[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2952 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2952

  To ensure the orderly development of coal, coalbed methane, natural 
gas, and oil within a designated Dispute Resolution Area in the Powder 
             River Basin, Wyoming, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 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 within a designated Dispute Resolution Area in the Powder 
             River Basin, Wyoming, 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''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Coalbed methane.--The term ``coalbed methane'' has the 
        meaning given that term in section 1339(p)(2) of the Energy 
        Policy Act of 1992 (42 U.S.C. 13368(p)(2)).
            (2) 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 lease or right to develop.
            (3) Federal coal lease; federal oil and gas lease.--The 
        terms ``Federal coal lease'' and ``Federal oil and gas lease'' 
        mean a lease in the Basin issued pursuant to the Mineral 
        Leasing Act (30 U.S.C. 181 et seq.) or the Mineral Leasing Act 
        for Acquired Lands (30 U.S.C. 351 et seq.).
            (4) Federal coal lessee.--The term ``Federal coal lessee'' 
        means the holder of a Federal coal lease.
            (5) 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.
            (6) Oil and gas developer.--The term ``oil and gas 
        developer'' means the holder of an oil and gas lease or right 
        to develop.
            (7) 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 in the Basin or non-Federal oil and gas lease or right to 
        develop in the Basin.
            (8) Owners of any interest in the oil and gas lease or 
        right to develop.--The term ``owners of any interest in the oil 
        and gas lease or right to develop'' means persons who own the 
        working interest, lease interest, operating interest, mineral 
        interest, royalty interest, or any other interest in the oil 
        and gas lease or right to develop, and any other persons who 
        might receive compensation for unavoidable fixed expenses under 
        an order concerning the oil and gas lease or right to develop 
        issued pursuant to section 9(d).
            (9) Power river basin; basin.--The term ``Powder River 
        Basin'' or ``Basin'' means the area in the State of Wyoming 
        designated as the ``Dispute Resolution Area'' on maps entitled 
        ``Powder River Basin, Dispute Resolution Area'', dated 
        September 10, 2001, and on file in the Wyoming State Office of 
        the Bureau of Land Management.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. 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, 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. 4. 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 lease or right to develop is located in a 
common area, and, pursuant to a mining plan approved by, or submitted 
for the approval of, the Secretary, 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 before 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 that 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. 5. PETITION FOR RELIEF.

    (a) Submission of Petition.--
            (1) In general.--If notice is submitted timely pursuant to 
        section 4(a) and the Federal coal lessee and the oil and gas 
        developer seek to engage in negotiations, but fail to reach 
        agreement, pursuant to section 4(b), the Federal coal lessee or 
        the oil and gas developer may file a petition for relief in the 
        United States district court for the district of Wyoming and 
        serve the other party on any date which is not less than 180 
        days before 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) Information requirements.--The Secretary, by 
        regulation, shall establish the requirements for the 
        information to be submitted with the petition.
    (b) Joinder of Parties.--All owners of any interest in the oil and 
gas lease or right to develop and in the Federal coal lease or logical 
mining unit, including the Secretary, identified by the petitioner, the 
Secretary, or themselves shall be joined in the proceedings established 
pursuant to this Act. Failure to timely join a party shall not extend 
deadlines imposed by this Act, but the court shall take all necessary 
steps to insure that no party is prejudiced by late joinder.
    (c) Parties' Response to Petition.--The non-Federal respondent or 
respondents may provide to the Secretary a response to the petition 
within 30 days after the date of filing of the petition for relief 
pursuant to subsection (a)(1). The Secretary may require the petitioner 
and the non-Federal respondent or respondents to submit such documents 
or provide such testimony, or both, as the Secretary deems appropriate 
within 60 days of such date of filing.

SEC. 6. SECRETARY'S RESPONSE TO PETITION.

    (a) In General.--Within 90 days after the date of filing of the 
petition for relief pursuant to section 5(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 provides 
        for mining operations to occur, or mine support facilities to 
        be constructed, in any portion of the common area.
    (c) Lease Suspension.--If the Secretary makes affirmative 
determinations pursuant to paragraphs (1) and (2) of subsection (b), 
the Secretary shall suspend all or any portion of any Federal oil and 
gas lease, including the application of such a lease to any 
geographical area or zone or reservoir, to accommodate development of 
the coal resource in the common area during the period beginning on a 
date no later than the commencement date referred to in section 5(a)(1) 
and ending on the effective date of an order issued pursuant to section 
9(d).
    (d) Secretarial Report.--The Secretary shall--
            (1) not delegate the making of determinations pursuant to 
        this section;
            (2) report the determinations made pursuant to this section 
        and any suspension made pursuant to subsection (c), including 
        the administrative record therefor, to the court in which the 
        petition for relief is filed pursuant to section 5(a)(1); and
            (3) provide the petitioner and respondents with copies of 
        the report and record.

SEC. 7. COURT'S INITIAL RESPONSE TO PETITION.

    (a) Receipt of Secretarial Report.--The court in which the petition 
is filed pursuant to section 5(a)(1) shall have exclusive jurisdiction 
to receive and review the report of the Secretary required by section 
6(d), and the determinations made and any action taken by the Secretary 
pursuant to section 6.
    (b) Parties' Objections to Report.--
            (1) Deadline for filing.--The petitioner and respondents 
        shall have 30 days after the date on which the report of the 
        Secretary is filed with the court pursuant to section 6(d) in 
        which to file with the court any objection to any determination 
        of the Secretary required by section 6.
            (2) Determination by court.--If any objection is filed 
        pursuant to paragraph (1), the court shall, within 60 days 
        after receipt of the report of the Secretary pursuant to 
        section 6(d), 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 
        of section 6.
            (3) Approval of secretary's determination.--If no objection 
        is filed pursuant to paragraph (1), the determinations of the 
        Secretary required by section 6 shall be final and approved by 
        the court in the order issued pursuant to subsection (c) or 
        subsection (d).
    (c) Court Order.--Within 90 days after the date of receipt of the 
report of the Secretary pursuant to section 6(d), the court, except as 
provided in subsection (d), shall issue an order, to expire on the 
effective date of an order issued pursuant to section 9(d), that--
            (1) suspends all or any part of any non-Federal oil and gas 
        lease or right to develop, including the application of such a 
        lease or right to any geographical area or reservoir, in the 
        common area in accordance with the determination of the 
        Secretary pursuant to section 6 or in accordance with the 
        determination of the court pursuant to subsection (b)(2) of 
        this section; and
            (2) if required by a determination of the court pursuant to 
        subsection (b)(2), terminates a Federal oil and gas lease 
suspension imposed by the Secretary pursuant to section 6, or imposes a 
suspension of a Federal oil and gas lease, or both, in accordance with 
the determination; and
            (3) 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 5(a)(1).
    (d) Termination of Proceeding.--If the Secretary makes a negative 
determination pursuant to section 6(b), or if the court makes a 
negative determination pursuant to an objection under subsection (b)(2) 
of this section to affirmative determinations of the Secretary under 
section (6)(b), the court shall issue an order terminating the 
proceeding under this Act.

SEC. 8. EXPERTS' APPOINTMENT AND REPORT; COURT REVIEW AND HEARING.

    (a) Appointment Procedure.--Within 30 days after the date of 
issuance of an order pursuant to section 7(c), to assist the court in 
making the determinations pursuant to section 9--
            (1) 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; and
            (2)(A) persons appointed under paragraph (1) shall agree 
        upon and appoint a third person with such expertise; or
            (B) if no agreement is reached on a third person by the end 
        of such period, the court shall appoint such person.
    (b) Compensation.--The Federal coal lessee and the oil and gas 
developer shall each be responsible for payment of one-half of the 
compensation for and costs of the experts in the performance of their 
duties under this Act.
    (c) Information and Data.--
            (1) Requirement.--The Federal coal lessee, the oil and gas 
        developer, and the Secretary--
                    (A) shall each submit to the experts, within 30 
                days after the date of completion of their appointment 
                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 9; and
                    (B) shall each submit to the experts thereafter any 
                additional pertinent information and data in the 
                possession of such party that the experts request, in 
                writing, from such party.
            (2) Confidentiality.--Except as provided in paragraph (3), 
        the court shall ensure that any information and data submitted 
        to the experts pursuant to paragraph (1) shall have the 
        protection against disclosure that is applicable to them by law 
        and the Federal rules of civil procedure and evidence.
            (3) Availability to parties.--All information and data 
        submitted to the experts pursuant to paragraph (1) shall be 
        available for review by all parties unless otherwise ordered by 
        the court.
    (d) Submission of Briefs and Hearing.--
            (1) Briefs.--Within 45 days after the date of completion of 
        appointment of the experts pursuant to subsection (a), all 
        parties may submit to the court briefs concerning the 
        determinations to be made pursuant to section 9.
            (2) Testimony.--Within 60 days after the date of completion 
        of appointment of the experts pursuant to subsection (a), the 
        experts 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 9.
    (e) Experts' Report.--Within 120 days after the date of completion 
of appointment of the experts pursuant to subsection (a), the experts 
shall submit to the court a written report providing in detail their 
recommendations on the determinations to be made pursuant to section 9.
    (f) Review of Experts' Report.--The court shall make the 
determinations required by section 9 after reviewing the report of the 
experts submitted pursuant to subsection (e) and after holding a 
hearing in which the parties to the proceeding shall have the 
opportunity to examine the experts and provide to the court evidence or 
arguments to support or contravene the recommendations of the report.

SEC. 9. 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 after the date of issuance of an 
order pursuant to section 7(c), the court shall take the actions 
required by this section.
    (b) Suspension or Termination Determination.--
            (1) Determination.--The court shall determine that, as a 
        result of the order or any action of the Secretary, all or any 
        part of the oil and gas lease or right to develop, or the 
        application of such lease or right to any geographical area or 
        zone or reservoir, should be--
                    (A) suspended during any remaining period in which 
                mining operations or support facilities exist in the 
                common area; or
                    (B) terminated.
            (2) Terms of suspension.--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 location 
        within the common area that is subject to the suspension or 
        particular phase of the suspension.
            (3) Conditions for termination.--Any determination to 
        terminate pursuant to paragraph (1) shall be made only if the 
        court finds that--
                    (A) the economically recoverable oil and gas 
                resources subject to compensation pursuant to 
                subsection (c) would be entirely lost or rendered 
                impracticable to produce as a consequence of the mining 
                operations in the common area; and
                    (B) such resources constitute all of the 
                economically recoverable resources subject to the oil 
                and gas lease or right to develop.
    (c) Compensation Determination.--
            (1) Determination for suspension.--If the court makes a 
        determination to suspend pursuant to subsection (b), the court 
        shall determine the following:
                    (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, due to--
                            (i) delay in development of economically 
                        recoverable resources of coalbed methane in the 
                        common area;
                            (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 subject to the oil 
                        and gas lease and right to develop 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.
                    (C) Any of the following damages that will be 
                incurred by the owners of any interest in the oil and 
                gas lease or right to develop as a consequence of the 
                suspension:
                            (i) Any unavoidable fixed expenses of 
                        shutting in production from, maintenance of, 
                        and testing of an existing well.
                            (ii) Any unavoidable fixed expenses 
                        necessary to achieve postsuspension recovery of 
                        all or certain economically recoverable 
                        resources of oil or gas in the common area 
                        (including expenses of relaying pipeline and 
                        all other expenses reasonably related to 
                        reestablishing any existing oil or gas 
                        production), except that if the court 
                        determines that such unavoidable fixed expenses 
                        will exceed the net income to be derived from 
                        the resources, the court shall determine the 
                        amount of such net income and lost royalties on 
                        oil or gas not produced.
                            (iii) Expenses associated with stranded 
                        costs of drilling equipment and facilities.
                            (iv) Any lost royalties on oil or gas not 
                        produced by the oil and gas developer.
                            (v) 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.
            (2) Limitation.--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 6(b)(1) or section 
        7(b)(2).
            (3) Determination for termination.--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 subject to the oil and gas lease or 
        right to develop in the same manner as provided in paragraph 
        (1).
            (4) Ensuring against duplicate compensation.--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 lease or right to develop.
    (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 lease or right to 
        develop, 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. 10. DISBURSEMENT OF PAYMENTS TO OIL AND GAS DEVELOPERS.

    (a) Payment Alternatives.--At the election of the oil and gas 
developer, the sum of money awarded by the court pursuant to section 
9(d)(2) shall be--
            (1) paid in full within 60 days after the date of issuance 
        of the order pursuant to section 9(d); or
            (2) 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 subsections (b) and (c).
    (b) Payment Schedule.--The Federal coal lessee shall make the 
payments required by subsection (a)(2) 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 mined from the common area that is 
actually sold or transferred.
    (c) Final Payment.--If the mining necessary to make full payment of 
the sum of money awarded by the court in accordance with subsection 
(a)(2) does not occur within the 5-year period beginning on the date of 
issuance of the court order pursuant to section 9(d), the unpaid 
balance shall be paid within 60 days after the expiration of such 
period.

SEC. 11. 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 9(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 9(d) is no 
        longer required for mining operations or support facilities; 
        and
            (2) within 120 days after 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 9(d) concludes, 
        the oil and gas developer 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 9(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 after the date of receipt of the petition 
pursuant to subsection (a)(2).
    (c) Termination of Lease or Right To Develop.--
            (1) Right to petition.--If the oil and gas developer 
        determines that, as a consequence of the order of the court 
        issued pursuant to section 7(c) and an order to suspend all or 
        any part of the oil and gas lease or right to develop pursuant 
        to section 9(d), the conditions described in section 9(b)(3) 
        exist, the oil and gas developer may petition the court to 
        terminate the oil and gas lease or right to develop.
            (2) Time for filing petition.--The petition referred to in 
        paragraph (1) may be filed any time after issuance of the order 
        of the court pursuant to section 9(d), but not later than 120 
        days after the date of receipt by the court of the notification 
        pursuant to subsection (a)(1).
            (3) Determination and award.--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 lease or right to 
        develop, as their interests may appear, in accordance with the 
        procedures and deadlines established in section 5(a) and 
        sections 8 through 10.

SEC. 12. SUPPLEMENTAL PETITION FOR RELIEF.

    (a) Petition Submittal.--
            (1) In general.--If, at any time after the issuance of an 
        order pursuant to section 9(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 an increase in 
        the sum of money that was awarded under the order, or both, 
        either the Federal coal lessee or the oil and gas developer 
        may, if necessary after compliance with the requirements of 
        section 4, file a supplemental petition for relief with the 
        court to amend the order.
            (2) Requirements.--The requirements of section 5(a) and 
        sections 6 through 10 shall apply to the supplemental petition 
        submitted pursuant to paragraph (1).
    (b) Court Order.--
            (1) Determination.--Upon completion of the process required 
        by subsection (a)(2), the court shall make a determination 
        whether to--
                    (A) suspend an additional part or all of, or 
                terminate, the oil and gas lease or right to develop as 
                described in section 9; and
                    (B) award an additional sum of money calculated in 
                accordance with section 9.
            (2) Order.--The court shall issue any order resulting from 
        the determinations made pursuant to paragraph (1) within 90 
        days after the date of filing of the supplemental petition for 
        relief.

SEC. 13. APPEAL OF COURT ORDERS.

    (a) Non-Appealable Orders.--Any order issued pursuant to section 
7(c), section 7(d), section 9(d)(1), or section 12(b)(1)(A) is final 
and may not be appealed.
    (b) Appealable Orders.--Any order issued pursuant to section 
9(d)(2), section 11(b), section 11(c)(3), or section 12(b)(1)(B) may be 
appealed, but the appeal, and any disposition thereof, may not affect 
any order referred to in subsection (a).

SEC. 14. SUSPENSION TERMS.

    (a) Federal Lease Suspension Terms.--If all or any part of any 
Federal oil and gas lease 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)(A) if the lease is in the primary term, the term of the 
        lease shall be extended by the length of the period of the 
        suspension plus one year; or
            (B) the lease shall not terminate due to lack of production 
        for the period of the suspension plus one year.
    (b) Non-Federal Lease Suspension Terms.--If any non-Federal oil and 
gas lease or right to develop 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. 15. LIABILITY LIMITATION.

    Except as provided in a written agreement reached pursuant to 
section 4(b), or reached on or after September 1, 1999, and before the 
date of enactment of this Act and approved by the Bureau of Land 
Management, or as provided by an order of the court pursuant to this 
Act, neither the Federal coal lessee 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 lease or right to 
develop 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 subject to the oil and gas lease or right to develop 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.

SEC. 16. CREDIT AGAINST ROYALTIES.

    (a) In General.--If a Federal coal lessee is required by a written 
agreement reached pursuant to section 4(b), or reached on or after 
September 1, 1999, and before the date of the enactment of this Act and 
approved by the Bureau of Land Management, or by a court order issued 
pursuant to section 9(d), section 11(c)(3), or section 12(b)(2)(B), to 
pay an amount for loss of economically recoverable Federal coalbed 
methane resources due to mining operations or for suspension of all or 
part of, or termination of, a Federal oil and gas lease for coalbed 
methane located within the lands designated as ``Dispute Resolution 
Area'' on the maps referred to in section 2(1), any amount so paid 
after the date of enactment of this Act shall be credited against any 
royalties on production otherwise due from the Federal coal lessee or 
any affiliate thereof under section 7(a) of the Mineral Leasing Act (30 
U.S.C. 207(a)) for any lease of Federal coal issued under that Act, or 
under the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et 
seq.) for any lease of Federal coal that is subject to that Act.
    (b) Treatment of Royalties to the State.--The Secretary shall pay 
to the State of Wyoming 50 percent of the amount of any credit against 
royalties provided under subsection (a)--
            (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 (30 U.S.C. 193(a)); 
        and
            (2) from amounts received as royalties, rentals, or bonuses 
        derived from leases issued under this Act that otherwise would 
        be deposited as miscellaneous receipts under section 35(a) of 
        the Mineral Leasing Act (30 U.S.C. 193(a)).

SEC. 17. DENIAL OF USE AS PRECEDENT.

    Nothing in this Act shall be applicable to any lease under the 
Mineral Leasing Act or the Mineral Leasing Act for Acquired Lands 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 and within or outside of the Powder River Basin.

SEC. 18. REGULATIONS.

    The Secretary shall promulgate any regulations necessary to 
implement this Act by not later than 120 days after the date of 
enactment of this Act.
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