[Congressional Record Volume 141, Number 81 (Tuesday, May 16, 1995)]
[Senate]
[Pages S6730-S6735]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       ALASKA POWER ADMINISTRATION ASSET SALE AND TERMINATION ACT

  The Senate continued with the consideration of the bill.


                      Amendment No. 1078 Withdrawn

  Mr. MURKOWSKI. Mr. President, I withdraw my amendment No. 1078 at 
this time.
  The PRESIDING OFFICER. The Senator has that right and the amendment 
is so withdrawn.
  The amendment (No. 1078) was withdrawn.


                           Amendment No. 1101

  (Purpose: To provide for the energy security of the Nation through 
 encouraging the production of domestic oil and gas resources in deep 
  water on the Outer Continental Shelf in the Gulf of Mexico, and for 
                            other purposes)

  Mr. JOHNSTON addressed the Chair.
  The PRESIDING OFFICER. The Senator from Louisiana.
  Mr. JOHNSTON. Mr. President, I send an amendment to the desk and ask 
for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report the amendment.
  The bill clerk read as follows:

       The Senator from Louisiana [Mr. Johnston], for himself, Mr. 
     Murkowski, and Mr. Breaux, proposes an amendment numbered 
     1101.

  Mr. JOHNSTON. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER (Mr. ABRAHAM). Without objection, it is so 
ordered.
  The amendment is as follows:

       At the appropriate place in the bill, insert the following 
     as a new Title III:

     ``TITLE III: OUTER CONTINENTAL SHELF DEEP WATER ROYALTY RELIEF

       Sec. 301.--This Title may be referred to as the ``Outer 
     Continental Shelf Deep Water Royalty Relief Act''.
       Sec. 302. Amendments to the Outer Continental Shelf Lands 
     Act.--Section 8(a) of the Outer Continental Shelf Lands Act, 
     (43 U.S.C. 1337(a)(3)), is amended by striking paragraph (3) 
     in its entirety and inserting the following:
       ``(3)(A) The Secretary may, in order to--
       ``(i) promote development or increased production on 
     producing or non-producing leases; or
       ``(ii) encourage production of marginal resources on 
     producing or non-producing leases; through primary, 
     secondary, or tertiary recovery means, reduce or eliminate 
     any royalty or net profit share set forth in the lease(s). 
     With the lessee's consent, the Secretary may make other 
     modifications to the royalty or net profit share terms of the 
     lease in order to achieve these purposes.
       ``(B)(i) Notwithstanding the provisions of this Act other 
     than this subparagraph, with respect to any lease or unit in 
     existence on the date of enactment of the Outer Continental 
     Shelf Deep Water Royalty Relief Act meeting the requirements 
     of this subparagraph, no royalty payments shall be due on new 
     production, as defined in clause (iv) of this subparagraph, 
     from any lease or unit located in water depths of 200 meters 
     or greater in the Western and Central Planning Areas of the 
     Gulf of Mexico, including that portion of the Eastern 
     Planning Area of the Gulf of Mexico encompassing whole lease 
     blocks lying west of 87 degrees, 30 minutes West longitude, 
     until such volume of production as determined pursuant to 
     clause (ii) has been produced by the lessee.
       ``(ii) Upon submission of a complete application by the 
     lessee, the Secretary shall determine within 180 days of such 
     application whether new production from such lease or unit 
     would be economic in the absence of the relief from the 
     requirement to pay royalties provided for by clause (i) of 
     this subparagraph. In making such determination, the 
     Secretary shall consider the increased technological and 
     financial risk of deep water development and all costs 
     associated with exploring, developing, and producing from the 
     lease. The lessee shall provide information required for a 
     complete application to the Secretary prior to such 
     determination. The Secretary shall clearly define the 
     information required for a complete application under this 
     section. Such application may be made on the basis of an 
     individual lease or unit. If the Secretary determines that 
     such new production would be economic in the absence of the 
     relief from the requirement to pay royalties provided for by 
     clause (i) of this subparagraph, the provisions of clause (i) 
     shall not apply to such production. If the Secretary 
     determines that such new production would not be economic in 
     the absence of the relief from the requirement to pay 
     royalties provided for by clause (i), the Secretary must 
     determine the volume of production from the lease or unit on 
     which no royalties would be due in order to make such new 
     production economically viable; except that for new 
     production as defined in clause (iv) (aa), in no case will 
     that volume be less than 17.5 million barrels of oil 
     equivalent in water depths of 200 to 400 meters, 52.5
      million barrels of oil equivalent in 400-800 meters of 
     water, and 87.5 million barrels of oil equivalent in water 
     depths greater than 800 meters. Redetermination of the 
     applicability of clause (i) shall be undertaken by the 
     Secretary when requested by the lessee prior to the 
     commencement of the new production and upon significant 
     change in the factors upon which the original 
     determination was made. The Secretary shall make such 
     redetermination within 120 days of submission of a 
     complete application. The Secretary may extend the time 
     period for making any determination or redetermination 
     under this clause for 30 days, or longer if agreed to by 
     the applicant, if circumstances so warrant. 
     [[Page S6731]] The lessee shall be notified in writing of any 
     determination or redetermination and the reasons for and 
     assumptions used for such determination. Any determination or 
     redetermination under this clause shall be a final agency 
     action. The Secretary's determination or redetermination 
     shall be judicially reviewable under section 10(a) of the 
     Administrative Procedures Act, 5 U.S.C. Sec. 702, only for 
     actions filed within 30 days of the Secretary's determination 
     or redetermination.
       ``(iii) In the event that the Secretary fails to make the 
     determination or redetermination called for in clause (ii) 
     upon application by the lessee within the time period, 
     together with any extension thereof, provided for by clause 
     (ii), no royalty payments shall be due on new production as 
     follows:
       ``(I) For new production, as defined in clause (iv)(I) of 
     this subparagraph, no royalty shall be due on such production 
     according to the schedule of minimum volumes specified in 
     clause (ii) of this subparagraph.
       ``(II) For new production, as defined in clause (iv)(II) of 
     this subparagraph, no royalty shall be due on such production 
     for one year following the start of such production.
       ``(iv) For purposes of this subparagraph, the term `new 
     production' is--
       ``(I) any production from a lease from which no royalties 
     are due on production, other than test production, prior to 
     the date of enactment of the Outer Continental Shelf Deep 
     Water Royalty Relief Act; or
       ``(II) any production resulting from lease development 
     activities pursuant to a Development Operations Coordination 
     Document, or supplement thereto that would expand production 
     significantly beyond the level anticipated in the Development 
     Operations Coordination Document, approved by the Secretary 
     after the date of enactment of the Outer Continental Shelf 
     Deep Water Royalty Relief Act.
       ``(v) During the production of volumes determined pursuant 
     to clauses (ii) or (iii) of this subparagraph, in any year 
     during which the arithmetic average of the closing prices on 
     the New York Mercantile Exchange for light sweet crude oil 
     exceeds $28.00 per barrel, any production of oil will be 
     subject to royalties at the lease stipulated royalty rate. 
     Any production subject to this clause shall be counted toward 
     the production volume determined pursuant to clause (ii) or 
     (iii). Estimated royalty payments will be made if such 
     average of the closing prices for the previous year exceeds 
     $28.00. After the end of the calendar year, when the new 
     average price can be calculated, lessees will pay any 
     royalties due, with interest but without penalty, or can 
     apply for a refund, with interest, of any overpayment.
       ``(vi) During the production of volumes determined pursuant 
     to clause (ii) or (iii) of this subparagraph, in any year 
     during which the arithmetic average of the closing
      prices on the New York Mercantile Exchange for natural gas 
     exceeds $3.50 per million British thermal units, any 
     production of natural gas will be subject to royalties at 
     the lease stipulated royalty rate. Any production subject 
     to this clause shall be counted toward the production 
     volume determined pursuant to clauses (ii) or (iii). 
     Estimated royalty payments will be made if such average of 
     the closing prices for the previous year exceeds $3.50. 
     After the end of the calendar year, when the new average 
     price can be calculated, lessees will pay any royalties 
     due, with interest but without penalty, or can apply for a 
     refund, with interest, of any overpayment.
       ``(vii) The prices referred to in clauses (v) and (vi) of 
     this subparagraph shall be changed during any calendar year 
     after 1994 by the percentage, if any, by which the implicit 
     price deflator for the gross domestic product changed during 
     the preceding calendar year.''
       Sec. 303. New Leases.--
       Section 8 (a)(1) of the Outer Continental Shelf Lands Act, 
     as amended, (43 U.S.C. 1337(a)(1)) is amended as follows:
       (1) Redesignate section 8(a)(1)(H) as section 8(a)(1)(I); 
     and
       (2) Add a new section 8(a)(1)(H) as follows:
       ``(H) cash bonus bid with royalty at no less than 12 and 
     \1/2\ per centum fixed by the Secretary in amount or value of 
     production saved, removed, or sold, and with suspension of 
     royalties for a period, volume, or value of production 
     determined by the Secretary. Such suspensions may vary based 
     on the price of production from the lease.''
       Sec. 304. Lease Sales.--For all tracts located in water 
     depths of 200 meters or greater in the Western and Central 
     Planning Area of the Gulf of Mexico, including that portion 
     of the Eastern Planning Area of the Gulf of Mexico 
     encompassing whole lease blocks lying west of 87 degrees, 30 
     minutes West longitude, any lease sale within five years of 
     the date of enactment of this title, shall use the bidding 
     system authorized in Section 8(a)(1)(H) of the Outer 
     Continental Shelf Lands Act, as amended by this title, except 
     that the suspension of royalties shall be set at a volume of 
     not less than the following:
       (1) 17.5 million barrels of oil equivalent for leases in 
     water depths of 200 to 400 meters;
       (2) 52.5 million barrels of oil equivalent for leases in 
     400 to 800 meters of water; and
       (3) 87.5 million barrels of oil equivalent for leases in 
     water depths greater than 800 meters.
       Sec. 305. Regulations.--The Secretary shall promulgate such 
     rules and regulations as are necessary to implement the 
     provisions of this title within 180 days after the enactment 
     of this Act.

  Mr. JOHNSTON. Mr. President, I ask unanimous consent that Senator 
Murkowski be added as a cosponsor to this amendment, and that David 
Applegate, a fellow of the Energy and Natural Resources Committee, be 
given privileges of the floor during pendency of this amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. JOHNSTON. I ask unanimous consent that Senator Breaux be added as 
a cosponsor.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. JOHNSTON. Mr. President, gross oil imports to the United States 
today are over 50 percent, and they are scheduled to be over 60 percent 
by the year 2010. For this reason, in February of this year, President 
Clinton announced the President's finding that the Nation's growing 
reliance on imports of crude oil and refined petroleum products 
threaten the Nation's security because of the increased vulnerability 
of U.S. oil supply disruptions.
  This being the problem, how do we solve it at a time of growing 
deficits, at a time of money shortage, at a time when we have no money 
to apply to any kind of energy technology? The way we do it, Mr. 
President, is by this amendment, which provides that with respect to 
existing leases in the Gulf of Mexico in over 200 meters of water, 
where the development expenses are very, very great and where wells 
otherwise would not be drilled unless given some incentive, there be a 
discretionary incentive given for both existing leases and new leases 
according to a carefully worked out formula, worked out with the 
Department of the Interior.
  Mr. President, when I say it is discretionary, it is discretionary in 
that the Secretary of the Interior must analyze all of these leases and 
with respect to any lease which he determines would otherwise be 
drilled, there is no incentive given, there is no royalty holiday 
given. It is only with respect to those leases that would not otherwise 
be drilled, either existing or future leases, that this amendment would 
provide that incentive.
  So it is for this reason this amendment has been scored as costing 
zero by CBO and, as a matter of fact, it would make money for the 
American taxpayer and for the budget because, obviously, if you have a 
lease that otherwise would not be drilled, which is drilled, it has 
positive economic impact from the salaries paid to the workers by the 
oil company to drill the well, and if oil is found, then there is 
royalty to be paid even with the royalty holiday because the royalty 
holiday is not complete.
  This was worked out last year with the Secretary of the Interior. It 
took us a long time to work out the formulas, the amount of the 
incentive. The Secretary of the Interior wanted the amount of the 
incentive to be sufficient but not too much. That took a lot of 
negotiating. The whole matter of negotiation took a long period of 
time. After working it out last year, we introduced the legislation 
this year as S. 158. The administration has testified on this in an 
affirmative way. It is a piece of legislation that is going to make 
money for the Treasury and is going to help our energy balance.
  According to the Department of the Interior, it should bring on at 
least two new fields with approximately 150 million barrels of oil 
equivalent from existing leases and it significantly improves the 
economics of 10 to 12 possible and probable fields.
  As we know, Mr. President, the OCS in the Gulf of Mexico has been the 
United States' most promising region for new discoveries. In 1993, 98 
percent of new crude oilfields and 76 percent of new gasfields 
discovered in the United States were in the Gulf of Mexico.
  So, Mr. President, this is a way to offset that $46 billion of 
deficits which is attributable to net energy imports. It is 40 percent 
of the total U.S. merchandise deficit of $116 billion. For this reason, 
Mr. President, I think this is an excellent amendment backed by the 
administration which will help our energy balance a great deal.
  Mr. President, I ask unanimous consent that a letter from Bob 
Armstrong, Assistant Secretary of the Interior, backing this amendment 
be printed in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:


[[Page S6732]]

                                  U.S. Department of the Interior,


                                      Office of the Secretary,

                                     Washington, DC, May 16, 1995.
     Hon. J. Bennett Johnston,
     Ranking Minority Member, Committee on Energy and Natural 
         Resources, U.S. Senate, Washington, DC.
       Dear Senator Johnston: I understand that you intend to 
     offer an amendment to S. 395 to provide Outer Continental 
     Shelf (OCS) deep water royalty relief to leases in the 
     Central and Western Gulf of Mexico.
       We support this amendment and believe it is consistent with 
     the Administration's objectives with respect to OCS 
     exploration and development in the Gulf of Mexico. The deep 
     water areas of the Gulf contain some of the most promising 
     exploration targets in the United States, but industry 
     confronts substantial economic and technological challenges 
     in bringing them into production. The responsible and orderly 
     development of these resources is truly in the national 
     interest.
       The Office of Management and Budget has advised that it has 
     no objection to the presentation of these views from the 
     standpoint of the Administration's program.
           Sincerely,
                                                    Bob Armstrong,
                                              Assistant Secretary.

  Mr. MURKOWSKI. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The absence of a quorum having been suggested, 
the clerk will call the roll.
  Mr. GRAMS. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. GRAMS. Mr. President, I rise today to support the measure before 
us lifting the 22-year-old export restrictions on domestic crude oil 
produced on Alaska's North Slope.
  I commend my distinguished colleague from Alaska, the chairman of the 
Energy and Natural Resources Committee, for bringing this legislation 
to the floor.
  Clearly, the time has come for Congress to repeal an outdated law 
that no longer serves its intended purpose. When the export 
restrictions on Alaskan crude oil were originally enacted, many people 
believed that the legislation would enhance our long-term energy 
security.
  Today, however, we know that restricting the export of Alaskan crude 
oil has actually weakened our Nation by undermining our initiative to 
explore and develop new energy resources, and that is keeping us ever 
more dependent on foreign oil imports.
  Some 77 percent of this country's energy consumption is supplied by 
the oil and gas industry. Yet, the Department of Energy projects that 
crude oil production will continue to decline over the next decade.
  Last year, our Nation imported over half our domestic oil 
requirements. By the year 2005, the United States will be nearly 70 
percent dependent on imported oil--not because consumption is on the 
rise, but because domestic production continues to fall.
  Every drop of oil that is produced by somebody else eventually adds 
up to a flood of lost U.S. jobs. Three hundred thousand oil-related 
jobs have been lost in the United States since 1985--the steepest 
decline in U.S. history.
  With oil production decreasing by 2\1/4\ million barrels every day, 
more job losses are surely ahead.
  Of course, decreased production means that revenues are down as 
well--down, in fact, by more than $50 billion in the last decade.
  To add insult to injury, the U.S. petroleum industry has been forced 
to look beyond American borders when it comes to oil production. We are 
now putting 65 percent of our exploration and production dollars into 
projects overseas, at a loss to the U.S. economy of $16 billion 
annually.
  Within the last few years, Congress has consistently rejected 
regulatory policies that foolishly try to constrain and control the 
natural flow of goods and services. But there is much more that 
Congress can do to improve the climate for domestic oil production.
  To that end, S. 395 seeks to replace a failed energy policy with a 
new strategy based on free-market principles.
  I am not suggesting that S. 395 will solve this Nation's oil 
production woes, but it will have a positive, lasting impact.
  Nearly every region of the country stands to benefit from lifting the 
export restrictions on Alaskan crude oil. First and foremost, it would 
mean new U.S. jobs.
  The Department of Energy estimates that if the export restrictions on 
Alaskan crude oil are lifted, as many as 16,000 new jobs would be 
created immediately. Up to 25,000 new jobs are likely by the end of the 
decade.
  Lifting the export restrictions would increase oil production in 
California and Alaska by as much as 110,000 barrels per day.
  This legislation will stimulate oil exploration and development in 
the oilfields of Alaska and California, boosting the economy along the 
west coast and enhancing our national long-term energy strategy.
  The bill also ensures that the U.S. merchant marine will maintain its 
traditional role of transporting Alaskan crude oil. This provision 
protects existing U.S. jobs by requiring that exported Alaskan crude 
oil be carried on American-crewed, American-flag tankers.
  Mr. President, history has taught us that free markets--not 
protectionism--make our Nation more secure. With this lesson in mind, I 
strongly urge my colleagues to join in the bipartisan effort to lift 
the ban on exports of Alaskan crude oil.
  Thank you very much, Mr. President. I yield the floor.
  Mr. MURKOWSKI addressed the Chair.
  The PRESIDING OFFICER. The Senator from Alaska.
  Mr. MURKOWSKI. Mr. President, unless there is no other Senator 
seeking recognition, I ask that the amendment pending by the Senator 
from Louisiana be agreed to.
  The PRESIDING OFFICER. Is there further debate on the amendment?
  If not, the question is on agreeing to the amendment.
  The amendment (No. 1101) was agreed to.
  Mr. JOHNSTON. Mr. President, I move to reconsider the vote by which 
the amendment was agreed to.
  Mr. MURKOWSKI. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. JOHNSTON. Mr. President, I congratulate the chairman of the 
committee, the Senator from Alaska, on his good work on the Alaska 
North Slope bill, the underlying bill. It is an excellent bill. It will 
give much more efficiency to our production and sale of crude oil, and 
I think that it is definitely in the interest of the United States. Now 
that we have the merchant marine problem worked out, I think it will be 
in the interest of everyone and I urge all Senators to adopt the 
underlying bill.
  I thank the Senator for his help on this deep water bill.
  Mr. MURKOWSKI. Mr. President, I appreciate the comments of my good 
friend from Louisiana, and he is my friend. I have had the pleasure of 
working with him for some 15 years. A significant portion of that time 
he was chairman of the Energy and Natural Resources Committee. I work 
with him now, and I think the amendment just adopted is going to be a 
significant stimulus to ensuring that we are less dependent on imported 
oil by enhancing exploration and, hopefully, development in areas that 
otherwise might prove economically prohibitive to the industry.
  With the amendment just adopted by the Senator from Louisiana, why, 
we have enhanced our industry's ability to be competitive in the 
production of oil. I commend him for his effort and that of his staff, 
and I am very pleased that we adopted the amendment.
  Mr. JOHNSTON. Mr. President, what is the pending business?


                           Amendment No. 1102

  Mr. MURKOWSKI. Mr. President, if I may, I have an amendment which I 
send to the desk and ask for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Alaska [Mr. Murkowski] proposes an 
     amendment numbered 1102.

  Mr. MURKOWSKI. Mr. President, I ask unanimous consent that the 
reading of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       Strike Title I and insert in lieu thereof a new Title I.

                               ``TITLE I

     ``SEC. 101. SHORT TITLE.

       ``This title may be cited as the ``Alaska Power 
     Administration Asset Sale and Termination Act''.
     [[Page S6733]] ``SEC. 102. SALE OF SNETTISHAM AND EKLUTNA 
                   HYDROELECTRIC PROJECTS.

       ``(a) The Secretary of Energy is authorized and directed to 
     sell the Snettisham Hydroelectric Project (referred to in 
     this Act as ``Snettisham'') to the State of Alaska in 
     accordance with the terms of this Act and the February 10, 
     1989, Snettisham Purchase Agreement, as amended, between the 
     Alaska Power Administration of the United States Department 
     of Energy and the Alaska Power Authority and the Authority's 
     successors.
       ``(b) The Secretary of Energy is authorized and directed to 
     sell the Eklutna Hydroelectric Project (referred to in this 
     Act as ``Eklutna'') to the Municipality of Anchorage doing 
     business as Municipal Light and Power, the Chugach Electric 
     Association, Inc., and the Matanuska Electric Association, 
     Inc. (referred to in this Act as ``Eklutna Purchasers''), in 
     accordance with the terms of this Act and the August 2, 1989, 
     Eklutna Purchase Agreement, as amended, between the Alaska 
     Power Administration of the Unites States Department of 
     Energy and the Eklutna Purchasers.
       ``(c) The heads of other Federal departments and agencies, 
     including the Secretary of the Interior, shall assist the 
     Secretary of Energy in implementing the sales authorized and 
     directed by this Act.
       ``(d) Proceeds from the sales required by this title shall 
     be deposited in the Treasury of the United States to the 
     credit of miscellaneous receipts.
       ``(e) There are authorized to be appropriated such sums as 
     may be necessary to prepare, survey, and acquire Eklutna and 
     Snettisham assets for sale and conveyance. Such preparations 
     and acquisitions shall provide sufficient title to ensure the 
     beneficial use, enjoyment, and occupancy by the purchaser.

     ``SEC. 103. EXEMPTION AND OTHER PROVISIONS.

       ``(a)(1) After the sales authorized by this Act occur, 
     Eklutna and Snettisham, including future modifications, shall 
     continue to be exempt from the requirements of the Federal 
     Power Act (16 U.S.C. 791a et seq.) as amended.
       ``(2) The exemption provided by paragraph (1) does not 
     affect the Memorandum of Agreement entered into among the 
     State of Alaska, the Eklutna Purchasers, the Alaska Energy 
     Authority, and Federal fish and wildlife agencies regarding 
     the protection, mitigation of, damages to, and enhancement of 
     fish and wildlife, dated August 7, 1991, which remains in 
     full force and effect.
       ``(3) Nothing in this title or the Federal Power Act 
     preempts the State of Alaska from carrying out the 
     responsibilities and authorities of the memorandum of 
     Agreement.
       ``(b)(1) The United States District Court for the District 
     of Alaska shall have jurisdiction to review decisions made 
     under the Memorandum of Agreement and to enforce the 
     provisions of the Memorandum of Agreement, including the 
     remedy of specific performance.
       ``(2) An action seeking review of a Fish and Wildlife 
     Program (``Program'') of the Governor of Alaska under the 
     Memorandum of Agreement or challenging actions of any of the 
     parties to the
      Memorandum of Agreement prior to the adoption of the Program 
     shall be brought not later than ninety days after the date 
     on which the Program is adopted by the Governor of Alaska, 
     or be barred.
       ``(3) An action seeking review of implementation of the 
     Program shall be brought not later than ninety days after the 
     challenged act implementing the Program, or be barred.
       ``(c) With respect to Eklutna lands described in Exhibit A 
     of the Eklutna Purchase Agreement:
       ``(1) The Secretary of the Interior shall issue rights-of-
     way to the Alaska Power Administration for subsequent 
     reassignment to the Eklutna Purchasers--
       ``(A) at no cost to the Eklutna Purchasers;
       ``(B) to remain effective for a period equal to the life of 
     Eklutna as extended by improvements, repairs, renewals, or 
     replacements; and
       ``(C) sufficient for the operation of, maintenance of, 
     repair to, and replacement of, and access to, Eklutna 
     facilities located on military lands and lands managed by the 
     Bureau of Land Management, including lands selected by the 
     State of Alaska.
       ``(2) If the Eklutna Purchasers subsequently sell or 
     transfer Eklutna to private ownership, the Bureau of Land 
     Management may assess reasonable and customary fees for 
     continued use of the rights-of-way on lands managed by the 
     Bureau of Land Management and military lands in accordance 
     with existing law.
       ``(3) Fee title to lands at Anchorage Substation shall be 
     transferred to Eklutna Purchasers at no additional cost if 
     the Secretary of the Interior determines that pending claims 
     to, and selections of, those lands are invalid or 
     relinquished.
       ``(4) With respect to the Eklutna lands identified in 
     paragraph 1 of Exhibit A of the Eklutna Purchase Agreement, 
     the State of Alaska may select, and the Secretary of the 
     Interior shall convey to the State, improved lands under the 
     selection entitlements in section 6 of the Act of July 7, 
     1958 (commonly referred to as the Alaska Statehood Act, 
     Public Law 85-508, 72 Stat. 339, as amended), and the North 
     Anchorage Land Agreement dated January 31, 1983. This 
     conveyance shall be subject to the rights-of-way provided to 
     the Eklutna Purchasers under paragraph (1).
       ``(d) With respect to the Snettisham lands identified in 
     paragraph 1 of Exhibit A of the Snettisham Purchase Agreement 
     and
      Public Land Order No. 5108, the State of Alaska may select, 
     and the Secretary of the Interior shall convey to the 
     State of Alaska, improved lands under the selection 
     entitlements in section 6 of the Act of July 7, 1958 
     (commonly referred to as the Alaska Statehood Act, Public 
     Law 85-508, 72 Stat. 339, as amended).
       ``(e) Not later than one year after both of the sales 
     authorized in section 102 have occurred, as measured by the 
     Transaction Dates stipulated in the Purchase Agreements, the 
     Secretary of Energy shall--
       ``(1) complete the business of, and close out, the Alaska 
     Power Administration;
       ``(2) submit to Congress a report documenting the sales; 
     and
       ``(3) return unobligated balances of funds appropriated for 
     the Alaska Power Administration to the Treasury of the United 
     States.
       ``(f) The Act of July 31, 1950 (64 Stat. 382) is repealed 
     effective on the date, as determined by the Secretary of 
     Energy, that all Eklutna assets have been conveyed to the 
     Eklunta Purchasers.
       ``(g) Section 204 of the Flood Control Act of 1962 (76 
     Stat. 1193) is repealed effective on the date, as determined 
     by the Secretary of Energy, that all Snettisham assets have 
     been conveyed to the State of Alaska.
       ``(h) As of the later of the two dates determined in 
     subsection (f) and (g), section 302(a) of the Department of 
     Energy Organization Act (42 U.S.C. 7152(a)) is amended--
       ``(1) in paragraph (i)--
       ``(A) by striking subparagraph (C); and
       ``(B) by redesignating subparagraphs (D), (E), and
       ``(F) as subparagraphs (C), (D), and (E) respectively; and
       ``(2) in paragraph (2) by striking out ``and the Alaska 
     Power Administration'' and by inserting ``and'' after 
     ``Southwestern Power Administration,''.
       ``(i) The Act of August 9, 1955, concerning water resources 
     investigation in Alaska (69 Stat. 618), is repealed.
       ``(j) The sales of Eklutna and Snettisham under this title 
     are not considered disposal of Federal surplus property under 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 484) or the Act of October 3, 1944, popularly 
     referred to as the ``Surplus Property Act of 1944'' (50 
     U.S.C. App. 1622).
       ``(k) The sales authorized in this title shall occur not 
     later than 1 year after the date of enactment of legislation 
     defining `first use' of Snettisham for purposes of section 
     147(d) of the Internal Revenue Code of 1986, to be considered 
     to occur pursuant to acquisition of the property by or on 
     behalf of the State of Alaska.''.

  Mr. MURKOWSKI. Mr. President, this is an amendment with regard to 
technical language associated with title I.


                Amendment No. 1103 to Amendment No. 1102

(Purpose: To make clear that the authorization of sale of hydroelectric 
projects under section 102 has no relevance to any proposal to sell any 
  other hydroelectric project or the power marketing administrations)

  Mr. JOHNSTON. Mr. President, on behalf of Senator Daschle, I send an 
amendment to the desk, which is a second-degree amendment to this 
existing amendment. This amendment states in its entirety as follows:

       Congress declares that--
       (1) the circumstances that justify authorization by 
     Congress of the sale of hydroelectric projects under section 
     102 are unique to those projects and do not pertain to other 
     hydroelectric projects or to the power marketing 
     administrations of the 48 contiguous States; and
       (2) accordingly, the enactment of section 102 should not be 
     understood as lending any support to any proposal to sell any 
     other hydroelectric project or the power marketing 
     administrations.

  The PRESIDING OFFICER. The clerk will report the amendment.
  The assistant legislative clerk read as follows:

       The Senator from Louisiana [Mr. Johnston], for Mr. Daschle, 
     proposes an amendment numbered 1103 to amendment No. 1102.

  Mr. JOHNSTON. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       At the end of the pending amendment insert the following:

     SEC.   . DECLARATION CONCERNING OTHER HYDROELECTRIC PROJECTS 
                   AND THE POWER MARKETING ADMINISTRATIONS.

       Congress declares that--
       (1) the circumstances that justify authorization by 
     Congress of the sale of hydroelectric projects under section 
     102 are unique to those projects and do not pertain to other 
     hydroelectric projects or to the power marketing 
     administrations in the 48 contiguous States; and
       (2) accordingly, the enactment of section 102 should not be 
     understood as lending support to any proposal to sell any 
     other hydroelectric project or the power marketing 
     administration.


[[Page S6734]]

  Mr. DASCHLE. Mr. President, I offer an amendment to S 395, the Alaska 
Power Administration Sale Act, to make explicit that this legislation 
does not in any way set a precedent for the sale of any other Federal 
power marketing administrations.
  My colleague from Alaska makes a strong case for the sale of the 
Alaska Power Administration. As I understand the situation, the 
congressional delegation and the Governor of Alaska support the sale, 
and the proposal enjoys broad public support.
  As we concentrate on this bill and this sale, it is important to keep 
in mind that there is a broader discussion taking place in the Congress 
over the sale of other Federal power administrations, and the case for 
those sales is by no means as clear cut as that in Alaska.
  While the privatization of the Alaska PMA is supported in Alaska, 
there is strong public opposition to the sale of PMA's located in the 
lower 48 States. Moreover, the sale of the Alaska PMA involves a 
relatively small sum of money, only $83 million. This is a manageable 
investment for the State. It ensures that Alaskans will be able to 
purchase the PMA assets and that the purchase will not cause rates to 
rise substantially.
  This is not the case with the proposed sale of PMA's in the lower 48 
States, where far greater sums of money are at stake and where the sale 
likely would lead to significant rate increases.
  In South Dakota, the Western Area Power Administration, which markets 
power from the main stem dams along the Missouri River, has ensured a 
consistent and affordable supply of electricity. The program is being 
run on a sound financial basis, as it recovers all expenses relating to 
its annual operation and the initial construction expenses, with 
interest. Under the current system, rates are set at the lowest 
possible cost, consistent with sound business principles, and to ensure 
that these financial objectives are met.
  If this power marketing administration is sold, then it is likely 
that rates will increase substantially. The assets could well be 
purchased by out-of-State financial interests, who likely will set 
rates to maximize profit. Electric rates for existing Federal power 
customers will rise as a result. South Dakotans and customers from 
other States served by power marketing administrations will pay higher 
costs for power, and much of that money will go to the out-of-State 
financial interests who bankroll these purchases.
  The Western Area Power Administration is a program that works. It 
provides affordable power to states like South Dakota, and it does so 
without any subsidy. The Federal Government gets a return on its 
investment. In short, it is an unquestioned success. It is a program 
that we should hold up as an example of how the Federal Government can 
work for the people and the national economy.
  In conclusion, Mr. President, the sale of the Alaska Power 
Administration should not be viewed as a precedent for the sale of 
other power administrations. The situation in Alaska is unique. It is 
very different from the situation with the other PMA's, such as 
Western, where there is strong public opposition to the sale and where 
Senators are on record opposing the sale. I have received well over 
10,000 letters in opposition to this sale and 2 in favor of it. And 
while sheer numbers can never determine the merits of any program, I am 
inclined to believe that people generally know what is best for 
themselves.
  Given the almost certain rate increases that would accompany the sale 
of the Western Area Power Administration and others in the lower 48, 
and the potential for out-of-State ownership and, thus, the export of 
State resources, it is not a policy that I can support. I hope that my 
colleagues will be willing to recognize that the Alaska sale does not 
set any sort of precedent for the sale of other power marketing 
administrations, and support my amendment.
  Mr. JOHNSTON. I urge adoption of the amendment.
  The PRESIDING OFFICER. The question is on agreeing to the amendment.
  The amendment (No. 1103) was agreed to.
  Mr. JOHNSTON. Mr. President, I move to reconsider the vote by which 
the amendment was agreed to.
  Mr. MURKOWSKI. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. MURKOWSKI. Mr. President, what is the pending business, if I may 
inquire of the Chair?
  The PRESIDING OFFICER. The first-degree amendment No. 1102.
  Mr. MURKOWSKI. Mr. President, I urge adoption of the amendment.
  The PRESIDING OFFICER. If there is no further debate, the question is 
on agreeing to the amendment No. 1102, as amended.
  The amendment (No. 1102), as amended, was agreed to.
  Mr. MURKOWSKI. Mr. President, I move to reconsider the vote by which 
the amendment was agreed to, and I move to lay that motion on the 
table.
  The motion to lay on the table was agreed to.


                           Amendment No. 1104

  Mr. MURKOWSKI. Mr. President, I send an amendment to the desk and ask 
for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The bill clerk read as follows:

       The Senator from Alaska [Mr. Murkowski] proposes an 
     amendment numbered 1104.

  Mr. MURKOWSKI. Mr. President, I ask unanimous consent that the 
reading of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       Strike the text of title II and insert the following text:
                               ``TITLE II

     ``SEC. 201. SHORT TITLE.

       ``This title may be cited as `Trans-Alaska Pipeline 
     Amendment Act of 1995'.

     ``SEC. 202. TAPS ACT AMENDMENTS.

       ``Section 203 of the Act entitled the `Trans-Alaska 
     Pipeline Authorization Act,' as amended (43 U.S.C. 1652), is 
     amended by inserting the following new subsection (f):
       ``(f) Exports of Alaskan North Slope Oil.--
       ``(1) Subject to paragraphs (2) through (6), of this 
     subsection and notwithstanding any other provision of law 
     (including any regulation), any oil transported by pipeline 
     over right-of-way granted pursuant to this section may be 
     exported after October 31, 1995 unless the President finds 
     that exportation of this oil is not in the national interest. 
     In evaluating whether the proposed exportation is in the 
     national interest, the President--
       ``(A) shall determine whether the proposed exportation 
     would diminish the total quantity or quality of petroleum 
     available to the United States; and
       ``(B) shall conduct and complete an appropriate 
     environmental review of the proposed exportation, including 
     consideration of appropriate measures to mitigate any 
     potential adverse effect on the environment, within four 
     months after the date of enactment of this subsection.

     ``The President shall make his national interest 
     determination within five months after the date of enactment 
     of this subsection or 30 days after completion of the 
     environmental review, whichever is earlier. The President may 
     make his determination subject to such terms and conditions 
     (other than a volume limitation) as are necessary or 
     appropriate to ensure that the exportation is consistent with 
     the national interest.
       ``(2) Except in the case of oil exported to a country 
     pursuant to a bilateral international oil supply agreement 
     entered into by the United States with the country before 
     June 25, 1979, or to a country pursuant to the International 
     Emergency Oil Sharing Plan of the International Energy 
     Agency, any oil transported by pipeline over right-of-way 
     granted pursuant to this section, shall, when exported, be 
     transported by a vessel documented under the laws of the 
     United States and owned by a citizen of the United States (as 
     determined in accordance with section 2 of the Shipping Act, 
     1916 (46 U.S.C. App. 802)).
       ``(3) Nothing in this subsection shall restrict the 
     authority of the President under the Constitution, the 
     International Emergency Economic Powers Act (50 U.S.C. 1701 
     et seq.), or the National Emergencies Act (50 U.S.C. 1601 et 
     seq.) to prohibit exportation of the oil.''.
       ``(4) The Secretary of Commerce shall issue any rules 
     necessary for implementation of the President's national 
     interest determination within 30 days of the date of such 
     determination by the President. The Secretary of Commerce 
     shall consult with the Secretary of Energy in administering 
     the provisions of this subsection.
       ``(5) If the Secretary of Commerce finds that 
     anticompetitive activity by a person exporting crude oil 
     under authority of this subsection has caused sustained 
     material crude oil supply shortages or sustained crude oil 
     prices significantly above world market levels and further 
     finds that these supply shortages or price increases have 
     caused sustained material adverse employment effects in the 
     [[Page S6735]] United States, the Secretary of Commerce may 
     recommend to the President appropriate action against such 
     person, which may include modification of the authorization 
     to export crude oil.
       ``(6) Administrative action with respect to an 
     authorization under this subsection is not subject to 
     sections 551 and 553 through 559 of title 5, United States 
     Code.

     ``SEC. 203. ANNUAL REPORT.

       ``Section 103(f) of the Energy Policy and Conservation Act 
     (42 U.S.C. 6212(f)) is amended by adding at the end thereof 
     the following:
       ``In the first quarter report for each new calendar year, 
     the President shall indicate whether independent refiners in 
     Petroleum Administration for Defense District V have been 
     unable to secure adequate supplies of crude oil as a result 
     of exports of Alaskan North Slope crude oil in the prior 
     calendar year and shall make such recommendations to the 
     Congress as may be appropriate.''.

     ``SEC. 204. GAO REPORT.

       ``The Comptroller General of the United States shall 
     conduct a review of energy production in California and 
     Alaska and the effects of Alaskan North Slope crude oil 
     exports, if any, on consumers, independent refiners, and 
     shipbuilding and ship repair yards on the West Coast. The 
     Comptroller General shall commence this review four years 
     after the date of enactment of this Act and, within one year 
     after commencing the review, shall provide a report to the 
     Committee on Energy and Natural Resources in the Senate and 
     the Committee on Resources in the House of Representatives. 
     The report shall contain a statement of the principal 
     findings of the review and such recommendations for 
     consideration by the Congress as may be appropriate.

     ``SEC. 205. EFFECTIVE DATE.

       ``This title and the amendments made by it shall take 
     effect on the date of enactment.''.

  Mr. MURKOWSKI. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. MURKOWSKI. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                Amendment No. 1105 to Amendment No. 1104

  Mr. MURKOWSKI. Mr. President, I send an amendment to the desk and ask 
for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Alaska [Mr. Murkowski], for Mr. Hatfield, 
     proposes an amendment numbered 1105 to amendment No. 1104.

  Mr. MURKOWSKI. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:
       At the end of the amendment add the following new section:

     SEC. 206. RETIREMENT OF CERTAIN COSTS INCURRED FOR THE 
                   CONSTRUCTION OF NON-FEDERAL PUBLICLY OWNED 
                   SHIPYARDS.

       (a) In General.--The Secretary of Energy shall--
       (1) deposit proceeds of sales out of the Naval Petroleum 
     Reserve in a special account in amounts sufficient to make 
     payments under subsections (b) and (c); and
       (2) out of the account described in paragraph (1), provide, 
     in accordance with subsections (b) and (c), financial 
     assistance to a port authority that--
       (A) manages a non-Federal publicly owned shipyard on the 
     United States west coast that is capable of handling very 
     large crude carrier tankers; and
       (B) has obligations outstanding as of May 15, 1995, that 
     were issued on June 1, 1977, and are related to the 
     acquisition of non-Federal publicly owned dry docks that were 
     originally financed through public bonds.
       (b) Acquisition and Refurbishment of Infrastructure.--The 
     Secretary shall provide, for acquisition of infrastructure 
     and refurbishment of existing infrastructure, $10,000,000 in 
     fiscal year 1996.
       (c) Retirement of Obligations.--The Secretary shall 
     provide, for retirement of obligations outstanding as of May 
     15, 1995, that were issued on June 1, 1977, and are related 
     to the acquisition of non-Federal publicly owned dry docks 
     that were originally financed through public bonds--
       (1) $6,000,000 in fiscal year 1996;
       (2) $13,000,000 in fiscal year 1997;
       (3) $10,000,000 in fiscal year 1998;
       (4) $8,000,000 in fiscal year 1999;
       (5) $6,000,000 in fiscal year 2000;
       (6) $3,500,000 in fiscal year 2001; and
       (7) $3,500,000 in fiscal year 2002.

  Mr. MURKOWSKI. Mr. President, I am offering this amendment on behalf 
of Senator Hatfield and respectfully urge its adoption.
  The PRESIDING OFFICER. If there is no further debate, the question is 
on agreeing to the amendment.
  The amendment (No. 1105) was agreed to.
  Mr. MURKOWSKI. I move to reconsider the vote and to lay that motion 
on the table.
  The motion to lay on the table was agreed to.
  Mr. MURKOWSKI. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. DORGAN. Madam President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER (Ms. Snowe). Without objection, it is so 
ordered.
  Mr. DORGAN. Madam President, I ask unanimous consent that I be 
allowed to speak for 10 minutes as in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________