A bill relating to certain leases involving the Secretary of the Interior and the Northern Cheyenne Indian Reservation.
PL 96-401 (S.2126), enacted 10/09/1980

PUBLIC LAW 96-401—OCT. 9, 1980 
94 STAT. 1701 
Public Law 96-
96th Congress 
401 
An Act 
Relating to certain leases involving the Secretary of the Interior and the Northern 
Cheyenne Indian Reservation. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. That the Congress 
finds that—-
(1) certain mineral leases and prospecting permits entered into 
between the Northern Cheyenne Tribal Council and private 
parties in 1969, 1970, and 1971, presently encumber approxi-
mately 56 per centum of the lands within the boundaries of the 
Northern Cheyenne Indian Reservation; 
(2) due to the likelihood of permanent and large-scale physical 
and social disruption of their tribal community that would result 
from development under such leases and permits, the Northern 
Cheyenne Indian Tribe has been and continues to be opposed to 
any development under these leases and permits; 
(3) although such leases and permits were approved by repre-
sentatives of the Secretary of the Interior, there are senous 
questions whether such approval is lawful and consistent with 
the trust responsibility of the Secretary of the Interior to "act in 
the best interests" of Indian tribes and individuals; 
(4) the present impasse with regard to such leases and permits, 
unless resolved, can only result in expensive and time-consuming 
litigation that does not hold out the likelihood of a satisfactory 
solution that would be fair to all parties; and 
(5) cancellation of such leases and permits, and providing a fair 
remedy to any party or parties whose property interest, invested 
in good faith, would be adverselv affected by such cancellation, 
appears to be the most direct and effective manner within which 
to resolve this impasse. 
SEC. 2. For the purpose of entering into a cancellation agreement 
under section 3 of this Act, the Secretary of the Interior (hereinafter 
referred to as the "Secretary") is authorized and directed to negotiate 
with the Northern Cheyenne Tribe and each party holding a lease, 
permit, or right to a lease issued under the provisions of the Act of 
May 11,1938 (52 Stat. 347; 25 U.S.C. 396a), as follows: 
Oct. 9, 1980 
[S. 2126] 
Northern 
Cheyenne 
Indian 
Reservation, 
leases. 
Cancellation 
agreement 
negotiations. 
94 STAT. 1702 
PUBLIC LAW 96-401—OCT. 9, 1980 
Name of companies 
Document numbers 
Leases 
Peabody Coal Company.... 
Permits 
Peabody Coal Company 
Bruce L. Ennis (now assigned to Chevron 
Oil). 
Bruce L. Ennis 
Norsworthy and Reger, Incorporated 
Consolidation Coal Company 
Meadowlark Farms, Incorporated (subsidi-
ary of AMAX, Incorporated). 
14-20-0257-897 
14-20-0257-899 
14-20-0257-900 
14-20-0257-901 
14-20-0257-902 
14-20-0257-903 
C-57-P-30 
C-57-P-31 
C-57-P-32 
C-57-P-42 
C-57-P-45 
C-57-P-4G 
C-57-P-47 
C-57-P-43 
C-57-P-40 
C-57-P-41 
C-57-P-44 
Document dates 
November 17,1970 
November 17, 1970 
November 17, 1970 
November 17, 1970 
November 17, 1970 
November 17, 1970 
August 18, 1969 
August 18, 1969 
August 18, 1969 
May 21. 1971 
June 14, 1971 
June 14, 1971 
June 14. 1971 
May 21, 1971 
May 21, 1971 
May 21, 1971 
May 21, 1971 
Federal coal 
leases. 
Bidding rights 
certificate. 
SEC. 3. (a) With respect to any lease, permit, or right to a lease 
referred to in section 2 of this Act, the Secretary is authorized to 
execute a cancellation agreement under which the Secretary, the 
Northern Cheyenne Tribe, and the party holding such lease, permit, 
or right to a lease agree in writing that such lease, permit, or right to 
a lease is canceled and under which such party shall be issued: 
(1) a noncompetitive lease or leases for such federally owned 
coal deposits which for the foreseeable future are unlikely to be 
separately mined efficiently or economically except by incorpora-
tion into an existing mining unit controlled by such party, and 
for the surface of public lands containing such deposits, as may 
be agreed upon by the Secretary and such party. Such lease or 
leases shall be issued at the fair market value provided for in 
subsection (c) of this section only after a determination by the 
Secretary that such deposits and lands are acceptable for further 
consideration for coal leasing: Provided, That such cancellation 
agreement shall also provide that if, after further consideration, 
the Secretary determines that all or any part of such deposits or 
lands are not acceptable for coal leasing, such party shall be 
issued a certificate of bidding rights that may be used to acquire 
Federal coal leases at competitive sales. Such bidding rights shall 
have a value equal to the amount of the actual cash investment, 
plus interest on such investment compounded at a rate not to 
exceed 7 per centum per annum, made by the party involved in 
connection with the lease, permit, or right to a lease to be 
canceled under such cancellation agreement, multiplied by the 
percentage of the otherwise recoverable tonnage of any coal 
deposits for which the party does not, by reason of such determi-
nation by the Secretary, receive a lease under this subsection; or, 
(2) a certificate of bidding rights that may be used to acquire 
Federal coal leases at competitive sales. Such bidding rights shall 
have a value equal to the amount of the actual cash investment, 
plus interest on such investment compounded at a rate not to 
exceed 7 per centum per annum, made by the party involved in 
connection with the lease, permit, or right to a lease to be 
canceled under such cancellation agreement. 
PUBLIC LAW 96-401—OCT. 9, 1980 
94 STAT. 1703 
(b) A determination by the Secretary under subsection (a)(1) of this 
section shall be final. 
(c) Any noncompetitive lease issued under subsection (a)(1) of this 
section shall be valued at a sum equal to fair market value, as 
determined by the Secretary. Any bonus due may be reduced by an 
amount equal to so much of the investment and interest on such 
investment, compounded at a rate not to exceed 7 per centum per 
annum, made by the party involved in connection with the lease, 
permit, or right to a lease, to be canceled under this section as the 
Secretary may consider appropriate. 
(d) Any lease issued under subsection (a)(1) of this section shall, 
except as provided in this Act, be issued under, and be subject to the 
provisions of the Mineral Leasing Act of 1920, as amended (30 U.S.C. 
181 et seq.), and the Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1201 etseq.). 
SEC. 4. (a) With respect to any lease referred to in section 2 of this 
Act, any cancellation agreement entered into pursuant to section 3 of 
this Act shall be valid only if executed in writing, before November 1, 
1980, by the Secretary, the Northern Cheyenne Tribe, and the party 
holding the lease. If such cancellation agreement is not so executed, 
such lease shall be canceled on November 1,1980. 
(b) With respect to any permit or right to a lease referred to in 
section 2 of this Act, any cancellation agreement entered into 
pursuant to section 3 of this Act shall be valid only if executed in 
writing, on or before January 1,1982, by the Secretary, the Northern 
Cheyenne Tribe, and the party holding the permit or right to a lease. 
If such cancellation agreement is not so executed, such permit or 
right to a lease shall be canceled upon the expiration of a period 
ending ninety days after any date on which the Secretary, the 
Northern Cheyenne Tribe, and such party agree in writing that 
negotiations under section 2 of this Act are at an impasse, or on 
January 1,1982, whichever occurs first. 
(c) If any lease, permit, or right to a lease is canceled under 
subsection (a) or (b) of this section, the United States Court of Claims 
shall have jurisdiction to render judgment on any claim against the 
United States arising out of such cancellation. 
SEC. 5. (a) Execution of any cancellation agreement under section 3 
of this Act shall extinguish any claim or liability that may otherwise 
arise in connection with the lease, permit, or right to a lease canceled 
under such agreement. 
Final 
determination. 
Fair market 
value. 
Bonus. 
Deadlines. 
U.S. Court of 
Claims, 
jurisdiction. 
Extinguished 
claim or 
liability. 
94 STAT. 1704 
PUBLIC LAW 96-401—OCT. 9, 1980 
Suitv'^ 
^^ W
^
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^ respect to any lease, permit, or right to a lease canceled 
^ 
under section 4 of this Act, nothing in this Act shall establish or 
extinguish any claim or liability that may arise in connection with 
such lease, permit, or right to a lease so canceled. 
Report to 
SEC. 6. Not later than March 1,1982, the Secretary shall report to 
Congress 
^ g Cougross ou the implementation of this Act. 
Approved October 9, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-1370 (Comm. on Interior and Insular Affairs). 
SENATE REPORT No. 96-883 (Comm. on Indian Affairs). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
Aug. 18, considered and passed Senate. 
Sept. 29, considered and passed House.