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






                                                       Calendar No. 939
106th CONGRESS
  2d Session
                                S. 1950

                          [Report No. 106-490]

    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

            October 5 (legislative day, September 22), 2000

 Reported by Mr. Murkowski, with an amendment and an amendment to the 
                                 title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Powder River Basin Resource 
Development Act of 1999''.</DELETED>

<DELETED>SEC. 2. FINDINGS AND PURPOSE.</DELETED>

<DELETED>    (a) Findings.--The Congress finds that--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) The gas and oil are owned by the Federal 
        Government, the States, and private parties.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (6) Development of these valuable energy resources 
        is of critical importance to the American public.</DELETED>
        <DELETED>    (7) These energy resources provide fuel to heat 
        and light our homes and power our industries.</DELETED>
        <DELETED>    (8) Extraction of these energy resources provides 
        royalties, taxes, and wages that contribute to national, State, 
        and local treasuries and economies.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 3. AMENDMENT TO THE MINERAL LEASING ACT.</DELETED>

<DELETED>    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:</DELETED>

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

<DELETED>    ``(a) Multiple Use.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) have access to conduct exploration 
        activities; and</DELETED>
        <DELETED>    ``(2) conduct such activities in a manner that 
        will avoid undue interference with the other's 
        activities.</DELETED>
<DELETED>    ``(c) Negotiations Concerning Development Priority for 
Certain Operations in the Basin.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Compensation Procedures for Assignment of 
Development Priority.--</DELETED>
        <DELETED>    ``(1) Petition for relief.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) The petition for relief shall 
                include the following:</DELETED>
                        <DELETED>    ``(i) A description and map of the 
                        Federal coal lease, the oil and gas property, 
                        and the common area.</DELETED>
                        <DELETED>    ``(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).</DELETED>
                        <DELETED>    ``(iii) A certified copy of the 
                        notice described in subsection 
                        (c)(1).</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) with the petition for relief 
                        if the Federal coal lessee is the petitioner; 
                        or</DELETED>
                        <DELETED>    ``(ii) within 5 days of the date 
                        of service of the petition for relief if the 
                        Federal coal lessee is the 
                        respondent.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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:</DELETED>
                <DELETED>    ``(A) The court shall determine--
                </DELETED>
                        <DELETED>    ``(i) whether a common area 
                        exists; and -</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(ii) The order issued pursuant to clause 
                (i) shall expire upon the issuance of an order pursuant 
                to paragraph (11)(C).</DELETED>
        <DELETED>    ``(5) Conditions in which court may refrain from 
        issuing order.--</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) no common area exists; 
                        or</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) If the court makes either 
                determination described in subparagraph (A), the court 
                shall issue an order terminating-the 
                proceeding.</DELETED>
        <DELETED>    ``(6) Valuation procedure: appointment of 
        experts.--</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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:</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) The court shall issue an order 
                that--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(A) shall determine whether the Federal 
                coal lease shall be --suspended to accommodate oil or 
                gas production in the common area; and</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(C) shall issue an order that--
                </DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(12) Review of experts' report.--</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(13) Disbursement of payments.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(14) Termination of oil and gas lease 
        suspension.--</DELETED>
                <DELETED>    ``(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)--
                </DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    (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).</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(15) Termination of coal lease suspension.--
        </DELETED>
                <DELETED>    ``(A) If the court issues an order 
                requiring suspension of the Federal coal lease pursuant 
                to paragraph (11)(C)--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(16) Supplemental petition for relief.--
        </DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(iii) Any award of an additional sum of 
                money shall be paid in accordance with paragraph 
                (13).</DELETED>
        <DELETED>    ``(17) Appeal of court orders.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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).</DELETED>
<DELETED>    ``(e) Liability Limitation.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(g) Credit Against Royalties.--</DELETED>
        <DELETED>    ``(1) In general.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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)--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) are leased pursuant to this Act;</DELETED>
        <DELETED>    ``(2) are within common areas; and</DELETED>
        <DELETED>    ``(3) otherwise may be lost or bypassed under 
        agreements entered into, or orders issued, pursuant to this 
        section.''</DELETED>

<DELETED>SEC. 4. EFFECTIVE DATE.</DELETED>

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

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 may be 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 the coal and the gas and oil is 
        occurring in the Powder River Basin.
            (10) In many locations 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, in 
        certain of these locations 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 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 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 should be provided 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 consistent 
        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 
        concerning the sequence of development of those resources in 
        the same location, regardless of who owns the resources;
            (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 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 loss 
        of, or delay in, 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 
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) 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, Department of the Interior.
            ``(2) The term `Subsection (g) Lands' means the area 
        designated as `Subsection (g) Lands' on the map described in 
        paragraph (1).
            ``(3) The term `Secretary' means the Secretary of the 
        Interior.
            ``(4) The term `Federal coal lease' means a lease of 
        Federal coal in the Basin issued pursuant to this Act.
            ``(5) The term `Federal coal lessee' means the holder of a 
        Federal coal lease.
            ``(6) The term `Federal oil and gas lease' means a lease of 
        Federal oil and gas in the Basin issued pursuant to the Act.
            ``(7) The term `oil and gas lease or right to develop' 
        means a Federal oil and gas lease or a lease for or right to 
        develop oil and gas in the Basin provided by a State or private 
        owner of the resources.
            ``(8) The term `non-Federal oil and gas lease or right to 
        develop' means a lease for or right to develop oil and gas in 
        the Basin provided by a State or private owner of the 
        resources.
            ``(9) The term `oil and gas developer' means the holder of 
        an oil or gas lease or right to develop.
            ``(10) The term `oil and gas property' means an area in the 
        Basin which is subject to an oil or gas lease or right to 
        develop held by an oil or gas developer.
            ``(11) The term `common area' means an area in the Basin in 
        which all or a portion of a Federal coal lease (including 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.
            ``(12) The term `approved or proposed mining plan' means a 
        mining plan that is approved by, or has been submitted for the 
        approval of, the Secretary.
            ``(13) 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)).
            ``(14) The term `owners of any interest in the oil and gas 
        property' means persons who own the working interest, lease 
        interest, operating interest, mineral interest, royalty 
        interest, or any other interest in the oil and gas property, 
        and any other persons who might receive compensation for 
        unavoidable fixed expenses under an order concerning the oil 
        and gas property issued pursuant to subsection (e)(10)(E).
            ``(15) 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.
            ``(16) 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 laws, regulations, and lease terms, 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 any 
authority the Secretary possesses to encourage expedited development of 
any oil and gas resources and any coal resource that--
            ``(1) are leased pursuant to this Act;
            ``(2) are within common areas; and
            ``(3) otherwise may be lost or bypassed due to the 
        development of another of the resources.
    ``(d) 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 its Federal coal lease (or a logical mining 
        unit including the Federal coal lease) or its oil and gas 
        property is located in a common area, and, pursuant to an 
        approved or proposed mining plan, mining operations or 
        facilities in support of mining for coal on the Federal coal 
        leases or the logical mining unit will be located within the 
        common area, the Federal coal lessee or the oil and gas 
        developer shall deliver written notice of the determination to 
        the other party and the Secretary no later than 240 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.
    ``(e) Compensation Procedures for Assignment of Development 
Priority.--
            ``(1) Petition for relief.--
                    ``(A) If notice is submitted timely pursuant to 
                subsection (d)(1) and the Federal coal lessee and the 
                oil and gas developer engage in negotiations, but do 
                not reach agreement, pursuant to subsection (d)(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 180 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, and the Secretary with a copy of the petition for 
                relief on the same date upon which the petition is 
                filed with the court pursuant to subparagraph (A).
                    ``(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 and the Secretary any 
                        corrections of, additions to, or deletions from 
                        the list known to the respondent within 10 days 
                        of the date of service of the petition for 
                        relief pursuant to subparagraph (B). 
                        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 and the 
                        Secretary 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 (d)(1).
                            ``(iv) A sworn statement by a senior 
                        officer of the petitioner with authority to 
                        commit the petitioner in any negotiation under 
                        subsection (d)(2) stating, and all documents 
                        demonstrating, that the petitioner negotiated 
                        or attempted to negotiate in good faith with 
                        the respondent a voluntary agreement, pursuant 
                        to subsection (d)(2).
                    ``(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 pursuant to 
                        subparagraph (B) if the Federal coal lessee is 
                        the respondent.
            ``(2) Joinder of parties.--The Secretary 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 may provide to the Secretary a 
        response to the petition within 30 days from the date of filing 
        of the petition for relief pursuant to paragraph (1)(A). The 
        Secretary may require the petitioner and the respondent or 
        respondents to submit such documents and/or provide such 
        testimony as the Secretary deems appropriate within 60 days of 
        such date of filing.
            ``(4) Secretary's initial response to petition.--Within 90 
        days of the date of filing of the petition for relief pursuant 
        to paragraph (1)(A) the Secretary shall take the following 
        actions:
                    ``(A) The Secretary shall determine, with 
                petitioner having the burden of proof--
                            ``(i) whether a common area exists; and
                            ``(ii) whether the approved or proposed 
                        mining plan submitted pursuant to paragraph 
                        (3)(D) 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 
                Secretary shall determine whether the public interest 
                is best realized by delaying or foregoing development 
                of either--
                            ``(I) the oil or gas resource to permit the 
                        mining operations to intersect, or the mine 
                        support facilities to be constructed in, the 
                        common area in accordance with the approved or 
                        proposed mining plan; or
                            ``(II) the coal resource to permit 
                        commencement or continuation of the development 
                        of the oil or gas resource in the common area 
                        after 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.
                    ``(ii) The Secretary shall make the public interest 
                determination described in clause (i) 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 
                resource underlying the common area to which the 
                petition for relief applies.
                    ``(C)(i) If any portion of the resource for which 
                delayed or foregoing development is determined to be in 
                the public interest pursuant to subparagraph (B) is 
                subject to a lease issued pursuant to this Act, the 
                Secretary shall suspend all or any portion of, 
                including any geographical areas of or zone or 
                reservoir subject to, the lease to accommodate 
                development of the other resource in the common area 
                during the period beginning on a date no later than the 
                commencement date referred to in paragraph (1)(A) and 
                provided in the notice submitted pursuant to paragraph 
                (1)(C)(iii) and ending on the date on which an order is 
                issued pursuant to paragraph (10)(E) or paragraph 
                (11)(C).
                    ``(ii) The Secretary may refrain from either making 
                the determination required by subparagraphs (A) and (B) 
                or suspending all or any portion of a lease issued 
                pursuant to this Act as required by clause (i) only if 
                the Secretary determines 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 mine support facilities to be 
                        constructed in, the common area.
                    ``(D) The Secretary shall--
                            ``(i) report the determinations made 
                        pursuant to subparagraphs (A) and (B) or 
                        subparagraph (C)(ii) and any suspension made 
                        pursuant to subparagraph (C)(i), including the 
                        administrative record therefor, with the court 
                        in which the petition for relief is filed 
                        pursuant to paragraph (1)(A); and
                            1``(ii) provide the petitioner and 
                        respondent or respondents with copies of the 
                        report and record.
            ``(5) Court's initial response to petition.--
                    ``(A)(i) The court in which the petition is filed 
                pursuant to paragraph (1)(A) shall have exclusive 
                jurisdiction to receive and review the report of the 
                Secretary required by paragraph (4)(D), and the 
                determinations made and any action taken by the 
                Secretary pursuant to paragraph (4).
                    ``(ii) The petitioner and respondent or respondents 
                shall have 30 days from the date upon which the report 
                of the Secretary is filed with the court pursuant to 
                paragraph (4)(D) in which to file with the court any 
                objection to any determination of the Secretary 
                required by paragraph (4).
                    ``(iii) If any objection is filed pursuant to 
                clause (ii), the court shall, within 60 days of receipt 
                of the report of the Secretary pursuant to paragraph 
                (4)(D), make the determination that is the subject to 
                the objection on the basis of the administrative record 
                filed with the report and in accordance with the 
                applicable requirements or standards of subparagraph 
                (A) or subparagraph (B) of paragraph (4).
                    ``(iv) Any determination made by the court pursuant 
                to clause (iii) shall be an independent judicial 
                determination that is de novo, without regard to the 
                prior determination of the Secretary.
                    ``(v) If no objection is filed pursuant to clause 
                (ii), the determinations of the Secretary required by 
                paragraph (4) shall be final and approved by the court 
                in the order issued pursuant to subparagraph (B) or 
                subparagraph (E).
                    ``(B) Within 90 days of the date of receipt of the 
                report of the Secretary pursuant to paragraph (4)(D), 
                the court, except as provided in subparagraph (E), 
                shall issue an order that--
                            ``(i) suspends all or any part of, 
                        including any geographical area of or reservoir 
                        subject to, any non-Federal oil and gas lease 
                        or right to develop, or any non-Federal 
                        interest in any logical mining unit that 
                        includes the Federal coal lease, in the common 
                        area in accordance with the determination of 
                        the Secretary pursuant to subclause (I) or 
                        subclause (II), respectively, of paragraph 
                        (4)(B)(i) or in accordance with the 
                        determination of the court pursuant to 
                        subparagraph (A)(iii); and
                            ``(ii) if required by a determination of 
                        the court pursuant to subparagraph (A)(iii), 
                        terminates a suspension of a lease issued 
                        pursuant to this Act imposed by the Secretary 
                        pursuant to paragraph (4)(C)(i), or imposes a 
                        suspension of a lease issued pursuant to this 
                        Act, or both, in accordance with the 
                        determination; and
                            ``(iii) if all or any part of the oil and 
                        gas lease or right to develop is suspended 
                        pursuant to paragraph (4)(C)(i) or this 
                        subparagraph, fixes the date upon which the 
                        Federal coal leesee may commence mining 
                        operations or construction of mine support 
                        facilities in the common area, which may be no 
                        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; and
                            ``(iv) if all or any part of the Federal 
                        coal lease and/or any non-Federal interest in 
                        the logical mining unit that includes the 
                        Federal coal lease is suspended pursuant to 
                        paragraph (4)(C)(i) or this subparagraph, 
                        prohibits the mining operations from 
                        intersecting, or the support facilities from 
                        being constructed in, all or a portion of the 
                        common area.
                    ``(C) The order of the court issued pursuant to 
                subparagraph (B) shall expire upon the issuance of an 
                order pursuant to paragraph (10)(E) or paragraph 
                (11)(C).
                    ``(D) The court may refrain from issuing the order 
                required by subparagraph (B), only if--
                            ``(i) the Secretary makes a determination 
                        described in paragraph (4)(C)(ii); or
                            ``(ii) the court, acting on an objection 
                        filed pursuant to subparagraph (A)(ii), 
                        determines that--
                                    ``(I) no common area exists; or
                                    ``(II) the approval or proposed 
                                mining plan submitted pursuant to 
                                paragraph (1)(D) does not provide for 
                                the mining operations to intersect, or 
                                the mine support facilities to be 
                                constructed in, the common area.
                    ``(E) If the Secretary makes a determination 
                described in paragraph (4)(C)(ii) or the court makes a 
                determination described in subparagraph (D)(ii), the 
                court shall issue an order terminating the proceeding 
                under this subsection.
            ``(6) Valuation procedure: appointment of experts.--
                    ``(A) Within 30 days of the date of issuance of an 
                order pursuant to paragraph (5)(B), 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 all or any part of the oil and 
                gas lease or right to develop is suspended, or coal if 
                all or any part of the Federal coal lease and/or any 
                non-Federal interest in the logical mining unit that 
                includes the Federal coal lease is suspended, pursuant 
                to paragraph (4)(C) and/or paragraph (5)(B), and these 
                persons shall agree upon and appoint a third person 
with such expertise. If no agreement is reached on the date of 
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 shall each submit to the panel 
                of experts within 30 days of the date of 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 
                subparagraphs (A) and (D) shall have 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 subparagraphs (A) and (D) 
                shall be available for review by all parties unless an 
                ex parte order is issued by the court.
                    ``(D)(i) 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 under the conditions set forth in clause (ii).
                    ``(ii) The drilling or collection of data or 
                information authorized by clause (i) shall be for the 
                sole purpose of submission of information and data 
                pursuant to this paragraph.
                    ``(iii) The Federal coal lessee shall not produce 
                any coalbed methane as a result of any drilling 
                authorized by clause (i) and shall comply with any 
                Federal or State requirements applicable to such 
                activity.
                    ``(iv) The Federal coal lessee shall submit to the 
                Secretary an exploration plan to conduct any drilling 
                pursuant to clause (i). The Secretary shall approve, 
                approve as modified, or reject the plan, within 15 days 
                of the date of its submission. The Secretary may modify 
                or reject the plan only for good cause fully set forth 
                in writing and provided to the Federal coal lessee. The 
                Federal coal lessee shall adhere to the plan, as 
                approved by the Secretary.
            ``(8) Submission of briefs and hearing.--
                    ``(A) Within 45 days of the date of 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 date of 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 date of 
        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 date of issuance of an order pursuant to 
        paragraph (5)(B), by which, or by any action of the Secretary 
        pursuant to paragraph (4)(C)(i), all or any part of the oil and 
        gas lease or right to develop is suspended, the court shall 
        take the following actions:
                    ``(A)(i) The court shall determine whether, as a 
                result of the order or any action of the Secretary, 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 any 
                remaining 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, whether or not 
                        development of coalbed methane has commenced, 
                        that is due to--
                                    ``(I) delay in development of 
                                economically recoverable resources of 
                                coalbed methane in the common area; and
                                    ``(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 owners of any interest 
                        in the oil and gas property as a consequence of 
                        the suspension: any unavoidable fixed expenses 
                        (including, but not limited to, the expenses of 
                        shutting in production from, maintenance of, 
                        testing of, and 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 lost royalties on 
                        oil or gas not produced by the oil and gas 
                        developer; 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 include any decrease in net 
                income or damages resulting from loss of any oil or gas 
                resources that occurred before the date of the 
                determinations and is caused by mining within or 
                outside of the common area on the Federal coal lease or 
                logical mining unit that is the subject of the common 
                area determination made pursuant to paragraph 
                (4)(A)(i).
                    ``(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 any 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, 
                        in accordance with the determination made 
                        pursuant to subparagraph (A); 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 owners of 
                any interest in more than one oil and gas property.
            ``(11) Court's final response to petition: valuation 
        concerning economically recoverable coal resources lost or 
        delayed, suspension or termination and payment order.--Within 
        210 days of the date of issuance of an order pursuant to 
        paragraph (5)(B) by which, or by any action by the Secretary 
        pursuant to paragraph (4)(C)(i), the Federal coal lease and/or 
        any non-Federal interest in the logical mining unit is 
        suspended, the court--
                    ``(A) shall determine whether, as a result of the 
                order or any action of the Secretary, the Federal coal 
                lease and/or any non-Federal interest in the logical 
                mining unit shall be suspended in whole or in part to 
                further 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 lost royalties on coal not 
                produced by the Federal coal lessee) 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 accordance with the 
                        determination made pursuant to subparagraph 
                        (A), all or any part of the Federal coal lease 
                        and/or any non-Federal interest in the logical 
                        mining unit, 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 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 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 the date 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 (5)(B) and an order to suspend 
                all or part 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 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 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 interest in the oil and gas property, as their interests may 
appear, in accordance with the procedures and deadlines established in 
paragraphs (1) and (6) through (13).
            ``(15) Termination of coal lease suspension.--
                    ``(A) If the court issues an order requiring 
                suspension of all or any part of the Federal coal lease 
                and/or any non-Federal interest in the logical mining 
                unit that includes 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 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 (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 
                        all or any part of the Federal coal lease and/
                        or any non-Federal interest in the logical 
                        mining unit is suspended, terminates the 
                        suspension.
                    ``(B) The court shall issue the order sought under 
                subparagraph (A)(ii) within 30 days of the date of 
                receipt of the petition pursuant to subparagraph 
                (A)(ii).
                    ``(C)(i) If the Federal coal lessee determines 
                that, as a consequence of the order of the court issued 
                pursuant to paragraph (11)(C), further development of 
                all or any part of the Federal coal lease and/or any 
                non-Federal interest in the logical mining unit is 
                impracticable, the Federal coal lessee may petition the 
                court to terminate all or any part of the Federal coal 
                lease and/or any non-Federal interest in the logical 
                mining unit.
                    ``(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/or any non-Federal 
                interest in the logical mining unit 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 paragraphs 
                (1) and (6) through (13).
            ``(16) Supplemental petition for relief.--
                    ``(A) If, 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 and/or any 
                non-Federal interest in the logical mining unit that 
                includes the Federal coal lease and/or increase in the 
                sum of money that was awarded under the order, either 
                the Federal coal lessee or the oil and gas developer 
                may, if necessary after compliance with the 
                requirements of subsection (d), file a supplemental 
                petition for relief with the court to amend the order.
                    ``(B) The requirements of paragraphs (1) and (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 
                and/or any non-Federal interest in the logical mining 
                unit 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 
                (5)(B), paragraph (5)(E), 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).
            ``(18) Suspension term.--
                    ``(A) If all or any part of any lease issued 
                pursuant to this Act is suspended in whole or in part 
                by the Secretary or the court under this subsection--
                            ``(i) the lessee shall not be required to 
                        pay any rental for the lease for the period of 
                        the suspension; and
                            ``(ii) if the lease is a Federal oil or gas 
                        lease and is in the primary term or if the 
                        lease is a Federal coal lease, the term of the 
                        lease shall be extended by the length of the 
                        period of the suspension plus one year; or
                            ``(iii) the lease shall not terminate due 
                        to lack of production for the period of the 
                        suspension plus one year.
                    ``(B) If any non-Federal oil and gas lease or right 
                to develop or any non-Federal interest in a logical 
                mining unit is suspended in whole or in part by the 
                court under this subsection, the court shall establish 
                terms for the suspension comparable to the terms set 
                forth in subparagraph (A).
    ``(f) Liability Limitation.--
            ``(1) Federal coal lessee.--Except as provided in a written 
        agreement reached pursuant to subsection (d)(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 (e), neither the holder of a Federal coal lease 
        subject to the agreement or order nor the United States shall 
        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 that includes 
        the Federal coal lease.
            ``(2) Oil and gas developer.--Except as provided in a 
        written agreement reached pursuant to subsection (d)(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 (e), neither the oil and gas 
        developer of an oil and gas property subject to the agreement 
        or order nor the United States shall be liable to a holder of a 
        Federal coal lease subject to the agreement or order, or any 
        owner of any non-Federal interest in a logical mining unit that 
        includes the Federal coal lease, or the United States 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.
    ``(g) Credit Against Royalties.--
            ``(1) In general.--
                    ``(A) Whenever a holder of a Federal coal lease is 
                required by a written agreement reached pursuant to 
                subsection (d)(2) and approved by the Bureau of Land 
                Management or reached prior to the date of enactment of 
                this section and approved 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 
                (e), to pay an amount for suspension of all or part of, 
                or termination of, a Federal oil and gas lease for 
                coalbed methane located within the Subsection (g) 
                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 lease of Federal 
                coal issued under this Act to such holder or any 
                affiliate thereof.
                    ``(B) Whenever a holder of a Federal oil and gas 
                lease is required by a written agreement reached 
                pursuant to subsection (d)(2) and approved by the 
                Bureau of Land Management or reached prior to the date 
                of enactment of this section and approved 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)(ii), or paragraph (16)(C)(ii) of 
                subsection (e), to pay an amount for suspension or 
                termination of all or part of a Federal coal lease 
                located within the Subsection (g) 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 lease of Federal oil and gas 
                issued under this Act to such holder or any affiliate 
                thereof.
            ``(2) Treatment of royalties to states.--The Secretary 
        shall pay to the State in which the Federal coal lease or 
        Federal 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) 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) 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)(11), within or outside of the Powder River Basin, as 
defined in subsection (a)(1).''.

SEC. 4. EFFECTIVE DATE.

    This Act shall be effective upon the date of its enactment.
            Amend the title so as to read: ``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.''.




                                                       Calendar No. 939

106th CONGRESS

  2d Session

                                S. 1950

                          [Report No. 106-490]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

            October 5 (legislative day, September 22), 2000

        Reported with an amendment and an amendment to the title