A bill to protect the sanctity of contracts and leases entered into by surface patent holders with respect to coalbed methane gas.
PL 105-367 (S.2500), enacted 11/10/1998

PUBLIC LAW 105-367—NOV. 10, 1998 
112 STAT. 3313 
Public Law 105-367 
105th Congress 
An Act 
To protect the sanctity of contracts and leases entered into by surface patent 
Nov. 10, 1998 
holders with respect to coalbed methane gas. 
[S. 25001 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. PROTECTION OF SANCTITY OF CONTRACTS AND LEASES 
30 USC 81 note. 
OF SURFACE PATENT HOLDERS WITH RESPECT TO COAL-
BED METHANE GAS. 
(a) IN GENERAL.—Subject to subsection (b), the United States 
shall recognize as not infringing upon any ownership rights of 
the United States to coalbed methane any— 
(1) contract or lease covering any land that was conveyed 
by the United States under the Act entitled "An Act for the 
protection of surface rights of entrjonen", approved March 3, 
1909 (30 U.S.C. 81), or the Act entitled "An Act to provide 
for agricultural entries on coal lands", approved June 22, 1910 
(30 U.S.C. 83 et seq.), that was— 
(A) entered into by a person who has title to said 
land derived under said Acts, and 
(B) that conveys rights to explore for, extract, and 
sell coalbed methane from said land; or 
(2) coalbed methane production from the lands described 
in subsection (a)(1) by a person who has title to said land 
and who, on or before the date of enactment of this Act, has 
filed an application with the State oil and gas regulating agency 
for a permit to drill an oil and gas well to a completion target 
located in a coal formation. 
(b) APPLICATION.—Subsection (a)— 
(1) shall apply only to a valid contract or lease described 
in subsection (a) that is in effect on the date of enactment 
of this Act; 
(2) shall not otherwise change the terms or conditions 
of, or affect the rights or obligations of any person under 
such a contract or lease; 
(3) shall apply only to land with respect to which the 
United States is the owner of coal reserved to the United 
States in a patent issued under the Act of March 3, 1909 
(30 U.S.C. 81), or the Act of June 22, 1910 (30 U.S.C. 83 
et seq.), the position of the United States as the owner of 
the coal not having passed to a third party by deed, patent 
or other conveyance by the United States; 
(4) shall not apply to any interest in coal or land conveyed, 
restored, or transferred by the United States to a federally 
recognized Indian tribe, including any conveyance, restoration, 
112 STAT. 3314 
PUBLIC LAW 105-367—NOV. 10, 1998 
or transfer made pursuant to the Indian Reorganization Act, 
June 18, 1934 (c. 576, 48 Stat. 984, as amended); the Act 
of June 28, 1938 (c. 776, 52 Stat. 1209 as implemented by 
the order of September 14, 1938, 3 Fed. Reg. 1425); and includ-
ing the area described in section 3 of Public Law 98-290; 
or any executive order; 
(5) shall not be construed to constitute a waiver of any 
rights of the United States with respect to coalbed methane 
production that is not subject to subsection (a); and 
(6) shall not limit the right of any person who entered 
into a contract or lease before the date of enactment of this 
Act, or enters into a contract or lease on or after the date 
of enactment of this Act, for coal owned by the United States, 
to mine and remove the coal and to release coalbed methane 
without liability to any person referred to in subsection (a)(1)(A) 
or (a)(2). 
Approved November 10, 1998. 
LEGISLATIVE HISTORY—S. 2500: 
SENATE REPORTS: No. 105-408 (Comm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD, Vol. 144 (1998): 
Oct. 9, considered and passed Senate. 
Oct. 15, considered and passed House.