[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1710 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1710

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 2001

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

_______________________________________________________________________

                                 A BILL


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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Powder River Basin Resource 
Development Act of 2001''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) The Powder River Basin in Wyoming and Montana is one of 
        the world's richest energy resource regions, possessing the 
        largest reserves of coal in the United States and significant 
        deposits of oil and natural gas, including coalbed methane.
            (2) The coal is predominantly federally owned, either as 
        part of the public lands or reserved from public lands that 
        were sold under homestead laws enacted in 1909, 1910, and 1916, 
        and 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 may be leased to oil and gas 
        producers by the Bureau of Land Management under the Mineral 
        Leasing Act.
            (5) The privately owned gas and oil were conveyed with the 
        public lands purchased under the three homestead laws and may 
        have been sold or leased to oil and gas producers by the 
        successors to those original purchasers.
            (6) Development of these valuable energy resources is of 
        critical importance to the American public.
            (7) These energy resources provide fuel to heat and light 
        our homes and power our industries.
            (8) Extraction of these energy resources provides 
        royalties, taxes, and wages that contribute to national, State, 
        and local treasuries and economies.
            (9) Development of both the coal and the gas and oil is 
        occurring in the Powder River Basin.
            (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 these resources can 
        result in loss of another, either by making recovery impossible 
        in the case of coalbed methane or uneconomic in the case of 
        coal, oil, or deep gas.
            (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) Federal law should 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) 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. DEFINITIONS.

    As used in this Act:
            (1) Approved or proposed mining plan.--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.
            (2) Coalbed methane.--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)).
            (3) Common area.--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.
            (4) Develop or development.--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.
            (5) Federal coal lease.--The term ``Federal coal lease'' 
        means a lease of Federal coal in the Basin issued pursuant to 
        the Mineral Leasing Act.
            (6) Federal coal lessee.--The term ``Federal coal lessee'' 
        means the holder of a Federal coal lease.
            (7) Federal oil and gas lease.--The term ``Federal oil and 
        gas lease'' means a lease of Federal oil and gas in the Basin 
        issued pursuant to the Mineral Leasing Act.
            (8) Mineral leasing act.--The term ``Mineral Leasing Act'' 
        means the Act of February 25, 1920 (41 Stat. 437), as amended 
        (30 U.S.C. 181 et seq.).
            (9) Non-federal oil and gas lease or right to develop.--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.
            (10) Oil and gas developer.--The term ``oil and gas 
        developer'' means the holder of an oil and gas lease or right 
        to develop.
            (11) Oil and gas lease or right to develop.--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.
            (12) Oil and gas property.--The term ``oil and gas 
        property'' means an area in the Basin which is subject to an 
        oil and gas lease or right to develop held by an oil and gas 
        developer.
            (13) Owners of any interest in the oil and gas property.--
        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 section 11(d).
            (14) Owners of any non-federal interest in the oil and gas 
        property.--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.
            (15) Powder river basin or basin.--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.
            (16) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (17) Section 21 lands.--The term ``Section 21 Lands'' means 
        the area designated as Section 21 Lands on the map described in 
        paragraph (1).

SEC. 4. 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.

 SEC. 5. MINERAL CONSERVATION.

    The Secretary shall employ any authority the Secretary possesses to 
encourage expedited development of any oil or gas resource and any coal 
resource that--
            (1) are leased pursuant to the Mineral Leasing Act;
            (2) are within common areas; and
            (3) otherwise may be lost or bypassed due to the 
        development of another of the resources.

SEC. 6. NEGOTIATIONS CONCERNING DEVELOPMENT PRIORITY FOR CERTAIN 
              OPERATIONS IN THE BASIN.

    (a) 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 lease 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.
    (b) Obligation To Negotiate.--Promptly after providing the notice 
referred to in subsection (a), 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.

SEC. 7. PETITION FOR RELIEF.

    (a) Submission of Petition.--
            (1) If notice is submitted timely pursuant to section 6(a) 
        and the Federal coal lessee and the oil and gas developer 
        engage in negotiations, but do not reach agreement, pursuant to 
        section 6(b), the Federal coal lessee or the oil and gas 
        developer may file a petition for relief as described in 
        paragraph (3) 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.
            (2) 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 
        paragraph (1).
            (3) The petition for relief shall include the following:
                    (A) A description and map of the Federal coal 
                lease, oil and gas property, and the common area.
                    (B) 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 paragraph (2). 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 section 11(d) or section 12(d).
                    (C) A certified copy of the notice described in 
                section 6(a).
                    (D) A sworn statement by a senior officer of the 
                petitioner with authority to commit the petitioner in 
                any negotiation under section 6(b) stating, and all 
                documents demonstrating, that the petitioner negotiated 
                or attempted to negotiate in good faith with the 
                respondent a voluntary agreement, pursuant to section 
                6(b).
            (4) 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--
                    (A) with the petition for relief if the Federal 
                coal lessee is the petitioner; or
                    (B) within 5 days of the date of service of the 
                petition for relief pursuant to paragraph (2) if the 
                Federal coal lessee is the respondent.
    (b) 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 subsection 
(a)(3)(B) shall be joined in the proceedings established pursuant to 
this Act.
    (c) 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 subsection (a)(1). 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.

SEC. 8. SECRETARY'S RESPONSE TO PETITION.

    (a) In General.--Within 90 days of the date of filing of the 
petition for relief pursuant to section 7(a)(1) the Secretary shall 
take the actions required by this section.
    (b) Initial Determinations.--The Secretary shall determine, with 
petitioner having the burden of proof--
            (1) whether a common area exists; and
            (2) whether the approved or proposed mining plan submitted 
        pursuant to section 7(a)(4) provides for the mining operations 
        to intersect, or the mine support facilities to be constructed 
        in, any portion of the common area.
    (c) Public Interest Determination.--
            (1) If existence of the common area and intersection of, or 
        construction in, the common area are determined pursuant to 
        subsection (b), the Secretary shall determine whether the 
        public interest is best realized by delaying or forgoing 
        development of either--
                    (A) 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
                    (B) 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.
            (2) The Secretary shall make the public interest 
        determination described in paragraph (1) 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.
    (d) Lease Suspension.--If any portion of the resource for which 
delayed or forgone development is determined to be in the public 
interest pursuant to subsection (c) is subject to a lease issued 
pursuant to the Mineral Leasing Act, the Secretary shall suspend all or 
any portion of, including any geographical area 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 section 7(a)(1) and provided in 
the notice submitted pursuant to section 7(a)(3)(C) and ending on the 
date on which an order is issued pursuant to section 11(d) or section 
12(d).
    (e) Exceptions.--The Secretary may refrain from either making the 
determinations required by subsections (b) and (c) or suspending all or 
any portion of a lease issued pursuant to the Mineral Leasing Act as 
required by subsection (d) if the Secretary determines that--
            (1) no common area exists; or
            (2) 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.
    (f) Secretarial Report.--The Secretary shall--
            (1) not delegate the determinations made pursuant to this 
        section;
            (2) report the determinations made pursuant to subsections 
        (b) and (c) or subsection (e) and any suspension made pursuant 
        to subsection (d), including the administrative record 
        therefor, with the court in which the petition for relief is 
        filed pursuant to section 7(a)(1); and
            (3) provide the petitioner and respondent or respondents 
        with copies of the report and record.

SEC. 9. COURT'S INITIAL RESPONSE TO PETITION.

    (a) Receipt of Secretarial Report.--The court in which the petition 
is filed pursuant to section 7(a)(1) shall have exclusive jurisdiction 
to receive and review the report of the Secretary required by section 
8(f), and the determinations made and any action taken by the Secretary 
pursuant to section 8.
    (b) Parties' Objections to Report.--
            (1) 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 section 8(f) in which to file 
        with the court any objection to any determination of the 
        Secretary required by section 8.
            (2) If any objection is filed pursuant to paragraph (1), 
        the court shall, within 60 days of receipt of the report of the 
        Secretary pursuant to section 8(f), make the determination that 
        is the subject of the objection on the basis of the 
        administrative record filed with the report and in accordance 
        with the applicable requirements or standards of subsection (b) 
        or subsection (c) of section 8.
            (3) Any determination made by the court pursuant to 
        paragraph (3) shall be an independent judicial determination 
        that is de novo, without regard to the prior determination of 
        the Secretary.
            (4) If no objection is filed pursuant to paragraph (1), the 
        determinations of the Secretary required by section 8 shall be 
        final and approved by the court in the order issued pursuant to 
        subsection (c) or subsection (f).
    (c) Court Order.--Within 90 days of the date of receipt of the 
report of the Secretary pursuant to section 8(f), the court, except as 
provided in subsection (f), shall issue an order that--
            (1) 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 subparagraph (A) or subparagraph (B), 
        respectively, of section 8(c)(1) or in accordance with the 
        determination of the court pursuant to subsection (b)(2);
            (2) if required by a determination of the court pursuant to 
        subsection (b)(2), terminates a suspension of a lease issued 
        pursuant to the Mineral Leasing Act imposed by the Secretary 
        pursuant to section 8(d), or imposes a suspension of a lease 
        issued pursuant to the Mineral Leasing Act, or both, in 
        accordance with the determination;
            (3) if all or any part of the oil and gas lease or right to 
        develop is suspended pursuant to section 8(d) or this 
        subsection, fixes the date upon which the Federal coal lessee 
        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 section 7(a)(1) and provided 
        in the notice submitted pursuant to section 7(a)(3)(C), except 
        for good cause shown; and
            (4) 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 section 8(d) or 
        this subsection, prohibits the mining operations from 
        intersecting, or the support facilities from being constructed 
        in, all or a portion of the common area.
    (d) Expiration of Order.--The order of the court issued pursuant to 
subsection (c) shall expire upon the issuance of an order pursuant to 
section 11(d), or section 12(d).
    (e) Exceptions.--The court may refrain from issuing the order 
required by subsection (c), only if--
            (1) the Secretary makes a determination described in 
        section 8(e); or
            (2) the court, acting on an objection filed pursuant to 
        subsection (b), concurs in a determination made by the 
        Secretary pursuant to section 8(e), or determines that--
                    (A) no common area exists; or
                    (B) the approved or proposed mining plan submitted 
                pursuant to section 7(a)(4) does not provide for the 
                mining operations to intersect, or the mine support 
                facilities to be constructed in, the common area.
    (f) Termination of Proceeding.--If the Secretary makes a 
determination described in section 8(e) or the court makes a 
determination described in subsection (e)(2), the court shall issue an 
order terminating the proceeding under this Act.

SEC. 10. APPOINTMENT OF EXPERTS.

    (a) Appointment Procedure.--Within 30 days of the date of issuance 
of an order pursuant to section 9(c), to assist the court in making the 
determinations pursuant to section 11 or section 12, 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 section 8(d) and/or 
section 9(c), 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) Compensation.--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.
    (c) Information and Data.--
            (1) 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 
        subsection (a) all information and data in the possession of 
        such party that is pertinent to the determinations to be made 
        pursuant to section 11 or section 12, 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.
            (2) Except as provided in paragraph (3), the court shall 
        ensure that any information and data submitted to the panel of 
        experts pursuant to paragraphs (1) and (4) 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.
            (3) All information and data submitted to the panel of 
        experts pursuant to paragraphs (1) and (4) shall be available 
        for review by all parties unless an ex parte order is issued by 
        the court.
            (4)(A) 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 subparagraph 
        (B).
            (B) The drilling or collection of data or information 
        authorized by subparagraph (A) shall be for the sole purpose of 
        submission of information and data pursuant to this paragraph.
            (C) The Federal coal lessee shall not produce any coalbed 
        methane as a result of any drilling authorized by subparagraph 
        (A) and shall comply with any Federal or State requirements 
        applicable to such activity.
            (D) The Federal coal lessee shall submit to the Secretary 
        an exploration plan to conduct any drilling pursuant to 
        subparagraph (A). 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.
    (d) Submission of Briefs and Hearing.--
            (1) Within 45 days of the date of appointment of the panel 
        of experts pursuant to subsection (a), all parties may submit 
        briefs concerning the determinations to be made pursuant to 
        section 11 or section 12.
            (2) Within 60 days of the date of appointment of the panel 
        of experts pursuant to subsection (a), 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 section 11 or section 12.
    (e) Experts' Report.--Within 120 days of the date of appointment of 
the panel of experts pursuant to subsection (a), 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 section 11 
or section 12.

SEC. 11. COURT'S FINAL RESPONSE TO PETITION: VALUATION CONCERNING 
              ECONOMICALLY RECOVERABLE OIL OR GAS RESOURCES LOST OR 
              DELAYED, SUSPENSION OR TERMINATION, AND PAYMENT ORDER.

    (a) In General.--Within 210 days of the date of issuance of an 
order pursuant to section 9(c), by which, or by any action of the 
Secretary pursuant to section 8(d), all or any part of the oil and gas 
lease or right to develop is suspended, the court shall take the 
actions required by this section.
    (b) Suspension or Termination Determination.--
            (1) 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.
            (2) Any determination to suspend pursuant to paragraph (1) 
        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.
            (3) Any determination to terminate pursuant to paragraph 
        (1) shall be made only if the court finds that the economically 
        recoverable oil and gas resources subject to compensation 
        pursuant to subsection (d) 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.
    (c) Compensation Determination.--
            (1) If the court makes a determination to suspend pursuant 
        to subsection (b), the court shall determine--
                    (A) 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;
                    (B) 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
                    (C) 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. If the court determines that the 
                unavoidable fixed expenses to achieve post-suspension 
                recovery of all or certain economically recoverable 
                resources of oil or gas in the common area will exceed 
                the net income to be derived from the resources, the 
                court shall determine the amount of the net income and 
                lost royalties in lieu of the unavoidable fixed 
                expenses.
            (2) The determinations made pursuant to paragraph (1) 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 section 8(b)(1) or section 
        9(b)(2).
            (3) If the court makes a determination to terminate 
        pursuant to subsection (b), 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 paragraph (1).
            (4) In determining the amount of net income that will not 
        be realized pursuant to paragraph (1) or paragraph (3) and the 
        sum of money to be awarded pursuant to subsection (d), the 
        court shall ensure to the best of its ability that the Federal 
        coal lessee is not required to pay for the same gas or oil 
        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.
    (d) Court Order.--The court shall issue an order that--
            (1) 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 subsection 
        (b); and
            (2) 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 subsection (c).

SEC. 12. COURT'S FINAL RESPONSE TO PETITION: VALUATION CONCERNING 
              ECONOMICALLY RECOVERABLE COAL RESOURCES LOST OR DELAYED, 
              SUSPENSION OR TERMINATION AND PAYMENT ORDER.

    (a) In General.--Within 210 days of the date of issuance of an 
order pursuant to section 9(c) by which, or by any action by the 
Secretary pursuant to section 8(d), the Federal coal lease and/or any 
non-Federal interest in the logical mining unit is suspended, the court 
shall take the actions required by this section.
    (b) Suspension Determination.--The court 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.
    (c) Compensation Determination.--If the court makes a determination 
to suspend pursuant to subsection (b), the court 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.
    (d) Court Order.--The court shall issue an order that--
            (1) suspends, in accordance with the determination made 
        pursuant to subsection (b), 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
            (2) 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 subsection (c).

SEC. 13. REVIEW OF EXPERTS' REPORT AND HEARING.

    (a) The court shall make the determinations required by section 11 
or section 12 after reviewing the report of the panel of experts 
submitted pursuant to section 10(e) and the hearing required by 
subsection (b).
    (b) After submission of the report of the panel of experts pursuant 
to section 10(e) and prior to making the determinations required by 
section 11 or section 12, 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.

SEC. 14. DISBURSEMENT OF PAYMENTS.

    (a) Payment to Oil and Gas Developer.--
            (1) At the election of the oil and gas developer, the sum 
        of money awarded by the court pursuant to section 11(d)(2) 
        shall be--
                    (A) paid in full within 60 days of the date of 
                issuance of the order pursuant to section 11(d); or
                    (B) 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 paragraph (2) 
                and subsection (c).
            (2) The Federal coal lessee shall make the payments 
        required by paragraph (1)(B) 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) Payment to Federal Coal Lessee.--
            (1) At the election of the Federal coal lessee, the sum of 
        money awarded by the court pursuant to section 12(d)(2) shall 
        be--
                    (A) paid in full within 60 days of the date of 
                issuance of the order pursuant to section 12(d); or
                    (B) 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 paragraph (2) and subsection (c).
            (2) The oil and gas developer shall make the payments 
        required by paragraph (1)(B) 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) Final Payment.--If the mining or production necessary to make 
full payment of the sum of money awarded by the court in accordance 
with subsection (a)(1)(B) or subsection (b)(1)(B) does not occur within 
5 years of the date of issuance of the court order pursuant to section 
11(d) or section 12(d), the unpaid balance shall be paid within 60 days 
thereafter.

 SEC. 15. TERMINATION OF OIL AND GAS LEASE SUSPENSION.

    (a) Notification of Court.--If the court issues an order to suspend 
all or any part of the oil and gas lease or right to develop pursuant 
to section 11(d)--
            (1) 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 section 11(d) is no 
        longer required for mining operations or support facilities; 
        and
            (2) within 120 days of the date of receipt by the court of 
        the notification pursuant to paragraph (1) or within 60 days 
        prior to the date on which the period established by the court 
        in the order issued pursuant to section 11(d) 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 developer may resume operations within the 
        portion of the common area subject to the order issued pursuant 
        to section 11(d).
    (b) Court Order To Terminate Suspension of Lease or Right To 
Develop.--The court shall issue the order sought under subsection 
(a)(2) within 30 days of the date of receipt of the petition pursuant 
to subsection (a)(2).
    (c) Termination of Lease or Right To Develop.--
            (1) If the oil and gas developer determines that, as a 
        consequence of the order of the court issued pursuant to 
        section 9(c) and an order to suspend all or any part of the oil 
        and gas lease or right to develop pursuant to section 11(d), 
        the conditions described in section 11(b)(3) exist, the oil and 
        gas developer may petition the court to terminate the oil and 
        gas lease or right to develop.
            (2) The petition referred to in paragraph (1) may be filed 
        any time after issuance of the order of the court pursuant to 
        section 11(d) but not later than 120 days after the date of 
        receipt by the court of the notification pursuant to subsection 
        (a)(1).
            (3) Upon receipt of a petition pursuant to paragraph (1), 
        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 and 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 
        section 7(a) and sections 10 through 14.

 SEC. 16. TERMINATION OF COAL LEASE SUSPENSION.

    (a) Notification of Court.--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 section 12(d)--
            (1) 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 section 12(d) is no 
        longer required for gas or oil production from such portion; 
        and
            (2) within 120 days of the date of receipt by the court of 
        the notification pursuant to paragraph (1) or within 60 days 
        prior to the date on which the period established by the court 
        in the order issued pursuant to section 12(d) 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 section 12(d) 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) Court Order To Terminate Lease Suspension.--The court shall 
issue the order sought under subsection (a)(2) within 30 days of the 
date of receipt of the petition pursuant to subsection (a)(2).
    (c) Termination of Lease.--
            (1) If the Federal coal lessee determines that, as a 
        consequence of the order of the court issued pursuant to 
        section 12(d), 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.
            (2) The petition referred to in paragraph (1) may be filed 
        any time after issuance of the order of the court pursuant to 
        section 12(d) but not later than 120 days after the date of 
        receipt by the court of the notification pursuant to subsection 
        (a)(1).
            (3) Upon receipt of a petition pursuant to paragraph (1), 
        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 section 7(a) and sections 10 through 14.

 SEC. 17. SUPPLEMENTAL PETITION FOR RELIEF.

    (a) Petition Submittal.--
            (1) If, at any time after the issuance of an order pursuant 
        to section 11(d) or section 12(d), 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 an 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 section 6, file a supplemental 
        petition for relief with the court to amend the order.
            (2) The requirements of section 7(a) and sections 8 through 
        14 shall apply to the supplemental petition submitted pursuant 
        to paragraph (1).
    (b) Court Order.--
            (1) Upon completion of the process required by subsection 
        (a)(2), 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, section 11 or 
        section 12.
            (2) The court shall issue any order resulting from the 
        determinations made pursuant to paragraph (1) within 90 days of 
        the date of filing of the supplemental petition for relief.
            (3) Any award of an additional sum of money shall be paid 
        in accordance with section 14.

 SEC. 18. APPEAL OF COURT ORDERS.

    (a) Nonappealable Orders.--Any order issued pursuant to section 
9(c), section 9(f), section 15(b), or section 16(b) is final and may 
not be appealed.
    (b) Appealable Orders.--Any order issued pursuant to section 11(d), 
section 12(d), section 15(c)(3), section 16(c)(3), or section 17(b)(2) 
may be appealed, but the appeal, and any disposition thereof, may not 
disturb any order referred to in subsection (a).

SEC. 19. SUSPENSION TERMS.

    (a) Federal Lease Suspension Terms.--If all or any part of any 
lease issued pursuant to the Mineral Leasing Act is suspended in whole 
or in part by the Secretary or the court under this Act--
            (1) the lessee shall not be required to pay any rental for 
        the lease for the period of the suspension; and
            (2) 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
            (3) the lease shall not terminate due to lack of production 
        for the period of the suspension plus one year.
    (b) Other.--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 Act, the court 
shall establish terms for the suspension comparable to the terms set 
forth in subsection (a).

 SEC. 20. LIABILITY LIMITATION.

    (a) Federal Coal Lessee.--Except as provided in a written agreement 
reached pursuant to section 6(b) or reached on or after September 1, 
1999, and before the date of enactment of this Act, or as provided by 
an order of the court pursuant to this Act, 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.
    (b) Oil and Gas Developer.--Except as provided in a written 
agreement reached pursuant to section 6(b) or reached on or after 
September 1, 1999, and before the date of enactment of this Act, or as 
provided by an order of the court pursuant to this Act, 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.

 SEC. 21. CREDIT AGAINST ROYALTIES.

    (a) In General.--
            (1) Whenever a holder of a Federal coal lease is required 
        by a written agreement reached pursuant to section 6(b) and 
        approved by the Bureau of Land Management or reached prior to 
        the date of enactment of this Act and approved by the Bureau of 
        Land Management on or after September 1, 1999, or by a court 
        order issued pursuant to section 11(d), section 15(c)(3), or 
        section 17(b)(2), 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 Section 21 Lands, the amount 
        so paid shall be credited against any royalties on production 
        required by section 7(a) or any other provision of the Mineral 
        Leasing Act from any lease of Federal coal issued under the 
        Mineral Leasing Act to such holder or any affiliate thereof.
            (2) Whenever a holder of a Federal oil and gas lease is 
        required by a written agreement reached pursuant to section 
        6(b) and approved by the Bureau of Land Management or reached 
        prior to the date of enactment of this Act and approved by the 
        Bureau of Land Management on or after September 1, 1999, or by 
        a court order issued pursuant to section 12(d), section 
        16(c)(3), or section 17(b)(2), to pay an amount for suspension 
        or termination of all or part of a Federal coal lease located 
        within the Section 21 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 the Mineral Leasing Act from any lease of 
        Federal oil and gas issued under the Mineral Leasing Act to 
        such holder or any affiliate thereof.
    (b) 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 subsection (a)(1) or subsection (a)(2), respectively, is 
located 50 percent of the amount of any credit against royalties 
provided under subsection (a)(1) or subsection (a)(2), respectively--
            (1) in the same manner as if the credit against royalties 
        had been paid in money as royalties and distributed under 
        section 35(a) of the Mineral Leasing Act; and
            (2) 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 
        the Mineral Leasing Act.

SEC. 22. DENIAL OF USE AS PRECEDENT.

    Nothing in this Act shall be applicable to any lease under the 
Mineral Leasing 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 section 3(13), 
within or outside of the Powder River Basin, as defined in section 
3(1).

SEC. 23. EFFECTIVE DATE.

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