[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1950 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1950

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 17, 1999

 Mr. Enzi (for himself and Mr. Thomas) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural 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 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 1999''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (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, Department of the Interior, 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 three 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. These resources are 
        frequently extracted sequentially, but for safety and 
        operational reasons typically cannot be extracted 
        simultaneously, in the same location. Even if concurrent 
        development may be possible, disputes often occur.
            (10) In many locations both the coal and the gas and oil 
        have been leased or sold to different parties, and disputes 
        have arisen among those parties concerning plans for, and the 
        course of, development of those resources.
            (11) The development of any one of those 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 should be ascertained 
        and fair market value for the loss or delay provided either by 
        agreement between the resources' producers 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 Powder River Basin's 
        energy resources and fair treatment to the resources' 
        producers.
    (b) Purpose.--The purpose of this Act is to amend the Mineral 
Leasing Act to provide a procedure to resolve disputes between 
producers of coal and producers of natural gas and oil in the Powder 
River Basin regarding the sequence of development of those resources in 
the same location and to determine fair and just compensation owed for 
the postponement, or loss, of the opportunity to develop a resource 
resulting from implementation of the procedure.

SEC. 3. AMENDMENT TO THE MINERAL LEASING ACT.

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

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

    ``(a) Multiple Use.--
            ``(1) In general.--Insofar as it is operationally and 
        economically practicable, all operations for the development of 
        coal and all operations for the production of oil or natural 
        gas, including coalbed methane, in the Powder River Basin, as 
        depicted 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 
        (hereafter referred to in this section as the `Basin'), shall 
        be conducted under applicable Federal and State law so as not 
        to unduly interfere with each other and in a manner compatible 
        with such multiple use.
            ``(2) Parties encouraged to enter into written agreement.--
        On any land in the Basin which is both leased under this Act 
        for the development of Federal coal and leased under this Act 
        or otherwise made available by the owner thereof for the 
        production of Federal, State, or private gas or oil, the 
        Federal coal lessee and the holder of the lease for, or the 
        right to develop, the Federal, State, or private gas or oil 
        (hereafter referred to in this section as the `oil and gas 
        lessee'), 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 for the concurrent or 
        sequential development of those resources.
    ``(b) Exploration.--Unless otherwise provided by law, on any land 
described in subsection (a)(2) where no coal, gas, or oil development 
operations have commenced, the Federal coal lessee and the oil and gas 
lessee 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.
    ``(c) Negotiations Concerning Development Priority for Certain 
Operations in the Basin.--
            ``(1) Obligation to provide written notice of conflict.--
        Whenever a holder of a lease issued under this Act for coal in 
        the Basin or an oil and gas lessee of Federal, State, or 
        private gas or oil in the Basin (hereafter referred to in this 
        section as the `oil and gas property') determines that the 
        Federal coal lease or the area to which applies the Federal or 
State permit issued to the Federal coal lessee pursuant to the Surface 
Mining Control and Reclamation Act (Public Law 95-87, 91 Stat. 445) 
within or including the Federal coal lease, whichever is larger, and 
the oil and gas property overlap in whole or in part (hereafter 
referred to in this section as the `common area') and, pursuant to a 
mining plan that is approved or proposed (whether or not submitted for 
approval) (hereafter referred to in this section as an `approved or 
proposed mining plan'), mining operations or facilities in support of 
mining for coal on the leasehold or for State or private coal within a 
logical mining unit with the lease will be located within the common 
area, the Federal coal lessee or the oil and gas lessee 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 expected to commence in 
the common area.
            ``(2) Obligation to negotiate.--Promptly after providing 
        the notice referred to in paragraph (1), the Federal coal 
        lessee or oil or gas lessee shall seek to negotiate a written 
        agreement with the other party that resolves any conflict 
        between the production of gas or oil and development of coal in 
        the common area.
    ``(d) Compensation Procedures for Assignment of Development 
Priority.--
            ``(1) Petition for relief.--
                    ``(A) If the Federal coal lessee and the oil and 
                gas lessee engage in negotiations, but do not reach 
                agreement, pursuant to subsection (c)(2), the Federal 
                coal lessee or the oil and gas lessee 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 more than one year or less than 150 days prior to 
                the date on which the mining operations or construction 
                of the mine support facilities is expected to commence 
                in the common area.
                    ``(B) The petitioner shall serve the oil and gas 
                lessee 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, including 
                        working interests, mineral interests, and 
                        royalty interests, 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 or additions to the 
                        list within 10 days of service of the petition 
                        for relief pursuant to subparagraph (A).
                            ``(iii) A certified copy of the notice 
                        described in subsection (c)(1).
                            ``(iv) A statement that, pursuant to 
                        subsection (c)(2), the petitioner and the 
                        respondent attempted to negotiate a cooperative 
                        agreement for development of the coal and gas 
                        or oil resources or an agreement to compensate 
                        the oil and gas lessee and all other owners of 
                        any non-Federal interest in the oil and gas 
                        property for any loss of, or delay in 
                        production 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 production 
                        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 petitioner shall join in the 
        proceedings the Secretary of the Interior and the interest 
        owners identified pursuant to paragraph (1)(C)(ii).
            ``(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--
                            ``(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 or termination of all or 
                any part of 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 
                production, in any existing or proposed production 
                segments of the common area.
                    ``(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 subsection (c)(1) 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, 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 and/or 
                testimony 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.
            ``(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), the 
                petitioner, the respondent, and the Secretary of the 
                Interior shall each appoint 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), to assist the court 
                in making the determinations required by paragraph (10) 
                or paragraph (11).
                    ``(B) The petitioner shall be responsible for 
                compensation of the expert appointed by it and 
                reimbursement of the Secretary for the reasonable and 
                customary costs of the expert appointed by the 
                Secretary. The respondent shall be responsible for 
                compensation of the expert appointed by it.
            ``(7) Submission of briefs.--Within 30 days of the 
        appointment of the panel of experts pursuant to paragraph (6), 
        the petitioner and the respondents may submit briefs concerning 
        the determinations to be made pursuant to paragraph (10) or 
        paragraph (11).
            ``(8) Hearing.--Within 45 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 petitioners and -respondents concerning the 
        determinations to be made pursuant to -paragraph (10) or 
        paragraph (11).
            ``(9) Experts' report.--Within 90 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 oil or gas reserves lost or delayed, suspension or 
        termination and payment order.--Within 180 days of the issuance 
        of an order pursuant to paragraph (4)(C), the court shall take 
        the following actions:
                    ``(A) The court shall determine whether, as a 
                result of the rder issued pursuant to paragraph (4)(C), 
                all or any part of the oil and gas lease or right to 
                develop should be terminated at the end of the court's 
                proceeding or suspended during the period in which the 
                mining operations or support facilities occupy the 
                common area.
                    ``(B)(i) If the court makes a determination to 
                suspend pursuant to subparagraph (A), the court shall 
                determine the-amount of any net income that will not be 
                realized due to loss or delay in production of 
                economically recoverable reserves of oil or gas from 
                the area underlying the proposed ---mining operations 
                or support facilities within the common area, and 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, all other expenses 
                reasonably related to reestablishing any existing oil 
                or gas production, and any royalties on oil or gas not 
                produced) that will be incurred, by the oil and gas 
                lessee as a consequence of the suspension.
                    ``(ii) 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 due to loss of economically recoverable 
                reserves of oil or gas from the area described in 
clause (i) as a consequence of the termination.
                    ``(C) The court shall issue an order that--
                            ``(i) either suspends or terminates all or 
                        part of the oil and gas lease or right to 
                        develop, including any payment or production 
                        obligations on the oil and gas lease or right 
                        to develop for the period in which the mining 
                        operations or mine support facilities are 
                        expected to occupy the common area in 
                        accordance with the approved or proposed mining 
                        plan; and
                            ``(ii) awards to the oil and gas lessee 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 unavoidable fixed 
                        expenses determined pursuant to subparagraph 
                        (B)(i) or subparagraph (B)(ii).
            ``(11) Court's final response to petition: valuation 
        concerning coal reserves lost or delayed, suspension or 
        termination and payment order.--Within 180 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 to accommodate oil or gas 
                production in the common area; and
                    ``(B) shall determine the amount of any net income 
                that will not be realized from the loss or postponement 
                of development of economically recoverable reserves 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 the Federal coal lease, 
                        including any payment or production obligations 
                        on the lease or logical mining unit, for the 
                        period necessary for expeditious production 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 lessee; 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 
                petitioner and respondents shall have the opportunity 
                to pose questions to 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) The sum of money awarded by the court 
                pursuant to paragraph (10)(C) shall be 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.
                    ``(ii) The Federal coal lessee shall make the 
                payments required by clause (i) 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) The sum of money awarded by the court 
                pursuant to paragraph (11)(C) shall be divided into the 
                number of barrels of recoverable oil or cubic feet of 
                recoverable gas in the common area and shall be paid in 
                per ---barrel or cubic feet increments as the oil or 
                gas is produced.
                    ``(ii) The oil and gas lessee shall make the 
                payments required by clause (i) on a quarterly basis in 
                advance based on the oil and gas lessee'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 
                does not occur within 5 years of the date of issuance 
                of the court order pursuant to paragraph (10)(C) 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)(C)--
                            ``(i) the Federal coal lessee shall notify 
                        the court and the oil and gas lessee when the 
                        portion of the common area subject to the order 
                        issued pursuant to paragraph (10)(C) 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)(C) 
                        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)(C).
                    ``(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 lessee determines that, 
                as a -consequence of the orders of the court issued 
                pursuant to paragraph (4)(C) and paragraph (10)(C), 
                further development of the portion of the common area 
                subject to the order issued pursuant to paragraph 
                (10)(C) is impracticable, the oil and gas lessee 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)(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 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 lessee 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 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 lessee 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 lessee 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 paragraphs (6) through 
                (13).
            ``(16) Supplemental petition for relief.--
                    ``(A) If, at any time after the issuance of an 
                order pursuant to paragraph (10)(C) or paragraph 
                (11)(C), the mining plan that is the basis of the order 
                is altered in a manner that may warrant suspension or 
                termination of an additional part or all of the oil and 
                gas lease or right to develop or suspension or 
                termination of the Federal coal lease and/or an 
                increase in the sum of money that was awarded under the 
                order, either the Federal coal lessee or the oil and 
                gas lessee may file a supplemental petition for relief 
                with the court to amend the order.
                    ``(B) The petitioner shall take such steps as are 
                required by subparagraphs (B) and (C) of paragraph (1) 
                and the supplemental-petition for relief shall contain 
                any information required by subparagraph (C) of 
                paragraph (1) that was not submitted with the petition 
                for relief filed with the court prior to the issuance 
                of the order pursuant to paragraph (10)(C) or paragraph 
                (11)(C).
                    ``(C)(i) If any respondent disputes any information 
                contained in the supplemental petition for relief, the 
                respondent shall, within 10 days of the date of service 
                of the petition, file with the court a response setting 
                forth the grounds of dispute.
                    ``(ii) The court may receive such briefs and/or 
                testimony it deems appropriate within 30 days of the 
                date of filing of the supplemental petition for relief, 
                but may refrain from issuing the order required by 
                subparagraph (D)(ii) only if the court makes either 
                determination set forth in paragraph (5)(A).
                    ``(D)(i) Based on the supplemental petition for 
                relief and any response, briefs, or testimony received 
                pursuant to paragraph (C), and after review of the 
                report of the panel of experts submitted pursuant to 
                paragraph (9) prior to the issuance of the order 
                pursuant to paragraph (10)(C) or paragraph (11)(C), the 
                court shall make a determination whether to suspend or 
                terminate an additional part or all of the oil and gas 
                lease or right to develop or to suspend or terminate 
                the Federal coal lease as described in, and 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)(C), paragraph (11)(C), paragraph (14)(C)(iii), 
                paragraph (15)(C)(iii), or paragraph (16)(D) may be 
                appealed, but the appeal, and any disposition thereof, 
                may not disturb any order referred to in subparagraph 
                (A).
    ``(e) Liability Limitation.--
            ``(1) Federal coal lessee.--Except as provided in a written 
        agreement reached pursuant to subsection (c)(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 (d), the holder of a Federal coal lease subject 
        to the agreement or order shall not be liable to the oil and 
        gas lessee 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 
        mining of any coal on the Federal coal leasehold or within a 
        logical mining unit with the Federal coal lease.
            ``(2) Oil and gas lessee.--Except as provided in a written 
        agreement reached pursuant to subsection (c)(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 (d), the oil and gas lessee 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 production of gas or oil from the 
        property.
    ``(f) Applicability Limitation.--Nothing in this section 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 oil, gas, or coal outside of any common area as defined 
in subsection (c)(1).
    ``(g) 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 (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 
                (10)(C), paragraph (14)(C)(iii), or paragraph (16)(D) 
                of subsection (d), to pay an amount for termination or 
                suspension of all or part of an oil and gas lease of, 
                or right to develop, coalbed methane, as defined in 
                section 1339(p)(2) of the Energy Policy Act of 1992 
                (106 Stat. 2992, 42 U.S.C. 13368(p)(2)), on any oil and 
                gas property located within the area designated as 
                ``Subsection (g) Lands'' on the map described in 
                subsection (a)(1), 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)(D) of subsection (d), to pay an amount 
                for suspension or termination of a Federal coal lease 
                located within the area designated as ``Subsection (g) 
                Lands'' on the map described in subsection (a)(1), 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 a lease is located 50 percent 
        of the amount of any credit against royalties provided under 
        paragraph (1)--
                    ``(A) in the same manner as if the credit against 
                royalties had been paid in money as royalties and 
                distributed under section 35(a) of this Act; 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) of this Act.
    ``(h) Mineral Conservation.--The Secretary shall employ such 
authority as the Secretary may possess under this Act to encourage 
expedited development of Federal minerals 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.''

SEC. 4. EFFECTIVE DATE.

    This Act shall be effective upon the date of its enactment.
                                 <all>