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(2) by striking out ‘‘July 1, 1996’’ in the second
sentence and inserting in lieu thereof ‘‘July 1, 1997’’.
SEC. 3167. SENSE OF SENATE ON NEGOTIATIONS REGARD-
ING SHIPMENTS OF SPENT NUCLEAR FUEL
FROM NAVAL REACTORS.
(a) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that the Secretary of Defense, the Secretary of Energy,
and the Governor of the State of Idaho should continue good
faith negotiations for the purpose of reaching an agreement
on the issue of shipments of spent nuclear fuel from naval
reactors.
(b) REPORT.—(1) Not later than September 15, 1995,
the Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on Na-
tional Security of the House of Representatives a written
report on the status or outcome of the negotiations urged
under subsection (a).
(2) The report shall include the following matters:
(A) If an agreement is reached, the terms of the
agreement, including the dates on which shipments of
spent nuclear fuel from naval reactors will resume.
(B) If an agreement is not reached—
(i) the Secretary’s evaluation of the issues
remaining to be resolved before an agreement can
be reached;
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(ii) the likelihood that an agreement will be
reached before October 1, 1995; and
(iii) the steps that must be taken regarding
the shipment of spent nuclear fuel from naval re-
actors to ensure that the Navy can meet the na-
tional security requirements of the United States.
TITLE 
XXXII—DEFENSE 
NU-
CLEAR 
FACILITIES 
SAFETY
BOARD
SEC. 3201. AUTHORIZATION.
There are authorized to be appropriated for fiscal year
1996, $17,000,000 for the operation of the Defense Nuclear
Facilities Safety Board under chapter 21 of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2286 et seq.).
TITLE XXXIII—NAVAL
PETROLEUM RESERVES
SEC. 3301. SALE OF NAVAL PETROLEUM RESERVE NUM-
BERED 1 (ELK HILLS).
(a) SALE OF ELK HILLS UNIT REQUIRED.—(1) Chap-
ter 641 of title 10, United States Code, is amended by in-
serting after section 7421 the following new section:
‘‘§ 7421a. Sale of Naval Petroleum Reserve Numbered
1 (Elk Hills)
‘‘(a) SALE
REQUIRED.—(1) Notwithstanding any
other provision of this chapter other than section 7431(a)(2)
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of this title, the Secretary shall sell all right, title, and inter-
est of the United States in and to lands owned or controlled
by the United States inside Naval Petroleum Reserve Num-
bered 1, commonly referred to as the Elk Hills Unit, located
in Kern County, California, and established by Executive
order of the President, dated September 2, 1912. Subject
to subsection (j), within one year after the effective date,
the Secretary shall enter into one or more contracts for the
sale of all of the interest of the United States in the reserve.
‘‘(2) In this section:
‘‘(A) The term ‘reserve’ means Naval Petroleum
Reserve Numbered 1.
‘‘(B) The term ‘unit plan contract’ means the
unit plan contract between equity owners of the lands
within the boundaries of Naval Petroleum Reserve
Numbered 1 entered into on June 19, 1944.
‘‘(C) The term ‘effective date’ means the date of
the enactment of the National Defense Authorization
Act for Fiscal Year 1996.
‘‘(b) EQUITY FINALIZATION.—(1) Not later than three
months after the effective date, the Secretary shall finalize
equity interests of the known oil and gas zones in Naval
Petroleum Reserve Numbered 1 in the manner provided by
this subsection.
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‘‘(2) The Secretary shall retain the services of an inde-
pendent petroleum engineer, mutually acceptable to the eq-
uity owners, who shall prepare a recommendation on final
equity figures. The Secretary may accept the recommenda-
tion of the independent petroleum engineer for final equity
in each known oil and gas zone and establish final equity
interest in the Naval Petroleum Reserve Numbered 1 in ac-
cordance with such recommendation, or the Secretary may
use such other method to establish final equity interest in
the reserve as the Secretary considers appropriate.
‘‘(3) If, on the effective date, there is an ongoing equity
redetermination dispute between the equity owners under
section 9(b) of the unit plan contract, such dispute shall
be resolved in the manner provided in the unit plan con-
tract within five months after the effective date. Such reso-
lution shall be considered final for all purposes under this
section.
‘‘(c) TIMING AND ADMINISTRATION OF SALE.—(1) Not
later than two months after the effective date, the Secretary
shall publish a notice of intent to sell the Naval Petroleum
Reserve Numbered 1. The Secretary shall make all technical,
geological, and financial information relevant to the sale
of the reserve available to all interested and qualified buyers
upon request. The Secretary, in consultation with the Ad-
ministrator of General Services, shall ensure that the sale
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process is fair and open to all interested and qualified par-
ties.
‘‘(2)(A) Not later than two months after the effective
date, the Secretary shall retain the services of five independ-
ent experts in the valuation of oil and gas fields to conduct
separate assessments, in a manner consistent with commer-
cial practices, of the value of the interest of the United
States in Naval Petroleum Reserve Numbered 1. In making
their assessments, the independent experts shall consider
(among other factors) all equipment and facilities to be in-
cluded in the sale, the estimated quantity of petroleum and
natural gas in the reserve, and the net present value of the
anticipated revenue stream that the Secretary and the Di-
rector of the Office of Management and Budget jointly deter-
mine the Treasury would receive from the reserve if the re-
serve were not sold, adjusted for any anticipated increases
in tax revenues that would result if the reserve were sold.
The independent experts shall complete their assessments
within six months after the effective date.
‘‘(B) The independent experts shall also determine and
submit to the Secretary the estimated total amount of the
cost of any environmental restoration and remediation nec-
essary at the reserve. The Secretary shall report the estimate
to the Director of the Office of Management and Budget,
the Secretary of the Treasury, and Congress.
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‘‘(C) The Secretary, in consultation with the Director
of the Office of Management and Budget, shall set the mini-
mum acceptable price for the reserve. The Secretary may
not set the minimum acceptable price below the average of
three of the assessments (after excluding the high and low
assessments) made under subparagraph (A).
‘‘(3) Not later than two months after the effective date,
the Secretary shall retain the services of an investment
banker to independently administer, in a manner consistent
with commercial practices and in a manner that maximizes
sale proceeds to the Government, the sale of Naval Petro-
leum Reserve Numbered 1 under this section. Notwithstand-
ing section 7433(b) of this title, costs and fees of retaining
the investment banker shall be paid out of the proceeds of
the sale of the reserve.
‘‘(4)(A) Not later than six months after the effective
date, the investment banker serving as the sales adminis-
trator under paragraph (3) shall complete a draft contract
or contracts for the sale of Naval Petroleum Reserve Num-
bered 1, which shall accompany the invitation for bids and
describe the terms and provisions of the sale of the interest
of the United States in the reserve.
‘‘(B) The draft contract or contracts shall identify—
‘‘(i) all equipment and facilities to be included
in the sale; and
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‘‘(ii) any potential claim or liability (including
liability for environmental restoration and remedi-
ation), and the extent of any such claim or liability,
for which the United States is responsible under sub-
section (d).
‘‘(C) The draft contract or contracts, including the
terms and provisions of the sale of the interest of the United
States in the reserve, shall be subject to review and approval
by the Secretary, the Secretary of the Treasury, and the
Director of the Office of Management and Budget. Each of
those officials shall complete the review of, and approve or
disapprove, the draft contract or contracts not later than
seven months after the effective date.
‘‘(5) Not later than seven months after the effective
date, the Secretary shall publish an invitation for bids for
the purchase of the reserve.
‘‘(6) Not later than 10 months after the effective date,
the Secretary shall identify the highest responsible offer or
offers for purchase of the interest of the United States in
Naval Petroleum Reserve Numbered 1 that, in total, meet
or exceed the minimum acceptable price determined under
paragraph (2).
‘‘(7) The Secretary shall take such action immediately
after the effective date as is necessary to obtain from an
independent petroleum engineer within six months after