on the
Grand Mesa to the owners and operators of such
reservoirs which are operated as a part of the
Project; which easement may be exercised in the
event that the existing land use authorizations
for such storage reservoirs are restricted, termi-
nated, relinquished, or abandoned, and which
easement shall not be subject to conditions or re-
quirements that interfere with or limit the use of
such reservoirs for water supply or power pur-
poses; and (iii) a non-exclusive easement to the
Districts for the operation, use, maintenance, re-
pair, and replacement, but not enlargement, of
those components of Project facilities which are
located on National Forest System lands, subject
to the requirement that the Districts shall pro-
vide reasonable notice to and the opportunity for
consultation with the designated representative of
the Secretary of Agriculture for non-routine,
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non-emergency activities that occur on such ease-
ments.
(C) EASEMENTS TO DISTRICTS FOR SOUTH-
SIDE CANAL.—The Secretary of the Interior shall
grant to the Districts, in the last quarter of fiscal
year 2000, subject only to the requirements of
this section, (i) a non-exclusive easement on and
across lands administered by agencies within the
Department of the Interior for ingress and egress
on existing access routes to and along the South-
side Canal, and (ii) a non-exclusive easement for
the operation, use, maintenance, repair, and re-
placement of the Southside Canal, subject to the
requirement that the Districts shall provide rea-
sonable notice to and the opportunity for con-
sultation with the designated representative of
the Secretary of the Interior for non-routine,
non-emergency activities that occur on such ease-
ments.
(2) RESERVATION.—The transfer of rights and
interests pursuant to paragraphs (1)(A), (B), and (C)
shall reserve to the United States all minerals, includ-
ing hydrocarbons, and a perpetual right of public ac-
cess over, across, under, and to the portions of the
Project which on the date of enactment of this Act
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were open to public use for fishing, boating, hunting,
and other outdoor recreation purposes and other pub-
lic uses such as grazing, mineral development and
logging: Provided, That the United States may allow
for continued public use and enjoyment of such por-
tions of the Project for recreational activities and
other public uses conducted as of the date of enact-
ment of this Act.
(3) CONVEYANCE TO STATE OF COLORADO.—All
right, title, and interest in the Vega Recreation Fa-
cilities shall remain in the United States until the
terms of the agreements referred to in paragraph (6)
have been fulfilled by the United States. At such time,
all right, title, and interest in the Vega Recreation
Facilities shall be conveyed by the Secretary of the In-
terior to the State of Colorado, Division of Parks and
Outdoor Recreation.
(4) PAYMENT.—
(A) IN GENERAL.—At the time of transfer,
the Districts shall pay to the United States
$12,900,000 ($12,300,000 of which represents the
net present value of the outstanding repayment
obligations for the Project), of which—
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(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 Grand Valley
Water Management Project for the purpose
of recovering endangered fish in the Upper
Colorado River Basin, as identified in the
Recovery Implementation Program for En-
dangered Fish Species in the Upper Colo-
rado River Basin, or such other component
of the Recovery Implementation Program
within Colorado that is selected with the
concurrence of the Governor of the State of
Colorado.
(B) SOURCE
OF
FUNDS.—Funds for the
payment to the extent of the amount specified in
subparagraph (A) shall not be derived from the
issuance or sale, prior to the conveyance, of State
or local bonds the interest on which is exempt
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from taxation under section 103 of the Internal
Revenue Code of 1986.
(5) OPERATION OF PROJECT.—
(A) IN GENERAL.—The Project was author-
ized and constructed to place water to beneficial
use for authorized purposes within the State of
Colorado. The Project shall be operated and used
by the Districts for a period of 40 years after the
date of enactment of this Act for the purposes for
which the Project was authorized under the Act
of July 3, 1952 (66 Stat. 325, chapter 565). The
Districts shall attempt to the extent practicable,
taking into consideration historic Project oper-
ations, to notify the State of Colorado of changes
in historic Project operations which may ad-
versely affect State park operations.
(B) REQUIREMENTS.—During the 40-year
period described in subparagraph (A)—
(i) the Districts shall annually submit
to the Secretary of Agriculture and the Col-
orado Department of Natural Resources a
plan for operation of the Project, which
plan shall—
(I) report on Project operations
for the previous year;
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(II) provide a description of the
manner of Project operations antici-
pated for the forthcoming year, which
shall be prepared after consultation
with the designated representatives of
the Secretary of Agriculture, the Board
of County Commissioners of Mesa
County, Colorado, and the Colorado
Department of Natural Resources; and
(III) certify that the Districts
have operated and will operate and
maintain the Project facilities in ac-
cordance with sound engineering prac-
tices; and
(ii) subject to subsection (d), all elec-
tric power generated by operation of the
Project shall be made available to and be
marketed by the Western Area Power Ad-
ministration (including its successors or as-
signs).
(6) 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
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Vega Reservoir, which agreements shall continue to be
performed by the parties thereto according to the
terms of the agreements.
(d) OPERATION OF THE POWER COMPONENT.—
(1) CONFORMITY
TO
HISTORIC
OPERATIONS.—
The power component and facilities of the Project
shall be operated in substantial conformity with the
historic operations of the power component and facili-
ties (including recent operations in a peaking mode).
(2) POWER MARKETING.—
(A) 
EXISTING
MARKETING
ARRANGE-
MENT.—The 
Post-1989 
Marketing 
Criteria,
which provide for the marketing of power gen-
erated by the power component of the Project as
part of the output of the Salt Lake City Area In-
tegrated Projects, shall no longer be binding on
the Project upon conveyance of the Project under
subsection (c)(1).
(B) AFTER TERMINATION OF EXISTING MAR-
KETING ARRANGEMENT.—
(i) IN
GENERAL.—After the convey-
ance, the Districts shall offer all power pro-
duced by the power component of the Project
to the Western Area Power Administration
or its successors or assigns (referred to in
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this section as ‘‘Western’’), which, in con-
sultation with its affected preference cus-
tomers, shall have the first right to purchase
such power at the rates established in ac-
cordance with clause (ii). If Western de-
clines to purchase the power after consulta-
tion with its affected preference customers,
such power shall then be offered at the same
rates first to Western’s preference customers
located in the Salt Lake City Area Inte-
grated Projects marketing area (referred to
in this section as the ‘‘SLCAIP preference
customers’’). Thereafter, such power may be
sold to any other party: Provided, however,
That no such sale may occur at rates less
than rates established in accordance with
clause (ii) unless such power is first offered
at such lesser rate first to Western and then
to its SLCAIP preference customers.
(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
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(I) annual debt service and/or
recoupment of the cost of capital for
the amount specified in subsection
(c)(4)(A)(i) of this section, less the sum
of $310,000 (which is the net present
value of the outstanding repayment ob-
ligation of the Collbran Conservancy
District), and
(II) the cost of operation, mainte-
nance, and replacement of the power
component of the Project.
Such costs and rate shall be determined in
a manner consistent with the current prin-
ciples followed by the Secretary of the Inte-
rior and by Western in its annual power
and repayment study.
(e) LICENSE.—
(1) Prior to the conveyance of the Project to the
Districts, the Commission shall issue to the Districts
a license or licenses as appropriate under part I of
the Federal Power Act, as amended, (16 U.S.C. 791
et seq.), authorizing for a term of 40 years the contin-
ued operation and maintenance of the power compo-
nent of the Project.
(2) The license issued pursuant to subsection (1):
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(A) shall be for the purpose of operating,
using, maintaining, repairing, and replacing the
power component of the Project as authorized by
the Act of July 3, 1952 (66 Stat. 325, chapter
565);
(B) shall be conditioned upon the require-
ment that the power component of the project
continue to be operated and maintained in ac-
cordance with the authorized purposes of the
project;
(C) shall be subject only to the provisions of
Part I of the Federal Power Act, except the word
‘‘constructed’’ in section 3(10); the four provisos
of section 4(e); section 6 to the extent it requires
the licensee’s acceptance of those terms and con-
ditions of the Act that this subsection waives;
section 10(e) as concerns annual charges for the
use and occupancy of federal lands and facilities;
section 10(f); section 10(j); section 18; section 19;
section 20; and section 22 of the Federal Power
Act, 16 U.S.C. 796(10), 797(e), 799, 803(e),
803(f), 803(j), 811, 812, 813, and 815; and shall
not be subject to the standard ‘‘L-Form’’ license
conditions, published at 54 FPC 1792-1928
(1975), the Federal Land Policy and Manage-
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ment Act (43 U.S.C. 1701 et seq.), as amended,
section 2402 of the Energy Policy Act of 1992
(16 U.S.C. 797c), the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), the
Endangered Species Act of 1973 (16 U.S.C. 1531
et seq.), the Wild and Scenic Rivers Act (16
U.S.C. 1271 et seq.), the Federal Water Pollution
Control Act (commonly known as the ‘‘Clean
Water Act’’) (33 U.S.C. 1251 et seq.), the Na-
tional Historic Preservation Act (16 U.S.C. 470
et seq.), the Coastal Zone Management Act of
1972 (16 U.S.C. 1451 et seq.), the Fish and
Wildlife Coordination Act (16 U.S.C. 661 et
seq.), or any other Act otherwise applicable to
the licensing of the project.
(3) The license issued under paragraph (1) is
deemed to meet the licensing standards of the Federal
Power Act, including section 10(a) and the last sen-
tence of section 4(e), 16 U.S.C. 797(e).
(4) Any power site reservation established by the
President, the Secretary of the Interior, or pursuant
to section 24 of the Federal Power Act (16 U.S.C.
818) or any other law, which exists on any lands,
whether federally or privately owned, that are in-
cluded within the boundaries of the project shall be
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vacated by operation of law upon issuance of the li-
cense for the project.
(5) All requirements of Part I of the Federal
Power Act and of any other Act applicable to the li-
censing of a hydroelectric project shall apply to the
project upon expiration of the license issued under
this section.
(6) For purposes of this section, ‘‘Commission’’
means the Federal Energy Regulatory Commission.
(7) The operation of the Project shall be subject
to all applicable state and federal laws subsequent to
the issuance of the license pursuant to paragraph (1).
(f) INAPPLICABILITY OF NEPA.—Neither the convey-
ance of the Project nor the issuance of easements pursuant
to this section constitutes a major Federal action within
the meaning of the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.), including any regulations
issued under such Act.
(g) INAPPLICABILITY OF PRIOR AGREEMENTS AND OF
FEDERAL RECLAMATION LAWS.—On conveyance of the
Project to the 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-
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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.
(h) DISTRICTS’ LIABILITY.—The Districts shall be lia-
ble, to the extent allowed under State law, for all acts or
omissions relating to the operation and use of the Project
by the Districts that occur subsequent to the conveyance
under section (c), including damages to Federal lands or
facilities which result from the failure of Project facilities.
(i) EFFECT ON STATE LAW.—Nothing in this section
shall be construed to impair the effectiveness of any State
or local law (including regulations) relating to land use.
(j) TREATMENT OF SALES FOR PURPOSES OF CERTAIN
LAWS.—The sales of assets under this subchapter shall not
be considered a disposal of Federal surplus property under
the following provisions of law:
(1) Section 203 of the Federal Property and Ad-
ministrative Services Act of 1949 (40 U.S.C. 484).
(2) Section 13 of the Surplus Property Act of
1944 (50 U.S.C. App. 1622).
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Subchapter D—Sly Park
SEC. 5356. SLY PARK.
(a) SHORT TITLE.—This subchapter may be cited as
the ‘‘Sly Park Unit Conveyance Act’’.
(b) DEFINITIONS.—For purposes of this subchapter:
(1) The term ‘‘El Dorado Irrigation District’’ or
‘‘District’’ means a political subdivision of the State
of California duly organized, existing, and acting
pursuant to the laws thereof with its principal place
of business in the city of Placerville, El Dorado Coun-
ty, California.
(2) The term ‘‘Secretary’’ means the Secretary of
the Interior.
(3) The term ‘‘Sly Park Unit’’ means the Sly
Park Dam and Reservoir, Camp Creek Diversion
Dam and Tunnel and conduits and canals as author-
ized under the Act entitled ‘‘An Act to authorize the
American River Basin development, California, for
irrigation and reclamation, and for other purposes’’,
approved October 14, 1949 (63 Stat. 852 chapter
690), together with all other facilities owned by the
United States including those used to convey and
store water delivered from Sly Park, as well as all
recreation facilities associated thereto.
(c) SALE OF THE SLY PARK UNIT.—
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(1) IN GENERAL.—The Secretary shall, on or be-
fore December 31, 1997, and upon receipt of the pay-
ment for the original construction debt described in
paragraph (2), sell and convey to the El Dorado Irri-
gation District all right, title, and interest of the
United States in and to the Sly Park Unit. At the
time the Sly Park Unit is conveyed, the Secretary
shall also transfer and assign to the District the water
rights relating to the Sly Park Unit held in trust by
the Secretary for diversion and storage under Califor-
nia State permits numbered 2631, 5645A, 10473, and
10474.
(2) SALE
PRICE.—The sale price for the Sly
Park Unit shall be $3,993,982, which is the outstand-
ing balance for the original construction of the Sly
Park Unit payable to the United States. Payment
shall be deposited as miscellaneous receipts in the
Treasury and credited to the Central Valley Project
Restoration Fund. Payment of such price shall extin-
guish all payment obligations under contract num-
bered 14-06-200-949 between the District and the Sec-
retary.
(d) NO ADDITIONAL ENVIRONMENTAL IMPACT.—The
Congress specifically finds that (A) the sale, conveyance and
assignment of the Sly Park Unit and water rights under
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this section involves the transfer of the ownership and oper-
ation of an existing ongoing water project, (B) the Sly Park
Unit operation, facilities, and water rights have been, and
after the sale and transfer will continue to be, committed
to maximum reasonable and beneficial use for existing serv-
ices, and (C) the sale, conveyance and assignment of the
Sly Park Unit and water rights does not involve any addi-
tional growth or expansion of the project or other environ-
mental impacts. Consequently, the sale, conveyance and as-
signment of the Sly Park Unit and water rights shall not
be subject to environmental review pursuant to the National
Environmental Policy Act of 1969 (42 U.S.C. 4332) or en-
dangered species review or consultation pursuant to section
7 of the Endangered Species Act of 1973 (16 U.S.C. 1536).
(e) CERTAIN
CONTRACT
OBLIGATIONS
NOT
AF-
FECTED.—The sale of the Sly Park Unit under this section
shall not affect the payment obligations of the District
under the contract between the District and the Secretary
numbered 14-06-200-7734, as amended by contracts num-
bered 14-06-200-4282A and 14-06-200-8536A.
(f) TREATMENT OF SALES FOR PURPOSES OF CERTAIN
LAWS.—The sales of assets under this subchapter part shall
not be considered a disposal of Federal surplus property
under the following provisions of law:
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(1) Section 203 of the Federal Property and Ad-
ministrative Services Act of 1949 (40 U.S.C. 484).
(2) Section 13 of the Surplus Property Act of
1944 (50 U.S.C. App. 1622).
Subchapter E—Central Utah Project
SEC. 5357. PREPAYMENT OF CERTAIN REPAYMENT CON-
TRACTS BETWEEN THE UNITED STATES AND
THE CENTRAL UTAH WATER CONSERVANCY
DISTRICT.
The second sentence of section 210 of the Central Utah
Project Completion Act (106 Stat. 4624) is amended to read
as follows: ‘‘The Secretary shall allow for prepayment of
the repayment contract between the United States and the
Central Utah Water Conservancy District dated December
28, 1965, and supplemented on November 26, 1985, provid-
ing for repayment of municipal and industrial water deliv-
ery facilities for which repayment is provided pursuant to
such contract, under terms and conditions similar to those
contained in the supplemental contract that provided for
the prepayment of the Jordan Aqueduct dated October 28,
1993. The prepayment may be provided in several install-
ments to reflect substantial completion of the delivery facili-
ties being prepaid and may not be adjusted on the basis
of the type of prepayment financing utilized by the District:
Provided That the District shall complete all payments au-
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thorized pursuant to this section by the end of fiscal year
2002.’’.
CHAPTER 4—FEDERAL OIL AND GAS
ROYALTIES
SEC. 5361. DEFINITIONS.
Section 3 of the Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1701 et seq.) is amended—
(1) by amending paragraph (7) to read as fol-
lows:
‘‘(7) ‘lessee’ means any person to whom the Unit-
ed States issues an oil and gas lease or any person
to whom operating rights in a lease have been as-
signed;’’; and
(2) by striking ‘‘and’’ at the end of paragraph
(15), by striking the period at the end of paragraph
(16) and inserting a semicolon, and by adding at the
end the following:
‘‘(17) ‘adjustment’ means an amendment to a
previously filed report on an obligation, and any ad-
ditional payment or credit, if any, applicable thereto,
to rectify an underpayment or overpayment on a
lease;
‘‘(18) ‘administrative proceeding’ means any De-
partment of the Interior agency process in which a
demand, decision or order issued by the Secretary or
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a delegated State is subject to appeal or has been ap-
pealed;
‘‘(19) ‘assessment’ means any fee or charge levied
or imposed by the Secretary or a delegated State other
than—
‘‘(A) the principal amount of any royalty,
minimum royalty, rental, bonus, net profit share
or proceed of sale;
‘‘(B) any interest; or
‘‘(C) any civil or criminal penalty;
‘‘(20) ‘commence’ means—
‘‘(A) with respect to a judicial proceeding,
the service of a complaint, petition, 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 delegated State 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) ‘delegated State’ means a State which,
pursuant to an agreement or agreements under sec-
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tion 205, performs authorities, duties, responsibilities,
or activities of the Secretary which may be performed
by a State under the Constitution of the United
States for all lands within the State, including, but
not limited to—
‘‘(A) activities under sections 111 and 115;
‘‘(B) collection, audit, lease and post-lease
management activities, and applicable enforce-
ment activities;
‘‘(C) inspections (including activities de-
scribed in section 108;
‘‘(D) approval of pooling, unitization, and
communitization agreements; and
‘‘(E) investigations;
‘‘(23) ‘demand’ means—
‘‘(A) an order to pay issued by the Sec-
retary or the applicable delegated State that has
a reasonable basis to conclude that the obligation
in the amount of the demand is due and owing;
or
‘‘(B) a separate written request by a lessee
which asserts an obligation due the lessee that
has a reasonable basis to conclude that the obli-
gation in the amount of the demand is due and
owing, but does not mean any royalty or produc-
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tion report, or any information contained there-
in, required by the Secretary or a delegated
State;
‘‘(24) ‘obligation’ means—
‘‘(A) any duty of the Secretary or, if appli-
cable, a delegated State—
‘‘(i) to take oil or gas royalty in kind
at or near the lease (unless the lease ex-
pressly provides for delivery at a different
location); 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 at or near the lease (unless the lease
expressly provides for delivery at a different
location); or
‘‘(ii) to pay, offset or credit monies in-
cluding but not limited to—
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‘‘(I) the principal amount of any
royalty, minimum royalty, rental,
bonus, net profit share or proceed of
sale;
‘‘(II) any interest;
‘‘(III) any penalty; or
‘‘(IV) 
any 
assessment, 
which
arises from or relates to any lease ad-
ministered by the Secretary for, or any
mineral leasing law related to, the ex-
ploration, production and development
of oil or gas on Federal lands or the
Outer Continental Shelf;
‘‘(25) ‘order to pay’ means a written order is-
sued by the Secretary or the applicable delegated
State which—
‘‘(A) asserts a specific, definite, and quan-
tified obligation claimed to be due, and
‘‘(B) specifically identifies the obligation by
lease, production month and monetary amount
of such obligation claimed to be due and ordered
to be paid, as well as the reason or reasons such
obligation is claimed to be due, but such term
does not include any other communication or ac-
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tion by or on behalf of the Secretary or a dele-
gated State;
‘‘(26) ‘overpayment’ means any payment by a
lessee in excess of an amount legally required to be
paid on an obligation and includes the portion of any
estimated payment for a 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;
‘‘(28) ‘penalty’ means a statutorily authorized
civil fine levied or imposed for a violation of this Act,
any mineral leasing law, or a term or provision of
a lease administered by the Secretary;
‘‘(29) ‘refund’ means the return of an overpay-
ment;
‘‘(30) ‘State concerned’ means, with respect to a
lease, a State which receives a portion of royalties or
other payments under the mineral leasing laws from
such lease;
‘‘(31) ‘underpayment’ means any payment or
nonpayment by a lessee that is less than the amount
legally required to be paid on an obligation; and
‘‘(32) ‘United States’ means the United States
Government and any department, agency, or instru-
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mentality thereof, the several States, the District of
Columbia, and the territories of the United States.’’.
SEC. 5362. MAXIMIZING RECEIPTS THROUGH STATE EF-
FORTS.
(a) GENERAL AUTHORITY.—Section 205(a) of the Fed-
eral Oil and Gas Royalty Management Act of 1982 (30
U.S.C. 1735(a)) is amended to read as follows:
‘‘(a) In order to provide incentives to States to maxi-
mize the amount of oil and gas receipts collected on lease
obligations within the six-year period of limitations, and
consequently to maximize the Federal share of such receipts
to the United States Treasury, upon written request of a
State, the State, pursuant to an agreement or agreements
and consistent with subsection (c), may perform all or part
of the authorities, duties, responsibilities, and activities of
the Secretary under this Act which may be delegated to a
State under the Constitution of the United States for all
Federal lands within the State. The delegated State shall
assume and perform the authorities, duties, responsibilities,
or activities delegated under this section. To avoid duplica-
tion of effort, any authority, duty, responsibility, or activ-
ity delegated to a State under this Act with respect to all
Federal lands within the State may not be carried out by
the Secretary. Under any such agreement, the Secretary
shall share oil or gas royalty management information.’’.
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(b) DETERMINATION.—Section 205(b) of the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C.
1735(b)) is amended by striking ‘‘is authorized to’’ and in-
serting ‘‘shall’’.
(c) FEDERAL-STATE
ROYALTY
COLLECTION
EF-
FORTS.—Subsection (c) section 205 of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1735) is
amended by striking ‘‘which define’’ and all that follows
and inserting ‘‘within 18 months after the date of enact-
ment of section 115, under which States may perform the
authorities, duties, responsibilities, and activities under
this title which are subject to delegation, based on the rec-
ommendations of the States concerned following consulta-
tion with affected persons. If the Secretary decides not to
follow any recommendations supported by all States con-
cerned, the Secretary shall justify such decision within 30
days after making such decision. In carrying out this sec-
tion the Secretary shall provide for reasonable flexibility to
a State to perform any authority, duty, responsibility or
activity delegated hereunder in a more efficient and cost-
effective manner and provide the States concerned a direct
role in determining such requirements, procedures and poli-
cies. To ensure efficient and timely collections of royalties
pursuant to this Act, the delegated States shall provide—
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‘‘(1) for the effective and efficient performance of
any authority, duty, responsibility or activity dele-
gated under this Act;
‘‘(2) for the consistent and uniform performance
among the delegated States of any authority, duty, re-
sponsibility or activity delegated under this Act;
‘‘(3) for valuation under the terms of the leases
and applicable Federal statutes; and
‘‘(4) for uniform reporting form and reporting
requirements for all Federal lessees, unless the State
and all affected parties otherwise agree.’’.
(d) PERFORMANCE.—Subsection (d) of section 205 of
the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1735) is amended by striking ‘‘, pertaining’’ and
all that follows and inserting the following: ‘‘for require-
ments pertaining to records and accounts to be maintained
and reporting procedures to be required by delegated States
under this section. The records and accounts under such re-
porting procedures shall be sufficient to allow the Secretary
to monitor the performance of any delegated State under
this section. The applicable delegated State and the Sec-
retary shall agree to terms and conditions for inclusion into
an agreement to perform all or part of the authorities, du-
ties, responsibilities, and activities under this title consist-
ent with subsection (c).’’.
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(e) STATE ACTIONS.—Section 204 of the Federal Oil
and Gas Royalty Management Act of 1982 (30 U.S.C. 1734)
is amended by adding at the end the following:
‘‘(d) With respect to enforcement of an obligation
under this Act, a State bringing an action under this sec-
tion shall enjoy no greater rights than the Secretary enjoys
under this Act.’’.
(f) SAVINGS PROVISION.—Nothing in the amendments
made by this section shall impair any agreement, or any
extension thereof, existing under section 205 as in effect on
the day before the date of enactment of this Act. Following
enactment of this Act, any State which is a party to an
existing agreement under such section under which the
State has been delegated audit or inspection responsibility,
may issue orders to pay, subpoenas, or notices to perform
restructured accounting and may continue to perform au-
dits or inspections under terms and conditions consistent
with the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1701 et seq.), as amended by this chapter.
(g) RECEIPTS.—Section 205(f) of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1735(f))
is amended by adding at the end the following: ‘‘Such costs
shall be allocable for the purposes of section 35(b) of the
Act entitled ‘‘An Act to promote the mining of coal, phos-
phate, oil, oil shale, gas, and sodium on the public domain’’,
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approved February 25, 1920 (commonly known as the
‘‘Mineral Leasing Act’’) (30 U.S.C. 191(b)) to the adminis-
tration and enforcement of laws providing for the leasing
of any onshore lands or interests in land owned by the Unit-
ed States. The Secretary shall compensate any State in the
next succeeding fiscal year for the aggregate amount of such
costs incurred but not compensated due to such allocation
for the current fiscal year. All money received from sales,
bonuses, royalties, and interest, including money claimed
to be due and owing pursuant to a delegation under this
section, shall be payable and paid to the Treasury of the
United States.’’.
SEC. 5363. SECRETARIAL AND DELEGATED STATES’ AC-
TIONS AND 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. SECRETARIAL AND DELEGATED STATES’ AC-
TIONS AND LIMITATION PERIODS.
‘‘(a) IN GENERAL.—All duties, responsibilities, and
activities with respect to a lease shall be performed by the
Secretary, delegated States, and lessees in a timely manner.
‘‘(b) LIMITATION PERIOD.—
‘‘(1) A judicial proceeding or demand which
arises from, or relates to an obligation, shall be com-
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menced within six years from the date on which the
obligation becomes due and if not so commenced shall
be barred. The Secretary, a delegated State, or a lessee
(A) shall not take any other or further action regard-
ing that obligation, including (but not limited to) the
issuance of any order, request, demand or other com-
munication seeking any document, accounting, deter-
mination, calculation, recalculation, payment, prin-
cipal, interest, assessment, or penalty or the initi-
ation, pursuit or completion of an audit with respect
to that obligation; and (B) shall not pursue any other
equitable or legal remedy, whether under statute or
common law, with respect to an action on or an en-
forcement of said obligation.
‘‘(2) The limitations set forth in sections 2401,
2415, 2416, and 2462 of title 28, United States Code
and section 42 of the Mineral Leasing Act (30 U.S.C.
226-2) shall not apply to any obligation to which this
Act applies. Section 3716 of title 31, United States
Code, may be applied to an obligation the enforce-
ment of which is not barred by this Act, but may not
be applied to any obligation the enforcement of which
is barred by this Act.
‘‘(c) OBLIGATION BECOMES DUE.—
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‘‘(1) IN GENERAL.—For purposes of this Act, an
obligation becomes due when the right to enforce the
obligation is fixed.
‘‘(2) ROYALTY OBLIGATIONS.—The right to en-
force any royalty obligation for any given production
month for a lease is fixed for purposes of this Act on
the last day of the calendar month following the
month in which oil or gas is produced.
‘‘(d) TOLLING OF LIMITATION PERIOD.—The running
of the limitation period under subsection (b) shall not be
suspended, tolled, extended, or enlarged for any obligation
for any reason by any action, including an action by the
Secretary or a delegated State, other than the following:
‘‘(1) TOLLING
AGREEMENT.—A written agree-
ment executed during the limitation period between
the Secretary or a delegated State and a lessee which
tolls the limitation period for the amount of time dur-
ing which the agreement is in effect.
‘‘(2) SUBPOENA.—
‘‘(A) The issuance of a subpoena to a lessee
in accordance with the provisions of subsection
(B)(i) shall toll the limitation period with re-
spect 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
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on the date on which (i) the lessee has produced
such subpoenaed records for the subject obliga-
tion, (ii) the Secretary or a delegated State re-
ceives written notice that the subpoenaed records
for the subject obligation are not in existence or
are not in the lessee’s possession or control, or
(iii) a court has determined in a final decision
that such records are not required to be pro-
duced, whichever occurs first.
‘‘(B)(i) A subpoena for the purposes of this
section which requires a lessee to produce records
necessary to determine the proper reporting and
payment of an obligation due the Secretary may
be issued only by an Assistant Secretary of the
Interior or an acting Assistant Secretary of the
Interior who is a schedule C employee (as de-
fined by section 213.3301 of title 5, Code of Fed-
eral Regulations) and may not be delegated to
any other person. If a State has been delegated
authority pursuant to section 205, the State, act-
ing through the highest elected State official hav-
ing ultimate authority over the collection of roy-
alties from leases on Federal lands within the
state, may issue such subpoena, but may not del-
egate such authority to any other person.
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‘‘(ii) A subpoena described in clause (i)
may only be issued against a lessee during the
limitation period provided in this section and
only after the Secretary or a delegated State has
in writing requested the records from the lessee
related to the obligation which is the subject of
the subpoena and has determined that—
‘‘(I) the lessee has failed to respond
within a reasonable period of time to the
Secretary’s or the applicable delegated
State’s written request for such records nec-
essary for an audit, investigation or other
inquiry made in accordance with the Sec-
retary’s or such delegated State’s respon-
sibilities under this Act; or
‘‘(II) the lessee has in writing denied
the Secretary’s or the applicable delegated
State’s written request to produce such
records in the lessee’s possession or control
necessary for an audit, investigation or
other inquiry made in accordance with the
Secretary’s or such delegated State’s respon-
sibilities under this Act; or
‘‘(III) the lessee has unreasonably de-
layed in producing records necessary for an
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audit, investigation or other inquiry made
in accordance with the Secretary’s or the
applicable delegated State’s responsibilities
under this Act after the Secretary’s or such
delegated State’s written request.
‘‘(C) In seeking records, the Secretary or the
applicable delegated State shall afford the lessee
a reasonable period of time after a written re-
quest by the Secretary or such delegated State in
which to provide such records prior to the issu-
ance of any subpoena.
‘‘(3) MISREPRESENTATION OR CONCEALMENT.—
The intentional misrepresentation or concealment of a
material fact for the purpose of evading the payment
of an obligation in which case the limitation period
shall be tolled for the period of such misrepresentation
or such concealment.
‘‘(4) ORDER TO PERFORM A RESTRUCTURED AC-
COUNTING.—(A) The issuance of a notice under sub-
section (D) that the lessee has not adequately per-
formed a restructured accounting shall toll the limita-
tion period with respect to the obligation which is the
subject of the notice only for the period beginning on
the date the lessee receives the notice and ending 120
days after the date on which (i) the Secretary or the
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applicable delegated State receives written notice the
accounting or other requirement has been performed,
or (ii) a court has determined in a final decision that
the lessee is not required to perform the accounting,
whichever occurs first.
‘‘(B)(i) The Secretary or the applicable del-
egated State may issue an order to perform a re-
structured accounting to a lessee when the Sec-
retary or such delegated State determines during
an in-depth audit of a lessee that the lessee
should recalculate royalty due on an obligation
based upon the Secretary’s or the delegated
State’s finding that the lessee has made identi-
fied underpayments or overpayments which are
demonstrated by the Secretary or the delegated
State to be based upon repeated, systemic report-
ing errors for a significant number of leases or
a single 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 significant underpay-
ments or overpayments.
‘‘(ii) The power of the Secretary to issue an
order to perform a restructured accounting may
not be delegated below the most senior career
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professional position having responsibility for
the royalty management program, which posi-
tion is currently designated as the ‘Associate Di-
rector for Royalty Management’, and may not be
delegated to any other person. If a State has been
delegated authority pursuant to section 205, the
State, acting through the highest ranking State
official having ultimate authority over the collec-
tion of royalties from leases on Federal lands
within the state, may issue such order to per-
form, which may not be delegated to any other
person. An order to perform a restructured ac-
counting shall—
‘‘(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’.
‘‘(C) An order to perform a restructured ac-
counting shall not mean or be construed to in-
clude any other communication or action by or
on behalf of the Secretary or a delegated State.
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‘‘(D) If a lessee fails to adequately perform
a restructured accounting pursuant to this sub-
section, a notice shall be issued to the lessee that
the restructured accounting has not been ade-
quately performed. A lessee shall be given a rea-
sonable time within which to perform the re-
structured accounting. Such notice may be issued
under this section only by an Assistant Secretary
of the Interior or an acting Assistant Secretary
of the Interior who is a schedule C employee (as
defined by section 213.3301 of title 5, Code of
Federal Regulations) and may not be delegated
to any other person. If a State has been delegated
authority pursuant to section 205, the State, act-
ing through the highest elected State official hav-
ing ultimate authority over the collection of roy-
alties from leases on Federal lands within the
state, may issue such notice, which may not be
delegated to any other person.
‘‘(e) TERMINATION OF LIMITATIONS PERIOD.—An ac-
tion or an enforcement of an obligation by the Secretary
or delegated State or a lessee shall be barred under this sec-
tion prior to the running of the six-year period provided
in subsection (b) in the event—
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‘‘(1) the Secretary or a delegated State has noti-
fied the lessee in writing that a time period is closed
to further audit; or
‘‘(2) the Secretary or a delegated State and a les-
see have so agreed in writing.
‘‘(f) RECORDS REQUIRED FOR DETERMINING COLLEC-
TIONS.—Records required pursuant to section 103 by the
Secretary or any delegated State for the purpose of deter-
mining obligations due and compliance with any applicable
mineral leasing law, lease provision, regulation or order
with respect to oil and gas leases from Federal lands or
the Outer Continental Shelf shall be maintained for the
same period of time during which a judicial proceeding or
demand may be commenced under subsection (b). If a judi-
cial proceeding or demand is timely commenced, the record
holder shall maintain such records until the final
nonappealable decision in such judicial proceeding is made,
or with respect to that demand is rendered, unless the Sec-
retary or the applicable delegated State authorizes in writ-
ing an earlier release of the requirement to maintain such
records. Notwithstanding anything herein to the contrary,
under no circumstance shall a record holder be required to
maintain or produce any record relating to an obligation
for any time period which is barred by the applicable limi-
tation in this section. Records required for administrative
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actions and investigations (including, but not limited to,
accounting collection and audits) under this Act involving
obligations shall not be duplicated pursuant to section
3518(c)(1)(B) of title 44, United States Code.
‘‘(g) TIMELY COLLECTIONS.—In order to most effec-
tively utilize resources available to the Secretary to maxi-
mize the collection of oil and gas receipts from lease obliga-
tions to the Treasury within the six-year period of limita-
tions, and consequently to maximize the State share of such
receipts, the Secretary shall not perform or require account-
ing, reporting, or audit activities if the Secretary and the
State concerned determines that the cost of conducting or
requiring the activity exceeds the expected amount to be col-
lected by the activity, based on the most current 12 months
of activity. To the maximum extent possible, the Secretary
and delegated States shall reduce costs to the United States
Treasury and the States by discontinuing requirements for
unnecessary or duplicative data and other information,
such as separate allowances and payor information, relat-
ing to obligations due. If the Secretary and the State con-
cerned determine that collection will result sooner, the Sec-
retary or the applicable delegated State may waive or forego
interest in whole or in part.
‘‘(h) APPEALS AND FINAL AGENCY ACTION.—
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‘‘(1) 30-MONTH PERIOD.—All orders issued by
the Secretary or a delegated State are subject to ap-
peal to the Secretary. No State shall impose any con-
ditions which would hinder a lessee’s immediate ap-
peal of an order to the Secretary or the Secretary’s
designee. The Secretary shall issue a final decision in
any administrative proceeding, including any admin-
istrative proceedings pending on the date of enact-
ment of this section, within 30 months from the date
such proceeding was commenced or 30 months from
the date of such enactment, whichever is later. The 30-
month period may be extended by any period of time
agreed upon in writing by the Secretary and the les-
see.
‘‘(2) EFFECT OF FAILURE TO ISSUE DECISION.—
If no such decision has been issued by the Secretary
within the 30-month period referred to in paragraph
(1)—
‘‘(A) the Secretary shall be deemed to have
issued and granted a decision in favor of the les-
see or lessees as to any nonmonetary obligation
and any monetary obligation the principal
amount of which is less than $2,500; and
‘‘(B) the Secretary shall be deemed to have
issued a final decision in favor of the Secretary,
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which decision shall be deemed to affirm those is-
sues for which the agency rendered a decision
prior to the end of such period, as to any mone-
tary obligation the principal amount of which is
$2,500 or more, and the lessee shall have a right
to a de novo judicial review of such deemed final
decision.
‘‘(i) COLLECTIONS OF DISPUTED AMOUNTS DUE.—To
expedite collections relating to disputed obligations due
within the six-year period beginning on the date the obliga-
tion became due, the parties shall hold not less than one
settlement consultation and the Secretary and the State
concerned may take such action as is appropriate to com-
promise and settle a disputed obligation, including waiving
or reducing interest and allowing offsetting of obligations
among leases.
‘‘(j) ENFORCEMENT OF A CLAIM FOR JUDICIAL RE-
VIEW.—In the event a demand subject to this section is
properly and timely issued, the obligation which is the sub-
ject of the demand may be enforced beyond the six year lim-
itations period without being barred by this statute of limi-
tations. In the event a demand subject to this section is
properly and timely commenced, a judicial proceeding chal-
lenging the final agency action with respect to such demand
shall be deemed timely so long as such judicial proceeding
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is commenced within 180 days from receipt of notice by
the lessee of the final agency action.
‘‘(k) IMPLEMENTATION OF FINAL DECISION.—In the
event a judicial proceeding or demand subject to this section
is timely commenced and thereafter the limitation period
in this section lapses during the pendency of such 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
underpayment or overpayment by means of refund or cred-
it.
‘‘(l) STAY OF PAYMENT OBLIGATION PENDING RE-
VIEW.—Any party ordered by the Secretary or a delegated
State to pay any obligation (other than an assessment)
shall be entitled to a stay of such payment without bond
or other surety instrument pending an administrative or
judicial proceeding if the party periodically demonstrates
to the satisfaction of the Secretary that such party is 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 or a delegated State to pay an assessment shall
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be entitled to a stay without bond or other surety instru-
ment.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1701) is amended by inserting after
the item relating to section 114 the following new item:
‘‘Sec. 115. Limitation periods and agency actions.’’.
SEC. 5364. ADJUSTMENT AND REFUNDS.
(a) IN GENERAL.—The Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.) is amend-
ed by inserting after section 111 the following:
‘‘SEC. 111A. ADJUSTMENTS AND REFUNDS.
‘‘(a) ADJUSTMENTS TO ROYALTIES PAID TO THE SEC-
RETARY OR A DELEGATED STATE.—
‘‘(1) If, during the adjustment period, a lessee
determines that an adjustment or refund request is
necessary to correct an underpayment or overpayment
of an obligation, the lessee shall make such adjustment
or request a refund within a reasonable period of time
and only during the adjustment period. The filing of
a royalty report which reflects the underpayment or
overpayment of an obligation shall constitute prior
written notice to the Secretary or the applicable dele-
gated State of an adjustment.
‘‘(2)(A) For any adjustment, the lessee shall cal-
culate and report the interest due attributable to such
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adjustment at the same time the lessee adjusts the
principal amount of the subject obligation, except as
provided by subparagraph (B).
‘‘(B) In the case of a lessee who determines that
subparagraph (A) would impose a hardship, the Sec-
retary or such delegated State 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 or the applicable delegated State, as appro-
priate, during an audit of the period which includes
the production month for which the adjustment is
being made. If an overpayment is identified during
an audit, then the Secretary or the applicable dele-
gated State, as appropriate, shall allow a credit or re-
fund 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-
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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.
‘‘(2) NOTICE.—The Secretary shall promptly no-
tify each State concerned of a request for refund.
‘‘(3) 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
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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.
‘‘(4) 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
audit by the Secretary or the applicable delegated
State and subject to the provisions of this Act.
‘‘(5) PROHIBITION AGAINST REDUCTION OF RE-
FUNDS OR CREDITS.—In no event shall the Secretary
or any delegated State directly or indirectly claim or
offset any amount or amounts against, or reduce any
refund or credit (or interest accrued thereon) by the
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amount of any obligation the enforcement of which is
barred by section 115.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1701) is amended by inserting after
the item relating to section 111 the following new item:
‘‘Sec. 111A. Adjustments and refunds.’’.
SEC. 5365. ROYALTY TERMS AND CONDITIONS, INTEREST,
AND PENALTIES.
(a) LESSEE INTEREST.—Section 111 of the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C.
1721) is amended by adding after subsection (g) the follow-
ing:
‘‘(h) Interest shall be allowed and paid or credited on
any overpayment, with such interest to accrue from the date
such overpayment was made, at the rate obtained by apply-
ing the provisions of subparagraphs (A) and (B) of section
6621(a)(1) of the Internal Revenue Code of 1986, but deter-
mined without regard to the matter following subparagraph
(B) of section 6621(a)(1). Interest which has accrued on
any 
overpayment 
may 
be 
applied 
to 
reduce 
an
underpayment. This subsection applies to overpayments
made later than six months after the date of enactment of
this subsection or September 1, 1996, whichever is later.
Such interest shall be paid from amounts received as cur-
rent receipts from sales, bonuses, royalties (including inter-
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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.’’.
(b) LIMITATION ON INTEREST.—Section 111 of the
Federal Oil and Gas Royalty Management Act of 1982, as
amended by subsection (a), is further amended by adding
at the end the following:
‘‘(i) Upon a determination by the Secretary that an
excessive overpayment (based upon all obligations of a lessee
for a given reporting month) was made for the sole purpose
of receiving interest, interest shall not be paid on the exces-
sive amount of such overpayment. For purposes of this Act,
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 determined
to be due as a result of judicial or administrative proceed-
ings or agreed to be paid pursuant to settlement agree-
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ments) for the aggregate of all of its Federal leases exceeds
10 percent of the total royalties paid that month for those
leases.’’.
(c) ESTIMATED PAYMENT.—Section 111 of the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C.
1721), as amended by subsections (a) and (b), is further
amended by adding at the end the following:
‘‘(j) A lessee may make a payment for the approximate
amount of royalties (hereinafter in this subsection ‘esti-
mated payment’) that would otherwise be due for such lease
to avoid underpayment or nonpayment interest charges.
When an estimated payment is made, actual royalties are
due and payable at the end of the month following the
month in which the estimated payment is made. If the lessee
makes a payment for such actual royalties, the lessee may
apply the estimated payment to future royalties. Any esti-
mated payment may be adjusted, recouped, or reinstated
at any time by the lessee.’’.
(d) VOLUME ALLOCATION OF OIL AND GAS PRODUC-
TION.—Section 111 of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1721), as amended by
subsections (a) through (c), is amended by adding at the
end the following:
‘‘(k)(1) Except as otherwise provided by this sub-
section—
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‘‘(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 shall report and pay royalties on oil and
gas production for each production month based on
the actual volume of production sold by or on behalf
of that lessee;
‘‘(B) a lessee of a lease in any other unit or
communitization agreement shall report and pay 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 shall 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
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.
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‘‘(3) For any unit or communitization agreement, if
all lessees contractually agree to an alternative method of
royalty reporting and payment, the lessees may submit such
alternative method to the Secretary or the delegated State
for approval and make payments in accordance with such
approved alternative method so long as such alternative
method does not reduce the amount of the royalty obliga-
tion.
‘‘(4) The Secretary or the delegated State shall grant
an exception from the reporting and payment requirements
for marginal properties by allowing for any calendar year
or portion thereof royalties to be paid each month based
on the volume of production sold. Interest shall not accrue
on the difference for the entire calendar year or portion
thereof between the amount of oil and gas actually sold and
the share of production allocated to the lease until the begin-
ning of the month following calendar year or portion there-
of. Any additional royalties due or overpaid royalties and
associated interest shall be paid, refunded, or credited with-
in six months after the end of each calendar year in which
royalties are paid based on volumes of production sold. For
the purpose of this subsection, the term ’marginal property’
means a lease that produces on average the combined equiv-
alent of less than 15 barrels of oil per day or 90 thousand
cubic feet of gas per day, or a combination thereof, deter-
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mined by dividing the average daily production of crude
oil and natural gas from producing wells on such lease by
the number of such wells, unless the Secretary, together with
the State concerned, determines that a different production
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.’’.
‘‘(e) PRODUCTION ALLOCATION.—Section 111 of the
Federal Oil and Gas Royalty Management Act of 1982 (30
U.S.C. 1721), as amended by subsections (a) through (d),
is amended by adding at the end the following:
‘‘(l) The Secretary or the delegated State shall issue
all determinations of allocations of production for units and
communitization agreements within 120 days of a request
for determination. If the Secretary or the delegated State
fails to issue a determination within such 120-day period,
the Secretary shall waive interest due on obligations subject
to the determination until the end of the month following
the month in which the determination is made.’’.
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(f) NEW ASSESSMENT TO ENCOURAGE PROPER ROY-
ALTY PAYMENTS.—
(1) IN
GENERAL.—The Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1721),
as amended by this section, is further amended by
adding at the end the following:
‘‘SEC. 116. ASSESSMENTS.
‘‘Beginning eighteen months after the date of enact-
ment of this section, to encourage proper royalty payment
the Secretary or the delegated State shall impose assess-
ments on lessees who chronically submit erroneous reports
under this Act. Assessments under this Act may only be is-
sued as provided for in this section.’’.
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1 of such Act (30 U.S.C. 1701) is
amended by adding after the item relating to section
115 the following new item:
‘‘Sec. 116. Assessments.’’.
(g) LIABILITY
FOR ROYALTY PAYMENTS.—Section
102(a) of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1712(a)) is amended to read as fol-
lows:
‘‘(a) In order to increase receipts and achieve effective
collections of royalty and other payments, a lessee who is
required to make any royalty or other payment under a
lease or under the mineral leasing laws, shall make such
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payments in the time and manner as may be specified by
the Secretary or the applicable delegated State. A lessee may
designate a person to make all or part of the payments due
under a lease on the lessee’s behalf and shall notify the Sec-
retary or the applicable delegated State in writing of such
designation, in which event said designated person may,
in its own name, pay, offset or credit monies, make adjust-
ments, request and receive refunds and submit reports with
respect to payments required by the lessee. The person own-
ing operating rights in a lease shall be primarily liable for
its pro rata share of payment obligations under the lease.
If the person owning the legal record title in a lease is other
than the operating rights owner, the person owning the legal
record title shall be secondarily liable for its pro rata share
of such payment obligations under the lease.’’.
(h) CLERICAL AMENDMENT.—The heading of section
111 of the Federal Oil and Gas Royalty Management Act
of 1982 (30 U.S.C. 1721) is amended to read as follows:
‘‘ROYALTY TERMS AND CONDITIONS, INTEREST, AND
PENALTIES’’.
SEC. 5366. ALTERNATIVES FOR MARGINAL PROPERTIES.
(a) IN GENERAL.—The Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.), as
amended by section 5365 of this chapter, is further amended
by adding at the end the following:
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‘‘SEC. 117. ALTERNATIVES FOR MARGINAL PROPERTIES.
‘‘(a) DETERMINATION OF BEST INTERESTS OF STATE
CONCERNED AND THE UNITED STATES.—The Secretary
and the State concerned, acting in the best interests of the
United States and the State concerned to promote produc-
tion, reduce administrative costs, and increase net receipts
to the United States and the States, shall jointly determine,
on a case by case basis, the amount of what marginal pro-
duction from a lease or leases or well or wells, or parts
thereof, shall be subject to a prepayment under subsection
(b) or regulatory relief under subsection (c). If the State
concerned does not consent, such prepayments or regulatory
relief shall not be made available under this section for such
marginal production, provided that if royalty payments
from a lease or leases, or well or wells is not shared with
any State, such determination shall be made solely by the
Secretary.
‘‘(b) PREPAYMENT OF ROYALTY.—
‘‘(1) I GENERAL.—Notwithstanding the provi-
sions of any lease to the contrary, for any lease or
leases or well or wells identified by the Secretary and
the State concerned pursuant to subsection (a), the
Secretary is authorized to accept a prepayment for
royalties in lieu of monthly royalty payments under
the lease for the remainder of the lease term if the af-
fected lessee so agrees. Any prepayment agreed to by
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the Secretary, State concerned and lessee which is less
than an average $500 per month in total royalties
shall be effectuated under this section not earlier than
two years after the date of enactment of this section
and, any prepayment which is greater than an aver-
age $500 per month in total royalties shall be effec-
tuated under this section not earlier than three years
after the date of enactment of this section. The Sec-
retary and the State concerned may condition their
acceptance of the prepayment authorized under this
section on the lessee’s agreeing to such terms and con-
ditions as the Secretary and the State concerned deem
appropriate and consistent with the purposes of this
Act. Such terms may—
‘‘(A) provide for prepayment that does not
result in a loss of revenue to the United States
in present value terms;
‘‘(B) include provisions for receiving addi-
tional prepayments or royalties for developments
in the lease or leases or well or wells that deviate
significantly from the assumptions and facts on
which the valuation is determined; and
‘‘(C) require the lessee to provide such peri-
odic production reports as may be necessary to
allow the Secretary and the State concerned to
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monitor production for the purposes of subpara-
graph (B).
‘‘(2) STATE SHARE.—A prepayment under this
section shall be shared by the Secretary with any
State or other recipient to the same extent as any
royalty payment for such lease.
‘‘(3) SATISFACTION OF OBLIGATION.—Except as
may be provided in the terms and conditions estab-
lished by the Secretary under subsection (b), a lessee
who makes a prepayment under this section shall
have satisfied in full its obligation to pay royalty on
the production stream sold from the lease or leases or
well or wells.
‘‘(c) ALTERNATIVE ACCOUNTING AND AUDITING RE-
QUIREMENTS.—
‘‘(1) IN GENERAL.—Within one year after the
date of the enactment of this section, the Secretary or
the delegated State shall provide accounting, report-
ing, and auditing relief that will encourage lessees to
continue to produce and develop properties subject to
subsection (a); provided, that such relief will only be
available to lessees in a State that concurs, which
concurrence is not required if royalty from the lease
or leases or well or wells is not shared with any State.
Prior to granting such relief, the Secretary and, if
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appropriate, the State concerned shall agree that the
type of marginal wells and relief provided under this
paragraph is in the best interest of the United States
and, if appropriate, the State concerned.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 of such Act (30 U.S.C. 1701) is amended by add-
ing after the item relating to section 115 the following new
item:
‘‘Sec. 117. Alternatives for marginal properties.’’.
SEC. 5367. REPEALS.
(a) FOGRMA.—As applicable to Federal lands, sec-
tions 202 and 307 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1732 and 1755), are re-
pealed. Such repeal shall not affect cooperative agreements
involving Indian tribes or Indian lands. Section 1 of such
Act (relating to the table of contents) is amended by striking
out the items relating to sections 202 and 307.
(b) OCSLA.—Effective on the date of the enactment
of this Act, section 10 of the Outer Continental Shelf Lands
Act (43 U.S.C. 1339) is repealed.
SEC. 5368. INDIAN LANDS.
The amendments and repeals made by this chapter
shall not apply with respect to Indian lands, and the provi-
sions of the Federal Oil and Gas Royalty Management Act
of 1982 as in effect on the day before the date of enactment
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of this Act shall continue to apply after such date with re-
spect to Indian lands.
SEC. 5369. PRIVATE LANDS.
This chapter shall not apply to any privately owned
minerals.
SEC. 5369A. EFFECTIVE DATE.
Except as provided by section 115(f), section 111(h),
section 111(k)(5), and section 117 of the Federal Oil and
Gas Royalty Management Act of 1982 (as added by this
chapter), this chapter, and the amendments made by this
chapter, shall apply with respect to the production of oil
and gas after the first day of the month following the date
of the enactment of this Act.
CHAPTER 5—MINING
SEC. 5371. SHORT TITLE.
This chapter may be cited as ‘‘The Mining Law Reve-
nue Act of 1995’’.
SEC. 5372. DEFINITIONS.
When used in this chapter—
(1) ‘‘Assessment year’’ means the annual period
commencing at 12 o’clock noon on the 1st day of Sep-
tember and ending at 12 o’clock noon on the 1st day
of September of the following year.
(2) ‘‘Federal lands’’ means lands and interests in
lands owned by the United States that are open to
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mineral location, or that were open to mineral loca-
tion when a mining claim or site was located and
which have not been patented under the general min-
ing laws.
(3) ‘‘General mining laws’’ means those Acts
which generally comprise chapters 2, 11, 12, 12A, 15,
and 16, and sections 161 and 162, of Title 30 of the
United States Code, all Acts heretofore enacted which
are amendatory of or supplementary to any of the
foregoing Acts, and the judicial and administrative
decisions interpreting such Acts.
(4) ‘‘Locatable minerals’’ means those minerals
owned by the United States and subject to location
and disposition under the general mining laws on or
after the effective date of this chapter, but not includ-
ing any mineral held in trust by the United States
for any Indian or Indian tribe, as defined in section
2 of the Indian Mineral Development Act of 1982 (25
U.S.C. 2101), or any mineral owned by any Indian
or Indian tribe, as defined in that section, that is
subject to a restriction against alienation imposed by
the United States, or any mineral owned by any in-
corporated Native group, village corporation, or re-
gional corporation and acquired by the group or cor-
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poration under the provisions of the Alaska Native
Claims Settlement Act (43 U.S.C. 1601 et seq.).
(5) ‘‘Mineral activities’’ means any activity re-
lated to, or incidental to, exploration for or develop-
ment, mining, production, beneficiation, or processing
of any locatable mineral or mineral that would be
locatable if it were subject to disposition under the
general mining laws, or reclamation of the impacts of
such activities.
(6) ‘‘Mining claim or site’’, except where pro-
vided otherwise, means a lode mining claim, placer
mining claim, mill site or tunnel site.
(7) ‘‘Operator’’ means any person conducting
mineral activities subject to this chapter.
(8) ‘‘Person’’ means an individual, Indian tribe,
partnership, association, society, joint venture, joint
stock company, firm, company, limited liability com-
pany, corporation, cooperative or other organization,
and any instrumentality of State or local govern-
ment, including any publicly owned utility or pub-
licly owned corporation of State or local government.
(9) ‘‘Secretary’’ means the Secretary of the Inte-
rior.
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SEC. 5373. RENTAL PAYMENT REQUIREMENTS.
(a) RENTAL PAYMENTS.—(1) After the date of enact-
ment of this Act, the owner of each unpatented mining
claim or site located pursuant to the general mining laws,
whether located before or after the enactment of this Act,
shall pay to the Secretary prior to September 1 of each year,
until a patent has been issued therefor, an annual rental
payment for each unpatented mining claim or site.
(2) 
LOCATION
PAYMENT.—The 
owner 
of 
each
unpatented mining claim or site located after the date of
enactment of this Act pursuant to the general mining laws
shall pay to the Secretary, at the time the copy of the notice
or certificate of location is filed with the Bureau of Land
Management pursuant to section 314(b) of the Federal
Land Policy and Management Act of 1976 (43 U.S.C.
1744(b)), a $25.00 location payment, in lieu of the annual
rental payment of $100 per mining claim or site for the
assessment year which includes the date of location of such
mining claim or site.
(3) EXEMPTION AND WAIVER.—(A) The owner of any
mining claim or site who demonstrates to the Secretary on
or before the first day of any assessment year that access
to such mining claim or site was denied during the prior
assessment year by the action or inaction of any State or
Federal governmental officer, agency, or court, or by any
Indian tribal authority, shall be exempt from the annual
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rental payment requirements of paragraph (1) for the as-
sessment year following the filing of the certification.
(B) The rental payment provided for in subsection
5373(a) shall be waived for the owner of a mining claim
or site who certifies in writing to the Secretary, on or before
the date the payment is due, that, as of the date such pay-
ment is due, such owner and all related persons own not
more than ten unpatented mining claims or sites. Any
owner of a mining claim or site that is not required to
pay a rental payment under this subsection shall continue
to be subject to the assessment work requirements of the gen-
eral mining laws or of any other State or Federal law, sub-
ject to any suspension or deferment of annual assessment
work provided by law, for the assessment year following the
filing of the certification required by this subsection.
(4) AMOUNT OF ANNUAL RENTAL PAYMENT.—For each
assessment year the annual rental payment payable for a
claim or site referred to in paragraph (1) shall be in the
amount specified in Table 1.
Table 1
Assessment Year:
Amount of Payment Per Site or
Claim:
1996–1998 .........................................
$100 per year
1999 and thereafter ..........................
$200 per year
(5) EFFECT OF FORFEITURE.—No owner or co-owner
of a mining claim or site which has been forfeited because
the rental payment has not been paid and no person who
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is a related person of any such owner or co-owner may relo-
cate a new claim on any part of lands located within the
forfeited claim for a period of 12 months after the date of
forfeiture.
(b) ANNUAL LABOR.—(1) Beginning in 1999, amounts
expended on activities that qualify as annual labor under
the general mining laws may be credited on a dollar for
dollar basis towards up to 50 percent of the annual rental
payment payable under this section for the following assess-
ment year. During the assessment year in 1999, annual
labor performed in 1998 may be credited toward the annual
rental payment due in 1999.
(2) In order to receive credit under this subsection for
annual labor work, the description and value of the work
must be included in the statement required in subsection
(e) and the statement must be timely filed.
(3) Annual labor performed on an individual mining
claim or site within a group of contiguous claims may be
credited towards the aggregate amount of rental payments
due on all of the contiguous claims within that group.
(c) WORK QUALIFYING AS ANNUAL LABOR.—(1) Only
work which directly benefits or develops a mining claim or
facilitates the extraction of ore qualifies as annual labor
or other activities as determined by the Secretary. Accept-
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able labor and improvements include, but are not limited
to, any of the following:
(A) Drilling or excavating, including ore extrac-
tion.
(B) Mining costs directly associated with the
production of ore.
(C) Prospecting work which benefits the claim or
a contiguous claim.
(D) Development work toward an actual mine,
such as shafts, tunnels, crosscuts and drifts, settling
ponds and dams.
(E) Activities covered under section 1 of the Act
of September 2, 1958 (30 U.S.C. 281), as amended.
(F) Reclamation conducted pursuant to State or
Federal surface management laws or regulations.
(2) The following activities do not qualify as annual
labor:
(A) Work involved in maintaining the location
such as brushing and marking boundaries or replac-
ing corner posts and location notices.
(B) Transportation of workers to or from the lo-
cation.
(C) Prospecting or exploration work not con-
ducted within the location or a contiguous location.
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(d) AMENDMENTS OF PUBLIC LAW 85–876.—The Act
of September 2, 1958 (Public Law 85-876; 30 U.S.C. 281),
is amended as follows:
(1) Section 1 is amended by inserting ‘‘mineral
activities, environmental baseline monitoring, and’’
after ‘‘without being limited to’’ and before ‘‘geologi-
cal, geochemical and geophysical surveys’’ and by
striking ‘‘Such’’ at the beginning of the last sentence
and inserting ‘‘Airborne’’.
(2) Section 2(d) is amended by inserting ‘‘envi-
ronmental baseline monitoring or’’ after ‘‘experience
to conduct’’ and before ‘‘geological, geochemical or
geophysical surveys’’.
(3) Section 2 is amended by adding the following
new subsection at the end thereof:
‘‘(e) The term ‘environmental baseline monitoring’
means activities for collecting, reviewing and analyzing in-
formation concerning soil, vegetation, wildlife, mineral, air,
water, cultural, historical, archaeological or other resources
related to planning for or complying with Federal and
State environmental or permitting requirements applicable
to potential or proposed mineral activities on the
claim(s).’’.
(e) RENTAL PAYMENT STATEMENT.—Each payment
under subsection (a) of this section shall be accompanied
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by a statement which reasonably identifies the mining
claim or site for which the rental payment is being paid.
The statement required under this subsection shall be in lieu
of any annual filing requirements for mining claims or
sites, under any other Federal law, but shall not supersede
any such filing requirement under applicable State law.
(f) ANNUAL LABOR STATEMENT.—When the value of
annual labor is credited towards part or all of the rental
payment, subject to the 50-percent limit set forth in sub-
section (b)(1), the following shall apply:
(1) The rental payment statement required in
subsection (e) must also state the dates of performance
of the labor, describe the character and total value of
the improvements made or the labor performed, and
the amount of labor used as a credit toward the rental
payment for the current year.
(2) The annual labor statements must include a
summary of the quantity, value and location of work
done. This includes a listing of the physical work
done, to include drilling, trenching, sampling and un-
derground excavation, and the location of any envi-
ronmental, geologic, geochemical, and geophysical sur-
veys. The claim holder shall maintain sufficient
records which document the value of the work
claimed.
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(3) All supporting material filed pursuant to
paragraph (2) shall remain confidential in accord-
ance with section 552 of title 5 of the United States
Code as long as the location is maintained and for
a period of one year after the location is abandoned,
after which all data filed shall be considered public
information.
(4) To the extent that labor credited against the
rental payment payable under this section is deter-
mined by a final action not to qualify as labor under
the general mining laws, the claimant shall pay the
insufficiency by making payment to the Secretary of
an amount equal to the amount of the rental payment
against which the insufficient labor was credited. If
such payment is made within 30 days of the claim-
ant’s receipt of a notice of a final decision making
such determination, the claim concerned shall not be
forfeited or null or void, and the rental payment ap-
plicable to such claim shall be deemed timely paid.
(g) CREDIT AGAINST ROYALTY.—The annual claim
rental payment payable in advance of the assessment year
for any unpatented mining claim or site, or the aggregate
rental payments from a group of contiguous claims or sites,
shall be credited against the amount of royalty obligation
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accruing for that year for such claims or sites under section
5375.
(h) FAILURE TO COMPLY.—The failure of the owner
to pay any claim rental payment for a mining claim or
site by the date such payment is due under this section shall
constitute forfeiture of the mining claim or site and such
mining claim or site shall be null and void, effective as of
the day after the date such payment is due: Provided, That
if such rental payment is paid on or before the 30th day
after such payment was due under this section, such mining
claim or site shall not be forfeited or null or void.
(i) AMENDMENT
OF
FLPMA FILING
REQUIRE-
MENTS.—Section 314(a) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1744(a)) is hereby re-
pealed.
(j) RELATED PERSONS.—As used in this section, the
term ‘‘related persons’’ includes—
(1) the spouse and dependent children (as de-
fined in section 152 of the Internal Revenue Code of
1986) of the owner of the mining claim or site; and
(2) a person controlled by, controlling, or under
common control with the owner of the mining claim
or site.
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(k) REPEAL.—Sections 10101 through 10106 of the
Omnibus Budget Reconciliation Act of 1993 (107 Stat. 406;
30 U.S.C. 28g) are repealed.
SEC. 5374. PATENTS.
(a) IN GENERAL.—Except as provided in subsection
(c), any patent issued by the United States under the gen-
eral mining laws after the date of enactment of this chapter
shall be issued only—
(1) upon payment by the owner of the claim of
the fair market value for the interest in the land
owned by the United States exclusive of and without
regard to the mineral deposits in the land or the use
of the land for mineral activities; and
(2) subject to reservation by the United States of
the royalty provided in section 5375.
(b) RIGHT OF RE-ENTRY.—
(1) Except as provided in subsection 5374(c),
and notwithstanding any other provision of law, the
United States shall retain a right of re-entry in lands
patented under section 5374.
(2) Such right of re-entry of the United States
shall ripen if—
(A) the land is used by the patentee, or any
subsequent owners, for any purpose other than
conducting mineral activities in good faith;
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(B) such use is not discontinued within a
time period specified by the Secretary (but not
earlier than 90 days after the Secretary provides
the owner of the land with written notice pursu-
ant to paragraph (2) to discontinue such use);
and
(C) the Secretary elects to assert the right of
re-entry in accordance with paragraph (3).
(3) The ripened right of re-entry retained by the
United States pursuant to subparagraph (2) shall
vest and all right, title and interest in such patented
estate shall revert to the United States only if—
(A) the Secretary files a declaration of re-
entry within 6 months of the requisite occur-
rences under paragraph (2) with the Office of the
Bureau of Land Management in the state where
the land subject to such right of re-entry is situ-
ated; and
(B) the Secretary records such declaration
in the office of the county recorder of the county
in which the lands subject to a reversion are sit-
uated within 30 days of filing under subpara-
graph (A).
(4) One year after the patent holder provides
written notice to the Secretary that all mineral ac-
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tivities are completed and applicable reclamation is
completed, the right of re-entry held by the United
States and created under the subsection (b) shall ex-
pire unless within such period the Secretary notifies
the patent holder in writing that he is exercising the
right of re-entry held by the United States. At such
time, ownership of the patented lands shall automati-
cally revert to the United States, notwithstanding
subparagraphs (A), (B) and (C) of subsection (b)(2).
The Secretary may decline to exercise the right of re-
entry and such rights shall continue if—
(a) solid waste or hazardous substances re-
leased on or from the patented estate may pose
a threat to public safety or the environment; or
(b) acceptance of title would expose the
United States to liability for past mineral ac-
tivities on the patented estate.
(c) PROTECTION OF VALID EXISTING RIGHTS.—Not-
withstanding any other provision of law, the requirements
of this chapter (except with respect to rental payments in
accordance with section 5373)—
(1) shall not apply to the mining claims and
sites contained within those mineral patent applica-
tions pending at the Department as of September 30,
1995, which shall be processed under the general min-
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ing laws in effect immediately prior to the date of en-
actment of this chapter; and
(2) likewise shall not apply to the mining claims
or sites for which there is on the date of enactment
of this chapter a vested possessory property right
against the Government under the general mining
laws in effect immediately prior to the date of enact-
ment of this chapter.
SEC. 5375. ROYALTY.
(a) IN
GENERAL.—The production and sale of
locatable minerals (including associated minerals) from
any unpatented mining claim (other than those from Fed-
eral lands to which subsection 5374(c) applies) or any min-
ing claim patented under subsection 5374(a) shall be subject
to a royalty of 5.0 percent on the net proceeds from such
production mined and sold from such claim.
(b) ROYALTY EXCLUSION.—
(1) The royalty payable under this section shall
be waived for any person with annual net proceeds
from mineral production subject to subsection (a) of
less than $50,000.
(2) The obligation to pay royalties hereunder
shall accrue upon the sale of locatable minerals or
mineral products produced from a mining claim sub-
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ject to such royalty, and not upon the stockpiling of
the same for future processing.
(3) Where mining operations subject to this sec-
tion are conducted in two or more places by the same
person, the operations shall be considered a single op-
eration the aggregate net proceeds from which shall be
subject to the $50,000 limitation set forth in this sub-
section.
(4) No royalty shall be payable under this sec-
tion with respect to minerals processed at a facility
by the same person or entity which extracted the min-
erals if an urban development action grant has been
made under section 119 of the Housing and Commu-
nity Development Act of 1974 with respect to any
portion of such facility.
(c) DEFINITIONS.—For the purposes of this chapter:
(1) The term ‘‘net proceeds’’ shall mean gross
yield, less the sum of the following deductions for costs
incurred prior to sale or value determination, and
none other:
(A) The actual cost of extracting the
locatable mineral.
(B) The actual cost of transporting the
locatable mineral from the claim to the place or
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places of reduction, beneficiation, refining, and
sale.
(C) 
The 
actual 
cost 
of 
reduction,
beneficiation, refining, and sale of the locatable
mineral.
(D) The actual cost of marketing and deliv-
ering the locatable mineral and the conversion of
the locatable mineral into money.
(E) The actual cost of maintenance and re-
pairs of—
(i) all machinery, equipment, appara-
tus, and facilities used in the mine;
(ii) all crushing, milling, leaching, re-
fining, smelting, and reduction works,
plants, and facilities; and
(iii) all facilities and equipment for
transportation.
(F) The actual cost for support personnel
and support services at the mine site, including
without limitation, accounting, assaying, draft-
ing and mapping, computer services, surveying,
housing, camp, and office expenses, safety, and
security.
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(L) All money paid as contributions or
payments under State unemployment compensa-
tion law, all money paid as contributions under
the Federal Social Security Act, and all money
paid to State government in real property taxes
and severance or other taxes measured or levied
on production, or Federal excise tax payments
and payments as fees or charges for use of the
Federal lands from which the locatable minerals
are produced.
(M) The actual cost of the developmental
work in or about the mine or upon a group of
mines when operated as a unit.
(2) The term ‘‘gross yield’’ shall having the fol-
lowing meaning:
(A) In the case of sales of gold and silver
ore, concentrates or bullion, or the sales of other
locatable minerals in the form of ore or con-
centrates, the term ‘‘gross yield’’ means the ac-
tual proceeds of sale of such ore, concentrates or
bullion.
(B) In the case of sales of beneficiated prod-
ucts from locatable minerals other than those
subject to subparagraph (A) (including cathode,
anode or copper rod or wire, or other products
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fabricated from the locatable minerals), the term
‘‘gross yield’’ means the gross income from min-
ing derived from the first commercially market-
able product determined in the same manner as
under section 613 of the Internal Revenue Code
of 1986.
(C) If ore, concentrates, beneficiated or fab-
ricated products, or locatable minerals are used
or consumed and are not sold in an arms length
transaction, the term ‘‘gross yield’’ means the
reasonable fair market value of the ore, con-
centrates, beneficiated or fabricated products at
the mine or wellhead determined from the first
applicable of the following:
(i) Published or other competitive sell-
ing prices of locatable minerals of like kind
and grade.
(ii) Any proceeds of sale.
(iii) Value received in exchange for
any thing or service.
(iv) The value of any locatable min-
erals in kind or used or consumed in a
manufacturing process or in providing a
service.
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Without limiting the foregoing, the profits or
losses incurred in connection with forward sales,
futures or commodity options trading, metal
loans, or any other price hedging or speculative
activity or arrangement shall not be included in
gross yield.
(d) LIMITATIONS AND ALLOCATIONS OF NET PRO-
CEEDS, GROSS YIELD, AND ALLOWABLE DEDUCTIONS.—
(1) The deductions listed in subsection (c)(1) are
intended to allow a reasonable allowance for overhead.
Such deductions shall not include any expenditures
for salaries, or any portion of salaries, of any person
not actually engaged in—
(A) the working of the mine;
(B) the operating of the leach pads, ponds,
plants, mills, smelters, or reduction works;
(C) the operating of the facilities or equip-
ment for transportation; or
(D) superintending the management of any
of those operations described in subparagraphs
(A) through (C).
(2) Ores or solutions of locatable minerals subject
to the royalty requirements of this section may be ex-
tracted from mines comprised of mining claims and
lands other than mining claims and ore or solutions
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of locatable minerals subject to the royalty require-
ments of this section may be commingled with ores or
solutions from lands other than mining claims. In
any such case, for purposes of determining the
amount of royalties payable under this section—
(A) the operator shall first sample, weigh or
measure, and assay the same in accordance with
accepted industry standards; and
(B) gross yield, allowable costs and net pro-
ceeds for royalty purposes shall be allocated in
proportion to mineral products recovered from
the mining claims in accordance with accepted
industry standards.
(e) LIABILITY FOR ROYALTY PAYMENTS.—The owner
or co-owners of a mining claim subject to a royalty under
this section shall be liable for such royalty to the extent of
the interest in such claim owned. As used in this subsection,
the terms ‘‘owner’’ and ‘‘co-owner’’ mean the person or per-
sons owning the right to mine locatable minerals from such
claim and receiving the net proceeds of such sale. No person
who makes any royalty payment attributable to the interest
of the owner or co-owners liable therefor shall become liable
to the United States for such royalty as a result of making
such payment on behalf of such owner or co-owners.
(f) TIME AND MANNER OF PAYMENT.—
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(1) Royalty payments for production from any
mining claim subject to the royalty payable under
this section shall be due to the United States at the
end of the month following the end of the calendar
quarter in which the net proceeds from the sale of
such production are received by the owner or co-own-
ers. Royalty payments may be made based upon good
faith estimates of the gross yield, net proceeds and the
quantity of ore, concentrates, or other beneficiated or
fabricated products of locatable minerals, subject to
adjustment when the actual annual gross yield, net
proceeds and quantity are determined by the owner of
the mining claim or site or co-owners.
(2) Each royalty payment or adjustment shall be
accompanied by a statement containing each of the
following:
(A) The name and Bureau of Land Man-
agement serial number of the mining claim or
claims from which ores, concentrates, solutions
or beneficiated products of locatable minerals
subject to the royalty required in this section
were produced and sold for the period covered by
such payment or adjustment.
(B) The estimated (or actual, if determined)
quantity of such ore, concentrates, solutions or
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beneficiated or fabricated products produced and
sold from such mining claim or claims for such
period.
(C) The estimated (or actual, if determined)
gross yield from the production and sale of such
ore, concentrates, solutions or beneficiated prod-
ucts for such period.
(D) The estimated (or actual, if determined)
net proceeds from the production and sale of such
ores, concentrates, solutions or beneficiated prod-
ucts for such period, including an itemization of
the applicable deductions described in subsection
(c)(1).
(E) The estimated (or actual, if determined)
royalty due to the United States, or adjustment
due to the United States or such owner or co-
owners, for such period.
(3) In lieu of receiving a refund under subsection
(h), the owner or co-owners may elect to apply any
adjustment due to such owner or co-owners as an off-
set against royalties due from such owner or co-own-
ers to the United States under this Act, regardless of
whether such royalties are due for production and
sale from the same mining claim or claims.
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(g) RECORDKEEPING
AND
REPORTING
REQUIRE-
MENTS.—
(1) An owner, operator, or other person directly
involved in the conduct of mineral activities, trans-
portation, purchase, or sale of locatable minerals, con-
centrates, or products derived therefrom, subject to the
royalty under this section, through the point of roy-
alty computation, shall establish and maintain any
records, make any reports, and provide any informa-
tion that the Secretary may reasonably require for the
purposes of implementing this section or determining
compliance with regulations or orders under this sec-
tion. Upon the request of the Secretary when conduct-
ing an audit or investigation pursuant to subsection
(i), the appropriate records, reports, or information
required by this subsection shall be made available for
inspection and duplication by the Secretary.
(2) Records required by the Secretary under this
section shall be maintained for 3 years after the
records are generated unless the Secretary notifies the
record holder that he or she has initiated an audit or
investigation specifically identifying and involving
such records and that such records must be main-
tained for a longer period. When an audit or inves-
tigation is under way, such records shall be main-
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tained until the earlier of the date that the Secretary
releases the record holder of the obligation to main-
tain such records or the date that the limitations pe-
riod applicable to such audit or investigation under
subsection (i) expires.
(h) INTEREST ASSESSMENTS.—
(1) If royalty payments under this section are
not received by the Secretary on the date that such
payments are due, or if such payments are less than
the amount due, the Secretary shall charge interest on
such unpaid amount. Interest under this subsection
shall be computed at the rate published by the De-
partment of the Treasury as the ‘‘Treasury Current
Value 
of 
Funds 
Rate.’’ 
In 
the 
case 
of 
an
underpayment or partial payment, interest shall be
computed and charged only on the amount of the defi-
ciency and not on the total amount, and only for the
number of days such payment is late. No other late
payment or underpayment charge or penalty shall be
charged with respect to royalties under this section.
(2) In any case in which royalty payments are
made in excess of the amount due, or amounts are
held by the Secretary pending the outcome of any ap-
peal in which the Secretary does not prevail, the Sec-
retary shall promptly refund such overpayments or