[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 481 Introduced in Senate (IS)]
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115th CONGRESS
1st Session
S. 481
To provide for the withdrawal and protection of certain Federal land in
the State of Colorado, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 1, 2017
Mr. Bennet introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To provide for the withdrawal and protection of certain Federal land in
the State of Colorado, 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 ``Thompson Divide Withdrawal and
Protection Act of 2017''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) the Thompson Divide in western Colorado provides rural
character, a robust agriculture-based economy, and outstanding
recreational and sporting opportunities to the public;
(2) the Thompson Divide--
(A) provides important spring and summer grazing
land for historical ranching operations; and
(B) was described by President Theodore Roosevelt
as a ``great, wild country'';
(3) the Interior Board of Land Appeals has determined that
certain mineral leases previously issued within the Thompson
Divide are legally deficient;
(4) the remedy to the deficiencies described in paragraph
(3) may result in protracted legal action and uncertainty for
surrounding communities and industry; and
(5) the communities affected by the leases have requested a
solution that--
(A) addresses the leasing controversy; and
(B) provides long-term certainty for management of
Federal land within the Thompson Divide and the
surrounding landscape.
(b) Purposes.--The purposes of this Act are--
(1) to provide for the cancellation of certain Federal
mineral leases in the Thompson Divide;
(2) subject to valid existing rights, to withdraw certain
Federal land in the Thompson Divide area from future mineral
and other disposal laws; and
(3) to provide a market-based form of reimbursement for
cancelled leases.
SEC. 3. DEFINITIONS.
In this Act:
(1) North thompson divide lease.--The term ``North Thompson
Divide Lease'' means each of the Federal mineral leases
numbered COC 66706, COC 66707, COC 66708, COC 66709, COC 66710,
COC 66711, and COC 66712.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(3) South thompson divide lease.--The term ``South Thompson
Divide Lease'' means each of the Federal mineral leases
numbered COC 66701, COC 66687, COC 66688, COC 66689, COC 66690,
COC 66691, COC 66692, COC 66693, COC 66694, COC 66695, COC
66696, COC 66697, COC 66698, COC 66699, COC 66700, COC 66702,
COC 66908, and COC 66909.
(4) State.--The term ``State'' means the State of Colorado.
(5) Thompson divide map.--The term ``Thompson Divide map''
means the map entitled ``Greater Thompson Divide Area Map'' and
dated September 22, 2016.
(6) Thompson divide withdrawal and protection area.--The
term ``Thompson Divide Withdrawal and Protection Area'' means
the Federal land and minerals at Thompson Divide and adjacent
areas in Gunnison County, Colorado, as generally depicted on
the Thompson Divide map as the ``Thompson Divide Withdrawal and
Protection Area''.
(7) Wolf creek storage field development rights.--
(A) In general.--The term ``Wolf Creek Storage
Field development rights'' means the development rights
for each of the Federal mineral leases numbered COC
007496, COC 007497, COC 007498, COC 007499, COC 007500,
COC 007538, COC 008128, COC 015373, COC 0128018, COC
051645, and COC 051646, and generally depicted on the
Thompson Divide map as ``Wolf Creek Storage
Agreement''.
(B) Exclusions.--The term ``Wolf Creek Storage
Field development rights'' does not include any storage
rights or related activities within the area described
in subparagraph (A).
SEC. 4. THOMPSON DIVIDE WITHDRAWAL AND PROTECTION AREA.
(a) Withdrawal.--Subject to valid existing rights, the Thompson
Divide Withdrawal and Protection Area is withdrawn from all forms of--
(1) entry, appropriation, and disposal under the public
land laws;
(2) location, entry, and patent under the mining laws; and
(3) operation of the mineral leasing, mineral materials,
and geothermal leasing laws.
(b) Surveys.--The exact acreage and legal description of the
Thompson Divide Withdrawal and Protection Area shall be determined by
surveys approved by the Secretary, in consultation with the Secretary
of Agriculture.
SEC. 5. NORTH THOMPSON DIVIDE LEASE EXCHANGE.
(a) In General.--Except as provided in subsection (b), in exchange
for the relinquishment by a leaseholder of all North Thompson Divide
Leases of the leaseholder, the Secretary may issue to the leaseholder
credits for bid, royalty, or rental payments due under Federal oil and
gas leases on Federal land in the State.
(b) Exception.--If a North Thompson Divide Lease has been cancelled
by the Secretary before the date of enactment of this Act and the
holder of the cancelled lease has been compensated for the cancelled
lease, the Secretary may not issue credits for bid, royalty, or rental
payments for the cancelled lease under subsection (a).
(c) Amount of Credit.--
(1) In general.--The amount of the credits issued to a
holder of any North Thompson Divide Leases relinquished under
subsection (a) shall--
(A) be equal to the sum of--
(i) the amount of the bonus bids paid for
the applicable North Thompson Divide Leases;
(ii) the amount of any rental paid for the
applicable North Thompson Divide Leases as of
the date on which the holder of the applicable
North Thompson Divide Leases notifies the
Secretary of the decision to relinquish the
applicable North Thompson Divide Leases; and
(iii) the amount of any expenses incurred
by the holder of the applicable North Thompson
Divide Leases in the preparation of drilling
permits, sundry notices, or other related
submissions in furtherance of the development
of the applicable North Thompson Divide Leases
as of July 29, 2016, including any expenses
related to the preparation of analyses under
the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.); and
(B) require the approval of the Secretary.
(2) Exclusion.--The amount of a credit issued under
subsection (a) shall not include any expenses paid by the
holder of a North Thompson Divide Lease for legal fees or
related expenses for legal work with respect to a North
Thompson Divide Lease.
(d) Cancellation.--The North Thompson Divide Leases, on
relinquishment and without further action by the Secretary, shall--
(1) be permanently cancelled; and
(2) not be reissued.
(e) Conditions.--
(1) Applicable law.--Except as otherwise provided in this
section, the exchange under this section shall be conducted in
accordance with--
(A) this Act; and
(B) other applicable laws (including regulations).
(2) Acceptance of credits.--The Secretary shall accept
credits issued under subsection (a) in the same manner as cash
for the payments described in that subsection.
(3) Applicability.--The use of the credits issued under
subsection (a) shall be subject to the laws (including
regulations) applicable to the payments described in that
subsection, to the extent the laws are consistent with this
section.
(4) Treatment of credits.--All amounts in the form of
credits issued under subsection (a) accepted by the Secretary
shall be considered to be amounts received for the purposes
of--
(A) section 35 of the Mineral Leasing Act (30
U.S.C. 191); and
(B) section 20 of the Geothermal Steam Act of 1970
(30 U.S.C. 1019).
SEC. 6. SOUTH THOMPSON DIVIDE LEASE EXCHANGE.
(a) In General.--Except as provided in subsection (b), in exchange
for the relinquishment by a leaseholder of all South Thompson Divide
Leases of the leaseholder, the Secretary may issue to the leaseholder
credits for bid, royalty, or rental payments due under Federal oil and
gas leases on Federal land in the State.
(b) Exception.--If a South Thompson Divide Lease has been cancelled
by the Secretary before the date of enactment of this Act and the
holder of the cancelled lease has been compensated for the cancelled
lease, the Secretary may not issue credits for bid, royalty, or rental
payments for the cancelled lease under subsection (a).
(c) Amount of Credit.--
(1) In general.--The amount of the credits issued to the
holder of any South Thompson Divide Leases relinquished under
subsection (a) shall--
(A) be equal to the sum of--
(i) the amount of the bonus bids paid for
the applicable South Thompson Divide Leases;
(ii) the amount of any rental paid for the
applicable South Thompson Divide Leases as of
the date on which the holder of the applicable
South Thompson Divide Leases notifies the
Secretary of the decision to relinquish the
applicable South Thompson Divide Leases;
(iii) the amount of any expenses incurred
by the holder of the applicable South Thompson
Divide Leases in the preparation of drilling
permits, sundry notices, or other related
submissions in furtherance of the development
of the applicable South Thompson Divide Leases
as of July 29, 2016, including any expenses
related to the preparation of analyses under
the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.); and
(iv) the amount of any expenses incurred by
the holder of the applicable South Thompson
Divide Leases in the purchasing of rights and
the preparation of drilling permits, sundry
notices, or other related submissions in
furtherance of the development of the Wolf
Creek Storage Field development rights; and
(B) require the approval of the Secretary.
(2) Exclusion.--The amount of a credit issued under
subsection (a) shall not include any expenses paid by the
holder of a South Thompson Divide Lease for legal fees or
related expenses for legal work with respect to a South
Thompson Divide Lease.
(d) Cancellation.--The South Thompson Divide Leases, on
relinquishment and without further action by the Secretary, shall--
(1) be permanently cancelled; and
(2) not be reissued.
(e) Conditions.--
(1) Applicable law.--Except as otherwise provided in this
section, the exchange under this section shall be conducted in
accordance with--
(A) this Act; and
(B) other applicable laws (including regulations).
(2) Acceptance of credits.--The Secretary shall accept
credits issued under subsection (a) in the same manner as cash
for the payments described in that subsection.
(3) Applicability.--The use of the credits issued under
subsection (a) shall be subject to the laws (including
regulations) applicable to the payments described in that
subsection, to the extent the laws are consistent with this
section.
(4) Treatment of credits.--All amounts in the form of
credits issued under subsection (a) accepted by the Secretary
shall be considered to be amounts received for the purposes
of--
(A) section 35 of the Mineral Leasing Act (30
U.S.C. 191); and
(B) section 20 of the Geothermal Steam Act of 1970
(30 U.S.C. 1019).
(f) Wolf Creek Storage Field Development Rights.--
(1) Conveyance to secretary.--As a condition precedent to
the relinquishment of the South Thompson Divide Leases, a
leaseholder shall permanently relinquish, transfer, and
otherwise convey to the Secretary, in a form acceptable to the
Secretary, all Wolf Creek Storage Field development rights of
the leaseholder.
(2) Limitation of transfer.--Any interest acquired by the
Secretary under paragraph (1) shall be held in perpetuity and
not transferred, reissued, or otherwise used for mineral
extraction.
SEC. 7. METHANE LEASING IN THE LOWER NORTH FORK VALLEY.
(a) Inventory.--Not later than 1 year after the date of enactment
of this Act, the Secretary shall complete, or shall collaborate with
agencies of the State or with institutions of higher education in the
State to complete, an inventory of all significant emissions of methane
in the North Fork Valley, Colorado, including methane emissions from
active, inactive, and abandoned coal mines.
(b) Leasing Program.--
(1) In general.--Not later than 1 year after the date of
completion of the inventory required under subsection (a), the
Secretary shall carry out, to the extent permissible under
applicable law, a program to offer for lease Federal methane
from active, inactive, and abandoned coal mines, subject to
valid existing rights.
(2) Conditions.--The program carried out under paragraph
(1) shall--
(A) only include methane that can be collected and
transported in a manner that does not--
(i) endanger the safety of coal mine
workers; or
(ii) unreasonably interfere with ongoing
operations at coal mines; and
(B) provide for the owners or operators of mines
with leases that overlap potential methane leases under
the program carried out under paragraph (1) to elect to
remove the areas from potential methane leasing under
the program if the owners or operators determine that
the conditions described in subparagraph (A) are not
met.
(c) Coal Mine Methane Electrical Power Generation Demonstration
Program.--
(1) In general.--Not later than 2 years after the date of
completion of the inventory required under subsection (a), the
Secretary shall enter into discussions with the eligible
entities described in paragraph (2) to develop a program to
facilitate the sale and delivery of methane that is subject to
subsection (b), but which has not been leased under that
subsection, to one or more of the eligible entities to
demonstrate the feasibility, cost-effectiveness, and
environmental benefits of producing electrical power from
methane from coal mines.
(2) Description of eligible entity.--An eligible entity
referred to in paragraph (1) is a rural electric utility,
energy cooperative, or municipal utility with service area
boundaries within 100 miles of Paonia, Colorado.
(3) Establishment of pricing.--In facilitating the delivery
of methane under paragraph (1), the Secretary shall establish
pricing for the sale and delivery of methane that is sufficient
to reimburse all costs to the Secretary for the implementation
and management of the demonstration program developed under
that paragraph.
(4) Contracts.--The Secretary may contract with the State
or one or more institutions of higher education in the State to
provide services to the eligible entities described in
paragraph (2) to facilitate the program developed under
paragraph (1), with all related costs to be included in the
pricing established under paragraph (3).
SEC. 8. EFFECT.
Unless expressly provided in this Act, nothing in this Act--
(1) expands, diminishes, or impairs any valid existing
mineral leases, mineral interest, or other property rights
wholly or partially within the Thompson Divide Withdrawal and
Protection Area, including access to the leases, rights, or
land in accordance with applicable Federal, State, and local
laws (including regulations);
(2) prevents the capture of methane from active, inactive,
or abandoned coal mines covered by this Act, in accordance with
applicable law; or
(3) prevents access to, or the development of, any new or
existing coal mine or lease in Delta or Gunnison County,
Colorado.
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