[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4297 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4297

    To amend the Mineral Leasing Act of 1920 to ensure the orderly 
 development of coal, coalbed methane, natural gas, and oil in common 
  areas of the Powder River Basin, Wyoming and Montana, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2000

  Mrs. Cubin introduced the following bill; which was referred to the 
                         Committee on Resources

_______________________________________________________________________

                                 A BILL


 
    To amend the Mineral Leasing Act of 1920 to ensure the orderly 
 development of coal, coalbed methane, natural gas, and oil in common 
  areas of the Powder River Basin, Wyoming and Montana, 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 cited as the ``Powder River Basin Resource 
Development Act of 2000''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) The Powder River Basin in Wyoming and Montana is one of 
        the world's richest energy resource regions, possessing the 
        largest reserves of coal in the United States and significant 
        deposits of oil and natural gas, including coalbed methane.
            (2) The coal is predominantly federally owned--either as 
        part of the public lands or reserved from public lands that 
        were sold under homestead laws enacted in 1909, 1910, and 
        1916--and is leased to coal producers by the Bureau of Land 
        Management, under the Mineral Leasing Act.
            (3) The gas and oil are owned by the Federal Government, 
        the States, and private parties.
            (4) The federally owned gas and oil, like the coal, are 
        part of the public lands and leased to oil and gas lessees by 
        the Bureau of Land Management under the Mineral Leasing Act.
            (5) The privately owned gas and oil were conveyed with the 
        public lands purchased under the 3 homestead laws and may have 
        been sold or leased to oil and gas producers by the successors 
        to those original purchasers.
            (6) Development of these valuable energy resources is of 
        critical importance to the American public.
            (7) These energy resources provide fuel to heat and light 
        our homes and power our industries.
            (8) Extraction of these energy resources provides 
        royalties, taxes, and wages that contribute to national, State, 
        and local treasuries and economies.
            (9) Development of both the coal and the gas and oil is 
        occurring in the Powder River Basin.
            (10) In many locations both the coal and the gas and oil 
        have been leased or sold to different parties. These resources 
        are frequently extracted sequentially, but for safety and 
        operational reasons typically cannot be extracted 
        simultaneously, in the same location. Where concurrent 
        development is impossible and even where it may be possible, 
        disputes have arisen among the different parties concerning 
        plans for, and the course of, development of these resources.
            (11) The development of any one of these resources can 
        result in loss of another, either by making recovery impossible 
        in the case of coalbed methane or uneconomic in the case of 
        deep natural gas, oil, or coal.
            (12) The nature, extent, and value of any loss or delay in 
        development of the gas, oil, or coal resource due to 
        development of another of these resources in the common areas 
        within the Powder River Basin in which disputes between the 
        resources' developers arise should be ascertained and fair 
        market value for the loss or delay provided either by agreement 
        between the developers or by an expeditious adjudication 
        procedure.
            (13) The Federal law under which most of the coal and much 
        of the gas and oil in the Powder River Basin are made available 
        for development should be amended to provide a procedure that 
        will assure the orderly development of the energy resources, 
        and fair treatment to the resources' developers, in the common 
        areas within the Powder River Basin in which disputes between 
        the developers arise.
    (b) Purposes.--The purposes of this Act are to--
            (1) amend the Mineral Leasing Act to provide a procedure to 
        resolve disputes between developers of coal and developers of 
        natural gas and oil in the common areas within the Powder River 
        Basin to which this Act applies regarding the sequence of 
        development of those resources in the same location;
            (2) encourage maximum recovery of the resources prior to 
        the time at which such disputes are likely to occur or 
        thereafter until the procedure provided by this Act is 
        implemented;
            (3) ensure that the procedure provided by this Act is 
        employed only as a last resort if the disputes are not fully 
        resolved by voluntary agreements between the resources' 
        developers or administrative policies and actions;
            (4) determine fair and just compensation owed for the 
        postponement, or loss, of the opportunity to develop a resource 
        resulting from implementation of the procedure provided by this 
        Act; and
            (5) provide expressly that the procedure provided by this 
        Act will neither apply to nor set any precedent for resolution 
        of disputes between or among resource developers outside of the 
        common areas within the Powder River Basin to which this Act 
        applies.

SEC. 3. AMENDMENT TO THE MINERAL LEASING ACT.

    The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by 
redesignating section 44 as section 45 and inserting after section 43 
the following new section:

``SEC. 44. DEVELOPMENT OF COAL, NATURAL GAS, AND OIL IN THE POWDER 
              RIVER BASIN.

    ``(a) Definitions.--As used in this section:
            ``(1) The term `Powder River Basin' or `Basin' means the 
        area designated as `Powder River Basin' on a map entitled `MLA 
        Section 44 Powder River Basin Area', dated July 1, 1999, and on 
        file in the Wyoming and Montana State Offices of the Bureau of 
        Land Management.
            ``(2) The term `Subsection (h) Lands' means the area 
        designated as `Subsection (h) Lands' on the map described in 
        paragraph (1).
            ``(3) The term `Federal coal lease' means a lease of 
        Federal coal in the Basin issued pursuant to this Act.
            ``(4) The term `Federal coal lessee' means the holder of a 
        Federal coal lease.
            ``(5) The term `oil and gas developer' means the holder of 
        a lease under this Act for oil or gas in the Basin or a lease 
        for or right to develop oil and gas in the Basin provided by 
        any State or private owner.
            ``(6) The term `oil and gas property' means an area of the 
        Basin which is subject to the lease for or right to develop oil 
        and gas held by an oil or gas developer as described in 
        paragraph (5).
            ``(7) The term `common area' means an area in the Basin in 
        which all or a portion of a Federal coal lease and any area of 
        State or private coal within a logical mining unit with the 
        Federal coal lease overlaps all or a portion of an oil and gas 
        property.
            ``(8) The term `approved or proposed mining plan' means a 
        mining plan that is approved by, or has been submitted for the 
        approval of, the Bureau of Land Management.
            ``(9) The term `coalbed methane' shall have the meaning 
        given that term in section 1339(p)(2) of the Energy Policy Act 
        of 1992 (106 Stat. 2992; 42 U.S.C. 13368(p)(2)).
            ``(10) The term `owner of any interest in the oil and gas 
        property' means the owner of any interest in the oil and gas 
        property, including working interest, lease interest, operating 
        interest, mineral interest, and royalty interest, and any other 
        person who might receive compensation for unavoidable fixed 
        expenses under an order concerning the oil and gas property 
        issued pursuant to paragraph (10)(E) of subsection (f).
            ``(11) The term `owners of any non-Federal interest in the 
        oil and gas property' means all owners of any interest in the 
        oil and gas property except the Federal Government or any 
        agency or department thereof.
            ``(12) The term `develop' or `development' means to develop 
        or to produce, or both, or the development or production, or 
        both, respectively, including all incidental operations.
    ``(b) Parties Encouraged To Enter Into Written Agreement.--In any 
common area, the Federal coal lessee and oil and gas developer, subject 
to applicable Federal and State law, may and are encouraged to enter 
into a written agreement that details operations and assigns or 
assesses costs or compensation for the concurrent or sequential 
development of those resources.
    ``(c) Mineral Conservation.--The Secretary shall employ such 
authority as the Secretary may possess under this Act to encourage 
expedited development of oil and gas and coal that--
            ``(1) are leased pursuant to this Act;
            ``(2) are within common areas; and
            ``(3) otherwise may be lost or bypassed under agreements 
        entered into, or orders issued, pursuant to this section.
    ``(d) Exploration.--Unless otherwise provided by law, in any common 
area where no coal, gas, or oil development operations have commenced, 
the Federal coal lessee and the oil and gas developer shall each--
            ``(1) have access to conduct exploration activities; and
            ``(2) conduct such activities in a manner that will avoid 
        undue interference with the other's activities.
    ``(e) Negotiations Concerning Development Priority for Certain 
Operations in the Basin.--
            ``(1) Obligation to provide written notice of conflict.--
        Whenever a Federal coal lessee or an oil and gas developer 
        determines that a common area exists which contains a Federal 
        coal lease, or a logical mining unit, including the Federal 
        coal lease, held by the Federal coal lessee and an oil and gas 
        property held by the oil and gas developer and, pursuant to an 
        approved or proposed mining plan, mining operations or 
        facilities in support of mining for coal on the leasehold or 
        the logical mining unit will be located within the common area, 
        the Federal coal lessee or the oil and gas developer shall 
        provide written notice of the determination to the other party 
        no later than 210 days prior to the date on which the mining 
        operations or construction of the mine support facilities is 
        projected by the approved or proposed mining plan to commence 
        in the common area.
            ``(2) Obligation to negotiate.--Promptly after providing 
        the notice referred to in paragraph (1), the party which 
        provided the notice shall seek to negotiate a written agreement 
        with the other party that resolves any conflict between the 
        development of gas or oil and development of coal in the common 
        area.
    ``(f) Compensation Procedures for Assignment of Development 
Priority.--
            ``(1) Petition for relief.--(A) If the Federal coal lessee 
        and the oil and gas developer engage in negotiations, but do 
        not reach agreement, pursuant to subsection (e)(2), the Federal 
        coal lessee or the oil and gas developer may file a petition 
        for relief as described in subparagraph (C) in the United 
        States district court for the district in which the common area 
        is located on any date which is not less than 150 days prior to 
        the date on which the mining operations or construction of the 
        mine support facilities is projected by the approved or 
        proposed mining plan to commence in the common area.
            ``(B) The petitioner shall serve the oil and gas developer 
        or the Federal coal lessee, as the case may be, with a copy of 
        the petition for relief.
            ``(C) The petition for relief shall include the following:
                    ``(i) A description and map of the Federal coal 
                lease, the oil and gas property, and the common area.
                    ``(ii) A list containing the names and addresses of 
                all owners of any non-Federal interest in the oil and 
                gas property and all owners of any non-Federal interest 
                in the Federal coal lease or logical mining unit. The 
                petitioner shall list those owners of any non-Federal 
                interest in the oil and gas property and of the Federal 
                coal lease or logical mining unit whom the petitioner 
                is able to ascertain from the properly indexed records 
                of the county recorder of the county or counties in 
                which the oil and gas property and Federal coal lease 
                or logical mining unit are located, and the respondent 
                shall file with the court and serve on the petitioner 
                any corrections of, additions to, or deletions from the 
                list known to the respondent within 10 days of service 
                of the petition for relief pursuant to subparagraph 
                (A). Thereafter, whenever any correction of, addition 
                to, or deletion from the list becomes known to either 
                the petitioner or the respondent, that party shall 
                promptly file with the court and serve on the other 
                party the addition, correction, or deletion. Any person 
                who believes he or she is an owner of any non-Federal 
                interest in the oil and gas property or in the Federal 
                coal lease or logical mining unit and is omitted from 
                the list may file a motion in the court to be added to 
                the list at any time prior to the issuance of an order 
                pursuant to paragraph (10)(E) or paragraph (11)(C).
                    ``(iii) A certified copy of the notice described in 
                subsection (e)(1).
                    ``(iv) A sworn statement by a senior officer of the 
                petitioner with authority to commit the petitioner in 
                any negotiation under subsection (e)(2) stating, and 
                all documents demonstrating, that the petitioner 
                negotiated or attempted to negotiate in good faith with 
                the respondent, pursuant to subsection (c)(2), a 
                voluntary agreement for development of the coal and gas 
                or oil resources or an agreement to compensate the oil 
                and gas developer and all other owners of any non-
                Federal interest in the oil and gas property for any 
                loss of, or delay in development of, the oil or gas 
                resource, or the Federal coal lessee and all other 
                owners of any non-Federal interest in the Federal coal 
                lease or logical mining unit for any loss of, or delay 
                in development of, the coal resource, resulting from 
                the conflict between development of gas or oil and 
                development of coal in the common area.
            ``(D) The Federal coal lessee shall submit a copy of the 
        approved or proposed mining plan for the mining operations or 
        support facilities that are the subject of the petition for 
        relief--
                    ``(i) with the petition for relief if the Federal 
                coal lessee is the petitioner; or
                    ``(ii) within 5 days of the date of service of the 
                petition for relief if the Federal coal lessee is the 
                respondent.
            ``(2) Joinder of parties.--The Secretary of the Interior 
        and all owners of any non-Federal interest in the oil and gas 
        property and in the Federal coal lease or logical mining unit 
        identified pursuant to paragraph (1)(C)(ii) shall be joined in 
        the proceedings established pursuant to this subsection.
            ``(3) Parties' response to petition.--The non-Federal 
        respondent or respondents shall have 30 days from the date of 
        service of the petition for relief in which to respond to the 
        petition. The Secretary of the Interior shall have 60 days from 
        the date of service of the petition for relief in which to 
        respond to the petition.
            ``(4) Court's initial response to petition: public interest 
        determination and order concerning sequence of development.--
        Within 120 days of the filing of the petition for relief 
        pursuant to paragraph (1)(A), the court shall take the 
        following actions:
                    ``(A) The court shall determine, with petitioner 
                having the burden of proof--
                            ``(i) whether a common area exists; and
                            ``(ii) whether the approved or proposed 
                        mining plan provides for the mining operations 
                        to intersect, or the mine support facilities to 
                        be constructed in, any portion of the common 
                        area.
                    ``(B)(i) If existence of the common area and 
                intersection of, or construction in, the common area 
                are determined pursuant to subparagraph (A), the court 
                shall determine whether the public interest is best 
                realized either by suspension of all or any part of, 
                including any geographical area of or zone or reservoir 
                subject to, the oil and gas lease or right to develop 
                to accommodate coal development, or by suspension of 
                the Federal coal lease to accommodate gas or oil 
                development, in any portion of the common area during 
                the period prior to an order issued pursuant to 
                paragraph (10)(E) or paragraph (11)(C).
                    ``(ii) Notwithstanding the obligations of Federal 
                and State officials to maximize the economic benefit to 
                be received from mineral resources, the public interest 
                determination described in clause (i) shall be made 
                solely by the calculation of the greater economic 
                benefit to be realized by comparison, on a net present 
                value basis, of the Federal and State revenues from 
                royalties and severance taxes likely to be generated 
                from each mineral underlying the common area to which 
                the petition for relief applies.
                    ``(C)(i) If the determination made pursuant to 
                subparagraph (B) is that the public interest is best 
realized by suspension of all or part of the oil and gas lease or right 
to develop, the court shall issue an order fixing the date upon which 
the Federal coal lessee may commence mining operations or construction 
of support facilities in the common area.
                    ``(ii) The date fixed by the court pursuant to 
                clause (i) may not be later than the commencement date 
                referred to in paragraph (1)(A) and provided in the 
                notice submitted pursuant to paragraph (1)(C)(iii), 
                except for good cause shown.
                    ``(D)(i) If the determination made pursuant to 
                subparagraph (B) is that the public interest is best 
                realized by requiring suspension of the Federal coal 
                lease, the court shall issue an order prohibiting the 
                mining operations from intersecting, or the support 
                facilities from being constructed in, all or a portion 
                of the common area.
                    ``(ii) The order issued pursuant to clause (i) 
                shall expire upon the issuance of an order pursuant to 
                paragraph (11)(C).
            ``(5) Conditions in which court may refrain from issuing 
        order.--(A) The court may receive such briefs or testimony, or 
        both, as it deems appropriate within 90 days of the filing of 
        the petition for relief pursuant to paragraph(1)(A), but may 
        refrain from issuing the order required by paragraph (4)(C) or 
        paragraph (4)(D) only if the court determines, pursuant to 
        paragraph (4)(A), that--
                    ``(i) no common area exists; or
                    ``(ii) the approved or proposed mining plan does 
                not provide for the mining operations to intersect, or 
                the support facilities to be constructed in, the common 
                area.
            ``(B) If the court makes either determination described in 
        subparagraph (A), the court shall issue an order terminating 
        the proceeding under this subsection.
            ``(6) Valuation procedure: appointment of experts.--(A) 
        Within 30 days of the issuance of an order pursuant to 
        paragraph (4)(C) or paragraph (4)(D), to assist the court in 
        making the determinations pursuant to paragraph (10) or 
        paragraph (11), the Federal coal lessee and the oil and gas 
        developer shall each appoint a person who is an expert in 
        appraising the value of, and right to develop, gas or oil if 
        the order is issued under paragraph (4)(C), or coal if the 
        order is issued under paragraph (4)(D), and these persons shall 
        agree upon and appoint a third person with such expertise. If 
        no agreement is reached on the appointment of a third person, 
        the court shall make the appointment.
            ``(B) The Federal coal lessee shall be responsible for 
        compensation of the expert appointed by it; the oil and gas 
        developer shall be responsible for compensation of the expert 
        appointed by it; and the Federal coal lessee and oil and gas 
        developer shall each pay one-half of the compensation for the 
        third expert.
            ``(7) Information and data.--(A) The Federal coal lessee, 
        oil and gas developer, and Secretary of the Interior shall each 
        submit to the panel of experts within 30 days of the 
        appointment of the panel pursuant to paragraph (6) all 
        information and data in the possession of such party that is 
        pertinent to the determinations to be made pursuant to 
        paragraph (10) or paragraph (11), and shall each submit to the 
        panel of experts thereafter any additional pertinent 
        information and data in the possession of such party that the 
        panel requests of such party in writing.
            ``(B) Except as provided in subparagraph (C), the court 
        shall ensure that any information and data submitted to the 
        panel of experts pursuant to subparagraph (A) shall provide the 
        protection of confidentiality that is applicable, and may be 
        accorded, to them by law and the Federal rules of civil 
        procedure and evidence.
            ``(C) All information and data submitted to the panel of 
        experts pursuant to subparagraph (A) shall be available for 
        review by all parties unless an ex parte order is issued by the 
        court.
            ``(D) The Federal coal lessee may drill for and otherwise 
        collect data or information on coalbed methane at any site or 
        sites within the common area that are not within a spacing unit 
        containing a well that is producing or capable of producing 
        coalbed methane. The drilling or collection of data or 
        information shall be for the sole purpose of submission of 
        information and data pursuant to this paragraph. The Federal 
        coal lessee shall not produce any coalbed methane as a result 
        of any drilling authorized by this subparagraph and shall 
        comply with any Federal or State requirements applicable to 
        such activity.
            ``(8) Submission of briefs and hearing.--(A) Within 45 days 
        of the appointment of the panel of experts pursuant to 
        paragraph (6), all parties may submit briefs concerning the 
        determinations to be made pursuant to paragraph (10) or 
        paragraph (11).
            ``(B) Within 60 days of the appointment of the panel of 
        experts pursuant to paragraph (6), the panel may, or if 
        requested by the petitioner or a respondent shall, receive 
        testimony from all parties concerning the determinations to be 
        made pursuant to paragraph (10) or paragraph (11).
            ``(9) Experts' report.--Within 120 days of the appointment 
        of the panel of experts pursuant to paragraph (6), the panel 
        shall submit a written report to the court providing in detail 
        the panel's recommendations on the determinations to be made 
        pursuant to paragraph (10) or paragraph (11).
            ``(10) Court's final response to petition: valuation 
        concerning economically recoverable oil or gas resources lost 
        or delayed, suspension or termination, and payment order.--
        Within 210 days of the issuance of an order pursuant to 
        paragraph (4)(C), the court shall take the following actions:
                    ``(A)(i) The court shall determine whether, as a 
                result of the order issued pursuant to paragraph 
                (4)(C), all or any part of, including any geographical 
area of or zone or reservoir subject to, the oil and gas lease or right 
to develop should be suspended during the period in which the mining 
operations or support facilities occupy the common area or whether the 
oil and gas lease or right to develop should be terminated.
                    ``(ii) Any determination to suspend pursuant to 
                clause (i) shall, wherever possible or appropriate, 
                limit the suspension or phase the suspension to permit 
                the optimum development of the oil or gas prior to the 
                time at which the mining operations would reach the 
                area within the common area that is subject to the 
                suspension or particular phase of the suspension.
                    ``(iii) Any determination to terminate pursuant to 
                clause (i) shall be made only if the court finds that 
                the economically recoverable oil and gas resources 
                subject to compensation pursuant to subparagraph (E) 
                would be entirely lost or rendered impracticable to 
                produce as a consequence of the mining operations in 
                the common area and that such resources constitute all 
                of the economically recoverable resources within the 
                oil and gas property.
            ``(B) If the court makes a determination to suspend 
        pursuant to subparagraph (A), the court shall determine--
                    ``(i) the amount of any net income that will not be 
                realized due to delay in development of economically 
                recoverable resources of oil or gas, other than coalbed 
                methane, from the common area, whether or not such 
                development has commenced;
                    ``(ii) the amount of any net income that will not 
                be realized due to--
                            ``(I) delay in development of economically 
                        recoverable resources of coalbed methane in the 
                        common area, whether or not development has 
                        commenced;
                            ``(II) the loss of any economically 
                        recoverable resources of coalbed methane from 
                        the coal to be extracted by the mining 
                        operations in the common area; and
                            ``(III) the loss of any economically 
                        recoverable resources of coalbed methane 
                        underlying any area that is within the oil and 
                        gas property associated with the common area 
                        and that extends outward from each exposed coal 
                        face of the mining operations for a distance 
                        from which drainage of such resources is 
                        established to the satisfaction of the court; 
                        and
                    ``(iii) any of the following damages that will be 
                incurred by the oil and gas developer as a consequence 
                of the suspension: any unavoidable fixed expenses 
                (including, but not limited to, the expenses of 
                shutting in production, maintenance, testing, 
                redrilling or reconnecting an existing well, relaying 
                pipeline, and all other expenses reasonably related to 
                reestablishing any existing oil or gas production); 
                expenses associated with stranded costs of drilling 
                equipment and facilities; any royalties on oil or gas 
                not produced; and any lost income associated with 
                temporarily shutting in production from wells outside 
                of the common area as needed for reconnection to a 
                gathering system or pipeline to market.
                    ``(C) The determinations made pursuant to 
                subparagraph (B) shall not reflect any decrease in 
                value that occurred before the date of the 
                determinations and is caused by the mining operations 
                or support facilities.
                    ``(D) If the court makes a determination to 
                terminate pursuant to subparagraph (A), the court shall 
                determine the amount of any net income that will not be 
                realized and any damages due to the loss of, or 
                impracticability to produce, the economically 
                recoverable resources of oil or gas in the oil and gas 
                property in the same manner as provided in subparagraph 
                (B).
                    ``(E) The court shall issue an order that--
                            ``(i) suspends all or part of, suspends in 
                        phases parts of, or terminates the oil and gas 
                        lease or right to develop, including any 
                        applicable payment or production obligations; 
                        and
                            ``(ii) awards to the oil and gas developer 
                        and all other owners of any interest in the oil 
                        and gas property, as their interests may 
                        appear, a sum of money from the Federal coal 
                        lessee equal to the net income amount and 
                        damages determined pursuant to subparagraph (B) 
                        or subparagraph (D).
                    ``(F) In determining the amount of net income that 
                will not be realized pursuant to subparagraph (B) or 
                subparagraph (D) and the sum of money to be awarded 
                pursuant to subparagraph (E), the court shall ensure to 
                the best of its ability that the Federal coal lessee is 
                not required to pay for the same gas lost, delayed in 
                development, or rendered impracticable to develop to 
                more than one oil and gas developer or the owner of any 
                interest in more than one oil and gas property.
            ``(11) Court's final response to petition: valuation 
        concerning economically recoverable coal reserves lost or 
        delayed, suspension or termination and payment order.--Within 
        210 days of the issuance of an order pursuant to paragraph 
        (4)(D), the court--
                    ``(A) shall determine whether the Federal coal 
                lease shall be suspended in whole or in part to 
                accommodate oil or gas development in the common area; 
                and
                    ``(B) shall determine the amount of any net income 
                that will not be realized from the loss or delay in 
                development of economically recoverable resources of 
                coal, and the unavoidable fixed expenses (including, 
                but not limited to, additional expenses associated with 
                reclamation, expenses associated with stranded costs of 
                mining equipment and facilities, a proportionate refund 
of the lease bonus, and any royalties on coal not produced) that will 
be incurred, by the Federal coal lessee as a consequence of the 
suspension; and
                    ``(C) shall issue an order that--
                            ``(i) suspends in whole or in part the 
                        Federal coal lease, including any applicable 
                        payment or production obligations on the lease 
                        or logical mining unit, for the period 
                        necessary for expeditious development in the 
                        common area of the gas or oil that is the 
                        subject of the petition for relief as 
                        demonstrated to the court in a production plan 
                        submitted by the oil and gas developer; and
                            ``(ii) awards to the Federal coal lessee 
                        and all other owners of any interest in the 
                        Federal coal lease or logical mining unit, as 
                        their interests may appear, a sum of money 
                        equal to the net income amount and unavoidable 
                        fixed expenses determined pursuant to 
                        subparagraph (B).
            ``(12) Review of experts' report.--(A) The court shall make 
        the determinations required by paragraph (10) or paragraph (11) 
        after reviewing the report of the panel of experts submitted 
        pursuant to paragraph (9) and the hearing required by 
        subparagraph (B).
            ``(B) After submission of the report of the panel of 
        experts pursuant to paragraph (9) and prior to making the 
        determinations required by paragraph (10) or paragraph (11), 
        the court shall hold a hearing in which the panel of experts 
        shall present their report and the parties to the proceeding 
        shall have the opportunity to examine the panel and provide to 
        the court any evidence or arguments they may have to support or 
        contravene the recommendations of the report.
            ``(13) Disbursement of payments.--
                    ``(A)(i) At the election of the oil and gas 
                developer, the sum of money awarded by the court 
                pursuant to paragraph (10)(E) shall be--
                            ``(I) paid in full within 60 days of the 
                        date of issuance of the order pursuant to 
                        paragraph (10)(E); or
                            ``(II) divided into the number of tons of 
                        recoverable coal in the common area and shall 
                        be paid in per ton increments as the coal is 
                        mined in accordance with clause (ii) and 
                        subparagraph (C).
                    ``(ii) The Federal coal lessee shall make the 
                payments required by clause (i)(II) on a quarterly 
                basis in advance based on the Federal coal lessee's 
                estimate of the number of tons of coal to be mined in 
                the common area during the following quarter, and shall 
                add or subtract an amount to or from the advance 
                payment for the next quarter to reflect the coal 
                actually sold or transferred.
                    ``(B)(i) At the election of the Federal coal 
                lessee, the sum of money awarded by the court pursuant 
                to paragraph (11)(C) shall be--
                            ``(I) paid in full within 60 days of the 
                        date of issuance of the order pursuant to 
                        paragraph (11)(C); or
                            ``(II) divided into the number of barrels 
                        of recoverable oil or cubic feet of recoverable 
                        gas in the common area and paid in per barrel 
                        or cubic feet increments as the oil or gas is 
                        produced in accordance with clause (ii) and 
                        subparagraph (C).
                    ``(ii) The oil and gas developer shall make the 
                payments required by clause (i)(II) on a quarterly 
                basis in advance based on the oil and gas developer's 
                estimate of the number of barrels of oil or cubic feet 
                of gas to be produced in the common area during the 
                following quarter, and shall add or subtract an amount 
                to or from the advance payment for the next quarter to 
                reflect the oil or gas actually produced.
                    ``(C) If the mining or production necessary to make 
                full payment of the sum of money awarded by the court 
                in accordance with subparagraph (A)(i)(II) or 
                subparagraph (B)(i)(II) does not occur within 5 years 
                of the date of issuance of the court order pursuant to 
                paragraph (10)(E) or paragraph (11)(C), the unpaid 
                balance shall be paid within 60 days thereafter.
            ``(14) Termination of oil and gas lease suspension.--(A) If 
        the court issues an order to suspend all or any part of the oil 
        and gas lease or right to develop pursuant to paragraph 
        (10)(E)--
                    ``(i) the Federal coal lessee shall notify the 
                court and the oil and gas lessee developer when the 
                portion of the common area subject to the order issued 
                pursuant to paragraph (10)(E) is no longer required for 
                mining operations or support facilities; and
                    ``(ii) within 120 days of the date of receipt by 
                the court of the notification pursuant to clause (i) or 
                within 60 days prior to the date on which the period 
                established by the court in the order issued pursuant 
                to paragraph (10)(E) concludes, the oil and gas lessee 
                may petition the court for an order that terminates the 
                suspension and fixes the date and terms on which the 
                oil and gas lessee may resume operations within the 
                portion of the common area subject to the order issued 
                pursuant to paragraph (10)(E).
            ``(B) The court shall issue the order sought under 
        subparagraph (A)(ii) within 30 days of receipt of the petition 
        pursuant to subparagraph (A)(ii).
            ``(C)(i) If the oil and gas developer determines that, as a 
        consequence of the order of the court issued pursuant to 
        paragraph (4)(C) and an order to suspend all or portions of the 
        oil and gas lease or right to develop pursuant to paragraph 
        (10)(E), the conditions described in paragraph (10)(A)(iii) 
        exist, the oil and gas developer may petition the court to 
        terminate in whole or in part the oil and gas lease or right to 
        develop.
            ``(ii) The petition referred to in clause (i) may be filed 
        any time after issuance of the order of the court pursuant to 
        paragraph (10)(E) but not later than 120 days after the date of 
        receipt by the court of the notification pursuant to 
        subparagraph (A)(i).
            ``(iii) Upon receipt of a petition pursuant to clause (i), 
        the court shall make a determination whether to issue an order 
        to terminate in whole or in part the oil and gas lease or right 
        to develop and award an additional amount from the Federal coal 
        lessee to the oil or gas developer and all other owners of any 
        non-Federal interest in the oil and gas property, as their 
        interests may appear, in accordance with the procedures and 
        deadlines established in paragraph (1) and paragraphs (6) 
        through (13).
            ``(15) Termination of coal lease suspension.--(A) If the 
        court issues an order requiring suspension of the Federal coal 
        lease pursuant to paragraph (11)(C)--
                    ``(i) the oil and gas developer shall notify the 
                court and the Federal coal lessee when the portion of 
                the common area subject to the order issued pursuant to 
                paragraph (11)(C) is no longer required for gas or oil 
                production from such portion; and
                    ``(ii) within 120 days of the receipt by the court 
                of the notification pursuant to clause (i) or within 60 
                days prior to the date on which the period established 
                by the court in the order issued pursuant to paragraph 
                (11)(C) concludes, the Federal coal lessee may petition 
                the court for an order that fixes the date and terms on 
                which the Federal coal lessee may commence mining 
                operations or construction of support facilities in the 
                portion of the common area subject to the order issued 
                pursuant to paragraph (11)(C) and, if the Federal coal 
                lease is suspended, terminates the suspension.
            ``(B) The court shall issue the order sought under 
        subparagraph (A)(ii) within 30 days of receipt of the petition 
        pursuant to subparagraph (A)(ii).
            ``(C)(i) If the Federal coal lessee determines that, as a 
        consequence of the orders of the court issued pursuant to 
        paragraph (4)(D) and paragraph (11)(C), further development of 
        all or any part of the Federal coal lease is impracticable, the 
        Federal coal lessee may petition the court to terminate all or 
        any part of the Federal coal lease.
            ``(ii) The petition referred to in clause (i) may be filed 
        any time after issuance of the order of the court pursuant to 
        paragraph (11)(C) but not later than 120 days after the date of 
        receipt by the court of the notification pursuant to 
        subparagraph (A)(i).
            ``(iii) Upon receipt of a petition pursuant to clause (i), 
        the court shall make a determination whether to issue an order 
        to terminate all or any part of the Federal coal lease and 
        award an additional amount from the oil and gas developer to 
        the Federal coal lessee and all other owners of any interest in 
        the Federal coal lease or logical mining unit, as their 
        interests may appear, in accordance with the procedures and 
        deadlines established in paragraph (1) and paragraphs (6) 
        through (13).
            ``(16) Supplemental petition for relief.--(A) If, at any 
        time after the issuance of an order pursuant to paragraph 
        (10)(E) or paragraph (11)(C), the mining plan that is the basis 
        of the order is altered in a manner that may warrant suspension 
        of an additional part or all of, or termination of, the oil and 
        gas lease or right to develop or suspension of an additional 
        part of the Federal coal lease or an increase in the sum of 
        money that was awarded under the order, or both, either the 
        Federal coal lessee or the oil and gas developer may, if 
        necessary after compliance with the requirements of subsection 
        (e), file a supplemental petition for relief with the court to 
        amend the order.
            ``(B) The requirements of paragraph (1) and paragraphs (6) 
        through (13) shall apply to the supplemental petition submitted 
        pursuant to subparagraph (A).
            ``(C)(i) Upon completion of the process required by 
        subparagraph (B), the court shall make a determination whether 
        to suspend an additional part or all of, or terminate, the oil 
        and gas lease or right to develop or to suspend an additional 
        part of the Federal coal lease as described in, and to award an 
        additional sum of money calculated in accordance with, 
        paragraph (10) or paragraph (11).
            ``(ii) The court shall issue any order resulting from the 
        determinations made pursuant to clause (i) within 90 days of 
        the date of filing of the supplemental petition for relief.
            ``(iii) Any award of an additional sum of money shall be 
        paid in accordance with paragraph (13).
            ``(17) Appeal of court orders.--(A) Any order issued 
        pursuant to paragraph (4)(C), paragraph (4)(D), paragraph 
        (5)(B), paragraph (14)(B), or paragraph (15)(B) is final and 
        may not be appealed.
            ``(B) Any order issued pursuant to paragraph (10)(E), 
        paragraph (11)(C), paragraph (14)(C)(iii), paragraph 
        (15)(C)(iii), or paragraph (16)(C)(ii) may be appealed, but the 
        appeal, and any disposition thereof, may not disturb any order 
        referred to in subparagraph (A).
    ``(g) Liability Limitation.--
            ``(1) Federal coal lessee.--Except as provided in a written 
        agreement reached pursuant to subsection (e)(2) or reached on 
        or after September 1, 1999, and before the date of enactment of 
        this section, or as provided by an order of the court pursuant 
        to subsection (f), the holder of a Federal coal lease subject 
        to the agreement or order shall not be liable to the oil and 
        gas developer of, or any owner of an interest in, any oil and 
        gas property subject to the agreement or order for any decrease 
        in or depletion of, or any impairment of the ability to 
        recover, any gas or oil from the property that may result from 
        the development of any coal on the Federal coal leasehold or 
        within a logical mining unit with the Federal coal lease.
            ``(2) Oil and gas developer.--Except as provided in a 
        written agreement reached pursuant to subsection (e)(2) or 
        reached on or after September 1, 1999, and before the date of 
        enactment of this section, or as provided by an order of the 
        court pursuant to subsection (f), the oil and gas developer of 
        an oil and gas property subject to the agreement or order shall 
        not be liable to a holder of a Federal coal lease subject to 
        the agreement or order, the United States, or any owner of an 
        interest in private or State coal within a logical mining unit 
        with the Federal coal lease, for any impairment of the ability 
        to recover coal from the Federal coal leasehold or logical 
        mining unit that may result from the development of gas or oil 
        on the property.
    ``(h) Credit Against Royalties.--
            ``(1) In general.--(A) Whenever a holder of a coal lease 
        issued under this Act is required by a written agreement 
        reached pursuant to subsection (e)(2) and ratified by the 
        Bureau of Land Management or reached prior to the date of 
        enactment of this section and ratified by the Bureau of Land 
        Management on or after September 1, 1999, or by a court order 
        issued pursuant to paragraph (10)(E), paragraph (14)(C)(iii), 
        or paragraph (16)(C)(ii) of subsection (f), to pay an amount 
        for termination or suspension of all or part of, or 
        termination, of an oil and gas lease of, or right to develop, 
        coalbed methane on any oil and gas property located within the 
        Subsection (h) Lands, the amount so paid shall be credited 
        against any royalties on production required by section 7(a) or 
        any other provision of this Act from any Federal coal lease of 
        such holder or any affiliate thereof.
            ``(B) Whenever a holder of an oil and gas lease issued 
        under this Act is required by a written agreement reached 
        pursuant to subsection (c)(2) and ratified by the Bureau of 
        Land Management or reached prior to the date of enactment of 
        this section and ratified by the Bureau of Land Management on 
        or after September 1, 1999, or by a court order issued pursuant 
        to paragraph (11)(C), paragraph (15)(C)(iii), or paragraph 
        (16)(C)(ii) of subsection (f), to pay an amount for suspension 
        or termination of all or part of a Federal coal lease located 
        within the Subsection (h) Lands, the amount so paid shall be 
        credited against any royalties on production required by 
        subsection (b)(1)(A) or subsection (c)(1) of section 17 or any 
        other provision of this Act from any Federal oil and gas lease 
        of such holder or any affiliate thereof.
            ``(2) Treatment of royalties to states.--The Secretary 
        shall pay to the State in which the coal lease or oil and gas 
        lease referred to in paragraph (1)(A) or paragraph (1)(B), 
        respectively, is located 50 percent of the amount of any credit 
        against royalties provided under paragraph (1)(A) or paragraph 
        (1)(B), respectively--
                    ``(A) in the same manner as if the credit against 
                royalties had been paid in money as royalties and 
                distributed under section 35(a); and
                    ``(B) from amounts received as royalties, rentals, 
                or bonuses derived from leases issued under this Act 
                that otherwise would be deposited to miscellaneous 
                receipts under section 35(a).
    ``(i) Denial of Use as Precedent.--Nothing in this section shall be 
applicable to any lease under this Act for any mineral, or shall be 
applicable to, or supersede any statutory or common law otherwise 
applicable in, any proceeding in any Federal or State court involving 
development of any mineral, outside of any common area, as defined in 
subsection (a)(6), within the Powder River Basin, as defined in 
subsection (a)(1).''.
                                 <all>