[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1530 Introduced in Senate (IS)]

  2d Session
                                S. 1530

    To create a Government corporation to own and operate the Naval 
    Petroleum Reserves, and Naval Oil Shale Reserves, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 26, 1996

  Mr. Bumpers introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
    To create a Government corporation to own and operate the Naval 
    Petroleum Reserves, and Naval Oil Shale Reserves, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be referred to as the ``Naval Petroleum Reserves and 
Naval Oil Shale Reserves Corporatization Act of 1996''.

   TITLE I--ESTABLISHMENT OF THE NAVAL PETROLEUM RESERVES CORPORATION

SEC. 101. ESTABLISHMENT OF THE CORPORATION.

    (a) There is established a body corporate to be known as the 
``Naval Petroleum Reserves and Naval Oil Shale Reserves Corporation'' 
(referred to in this Act as ``the Corporation'').
    (b) The Corporation is a for-profit, wholly owned Government 
Corporation subject to chapter 91 of title 31, United States Code (the 
Government Corporation Control Act). The Corporation is an agency of 
the United States, subject to annual apportionment under section 1512 
of title 31, United States Code.
    (c) Jurisdiction and Control.--The Corporation has exclusive 
jurisdiction and control over all of the Naval Petroleum Reserves and 
Naval Oil Shale Reserves.

SEC. 102. CORPORATE OFFICES.

    The Corporation shall maintain an office for the service of process 
and papers in the District of Columbia, and is considered, for purposes 
of venue in civil actions, to be a resident of the District of 
Columbia. The Corporation may establish offices in any other place it 
determines necessary or appropriate in the conduct of its business.

SEC. 103. GENERAL POWERS AND FUNCTIONS OF THE CORPORATION.

    The Corporation--
            (1) may adopt, alter, and use a corporate seal, which shall 
        be judicially noticed;
            (2) may settle and adjust claims, sue and be sued in its 
        corporate name, and be represented by its own attorneys in all 
        administrative and, with prior approval of the Attorney 
        General, judicial proceedings, including appeals from decisions 
        of Federal courts;
            (3) shall adopt and may amend and repeal bylaws, and may 
        adopt, amend and repeal corporate orders and directives, 
        governing the manner in which its business may be conducted and 
        the powers granted to it by law may be exercised and enjoyed;
            (4) may acquire, purchase, lease, and hold the real and 
        personal property it considers necessary to conduct its 
        business;
            (5) may sell, lease, grant, and dispose of property as it 
        considers necessary to conduct its business;
            (6) with the consent of the agency concerned, may utilize 
        or employ the services, records, facilities, or personnel, of 
        any Federal, State, or local government agency;
            (7) may enter into contracts and incur liabilities;
            (8) may retain or use up to $250 million annually of its 
        revenues, without further appropriation, for reasonable capital 
        and operating expenses of the Corporation;
            (9) shall have the priority of the United States with 
        respect to the payment of debts out of bankrupt, insolvent, and 
        decedents' estates;
            (10) may request from the Administrator of General Services 
the services the Administrator is authorized to provide agencies of the 
United States, and the Administrator shall furnish the requested 
services to the Corporation on the same basis those services are 
provided agencies of the United States;
            (11) may accept gifts or donations of services or of real, 
        personal, mixed, tangible, or intangible property to conduct 
        its business; the Corporation shall establish written rules 
        setting forth the criteria to be used in determining whether 
        the acceptance of gifts or donations of real, personal, mixed, 
        tangible, or intangible property to conduct its business under 
        this subsection would reflect unfavorably upon the ability of 
        the Corporation or any employee to carry out its 
        responsibilities or official duties in a fair and objective 
        manner, or would compromise the integrity or appearance of 
        integrity of its programs or any official involved in those 
        programs;
            (12) may execute all instruments necessary or appropriate 
        in the exercise of its powers;
            (13) may acquire liability insurance or act as self-
        insurer;
            (14) shall pay any settlement or judgment entered against 
        it from the Corporation's own funds and not from the judgment 
        fund established under section 1304 of title 31, United States 
        Code; section 1346(b) and chapter 171 of title 28, United 
        States Code, do not apply to claims against the Corporation; 
        and
            (15) may request the Secretary of the Treasury to invest 
        monies of the Corporation in public debt securities having 
        maturities suitable to the needs of the Corporation, and 
        bearing interest at rates determined by the Secretary of the 
        Treasury, taking into consideration current market yields on 
        outstanding obligations of the United States of comparable 
        maturity.

SEC. 104. SPECIFIC POWERS AND FUNCTIONS OF THE CORPORATION.

    The Corporation--
            (1) shall explore, prospect, develop, use, produce, and 
        operate the Reserves to maximize the economic value of these 
        properties to the Nation;
            (2) may enter into joint, unit, or other cooperative plans, 
        leases, or other agreements and transactions as may be 
        necessary in the conduct of its business;
            (3) subject to section 109(c) shall administer and may 
        amend existing contracts, including the Unit Plan Contract, and 
        other agreements transferred to the Corporation under section 
        109(a) of this subtitle;
            (4) may construct, acquire, or contract for the use of 
        storage and shipping facilities, and pipelines and associated 
        facilities, on and off the Reserves, for transporting petroleum 
        from the Reserves to the points where the production from the 
        Reserves will be refined and shipped;
            (5) may store, for appropriate reimbursement reasonably 
        reflecting fair market value, petroleum owned or managed by 
        other Federal agencies and instrumentalities and may store 
        petroleum owned or managed by non-Federal entities at rates 
        consistent with subsection (j) of this section;
            (6) may acquire privately owned lands and leases inside the 
        Reserves, or outside those Reserves on the same geologic 
        structure, by exchange or contract, and in order to protect the 
        Reserves from drainage, and if unable to arrange an exchange or 
        contract, by purchase or condemnation;
            (7) may acquire any pipeline in the vicinity of the Reserve 
        not otherwise operated as a common carrier by condemnation, if 
        necessary, if the owner refuses to accept, convey, and 
        transport without discrimination and at reasonable rates any 
        petroleum produced at the Reserve;
            (8) may acquire a right-of-way for new pipelines and 
        associated facilities by eminent domain under the Act of 
        February 26, 1931 (40 U.S.C. 258a-258e), and the prospective 
        holder of the right-of-way is ``the authority empowered by law 
        to acquire the lands'' within the meaning of that Act; new 
        pipelines shall accept, convey, and transport any petroleum 
        produced at the Reserves at reasonable rates;
            (9) may use, store, or sell its share of the petroleum 
        produced from the Reserves and lands covered by joint, unit, or 
        other cooperative plans;
            (10) shall establish prices for products, materials, 
and services on a basis that will allow it to maximize the financial 
return to the Government;
            (11) shall give priority to assisting in national security 
        matters when requested by the Secretary of Defense; and
            (12) shall transfer annually to the Treasury all revenues 
        in excess of that needed for reasonable capital and operating 
        expenses of the Corporation, but in no event may the revenues 
        retained or used for those purposes in any fiscal year exceed 
        $250 million.

SEC. 105. CHIEF EXECUTIVE OFFICER.

    The powers and functions of the Corporation are vested in a Chief 
Executive Officer to be appointed by the Secretary. The Chief Executive 
Officer serves at the pleasure and under the supervision of, and may be 
removed at the discretion of, the Secretary. The Secretary shall set 
the compensation of the Chief Executive Officer, not to exceed 
Executive Level III.

SEC. 106. EMPLOYEES.

    (a) Appointments.--
            (1) The Chief Executive Officer may appoint officers and 
        employees of the Corporation without regard to the provisions 
        in title 5, United States Code, governing appointments in the 
        competitive service, and may fix compensation without regard to 
        chapter 51 and subchapter III of chapter 53 of title 5, United 
        States Code, governing general schedule classifications and 
        pay. In appointing officers of the Corporation and setting 
        their compensation, which may not exceed Executive Level IV, 
        the Chief Executive Officer shall consult with the Secretary. 
        Any officer or employee of the Corporation may be removed at 
        the discretion of the Chief Executive Officer except as 
        specified in subsection (b) of this section.
            (2) Section 3132(a)(1) of title 5, United States Code, is 
        amended by adding at the end the following:
                    ``(E) the United States Naval Petroleum Reserves 
                and Naval Oil Shale Reserves Corporation;''.
    (b) Transfer of Functions.--An officer or employee of the 
Department who the Secretary determines is performing functions vested 
in the Corporation by this subtitle is transferred to the Corporation 
under section 3503 of title 5, United States Code. Such an officer or 
employee retains the compensation in effect immediately prior to the 
transfer to the Corporation until changed by the Chief Executive 
Officer, and may not be separated involuntarily by reason of the 
transfer (but may be separated for cause) for a period of one year from 
the date of the transfer to the Corporation.
    (c) Payments for Employee Benefits.--
            (1) The Corporation shall make those payments to the 
        Employees' Compensation Fund which are required by section 3147 
        of title 5, United States Code.
            (2) The Corporation shall pay to the Civil Service 
        Retirement and Disability Fund--
                    (A) those employee deductions and agency 
                contributions which are required by sections 3334, 
                3422, and 3423 of title 5, United States Code.
                    (B) those additional agency contributions which are 
                determined necessary by the Office of Personnel 
                Management to pay, in combination with sums under 
                paragraph (2)(A) of this subsection, the normal cost 
                (determined using dynamic assumptions) of retirement 
                benefits for the employees of the Corporation who are 
                subject to subchapter III of chapter 83 of title 5, 
                United States Code; and
                    (C) those additional amounts, not to exceed two 
                percent of the amounts under paragraphs (2)(A) and 
                (2)(B) of this subsection, which are determined 
                necessary by the Office of Personnel Management to pay 
                the costs of administering retirement benefits for the 
                Corporation's employees and retirees and their 
                survivors (which months shall be available to the 
                Office as provided in section 3343(a)(1)(B) of title 5, 
                United States Code).
            (3) The Corporation shall pay to the Employees' Life 
        Insurance Fund--
                    (A) those employee deductions and agency 
                contributions which are required by sections 8707 and 
                8708(a) of title 5, United States Code; and
                    (B) those amounts which are determined necessary by 
                the Office of Personnel Management under paragraph (5) 
of this subsection to reimburse the Office for contributions under 
sections 8708(d) of title 5, United States Code.
            (4) The Corporation shall pay to the Employees Health 
        Benefits fund--
                    (A) those employee payments and agency 
                contributions which are required by section 8906 (a)-
                (f) of title 5, United States Code; and
                    (B) those amounts which are determined necessary by 
                the Office of Personnel Management under paragraph (5) 
                of this subsection to reimburse the Office for 
                contributions under section 8708(d) of title 5, United 
                States Code.
            (5) The Corporation shall pay to the Employees Health 
        Benefits fund--
                    (A) those employee payments and agency 
                contributions which are required by section 8906 (a)-
                (f) of title 5, United States Code; and
                    (B) those amounts which are determined necessary by 
                the Office of Personnel Management under paragraph (5) 
                of this subsection to reimburse the Office for 
                contributions under section 8906(g)(1) of title 5, 
                United States Code.
            (6) The amounts required under paragraphs (3)(B) and (4)(B) 
        of this subsection are the Government contributions for retired 
        employees who retire from the Corporation after the date of 
        transfer, the survivors of those retired employees, and 
        survivors of the employees of the Corporation who die after the 
        date of the transfer, prorated to reflect the portion of the 
        total civilian service of such employee and retired employees 
        that was performed for the Corporation after the date of 
        transfer.
            (7) The Corporation shall pay to the Thrift Savings Fund 
        those employee and agency contributions that are required by 
        section 8432 of title 5, United States Code.
    (d) Separation Incentive Payments.--The Corporation shall pay any 
voluntary separation incentive payment authorized, but not yet paid, by 
the Department prior to the transfer of functions under subsection (b) 
of this section.

SEC. 107. EXEMPTION FROM TAXATION.

    The Corporation, including the Reserves and all other corporate 
property, all corporate activities, and all corporate income are exempt 
from taxation in any manner or form by any State or local government 
entity.

SEC. 108. APPLICABILITY OF OTHER LAWS.

    (a) Federal Laws Governing Acquisition and Disposal.--The 
Corporation shall not be considered to be a department, agency, 
establishment, or instrumentality of the United States for purposes of 
Federal laws, regulations, or other requirements concerning acquisition 
of services and supplies, and the acquisition, use, and disposal of 
real and personal property, including the Federal Property and 
Administrative Services Act (40 U.S.C. 471, et seq.), except that the 
Corporation shall be considered to be a department, agency, 
establishment, or instrumentality of the United States for the purposes 
of the Davis-Bacon Act (40 U.S.C. 276a-276-277), the McNamara-O'Hara 
Service Contract Act (41 U.S.C. 351, et seq.), the Contract Work Hours 
and Safety Standards Act (40 U.S.C. 327, et seq.), and civil rights 
laws and regulations applicable to Federal contractors and 
subcontractors.
    (b) Exemption From Administrative Procedural Provisions.--Chapter 5 
of title 5, United States Code, does not apply to the Corporation.

SEC. 109. TRANSFERS TO THE CORPORATION.

    (a) Transfer of Assets.--Subject to subsection (c) of this section, 
the Secretary shall transfer to the Corporation the contracts, records, 
unexpended balance of appropriations and other monies available to the 
Department (including funds set aside for accounts payable and all 
advance payments), accounts receivable, and all other assets that are 
related to the powers and functions vested in the Corporation by this 
subtitle.
    (b) Transfer of Liabilities and Judgments.--
            (1) All liabilities attributable to the operation of the 
        Reserves by the Department are transferred to the Corporation.
            (2) Any judgment entered against the Department imposing 
        liability arising out of the operation of the Reserves by the 
        Department is considered a judgment against and is payable 
        solely by the Corporation.
    (c) Unit Plan Contract Dispute Resolution.--The Secretary shall 
retain, and shall not transfer, dispute resolution authority under 
section 9 of the Unit Plan Contract.
    (d) Payment of Interest to the Treasury.--From time to time, and at 
least at the close of each fiscal year, the Corporation shall pay into 
the Treasury as miscellaneous receipts interest on any Federal 
financial capital utilized by the Corporation, as determined by the 
Director of the Office of Management and Budget. The rate of such 
interest shall be determined by the Secretary of the Treasury, taking 
into consideration prevailing market yields, during the month preceding 
each fiscal year, on outstanding obligations of the United States with 
remaining periods to maturity of approximately one year.

               TITLE II--PRIVATIZATION OF THE CORPORATION

SEC. 201. STRATEGIC PLAN FOR PRIVATIZATION.

    (a) Within 5 years after the establishment of the Corporation, the 
Corporation shall prepare a strategic plan for transferring ownership 
of the Corporation to private investors. The Corporation shall revise 
the plan as needed.
    (b) The plan shall include consideration of alternative means for 
transferring ownership of the Corporation to private investors, 
including public stock offering, private placement, or merger or 
acquisition. The plan may call for the phased transfer of ownership or 
for complete transfer at a single point of time. If the plan calls for 
phased transfer of ownership, then--
            (1) privatization shall be deemed to occur when 100 percent 
        of ownership has been transferred to private investors;
            (2) prior to privatization, such stock shall be nonvoting 
        stock; and
            (3) at the time of privatization, such stock shall convert 
        to voting stock.
    (c) The plan shall evaluate the relative merits of the alternatives 
considered and the estimated return to the Government's investment in 
the Corporation achievable through each alternative. The plan shall 
include the Corporation's recommendations on its preferred means of 
privatization.
    (d) The Corporation shall transmit copies of the strategic plan for 
privatization to the President and Congress upon completion.

SEC. 202. PRIVATIZATION.

    (a) Subsequent to transmitting a plan for privatization pursuant to 
section 101, and subject to subsections (b) and (c), the Corporation 
may implement the privatization plan if the Corporation determines, in 
consultation with appropriate agencies of the United States, that 
privatization will result in a return to the United States at least 
equal to the net present value of the Corporation.
    (b) The Corporation may not implement the privatization plan 
without the approval of the President.
    (c) The Corporation shall notify the Congress of its intent to 
implement the privatization plan. Within 30 days of notification, the 
Comptroller General shall submit a report to Congress evaluating the 
extent to which--
            (1) the privatization plan would result in any ongoing 
        obligation or undue cost to the Federal Government; and
            (2) the revenues gained by the Federal Government under the 
        privatization plan would represent at least the net present 
        value of the Corporation.
    (d) The Corporation may not implement the privatization plan less 
than 60 days after notification of the Congress.
    (e) Proceeds from the sale of capital stock of the Corporation 
under this section shall be deposited in the general fund of the 
Treasury.
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S 1530 IS----2