[House Hearing, 113 Congress]
[From the U.S. Government Publishing Office]
H.R. 5066, ``DATA PRESERVATION ACT OF 2014''; AND H.R. 5176, TO
AUTHORIZE THE SECRETARY OF THE INTERIOR TO RETIRE COAL PREFERENCE
RIGHT LEASE APPLICATIONS FOR WHICH THE SECRETARY HAS MADE AN
AFFIRMATIVE COMMERCIAL QUANTITIES DETERMINATION, AND FOR OTHER
PURPOSES
=======================================================================
LEGISLATIVE HEARING
before the
SUBCOMMITTEE ON ENERGY AND
MINERAL RESOURCES
of the
COMMITTEE ON NATURAL RESOURCES
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
__________
Wednesday, September 17, 2014
__________
Serial No. 113-90
__________
Printed for the use of the Committee on Natural Resources
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Available via the World Wide Web: http://www.fdsys.gov
or
Committee address: http://naturalresources.house.gov
______
U.S. GOVERNMENT PUBLISHING OFFICE
89-836 PDF WASHINGTON : 2015
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Washington, DC 20402-0001
COMMITTEE ON NATURAL RESOURCES
DOC HASTINGS, WA, Chairman
PETER A. DeFAZIO, OR, Ranking Democratic Member
Don Young, AK Eni F. H. Faleomavaega, AS
Louie Gohmert, TX Frank Pallone, Jr., NJ
Rob Bishop, UT Grace F. Napolitano, CA
Doug Lamborn, CO Rush Holt, NJ
Robert J. Wittman, VA Raul M. Grijalva, AZ
Paul C. Broun, GA Madeleine Z. Bordallo, GU
John Fleming, LA Jim Costa, CA
Tom McClintock, CA Gregorio Kilili Camacho Sablan,
Glenn Thompson, PA CNMI
Cynthia M. Lummis, WY Niki Tsongas, MA
Dan Benishek, MI Pedro R. Pierluisi, PR
Jeff Duncan, SC Colleen W. Hanabusa, HI
Scott R. Tipton, CO Tony Cardenas, CA
Paul A. Gosar, AZ Jared Huffman, CA
Raul R. Labrador, ID Raul Ruiz, CA
Steve Southerland, II, FL Carol Shea-Porter, NH
Bill Flores, TX Alan S. Lowenthal, CA
Jon Runyan, NJ Joe Garcia, FL
Markwayne Mullin, OK Matt Cartwright, PA
Steve Daines, MT Katherine M. Clark, MA
Kevin Cramer, ND Vacancy
Doug LaMalfa, CA
Jason T. Smith, MO
Vance M. McAllister, LA
Bradley Byrne, AL
Todd Young, Chief of Staff
Lisa Pittman, Chief Legislative Counsel
Penny Dodge, Democratic Staff Director
David Watkins, Democratic Chief Counsel
------
SUBCOMMITTEE ON ENERGY AND MINERAL RESOURCES
DOUG LAMBORN, CO, Chairman
RUSH HOLT, NJ, Ranking Democratic Member
Louie Gohmert, TX Matt Cartwright, PA
Rob Bishop, UT Jim Costa, CA
Robert J. Wittman, VA Niki Tsongas, MA
Paul C. Broun, GA Jared Huffman, CA
John Fleming, LA Alan S. Lowenthal, CA
Glenn Thompson, PA Tony Cardenas, CA
Cynthia M. Lummis, WY Raul M. Grijalva, AZ
Dan Benishek, MI Colleen W. Hanabusa, HI
Jeff Duncan, SC Joe Garcia, FL
Paul A. Gosar, AZ Katherine M. Clark, MA
Bill Flores, TX Vacancy
Markwayne Mullin, OK Vacancy
Steve Daines, MT Vacancy
Kevin Cramer, ND Peter A. DeFazio, OR, ex officio
Vacancy
Doc Hastings, WA, ex officio
------
CONTENTS
----------
Page
Hearing held on Wednesday, September 17, 2014.................... 1
Statement of Members:
Benishek, Hon. Dan, a Representative in Congress from the
State of Michigan.......................................... 3
Holt, Hon. Rush, a Representative in Congress from the State
of New Jersey.............................................. 8
Prepared statement of.................................... 9
Lamborn, Hon. Doug, a Representative in Congress from the
State of Colorado.......................................... 1
Prepared statement of.................................... 2
Lujan, Hon. Ben Ray, a Representative in Congress from the
State of New Mexico, Prepared statement of................. 10
Statement of Witnesses:
Arthur, Jonathan D., Ph.D., P.G., President, Association of
American State Geologists; State Geologist of Florida...... 12
Prepared statement of.................................... 13
Gooding, Patrick J., Research Geologist/Manager, Kentucky
Geological Survey, University of Kentucky, Well Sample and
Core Library............................................... 18
Prepared statement of.................................... 19
Nedd, Hon. Michael, Assistant Director, Energy, Minerals, &
Realty Management, Bureau of Land Management, U.S.
Department of the Interior................................. 30
Prepared statement of.................................... 32
Pagano, Theodore A., P.G., P.E., General Manager, Michigan
Potash Company, LLC........................................ 22
Prepared statement of.................................... 23
Phelps, Walter, Council Delegate, Navajo Nation.............. 28
Prepared statement of.................................... 29
Additional Materials Submitted for the Record:
Gallagher, Kevin, Associate Director of Core Science Systems,
U.S. Geological Survey, U.S. Department of the Interior,
Prepared statement on H.R. 5066............................ 37
Michigan Geological Survey, Michigan Geological Repository
for Research and Education, Testimony documentation in
support of H.R. 5066....................................... 39
Yellich, John A., Certified Professional Geologist, Director,
Michigan Geological Survey, Michigan Geological Repository
for Research and Education, Prepared statement on H.R. 5066 4
LEGISLATIVE HEARING ON H.R. 5066, ``DATA PRESERVATION ACT OF 2014'';
AND H.R. 5176, TO AUTHORIZE THE SECRETARY OF THE INTERIOR TO RETIRE
COAL PREFERENCE RIGHT LEASE APPLICATIONS FOR WHICH THE SECRETARY HAS
MADE AN AFFIRMATIVE COMMERCIAL QUANTITIES DETERMINATION, AND FOR OTHER
PURPOSES
----------
Wednesday, September 17, 2014
U.S. House of Representatives
Subcommittee on Energy and Mineral Resources
Committee on Natural Resources
Washington, DC
----------
The subcommittee met, pursuant to call, at 2:08 p.m., in
room 1334, Longworth House Office Building, Hon. Doug Lamborn
[Chairman of the Subcommittee] presiding.
Present: Representatives Lamborn, Lummis, Benishek, Holt
and Garcia.
STATEMENT OF THE HON. DOUG LAMBORN, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF COLORADO
Mr. Lamborn. The committee will come to order.
The Chairman notes the presence of a quorum, which, under
Committee Rule 3(e), is two members.
The Subcommittee on Energy and Mineral Resources is meeting
today to hear testimony on a legislative hearing on two bills:
H.R. 5066, introduced by our colleague, Congressman Benishek,
the Data Preservation Act of 2014; and H.R. 5176, introduced by
our colleagues, Congressman Ben Ray Lujan and Cynthia Lummis,
To authorize the Secretary of the Interior to retire coal
preference right lease applications for which the Secretary has
made an affirmative commercial quantities determination.
Under Committee Rule 4(f), opening statements are limited
to the Chairman and Ranking Member of the subcommittee.
However, I ask unanimous consent to include any other Members'
opening statements in the hearing record if submitted to the
clerk by close of business today.
Hearing no objection, so ordered.
I now recognize myself for 5 minutes.
I would like to welcome everyone here today and those
listening via our webcast to the Subcommittee on Energy and
Mineral Resources legislative hearing on H.R. 5066, the Data
Preservation Act of 2014, introduced by the gentleman from
Michigan, Dr. Benishek; and H.R. 5176, that authorizes the
Secretary of the Interior to retire coal preference right lease
applications for which the Secretary has made an affirmative
commercial quantities determination, introduced by our former
committee colleague from New Mexico, Mr. Lujan, and cosponsored
by the Representative from Wyoming, Mrs. Lummis.
Back in the 1990s, building on the success of the National
Cooperative Geologic Mapping Program, several professional
geologic organizations began to push for a national geological
and geophysical data preservation program to facilitate the
acquisition, archiving, and storage of mineral and core data.
Each year tens of millions of private and public dollars
are spent in the United States acquiring geologic and
geophysical data by various industries and state and Federal
agencies.
If saved, archived, and stored, it can be retrieved,
reviewed, reanalyzed, and reinterpreted and can help identify
and solve environmental problems, locate public safety hazards,
saving lives, or direct exploration, allowing geologists to
find possible new discoveries of energy and mineral resources.
As stated in testimony, ``In 2008, reinspection of a small
manila pouch full of rock chips from a dry oil test well in
southern Texas led to the discovery of the Eagle Ford Shale
play: a $25 billion economic impact in a 20-county area,
supporting more than 47,000 jobs.'' What a discovery that was.
H.R. 5176 solves a long-standing Department of the Interior
obligation to the Navajo Nation to transfer lands selected by
the Navajo Nation in trust for the Navajo by allowing the
Interior Secretary to address prior mineral rights on the
selected parcels.
The Navajo Nation was granted the right to select certain
Federal lands to be placed in trust for the Navajo as part of
the 1974 Navajo-Hopi Settlement Act that settled a long-running
boundary dispute between the Navajo and Hopi.
The Navajo relinquished land and relocated its citizens as
part of the agreement. Forty years is a long time for the
Navajo Nation to wait for the transfer of these lands.
[The prepared statement of Mr. Lamborn follows:]
Prepared Statement of the Hon. Doug Lamborn, Chairman, Subcommittee on
Energy and Mineral Resources
I would like to welcome everyone here in the room today and
listening via our webcast to the Subcommittee on Energy and Mineral
Resources legislative hearing on H.R. 5066, the ``Data Preservation Act
of 2014'' introduced by Dr. Benishek, and H.R. 5176, that authorizes
the Secretary of the Interior to retire coal preference right lease
applications for which the Secretary has made an affirmative commercial
quantities determination, and for other purposes introduced by Mr.
Lujan and co-sponsored by Mrs. Lummis.
Back in the 1990s, building on the success of the National
Cooperative Geologic Mapping Program, several professional geologic
organizations began to push for a National Geological and Geophysical
Data Preservation Program to facilitate the acquisition, archiving and
storage of data.
As it is each year, millions of dollars are spent in the U.S.
acquiring geologic and geophysical data by various industries and state
and Federal agencies.
If saved, archived and stored it can be reviewed, reanalyzed and
reinterpreted and can help identify and solve environmental problems,
locate public safety hazards saving lives, or direct exploration
geologists to possible new discoveries of energy and mineral resources.
As stated in Dr. Arthur's testimony, ``In 2008, reinspection of a
small manila pouch full of rock chips from a dry oil test well in
southern Texas led to the discovery of the Eagle Ford Shale play: a $25
billion economic impact in a 20-county area supporting more than 47,000
jobs.''
Not an insignificant discovery!
H.R. 5176, solves a long-standing Department of the Interior
obligation to the Navajo Nation to transfer lands selected by the
Navajo Nation in Trust for the Navajo by allowing the Interior
Secretary to address prior mineral rights on the selected parcels.
The Navajo Nation was granted the right to select certain Federal
lands to be placed in trust for the Navajo as part of the 1974 Navajo-
Hopi Settlement Act that settled a long-running boundary dispute
between the Navajo and Hopi.
The Navajo relinquished land and relocated its citizens as part of
the agreement. Forty years is a long time for the Navajo Nation to wait
for the transfer of these lands.
Now I would like to yield 2 minutes of my time to Dr. Benishek to
introduce his legislation and his witness from Michigan Potash.
I look forward to hearing from our witnesses today.
______
Mr. Lamborn. I am going to now yield 2 minutes of my time
to Dr. Benishek to introduce his legislation and a witness who
is here today from Michigan Potash.
STATEMENT OF THE HON. DAN BENISHEK, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF MICHIGAN
Dr. Benishek. Thank you, Mr. Chairman. I really appreciate
the time to introduce this bill. And thank you for holding the
hearing.
This bill, the Data Preservation Act of 2014, is to
reauthorize the National Geological and Geophysical Data
Preservation Program Act of 2005 through 2019. As the National
Research Council reported in 1995, data are the lifeblood of
science and the key to understanding this and other worlds. As
such, they are a critical natural resource and must be
protected, preserved, and made accessible to all people for all
time.
In my state, Michigan Geological Repository for Research
and Education has been collecting and storing geological
samples and data for over 30 years. The repository is the
resource center for the Michigan Geological Survey and for
industry.
Dr. John Yellich, a Michigan State geologist, reports that
the repository houses more than 500,000 feet of core,
additional samples, and geophysical data for more than 25,000
wells.
Tens of thousands of well reports, logs and sample analyses
have been entered into databases. Over the past 6 years, the
repository has submitted large data sets and received grants
under the National Geological and Geophysical Data Preservation
Program.
The availability of this data has benefited the people of
Michigan significantly. In partnership with Core Energy,
researchers at the Survey relying on archived data in the
repository began to use liquefied carbon dioxide for enhanced
oil recovery in old, inactive oil fields. One field alone has
already produced an additional 1.6 million barrels of oil.
Core Energy, which is based in Traverse City, Michigan, is
the only company east of the Mississippi using this innovative
technique. Another company, Michigan Potash, reexamined a
significant donation of core that led to the discovery of a
deposit valued at $65 billion.
I would like to introduce and welcome one of the principals
of that company, Ted Pagano, who will be testifying here today.
Finally, I ask unanimous consent to enter testimony and
other documents for the record from Dr. John Yellich.
Thank you. I yield back my time.
[The documents of Dr. John Yellich follow:]
Prepared Statement of John A. Yellich, Certified Professional
Geologist, Director, Michigan Geological Survey, Michigan Geological
Repository for Research and Education, a Michigan Geological Survey--
Resource Center on H.R. 5066
Data preservation has been the focus of the Michigan Geological
Repository for Research and Education (MGRRE) for more than 30 years.
MGRRE has received financial support and has submitted very large
datasets to the National Geological and Geophysical Data Preservation
Program (NGGDPP) during the past 6 years. As the National Research
Council (NRC) reported in 1995: ``Data are the lifeblood of science and
the key to understanding this and other worlds. As such, they are a
critical natural resource and must be protected, preserved, and made
accessible to all people for all time.'' In Michigan, we have seen how
these data are also essential in finding solutions to environmental
problems and to supporting economic growth through sustainable natural
resource management. Because no one can predict which environmental and
resource issues will arise, for which the solutions will depend on
these data, we must make every effort to protect and preserve them.
In Michigan, geological samples and data are preserved and used in
education and research by MGRRE, a resource center to the Michigan
Geological Survey (MGS) at Western Michigan University (WMU). Through
MGRRE, industry members and our researchers have furthered development
of domestic energy, green-house gas sequestration, discovery of non-
metallic natural resources, and worked to define water resources. MGRRE
has data from oil, gas, environmental and geotechnical research in over
500,000 feet of core (>95 miles), samples and geophysical data from
over 25,000 wells, tens of thousands of well reports, logs and sample
analysis which is all in databases and scanned digitally and housed in
an area having >27,000 sq. ft., over half an acre.
Funding by the NGGDPP for MGRRE and many other data repositories
has created a data source for the country and preserved data that
previously were at risk of damage and/or destruction. We share these
examples from our work at MGRRE, much of which has been sustained by
support from the NGGDPP.
Using cores and data donated to or rescued from disposal by MGRRE,
largely from the oil and gas industry, our researchers have conducted
research about hydrocarbon reservoirs and presented those results at
workshops for more than 20 years (attached picture of Manuals).
Attendees represented industry, government and higher education. By
conducting our research in partnership with independent and national
oil and gas companies, our faculty and students have provided applied
solutions. And our students have gained hands-on experience in becoming
geoscience professionals receiving high paid challenging professional
positions.
The following examples represent some of MGRRE's major
environmental, industry and economic milestones over the last 20 years.
A. In 1995 WMU and Michigan Technological University (MTU) entered
into a partnership to study preserved oil field core
samples and data at MGRRE.
a. With grant support from the Department of Energy (DOE),
MTU-WMU demonstrated effective use of horizontal drilling
technology to produce additional oil reserves in Michigan,
laying a significant foundation for conventional horizontal
drilling used today.
B. Since 1997, MGRRE has been the Michigan Center for the Petroleum
Technology Transfer (PTTC), initially funded by the DOE, a
program where industry and academia share in oil industry
geological, geophysical and current operational technology.
a. MGRRE has presented one to two workshops each year,
utilizing archived core and data.
b. This program is now entirely self-funded by MGRRE
through workshop fees and industry sponsorship.
c. Many of the environmental and industry accomplishments
in the last 20 years were the result of data, well-field
experience, and research shared at these open industry events.
C. In 2005, the DOE established a national environmental program to
evaluate the potential of capturing and safely storing
Carbon Dioxide (CO2), in subsurface geologic reservoirs.
MGRRE, and other states, submitted proposals that would
utilize preserved core and geophysical data to explore this
concept.
a. MGRRE was funded to evaluate Michigan's reservoirs
through the Midwest Regional Carbon Sequestration Partnership
(MRCSP) and conducted a successful test of CO2 sequestration in
a collaborative partnership of DOE, MGRRE and industry partner,
Core Energy, LLC.
b. This basic program and subsequent successful testing and
evaluations have continued for more than 9 years and
demonstrated the potential underground storage capacity of tens
of billions of tons of CO2.
D. The CO2 sequestration program further evolved in Michigan when
CO2 injections into old oil fields resulted in the added
benefit of more energy production through the recovery of
previously stranded oil. Typically these fields would yield
about 25 percent of their reserves initially through
primary recovery. The remaining oil was ``stranded'' in
isolated small pore spaces.
a. Injecting the captured CO2 in these oil-bearing
formations produced an additional 20 percent to 25 percent of
the oil, an economic benefit to Michigan, new wealth.
b. This technology has recovered more than 1.6M barrels of
oil, which had an estimated revenue of $112,000,000 at $70/BBL
price, netting Michigan an estimated tax revenue of $7.3
million.
E. Legislation in Michigan was passed in April 2014 to entice the
oil industry to invest in this capital-intensive process of
CO2 capture and injection by providing them a tax benefit
for the additional cost.
a. Millions of barrels of additional oil will now be
recovered through this technology, resulting in tens of
millions of dollars of both unrealized income for Michigan
residents and millions of dollars of otherwise unrealized tax
revenue to the state of Michigan.
F. In 2003, MGRRE researchers, MTU and members of the oil and gas
industry presented their research and experience at a PTTC
workshop focusing on the potential of undiscovered
hydrocarbon reserves, particularly those in the Trenton
Black River Formations.
a. Subsequently, in 2006, USGS began a Michigan basin
assessment of unrecovered oil resources and WMU geoscientists
compiled data for Michigan using archived core samples and
geophysical data.
b. This compilation and research was presented at a
subsequent MGRRE/PTTC workshop, and this resulted in industry
coming to MGRRE to study and sample cores for developing
exploration targets.
c. New Trenton/ Black River Formation oil-bearing zones
were discovered in 2006.
d. The Trenton/ Black River continues to be successfully
explored and developed, resulting in additional millions of
dollars in economic benefits for our citizens and new tax
revenues for the state today.
i. An estimated 5 million Barrels of previously
undiscovered oil from five newly discovered fields has
been produced to date, an additional revenue and tax
benefit.
G. In 2009 and 2010, MGRRE hosted conferences about potential
unconventional oil and gas resources in the Collingwood,
Utica and A-1 Carbonate formations.
a. Industry professionals visited MGRRE, studied the
samples and data and developed a geological and exploration
model.
b. In 2010, $178 million was paid by the oil industry to
lease thousands of acres of state land, the largest single
lease sale to date in Michigan, providing a major source of
revenue to the Natural Resources Trust Fund of Michigan.
c. In 2010 and 2011, industry began exploration on these
leases, which has already resulted in several discoveries of
commercial quantities of oil and gas and provides the potential
for additional millions in economic benefits and tax revenue to
Michigan.
H. In 2013 the industrial mineral industry recognized that MGRRE had
the only collection of geological cores and geophysical
data for an extensive deposit of potash: a critical
ingredient in fertilizer, essential to U.S. agriculture.
a. Industry professionals and MGRRE researchers conducted
tests and completed an evaluation of this material and
determined that this represented a significant potash resource
to Michigan and to the United States.
b. The area of study has an estimated in-place value of
more than $65 billion, with additional geologic data indicating
an even larger resource area.
I. Michigan has a coastline contact with four of the five Great
Lakes and is perceived as having an abundance of and
understanding of water resources, including groundwater.
Scientific data collection and mapping of subsurface
geologic materials and water resources has been limited for
more than 30 years. The Michigan Geological Survey,
assigned to WMU in October 2011, is now mandated to
function through WMU will utilize the MGRRE samples and
data collections with a scientific geosciences emphasis to
develop a greater understanding of the groundwater
resources of Michigan.
a. The MGRRE facility has water well drill samples from
over 2000 public water supply wells and combined with more than
20,000 oil well sample sets. These samples will be used in
conjunction with other geologic and geophysical information to
support the program for effective and rational management of
our water resources.
J. Since 2005, MGRRE and WMU has been a major educational foundation
for numerous students who have utilized the resources of
MGRRE and faculty to develop the next generation of
geosciences professionals. In the last 10 years, there have
been over 45 Masters graduates from WMU that have benefited
from the MGRRE and faculty experiences, some whom have gone
on for Ph.D.'s. These graduates are now experienced
contributing professionals in the environmental, industrial
and academic world.
Through NGGDPP funding, MGRRE has continued to rescue cores that
were literally destined for landfills, recovered cores that had been
damaged by poor storage conditions, brought cores and samples back to
Michigan from out-of-state, scanned thousands paper records (mudlogs)
so they are now available in digital form, inventoried thousands of
well records, hand-entered porosity and permeability numbers from old
records into individual spreadsheets, uploaded all this data to the
National Data Repository, thereby increasing the amount of data
available and making these data publicly accessible.
Without NGGDPP funding, this recent work would still be in
progress. Funding for data preservation is very limited and so
critically needed. We urge your consideration to continue this funding
so that more data can be saved and preserved for today and tomorrow.
Attached are the examples of the workshop manuals, press
announcements and supporting documentation of data preservation and the
benefits.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Damaged core in boxes is repackaged and catalogued at MGRRE using
NGGDPP funds.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
MGRRE--Petroleum Technology Transfer Council (PTTC) Manuals
prepared and used in conferences conducted since 1997 to 2014.
______
Mr. Lamborn. OK. Thank you.
And now we are about to hear from the Ranking Member for
his 5-minute opening statement.
But, first, I want to thank Representative Rush Holt of New
Jersey. He will be retiring at the end of this Congress. I have
enjoyed working with him these last 4 years. Many times we have
agreed on issues. Many times we have not agreed on issues. But
that is how our system works. I have always enjoyed his company
and the input that he provides.
You will be missed, Representative Holt.
STATEMENT OF THE HON. RUSH HOLT, A REPRESENTATIVE IN CONGRESS
FROM THE STATE OF NEW JERSEY
Mr. Holt. Well, thank you, Mr. Chairman. That is very kind
of you. I am still on the job and am delighted to be here once
again in your committee, or your subcommittee.
Mr. Lamborn. And I just say that because this might be the
last hearing of our subcommittee this year.
Mr. Holt. This year.
Mr. Lamborn. Yes.
Mr. Holt. I see. OK.
Mr. Lamborn. We will be coming back after November for a
lame duck session, but if it is not the case, if we have
another hearing, I will say my farewell then, also.
Mr. Holt. As many times as you like, then. Thank you.
And thanks to the witnesses for being here today.
And I appreciate the Chair holding this hearing.
The first bill, H.R. 5066, would reauthorize the National
Geological and Geophysical Data Preservation Program, and the
bill is long overdue. This country's collection of geologic and
geophysical data is invaluable. It represents millions upon
millions of wells and cores and fossils and maps and other
things that have been collected over more than a century.
They are not static museum pieces. These collections are
used, will be used, should be used, day by day by government
scientists and the private sector and teachers and students and
others.
And not only are most of these data irreplaceable, but much
of it needs special handling and storage, so digitizing it is
not the answer. It is hard to imagine what future researchers
would say if we allowed this to disintegrate or disappear.
Recently, the Geological Survey used a tool on some old
mine samples, applying modern analytical techniques to see if
there are potentially valuable minerals, such as rare earth
elements, left behind in the mine waste.
The results in this case are promising, might provide a new
strategy for decreasing dependence on China and other nations
for these minerals. But that is only one example of the kinds
of things that can be done with these data, with these samples.
The authorization for the program expired 4 years ago and
while the U.S. Geological Survey has a general authority, it
really needs a special, specific reauthorization with a clear
statement of support as well.
So I think this will help. I hope it helps with the funding
levels because they are insufficient as it stands. The
authorized $30 million a year has not come close in the
appropriations, and it is something on the order of $1 million,
I guess, in recent years, or it may be as much as $2 million
now--$2 million spread over the state geological surveys is not
nearly enough to really safeguard the collections.
So I am glad to see it is moving forward. Thank you, Mr.
Chairman, for doing that.
The second bill, H.R. 5176, will finally retire some
antiquated coal lease applications that date back decades.
These preference right lease applications are a vestige of a
bygone method of coal leasing, and it is time that we do away
with them.
Since the mid-1970s, the Department of the Interior has
gradually been working through these applications. The ones
that were grandfathered were down to fewer than 30,000 acres in
New Mexico. This bill would help the Department take care of
probably all or almost all of those remaining acres and put
this system to rest, as it deserves.
The most concerning thing about the coal preference right
lease applications in New Mexico is that they are in a terrible
area for coal mining. Right next door to the Chaco Cultural
National Historic Park, they lie within a Wilderness Study Area
and the Fossil Forest Research Natural Area. Some are on the
same land selected by the Navajo Nation as part of the Land
Settlement Act.
It is my understanding that all the parties involved: the
coal company, the Navajo Nation, the Administration, are in
support of retiring these lease applications in exchange for
coal-bidding credits to be used elsewhere. And this legislation
will move that along.
So I look forward to hearing about these two bills and
yield back the remaining seconds of my time.
Thank you, Mr. Chairman.
[The prepared statement of Mr. Holt follows:]
Prepared Statement of the Hon. Rush Holt, Ranking Member, Subcommittee
on Energy and Mineral Resources
Thank you Mr. Chairman for holding this hearing to discuss these
two bills.
The first bill, H.R. 5066, which would reauthorize the National
Geological and Geophysical Data Preservation Program, is long overdue.
This country's collection of geologic and geophysical data is
invaluable, representing literally millions upon millions of wells,
cores, fossils, maps, and more that have been collected at incredible
expense for roughly a century and a half.
These aren't simply museum pieces. These collections are used every
day by the private sector, government scientists, teachers, and more.
Not only is most of this data irreplaceable, or only replaceable at
tremendous expense, but much of it needs special handling and storage.
It can't just be digitized and kept in a database.
If you have a core sample, and want to come back later to take a
sample for some new analysis, you need to have that core sample stored
safely in a proper facility. And it's far cheaper to construct and
maintain the storage facility than it is to go out and drill new cores.
We can barely imagine how future researchers will use our existing
library of geologic data. Recently, the U.S. Geological Survey used a
new tool on some old mine samples, applying modern analytical
techniques to see if there are potentially valuable minerals, such as
rare earth elements, that had been left behind in mine waste.
The results have been extremely promising, and might provide us
with a new strategy for decreasing our dependence on China for some of
these minerals. But that work is only possible because those samples
were available for testing.
The authorization for this valuable program expired in 2010, and
while the U.S. Geological Survey has the general authority it needs to
keep the program operating, congressional reauthorization would be a
clear statement of support, and hopefully help boost funding levels.
Although authorized at $30 million a year, the program barely received
$1 million for many years, although recently Congress has boosted that
to $2 million.
But that's $2 million spread out over all the state geological
surveys, which is helpful, but not nearly enough to truly safeguard
these critical collections. I'm glad to see us move forward with a
reauthorization of this program, and hope that we can keep increasing
the funding available for it.
The second bill, H.R. 5176, is a bill to finally retire some
antiquated coal lease applications that date back decades. These
preference right lease applications are a vestige of a bygone method of
coal leasing that Congress did away with in the mid-70s.
Since that time, the Department of the Interior has been gradually
working through those applications that were grandfathered in, and we
are down to less than 30,000 acres in New Mexico. This bill will help
the Department take care of most, if not all, of these remaining acres,
and finally put this system to rest once and for all.
The most concerning thing about the coal preference right lease
applications in New Mexico is that they're in a terrible area for coal
mining. They're right next door to an important cultural site, the
Chaco Culture National Historic Park, lie within a Wilderness Study
Area and the Fossil Forest Research Natural Area, and are also on some
of the same lands selected by the Navajo Nation as part of the Navajo-
Hopi Land Settlement Act.
It is my understanding that all the parties involved--the coal
company, the Navajo Nation, and the Administration--are in support of
retiring these lease applications in exchange for coal bidding credits
to be used elsewhere, and that this legislation is necessary to make
that happen.
I look forward to hearing more about these bills, and I thank the
witnesses for being here today.
I yield back the balance of my time.
______
Mr. Lamborn. All right.
Mr. Holt. Oh. Mr. Chairman----
Mr. Lamborn. Yes.
Mr. Holt. May I ask unanimous consent to include in the
record a statement of Representative Ben Ray Lujan on the
subject of H.R. 5176?
Mr. Lamborn. If there is no objection, so ordered.
Mr. Holt. Thank you.
[The prepared statement of Representative Ben Ray Lujan on
H.R. 5176 follows:]
Prepared Statement of the Hon. Ben Ray Lujan, a Representative in
Congress from the State of New Mexico
Mr. Chairman, I appreciate the subcommittee's willingness to hold
this important legislative hearing on H.R. 5176, a bill I have
sponsored with Representative Cynthia Lummis to authorize the Secretary
of the Interior to retire coal preference right lease applications for
which the Secretary has made an affirmative commercial quantities
determination, and for other purposes. I want to welcome the witnesses
Walter Phelps, Chairman of the Navajo-Hopi Land Commission, and Mike
Nedd, Assistant Director from the BLM Minerals & Realty Management, who
are appearing before the subcommittee today on this bill.
While it may not be evident from the bill's title, the
authorization provided to the Secretary by this legislation will not
only resolve certain preference right lease applications, but will also
help resolve a tribal trust obligation to the Navajo Nation that has
been unresolved for four decades. In 1974, when the Congress enacted
the Navajo-Hopi Settlement Act, a process was established for the final
settlement of the reservation boundaries between the Navajo and Hopi
tribes. This led to the resettlement of Navajo tribal members and the
loss of acreage from the Navajo Reservation in order to make the Hopi
Reservation whole. In return, the Navajo were permitted to select a
comparable amount of acreage on Federal lands managed by the BLM, to be
taken into trust for the Navajo Reservation. In the 1974 Act, Congress
committed to providing the Navajo these lands, unencumbered by mineral
rights.
In the early 1980s, the Navajo Nation selected its parcels of
Federal land. The Secretary of the Interior has since taken most of
those parcels into trust for the Navajo Nation. Unfortunately, a number
of the parcels selected by the Navajo were encumbered by prior mineral
rights held by private entities. These parcels are unable to be taken
into trust for the Navajo until the private mineral rights are removed,
and the status of these parcels remains unresolved after decades.
Several of these parcels are also within 2 miles of the Chaco
Canyon National Historical Park. It is the BLM's goal, shared by me and
many of my constituents, to protect areas closely surrounding the Park
that contain important historical and archeological assets.
There have been numerous attempts to resolve this situation
administratively, and I applaud the efforts of all the parties involved
for working in good faith to find a solution. A key element to
resolving this issue is the exchange of existing preference right lease
applications for competitive coal leasing bidding rights that can be
used to meet future obligations under the Federal coal leasing program.
Unfortunately, the Interior Department's Solicitor has determined that
Interior lacks the authority to pay the resultant state share of
royalties or bonus bids once the new bidding rights are exercised. This
would significantly disadvantage states in the application of any
bidding credits.
Our bill provides the Secretary of the Interior with important
authorities that will ensure that all affected parties--private
entities, the Navajo Nation, and the states--will be treated equitably
going forward. Further, the Interior Department and private entities
holding the mineral rights have already stipulated that there are 267
million tons of commercially recoverable coal on these parcels. Absent
Congress providing statutory authority to the Secretary to resolve
issues like this, a far more expensive takings claim may occur.
Accordingly, our actions here in Congress will save taxpayers
significant dollars.
Again, I appreciate the subcommittee's attention to this important
issue, and I am committed to working with the subcommittee and
committee leadership to move this bill forward in an expeditious
manner.
______
Mr. Lamborn. We will now hear from our witnesses.
I want to welcome Jonathan D. Arthur, Ph.D. and P.G.,
President of the Association of American State Geologists and
Director and State Geologist of Florida; Patrick J. Gooding of
the Kentucky Geological Survey and the University of Kentucky,
Well Sample and Core Library; Theodore A. Pagano, P.G. and
P.E., General Manager of the Michigan Potash Company, LLC; and
Walter Phelps, Council Delegate of the Navajo Nation; and,
finally, Michael Nedd, Assistant Director of Energy, Minerals
and Realty Management of the Bureau of Land Management with the
U.S. Department of the Interior, who is accompanied by Kevin
Gallagher, Associate Director of Core Science Systems of the
U.S. Geological Survey, also with the U.S. Department of the
Interior.
Like all of our witnesses, your written testimony will
appear in full in the hearing record, so I ask that you keep
your oral statements to 5 minutes.
Our microphones are not automatic. So you need to turn them
on when you are ready to begin.
I also want to explain how our timing lights work. When you
begin to speak, our clerk will start the timer and a green
light will appear. After 4 minutes, a yellow light will appear
and, at that time, you should begin to conclude your statement.
At 5 minutes, the red light will come on and I ask that you
conclude at that time.
I will also be giving the gavel here very soon to Dr.
Benishek to finish this hearing. This is a very busy day with
committees. I have two others going on at the same time.
So, Dr. Benishek, if you can come here, we will do that.
But, Mr. Arthur, you may begin. Thank you for being here.
STATEMENT OF JONATHAN D. ARTHUR, PH.D., P.G., PRESIDENT,
ASSOCIATION OF AMERICAN STATE GEOLOGISTS; STATE GEOLOGIST OF
FLORIDA
Mr. Arthur. Thank you, Chairman Lamborn, Ranking Member
Holt, members of the subcommittee and bill sponsor, Congressman
Benishek. I appreciate this opportunity to provide testimony in
support of H.R. 5066, Reauthorization of the National
Geological and Geophysical Data Preservation Program Act. I
serve as the State Geologist of Florida and as president of the
Association of American State Geologists, AASG.
Today I am testifying on behalf of AASG. Our association
commends your efforts to strengthen our Nation's capacity to
address the challenges related to energy and critical mineral
resources.
AASG strongly supports restoration, preservation, and
accessibility of geological and geophysical data. We
acknowledge and support the role of U.S. Geological Survey in
administering this program. We are grateful that the Act
supports important state and Federal partnerships through 100
percent matching to achieve mutually beneficial goals.
We acknowledge that local, state and tribal agencies and
our Federal partners, such as the Departments of the Interior,
Energy, Homeland Security and EPA, as well as the private
sector, rely on this data for purposes of water, mineral and
energy discoveries and assessments, natural hazard mitigation,
and protection of human health and the environment. Bottom
line: This data is important.
Examples of the data at risk include rock and sediment
samples, fossils, paper logs, aerial photos and maps, which are
often in poor states of preservation and access and in danger
of permanent loss.
In 2002, the National Academy of Sciences Report titled
``Geoscience Data Collections--National Resources in Peril''
made the case for the premise of this Act. Many of this
Nation's geological data repositories, most of which are
maintained by state geological surveys, are now at or near
their storage capacity. Expansion of these facilities requires
significant capital costs.
Per the Act, annual authorization is $30 million. However,
appropriation has been on the order of 3 percent. Over the last
5 years, average annual funding of roughly $27,000 per state
has been awarded to an average of 25 states.
While capital improvements are not possible with this
modest appropriation level, small data rescue projects have
been accomplished by State Geological Surveys, enhancing
accessibility, discoverability, and usability of the data.
For example, funds from the Act supported digital archiving
of historic mine maps in California, which are used to mitigate
public safety hazards posed by abandoned mines.
Florida digitally converted more than 7,000 paper
geophysical logs, thereby protecting the data and providing
digital access to information about the state's deepest wells
for use in groundwater and energy assessments.
The economic and societal importance of geological and
geophysical data cannot be overstated. Kansas used 50-year-old
drill cores in its repository to help determine the cause of
fatal gas explosions and recommend solutions.
Michigan received a mining company donation of 4,000 core
boxes and, fortunately, had the sufficient staff and space to
archive the materials for future use. Reinspection of the
samples led to discovery of potash deposit valued at $65
billion.
New Jersey, Maryland, and Delaware used data from their
respective collections to cooperate on a study of the Potomac
aquifer, which serves these states as a principal source of
drinking water.
You heard from Chairman Lamborn about the Eagle Ford Shale
play in Texas. This successful use of geologic and geophysical
data is seen in other states. For example, similar stories
exist in Oklahoma and Pennsylvania, where frequent use of
geophysical logs and samples has led to rapid and efficient
development of significant oil and gas plays.
Data underpins everything we do as geoscientists. We must
protect it, and we must make it accessible. The AASG urges this
subcommittee to consider extending the reauthorization to 2025.
Thank you again for this opportunity.
Dr. Benishek [presiding]. Thank you very much.
[The prepared statement of Mr. Arthur follows:]
Prepared Statement of Jonathan D. Arthur, Ph.D., P.G., President,
Association of American State Geologists; State Geologist of Florida on
H.R. 5066
Thank you for the opportunity to submit written testimony for the
record on H.R. 5066, Reauthorization of the National Geological and
Geophysical Data Preservation Program Act of 2005 through 2019
(NGGDPP). This testimony is presented on behalf of the Association of
American State Geologists (AASG). Our organization, founded in 1908,
represents the State Geologists of the 50 United States and Puerto
Rico. AASG seeks to advance the science and practical application of
geology and related earth sciences across our lands. AASG strives to
optimize the role that State Geological Survey agencies play in
delivering benefits to the people of the United States in relation to
developing economic prosperity, understanding and mitigating natural
hazards, protecting property and lives, and preserving our natural
environmental heritage.
AASG recognizes the work of Chairman Lamborn, Ranking Member Holt,
sponsor Benishek and the members of this committee. We commend your
efforts to strengthen our Nation's capacity to address the challenges
associated with energy, as well as critical and strategic mineral
resources. I share with you today the vital role of geological and
geophysical data in this regard, the vulnerability of these resources,
and I will emphasize the role that State Geological Surveys can play in
addressing associated concerns.
the aasg position
AASG strongly supports preservation and access of geological and
geophysical data, which is facilitated through this Act. We support
long-term authorization and full appropriation of the Act. We
acknowledge and support the role of the U.S. Geological Survey (USGS)
in administering this program, which includes the development and
compilation of state and Federal data inventories, an implementation
plan, data standards, strategic planning, and collaboration regarding
preservation techniques. We acknowledge the significance of the
National Data Catalog at ScienceBase.gov. We acknowledge that local and
state agencies and our Federal partners, such as the Department of
Interior, Department of Energy, Department of Homeland Security and the
Environmental Protection Agency, rely on this data for purposes of
water, energy and mineral resource assessments and sustainability,
hazard mitigation, and protection of human health and the environment.
AASG understands that despite the continuous evolution of geological,
geophysical, engineering concepts, and analytical techniques, there is
a constant need to revisit, re-examine, and re-analyze rock samples
over time. These ``second looks'' at archived and heritage data can
yield energy and mineral discoveries worth billions of dollars and
generate tens of thousands of jobs. The NGGDPP supports important
Federal-State partnerships that achieve mutually beneficial goals
related to the rescue and accessibility of invaluable geoscience data.
a critical issue for the nation
Geoscience-related issues are critical and of immediate concern to
the Nation's security and economy. Examples include the following:
Location, abundance, sustainability and quality of water
supplies
Domestic energy sources, such as oil, gas, coal,
geothermal, and renewables; reduction of carbon emissions
Domestic sources of metals and critical minerals
Identification, mapping, and prediction of geologic
hazards such as earthquakes, volcanic eruptions, sinkholes
and landslides
New technological breakthroughs require re-examination of
samples and data; data historically deemed insignificant
may become paramount to new discoveries
Training the next generation of geoscientists, especially
geologic mappers
All of these issues rely on the analysis of geological and
geophysical samples, collections, and data that already exist.
Regrettably, these vital materials are often in poor states of
preservation and access, and in danger of permanent loss. Many of this
Nation's geological data repositories, most of which are maintained by
State Geological Surveys, are now at or near their storage capacity.
Some have exceeded their capacity and are relying on temporary, non-
climate-controlled portable storage. Expansion of these facilities
requires significant capital costs. While industry and government have
made substantial investments to acquire geoscience data and collections
for over 150 years, volumes of expensive and arduously obtained
subsurface information are currently at risk of disposal or ruin. Once
these data are lost, they probably will never be replaced.
The value of our Nation's geological and geophysical data (e.g.,
rock and ice cores, fossils, geophysical tapes and paper logs, rock,
mineral and fossil samples, aerial photos, field notes) have long been
recognized. The fact that significant portions of these materials are
irreplaceable due to destruction of outcrops (e.g., construction,
quarrying, flooding, landslides), urbanization, restricted access, and
prohibitive replacement expenses only increases their importance. If
preserved, these materials and data will be invaluable for the next
generation of scientific research and education. The ability to
preserve and maintain geoscience data and collections has not kept pace
with the growing need for information and technological advancements,
many of which require real-world calibration: samples from the Earth.
Not only is rescue of this data critical, a full understanding and
access of the types and sources of data is equally important to future
geoscientists. To this end, developing inventories, and recording
metadata--or structured information about data--allows for future
discovery and use through a georeferenced platform such as an Internet-
based map. Meticulous effort is involved in the research of metadata;
it is much like detective or forensic work and is time-consuming.
In 2002, the National Academy of Sciences reported on ``Geoscience
Data and Collections--National Resources in Peril,'' making the case
for preserving these irreplaceable data and physical samples. The
report notes that ``housing of and access to geoscience data and
collections have become critical issues for industry, Federal and state
agencies, museums, and universities. Many resources are in imminent
danger of being lost through mismanagement, neglect, or disposal. A
striking 46 percent of the state geological surveys polled by the
[National Research Council] committee reported that there is no space
available or they have refused to accept new material.''
the response
Congress established the National Geological and Geophysical Data
Preservation Program (NGGDPP) through the National Energy Policy Act of
2005 [P.L. 109-58, Sec. 351] to address these issues. Specifically, the
NGGDPP was established to:
Create a national network of cooperating geoscience
materials centers and data archives, representing a
partnership between U.S. Department of the Interior Bureaus
and the State Geological Surveys;
Archive geologic, geophysical, and engineering-geologic
data, maps, well logs, and samples in accordance with
National and international formats and standards;
Permit ready access to the holdings of all collections
through a common, distributed Internet-based National
Digital Catalog of archived materials;
Provide Federal assistance, matched by state and private
funds, to support physical and digital infrastructure
efforts, outreach, public awareness, and workshops;
Ensure that this Nation's next generation of geoscientists
has the necessary reference material with which to train;
Designate the USGS as the program administrator to
coordinate geologic material centers and data archives with
other Department of Interior Bureaus, the State Geological
Surveys and the AASG; and
Encourage private industry and universities to partner
with State Geological Surveys and the USGS to leverage
resources.
budget history--a state perspective
Since implementation of the NGGDPP, the annual authorization has
been $30 million, however, total appropriated funds since 2007 equals
$8 million. This comprises three percent of the total $240 million
authorization during that period. Cooperative funding of state projects
began in 2007, totaling $4.58 million to date in awards to the states.
Over the last 5 years, on average, 25 states per year have received
funding averaging $27,033 per state. This annually comprises an average
of 63 percent of the appropriated funds over this 5-year period.
data preservation accomplishments and applications
With the modest appropriation levels, intended capital improvements
have not been possible; however, the USGS-administered NGGDPP has
successfully implemented the National Data Catalog and funded small
data rescue activities and improvements in data collections and
management across the country. The following describes selected
accomplishments of State Geological Surveys. In addition, examples of
successful applications of previously archived geological and
geophysical data are shared to illustrate the importance of these
geoscience data resources, which can generate billions of dollars for
the Nation's economy, create jobs, and save lives:
Alabama has digitally cataloged approximately 170,000
fossil specimens within its paleontology collection,
providing ready access of fossil information to energy
companies who are constructing or moving pipelines. The
companies incorporate this information into the
Paleontological Resources section of the required
Environmental Impact Statement within their applications to
the Federal Energy Regulatory Commission. Archived
vibracores can be used to evaluate damage to the Alabama
coast due to the Deepwater Horizon oil spill and may be the
basis for recovering significant funds for coastal
restoration.
Alaska completed a major curation project supported partly
by NGGDPP involving a valuable core sample collection at
risk of severe material and data loss: 818 boxes of moldy
coal-bed methane core from five oil and gas wells were
cleaned, re-boxed, restored and made available to
geoscientists studying potential energy resources. Other
archived cores once examined and analyzed for gold, silver,
and tin, are now being analyzed for their promising REE
potential.
Arizona digitized and georeferenced more than 4,900 maps,
5,500 reports, 5,100 images to date; over 30,000 additional
files and maps have also been scanned--information used
extensively by state and Federal agencies in environmental
and abandoned mine/mine safety programs, and by mineral
resource exploration companies.
California notes the importance of its Historic Mine Maps
Collection, which is used to remediate public safety
hazards posed by abandoned mines throughout the state.
Almost every year there are reports of California residents
entering or falling into abandoned mines and becoming
trapped sometimes with deadly results. Maps in the
collection provide information on mine locations that would
otherwise go undetected.
Florida converted more than 7,000 geophysical logs to
digital format, providing information about state's deepest
wells, making the data more accessible and useful toward
exploration of oil, natural gas and deep-aquifer drinking
water. Evaluation of core samples and geophysical logs
continue to lead to a refined understanding of the Floridan
aquifer system. Moreover, examination of core samples led
to discovery of natural sources of arsenic, which fostered
development of techniques that mitigate the release of this
element underground sources of drinking water.
Kansas used drill cores in its repository that were
collected in the 1960s to help determine the cause of a gas
explosion and recommend solutions. In 2001, natural gas
bursts in Hutchinson, Kansas, resulted in downtown
explosions and fires, as well as fountains of natural gas
and brines 3 miles east of the fires and an explosion under
a mobile home that killed two people. Using the drill cores
and new seismic data, scientists determined that gas
leakage from a salt cavern used to store natural gas had
resulted in two anomalous zones of potential high gas
pressure. Vent wells were drilled to release the pressure,
which prevent further explosions. Originally acquired in
the 1960s while the Atomic Energy Commission was trying to
determine potential nuclear storage facilities, the core
was used in 2001 to prevent further explosions and deaths
from underground natural gas accumulations.
Michigan received a mining company donation of 4,000 core
boxes and fortunately had sufficient staff process the
samples and sufficient space to archive the materials for
future access. Reinspection of the samples led to discover
of a potash deposit valued at $65 billion.
Missouri received funding from NGGDPP and applied it to
convert 400 hard-bound, paper field notebooks to a digital
format via scanning for preservation and archival purposes,
increasing public awareness of and accessibility to the
information. The collection comprises more than 1,500
geology field notebooks that date back to 1855. The
collection is one-of-a-kind and would be impossible to
replace should be lost or destroyed. The notebooks contain
historic geologic data on outcrop locations, rock-unit
layers, mining, karst, hydrology, structure and other
topics. They also contain historic data on physiography,
vegetation, socio-economic and cultural information and a
myriad of other subjects. The notebooks have proven to be
essential for site location and characterization work on
mine-related Brownfields work. The information has not only
reduced costs and time by providing mine location data, but
has also been the sole source of information for more than
1,700 historic mines, many of which have significant soil
or groundwater lead contamination and are now proximal to
residential development.
Montana applied NGGDPP funds to collect and preserve mines
and mineral data throughout the state, specifically,
preserving drill hole logs, mineral evaluations, and many
other data related to the New World Mining District.
Preservation of mineralogic and geochemical data was also
accomplished to evaluate hundreds of abandoned-inactive
mine sites for reprocessing waste rock.
New Jersey, Maryland and Delaware used geologic and
geophysical logs from their respective collections to
cooperate on a transboundary study to understand the
Potomac Aquifer, which is a principal supplier of drinking
water in each state. The project was supported by the USGS
National Cooperative Geological Mapping Program (STATEMAP).
The geologic information, made available in part from the
NGGDPP program, assisted the team with identifying the
dimensions of the aquifer, and for locating optimal
drilling locations for additional test wells. Drilling test
wells is costly, and the use of existing geologic and
geophysical information allowed the team of researchers to
make optimal use of their research funds.
New York applied NGGDPP resources to support the scanning
of over 1,700 maps, therefore preserving the documents and
making them more accessible. State agencies, such as the
Departments of Transportation and Environmental Protection,
have used the scans of our bedrock maps for projects such
as landslide mitigation, resource planning, and habitat
protection. They have also been used by the engineering
community in planning and construction of a new water
supply tunnel for New York City. Engineers on the project
stated that the existence of archival bedrock data in the
NYSGS open file saved the City ``millions of dollars in
drilling costs.''
Oklahoma has a core facility and data center, the Oklahoma
Petroleum Information Center, that is the size of four
football fields and holds over 100 miles of core. It also
holds thousands of well logs, thousands of boxes of
drilling cuttings, very popular old aerial photographs that
we have scanned with NGGDPP funding, and equally popular
old data such as mud logs which we have also scanned with
NGGDPP funding. These data are being used daily in oil and
gas exploration and production efforts across Oklahoma, and
we are regularly told how invaluable these data are. Some
of the recent plays that are in the news are the
Mississippi Lime, Granite Wash, Woodford shale, and SCOOP
(South Central Oklahoma Oil Province). The utility of the
data we preserve can be easily tracked by the requests for
core viewing, examination of cuttings, and paper records as
these and other plays develop.
Pennsylvania gas archived core that was drilled and
archived over the last 40+ years and has been utilized over
the last 5 years for studies of the Marcellus shale. This
horizon has recently fueled a significant increase in
available gas resources to support the U.S. economy. Were
it not for the cores preserved and maintained by the PA
Survey, and the work over the last 30 years to map, sample
and evaluate the Marcellus--long before the advent of
current drilling technology and the now recognized
importance of organic shales--the rapid and efficient
development of this resource would have been significantly
delayed.
Texas maintains three core research centers. In 2008,
reinspection of a small manila pouch full of rock chips
from a dry oil test well in southern Texas led to discovery
of the Eagle Ford Shale play: a $25 billion economic impact
in a 20-county area supporting more than 47,000 jobs. The
pouch resides in a box among half a million boxes in a
Texas Bureau of Economic Geology core research facility.
The sample had likely not been inspected since the 1950s.
Utah has record of over 24,000 air photos that were
downloaded last fiscal year for use by geotechnical and
environmental engineering consultants in support of
investigations for new development to identify and locate
potential geologic hazards, and in environmental
assessments, and by local governments and others to
document land-use changes. The Survey's Aerial Imagery
Collection is being used on almost all internal geologic
hazard projects and emergency responses, and is critical
for mapping landslide occurrences (such as the over 500
square mile Wasatch Plateau landslide inventory mapping
project, Seeley Fire emergency response, etc.), and other
hazards.
in closing
The AASG endorses the NGGDPP as it is designed to readily address a
vast and enduring concern for the Nation. Not only are geological and
geophysical data at risk, but scientific clues revealing undiscovered
water, mineral and energy resources may be lost, and more importantly,
data that can save lives may be lost. This cooperative Federal-State
program affords the Nation the opportunity to more fully understand the
reserves of water resources and mineral and energy reserves in our
lands. In addition, the data is also used for prediction and
preparation of geological hazards, as well as to avoid unnecessary
costs of embarking in geologic exploration in areas already represented
in historic collections.
Given past appropriation levels and the immense importance of this
successful program, the AASG strongly recommends that the authorization
be extended to a 10-year duration, ``. . . 2015 through 2025.'' We also
encourage full appropriation levels to meet national demands for
capital improvement projects to store, protect and make these valuable
geoscience resources more readily available.
Thank you, again, for this opportunity. I hope you find this
information helpful as you consider this important matter.
For more information about geoscience data repositories and success
stories:
American Geological Institute, 1997, National Geoscience Data
Repository System Phase II: Final Report, Alexandria, Virginia, 127 p.
American Geological Institute, 2003, National Geoscience Data
Repository System Phase II: Implementation and Operation of the
Repository Final Report, Alexandria, Virginia, 42 p.
American Geological Institute, 2006, Directory of Geoscience Data
Repositories, Alexandria, Virginia, http://www.agiWeb.org/ngdrs/
datadirectory.html.
Collette, Mark, December 30, 2012, ``The Wildcatter: Corpus Christi's
Gregg Robertson, key member of Eagle Ford discovery, named 2012
Newsmaker of the Year,'' Corpus Christi Caller Times, Retrieved from
http://www.caller.com/business/eagle-ford-shale/the-wildcatter-corpus-
christis-gregg-robertson.
National Research Council, 2002, Geoscience Data and Collections--
National Resources in Peril, National Academies Press, Washington, DC,
107 p.
Office of Management and Budget, 2002, Coordination of Geographic
Information and Related Spatial Data Activities. Circular No. A-16
Revised.
Roland, Cheryl, September 10, 2013, ``Western Michigan University
research facility assists in rediscovery of rare mineral deposit,''
Western Michigan University News, Retrieved from http://wmich.edu/news/
2013/09/9197.
supporting images
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Dr. Benishek. Mr. Gooding.
STATEMENT OF PATRICK J. GOODING, RESEARCH GEOLOGIST/MANAGER,
KENTUCKY GEOLOGICAL SURVEY, UNIVERSITY OF KENTUCKY, WELL SAMPLE
AND CORE LIBRARY
Mr. Gooding. I am also honored to be here representing the
Kentucky Geological Survey at the University of Kentucky.
Geoscience data is the extensive collection of data
obtained during research and exploration and includes the
following: Fossils----
Dr. Benishek. Sir, is your microphone on?
Mr. Gooding [continuing]. And includes fossils,
geochemistry data, minerals, well cuttings, coals, to name a
few.
Are important geoscience data being destroyed? Yes. Each
year millions of feet of coal and well cuttings along with
water data, geologic logs, maps, seismic data, mineral, and
fossil collections are being discarded all over the country.
Why is examination of geoscience data important? It leads
to cleaner, better, and improved environment, discovery of
energy sources and minerals, and a better understanding of the
geological history.
Field work, data acquisition, and research is costly. It is
time-consuming and it is dangerous. Preserving geoscience data
at a repository is the solution. State Geological Surveys
throughout the country maintain facilities similar to this one
with supporting funds from Congress. Geoscience data are
examined daily for research and exploration.
Where do our donations come from? From coal companies,
mining, quarry, research, state and Federal agencies, to name a
few. Samples and cores add great value to industry and
research, in education, and in training in all levels.
Geoscience data provides opportunities for research,
exploration and development. It is used by graduate students
with their thesis and dissertations, on class projects, and lab
exercises.
What can be learned from studying this material? A detailed
and accurate understanding of the subsurface is possible
through the examination and study of geoscience data.
And how does geoscience data impact the economy? It
provides solutions to scientific, economic, environment issues
and potentially natural disasters. It also facilitates new
discoveries, redevelopment of old areas, and allows intelligent
planning decisions and a better management of our natural
resources.
So what is the benefit and purpose of keeping geoscience
data? There is a constant need to go back and reexamine samples
and cores as new geological and engineering concepts evolve, as
new analytical instruments and techniques are developed, as new
progress in technology and computer modeling advances, and as
new methods of examination and interpretations evolve.
An established record results in greater success and
predictability, less development, and exploration time, readily
available data, and geoscience data preservation facilities
throughout the country are filled to capacity.
Tremendous geoscience data preservation progress has been
accomplished nationwide with support from the National
Geological and Geophysical Data Preservation Program Act of
2005, and reauthorization is warranted and justified.
I thank you.
[The prepared statement of Mr. Gooding follows:]
Prepared Statement of Patrick J. Gooding, Research Geologist/Manager,
Kentucky Geological Survey, Well Sample and Core Library on H.R. 5066
What is geoscience data?
It is the extensive collection of data obtained during research and
exploration. It includes fossils, geochemistry data, models, geologic
reports, field samples, well cuttings, cores, mineral collections,
hydrocarbon samples, tar sands, coals, thin sections, engineering
reports, maps and geologic cross sections.
How are geoscience materials used and by whom?
Although many tools are available for exploration, the examination
of geoscience data available at state and Federal repositories are used
by scientists from the U.S. Government, geological surveys, educators
from academia, exploration, development and industry geologists,
consultants, operators, students and the general public. The data
preserved at these facilities are the best source of materials for
research, training, and education and provides solutions to scientific,
economic, and environmental issues.
Are important geoscience data being discarded and destroyed?
Yes. Each year, millions of feet of cores and well cuttings along
with the water data, geologic records, maps, seismic data, and mineral
and fossil collections, are discarded and destroyed all over the United
States. The loss of this resource, which costs millions of dollars to
obtain, is a tragedy for our Nation.
Why are geoscience data important?
Detailed examination of geoscience data is important in research,
development, discoveries, exploration of new hydrocarbon reservoirs and
mineral deposits critical to U.S. energy security and independence.
Examination of these data provides opportunities leading to new
discoveries in energy, environmental issues, and a better understanding
of the earth's history and development. An established record results
in greater scientific success and predictability. It reduces
development and exploration time, and contributes to lower exploration
costs, increased efficiency and greater safety. Some data are
irreplaceable and would be cost prohibitive to reacquire in the future.
What are the advantages of a repository?
Repositories preserve geoscience data, make the data accessible,
and promote the utilization of their collections in education,
scientific research, exploration, and development of resources both on
and beneath the earth's surface.
Historical data, literature, previously analyzed sample data,
geophysical logs, core data, geochemical analysis and samples are
generally available at repositories for examination. Many records have
been scanned and are accessible in digital format on repositories' Web
sites. Utilization of data becomes more efficient when geoscience data
pertaining to that state is preserved at a repository located in that
state.
How are repositories important for research and development?
Geoscience data are of great value in industry, research, education
and training. Cores and well samples are the most important source of
information for hydrocarbon and mineral exploration and for
stratigraphic and structural investigations. Cores and well samples
also are the best source of detailed geologic information about the
nature, occurrence, and extent of rocks in the subsurface. Geologists
engaged in the exploration for and development of mineral resources
must have detailed knowledge about the strata in which the deposits
occur, as well as information about associated deposits. Cores and well
samples also provide essential information for a better understanding
of our groundwater resources and related environmental problems.
Knowledge about the rock beneath the earth's surface can only be gained
through detailed examination of well cuttings and cores.
How are geoscience data used in education?
Geoscience data provides opportunities for research, exploration,
development and scientific reports. Graduate and undergraduate students
from universities throughout the country use the materials available at
the repositories to generate theses, dissertations, class projects,
term papers, lab exercises, reports, research papers, publications and
professional presentations. Examination of cores and well samples
allows students to expand their knowledge of rocks and geologic
processes while conducting research on a wide range of geologic
material, thereby providing a greater understanding of the subsurface
and the evolution of the earth.
In what disciplines are the data used?
Geoscience data are used for a wide range of interests including:
exploration for hydrocarbons, and coal, and in environmental,
engineering, mining, construction, and land-use studies. In addition,
they are used in stratigraphy, sedimentology, paleontology,
geochemistry, structure, earthquake investigations, subsurface mapping,
seismic studies, and geologic reconstruction.
How are geoscience data acquired?
Geoscience data are generally donated to Federal and state
geological surveys by coal, oil and gas, mining, highway construction,
and environmental investigations; construction projects; quarry
operators; university research; and Federal and state projects.
What can examination of geoscience data reveal?
A detailed and accurate understanding of the rock beneath the
earth's surface can only be gained through exploratory drilling and
examination of geoscience data generated during exploration. Detailed
examination of well samples and cores is important in understanding
petroleum reservoirs, and mineral deposits which lead to more
discoveries of hydrocarbons and minerals critical to the Nation's
energy security and independence.
Conclusions reached using geoscience data provide information to
government and industry that allows intelligent planning decisions
concerning assessment and management of valuable natural and strategic
resources. Without these data, more time and effort will be consumed in
duplicated exploration and development and there would be a greater
chance of failure because of increased cost overruns and decreased
production. Intelligent planning decisions are made based on reliable
data.
How does geoscience preservation affect the economy?
Geoscience preservation leads to new discoveries, redevelopment of
mature oil and gas fields and mineral deposits, and infrastructure,
resulting in sustained economic growth and more investment in the
community and increased tax revenues. It also lowers exploration costs,
and increases efficiency and safety. Availability of geoscience data
allows more detailed preparation and development, better management of
natural resources, and provides solutions to scientific, economic, and
environmental problems and potential natural disasters.
Without good and efficient management of our current and future
resources and firm knowledge of where future supplies of these
resources can be found, economic development cannot be sustained. This
fact also begs the question: If our supply of strategic minerals from
foreign sources was interrupted for any reason, where would we find a
local source of that mineral? Geoscience data and the professional
papers generated from research using the subsurface data would be a
good place to begin the search.
How much does it cost to initially acquire geoscience data?
The process of field work, data acquisition and research, time
consuming and dangerous to attain. It costs millions of dollars to
acquire.
How would preservation of geoscience data affect future generations?
Preserving geoscience data would provide readily available data to
future generations, giving them opportunities for investigation,
development and evaluation which in turn could lead to new innovations
and discoveries. Using these preserved data may result in greater
success and predictability. Some data are irreplaceable and lack of
availability of the necessary tools, equipment and labor to reacquire
geoscience data may be cost prohibitive in the future. Preservation of
geoscience data will facilitate the training and education of the next
generation of geoscientists, and help with appraising water resources,
dealing with conservation, and mitigating hazards such as earthquakes
and landslides.
What are the advantages of maintaining a database and inventory of
geoscience data?
Samples and cores are of great value to industry and research.
There is a constant need to re-examine geoscience data available at
both Federal and state repositories. These data are an invaluable
resource as new geologic and engineering concepts evolve, as new
analytical instruments and techniques are developed, as new methods of
examination and interpretation emerge, and as advances are made in
technology and computer modeling. Our greatest gift is preserving our
data and passing our knowledge to the next generations.
How is having geoscience data readily available important to
geoscientist?
Readily available geoscience data will lower the costs and
increases the efficiency of reworking old reservoirs, reevaluating
environmental concerns and predicting natural hazards and using new
technology and new extraction enhancement techniques. In addition, they
can be used in the quest for a pristine and greener environment, by
facilitating clean and efficient energy. It is imperative that the next
generation be trained and educated, because knowledge is the key to
success. Using this wealth of data can contribute to continued economic
prosperity and energy independence, resulting in greater national
security.
Should the National Geological and Geophysical Data Preservation
Program Act of 2005 be extended to 2014?
For the most part, both Federal and state repositories are filled
to capacity, and have inadequate working space. In addition, many
repositories are overwhelmed by the extent of available collections.
Most repositories that have received funding from the National
Geological and Geophysical Data Preservation Program Act of 2005 are
making tremendous progress rescuing collections, and preserving,
identifying, inventorying, scanning and photographing their collections
while making the data available for inspection at the repository or on
their Web sites, and for this to continue, reauthorization of this Act
is justified and necessary.
______
Dr. Benishek. Thank you, Mr. Gooding.
Mr. Pagano, you may begin.
STATEMENT OF THEODORE A. PAGANO, P.G., P.E., GENERAL MANAGER,
MICHIGAN POTASH COMPANY, LLC
Mr. Pagano. Again, thank you. My name is Ted Pagano. I am
the founder and general manager of Michigan Potash Company.
Thank you, Dr. Benishek, for the recommendation to come before
Congress to speak on behalf of House Bill 5066.
Dr. Benishek thought about Michigan Potash Company when
House Bill 5066 came up because our story is a unique and
compelling one that really epitomizes the purpose of H.R. 5066.
So it is a unique one in which we utilized, or Michigan
Potash Company utilized, rescued and old geological data to
identify a critical strategic resource that actually
strengthens the U.S. balance of trade, helps our U.S. farmers
and potentially impacts food security.
Food security in geology doesn't tend to usually come to a
frame of reference or mind, but potash, potash is actually the
world's tightest-controlled commodity and it is responsible for
our food growth.
It is produced by only 13 producers in the entire world and
it comes from only 13 countries. Amongst all other commodities,
it is the tightest controlled.
Go ahead and turn it to the next slide.
This is a graphical example of where U.S. potash production
has come since its peak plateau in 1962. So the blue line shows
U.S. potash production, and the red line shows U.S.
consumption. The green line on the back side shows where U.S.
prices have come of recent times.
So since 1962 and at peak rates, potash production has
declined by 65 percent. Demand has increased by 195 percent, in
large part due to emerging competitive nations, and U.S. potash
import reliance has increased by 85 percent.
This is a picture also generated by the U.S. Geological
Survey and old historical data, of potash consumption by
county. The United States only has three places from where
potash comes.
Next to each of those red dots you can actually see when
commercial production was established. Most of our potash
production comes from New Mexico, from what is called the
designated potash reserve.
In 1939, it was identified as a strategic resource
important enough to protect. So it is protected yet today by
the Department of the Interior.
But it has become significantly depleted over the past 80
years. In fact, one of the potash producers in the designated
potash area will cease potash production there at the end of
this year. That leaves us with one potash producer
domestically.
Now, there is a little red dot there in Michigan in the
middle of the Corn Belt that reached commercial production in
1989.
We know very little about this. We knew very little about
this until about 3 years ago. This is the Hersey potash
facility in Michigan, one of the United States' only sources of
potash.
In 2008, this gentleman, Bill Harrison, the founder and
director of the Michigan Geological Repository for Research and
Education, drove up to Hersey, Michigan, to take back core in
his pickup truck, and he came across boxes and boxes, over
12,000 foot of core, which would cost today over $200 million
to replicate. It is one of the finest evaporative collections
that we have in the United States.
So he took it under his wing, brought it back to preserve.
And I think Dr. Benishek mentioned he is a beneficiary of the
prior 2005 Data Preservation Act. Without that, he couldn't
operate.
So a few years later we inquired as to the solid core
cuttings that he had. And, as it turns out, the youngest
commercial deposit of potash reaching production in 1989 is
also the world's highest-quality ore, globally speaking, and it
resides in the U.S. Corn Belt.
A beneficiary of the Data Preservation Act of 2005 enabled
the rediscovery of this critical mineral reserve enough in
place in Michigan to double the U.S. output for over a century
and a half.
So the control of a product in the hands of very few
creates price control around a resource needed by the United
States to sustain our farmers and the work that they do to feed
our families. The MPC story is one that pays H.R. 5066 forward
in a real and impactful way.
Thank you.
[The prepared statement of Mr. Pagano follows:]
Prepared Statement of Theodore A. Pagano, P.G., P.E., General Manager,
Michigan Potash Company, LLC on H.R. 5066
Michigan Potash Company, LLC (``MPC'') has been invited to give
testimony on H.R. 5066, the ``Data Preservation Act of 2014'', as a
result of its immediate experience with preserved geological data and
the Michigan Geological Repository for Research and Education
(``MGRRE'').
MGRRE was a beneficiary of the National Geological and Geophysical
Data Preservation Program Act of 2005, and requires these funds to
operate.
MGRRE was founded by William B. Harrison III, in 1982 to preserve
and research geological samples and data, for the specific purpose of
identifying value, both commercial and educational in Michigan's
natural resources. The Repository now archives the largest collection
of subsurface geological samples and data in the state. The collection
includes Michigan geological publications, geologic and subsurface
maps, driller's reports, well scout data, oil and gas well production
data, well test data, various types of wireline logs, drill cuttings
samples, drill core samples and other miscellaneous well and geological
information.
IN 2011, MPC became a direct beneficiary of MGRRE's preservation of
geological data that resulted in a critical and substantive geological
re-discovery that has the ability to strengthen U.S. agriculture,
farmers, food security, and balance of trade.
About Potash:
Potassium is one of the three primary nutrients essential to
support carbohydrate production and plant life. Potassium is supplied
in natural fertilizers to improve productivity, efficiency, and yields
of agribusiness. The major source of potassium is potash (potassium
chloride), extracted form sylvinite, a naturally occurring mineral
containing both potassium chloride (potash) and sodium chloride (table
salt). Since 1965, world consumption of potash grew from 12 million
tons, to an approximate 58 million tons today. In 50 years, potash
consumption has almost quadrupled. In the last two decades, potash
consumption has doubled.
The American farmer, the most efficient in the world, consumes
about 6 million tons of potash annually and globally, pays more than
any other farmer. Over 83 percent of U.S. potash consumption is
imported. Domestic potash supply comes principally from the Designated
Potash Area in New Mexico; established in 1939 as a strategic resource,
it has been and remains protected by the Secretary of the Interior.
Over the past 80 years, the Designated Potash Area has become
critically depleted.
In December of 2014, one of the two potash producers based in the
United States will cease potash production from the Designated Potash
Area, citing depletion and low ore grade.
Potash is the world's tightest controlled commodity. It is utilized
throughout the globe, but commercial production occurs in only 13
countries and from 13 companies.
About the Core Recovery:
A small manufacturing plant in the western rural setting of Hersey,
Michigan, for extracting and refining potash was opened in the late
1980s by Pittsburg Plate and Glass. Harrison, the founder of MGRRE,
said the company extracted subterranean rock cores all over Michigan
back in the 1980s and he was aware of their test drilling at the time,
but the company never revealed its findings to the public.
IMC Global purchased Pittsburg Plate and Glass' potash producing
segment, resulting in the largest potash producer in the world, and at
the time most critical to the Hersey's capital growth period, they did
not invest the capital Hersey needed to expand, thus it remained
``under the radar.''
The Hersey plant contacted MGRRE in 2008 stating it no longer
wanted to store the Michigan geological core samples it had amassed,
and offered to donate them to Western Michigan University.
Harrison accepted on behalf of Western Michigan University, and
drove up to Hersey in his pickup truck--only to discover there were
4,000 80-pound core samples--approximating 12,000 feet of drilling. The
drilling and replacement cost of this core, would be over $200 million
today. A moving van had to be hired to bring the boxed cores to the
Michigan Geological Repository for Research and Education, where they
were cataloged and stored.
About the Re-Discovery:
A few years later, following inquiries from MPC, MGRRE and MPC
worked collectively to have all of the cores tested by an independent
lab in Saskatchewan, provided the province's foremost expertise in
potash analysis. The drilling cores from Michigan ``turned out to be
the highest grade of potash anywhere in the world. It was just
remarkable,'' said Harrison. It is the purest and highest-grade potash
being produced globally--600 percent higher than that being produced in
New Mexico's vast Permian Basin and twice the grade of deposits found
in Canada and Russia. ``What blew our minds was that there were layers
in there that were essentially 100 percent of this potassium
chloride,'' said Harrison.
The Hersey Potash discovery in 1980, makes it the world's youngest
commercial discovery, and a very tightly kept secret.
As it turns out, and later discovered by MPC, Pittsburg Plate and
Glass had intended to double U.S. potash output from Hersey, Michigan,
effectively migrating the U.S.' domestic reliance from New Mexico to
Michigan. They coined it the `U.S. Potash Project.'
There is enough proven, commercial, potash sitting under Hersey,
Michigan to double U.S. output for over 150 years, and that's without
drilling any new test wells. MPC has worked quietly over the past 3
years to confirm the reserve could be technically, economically and
logistically put into production as it was originally intended by
Pittsburg Plate and Glass.
``One of the things that makes this so valuable is that it is an
incredibly rich deposit that is in easy reach of the enormous demand
from Midwest corn and soybean farmers who operate within a 500-mile
radius of this deposit,'' Harrison says. ``This is an opportunity for
new wealth to come from the use of natural resources never tapped
before.''
Some financial endeavors transfer wealth from one hand to another
by the trading of goods and services. The discovery of a new natural
resource, however, and its production, creates brand new Gross Domestic
Product, or GDP. At current prices, a simple in the ground value
exceeds $65 billion.
Linda Harrison, William's spouse and an administrator with MGRRE,
said the Michigan potash was obviously known about, as it was ``booked
as proven and probable'' in SEC documents filed by IMC Global when the
company stock traded on the New York stock exchange. However, the
promising discovery in Michigan was apparently forgotten within IMC
Global during its financial trials.
MPC and MGRRE were the first ones to cut open these vacuum-sealed
cores from the time they were originally packed.
MGRRE are not hired consultants nor investors, and have no
financial involvement with Michigan Potash.
References:
Daly, Pete (2013, September 13). Potash a Gold Mine for Michigan. The
Grand Rapids Business Journal.
Zipp, Yvonne (2013, September 10). Rediscovery of rare mineral deposit
by WMU geologists and private company could boost Michigan economy. The
Kalamazoo Gazette, Mlive.
Related Materials:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Dr. Benishek. Thank you, Mr. Pagano.
Mr. Phelps.
STATEMENT OF WALTER PHELPS, COUNCIL DELEGATE, NAVAJO NATION
Mr. Phelps. Thank you.
Good afternoon, Congressman Benishek, Chairman Lamborn,
Ranking Member Holt, members of the Subcommittee on Energy and
Mineral Resources. My name is Walter Phelps, and I am a Nation
Council Delegate and Chairman of the Navajo-Hopi Land
Commission of the Navajo Nation Council.
It is an honor to come before you to discuss the Navajo
Nation's support for House Resolution 5176. This legislation
would help to resolve a 4-decade-old Federal obligation to the
Navajo Nation that was authorized in the Navajo-Hopi Land
Settlement Act of 1974.
The Act settled the disputed boundaries between the Navajo
Nation and the Hopi tribe and resulted in the forced relocation
of over 10,000 Navajo citizens from what is now Hopi land. In
return for the lost acreage, the Navajo Nation was permitted to
select unencumbered Federal lands for the conveyance and to
trust for the Navajo Nation.
In the early 1980s, Navajo Nation selected parcels of land
known as Paragon Ranch in northern New Mexico. The Secretary of
the Interior has conveyed some of these parcels. Unfortunately,
a number of the parcels selected within the Paragon Ranch are
encumbered by the preference right lease applications held by
private entities. These parcels cannot be taken into trust for
the Navajo until the PRLAs are resolved.
A further complication evolved after the selection of these
parcels when the Federal Government initiated the Fossil Forest
and the Wilderness Study Area, effectively blocking the
development of these selected lands.
The BLM initiative is designed to protect these areas and
surrounding lands with historical and archeological assets.
There is therefore no legal process for deselection and
reselection of lands that would solve these problems.
Given the limited availability of BLM lands within the
mandated 18-mile boundary area, there is little opportunity to
easily fix this issue.
This legislation should establish that the naturally
existing boundary of the reservation includes the Navajo trust
lands that incorporate the satellite communities. The Navajo
Nation supports this legislation with the ability to deselect
and reselect land of equal value at the Nation's discretion.
Representative Ben Ray Lujan and Representative Cynthia
Lummis introduced House Resolution 5176 to provide the
statutory authorization to resolve these issues by providing a
mechanism to retire these remaining PRLAs. We appreciate their
efforts and hope that this committee will act on the
legislation before the end of this Congress.
Passage of this legislation would resolve one aspect of the
harsh effects experienced by the Navajo people due to the 1974
Navajo-Hopi Settlement Act. Further, it fulfills a promise made
by the Federal Government to the Navajo people 40 years ago.
Thank you.
Dr. Benishek. Thank you, Mr. Phelps.
[The prepared statement of Mr. Phelps follows:]
Prepared Statement of Walter Phelps, Navajo Nation Council Delegate on
H.R. 5176
Good afternoon Chairman Lamborn, Ranking Member Holt and members of
the Subcommittee on Energy and Mineral Resources. I am Walter Phelps,
Navajo Nation Council Delegate, and Chairman of the Navajo-Hopi Land
Commission. I am here to discuss the Navajo Nation's support for H.R.
5176. This important legislation brings to a close a four decade-old
Federal statutory obligation to the Navajo Nation that was authorized
in the Navajo Hopi Settlement Act of 1974.
I would like to thank Congressman Ben Ray Lujan and Congresswoman
Cynthia Lummis and their staff for introducing this legislation. I
would also like to take this opportunity to thank some of the members
of the subcommittee who have been strong supporters of the Navajo
Nation: Congressmen Bishop, Gosar (our former Representative), Mullin,
Grijalva, and Hanabusa. The Navajo Nation recognizes and appreciates
your tireless efforts working on behalf of the Navajo Nation and all
Native Nations.
The Navajo-Hopi Settlement Act settled the disputed boundaries
between the Navajo Nation and Hopi Tribe. The settlement led to the
relocation of Navajo citizens from what is now Hopi land, and the loss
of acreage from the Navajo Reservation. In return for the lost acreage,
the Navajo Nation was permitted to select comparable acreage on Federal
lands to be taken into trust for the Navajo Nation. In the 1974 Act,
Congress committed to provide the Navajo unencumbered lands that the
Nation would select from Federal lands managed by the BLM.
In the early 1980s, the Navajo Nation selected the parcels of
Federal land. The secretary of the Interior has since taken most of
those parcels into trust for the Navajo Nation. Unfortunately, a number
of the parcels selected by the Navajo Nation were encumbered by prior
mineral rights (PRLAs) held by private entities. These parcels are
unable to be taken into trust for the Navajo until the private mineral
rights are removed. The status of these parcels of land with valid
private mineral rights, and stipulated commercial quantities of coal,
remains unresolved.
Further complicating a resolution to this matter is that subsequent
to the Settlement Act, the Federal Government also provided two major
areas with protections against development: the Fossil Forest and the
Ah-Shi-Sle-Pah Wilderness Study Area on which these PRLAs existed and
on which the Navajo had selected parcels to be taken into trust. It is
the BLM's goal to protect areas closely surrounding the Park that are
replete with historical and archeological assets. Unfortunately, the
current law does not provide a mechanism for deselecting any of the
parcels and reselecting others. Further, given the limited availability
of BLM lands within the mandated 18-mile boundary limitation there is
little opportunity to easily fix this issue. Allowing for deselection
and reselection, and establishing that the boundary of the reservation
lies within the naturally existing boundaries of Navajo trust land
would alleviate these issues and allow the Navajo Nation to address the
BLM's concerns.
An important mechanism to un-encumber lands is the exchange of
existing PRLAs for competitive coal leasing bidding rights, essentially
``trading in'' the old PRLAs for credits that can be used to meet
future obligations under the Federal coal leasing program. However, as
potential administrative PRLA exchange discussions moved forward, the
Interior Department's solicitor discovered that Interior did not have
the authority to pay the resultant state share of credits. This would
significantly disadvantage states in the application of any bidding
credits.
Representatives Ben Ray Lujan and Cynthia Lummis introduced H.R.
5176 to provide that statutory authorization to resolve of all of these
issues, most importantly the Federal obligation to the Navajo Nation,
by providing a mechanism to retire these remaining PRLAs. The
legislation:
1. Authorizes the Secretary to negotiate a value for these minerals
currently held by private interests;
2. Authorizes the exchange of the mineral rights for a credit in the
amount of the negotiated value to the private interest, to
be applied in other Federal leasing activities, and;
3. Authorizes the Secretary to make ``state share'' payments to any
relevant state in which the bidding credits are applied.
It is important to note that while the selection of the lands in
question result from the terms of the Navajo-Hopi Land Settlement Act,
this is solely a Navajo/Arch/New Mexico issue. The lands selected by
the Hopi Tribe for conveyance were solely within the state of Arizona,
and the rights therein have already been transferred; it is only the
Navajo Nation that has yet to finalize its land selection and transfer.
Completion of this exchange does not require that the Hopi agree to the
terms contained within the legislation.
Passage of this legislation would bring to a close one element of
the long painful experiences that the Navajo people have experienced
due to the 1974 Navajo Hopi Land Settlement Act. Further it fulfills a
promise made by the Federal Government to the Navajo Nation 40 years
ago.
Thank you.
______
Dr. Benishek. And, finally, Mr. Nedd.
STATEMENT OF THE HON. MICHAEL NEDD, ASSISTANT DIRECTOR, ENERGY,
MINERALS & REALTY MANAGEMENT, BUREAU OF LAND MANAGEMENT, U.S.
DEPARTMENT OF THE INTERIOR
Mr. Nedd. Mr. Chairman, Ranking Member, and members of the
subcommittee, thank you for the opportunity to present the
views of the Department of the Interior on these two bills. I
will briefly summarize our views and ask that the entire
statement be included in the record.
I am accompanied today by Mr. Kevin Gallagher, Associate
Director for the U.S. Geological Survey of Core Science
Systems. Mr. Gallagher is here to answer questions relating to
H.R. 5066.
H.R. 5066, the Data Preservation Act of 2014, reauthorizes
the National Geological and Geophysical Data Preservation
Program through 2019. Through this partnership with the State
Geological Survey, the Department plays a leading role in the
Federal collection, management and preservation of geological
and geophysical data.
Since 2007, the program, which is administered by the U.S.
Geological Survey, has provided 44 states with almost $4.6
million, which, when matched by the states, amount to over $9
million invested in the rescue and preservation of geoscience
collection.
The Department supports H.R. 5066, the Data Preservation
Act of 2014, in order to provide continued funding for the
states and Federal partnership, ensuring the rescue and
continued preservation of geological and geophysical samples
and data.
H.R. 5176 would authorize the Secretary of the Interior to
retire certain coal leases in exchange for coal bidding rights
elsewhere on Federal lands.
The Department appreciates the work of the cosponsors and
supports the goal of seeking resolution to long-standing,
unresolved mineral development issues. We would like to
continue discussions with the sponsors and the subcommittee on
how best to achieve the intent of this bill while minimizing
the cost to taxpayers and ensuring continued protection of
important environmental and cultural resources.
Prior to 1976, the Secretary was authorized by the Mineral
Leasing Act to issue permits to prospect for coal on public
land in areas where no known coal deposit existed. And if
commercial quantities of coal were demonstrated, permittees
could file a preference right lease application, or a PRLA, to
develop the coal.
In 1976, this authority was repealed and the BLM began
working to process existing valid PRLAs. Currently, only 11
PRLAs remain, and they are in northern New Mexico just outside
Chaco Cultural Natural Historical Park. This area has
significant environmental, cultural, and other important
resources, including Wilderness Study Area and areas of
critical environmental concern.
The BLM has worked with the holder of the PRLAs on a
settlement agreement which would exchange 11 PRLAs for an equal
value in Federal bidding credits elsewhere.
H.R. 5176 provides the authority to ensure that all aspects
of the exchange could be completed. The Department notes that
the land currently encumbered by the PRLAs have been selected
by the Navajo Nation under the Navajo-Hopi Land Settlement Act.
The Navajo Nation has sought to deselect these lands and select
others, but is unable to complete the action without further
legislation.
In order to ensure that the environmental, cultural, and
other important resources in this area are fully protected, the
Department encourages Congress to include the authority for the
Navajo Nation to deselect lands in this legislation. Should
that occur, the BLM would welcome the opportunity to manage
these lands to protect the significant and important values.
We look forward to continuing to work with the sponsors to
achieve the goals of H.R. 5176. Thank you for the opportunity
to present our testimony. I am happy to answer any questions
you may have.
Dr. Benishek. Thank you, Mr. Nedd.
[The prepared statement of Mr. Nedd follows:]
Prepared Statement of Michael Nedd, Assistant Director for Energy,
Minerals & Realty Management, Bureau of Land Management, Department of
the Interior on H.R. 5176
Thank you for the opportunity to present the views of the
Department of the Interior (Department) on H.R. 5176, which would
authorize the Secretary of the Interior (Secretary) to retire a certain
type of Federal coal lease rights--``preference right lease
applications'' or PRLAs--in exchange for coal bidding rights elsewhere
on Federal lands. The Department appreciates the work of the co-
sponsors and supports the goal of seeking resolution to long-standing
unresolved mineral development issues. We would like to continue
discussions with the sponsors and the subcommittee on how best to
achieve the intent of this bill while minimizing the cost to taxpayers
and ensuring continued protection of environmental and cultural
resources.
background
Prior to 1976, the Secretary was authorized by the Mineral Leasing
Act (MLA) to issue permits to prospect for coal on public lands in
areas where no known coal deposits existed. If coal was discovered, the
prospector could file a preference right lease application (PRLA). If
commercial quantities of coal were demonstrated, the prospector was
entitled to a ``preference right lease,''--a noncompetitive, exclusive
right to mine coal on these public lands for an initial 20-year term.
The Federal Coal Leasing Amendments Act of 1976 repealed the
Secretary's authority to issue prospecting permits and terminated the
preference right leasing program, subject to valid existing rights.
However, prospecting permittees who have filed a PRLA prior to 1976
continue to be recognized as having valid existing rights that require
adjudication by the BLM. In 1987, the BLM promulgated regulations
exclusively for processing these pre-1976 PRLAs.
To date, all PRLAs have been processed, except for 11 held by the
Ark Land Company (Ark Land), covering approximately 21,000 acres in
northern New Mexico. These PRLAs are within 3 miles of Chaco Culture
National Historic Park and in the Ah-Shi-Sle-Pah Wilderness Study Area
(WSA), Fossil Forest Research Natural Area, and North Road and Ah-Shi-
Sle-Pah Road Areas of Critical Environmental Concern (ACECs). These
areas have cultural archaeological, paleontological, primitive
recreational, and environmental significance, and are not an ideal site
for commercial development of the coal. In the interest of protecting
the important cultural and environmental resources in the area, in
2012, after extensive investigation, litigation and negotiation, the
BLM New Mexico State Office and Ark Land signed a settlement agreement
that would seek to exchange the 11 PRLAs for an equal value in Federal
bidding credits for Federal coal within the borders of the state of
Wyoming. While this exchange can currently be completed through
existing regulations (43 CFR Subpart 3435), further authority is
necessary to meet a condition of the settlement agreement that requires
taxpayers pay the share of sums that would have otherwise been paid
from bonus bid receipts to the state of Wyoming or any other party
under the bid-sharing formula.
In addition, as part of the Navajo-Hopi Land Settlement Act (P.L.
93-531), the Navajo Nation selected approximately 12,000 acres of lands
which overlap the PRLAs and are currently included in protected areas
such as the Ah-Shi-Sle-Pah WSA and the North Road and the Ah-Shi-Sle-
Pah Road ACECs. These selections have not yet been completed due to the
encumbrance of the PRLAs. The Navajo Nation has sought to ``deselect''
these lands and select others, but is unable to complete the action
without further legislation. In the absence of new legislative
authority, the sensitive lands currently under discussion would
continue to be available for development.
h.r. 5176
H.R. 5176 would authorize the Secretary of the Interior to retire
coal PRLAs by issuing bidding rights in exchange for relinquishment of
the PRLAs. The bill would define a ``bidding right'' as an appropriate
legal instrument that may be used in lieu of a monetary payment for a
bonus bid in a coal sale under the MLA, or as monetary credit against a
rental or royalty payment due under a Federal coal lease. Thus, a
bidding right could be used in lieu of cash for part or all of a
winning bonus bid in a subsequent coal lease sale, or for rental or
royalty owed under a Federal coal lease. H.R. 5176 further provides for
payment of 50 percent of the amount of the bidding right used to the
state in which the newly issued coal lease--or in which the lease under
which a royalty payment is made--is located. The payments to the state
would be made from revenues received under the MLA that otherwise would
be deposited to miscellaneous receipts. Under H.R. 5176, bidding rights
would be fully transferable to any other person and the bidding rights
holder would have to notify the Secretary of the transfer. The bidding
rights would terminate after 5 years, unless the rights could not be
exercised within the 5-year period under certain conditions outlined in
the bill.
The Department supports the goal of H.R. 5176 to provide
legislative authority for a solution to the long-standing coal PRLA
issue in northern New Mexico. However, the Administration is concerned
about the likely costs of this legislation as drafted. Based on the
terms of the legislation, and in the context of the Ark Land settlement
agreement, it appears these costs would likely fall between $53 million
and $240 million, which provides challenges for identifying suitable
offsets. If enacted, the BLM, consistent with 43 CFR Subpart 3435,
using standard appraisal practices and in coordination with the
Department's Office of Valuation Services, will determine on the fair
market value of the resources.
In addition, the Department notes that if the bill is enacted as
currently written and the PRLAs are relinquished, the Navajo Nation
would hold the 12,000 selected acres in fee, and would have the
authority to develop the resources--including coal--as the tribe sees
fit. The Navajo Nation has indicated that it is interested in
deselecting these lands and selecting other lands to fulfill its
entitlement. If legislation is to be enacted to resolve the status of
PRLAs in this area, the Department would like to ensure that the
resolution also provides for permanent protection of these resources
from future impacts.
In order to ensure that the cultural and environmental resources in
this area are fully protected, the Department encourages the Congress
to work with the Navajo Nation to effectuate the deselection of these
lands as part of this legislation. Should this deselection occur, the
land would revert to the BLM. If that occurs, the BLM would welcome the
opportunity to manage these valuable lands to protect their resource
values in a manner consistent with the Ah-Shi-Sle-Pah WSA, and the
North Road and the Ah-Shi-Sle-Pah Road ACECs.
conclusion
Thank you for this opportunity to present testimony on H.R. 5176.
The Department thanks the sponsors for their dedication to this issue.
We look forward to continuing to work with the sponsors to achieve
these goals.
______
Dr. Benishek. Thank you all for your statements.
We will begin the questioning now. Members are limited to 5
minutes for their questions, but we may have an additional
round as needed.
I recognize myself for 5 minutes for my questions. And
members of the committee may have additional questions for the
record, and I will ask you to respond to those in writing.
Mr. Pagano, thanks for taking time out of your schedule to
be here today to tell us a little bit more about your company.
I am interested in how this Michigan Potash Company came into
being. So I have a couple questions.
How did you find these cores? I mean, can you kind of lead
me to the path of how did you form Michigan Potash and then
find the core? Tell me about how this all started.
Mr. Pagano. When we began this project, the core wasn't
fully cataloged yet at MGRRE, and we had gone down the road to
very quietly secure an asset that once was secured by Pittsburg
Plate and Glass, a potash producer at the time, in 1980.
Following resecuring that asset, then it came to our
attention that the core was fully cataloged now at MGRRE and
quickly shortcutted our path toward realizing the impact of the
potash deposits in Michigan. So we are a relatively young
company.
Dr. Benishek. Where did you find the cores? Where were they
at when you came into the picture?
Mr. Pagano. Well, the cores were underneath Bill's house.
So they were already at MGRRE. So the geological work that we
had done began prior to us becoming aware of the availability
of the core.
Dr. Benishek. So it must have been kind of exciting to
realize that you had discovered $65 billion worth of potash
there.
How did you feel when that happened? Did you check your
numbers?
Mr. Pagano. You know, potash is an industrial mineral. When
it does occur, it occurs en masse. And so initially, I had been
speaking to the prior geologist that was familiar with this
core when it was extracted. And he had told me that, when you
see it, you will be astounded, and I didn't really believe him.
When we stepped into MGRRE, I quite frankly didn't believe
it when we did pull it out. I was astounded.
And Bill Harrison, he picked up a core and he says, ``Ted,
I can look at this and it looks like it is about 60 percent
potash.''
And I said, ``Bill, it is not. That doesn't exist.''
And he said, ``It looks to me like it is 60 percent KCL,
maybe 70 percent.''
I said, ``No. I doubt it.''
We sent it off to the Saskatchewan Research Council,
verified that it was, in fact, some of the highest grade,
cleanest potash that exists in the world.
Dr. Benishek. I have a question for some of the other folks
there.
How could this program be improved? I mean, it seems to me
this is pretty valuable data. It is really expensive to
collect, and I think it provides valuable information that
would benefit our society for centuries.
So maybe each of you could just give me what you think is
the most important thing that we should try to improve with the
program.
Mr. Arthur.
Mr. Arthur. Thank you, Congressman. Can you hear me all
right?
Dr. Benishek. Yes.
Mr. Arthur. OK. Well, the program, which has been going on
since 2007 with regard to funding, all of the infrastructure is
set up.
The U.S. Geological Survey has done a great job
administering the program, building the national geological
data catalog into which all of this information will flow,
facilitated inventory of all of the geoscience data collections
in the states that participated. It would be good to see all
states in the country participate.
But, furthermore, all of the groundwork is laid. The two
gaps are the fact that there are a lot of facilities that are
hitting a wall, literally, with regard to their collections and
they need to expand.
Florida, for example, is addressing this and we are buying
maybe another 10 or 15 years of core storage, but that doesn't
address the paper records and the digitizing and georeferencing
of all of this other information.
So the bottom line is to just simply continue the work and
increase the funding. And that, to me, would be the primary
take-home message is the appropriation.
Dr. Benishek. Mr. Gooding, do you have an opinion other
than the funding?
Mr. Gooding. Yes, I have been in charge of the facility in
Kentucky for the last 37 years, and during that time, I have
traveled to 35 facilities, both private, Federal and state,
from Canada all the way to Texas, looking at their facilities.
And if there is one thing each repository in the country has in
common, it is that they are out of space. They are completely
out of space.
In Kentucky, we are stacking pallets three, four, six high
in rows. So when someone needs to see the collection in a
particular row, maybe 20 pallets have to be pulled out just to
access one well.
So with the funding that the states have been getting from
the Geological Survey and from this program over the last few
years, it went to do rescue collections or repair or to
identify collections. But the states now need more funding to
do expansion, you know, whether it is Alaska or Florida----
Dr. Benishek. Right.
Mr. Gooding [continuing]. All over the country. I was in
Austin at the Survey there, and they are pretty much out of
room, too.
Dr. Benishek. All right. Thank you.
And I am over my time.
But I would like to recognize my colleague from Wyoming,
Mrs. Lummis.
Mrs. Lummis. And I would like to compliment the Chairman on
your absolutely beautiful voice, especially when you hook it up
to a microphone. You should be in radio, not in Congress.
You know, Mr. Nedd, I have to tell you, I have been here
long enough to know that, when the Administration comes in with
a statement that says we would like to continue to work with
the sponsors, that that is code, and that is code for, ``We
don't like this bill, but we don't want to say it in public.''
It is a little bit like me being a parent and, when my
daughter would ask me for something, I would say, ``We will
see.'' And it didn't take her long to figure out that ``We will
see'' meant I am just trying to put this off, I don't want to
talk about it right now, but I am probably not too keen on this
idea.
What is the hang-up here?
Mr. Nedd. Congresswoman, certainly, as I said in my
statement, we want to work with the committee to ensure we
understand how the funding will be made for this. And the BLM
worked for this settlement and, as you know, the BLM was
involved--or the Department was involved in the drafting
service.
So again, we believe the bill is heading in the right step
and we want to achieve the goal, but we just feel there are a
few things that need to be discussed with the sponsors and the
committee.
Mrs. Lummis. OK. So that means--well, I will tell you how
the funding works, because I am trying to be a good guy here.
This bill doesn't have anything to do with Wyoming. This
has to do with trying to help out the Navajo and trying to get
Ark Land Company's property rights monetized.
It will also help prevent a claim for a property rights
taking. And that could be very expensive for the Department
because, if Ark Land Company chooses to sue on a takings claim,
the amount that they can quantify might even exceed the
negotiated value of the bidding credits under the settlement.
Now, you will recall, that is where I come in. These
bidding credits are coming out of my state. So when you say the
money is coming from Federal land elsewhere, it is coming
from--I am the ``elsewhere.'' It is from Wyoming.
So my role here is just to try to be a good guy and help
the Navajo and the Ark Land Company settle this matter and get
on with this agreement.
Now, let me ask you, Mr. Phelps, do you think this
settlement agreement is an equitable solution for the Federal
Government, Ark Land, the Navajo, and the states impacted?
Mr. Phelps. Thank you for your question.
The position of the Navajo Nation basically goes back to
the Settlement Act of 1974, where the Federal Government
committed to provide unencumbered lands and lands that were
taken. So----
Mrs. Lummis. I appreciate that, and I get that, and I am
sorry to interrupt you. I was kind of hoping that you could
just say ``yes'' or ``no.''
Can you say ``yes'' or ``no''? Do you think this is an
equitable deal?
Mr. Phelps. Well, the value question, basically, is of
equal value.
Mrs. Lummis. Thank you. Perfect.
Mr. Phelps. This must be of equal value.
Mrs. Lummis. Like that. OK.
Mr. Nedd, do you disagree with that?
Mr. Nedd. Congresswoman, again, we entered into a
settlement, and under the settlement term we worked with Arch
Coal to put forward some framework on how we can value the
coal.
So, again, we believe the goals are right of this bill.
And, again, the Administration just wants to make certain it
works with the sponsor to minimize the impact on taxpayers.
Mrs. Lummis. OK. I am one of the sponsors. The other
sponsor is not here.
Mr. Nedd. So we----
Mrs. Lummis. So let's talk. Here we are.
Mr. Nedd. We would love to work with you, Congresswoman,
and we certainly can do it here or we can come back and visit
with you. But we would love to discuss with the sponsors how to
do that and the committee.
Mrs. Lummis. Well, you know what? Time is kind of
a'wasting. You know, we are down to the wire here. So my time
is expired. But, man, I would just like to get this done.
Dr. Benishek. I would like to maybe try to finish it off. I
agree with Mrs. Lummis.
What is it you want?
I can give you more time, Mrs. Lummis.
Mr. Nedd. As we said, the Administration would certainly
like to work with the committee to figure out how to minimize--
--
Dr. Benishek. Well, she's asking what exactly, what are you
asking for?
Mr. Nedd. Well, Congressman, there is a range that has came
up between $53 million and $240 million. And so the
Administration would like to work through the committee to
figure out how to minimize the cost to the taxpayer--$53
million to $240 million is a wide variety--and then to figure
out how to minimize the taxpayers' impact. And I think that is
the accent here.
The second accent is to really ensure Congress work with
the Navajo Nation so they can have a way to deselect the lands.
Those are the two major accents of the bill, or the
Administration is asking.
Mrs. Lummis. How does delaying this bill moving forward
advance that conclusion? Would you like to have the bill
written so it uses a specific number?
Mr. Nedd. Again, Congresswoman, I believe it is going to
take some discussion. But certainly $53 million always sound
better than $240 million.
Second thing. Would like to ensure there is some way the
bill takes into account how to allow the Navajo to deselect the
land so, therefore, the Interior would be able to manage these
lands for its important environmental and cultural resources.
So, again, I believe those are the major parts.
Mrs. Lummis. Fair enough, Mr. Nedd. You answered my
question. And I am happy to work with you. And I appreciate
getting down to the specifics here. So thanks.
Mr. Chairman, I yield back. And thank you for giving me the
opportunity to explore it right here.
Dr. Benishek. Might as well try to finish it off a little
bit. Yes.
Mrs. Lummis. OK. Thank you very much.
Dr. Benishek. Well, one final order of business.
I ask unanimous consent to enter into the record a
submission in support of H.R. 5066 from the Michigan Geological
Survey, the Michigan Geological Repository for Research and
Education.
And hearing no objection, so ordered.
If there is no other business, without objection, the
committee is adjourned.
[Whereupon, at 2:59 p.m., the subcommittee was adjourned.]
[ADDITIONAL MATERIALS SUBMITTED FOR THE RECORD]
Prepared Statement of Kevin Gallagher, U.S. Geological Survey, U.S.
Department of the Interior on H.R. 5066
Thank you, Mr. Chairman, for inviting the Department of the
Interior to provide its views on H.R. 5066, the Data Preservation Act
of 2014, to reauthorize the National Geological and Geophysical Data
Preservation Program through 2019.
The Energy Policy Act of 2005 established the National Geological
and Geophysical Data Preservation Program (NGGDPP) and outlined the
following goals:
Archive geological, geophysical, and engineering data,
maps, well logs, and samples;
Provide a national catalog of archived materials; and
Provide technical and financial assistance to state
geological surveys and relevant Department of the Interior
bureaus for archived materials.
Through this partnership with the state geological surveys, the
Department of the Interior plays a leading role in the Federal
collection, management and preservation of geological and geophysical
data.
Since 2007 the NGGDPP, administered by the U.S. Geological Survey,
has provided 44 states with almost $4.6M which, when matched by the
states, amounts to over $9M invested in the rescue and preservation of
geoscience collections. These preserved data have been used in
discoveries that have brought significant benefit to local and state
economies. In addition, over 2.6M geoscience data records have been
entered into the National Digital Catalog, an Internet-accessible
library describing the geologic collections located in Federal and
state repositories.
There are numerous examples of Federal and state partnerships that
we have funded via this program, and we would like to highlight three
of those.
In 2009, the Michigan Geological Survey received Program
funds to prepare accurate inventories of rescued core from
western Michigan. A search of this inventory by a potash
company scientist revealed a large deposit of high grade
potassium chloride, a critical ingredient in fertilizer. In
September 2013, this deposit was estimated to be worth
$65M, and if mined, would create an estimated 300 jobs.
Most of the characterization work for tar sand deposits in
western Kentucky took place in the early 1900s, with a
second brief round of interest after the 1974 Arab oil
embargo. Using funds from this program, the Kentucky
Geological Survey was able to preserve these historical tar
sand cores that had been slated for disposal. Inspection of
samples in these cores by exploration geologists led to the
initiation of a $5M exploration program that culminated in
a proven deposit in Kentucky.
Last, preservation of geological and geophysical data and
samples has proven invaluable in the continued research on
the Bakken shale from the Williston Basin in North Dakota
and Montana. The USGS Core Research Center in Denver houses
core samples from this region. Over the last 10 years,
these well-preserved cores have been accessed providing
many private, academic and Federal research scientists with
information key in the discovery and advancement of the
existing and potential energy resources in the Williston
Basin.
The Department of the Interior supports H.R. 5066, the Data
Preservation Act of 2014, in order to provide continued funding for
state and Federal partnerships ensuring the rescue and continued
preservation of geological and geophysical samples and data. We thank
Representative Benishek for introducing this legislation.
Preserving endangered geoscience collections is significantly more
cost effective than recollecting these samples and data. Properly
housing, inventorying and curating these collections, as we have
identified for you today, provides an invaluable resource that
underpins a wide variety of research, which can lead to important
discoveries, new jobs and a stronger economy.
Mr. Chairman, again, we thank you for this opportunity. We will be
pleased to respond to any questions you may have.
______
Submission for the Record in Support of H.R. 5066 from the Michigan
Geological Survey, the Michigan Geological Repository for Research and
Education
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