[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2680 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2680

 To direct the Secretary of the Interior to evaluate opportunities to 
    enhance domestic oil and gas production through the exchange of 
nonproducing Federal oil and gas leases located in the Lewis and Clark 
National Forest, in the Flathead National Forest, and on Bureau of Land 
    Management land in the State of Montana, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 25, 2002

  Mr. Baucus introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To direct the Secretary of the Interior to evaluate opportunities to 
    enhance domestic oil and gas production through the exchange of 
nonproducing Federal oil and gas leases located in the Lewis and Clark 
National Forest, in the Flathead National Forest, and on Bureau of Land 
    Management land in the State of 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. DEFINITIONS.

    In this Act:
            (1) Badger-two medicine area.--The term ``Badger-Two 
        Medicine Area'' means the Forest Service land located in--
                    (A) T. 31 N., R. 12-13 W.;
                    (B) T. 30 N., R. 11-13 W.;
                    (C) T. 29 N., R. 10-16 W.; and
                    (D) T. 28 N., R. 10-14 W.
            (2) Blackleaf area.--The term ``Blackleaf Area'' means the 
        Federal land owned by the Forest Service and Bureau of Land 
        Management that is located in--
                    (A) T. 27 N., R. 9 W.;
                    (B) T. 26 N., R. 9-10 W.;
                    (C) T. 25 N., R. 8-10 W.; and
                    (D) T. 24 N., R. 8-9 W.
            (3) Eligible lessee.--The term ``eligible lessee'' means a 
        lessee under a nonproducing lease.
            (4) Nonproducing lease.--The term ``nonproducing lease'' 
        means a Federal oil or gas lease that is--
                    (A) in existence and in good standing on the date 
                of enactment of this Act; and
                    (B) located in the Badger-Two Medicine Area or the 
                Blackleaf Area.
            (5) Planning area.--The term ``Planning Area'' means each 
        of the Western and Central Planning Areas of the Gulf of Mexico 
        on the outer Continental Shelf.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (7) State.--The term ``State'' means the State of Montana.

SEC. 2. EVALUATION.

    (a) In General.--The Secretary, in consultation with the Governor 
of the State, the eligible lessees, and any other interested persons, 
shall evaluate opportunities to enhance domestic oil and gas production 
through the exchange of the nonproducing leases.
    (b) Requirements.--In carrying out the evaluation under subsection 
(a), the Secretary shall--
            (1) consider opportunities to enhance domestic production 
        of oil and gas through--
                    (A) the exchange of the nonproducing leases for oil 
                and gas lease tracts of comparable value in the State 
                or in the Planning Areas; and
                    (B) the issuance of bidding, royalty, or rental 
                credits for Federal onshore oil and gas leases in the 
                State or in the Planning Areas in exchange for the 
                cancellation of the nonproducing leases;
            (2) consider any other appropriate means to exchange, or 
        provide compensation for the cancellation of, nonproducing 
        leases, subject to the consent of the eligible lessees;
            (3) consider the views of any interested persons, including 
        the State;
            (4) determine the level of interest of the eligible lessees 
        in exchanging the nonproducing leases; and
            (5) provide recommendations on--
                    (A) whether to pursue an exchange of the 
                nonproducing leases; and
                    (B) any changes in laws (including regulations) 
                that are necessary for the Secretary to carry out the 
                exchange.
    (c) Valuation of Nonproducing Leases.--For the purpose of the 
evaluation under subsection (a), the value of a nonproducing lease 
shall be an amount equal to the difference between--
            (1) the sum of--
                    (A) the amount paid by the eligible lessee for the 
                nonproducing lease;
                    (B) any direct expenditures made by the eligible 
                lessee before the date of enactment of this Act 
                associated with the exploration and development of the 
                nonproducing lease; and
                    (C) interest on any amounts under subparagraphs (A) 
                and (B) during the period beginning on the date on 
                which the amount was paid and ending on the date on 
                which credits are issued under subsection (b)(1)(B); 
                and
            (2) the sum of the revenues from the nonproducing lease.
    (d) Suspension of Leases in the Badger-Two Medicine Area.--To 
facilitate the evaluation under subsection (a) and review of the report 
under subsection (e), the terms of nonproducing leases in the Badger-
Two Medicine Area shall be suspended for a 3-year period beginning on 
the date of enactment of this Act.
    (e) Report to Congress.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall submit to the Committee on 
Energy and Natural Resources of the Senate and to the Committee on 
Resources of the House of Representatives a report on the evaluation 
carried out under subsection (a).

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this Act.
                                 <all>