[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2500 Referred in House (RFH)]
2d Session
S. 2500
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IN THE HOUSE OF REPRESENTATIVES
October 10, 1998
Referred to the Committee on Resources
_______________________________________________________________________
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).
Passed the Senate October 9 (legislative day, October 2),
1998.
Attest:
GARY SISCO,
Secretary.