I
107TH CONGRESS
1ST SESSION
H. R. 2952
To ensure the orderly development of coal, coalbed methane, natural gas,
and oil within a designated Dispute Resolution Area in the Powder
River Basin, Wyoming, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 25, 2001
Mrs. CUBIN introduced the following bill; which was referred to the Committee
on Resources
A BILL
To ensure the orderly development of coal, coalbed methane,
natural gas, and oil within a designated Dispute Resolu-
tion Area in the Powder River Basin, Wyoming, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Powder River Basin
Resource Development Act’’.
SEC. 2. DEFINITIONS.
In this Act:
(1) COALBED METHANE.—The term ‘‘coalbed
methane’’ has the meaning given that term in sec-
tion 1339(p)(2) of the Energy Policy Act of 1992
(42 U.S.C. 13368(p)(2)).
(2) COMMON AREA.—The term ‘‘common area’’
means an area in the Basin in which all or a portion
of a Federal coal lease (including any area of State
or private coal within a logical mining unit with the
Federal coal lease) overlaps all or a portion of an oil
and gas lease or right to develop.
(3) FEDERAL COAL LEASE; FEDERAL OIL AND
GAS LEASE.—The terms ‘‘Federal coal lease’’ and
‘‘Federal oil and gas lease’’ mean a lease in the
Basin issued pursuant to the Mineral Leasing Act
(30 U.S.C. 181 et seq.) or the Mineral Leasing Act
for Acquired Lands (30 U.S.C. 351 et seq.).
(4) FEDERAL COAL LESSEE.—The term ‘‘Fed-
eral coal lessee’’ means the holder of a Federal coal
lease.
(5) NON-FEDERAL
OIL
AND
GAS
LEASE
OR
RIGHT
TO
DEVELOP.—The term ‘‘non-Federal oil
and gas lease or right to develop’’ means a lease for
or right to develop oil and gas in the Basin provided
by a State or private owner of the resources.
(6) OIL AND GAS DEVELOPER.—The term ‘‘oil
and gas developer’’ means the holder of an oil and
gas lease or right to develop.
(7) OIL
AND
GAS
LEASE
OR
RIGHT
TO
DE-
VELOP.—The term ‘‘oil and gas lease or right to de-
velop’’ means a Federal oil and gas lease in the
Basin or non-Federal oil and gas lease or right to
develop in the Basin.
(8) OWNERS OF ANY INTEREST IN THE OIL
AND GAS LEASE OR RIGHT TO DEVELOP.—The term
‘‘owners of any interest in the oil and gas lease or
right to develop’’ means persons who own the work-
ing interest, lease interest, operating interest, min-
eral interest, royalty interest, or any other interest
in the oil and gas lease or right to develop, and any
other persons who might receive compensation for
unavoidable fixed expenses under an order con-
cerning the oil and gas lease or right to develop
issued pursuant to section 9(d).
(9) POWER
RIVER
BASIN; BASIN.—The term
‘‘Powder River Basin’’ or ‘‘Basin’’ means the area
in the State of Wyoming designated as the ‘‘Dispute
Resolution Area’’ on maps entitled ‘‘Powder River
Basin, Dispute Resolution Area’’, dated September
10, 2001, and on file in the Wyoming State Office
of the Bureau of Land Management.
(10) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of the Interior.
SEC. 3. PARTIES ENCOURAGED TO ENTER INTO WRITTEN
AGREEMENT.
In any common area, the Federal coal lessee and oil
and gas developer, subject to applicable Federal and State
laws, regulations, and lease terms, are encouraged to enter
into a written agreement that details operations and as-
signs or assesses costs or compensation for the concurrent
or sequential development of those resources.
SEC. 4. NEGOTIATIONS CONCERNING DEVELOPMENT PRI-
ORITY FOR CERTAIN OPERATIONS IN THE
BASIN.
(a) OBLIGATION TO PROVIDE WRITTEN NOTICE OF
CONFLICT.—Whenever a Federal coal lessee or an oil and
gas developer determines that its Federal coal lease (or
a logical mining unit including the Federal coal lease) or
its oil and gas lease or right to develop is located in a
common area, and, pursuant to a mining plan approved
by, or submitted for the approval of, the Secretary, mining
operations or facilities in support of mining for coal on
the Federal coal lease or the logical mining unit will be
located within the common area, the Federal coal lessee
or the oil and gas developer shall deliver written notice
of the determination to the other party and the Secretary
no later than 240 days before the date on which the min-
ing operations or construction of the mine support facili-
ties is projected by the approved or proposed mining plan
to commence in the common area.
(b) OBLIGATION TO NEGOTIATE.—Promptly after
providing the notice referred to in subsection (a), the party
that provided the notice shall seek to negotiate a written
agreement with the other party that resolves any conflict
between the development of gas or oil and development
of coal in the common area.
SEC. 5. PETITION FOR RELIEF.
(a) SUBMISSION OF PETITION.—
(1) IN GENERAL.—If notice is submitted timely
pursuant to section 4(a) and the Federal coal lessee
and the oil and gas developer seek to engage in ne-
gotiations, but fail to reach agreement, pursuant to
section 4(b), the Federal coal lessee or the oil and
gas developer may file a petition for relief in the
United States district court for the district of Wyo-
ming and serve the other party on any date which
is not less than 180 days before the date on which
the mining operations or construction of the mine
support facilities is projected by the approved or
proposed mining plan to commence in the common
area.
(2) INFORMATION
REQUIREMENTS.—The Sec-
retary, by regulation, shall establish the require-
ments for the information to be submitted with the
petition.
(b) JOINDER OF PARTIES.—All owners of any inter-
est in the oil and gas lease or right to develop and in the
Federal coal lease or logical mining unit, including the
Secretary, identified by the petitioner, the Secretary, or
themselves shall be joined in the proceedings established
pursuant to this Act. Failure to timely join a party shall
not extend deadlines imposed by this Act, but the court
shall take all necessary steps to insure that no party is
prejudiced by late joinder.
(c) PARTIES’ RESPONSE TO PETITION.—The non-
Federal respondent or respondents may provide to the
Secretary a response to the petition within 30 days after
the date of filing of the petition for relief pursuant to sub-
section (a)(1). The Secretary may require the petitioner
and the non-Federal respondent or respondents to submit
such documents or provide such testimony, or both, as the
Secretary deems appropriate within 60 days of such date
of filing.
SEC. 6. SECRETARY’S RESPONSE TO PETITION.
(a) IN GENERAL.—Within 90 days after the date of
filing of the petition for relief pursuant to section 5(a)(1),
the Secretary shall take the actions required by this sec-
tion.
(b) INITIAL DETERMINATIONS.—The Secretary shall
determine, with petitioner having the burden of proof—
(1) whether a common area exists; and
(2) whether the approved or proposed mining
plan provides for mining operations to occur, or
mine support facilities to be constructed, in any por-
tion of the common area.
(c) LEASE SUSPENSION.—If the Secretary makes af-
firmative determinations pursuant to paragraphs (1) and
(2) of subsection (b), the Secretary shall suspend all or
any portion of any Federal oil and gas lease, including
the application of such a lease to any geographical area
or zone or reservoir, to accommodate development of the
coal resource in the common area during the period begin-
ning on a date no later than the commencement date re-
ferred to in section 5(a)(1) and ending on the effective
date of an order issued pursuant to section 9(d).
(d) SECRETARIAL REPORT.—The Secretary shall—
(1) not delegate the making of determinations
pursuant to this section;
(2) report the determinations made pursuant to
this section and any suspension made pursuant to
subsection (c), including the administrative record
therefor, to the court in which the petition for relief
is filed pursuant to section 5(a)(1); and
(3) provide the petitioner and respondents with
copies of the report and record.
SEC. 7. COURT’S INITIAL RESPONSE TO PETITION.
(a) RECEIPT OF SECRETARIAL REPORT.—The court
in which the petition is filed pursuant to section 5(a)(1)
shall have exclusive jurisdiction to receive and review the
report of the Secretary required by section 6(d), and the
determinations made and any action taken by the Sec-
retary pursuant to section 6.
(b) PARTIES’ OBJECTIONS TO REPORT.—
(1) DEADLINE
FOR
FILING.—The petitioner
and respondents shall have 30 days after the date on
which the report of the Secretary is filed with the
court pursuant to section 6(d) in which to file with
the court any objection to any determination of the
Secretary required by section 6.
(2) DETERMINATION BY COURT.—If any objec-
tion is filed pursuant to paragraph (1), the court
shall, within 60 days after receipt of the report of
the Secretary pursuant to section 6(d), make the de-
termination that is the subject of the objection on
the basis of the administrative record filed with the
report and in accordance with the applicable require-
ments of section 6.
(3) APPROVAL
OF
SECRETARY’S
DETERMINA-
TION.—If no objection is filed pursuant to para-
graph (1), the determinations of the Secretary re-
quired by section 6 shall be final and approved by
the court in the order issued pursuant to subsection
(c) or subsection (d).
(c) COURT ORDER.—Within 90 days after the date
of receipt of the report of the Secretary pursuant to sec-
tion 6(d), the court, except as provided in subsection (d),
shall issue an order, to expire on the effective date of an
order issued pursuant to section 9(d), that—
(1) suspends all or any part of any non-Federal
oil and gas lease or right to develop, including the
application of such a lease or right to any geo-
graphical area or reservoir, in the common area in
accordance with the determination of the Secretary
pursuant to section 6 or in accordance with the de-
termination of the court pursuant to subsection
(b)(2) of this section; and
(2) if required by a determination of the court
pursuant to subsection (b)(2), terminates a Federal
oil and gas lease suspension imposed by the Sec-
retary pursuant to section 6, or imposes a suspen-
sion of a Federal oil and gas lease, or both, in ac-
cordance with the determination; and
(3) fixes the date upon which the Federal coal
lessee may commence mining operations or construc-
tion of mine support facilities in the common area,
which may be no later than the commencement date
referred to in section 5(a)(1).
(d) TERMINATION
OF PROCEEDING.—If the Sec-
retary makes a negative determination pursuant to section
6(b), or if the court makes a negative determination pur-
suant to an objection under subsection (b)(2) of this sec-
tion to affirmative determinations of the Secretary under
section (6)(b), the court shall issue an order terminating
the proceeding under this Act.
SEC. 8. EXPERTS’ APPOINTMENT AND REPORT; COURT RE-
VIEW AND HEARING.
(a) APPOINTMENT PROCEDURE.—Within 30 days
after the date of issuance of an order pursuant to section
7(c), to assist the court in making the determinations pur-
suant to section 9—
(1) the Federal coal lessee and the oil and gas
developer shall each appoint a person who is an ex-
pert in appraising the value of, and right to develop,
gas or oil; and
(2)(A) persons appointed under paragraph (1)
shall agree upon and appoint a third person with
such expertise; or
(B) if no agreement is reached on a third per-
son by the end of such period, the court shall ap-
point such person.
(b) COMPENSATION.—The Federal coal lessee and
the oil and gas developer shall each be responsible for pay-
ment of one-half of the compensation for and costs of the
experts in the performance of their duties under this Act.
(c) INFORMATION AND DATA.—
(1) REQUIREMENT.—The Federal coal lessee,
the oil and gas developer, and the Secretary—
(A) shall each submit to the experts, with-
in 30 days after the date of completion of their
appointment pursuant to subsection (a), all in-
formation and data in the possession of such
party that is pertinent to the determinations to
be made pursuant to section 9; and
(B) shall each submit to the experts there-
after any additional pertinent information and
data in the possession of such party that the
experts request, in writing, from such party.
(2) CONFIDENTIALITY.—Except as provided in
paragraph (3), the court shall ensure that any infor-
mation and data submitted to the experts pursuant
to paragraph (1) shall have the protection against
disclosure that is applicable to them by law and the
Federal rules of civil procedure and evidence.
(3) AVAILABILITY TO PARTIES.—All informa-
tion and data submitted to the experts pursuant to
paragraph (1) shall be available for review by all
parties unless otherwise ordered by the court.
(d) SUBMISSION OF BRIEFS AND HEARING.—
(1) BRIEFS.—Within 45 days after the date of
completion of appointment of the experts pursuant
to subsection (a), all parties may submit to the court
briefs concerning the determinations to be made
pursuant to section 9.
(2) TESTIMONY.—Within 60 days after the date
of completion of appointment of the experts pursu-
ant to subsection (a), the experts may, or if re-
quested by the petitioner or a respondent shall, re-
ceive testimony from all parties concerning the de-
terminations to be made pursuant to section 9.
(e) EXPERTS’ REPORT.—Within 120 days after the
date of completion of appointment of the experts pursuant
to subsection (a), the experts shall submit to the court
a written report providing in detail their recommendations
on the determinations to be made pursuant to section 9.
(f) REVIEW OF EXPERTS’ REPORT.—The court shall
make the determinations required by section 9 after re-
viewing the report of the experts submitted pursuant to
subsection (e) and after holding a hearing in which the
parties to the proceeding shall have the opportunity to ex-
amine the experts and provide to the court evidence or
arguments to support or contravene the recommendations
of the report.
SEC. 9. COURT’S FINAL RESPONSE TO PETITION: VALU-
ATION CONCERNING ECONOMICALLY RECOV-
ERABLE OIL OR GAS RESOURCES LOST OR
DELAYED, SUSPENSION OR TERMINATION,
AND PAYMENT ORDER.
(a) IN GENERAL.—Within 210 days after the date
of issuance of an order pursuant to section 7(c), the court
shall take the actions required by this section.
(b) SUSPENSION
OR
TERMINATION
DETERMINA-
TION.—
(1) DETERMINATION.—The court shall deter-
mine that, as a result of the order or any action of
the Secretary, all or any part of the oil and gas lease
or right to develop, or the application of such lease
payment for the next quarter to reflect the coal mined
from the common area that is actually sold or transferred.
(c) FINAL PAYMENT.—If the mining necessary to
make full payment of the sum of money awarded by the
court in accordance with subsection (a)(2) does not occur
within the 5-year period beginning on the date of issuance
of the court order pursuant to section 9(d), the unpaid
balance shall be paid within 60 days after the expiration
of such period.
SEC. 11. TERMINATION OF OIL AND GAS LEASE SUSPEN-
SION.
(a) NOTIFICATION OF COURT.—If the court issues an
order to suspend all or any part of the oil and gas lease
or right to develop pursuant to section 9(d)—
(1) the Federal coal lessee shall notify the court
and the oil and gas developer when the portion of
the common area subject to the order issued pursu-
ant to section 9(d) is no longer required for mining
operations or support facilities; and
(2) within 120 days after the date of receipt by
the court of the notification pursuant to paragraph
(1), or within 60 days prior to the date on which the
period established by the court in the order issued
pursuant to section 9(d) concludes, the oil and gas
developer may petition the court for an order that