[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2500 Enrolled Bill (ENR)]

        S.2500

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
                                  eight


                                 An Act


 
To protect the sanctity of contracts and leases entered into by surface 
           patent holders with respect to coalbed methane gas.

    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 OF SURFACE 
PATENT HOLDERS WITH RESPECT TO COALBED 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 entrymen'', 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, 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 including 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).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.