207
Subtitle B—Davis-Bacon and
Service Contract Repeals
SEC. 4101. DAVIS-BACON ACT.
(a) REPEAL.—The Act of March 3, 1931 (40 U.S.C.
276a et seq.) (commonly referred to as the Davis-Bacon
Act) is repealed.
(b) REFERENCES.—Any reference in any law to a
wage requirement of the Act of March 3, 1931, shall, 45
days after the date of the enactment of this Act, be null
and void.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect 45 days after the date of
the enactment of this Act but shall not affect any contract
in existence on the expiration of such days or made pursu-
ant to an invitation for bids outstanding on the expiration
of such days.
SEC. 4102. SERVICE CONTRACT ACT OF 1965.
(a) REPEAL.—The Service Contract Act of 1965 (41
U.S.C. 351 et seq.) is repealed.
(b) APPLICATION.—The amendment made by sub-
section (a) shall not apply to a contract which was entered
into before the 45th day after the date of the enactment
of this Act and to which the Service Contract Act of 1965
applied.
208
Subtitle C—Provisions Relating to
the Employee Retirement In-
come Security Act of 1974
SEC. 4201. WAIVER OF MINIMUM PERIOD FOR JOINT AND
SURVIVOR ANNUITY EXPLANATION BEFORE
ANNUITY STARTING DATE.
(a) GENERAL
RULE.—For purposes of section
205(c)(3)(A) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1055(c)(3)(A)), the minimum pe-
riod prescribed by the Secretary of the Treasury between
the date that the explanation referred to in such section
is provided and the annuity starting date shall not apply
if waived by the participant and, if applicable, the partici-
pant’s spouse.
(b) EFFECTIVE DATE.—Subsection (a) shall apply to
plan years beginning after December 31, 1995.
TITLE V—COMMITTEE ON GOV-
ERNMENT 
REFORM 
AND
OVERSIGHT
[Text to be supplied.]
209
TITLE VI—COMMITTEE ON
INTERNATIONAL RELATIONS
SEC. 6001. RECOVERY OF COSTS OF HEALTH CARE SERV-
ICES FOR PERSONNEL OF THE FOREIGN
SERVICE 
OF 
THE 
UNITED 
STATES 
AND
OTHER ELIGIBLE INDIVIDUALS.
(a) AUTHORITIES.—Section 904 of the Foreign Serv-
ice Act of 1980 (22 U.S.C. 4084) is amended—
(1) in subsection (a) by—
(A) striking ‘‘and’’ before ‘‘members of the
families of such members and employees’’; and
(B) by inserting immediately before the pe-
riod ‘‘, and for care provided abroad) such
other persons as are designated by the Sec-
retary of State, except that such persons shall
be considered persons other than covered bene-
ficiaries for purposes of subsections (g) and
(h)’’;
(2) in subsection (d) by inserting ‘‘, subject to
the provisions of subsections (g) and (h)’’ after
‘‘treatment’’; and
(3) by adding the following new subsections:
‘‘(g)(1) In the case of a person who is a covered bene-
ficiary, the Secretary of State is authorized to collect from
a third-party payer the reasonable costs incurred by the
210
Department of State on behalf of such person for health
care services to the same extent that the covered bene-
ficiary would be eligible to receive reimbursement or in-
demnification from the third-party payer for such costs.
‘‘(2) If the insurance policy, plan, contract, or similar
agreement of that third-party payer includes a require-
ment for a deductible or copayment by the beneficiary of
the plan, then the Secretary of State may collect from the
third-party payer only the reasonable costs of the care pro-
vided less the deductible or copayment amount.
‘‘(3) A covered beneficiary shall not be required to
pay any deductible or copayment for health care services
under this subsection.
‘‘(4) No provision of any insurance, medical service,
or health plan contract or agreement having the effect of
excluding from coverage or limiting payment of charges
for care in the following circumstances shall operate to
prevent collection by the Secretary of State under para-
graph (1)—
‘‘(A) care provided directly or indirectly by a
governmental entity;
‘‘(B) care provided to an individual who has not
paid a required deductible or copayment; or
‘‘(C) care provided by a provider with which the
third-party payer has no participation agreement.
211
‘‘(5) No law of any State, or of any political subdivi-
sion of a State, and no provision of any contract or agree-
ment shall operate to prevent or hinder recovery or collec-
tion by the United States under this section.
‘‘(6) As to the authority provided in paragraph (1)
of this subsection—
‘‘(A) the United States shall be subrogated to
any right or claim that the covered beneficiary may
have against a third-party payer;
‘‘(B) the United States may institute and pros-
ecute legal proceedings against a third-party payer
to enforce a right of the United States under this
subsection; and
‘‘(C) the Secretary may compromise, settle, or
waive a claim of the United States under this sub-
section.
‘‘(7) The Secretary shall prescribe regulations for the
administration of this subsection and subsection (h). Such
regulations shall provide for computation of the reasonable
cost of health care services.
‘‘(8) Regulations prescribed under this subsection
shall provide that medical records of a covered beneficiary
receiving health care under this subsection shall be made
available for inspection and review by representatives of
the payer from which collection by the United States is
212
sought for the sole purpose of permitting the third party
to verify—
‘‘(A) that the care or services for which recov-
ery or collection is sought were furnished to the cov-
ered beneficiary; and
‘‘(B) that the provisions of such care or services
to the covered beneficiary meets criteria generally
applicable under the health plan contract involved,
except that this paragraph shall be subject to the
provisions of paragraphs (2) and (4).
‘‘(9) Amounts collected under this subsection or
under subsection (h) from a third party payer or from any
other payer shall be deposited in the Treasury as a mis-
cellaneous offsetting receipt.
‘‘(10) For purposes of this section—
‘‘(A) the term ‘covered beneficiary’ means an
individual eligible to receive health care under this
section whose health care costs are to be paid by a
third-party payer under a contractual agreement
with such payer;
‘‘(B) the term ‘services’, as used in ‘health care
services’ includes products; and
‘‘(C) the term ‘third-party payer’ means an en-
tity that provides a fee-for-service insurance policy,
contract, or similar agreement through the Federal
213
Employees Health Benefit program, under which the
expenses of health care services for individuals are
paid.
‘‘(h) In the case of a person, other than a covered
beneficiary, who receives health care services pursuant to
this section, the Secretary of State is authorized to collect
from such person the reasonable costs of health care serv-
ices incurred by the Department of State on behalf of such
person. The United States shall have the same rights
against persons subject to the provisions of this subsection
as against third-party payers covered by subsection (g).’’.
(b) EFFECTIVE DATE.—The authorities of this sec-
tion shall be effective beginning on the date of the enact-
ment of this Act.
SEC. 6002. ENACTMENT INTO LAW OF DIVISION A OF H.R.
1561.
Division A of H.R. 1561, as passed the House of
Representatives on June 8, 1995 (relating to consolidation
of foreign affairs agencies), is hereby enacted into law.
TITLE VII—COMMITTEE ON THE
JUDICIARY
SEC. 7001. PATENT AND TRADEMARK FEES.
Section 10101 of the Omnibus Budget Reconciliation
Act of 1990 (35 U.S.C. 41 note) is amended—
214
(1) in subsection (a) by striking ‘‘1998’’ and in-
serting ‘‘2002’’;
(2) in subsection (b)(2) by striking ‘‘1998’’ and
inserting ‘‘2002’’; and
(3) in subsection (c)—
(A) by striking ‘‘through 1998’’ and insert-
ing ‘‘through 2002’’; and
(B) by adding at the end the following:
‘‘(9) $119,000,000 in fiscal year 1999.
‘‘(10) $119,000,000 in fiscal year 2000.
‘‘(11) $119,000,000 in fiscal year 2001.
‘‘(12) $119,000,000 in fiscal year 2002.’’.
TITLE VIII—COMMITTEE ON
NATIONAL SECURITY
Subtitle A—Military Retired Pay
SEC. 8001. ELIMINATION OF DISPARITY BETWEEN EFFEC-
TIVE DATES FOR MILITARY AND CIVILIAN RE-
TIREE COST-OF-LIVING ADJUSTMENTS FOR
FISCAL YEARS 1996, 1997, AND 1998.
(a) CONFORMANCE WITH SCHEDULE
FOR CIVIL
SERVICE
COLAS.—Subparagraph 
(B) 
of 
section
1401a(b)(2) of title 10, United States Code, is amended—
(1) by striking out ‘‘THROUGH 1998’’ the first
place it appears and all that follows through ‘‘In the
215
case of’’ the second place it appears and inserting in
lieu thereof ‘‘THROUGH 1996.—In the case of’’;
(2) by striking ‘‘of 1994, 1995, 1996, or 1997’’
and inserting in lieu thereof ‘‘of 1993, 1994, or
1995’’; and
(3) by striking out ‘‘September’’ and inserting
in lieu thereof ‘‘March’’.
(b) REPEAL OF PRIOR CONDITIONAL ENACTMENT.—
Section 8114A(b) of Public Law 103–335 (108 Stat.
2648) is repealed.
Subtitle B—Naval Petroleum
Reserves
SEC. 8011. SALE OF NAVAL PETROLEUM RESERVES.
(a) SALE OF RESERVES REQUIRED.—Chapter 641 of
title 10, United States Code, is amended by inserting after
section 7421 the following new section:
‘‘§ 7421a. Sale of naval petroleum reserves
‘‘(a) SALE REQUIRED.—(1) Notwithstanding any
other provision of this chapter, the Secretary shall sell all
right, title, and interest of the United States in and to
the lands owned or controlled by the United States inside
the naval petroleum and oil shale reserves established by
this chapter. In the case of Naval Petroleum Reserve
Numbered 1, the lands to be sold shall include sections
216
16 and 36 of township 30 south, range 23 east, Mount
Diablo Principal Meridian, California.
‘‘(2) Not later than September 30, 1996, the Sec-
retary shall enter into one or more contracts for the sale
of all of the interest of the United States in the naval
petroleum reserves.
‘‘(b) TIMING AND ADMINISTRATION OF SALE.—(1)
Not later than January 1, 1996, the Secretary shall retain
the services of five independent experts in the valuation
of oil and gas fields to conduct separate assessments, in
a manner consistent with commercial practices, of the fair
market value of the interest of the United States in each
naval petroleum reserve. In making their assessments for
each naval petroleum reserve, the independent experts
shall consider (among other factors) all equipment and fa-
cilities to be included in the sale, the net present value
of the reserve, and the net present value of the anticipated
revenue stream that the Secretary determines the Treas-
ury would receive from the reserve if it were not sold, ad-
justed for any anticipated increases in tax revenues that
would result if it were sold. The independent experts shall
complete their assessments not later than June 1, 1996.
In setting the minimum acceptable price for each naval
petroleum reserve, the Secretary shall consider the average
of the five assessments regarding the reserve or, if more
217
advantageous to the Government, the average of three as-
sessments after excluding the high and low assessments.
‘‘(2) Not later than March 1, 1996, the Secretary
shall retain the services of an investment banker to inde-
pendently administer, in a manner consistent with com-
mercial practices and in a manner that maximizes sale
proceeds to the Government, the sale of the naval petro-
leum reserves under this section. The Secretary may enter
into the contracts required under this paragraph and
paragraph (1) on a noncompetitive basis.
‘‘(3) Not later than June 1, 1996, the sales adminis-
trator selected under paragraph (2) shall complete a draft
contract for the sale of each naval petroleum reserve,
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. Each draft contract shall
identify all equipment and facilities to be included in the
sales. Each draft contract, including the terms and provi-
sions of the sale of the interest of the United States in
the naval petroleum reserves, shall be subject to review
and approval by the Secretary, the Secretary of the Treas-
ury, and the Director of the Office of Management and
Budget.
218
‘‘(4) Not later than July 1, 1996, the Secretary shall
publish an invitation for bids for the purchase of the naval
petroleum reserves.
‘‘(5) Not later than September 1, 1996, the Secretary
shall accept the highest responsible offer for purchase of
the interest of the United States in the naval petroleum
reserves, or a particular reserve, that meets or exceeds the
minimum acceptable price determined under paragraph
(1). The Secretary may accept an offer for only a portion
of a reserve so long as the entire reserve is still sold under
this section at a price that meets or exceeds the minimum
acceptable price.
‘‘(c) FUTURE LIABILITIES.—To effectuate the sale of
the interest of the United States in a naval petroleum re-
serve, the Secretary may extend such indemnities and war-
ranties as the Secretary considers reasonable and nec-
essary to protect the purchaser from claims arising from
the ownership in the reserve by the United States.
‘‘(d) SPECIAL RULES PREPARATORY TO SALE OF
NAVAL PETROLEUM RESERVE NUMBERED 1.—(1) Not
later than June 1, 1996, the Secretary shall finalize equity
interests of the known oil and gas zones in Naval Petro-
leum Reserve Numbered 1 in the manner provided by this
subsection.
219
‘‘(2) The Secretary shall retain the services of an
independent petroleum engineer, mutually acceptable to
the equity owners, who shall prepare a recommendation
on final equity figures. The Secretary may accept the rec-
ommendation 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 Num-
bered 1 in accordance with such recommendation, or the
Secretary may use such other method to establish final
equity interest in that reserve as the Secretary considers
appropriate. The Secretary may enter into the contract re-
quired under this paragraph on a noncompetitive basis.
‘‘(3) If, on the effective date of this section, 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 contract not later than June 1, 1996. Such
resolution shall be considered final for all purposes under
this section.
‘‘(4) In this section, 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 (Elk Hills) entered into on June 19, 1944.
‘‘(e) PRODUCTION ALLOCATION REGARDING NAVAL
PETROLEUM RESERVE NUMBERED 1.—(1) As part of the
220
contract for purchase of Naval Petroleum Reserve Num-
bered 1, the purchaser of the interest of the United States
in that reserve shall agree to make up to 25 percent of
the purchaser’s share of annual petroleum production
from the purchased lands available for sale to small refin-
ers, which do not have their own adequate sources of sup-
ply of petroleum, for processing or use only in their own
refineries. None of the reserved production sold to small
refiners may be resold in kind. The purchaser of that re-
serve may reduce the quantity of petroleum reserved under
this subsection in the event of an insufficient number of
qualified bids. The seller of this petroleum production has
the right to refuse bids that are less than the prevailing
market price of comparable oil.
‘‘(2) The purchaser of Naval Petroleum Reserve
Numbered 1 shall also agree to ensure that the terms of
every sale of the purchaser’s share of annual petroleum
production from the purchased lands shall be so struc-
tured as to give full and equal opportunity for the acquisi-
tion of petroleum by all interested persons, including
major and independent oil producers and refiners alike.
‘‘(f) MAINTAINING PRODUCTION PENDING SALE OF
NAVAL PETROLEUM RESERVE NUMBERED 1.—Until the
sale of Naval Petroleum Reserve Numbered 1 is completed
under this section, the Secretary shall continue to produce
221
that reserve at the maximum daily oil or gas rate from
a reservoir, which will permit maximum economic develop-
ment of the reservoir consistent with sound oil field engi-
neering practices in accordance with section 3 of the unit
plan contract. The definition of maximum efficient rate
in section 7420(6) of this title shall not apply to Naval
Petroleum Reserve Numbered 1.
‘‘(g) EFFECT ON EXISTING CONTRACTS.—(1) In the
case of any contract, in effect on the effective date of this
section, for the purchase of production from any part of
the United States’ share of the naval petroleum reserves,
the sale of the interest of the United States in the reserves
shall be subject to the contract for a period of three
months after the closing date of the sale or until termi-
nation of the contract, whichever occurs first. The term
of any contract entered into after the effective date of this
section for the purchase of such production shall not ex-
ceed the anticipated closing date for the sale of the re-
serve.
‘‘(2) In the case of Naval Petroleum Reserve Num-
bered 1, the Secretary shall exercise the termination pro-
cedures provided in the contract between the United
States and Bechtel Petroleum Operation, Inc., Contract
Number DE–ACO1–85FE60520 so that the contract ter-
222
minates not later than the date of closing of the sale of
that reserve.
‘‘(3) In the case of Naval Petroleum Reserve Num-
bered 1, the Secretary shall exercise the termination pro-
cedures provided in the unit plan contract so that the unit
plan contract terminates not later than the date of closing
of the sale of that reserve.
‘‘(h) OFFER OF SETTLEMENT OF STATE OF CALI-
FORNIA CLAIMS REGARDING NAVAL PETROLEUM RE-
SERVE NUMBERED 1.—(1) In connection with the sale of
Naval Petroleum Reserve Numbered 1, the Secretary shall
offer to settle all claims against the United States by the
State of California and the Teachers’ Retirement Fund
of the State of California with respect to lands within that
reserve, including sections 16 and 36 of township 30
south, range 23 east, Mount Diablo Principal Meridian,
California, or production or proceeds of sale from that re-
serve. Subject to paragraph (2), the Secretary shall offer
in settlement of such claims—
‘‘(A) a payment from funds provided for this
purpose in advance in appropriation Acts;
‘‘(B) a grant of land pursuant to sections 2275
and 2276 of the Revised Statutes of the United
States (43 U.S.C. 851 and 852) so long as such
land is not generating revenue for the United States;
223
‘‘(C) any other option that would not be incon-
sistent with the Congressional Budget Act of 1974
(2 U.S.C. 621 et seq.); or
‘‘(D) any combination of subparagraphs (A),
(B), and (C).
‘‘(2) The value of any payment, grant, or option (or
combination thereof) offered as settlement under para-
graph (1) may not exceed an amount equal to seven per-
cent of the proceeds from the sale of Naval Petroleum Re-
serve Numbered 1, after deducting the costs incurred to
conduct the sale of that reserve.
‘‘(3) Acceptance of the settlement offered under para-
graph (1) shall be subject to the condition that all claims
against the United States by the State of California or
the Teachers’ Retirement Fund of the State of California
are released with respect to lands within the Naval Petro-
leum Reserve Numbered 1, including sections 16 and 36
of township 30 south, range 23 east, Mount Diablo Prin-
cipal Meridian, California, or production or proceeds of
sale from that reserve. The Secretary may specify the
manner in which the release of such claims shall be evi-
denced.
‘‘(i) EFFECT ON ANTITRUST LAWS.—Nothing in this
section shall be construed to alter the application of the
antitrust laws of the United States to the purchaser of
224
a naval petroleum reserve or to the lands in the naval pe-
troleum reserves subject to sale under this section upon
the completion of the sale.
‘‘(j) PRESERVATION OF PRIVATE RIGHT, TITLE, AND
INTEREST.—Nothing in this section shall be construed to
adversely affect the ownership interest of any other entity
having any right, title, and interest in and to lands within
the boundaries of the naval petroleum reserves.
‘‘(k) CONGRESSIONAL NOTIFICATION.—Section 7431
of this title shall not apply to the sale of the naval petro-
leum reserves under this section. However, the Secretary
may not enter into a contract for the sale of a naval petro-
leum reserve until the end of the 15-day period beginning
on the date on which the Secretary notifies the Committee
on Armed Services of the Senate and the Committee on
National Security and the Committee on Commerce of the
House of Representatives that the Secretary has accepted
an offer under subsection (b)(5) for the sale of that re-
serve.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 7421 the following new
item:
‘‘7421a. Sale of naval petroleum reserves.’’.
225
Subtitle C—National Defense
Stockpile
SEC. 8021. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL
DEFENSE STOCKPILE FOR DEFICIT REDUC-
TION.
(a) DISPOSALS REQUIRED.—(1) During fiscal year
1996, the President shall dispose of all cobalt contained
in the National Defense Stockpile that, as the date of the
enactment of this Act, is authorized for disposal under any
law (other than this Act).
(2) In addition to the disposal of cobalt under para-
graph (1), the President shall dispose of additional quan-
tities of cobalt and quantities of aluminum, ferro colum-
bium, germanium, palladium, platinum, and rubber con-
tained in the National Defense Stockpile so as to result
in receipts to the United States in amounts equal to—
(A) $21,000,000 during the fiscal year ending
September 30, 1996;
(B) $338,000,000 during the five-fiscal year pe-
riod ending on September 30, 2000; and
(C) $649,000,000 during the seven-fiscal year
period ending on September 30, 2002.
(3) The President is not required to include the dis-
posal of the materials identified in paragraph (2) in an
annual materials plan for the National Defense Stockpile.
226
Disposals made under this section may be made without
consideration of the requirements of an annual materials
plan.
(b) LIMITATION ON DISPOSAL QUANTITY.—The total
quantities of materials authorized for disposal by the
President under subsection (a)(2) may not exceed the
amounts set forth in the following table:
Authorized Stockpile Disposals
Material for disposal
Quantity
Aluminum .............................................................................
62,881 short tons
Cobalt ....................................................................................
42,482,323 pounds con-
tained
Ferro Columbium ..................................................................
930,911 pounds contained
Germanium ...........................................................................
68,207 kilograms
Palladium ..............................................................................
1,264,601 troy ounces
Platinum ...............................................................................
452,641 troy ounces
Rubber ..................................................................................
125,138 long tons
(c) DEPOSIT OF RECEIPTS.—Notwithstanding sec-
tion 9 of the Strategic and Critical Materials Stock Piling
Act (50 U.S.C. 98h), funds received as a result of the dis-
posal of materials under subsection (a)(2) shall be depos-
ited into the general fund of the Treasury for the purpose
of deficit reduction.
(d) RELATIONSHIP TO OTHER DISPOSAL AUTHOR-
ITY.—The disposal authority provided in subsection (a)(2)
is new disposal authority and is in addition to, and shall
not affect, any other disposal authority provided by law
regarding the materials specified in such subsection.
(e) TERMINATION OF DISPOSAL AUTHORITY.—The
President may not use the disposal authority provided in
227
subsection (a)(2) after the date on which the total amount
of receipts specified in subparagraph (C) of such sub-
section is achieved.
(f) DEFINITION.—The term ‘‘National Defense
Stockpile’’ means the National Defense Stockpile provided
for in section 4 of the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. 98c).
TITLE IX—COMMITTEE ON
RESOURCES
SEC. 9000. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE IX—COMMITTEE ON RESOURCES
Sec. 9000. Table of contents.
Subtitle A—Alaska and Helium Privatization
PART 1—ALASKA
Sec. 9001. Exports of Alaskan North Slope oil.
Sec. 9002. Arctic Coastal Plain leasing and revenue.
Sec. 9003. Alaska Power Administration sale.
PART 2—HELIUM PRIVATIZATION
Sec. 9011. Short title.
Sec. 9012. Amendment of Helium Act.
Sec. 9013. Authority of Secretary.
Sec. 9014. Sale of crude helium.
Sec. 9015. Elimination of stockpile.
Sec. 9016. Repeal of authority to borrow.
Sec. 9017. Reports.
Sec. 9018. Land conveyance in Potter County, Texas.
Subtitle B—Water and Power
PART 1—POWER MARKETING ADMINISTRATIONS
Sec. 9201. Short title.
Sec. 9202. Sale of the Southeastern Power Administration.
Sec. 9203. Federal Energy Regulatory Commission jurisdiction.
Sec. 9204. Evaluation of sales of Southwestern Power Administration and
Western Area Power Administration facilities.
Sec. 9205. Bonneville Power Administration appropriations refinancing.
228
PART 2—RECLAMATION
Sec. 9211. Prepayment of certain repayment contracts between the United
States and the Central Utah Water Conservancy District.
Sec. 9212. Treatment of city of Folsom as a Central Valley Project contractor.
Sec. 9213. Sly Park.
Sec. 9214. Hetch Hetchy Dam.
Subtitle C—National Parks, Forests, and Public Lands
PART 1—CONCESSION REFORM
Sec. 9301. Short title.
Sec. 9302. Purpose.
Sec. 9303. Definitions.
Sec. 9304. Nature and types of concession authorizations.
Sec. 9305. Competitive selection process for concession service agreements.
Sec. 9306. Concessioner evaluations.
Sec. 9307. Capital improvements.
Sec. 9308. Duration of concession authorization.
Sec. 9309. Rates and charges to the public.
Sec. 9310. Transferability of concession authorizations.
Sec. 9311. Fees charged by the United States for concession authorizations.
Sec. 9312. Disposition of fees.
Sec. 9313. Dispute resolution.
Sec. 9314. Recordkeeping.
Sec. 9315. Application of general governmental acquisition requirements.
Sec. 9316. Rules of construction.
Sec. 9317. Regulations.
Sec. 9318. Relationship to other existing laws.
PART 2—NATIONAL FOREST SKI AREAS
Sec. 9321. Privatization of Forest Service ski areas.
Sec. 9322. Ski area permit fees and withdrawal of ski areas from operation of
mining laws.
PART 3—DOMESTIC LIVESTOCK GRAZING
Sec. 9331. Applicable regulations.
Sec. 9332. Fees and charges.
Sec. 9333. Animal unit month.
Sec. 9334. Term of grazing permits or grazing leases.
Sec. 9335. Conformance with land use plan.
Sec. 9336. Effective date.
PART 4—REGIONAL DISPOSAL FACILITY OF SOUTHWESTERN LOW LEVEL
RADIOACTIVE WASTE DISPOSAL COMPACT
Sec. 9341. Conveyance of property.
Sec. 9342. Conveyance of easements.
Subtitle D—Territories
PART 1—COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
Sec. 9401. Termination of annual direct grant assistance.
229
PART 2—TERRITORIAL ADMINISTRATIVE CESSATION ACT
Sec. 9421. Short title.
Sec. 9422. Congressional findings.
Sec. 9423. Elimination of Office of Territorial and International Affairs.
Sec. 9424. Certain activities not funded.
Subtitle E—Minerals
PART 1—HARDROCK MINING
Sec. 9501. Findings and purpose.
Sec. 9502. Patents under the general mining law.
Sec. 9503. Royalty under the general mining law.
Sec. 9504. Mineral materials.
Sec. 9505. Claim maintenance requirements.
PART 2—FEDERAL OIL AND GAS ROYALTIES
Sec. 9511. Short title.
Sec. 9512. Definitions.
Sec. 9513. Limitation periods.
Sec. 9514. Adjustment and refunds.
Sec. 9515. Required recordkeeping.
Sec. 9516. Royalty interest, penalties, and payments.
Sec. 9517. Limitation on assessments.
Sec. 9518. Alternatives for marginal properties.
Sec. 9519. Royalty in kind.
Sec. 9520. Royalty simplification and cost-effective audit and collection require-
ments.
Sec. 9521. Repeals.
Sec. 9522. Delegation to States.
Sec. 9523. Performance standard.
Sec. 9524. Indian lands.
Sec. 9525. Private lands.
Sec. 9526. Effective date.
Subtitle F—Indian Gaming and Health
PART 1—INDIAN GAMING
Sec. 9601. Indian gaming.
PART 2—INDIAN HEALTH: MEDICAID
Sec. 9611. Health care facilities.
Sec. 9612. Provider reimbursement.
Sec. 9613. Study.
PART 3—INDIAN HEALTH: MEDICARE
Sec. 9621. Health care facilities.
Sec. 9622. Provider reimbursement.
Subtitle G—Consultation
Sec. 9701. Consultation.
Subtitle H—Mapping
230
Sec. 9801. Short title.
Sec. 9802. Surveying and mapping contracting program.
Sec. 9803. Inventory of activities.
Sec. 9804. Plan to increase use of contracts.
Sec. 9805. Reports.
Sec. 9806. Definitions.
Subtitle I—National Park System Reform
Sec. 9901. Short title.
Sec. 9902. Definitions.
PART 1—NATIONAL PARK SYSTEM PLAN
Sec. 9911. Preparation of National Park System plan.
Sec. 9912. Management review of National Park System.
Sec. 9913. National Park System Review Commission.
Sec. 9914. Subsequent Act of Congress required to modify or terminate a park.
Sec. 9915. Authorization of appropriations.
Sec. 9916. Commendation and protection of National Park rangers.
PART 2—NEW AREA ESTABLISHMENT
Sec. 9921. Study of new Park System areas.
Subtitle A—Alaska and Helium
Privatization
PART 1—ALASKA
SEC. 9001. EXPORTS OF ALASKAN NORTH SLOPE OIL.
(a) AMENDMENT OF MINERAL LEASING ACT.—Sec-
tion 28(s) of the Mineral Leasing Act (30 U.S.C. 185(s))
is amended to read as follows:
‘‘EXPORTS OF ALASKAN NORTH SLOPE OIL
‘‘(s)(1) Subject to paragraphs (2) through (6) of this
subsection and notwithstanding any other provision of this
Act or any other provision of law (including any regula-
tion) applicable to the export of oil transported by pipeline
over right-of-way granted pursuant to section 203 of the
Trans-Alaska Pipeline Authorization Act (43 U.S.C.
1652), such oil may be exported unless the President finds
231
that exportation of this oil is not in the national interest.
The President shall make his national interest determina-
tion within 5 months after the date of enactment of this
subsection. In evaluating whether exports of this oil are
in the national interest, the President shall at a minimum
consider—
‘‘(A) whether exports of this oil would diminish
the total quantity or quality of petroleum available
to the United States;
‘‘(B) the results of an appropriate environ-
mental review, including consideration of appropriate
measures to mitigate any potential adverse effects of
exports of this oil on the environment, which shall
be completed within four months of the date of the
enactment of this subsection; and
‘‘(C) whether exports of this oil are likely to
cause sustained material oil supply shortages or sus-
tained oil prices significantly above world market
levels that would cause sustained material adverse
employment effects in the United States or that
would cause substantial harm to consumers, includ-
ing in noncontiguous States and Pacific territories.
If the President determines that exports of this oil are
in the national interest, he may impose such terms and
conditions (other than a volume limitation) as are nec-
232
essary or appropriate to ensure that such exports are con-
sistent with the national interest.
‘‘(2) Except in the case of oil exported to a country
with which the United States entered into a bilateral inter-
national oil supply agreement before November 26, 1979,
or to a country pursuant to the International Emergency
Oil Sharing Plan of the International Energy Agency, any
oil transported by pipeline over right-of-way granted pur-
suant to section 203 of the Trans-Alaska Pipeline Author-
ization Act (43 U.S.C. 1652) shall, when exported, be
transported by a vessel documented under the laws of the
United States and owned by a citizen of the United States
(as determined in accordance with section 2 of the Ship-
ping Act, 1916 (46 U.S.C. App. 802)).
‘‘(3) Nothing in this subsection shall restrict the au-
thority of the President under the Constitution, the Inter-
national Emergency Economic Powers Act (50 U.S.C.
1701 et seq.), or the National Emergencies Act (50 U.S.C.
1601 et seq.) to prohibit exports of this oil or under Part
B of title II of the Energy Policy and Conservation Act
(42 U.S.C. 6271–76).
‘‘(4) The Secretary of Commerce shall issue any rules
necessary for implementation of the President’s national
interest determination, including any licensing require-
ments and conditions, within 30 days of the date of such
233
determination by the President. The Secretary of Com-
merce shall consult with the Secretary of Energy in ad-
ministering the provisions of this subsection.
‘‘(5) If the Secretary of Commerce finds that export-
ing oil under authority of this subsection has caused sus-
tained material oil supply shortages or sustained oil prices
significantly above world market levels and further finds
that these supply shortages or price increases have caused
or are likely to cause sustained material adverse employ-
ment effects in the United States, the Secretary of Com-
merce, in consultation with the Secretary of Energy, shall
recommend, and the President may take, appropriate ac-
tion concerning exports of this oil, which may include
modifying or revoking authority to export such oil.
‘‘(6) Administrative action under this subsection is
not subject to sections 551 and 553 through 559 of title
5, United States Code.’’.
(b) GAO REPORT.—
(1) REVIEW.—The Comptroller General of the
United States shall conduct a review of energy pro-
duction in California and Alaska and the effects of
Alaskan North Slope oil exports, if any, on consum-
ers, independent refiners, and shipbuilding and ship
repair yards on the West Coast and in Hawaii. The
Comptroller General shall commence this review 2
234
years after the date of enactment of this Act and,
within 6 months after commencing the review, shall
provide a report to the Committee on Resources and
the Committee on Commerce of the House of Rep-
resentatives and the Committee on Energy and Nat-
ural Resources of the Senate.
(2) CONTENTS OF REPORT.—The report shall
contain a statement of the principal findings of the
review and recommendations for Congress and the
President to address job loss in the shipbuilding and
ship repair industry on the West Coast, as well as
adverse impacts on consumers and refiners on the
West Coast and in Hawaii, that the Comptroller
General attributes to Alaska North Slope oil exports.
SEC. 9002. ARCTIC COASTAL PLAIN LEASING AND REVE-
NUE.
(a) PURPOSE.—It is the purpose of this section to
reduce the Federal deficit by an estimated $1,300,000,000
over the next 5 years. This revenue will be derived from
competitive bonus bids for oil and gas leases in the Coastal
Plain area of Alaska’s North Slope.
(b) DEFINITIONS.—For the purposes of this section:
(1) The term ‘‘Secretary’’ means the Secretary
of the Interior.
235
(2) The term ‘‘Coastal Plain’’ means that por-
tion of the Arctic National Wildlife Refuge identified
in section 1002(b)(1) of the Alaska National Inter-
est Lands Conservation Act of 1980 (Public Law
96–487; 16 U.S.C. 3142(b)(1)) consisting of ap-
proximately 1,549,000 acres.
(c) COMPATIBILITY.—Congress hereby determines
that the oil and gas leasing program and activities author-
ized 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) AUTHORIZATION.—(1) Congress hereby author-
izes and directs the Secretary to establish and promptly
implement a program to assure the expeditious competi-
tive leasing exploration, development, production, and
transportation of the oil and gas resources of the Coastal
Plain. Regulations to implement this program and to gov-
ern oil and gas leasing, exploration, development and pro-
duction shall be promulgated by the Secretary within 6
months of the date of enactment of this section.
(2) The Coastal Plain leasing program required by
paragraph (1) shall include the following:
236
(A) The first lease sale of not less than 200,000
acres shall be conducted within 12 months of the
date of enactment of this section.
(B) The lease sales shall be based upon an in-
dustry nomination process.
(C) The Secretary is directed to grant to the
highest responsible qualified bidder or bidders by
competitive bidding, under regulations promulgated
in advance, any oil and gas lease on unleased Fed-
eral lands within the Coastal Plain. These regula-
tions may provide for the deposit of cash bids in an
interest-bearing account until the Secretary accepts
the bids, with interest earned paid to the General
Treasury for bids that are accepted, and to the un-
successful bidders for bids that are rejected.
(D) Royalty payments shall not be less than
121⁄2 percent, and rental payments shall be pre-
scribed by the Secretary.
(E) The Attorney General of the United States
and the Federal Trade Commission may conduct
such review of lease terms and lease sale activities
as are necessary to ensure compliance with the anti-
trust laws.
(F) The size of lease tracts may be up to
11,520 acres but not less than 2,560 acres, as deter-
237
mined by the Secretary, except that the Secretary
may lease smaller tracts if he determines smaller
tracts are necessary to promote a more competitive
leasing program or are necessary in certain locations
to mitigate reasonably foreseeable impacts on the en-
vironment.
(G) Each lease shall be issued for an initial pe-
riod of up to 10 years and shall be extended as long
as oil or gas is produced in paying quantities from
the lease or unit area to which the lease is commit-
ted or as drilling or reworking operations as ap-
proved by the Secretary are conducted thereon.
(H) The Secretary is authorized and directed to
promulgate regulations and to include terms in
leases to ensure that—
(i) activities are conducted pursuant to an
approved exploration or development plan;
(ii) lessees secure an appropriate perform-
ance bond to cover activities;
(iii) provision is made for the suspension,
cancellation, assignment, relinquishment and
unitization of leases; and
(iv) the Secretary has access to lease infor-
mation and that confidential, privileged or pro-
238
prietary information furnished by lessees is ade-
quately protected.
(e) JUDICIAL REVIEW.—Any complaint filed seeking
judicial review of an action of the Secretary in promulgat-
ing any regulation under this section may be filed only
in the United States Court of Appeals for the District of
Columbia, and such complaint shall be filed within 90 days
from the date of such promulgation, or after such date
if such complaint is based solely on grounds arising after
such 90th day, in which case the complaint must be filed
within 90 days after the complainant knew or reasonably
should have known of the grounds for the complaint. Any
complaint seeking judicial review of any other actions of
the Secretary under this section may be filed in any appro-
priate district court of the United States, and such com-
plaint must be filed within 90 days from the date of the
action being challenged, or after such date if such com-
plaint is based solely on grounds arising after such 90th
day, in which case the complaint must be filed within 90
days after the complainant knew or reasonably should
have known of the grounds for the complaint.
(f) ADMINISTRATION.—(1) Section 1003 of the Alas-
ka National Interest Lands Conservation Act of 1980 (94
Stat. 2452; 16 U.S.C. 3143) is repealed.
239
(2) This section shall be considered the primary land
management authorization for all activities associated
with exploration, development, and production from the
Coastal Plain. No land management review, determina-
tion, or other action shall be required except as specifically
authorized by this section.
(g) PROTECTION
OF FISH
AND WILDLIFE RE-
SOURCES
AND OTHER ENVIRONMENTAL VALUES.—(1)
Before conducting a competitive oil and gas lease sale
under this section, the Secretary shall promulgate, within
6 months, as provided in subsection (d)(1), such rules and
regulations as are necessary to ensure that oil and gas
exploration, development, production, and transportation
activities undertaken in the Coastal Plain achieve the rea-
sonable protection of the fish and wildlife resources, envi-
ronment and subsistence uses of the Coastal Plain.
(2) The Secretary shall administer the provisions of
this section through regulations and lease terms that the
Secretary determines to be necessary to mitigate reason-
ably foreseeable and significantly adverse effects on the
fish and wildlife, surface resources and subsistence re-
sources of the Coastal Plain.
(3)(A) The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, Alaska, and the
North Slope Borough, is authorized to close to leasing and
240
designate up to 30,000 acres of the Coastal Plain as Spe-
cial Areas if the Secretary determines that these lands are
of such unique character and interest so as to require spe-
cial management and regulatory protection. The Secretary
shall notify the Committee on Energy and Natural Re-
sources of the Senate and the Committee on Resources
of the House of Representatives 90 days in advance of
making such designations. The Secretary may permit leas-
ing of all or portions of any lands within the Coastal Plain
designated as Special Areas by setting lease terms that
limit or condition surface use and occupancy by lessees
of such lands but permit the use of horizontal drilling
technology from sites on leases located outside the des-
ignated Special Areas.
(B) Notwithstanding any other provision of law or
any international agreement to which the United States
is a party, the Secretary’s sole authority to close lands
within the Coastal Plain to oil and gas leasing and to ex-
ploration, development, and production as provided for in
this part is set forth in subparagraph (A).
(4) The Secretary shall, in consultation with the
State of Alaska, the city of Kaktovik, Alaska, and the
North Slope Borough, develop guidelines to encourage the
siting of facilities having common use characteristics
(service bases, ports and docks, airports, major pipelines
241
and roads) in a manner which leads to facility consolida-
tion, avoids unnecessary duplication, utilizes existing fa-
cilities, minimizes impacts on fish, wildlife, habitat and the
subsistence activities of residents of Native communities,
and avoids disruption of the lives of the residents of the
Village of Kaktovik and other communities.
(5) Notwithstanding title XI of the Alaska National
Interest Lands Conservation Act of 1980 (94 Stat. 2457;
16 U.S.C. 3161 et seq.), the Secretary is authorized and
directed to grant, under sections 28(a) through (t) and
(v) through (y) of the Mineral Leasing Act (30 U.S.C.
185), rights-of-way and easements across the Coastal
Plain for the purposes of this section, for pipeline con-
struction, and the transportation of oil and gas and relat-
ed purposes.
(6) The Secretary is authorized to close, on a sea-
sonal basis, portions of the Coastal Plain to exploratory
drilling activities as necessary to protect caribou calving
areas and other species of fish and wildlife.
(h) APPLICATION OF ENVIRONMENTAL LAWS.—The
‘‘Final Legislative Environmental Impact Statement’’
(April 1987) prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980
(94 Stat. 2449; 16 U.S.C. 3142) and section 102(2)(C)
of the National Environmental Policy Act of 1969 (89
242
Stat. 424; 42 U.S.C. 4332(2)(C)) is hereby determined
to be adequate and legally sufficient for all actions author-
ized pursuant to this section, including all phases of oil
and gas leasing, exploration, development, production,
transportation and related activities, including the grant-
ing of rights-of-way, use permits and other authorizations.
(i) NEW REVENUES.—(1) Notwithstanding any other
provision of law, all revenues received from competitive
bids, sales, bonuses, royalties, rents, fees, interest or other
income derived from the leasing of oil and gas resources
within the Coastal Plain shall be deposited into the Treas-
ury of the United States: Provided, That 50 percent of
all such Coastal Plain revenues shall be paid by the Sec-
retary of the Treasury semiannually, on March 30th and
on September 30th of each year, to the State of Alaska.
(2) On March 1st of each year following the date of
enactment of this section, the Secretary shall prepare and
submit to the Congress an annual report on the revenues
derived and on the leasing program authorized by this sec-
tion.
(j) CONVEYANCE.—Notwithstanding the provisions of
section 1302(h)(2) of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3192(h)(2)), the Secretary
is authorized and directed to convey (1) to the Kaktovik
Inupiat Corporation the surface estate of the lands de-
243
scribed in paragraph 2 of Public Land Order 6959, to the
extent necessary to fulfill the corporation’s entitlement
under section 12 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1611), and (2) to the Arctic Slope Re-
gional Corporation the subsurface estate beneath such
surface estate pursuant to the August 9, 1983, agreement
between the Arctic Slope Regional Corporation and the
United States of America.
(k) PENALTY.—Any person, including any Federal
official, who fails to comply with any provision or mandate
of this section, a lease term, or a regulation promulgated
under this section, after notice of such failure and expira-
tion of a reasonable period for corrective action, shall be
liable, after hearing, for a civil penalty of not more than
$10,000 for each day of the continuance of such failure.
(l) COMMUNITY ASSISTANCE.—There is hereby estab-
lished a Community Assistance Fund in the Treasury
which shall be maintained at a level of $5,000,000 annu-
ally from the Federal share of Coastal Plain revenues and
shall be available to the Secretary for the purposes of this
section. Organized boroughs, other municipal subdivisions
of the State of Alaska, and recognized Indian Reorganiza-
tion Act entities which are impacted by activities author-
ized under this section shall be eligible, on application to
the Secretary, for local assistance from the Community
244
Assistance Fund for needed social services and to provide
public services and facilities required in connection with
supporting exploration and development of the Coastal
Plain.
(m) EMPLOYMENT AND CONTRACTING.—As a condi-
tion of any leases, permits, or other Federal authorizations
granted or issued pursuant to this section, a recipient of
those leases, permits, or authorizations shall be required
to use its best efforts to assure that the lessee and its
agents and contractors provide a fair share of employment
and contracting for Alaska Natives and Alaska Native
Corporations from throughout the State.
(n) USE OF ANWR REVENUES.—
(1) ESTABLISHMENT OF ENDOWMENT.—There
is hereby established in the general fund of the
Treasury a separate account which shall be known
as the National Endowment for Fish and Wildlife.
(2) CONTENTS.—(A) Except as provided in
subparagraph (B), the Endowment shall consist of
revenues received from the following sources:
(i) Gifts, devises, and bequests to the En-
dowment.
(ii) Amounts appropriated by the Congress
to the Endowment.
245
(iii) Any revenues deposited into the
Treasury of the United States under subsection
(i), from the Federal share of revenues derived
from oil and gas leasing within the Coastal
Plain, that exceed $1,300,000,000.
(B) After the Endowment has reached a level of
$250,000,000 in principal, further payments to the
Endowment shall consist only of the following:
(i) Gifts, devises, and bequests to the En-
dowment.
(ii) Amounts appropriated by the Congress
to the Endowment.
(iii) 5 percent of the Federal royalties de-
rived from commercial production of oil and gas
on Federal leases on the Coastal Plain.
(3) ESTABLISHMENT OF FISH AND WILDLIFE
CONSERVATION COMMISSION.—(A) To carry out the
purposes of this subsection, there is hereby estab-
lished a commission to be known as the Fish and
Wildlife Conservation Commission.
(B) The Commission shall consist of—
(i) the Secretary of the Interior, who shall
be the chairman,
(ii) 3 Members of the Senate selected by
the President of the Senate, and
246
(iii) 3 Members of the House of Represent-
atives selected by the Speaker.
(C) At least 1 member of the Commission se-
lected from each House of Congress shall be a mem-
ber of the minority party in that House.
(D) Any Member of the House of Representa-
tives who is a member of the Commission, if re-
elected to the succeeding Congress, may serve on the
Commission notwithstanding the expiration of a
Congress.
(E) Any vacancy on the Commission shall be
filled in the same manner as the original appoint-
ment.
(4) EXPENDITURES BY COMMISSION.—(A) The
Fish and Wildlife Commission may make expendi-
tures from the Endowment for the following fish and
wildlife conservation purposes:
(i) Acquisition of important habitat lands
for endangered species or threatened species
from owners of private property. Such lands
may be acquired solely on a willing seller basis
and shall be managed by the Secretary of the
Interior for the conservation of such species
pursuant to the terms of section 5 of the En-
247
dangered Species Act of 1973 (16 U.S.C.
1534).
(ii) Provision of funding for purposes au-
thorized under the Endangered Species Act of
1973.
(iii) Provision of funds to the North Amer-
ican Wetlands Conservation Fund pursuant to
the North American Wetlands Conservation Act
(16 U.S.C. 4401 et seq.).
(B) The amount expended under subparagraph
(A)(iii) each fiscal year shall equal or exceed 25 per-
cent of the total expenditures from the Endowment
in that fiscal year.
(C) The Secretary of the Interior may not rec-
ommend any lands or interest in lands for purchase
or other forms of acquisition using funds made
available under the terms of this section unless the
Secretary of the Interior—
(i) has determined that such lands are nec-
essary for the conservation of endangered spe-
cies or other fish and wildlife; and
(ii) has consulted with the county or other
unit of local government in which such lands
are located and with the Governor of the State
concerned.
248
(D) Land or an interest in land may not be ac-
quired with moneys from the Endowment unless—
(i) the acquisition thereof has been ap-
proved by the Governor of the State in which
the land is located; and
(ii) the owner of the land or interest has
offered the land or interest for acquisition
under this subsection and consented to the ac-
quisition.
(5) ANNUAL REPORT.—The Commission shall,
through its chairman, annually report in detail to
the Congress, by not later than the first Monday in
December, regarding the operations of the Commis-
sion during the preceding fiscal year.
(6) STATE LAW.—The jurisdiction of any State,
both civil and criminal, over persons upon areas ac-
quired under this subsection shall not be changed or
otherwise affected by reason of the acquisition and
administration of the areas by the United States as
endangered species habitat. Nothing in this sub-
section is intended to interfere with the operation of
the game laws of the States.
(7) ADMINISTRATION OF AREAS ACQUIRED.—
Areas of lands, waters, or interest therein acquired
or reserved pursuant to this subsection shall, unless
249
otherwise provided by law, be administered by the
Secretary of the Interior under rules and regulations
prescribed by the Secretary to conserve and protect
endangered species in accordance with the Endan-
gered Species Act of 1973, or to restore or develop
adequate wildlife habitat.
(8) DEFINITIONS.—In this subsection:
(A) The term ‘‘Commission’’ means the
Fish and Wildlife Conservation Commission es-
tablished by this subsection.
(B) The term ‘‘Endowment’’ means the
National Endowment for Fish and Wildlife es-
tablished by this subsection.
(9) CONFORMING AMENDMENT.—Section 7 of
the North American Wetlands Conservation Act of
1989 (16 U.S.C. 4406) is amended by adding at the
end the following:
‘‘(e) FISH AND WILDLIFE COMMISSION FUNDING.—
In addition to the amounts made available under sub-
sections (a), (b), and (c) of this section, the Council may
receive funds from the Fish and Wildlife Commission to
carry out the purposes of this Act. Use of such funds shall
not be subject to the cost allocation requirements of sec-
tion 8 of this Act.’’.
250
SEC. 9003. ALASKA POWER ADMINISTRATION SALE.
(a) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘Eklutna assets’’ means the
Eklutna Hydroelectric Project and related assets as
described in section 4 and Exhibit A of the Eklutna
Purchase Agreement.
(2) The term ‘‘Eklutna Purchase Agreement’’
means the August 2, 1989, Eklutna Purchase
Agreement between the Alaska Power Administra-
tion of the Department of Energy and the Eklutna
Purchasers, together with any amendments thereto
which were adopted before the enactment of this sec-
tion.
(3) The term ‘‘Eklutna Purchasers’’ means the
Municipality of Anchorage doing business as Munici-
pal Light and Power, the Chugach Electric Associa-
tion, Inc. and the Matanuska Electric Association,
Inc.
(4) The term ‘‘Secretary’’ means the Secretary
of Energy except where otherwise specified.
(5) The term ‘‘Snettisham assets’’ means the
Snettisham Hydroelectric Project and related assets
as described in section 4 and Exhibit A of the
Snettisham Purchase Agreement.
(6) The term ‘‘Snettisham Purchase Agree-
ment’’ means the February 10, 1989, Snettisham
251
Purchase Agreement between the Alaska Power Ad-
ministration of the Department of Energy and the
Alaska Power Authority and its successors in inter-
est, together with any amendments thereto which
were adopted before the enactment of this section.
(b) SALE OF SNETTISHAM AND EKLUNTA ASSETS.—
(1) SNETTISHAM.—The Secretary is authorized
and directed to sell and transfer the Snettisham as-
sets to the State of Alaska in accordance with the
terms of this section and the Snettisham Purchase
Agreement.
(2) EKLUTNA.—The Secretary is authorized
and directed to sell and transfer the Eklutna assets
to the Eklutna Purchasers in accordance with the
terms of this section and the Eklutna Purchase
Agreement.
(3) COOPERATION
OF
OTHER
AGENCIES.—
Other departments, agencies, and instrumentalities
of the United States shall cooperate with the Sec-
retary in implementing the sales and transfers under
this section.
(4) AUTHORIZATION OF APPROPRIATIONS; CON-
TRIBUTED FUNDS.—(A) There are authorized to be
appropriated such sums as may be necessary to pre-
pare, survey, or acquire Snettisham and Eklutna as-
252
sets for sale and transfer under this section. Such
preparations and acquisitions shall provide sufficient
title in the assets to ensure beneficial use, enjoy-
ment, and occupancy thereof to the purchasers.
(B) Notwithstanding any other provision of law,
the Alaska Power Administration is authorized to re-
ceive, administer, and expend such contributed funds
as may be provided by the Eklutna Purchasers or
customers or the Snettisham Purchasers or cus-
tomers for the purposes of upgrading, improving,
maintaining, 
or 
administering 
Eklutna 
or
Snettisham. Upon the termination of the Alaska
Power Administration required under subsection (d),
the Secretary of Energy shall administer and expend
any remaining balances of such contributed funds
for the purposes intended by the contributors.
(c) GENERAL PROVISIONS.—
(1) RIGHTS-OF-WAY
AND
OTHER
LANDS
FOR
THE EKLUTNA PROJECT.—With respect to Eklutna
lands described in Exhibit A of the Eklutna Pur-
chase Agreement:
(A) The Secretary of the Interior shall
issue rights-of-way to the Alaska Power Admin-
istration for subsequent reassignment to the
253
Eklutna Purchasers at no cost to the Eklutna
Purchasers.
(B) Such rights-of-way shall remain effec-
tive for a period equal to the life of the Eklutna
hydroelectric project as extended by improve-
ments, repairs, renewals, or replacements.
(C) Such rights-of-way shall be sufficient
for the operation, maintenance, repair, and re-
placement of, and access to, the facilities of the
Eklutna hydroelectric project located on mili-
tary lands and lands managed by the Bureau of
Land Management, including land selected by,
but not yet conveyed to, the State of Alaska.
(D) If the Eklutna Purchasers subse-
quently sell or transfer the Eklutna hydro-
electric project to private ownership, the Bu-
reau of Land Management may assess reason-
able and customary fees for continued use of
the rights-of-way on lands managed by the Bu-
reau of Land Management and military lands
in accordance with applicable law.
(E) The Secretary shall transfer fee title to
lands at Anchorage Substation to the Eklutna
Purchasers at no additional cost if the Sec-
retary of the Interior determines that pending
254
claims to and selections of those lands are in-
valid or relinquished.
(F) With respect only to the Eklutna lands
identified in Exhibit A of the Eklutna Purchase
Agreement, the State of Alaska may select, and
the Secretary of the Interior shall convey, to the
State, improved lands under the selection enti-
tlements in section 6 of the Alaska Statehood
Act (Public Law 85–508; 72 Stat. 339) and the
North Anchorage Land Agreement of January
31, 1983. The conveyance of such lands is sub-
ject to the rights-of-way provided to the
Eklutna Purchasers under subparagraph (A).
(2) LANDS FOR THE SNETTISHAM PROJECT.—
With respect to the Snettisham lands identified in
Exhibit A of the Snettisham Purchase Agreement,
the State of Alaska may select, and the Secretary of
the Interior shall convey to the State, improved
lands under the selection entitlement in section 6 of
the Alaska Statehood Act (Public Law 85–508; 72
Stat. 339).
(3) EFFECT ON STATE SELECTIONS.—Notwith-
standing the expiration of the right of the State of
Alaska to make selections under section 6 of the
Alaska Statehood Act (Public Law 85–508; 72 Stat.
255
339), the State of Alaska may select lands author-
ized for selection under this section or any Purchase
Agreement incorporated into or ratified by this sec-
tion. The State shall complete such selections within
one year after the date of the enactment of this sec-
tion. The Secretary of the Interior shall convey lands
selected by the State under this section notwith-
standing the limitation contained in section 6(b) of
the Alaska Statehood Act (Public Law 85–508; 72
Stat. 339) regarding the occupancy, appropriation,
or reservation of selected lands. Nothing in this sub-
section shall be construed to authorize the Secretary
of the Interior to convey to the State of Alaska a
total acreage of selected lands in excess of the total
acreage which could be transferred to the State of
Alaska pursuant to the Alaska Statehood Act (Pub-
lic Law 85–508; 72 Stat. 339), and other applicable
law.
(4) REPEAL OF ACT OF AUGUST 9, 1955.—The
Act of August 9, 1955 (69 Stat. 618), concerning
water resources investigations in Alaska, is repealed.
(5) TREATMENT OF ASSET SALE.—The sales of
assets under this section shall not be considered a
disposal of Federal surplus property under the Fed-
eral Property and Administrative Services Act of
256
1949 (40 U.S.C. 484) or the Surplus Property Act
of 1944 (50 U.S.C. App. 1622).
(6) APPLICATION OF CERTAIN LAWS.—(A) The
Act of July 31, 1950 (64 Stat. 382), shall cease to
apply on the date, as determined by the Secretary,
when all Eklutna assets have been conveyed to the
Eklutna Purchasers.
(B) Section 204 of the Flood Control Act of
1962 (Public Law 87–874; 76 Stat. 1193) shall
cease to apply effective on the date, as determined
by the Secretary, when all Snettisham assets have
been conveyed to the State of Alaska.
(d) TERMINATION OF ALASKA POWER ADMINISTRA-
TION.—
(1) 
TERMINATION
OF
ALASKA
POWER
ADMINISTATION.—Not later than one year after both
of the sales authorized in this section have occurred,
as measured by the Transaction Dates stipulated in
the Purchase Agreements, the Secretary shall—
(A) complete the business of, and close
out, the Alaska Power Administration;
(B) prepare and submit to Congress a re-
port documenting the sales; and
257
(C) return unobligated balances of funds
appropriated for the Alaska Power Administra-
tion to the Treasury of the United States.
(2) DOE ORGANIZATION ACT.—Section 302(a)
of the Department of Energy Organization Act (42
U.S.C. 7152(a)) is amended as follows:
(A) In paragraph (1)—
(i) by striking out subparagraph (C);
and
(ii) by redesignating subparagraphs
(D), (E), and (F) as subparagraphs (C),
(D), and (E) respectively.
(B) In paragraph (2), by striking out ‘‘the
Bonneville Power Administration, and the Alas-
ka Power Administration’’ and inserting in lieu
thereof ‘‘and the Bonneville Power Administra-
tion’’.
The amendments made by this paragraph shall take
effect on the date on which the Secretary submits
the report referred to in subparagraph (B) of para-
graph (1).
(e) PROCEEDS.—The proceeds from the sale of
Snettisham and Eklutna assets under this section shall be
credited to miscellaneous receipts in the Treasury.
258
PART 2—HELIUM PRIVATIZATION
SEC. 9011. SHORT TITLE.
This part may be cited as the ‘‘Helium Privatization
Act of 1995’’.
SEC. 9012. AMENDMENT OF HELIUM ACT.
Except as otherwise expressly provided, whenever in
this part an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other 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. 9013. AUTHORITY OF SECRETARY.
Sections 3, 4, and 5 are amended to read as follows:
‘‘SEC. 3. AUTHORITY OF SECRETARY.
‘‘(a) EXTRACTION AND DISPOSAL OF HELIUM ON
FEDERAL LANDS.—(1) The Secretary may enter into
agreements with private parties for the recovery and dis-
posal of helium on Federal lands upon such terms and
conditions as he deems fair, reasonable and necessary. The
Secretary may grant leasehold rights to any such helium.
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 re-
covery and disposal of helium. Such agreements may be
subject to such rules and regulations as may be prescribed
by the Secretary.
259
‘‘(2) Any agreement under this subsection shall be
subject to the existing rights of any affected Federal oil
and gas lessee. Each such agreement (and any extension
or renewal thereof) shall contain such terms and condi-
tions as deemed appropriate by the Secretary.
‘‘(3) 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 pro-
duced from Federal lands in existence at the enactment
of the Helium Privatization Act of 1995 except to the ex-
tent that such agreements are renewed or extended after
such date.
‘‘(b) STORAGE, TRANSPORTATION, AND SALE.—The
Secretary is authorized to store, transport, and sell helium
only in accordance with this Act.
‘‘(c) MONITORING AND REPORTING.—The Secretary
is authorized to monitor helium production and helium re-
serves in the United States and to periodically prepare re-
ports regarding the amounts of helium produced and the
quantity of crude helium in storage in the United States.
‘‘SEC. 4. STORAGE, TRANSPORTATION, AND WITHDRAWAL
OF CRUDE HELIUM.
‘‘(a) STORAGE, TRANSPORTATION, 
AND
WITH-
DRAWAL.—The Secretary is authorized to store and trans-
port crude helium and to maintain and operate existing
260
crude helium storage at the Bureau of Mines Cliffside
Field, together with related helium transportation and
withdrawal facilities.
‘‘(b) CESSATION OF PRODUCTION, REFINING, AND
MARKETING.—Effective 18 months after the date of en-
actment of the Helium Privatization Act of 1995, the Sec-
retary shall cease producing, refining and marketing re-
fined helium and shall cease carrying out all other activi-
ties relating to helium which the Secretary was authorized
to carry out under this Act before the date of enactment
of the Helium Privatization Act of 1995, except those ac-
tivities described in subsection (a). The amount of helium
reserves owned by the United States and stored in the Bu-
reau of Mines Cliffside Field at such date of cessation,
less 600,000,000 cubic feet, shall be the helium reserves
owned by the United States required to be sold pursuant
to section 8(b) hereof.
‘‘(c) DISPOSAL
OF FACILITIES.—(1) Within two
years after the date on which the Secretary ceases produc-
ing, refining and marketing refined helium and ceases all
other activities relating to helium in accordance with sub-
section (b), the Secretary shall dispose of all facilities,
equipment, and other real and personal property, together
with all interests therein, held by the United States for
the purpose of producing, refining and marketing refined
261
helium. The disposal of such property shall be in accord-
ance with the provisions of law governing the disposal of
excess or surplus properties of the United States.
‘‘(2) 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 pur-
poses of section 6(f). All costs associated with such sale
and disposal (including costs associated with termination
of personnel) and with the cessation of activities under
subsection (b) shall be paid from amounts available in the
helium production fund established under section 6(f).
‘‘(3) Paragraph (1) shall not apply to any facilities,
equipment, or other real or personal property, or any in-
terest therein, necessary for the storage and transpor-
tation of crude helium or any equipment needed to main-
tain the purity, quality control, and quality assurance of
helium in the reserve.
‘‘(d) EXISTING CONTRACTS.—All contracts which
were entered into by any person with the Secretary for
the purchase by such person from the Secretary of refined
helium and which are in effect on the date of the enact-
ment of the Helium Privatization Act of 1995 shall remain
in force and effect until the date on which the facilities
referred to in subsection (c) are disposed of. Any costs
associated with the termination of such contracts shall be
262
paid from the helium production fund established under
section 6(f).
‘‘SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITH-
DRAWAL.
‘‘Whenever the Secretary provides helium storage,
withdrawal, or transportation services to any person, the
Secretary is authorized and directed to impose fees on
such person to reimburse the Secretary for the full costs
of providing such storage, transportation, and withdrawal.
All such fees received by the Secretary shall be treated
as moneys received under this Act for purposes of section
6(f).’’.
SEC. 9014. SALE OF CRUDE HELIUM.
Section 6 is amended as follows:
(1) Subsection (a) is amended by striking out
‘‘from the Secretary’’ and inserting ‘‘from persons
who have entered into enforceable contracts to pur-
chase an equivalent amount of crude helium from
the Secretary’’.
(2) Subsection (b) is amended by inserting
‘‘crude’’ before ‘‘helium’’ and by adding the follow-
ing at the end thereof: ‘‘Except as may be required
by reason of subsection (a), the Secretary shall not
make sales of crude helium under this section in
263
such amounts as will disrupt the market price of
crude helium.’’.
(3) Subsection (c) is amended by inserting
‘‘crude’’ before ‘‘helium’’ the first place it appears
and by striking ‘‘together with interest as provided
in subsection (d) of this section’’ and all that follows
down through the period at the end of such sub-
section and inserting the following:
‘‘all funds required to be repaid to the United States as
of October 1, 1995, under this section (hereinafter re-
ferred to 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 as follows:
‘‘(1) Divide the outstanding amount of such re-
payable amounts by the volume (in mcf) of crude he-
lium owned by the United States and stored in the
Bureau of Mines Cliffside Field at the time of the
sale concerned.
‘‘(2) Adjust the amount determined under para-
graph (1) by the Consumer Price Index for years be-
ginning after December 31, 1995.’’.
(4) Subsection (d) is amended to read as fol-
lows:
‘‘(d) EXTRACTION OF HELIUM FROM DEPOSITS ON
FEDERAL LANDS.—All moneys received by the Secretary
264
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 sub-
section (c) of this section.’’.
(5) Subsection (e) is repealed.
(6) Subsection (f) is amended by inserting
‘‘(1)’’ after ‘‘(f)’’ and by adding the following at the
end thereof:
‘‘(2) Within 7 days after the commencement of each
fiscal year after the disposal of the facilities referred to
in section 4(c), all amounts in such fund in excess of
$2,000,000 (or such lesser sum as the Secretary deems
necessary to carry out this Act during such fiscal year)
shall be paid to the Treasury and credited as provided in
paragraph (1). Upon repayment of all amounts referred
to in subsection (c), the fund established under this sec-
tion shall be terminated and all moneys received under this
Act shall be deposited in the Treasury as General Reve-
nues.’’.
SEC. 9015. ELIMINATION OF STOCKPILE.
Section 8 is amended to read as follows:
‘‘SEC. 8. ELIMINATION OF STOCKPILE.
‘‘(a) REVIEW OF RESERVES.—The Secretary shall re-
view annually the known helium reserves in the United
States and make a determination as to the expected life
265
of the domestic helium reserves (other than Federally
owned helium stored at the Cliffside Reservoir) at that
time.
‘‘(b) STOCKPILE SALES.—Not later than January 1,
2005, the Secretary shall commence offering for sale crude
helium from helium reserves owned by the United States
in such minimum annual amounts as would be necessary
to dispose of all such helium reserves in excess of
600,000,000 cubic feet (mcf) on a straight-line basis be-
tween such date and January 1, 2015: Provided, That the
minimum price for all such sales, as determined by the
Secretary in consultation with the helium industry, shall
be such as will ensure repayment of the amounts required
to be repaid to the Treasury under section 6(c): And pro-
vided further, That the minimum annual sales requirement
may be deferred only if, and to the extent that, the Sec-
retary is unable to arrange sales at the minimum price.
The sales shall be at such times during each year and in
such lots as the Secretary determines, in consultation with
the helium industry, are necessary to carry out this sub-
section with minimum market disruption.
‘‘(c) DISCOVERY OF ADDITIONAL RESERVES.—The
discovery of additional helium reserves shall not affect the
duty of the Secretary to make sales of helium as provided
in subsection (b), as the case may be.’’.
266
SEC. 9016. REPEAL OF AUTHORITY TO BORROW.
Sections 12 and 15 are repealed.
SEC. 9017. REPORTS.
Section 16 is amended by redesignating existing sec-
tion 16 as section 16(a) and inserting the following at the
end thereof:
‘‘(b)(1) The Inspector General of the Department of
the Interior shall cause to be prepared, not later than
March 31 following each fiscal year commencing with the
date of enactment of the Helium Privatization Act of
1995, annual financial statements for the Helium Oper-
ations of the Bureau of Mines. The Director of the Bureau
of Mines shall cooperate with the Inspector General in ful-
filling this requirement, and shall provide him with such
personnel and accounting assistance as may be necessary
for that purpose. The financial statements shall be audited
by the General Accounting Office, and a report on such
audit shall be delivered by the General Accounting Office
to the Secretary of the Interior and Congress, not later
than June 30 following the end of the fiscal year for which
they are prepared. The audit shall be prepared in accord-
ance with generally accepted government auditing stand-
ards.
‘‘(2) The financial statements shall be comprised of
the following:
267
‘‘(A) A balance sheet reflecting the overall fi-
nancial position of the Helium Operations, including
assets and liabilities thereof;
‘‘(B) the Statement of Operations, reflecting
the fiscal period results of the Helium Operations;
‘‘(C) a statement cash flows or changes in fi-
nancial position of the Helium Operations; and
‘‘(D) a reconciliation of budget reports of the
Helium Operations.
‘‘(3) The Statement of Operations shall include but
not be limited to the revenues from, and costs of, sales
of crude helium, the storage and transportation of crude
helium, the production, refining and marketing of refined
helium, and the maintenance and operation of helium stor-
age facilities at the Bureau of Mines Cliffside Field. The
term ‘revenues’ for this purpose shall exclude (A) royalties
paid to the United States for production of helium or other
extraction of resources, except to the extent that the He-
lium Operations incur direct costs in connection therewith,
and (B) proceeds from sales of assets other than inven-
tory. The term ‘expenses’ shall include, but not be limited
to (i) all labor costs of the Bureau of Mines Helium Oper-
ations, and of the Department of the Interior in connec-
tion therewith, and (ii) for financial reporting purposes
but not in connection with the determination of sales
268
prices in section 6(c), all current-period interest on out-
standing repayable amounts (as described in section 6(c))
calculated at the same rates as such interest was cal-
culated prior to the enactment of the Helium Privatization
Act of 1995.
‘‘(4) The balance sheet shall include, but not be lim-
ited to, on the asset side, the present discounted market
value of crude helium reserves; and on the liability side,
the accrued liability for principal and interest on debt to
the United States. For financial reporting purposes but
not in connection with the determination of sales prices
in section 6(c), the balance sheet shall also include accrued
but unpaid interest on outstanding repayable amounts (as
described in section 6(c)) through the date of the report,
calculated at the same rates as such interest was cal-
culated prior to the enactment of the Helium Privatization
Act of 1995.’’.
SEC. 9018. 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.
269
(b) LAND DESCRIPTION.—The parcel of land re-
ferred 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 description of such lands is as fol-
lows:
(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) afore-
said, described by metes and bounds as follows:
Beginning at a stone 20 x 12 x 3 inches
marked X, set by W. D. Twichell in 1905, for
the Northeast corner of this survey and the
Northwest corner of Section 59;
Thence, South 0 degrees 12 minutes East with
the West line of said Section 59, 999.4 varas to
the Northeast corner of the South 160 acres of
East half of Section 78:
270
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 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 Sec-
tion 78;
271
Thence South 0 degrees 12 minutes East 934.6
varas to the place of beginning.
Containing an area of 331 acres, more or less.
Subtitle B—Water and Power
PART 1—POWER MARKETING ADMINISTRATIONS
SEC. 9201. SHORT TITLE.
This part may be cited as the ‘‘Power Administration
Act’’.
SEC. 9202. SALE OF THE SOUTHEASTERN POWER ADMINIS-
TRATION.
(a) SALE OF THE SOUTHEASTERN POWER ADMINIS-
TRATION ASSETS.—The Secretary of Energy (hereafter in
this part referred to as the ‘‘Secretary’’) is authorized and
directed to sell the facilities used to generate the electric
power marketed by the Southeastern Power Administra-
tion, including all dams, locks, reservoirs, and related
transmission and generation structures, equipment, facili-
ties and real property (including rights-of-way) which are
used in connection with the operation of such power gen-
eration facilities. The sale shall also include all contracts,
marketing agreements, and any and all other rights, inter-
ests, and obligations held or owed by the Southeastern
Power Administration. Each sale shall be subject to all
existing storage rights in such reservoirs acquired by local
interests pursuant to the Water Supply Act of 1958 (Pub-
272
lic Law 85–500; 43 U.S.C. 390b) and sections 1, 2, and
3 of Public Law 88–140 (43 U.S.C. 390c through 390e)
for water supply or other purposes and all such rights
shall survive such sale; all obligations of the United States
under contracts with such local interests for the use of
such storage shall be assumed by any purchaser so that
such local interests may continue to operate and utilize
their storage in accordance with their existing contracts
with the United States without entering into an additional
contract with the United States or the purchaser, notwith-
standing any provision of law or contract to the contrary.
In order to assure that the facilities are transferred in a
manner that provides a reasonable payment to the United
States, sales under this section shall be made through a
competitive bidding process open to all bidders determined
by the Secretary to be financially qualified and who have
the experience and resources necessary to manage the
transferred assets. No facility or group of facilities may
be sold for an amount less than the minimum bid estab-
lished and published by the Secretary. The minimum bid
shall be equal to the net present value of the outstanding
debt repayable to the United States and attributable to
the facility or group of facilities concerned.
(b) COOPERATION OF OTHER AGENCIES.—The heads
of other affected Federal departments and agencies shall
273
assist the Secretary in implementing the sales authorized
by this section. Upon receiving a written request from the
Secretary, the head of any such department or agency hav-
ing administrative jurisdiction over any facility to be sold
under this section shall transfer (at such time as may be
specified by the Secretary in such request) such facility
to the Secretary for purposes of effectuating such sale.
(c) FINANCIAL AND BID MANAGEMENT ADVISOR.—
(1) RETENTION
OF
ADVISOR.—Within six
months of the date of enactment of this Act, the
Secretary shall retain an experienced private sector
firm to serve as financial and bid management advi-
sor (hereinafter ‘‘advisor’’) to the Secretary with re-
spect to such sales. The advisor shall not have any
substantial financial interest in the existing assets,
their operation or the ultimate purchasers.
(2) NOTICE.—Within six months after the date
of enactment of this Act, the Secretary shall also
publish a notice in the Federal Register soliciting all
parties which have an operational or ownership in-
terest in the Southeast Power Administration to pro-
vide evidence of such interest within 90 days of the
published notice.
(3) ADVISOR’S REPORT.—Within six months of
being retained by the Secretary and based on infor-
274
mation provided by the Secretary and the informa-
tion obtained in paragraph (2), the advisor shall pro-
vide to the Secretary a report containing each of the
following:
(A) A plan for the competitive sale of all
assets and interests, held by the Southeastern
Power Administration, out of Federal owner-
ship and operation.
(B) An estimate of the net present value of
the income expected to be derived over the next
50 years from each facility or group of facilities
to be sold under this section.
(C) An estimate of the net present value of
the expenses expected to be incurred over the
next 50 years in connection with each facility or
group of facilities to be sold under this section.
(D) a comparison between the net of sub-
paragraphs (A) and (B) and the net present
value of the outstanding debt which the Federal
government attributes to the asset being sold.
(E) The options for the grouping of facili-
ties to be sold under this section. The transfer
shall be structured to transfer assets and inter-
ests of the Southeast Power Administration by
watershed or by project unless the Advisor can
275
provide satisfactory information to the Sec-
retary that another alternative should be used.
Groupings of assets shall specifically be de-
signed to transfer all assets in a manner that
provides reasonable payment to the United
States of all assets within the Southeast Power
Administration.
(d) PROCEEDS.—The Secretary is directed to use up
to $6,000,000 from unobligated balances available to the
Department of Energy to fund any sale preparation costs
or studies provided for in this section, and shall provide
an accounting of all sale preparation costs and studies to
the Committee on Resources of the House of Representa-
tives and to the Committee on Energy and Natural Re-
sources of the Senate within 60 days after completion of
the sale or study. The proceeds of any sale of a facility
or group of facilities under this section shall be used first
to offset the costs of carrying out such sale or study and
the remaining net proceeds shall be deemed to extinguish
the outstanding debt repayable to the United States and
attributable to such facility or group of facilities. Any por-
tion of such net proceeds which exceeds the net present
value of the outstanding debt repayable to the United
States and attributable to the facility or group of facilities
276
concerned shall be deposited in the Treasury of the United
States as miscellaneous receipts.
(e) TREATMENT OF SALES FOR PURPOSES OF CER-
TAIN LAWS.—The sales of assets under this part shall not
be considered a disposal of Federal surplus property under
the following provisions of law:
(1) Section 203 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C.
484).
(2) Section 13 of the Surplus Property Act of
1944 (50 U.S.C. App. 1622).
(f) EXISTING CONTRACTS, USES, ETC.—All sales of
assets and rights under this section shall be subject to all
contracts, debt obligations to non-Federal entities, and
other binding agreements which apply, as of the date of
such sale, to the facilities concerned and to the sale of
electric power from such facilities. The purchaser of each
such facility shall assume all liabilities and obligations of
the United States under such contracts, obligations or
other agreements. The Southeastern Power Administra-
tion shall not, after the date of enactment of this Act,
enter into a long-term agreement, contract, or other long-
term obligation or responsibility, except to the extent that
such an obligation is essential to the continued operation
of the Southeastern Power Administration or will signifi-
277
cantly enhance or maintain the value of a facility after
it is transferred. The United States shall remain respon-
sible for concluding all lawsuits associated with the assets
which are the subject of a transfer and which are extant
as of the date of the enactment of this Act, whether in
its capacity of plaintiff or defendant. Any right, title, or
interest of the United States which exists at the conclusion
of such lawsuits and which would otherwise have been
transferred, but for the lawsuit, shall be transferred to the
party in interest who acquired the related asset from the
United States. The United States shall remain responsible
for any outstanding Indian trust responsibilities, unless
the transfer in question specifically identifies the obliga-
tion being transferred.
(g) REPORT TO FERC.—Not later than June 30,
1997, the Secretary shall provide each of the following to
the Federal Energy Regulatory Commission each of the
following:
(1) A description of—
(A) all the assets tangible and intangible
that comprise each hydroelectric project to be
sold under this section;
(B) the existing terms of operation with
respect to such hydroelectric project; and
278
(C) any other interest being proposed for
transfer.
(2) The information pertaining to such hydro-
electric project required by title 18 of the Code of
Federal Regulations, subparts B and F, or G, as ap-
propriate, except exhibit E.
(3) The date when an offer for purchase of the
assets must be submitted.
(h) NOTICE OF SALE AND SOLICITATION OF BIDS.—
Not later than March 31, 1998, the Secretary shall pub-
lish a notice in the Federal Register which includes each
of the following:
(1) A description of—
(A) all the assets tangible and intangible
that comprise each hydroelectric project to be
sold under this section;
(B) the existing terms of operation with
respect to such hydroelectric project; and
(C) any other interest being proposed for
transfer.
(2) The date, time, and conditions of the bids
that must be met to submit a successful bid for the
assets to be sold under this part.
(3) The terms and conditions identified in the
proposed license provided from the Federal Energy
279
Regulatory Commission to the Secretary under this
part.
(i) DATE OF SALE.—All sales under this section shall
be completed between July 1, 1999, and September 30,
1999.
(j) TERMINATION OF THE SOUTHEASTERN POWER
ADMINISTRATION.—Following the sale of all facilities re-
ferred to in subsection (a), the Secretary shall complete
the business of and close out the Southeast Power Admin-
istration and return the unexpended balances of funds ap-
propriated for the Administration to the Treasury of the
United States. To the extent practical, the purchasers
under this section should, consistent with good business
practices, attempt to offer to employ those former employ-
ees of the Southeastern Power Administration who are
necessary to the continued operation of such facilities fol-
lowing the sale of the facilities.
SEC. 9203. FEDERAL ENERGY REGULATORY COMMISSION
JURISDICTION.
(a) REGULATION
OF RATES
AND CHARGES.—All
rates and charges established for the wholesale sale of
electric power from facilities sold under section 9202 shall
be subject to part 2 of the Federal Power Act. This sub-
section shall take effect upon the expiration of any con-
tract which is applicable to the sale of such electric power
280
on the date of the sale of the facility concerned. In approv-
ing, disapproving or establishing rates and charges for the
sale of electric power from any facility sold under section
9202, the Federal Energy Regulatory Commission shall
determine the extent to which any proposed increase in
any such rate or charge is attributable to the sale of such
facility. The Commission shall disallow any such increase
to the extent the increase is attributable to such sale and
is greater than 1⁄2 of the increase (between the date of
sale of the facility and the date on which the application
for a rate increase is filed) in the Consumer Price Index
(published by the Bureau of Labor Statistics) for the re-
gion in which such power is sold. For purposes of deter-
mining the amount of a proposed increase in a rate or
charge for the sale of electric power from any facility sold
under section 9202, the increase shall be measured from
the rates and charges in effect on date of the sale of the
facility. This subsection applies to all wholesale purchasers
who, for the calendar year ending immediately prior to the
year in which this Act is enacted, received at least 20 per-
cent of their power from the Southeastern Power Adminis-
tration.
(b) ORIGINAL LICENSE.—Not later than January 1,
1998, the Federal Energy Regulatory Commission shall
provide the Secretary with a proposed license for each hy-
281
droelectric project to be sold under section 9202. Not later
than September 30, 1999, the Commission shall issue to
the purchaser of each hydroelectric project sold under sec-
tion 9202 a license under part I of the Federal Power
Act (16 U.S.C. 791a–823b) authorizing the continued op-
eration and maintenance of such project for a term of 30
years. Such license shall—
(1) be for the project purposes established by
the existing terms of operation and shall be consist-
ent with the proposed license provided to the Sec-
retary;
(2) be conditioned upon the requirement that
the licensed project continue to be operated and
maintained in accordance with the existing terms of
operation, except that the licensee may make im-
provements to the project which increase capacity
without amendment to the license so long as existing
minimum flows are not affected;
(3) be subject only to the appropriate standard
‘‘L-Form’’ license conditions, published at 54 FPC
1792–1928 (1975), except that the license may not
be reopened for any purpose for the first 10 years
of the license;
(4) provide a 10-year period for the licensee to
meet the Commission’s dam safety regulations, set
282
forth at title 18 of the Code of Federal Regulations,
part 12;
(5) not be subject to: the word ‘‘constructed’’ in
section 3(10), the 4 provisos of section 4(e); section
6 to the extent it requires the licensee’s acceptance
of those terms and conditions of the Act that this
subsection waives; section 10(e) as it concerns an-
nual charges for the use and occupancy of Federal
lands and facilities; section 10(f), section 10(j), sec-
tion 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
(6) contain minimum flow restrictions no more
restrictive than those currently in effect, if any, such
minimum flow restrictions may not be altered during
the primary term of the license.
(c) ACTS APPLICABLE TO LICENSING.—The issuance
of a license pursuant to subsection (b) shall not be subject
to the provisions of the Federal Land Policy and Manage-
ment Act of 1976, section 2402 of the Energy Policy Act
of 1992, the National Environmental Policy Act of 1969,
the Endangered Species Act of 1973, the Wild and Scenic
Rivers Act, the Federal Water Pollution Control Act, the
National Historic Preservation Act, the Coastal Zone
Management Act, the Fish and Wildlife Coordination Act,
283
or any other Act otherwise applicable to the licensing of
the projects.
(d) EFFECT OF LICENSE.—A license issued under
subsection (b)—
(1) is deemed to meet the licensing standards
of the Federal Power Act, including section 10(a)
and the last sentence of section 4(e) (16 U.S.C.
797(e)); and
(2) shall constitute the sole and exclusive source
for a transferred hydroelectric project of authoriza-
tions and requirements with respect to project oper-
ation.
(e) RESERVATIONS.—Any power site reservation es-
tablished by the President, the Department of the Interior,
or pursuant to section 24 of the Federal Power Act (16
U.S.C. 818), or any other law, which exists on any lands,
whether Federally or privately owned, that are included
within the final project boundaries of a transferred hydro-
electric project as approved by the Commission shall be
vacated by operation of law upon issuance of a license for
such project.
(f) RELICENSING.—All requirements of part I of the
Federal Power Act and of any other Act applicable to the
licensing of a hydroelectric project shall apply to a trans-
284
ferred hydroelectric project upon expiration of an original
license issued under this section.
(g) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘Commission’’ means the Federal
Energy Regulatory Commission.
(2) The term ‘‘existing terms of operation’’
means any applicable statutes, executive department
regulations, orders, rule curves and the like, memo-
randa of agreement, and contractual arrangements
pertaining to a transferred hydroelectric project that
were in effect as of the date of enactment of this
Act.
(3) 
The 
term 
‘‘transferred 
hydroelectric
project’’ means the facilities, land, and other assets
sold or to be sold to a transferee under this part and
noticed by the Secretary, including any such land,
facilities, or assets that comprise a project as de-
fined in section 3(11) of the Federal Power Act (16
U.S.C. 796(11)).
SEC. 9204. EVALUATION OF SALES OF SOUTHWESTERN
POWER 
ADMINISTRATION 
AND 
WESTERN
AREA POWER ADMINISTRATION FACILITIES.
(a) ENABLING FEDERAL STUDIES.—Section 505 of
the Energy and Water Development Appropriations Act
of 1993 (Public Law 102–377) is hereby repealed.
285
(b) EVALUATION OF ISSUES.—The Secretary of En-
ergy and the Secretary of the Interior shall enter into ar-
rangements with an experienced private sector firm to
serve as advisor to the Secretary with respect to the sale
of the facilities used to generate and transmit the electric
power marketed by the Southwestern Power Administra-
tion and the Western Area Power Administration, includ-
ing all dams, locks, reservoirs, transmission and related
structures, equipment, facilities and all real and tangible
property (including rights-of-way) which are used in con-
nection with such power generation and transmission fa-
cilities. Prior to December 31, 1996, the advisor shall pro-
vide to the Secretary and the Congress a report identifying
all recipients of water and power from such facilities, all
contracts, debt obligations, equity interests, and other
binding agreements which apply to the facilities concerned
and to the sale of electric power from such facilities, all
assets tangible and intangible, all applicable requirements
relating to environmental mitigation, Indian trust respon-
sibilities, land ownership or use rights relevant to the pro-
posed transfers which could terminate based on a transfer
out of Federal ownership, and navigational requirements
which affect the operation of such facilities. Such evalua-
tion shall also include an evaluation of the tax con-
sequences, and the revenue impacts of such consequences
286
for the United States, of possible arrangements for the
sale of such facilities to potential transferees. The report
shall also investigate alternative groupings of the facilities
for purposes of sale in order to determine which groupings
would be most desirable for purposes of effectuating such
sales. Proposed transfers should be structured by water-
shed or by project unless the advisor can provide satisfac-
tory information to the Secretary that another alternative
should be used. Asset groupings shall specifically be de-
signed to effectuate the maximum return for all of the as-
sets.
SEC. 9205. BONNEVILLE POWER ADMINISTRATION APPRO-
PRIATIONS REFINANCING.
(a) DEFINITIONS.—For the purposes of this section:
(1) The term ‘‘Administrator’’ means the Ad-
ministrator of the Bonneville Power Administration.
(2) The term ‘‘capital investment’’ means a
capitalized cost funded by Federal appropriations
that—
(A) is for a project, facility, or separable
unit or feature of a project or facility;
(B) is a cost for which the Administrator
is required by law to establish rates to repay to
the United States Treasury through the sale of
electric power, transmission, or other services;
287
(C) excludes a Federal irrigation invest-
ment; and
(D) excludes an investment financed by the
current revenues of the Administrator or by
bonds issued and sold, or authorized to be is-
sued and sold, by the Administrator under sec-
tion 13 of the Federal Columbia River Trans-
mission System Act (16 U.S.C. 838(k)).
(3) The term ‘‘new capital investment’’ means
a capital investment for a project, facility, or sepa-
rable unit or feature of a project or facility, placed
in service after September 30, 1995.
(4) The term ‘‘old capital investment’’ means a
capital investment whose capitalized cost—
(A) was incurred, but not repaid, before
October 1, 1995; and
(B) was for a project, facility, or separable
unit or feature of a project or facility, placed in
service before October 1, 1995.
(5) The term ‘‘repayment date’’ means the end
of the period within which the Administrator’s rates
are to assure the repayment of the principal amount
of a capital investment.
(6) The term ‘‘Treasury rate’’ means—
288
(A) for an old capital investment, a rate
determined by the Secretary of the Treasury,
taking into consideration prevailing market
yields, during the month preceding October 1,
1995, on outstanding interest-bearing obliga-
tions of the United States with periods to matu-
rity comparable to the period between October
1, 1995, and the repayment date for the old
capital investment; and
(B) for a new capital investment, a rate
determined by the Secretary of the Treasury,
taking into consideration prevailing market
yields, during the month preceding the begin-
ning of the fiscal year in which the related
project, facility, or separable unit or feature is
placed in service, on outstanding interest-bear-
ing obligations of the United States with peri-
ods to maturity comparable to the period be-
tween the beginning of the fiscal year and the
repayment date for the new capital investment.
(b) NEW PRINCIPAL AMOUNTS.—(1) Effective Octo-
ber 1, 1995, an old capital investment shall have a new
principal amount that is the sum of—
(A) the present value of the old payment
amounts for the old capital investment, calculated
289
using a discount rate equal to the Treasury rate for
the old capital investment; and
(B) an amount equal to $100,000,000 multi-
plied by a fraction whose numerator is the principal
amount of the old payment amounts for the old cap-
ital investment and whose denominator is the sum of
the principal amounts of the old payment amounts
for all old capital investments.
(2) With the approval of the Secretary of the Treas-
ury based solely on consistency with this Act, the Adminis-
trator shall determine the new principal amounts under
paragraph (1) and the assignment of interest rates to the
new principal amounts under subsection (c).
(3) For the purposes of this section, ‘‘old payment
amounts’’ means, for an old capital investment, the annual
interest and principal that the Administrator would have
paid to the United States Treasury from October 1, 1995,
if this section were not enacted, assuming that—
(A) the principal were repaid—
(i) on the repayment date the Adminis-
trator assigned before October 1, 1993, to the
old capital investment, or
(ii) with respect to an old capital invest-
ment for which the Administrator has not as-
signed a repayment date before October 1,
290
1993, on a repayment date the Administrator
shall assign to the old capital investment in ac-
cordance with paragraph 10(d)(1) of the ver-
sion of Department of Energy Order RA
6120.2 in effect on October 1, 1993; and
(B) interest were paid—
(i) at the interest rate the Administrator
assigned before October 1, 1993, to the old cap-
ital investment, or
(ii) with respect to an old capital invest-
ment for which the Administrator has not as-
signed an interest rate before October 1, 1993,
at a rate determined by the Secretary of the
Treasury, taking into consideration prevailing
market yields, during the month preceding the
beginning of the fiscal year in which the related
project, facility, or separable unit or feature is
placed in service, on outstanding interest-bear-
ing obligations of the United States with peri-
ods to maturity comparable to the period be-
tween the beginning of the fiscal year and the
repayment date for the old capital investment.
(c) 
INTEREST
RATE
FOR
NEW
PRINCIPAL
AMOUNTS.—As of October 1, 1995, the unpaid balance
on the new principal amount established for an old capital
291
investment under subsection (b) shall bear interest annu-
ally at the Treasury rate for the old capital investment
until the earlier of the date that the new principal amount
is repaid or the repayment date for the new principal
amount.
(d) REPAYMENT DATES.—As of October 1, 1995, the
repayment date for the new principal amount established
for an old capital investment under subsection (b) shall
be no earlier than the repayment date for the old capital
investment assumed in subsection (b)(3)(A).
(e) PREPAYMENT LIMITATIONS.—During the period
October 1, 1995, through September 30, 2000, the total
new principal amounts of old capital investments, as es-
tablished under subsection (b), that the Administrator
may pay before their respective repayment dates shall not
exceed $100,000,000.
(f) INTEREST RATES FOR NEW CAPITAL INVEST-
MENTS
DURING
CONSTRUCTION.—(1) The principal
amount of a new capital investment includes interest in
each fiscal year of construction of the related project, facil-
ity, or separable unit or feature at a rate equal to the
one-year rate for the fiscal year on the sum of—
(A) construction expenditures that were made
from the date construction commenced through the
end of the fiscal year, and
292
(B) accrued interest during construction.
(2) The Administrator shall not be required to pay,
during construction of the project, facility, or separable
unit or feature, the interest calculated, accrued, and cap-
italized under paragraph (1).
(3) For the purposes of this subsection, ‘‘one-year
rate’’ for a fiscal year means a rate determined by the
Secretary of the Treasury, taking into consideration pre-
vailing market yields, during the month preceding the be-
ginning of the fiscal year, on outstanding interest-bearing
obligations of the United States with periods to maturity
of approximately one year.
(g) INTEREST RATES FOR NEW CAPITAL INVEST-
MENTS.—The unpaid balance on the principal amount of
a new capital investment bears interest at the Treasury
rate for the new capital investment from the date the re-
lated project, facility, or separable unit or feature is placed
in service until the earlier of the date the new capital in-
vestment is repaid or the repayment date for the new cap-
ital investment.
(h) CREDITS TO ADMINISTRATOR’S PAYMENTS TO
THE UNITED STATES TREASURY.—The Confederated
Tribe of the Colville Reservation Grand Coulee Dam Set-
tlement Act (Public Law 103–436) is amended by striking
section 6 and inserting the following:
293
‘‘SEC. 6. CREDITS TO ADMINISTRATOR’S PAYMENTS TO THE
UNITED STATES TREASURY.
‘‘(a) IN GENERAL.—So long as the Administrator
makes annual payments to the tribes under the settlement
agreement, the Administrator shall apply against amounts
otherwise payable by the Administrator to the United
States Treasury a credit that reduces the Administrator’s
payment in the amount and for each fiscal year as follows:
$15,250,000 in fiscal year 1996; $15,860,000 in fiscal
year 1997; $16,490,000 in fiscal year 1998; $17,150,000
in fiscal year 1999; $17,840,000 in fiscal year 2000; and
$4,100,000 in each succeeding fiscal year.
‘‘(b) DEFINITIONS.—For the purposes of this sec-
tion—
‘‘(1) The term ‘settlement agreement’ means
that settlement agreement between the United
States of America and the Confederated Tribes of
the Colville Reservation signed by the Tribes on
April 16, 1994, and by the United States of America
on April 21, 1994, which settlement agreement re-
solves claims of the Tribes in Docket 181–D of the
Indian Claims Commission, which docket has been
transferred to the United States Court of Federal
Claims; and
294
‘‘(2) The term ‘Tribes’ means the Confederated
Tribes of the Colville Reservation, a Federally recog-
nized Indian Tribe.’’.
(i) CONTRACT PROVISIONS.—In each contract of the
Administrator that provides for the Administrator to sell
electric power, transmission, or related services, and that
is in effect after September 30, 1995, the Administrator
shall offer to include, or as the case may be, shall offer
to amend to include, provisions specifying that after Sep-
tember 30, 1995—
(1) the Administrator shall establish rates and
charges on the basis that—
(A) the principal amount of an old capital
investment shall be no greater than the new
principal amount established under subsection
(b);
(B) the interest rate applicable to the un-
paid balance of the new principal amount of an
old capital investment shall be no greater than
the interest rate established under subsection
(c);
(C) any payment of principal of an old
capital investment shall reduce the outstanding
principal balance of the old capital investment
295
in the amount of the payment at the time the
payment is tendered; and
(D) any payment of interest on the unpaid
balance of the new principal amount of an old
capital investment shall be a credit against the
appropriate interest account in the amount of
the payment at the time the payment is ten-
dered;
(2) apart from charges necessary to repay the
new principal amount of an old capital investment as
established under subsection (b), and to pay the in-
terest on the principal amount under subsection (c),
no amount may be charged for return to the United
States Treasury as repayment for or return on an
old capital investment, whether by way of rate, rent,
lease payment, assessment, user charge, or any other
fee;
(3) amounts provided under section 1304 of
title 31, United States Code, shall be available to
pay, and shall be the sole source for payment of, a
judgment against or settlement by the Administrator
or the United States on a claim for a breach of the
contract provisions required by this Act; and
(4) the contract provisions specified in this Act
shall not—
296
(A) preclude the Administrator from recov-
ering, through rates or other means, any tax
that is generally imposed on electric utilities in
the United States, or
(B) affect the Administrator’s authority
under applicable law, including section 7(g) of
the Pacific Northwest Electric Power Planning
and Conservation Act (16 U.S.C. 839e(g)), to—
(i) allocate costs and benefits, includ-
ing but not limited to fish and wildlife
costs, to rates or resources, or
(ii) design rates.
(j) SAVINGS PROVISIONS.—(1) This section does not
affect the obligation of the Administrator to repay the
principal associated with each capital investment, and to
pay interest on the principal, only from the ‘‘Administra-
tor’s net proceeds,’’ as defined in section 13 of the Federal
Columbia River Transmission System Act (16 U.S.C.
838k(b)).
(2) Except as provided in subsection (e) of this sec-
tion, this section does not affect the authority of the Ad-
ministrator to pay all or a portion of the principal amount
associated with a capital investment before the repayment
date for the principal amount.
297
(k) DOE STUDY.—(1) The Administrator shall un-
dertake a study to determine the effect that increases in
the rates for electric power sales made by the Adminis-
trator may have on the customer base of the Bonneville
Power Administration. Such study shall identify other
sources of electric power that may be available to cus-
tomers of the Bonneville Power Administration and shall
estimate the level at which higher rates for power sales
by the Administration may result in the loss of customers
by the Administration.
(2) The Administrator shall undertake a study to de-
termine the total prior costs incurred by the Bonneville
Power Administration for compliance with the provisions
of the Endangered Species Act of 1973 and the total fu-
ture costs anticipated to be incurred by the Administration
for compliance with such provisions.
(3) The Administrator shall submit the results of the
studies undertaken under this section to the Congress
within 180 days after the date of the enactment of this
Act.
298
PART 2—RECLAMATION
SEC. 9211. 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 of the Interior shall
allow for prepayment of the repayment contract between
the United States and the Central Utah Water Conser-
vancy District dated December 28, 1965, and supple-
mented on November 26, 1985, providing for repayment
of the municipal and industrial water delivery facilities for
which repayment is provided pursuant to such contract,
under such terms and conditions as the Secretary deems
appropriate to protect the interest of the United States,
which shall be similar to the terms and conditions con-
tained in the supplemental contract that provided for the
prepayment of the Jordan Aqueduct dated October 28,
1993. The District shall exercise its right to prepayment
pursuant to this section by the end of fiscal year 2002.’’.
SEC. 9212. TREATMENT OF CITY OF FOLSOM AS A CENTRAL
VALLEY PROJECT CONTRACTOR.
For the purposes of being considered eligible to be
a transferee of Central Valley Project water to be used
for municipal and industrial purposes, the city of Folsom,
299
California, shall be treated as a Central Valley Project
contractor as of November 1, 1990.
SEC. 9213. SLY PARK.
(a) SHORT TITLE.—This section may be cited as the
‘‘Sly Park Unit Conveyance Act’’.
(b) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘El Dorado Irrigation District’’
or ‘‘District’’ means a political subdivision of the
State of California duly organized, existing, and act-
ing pursuant to the laws thereof with its principal
place of business in the city of Placerville, El Do-
rado County, California.
(2) The term ‘‘Secretary’’ means the Secretary
of the Interior.
(3) The term ‘‘Sly Park Unit’’ means the Sly
Park Dam and Reservoir, Camp Creek Diversion
Dam and Tunnel and conduits and canals as author-
ized under the American River Act of October 14,
1949 (63 Stat. 852), together with all other facilities
owned by the United States including those used to
convey and store water delivered from Sly Park, as
well as all recreation facilities associated thereto.
(c) SALE OF THE SLY PARK UNIT.—
(1) IN GENERAL.—The Secretary shall, within
one year after the date of enactment of this Act, sell
300
and convey to the El Dorado Irrigation District the
Sly Park Unit. Within such one-year period, the Sec-
retary shall also transfer and assign the water rights
relating to the Sly Park Unit held in trust by the
Secretary for diversion and storage under California
State permits numbered 2631, 5645A, 10473, and
10474 to the El Dorado Irrigation District.
(2) SALE PRICE.—The sale price shall not ex-
ceed—
(A) the construction costs ($30,926,230),
as included in the accounts of the Secretary,
plus
(B) interest on the construction costs allo-
cated to domestic use, at the authorized rate in-
cluded in enactment of the Act of October 14,
1949 (63 Stat. 852), up to an agreed upon
date, less
(C) all revenues to date as collected under
the terms of the contract between the United
States and the El Dorado Irrigation District,
estimated at $9,146,885.
(3) TERMS OF PAYMENT.—The Secretary shall
provide for a payment of the purchase price under
paragraph (2) on terms not to exceed 20 years. The
interest rate to be paid by the District shall be the
317
SEC. 9307. CAPITAL IMPROVEMENTS.
(a) PRIVATE SECTOR DEVELOPMENT.—It is the pol-
icy of the United States to encourage the private sector
to develop, own, and maintain to the extent possible such
public recreation facilities which would enhance public use
and enjoyment of Federal lands as are contained in ap-
proved plans developed by the Secretary concerned. Under
the terms of this part, concessioners may only construct
or finance construction under terms of section 9312 such
public facilities on Federal lands as are to be used by the
concessioner under the terms of their concession service
agreement or facilities which are necessary for the conces-
sioner to administer such public facilities on Federal
lands.
(b) INVESTMENT INTEREST.—
(1) IN GENERAL.—A concessioner, who is re-
quired or authorized under a concession service
agreement pursuant to this part to acquire or con-
struct any structure, improvement, or fixture pursu-
ant to such agreement on Federal lands shall have
an investment interest therein, to the extent pro-
vided by the agreement and this part. Such invest-
ment interest shall not be extinguished by the expi-
ration of such agreement. Such investment interest
may be assigned, transferred, encumbered or relin-
quished.
318
(2) LIMITATION.—Such investment interest
shall not be construed to include or imply any au-
thority, privilege, or right to operate or engage in
any business or other activity, and the use of any
improvement in which the concessioner has an in-
vestment interest shall be wholly subject to the ap-
plicable provisions of the concession service agree-
ment and of laws and regulations relating to the
area.
(3) FEDERAL PROPERTY.—The agreement shall
specify which new improvements required under
terms of the concession service agreement, if any,
shall become the property of the Federal Govern-
ment at the end of the agreement. No concession
service agreement shall provide for a concessioner to
obtain an investment interest in any building which
is wholly owned by the Federal Government. Title to
the land on which such structure, improvement, or
fixture is placed shall remain in the United States.
(c) SALE OF ASSETS.—If the existing concessioner is
not selected as the best qualified applicant at the time of
reissuance of a concession service agreement, the Sec-
retary concerned shall require the new concessioner to buy
the investment interest of the existing concessioner.
437
‘‘(2) The Secretary shall submit to the Congress a
progress report on the implementation of this section with-
in six months from date of enactment of this Act, and
a final report within 12 months from date of enactment
of this Act. These reports shall include—
‘‘(A) a description of the extent to which the
Secretary has implemented the requirements in
paragraph (1), including a list of specific initiatives
implemented;
‘‘(B) a list and description of additional initia-
tives identified by the Secretary to simplify and
streamline royalty management requirements and
practices; and
‘‘(C) cost savings of implemented initiatives in-
cluding impact on net-receipts sharing for States.
‘‘(3) If the Secretary and the State concerned deter-
mines that the cost of accounting and auditing for and
collecting of any obligation due for any oil and gas produc-
tion exceeds the amount of the obligation to be collected,
the Secretary shall waive such obligation.
‘‘(4) The Secretary and the State concerned shall not
perform accounting, reporting, or audit activities if the
Secretary and the State concerned determines that the
cost of conducting the activity exceeds the expected
amount to be collected by the activity.