[Congressional Record Volume 143, Number 64 (Thursday, May 15, 1997)]
[Senate]
[Pages S4597-S4599]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself and Mr. Conrad):
  S. 750. A bill to consolidate certain mineral interests in the 
National Grasslands in Billings County, North Dakota, through the 
exchange of Federal and private mineral interests to enhance land 
management capabilities and environmental and wildlife protection, and 
for other purposes; to the Committee on Energy and Natural Resources.


                      Mineral Exchange Legislation

  Mr. DORGAN. Mr. President, today I am introducing a bill that will 
facilitate a mineral exchange in western North Dakota. I introduced 
this bill at the end of the last Congress and hope to move forward in 
this Congress with a proposal based on that effort. The purpose of this 
mineral exchange is to consolidate certain mineral estates of both the 
U.S. Forest Service and Burlington Resources, formerly known as 
Meridian Oil. This consolidation will produce tangible benefits to an 
economically distressed region in North Dakota and also protect 
environmentally-sensitive areas.
  For years, the land and mineral ownership pattern in Western North 
Dakota has been extremely fragmented. In many cases the Forest Service 
owns and manages the surface land while private parties, such as 
Burlington Resources, own the subsurface mineral estates. This 
fragmentation has not only frustrated the management objectives of the 
Forest Service, it has also inhibited mineral exploration and 
development.
  The bill will definitely promote environmental protection. By 
consolidating the mineral estates, the Forest Service will have the 
opportunity to protect the view-shed along the wonderfully scenic 
Little Missouri River, creating a more attractive hunting, fishing, and 
hiking area. Further, the mineral exchange will protect certain bighorn 
sheep lambing areas. The area protected by the mineral exchange is one 
of the last places that provides adequate habitat and escape cover for 
bighorn sheep. The Forest Service and Burlington have already signed a 
memorandum of understanding which will bolster the protection of 
wildlife and wildlife habitat after the exchange is concluded. The 
exchange is also supported by all major environmental groups in the 
state, the Governor of North Dakota, and the Bureau of Land 
Management's Dakotas Resource Advisory Council.

  The bill will also strengthen the regional economy. Burlington 
Resources supports this legislation. Burlington will have better 
opportunities for mineral exploration and development within its 
consolidated mineral estates. This increased development will benefit 
not only Burlington, but also Billings County and the State of North 
Dakota through increased tax revenues.
  One point that I would like to make clear is that this mineral 
exchange should in no way be seen as affecting the multiple uses of the 
land. Current multiple uses, such as recreation, livestock grazing, 
watershed protection or fish, and wildlife purposes, will continue as 
before. This is not a wilderness bill, but a proposal to swap mineral 
rights in order to enhance the environment and to stimulate economic 
activity in a depressed area. I do not favor the designation of 
wilderness within Billings County.
  May I further underscore that this mineral exchange costs the U.S. 
taxpayer nothing. The bill provides for an exchange of about the same 
number of acres with equivalent monetary values. Yet, this no-cost 
transaction will yield substantial economic, environmental, and 
management dividends.
  Further, the bill does not rely on the government imposing a 
solution. Rather, this voluntary agreement embodies a consensus reached 
between the affected parties, the mineral holders, the state and its 
citizens, the environmental organizations, and the U.S. Forest Service.

  Finally, may I stress that there is an urgent need for action on the 
exchange. I would ask unanimous consent that the text of the bill, 
letters of support from the Governor of North Dakota, the Bureau of 
Land Management's Dakotas Resource Council, and the Sierra Club, and 
the memorandum of understanding signed by the Forest Service and 
Burlington Resources be entered into the Record in order to aid my 
colleagues in their deliberations on the bill. In turn, I urge my 
colleagues to support timely passage of this bill.
  There being no objection, the items were ordered to be printed in the 
Record, as follows:

                                 S. 750

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXCHANGE OF CERTAIN MINERAL INTERESTS IN BILLINGS 
                   COUNTY, NORTH DAKOTA.

       (a) Purpose.--The purpose of this section is to consolidate 
     certain mineral interests in the Little Missouri National 
     Grasslands in Billings County, North Dakota, through the 
     exchange of Federal and private mineral interests in order to 
     enhance land management capability and environmental and 
     wildlife protection.
       (b) Exchange.--Notwithstanding any other provision of law--
       (1) if, not later than 45 days after the date of enactment 
     of this Act, Burlington Resources Oil & Gas Company (referred 
     to in this section as ``Burlington'' and formerly known as 
     Meridian Oil Inc.), conveys title acceptable to the Secretary 
     of Agriculture (referred to in this section as the 
     ``Secretary'') to rights and interests identified on the map 
     entitled ``Billings County, North Dakota, Consolidated 
     Mineral Exchange--November 1995'', by quitclaim deed 
     acceptable to the Secretary, the Secretary shall convey to 
     Burlington, subject to valid existing rights, by quit-claim 
     deed, all Federal rights and interests identified on that 
     map; and
       (2) if Burlington makes the conveyance under paragraph (1) 
     and, not later than 180 days after the date of enactment of 
     this Act,

[[Page S4598]]

     the owners of the remaining non-oil and gas mineral interests 
     identified on that map convey title acceptable to the 
     Secretary to all rights, title, and interests in the 
     interests held by them, by quitclaim deed acceptable to the 
     Secretary, the Secretary shall convey to those owners, 
     subject to valid existing rights, by exchange deed, all 
     Federal rights, title, and interests in National Forest 
     System lands and National Grasslands in the State of North 
     Dakota as are agreed to by the Secretary and the owners of 
     those interests.
       (c) Leasehold Interests.--As a condition precedent to the 
     conveyance of interests by the Secretary to Burlington under 
     this section, all leasehold and contractual interests in the 
     oil and gas interests to be conveyed by Burlington to the 
     United States under this section shall be released, to the 
     satisfaction of the Secretary.
       (d) Approximate Equal Value of Exchanges With Other 
     Interest Owners.--The values of the interests to be exchanged 
     under subsection (b)(2) shall be approximately equal, as 
     determined by the Secretary.
       (e) Land Use.--
       (1) Exploration and development.--The Secretary shall grant 
     to Burlington, and its successors and assigns, the use of 
     Federally-owned surface lands to explore for and develop 
     interests conveyed to Burlington under this Act, subject to 
     applicable Federal and State laws.
       (2) Surface occupancy and use.--Rights to surface occupancy 
     and use that Burlington would have absent the exchange under 
     this Act on its interests conveyed under this Act shall apply 
     to the same extent on the federally owned surface estate 
     overlying oil and gas rights conveyed to Burlington under 
     this Act.
       (f) Environmental Protection for Environmentally Sensitive 
     Lands.--All activities of Burlington, and its successors and 
     assigns, relating to exploration and development on 
     environmentally sensitive National Forest System lands, as 
     described in the ``Memorandum of Understanding Concerning 
     Certain Severed Mineral Estates, Billings County, North 
     Dakota'', executed by the Forest Service and Burlington and 
     dated November 2, 1995, shall be subject to the terms of the 
     memorandum.
       (g) Map.--The map referred to in subsection (b) shall be 
     provided to the Committee on Energy and Natural Resources of 
     the Senate and the Committee on Resources of the House of 
     Representatives, kept on file in the office of the Chief of 
     the Forest Service, and made available for public inspection 
     in the office of the Forest Supervisor of the Custer National 
     Forest within 45 days after the date of enactment of this 
     Act.
       (h) Other Laws.--The exchange under subsection (b)(1) shall 
     be deemed to meet the requirements of all other Federal laws, 
     including all land exchange laws, environmental laws, and 
     cultural laws (such as the National Historic Preservation Act 
     (16 U.S.C. 470 et seq.)), and no further compliance with any 
     other law shall be required in order to implement the 
     exchanges.
       (i) Continuation of Multiple Use.--Nothing in this Act 
     shall limit, restrict, or otherwise affect the application of 
     the principle of multiple use (including outdoor recreation, 
     range, timber, watershed, and fish and wildlife purposes) in 
     any area of the Little Missouri National Grasslands. Federal 
     grazing permits or privileges in areas designated on the map 
     entitled ``Billings County, North Dakota, Consolidated 
     Mineral Exchange--November 1995'' or those lands described in 
     the ``Memorandum of Understanding Concerning Certain Severed 
     Mineral Estates, Billings County, North Dakota'', shall not 
     be curtailed or otherwise limited as a result of the exchange 
     authorized by this Act.
                                  ____



                                       Office of the Governor,

                                      Bismarck, ND, July 25, 1996.
     Hon. Byron L. Dorgan,
     U.S. Senate,
     Washington, DC.
       Dear Senator Dorgan: The State of North Dakota supports the 
     introduction of a bill which would implement a proposed 
     mineral exchange between the United States Forest Service and 
     Meridian Oil, Inc. This effort will advance our ``2020'' 
     program to plan and implement sound management of the 
     Badlands well into the future.
       Current land and mineral ownership patterns in the Bullion 
     Butte and Ponderosa Pine areas of the Little Missouri 
     National Grasslands are fragmented, thereby complicating 
     management of surface and mineral resources.
       The proposed exchange is an opportunity to consolidate 
     ownership, enhance natural badlands habitat adjacent to the 
     Little Missouri River and facilitate mineral development 
     while reducing conflict by competing activities.
       Finally, I have included a summary describing more 
     completely, the intended exchange and its effect.
           Sincerely,
                                                Edward T. Schafer,
                                                         Governor.
       Enclosure.

   Legislation To Effect an Exchange of Mineral Rights in the Little 
               Missouri National Grasslands, Billings, ND

       For over a decade, the United States Forest Service (USFS) 
     and Meridian Oil, Inc. (Meridian) have been considering a 
     possible exchange of oil and gas rights in the Bullion Butte 
     and Ponderosa Pine areas of the Little Missouri National 
     Grasslands in North Dakota. The land ownership pattern in 
     those areas is very fragmented, with both federal and 
     privately owned mineral rights and federal surface and 
     private subsurface estates. This lack of unity between the 
     surface and subsurface estates and intermixture of public and 
     private mineral rights have complicated both effective 
     management of surface resource values and efficient 
     extraction of minerals. The USFS views an exchange to 
     consolidate mineral ownerships as an opportunity to protect 
     bighorn sheep and their habitat and the viewshed in the 
     Little Missouri River corridor. Meridian expects an exchange 
     to facilitate exploration for and development of oil and gas 
     by reducing the conflict such activities would have with 
     other sensitive Grasslands resources.
       At the urging of Senator Dorgan and Governor Schafer, the 
     USFS and Meridian reached an agreement last year on an 
     exchange of certain federal and private mineral rights and 
     the imposition of certain constraints on Meridian oil and gas 
     activities. The agreement would be implemented by this 
     legislation.
       What the legislation does. The legislation would accomplish 
     the following:
       Direct the completion of the transfer of Meridian's mineral 
     rights in approximately 9,582 acres to the USFS for federal 
     oil and gas rights in 8,796 acres, all in Billings County, 
     North Dakota, within 45 days of enactment.
       Authorize the exchange of any other private mineral rights 
     in the same area for federal mineral rights within 6 months 
     of enactment.
       Deem the mineral rights to be transferred in the USFS/
     Meridian exchange to be of equal value (since the two parties 
     have already negotiated the exchange and are of the informed 
     opinion that the values are equivalent) and require that the 
     other mineral rights to be transferred be of approximately 
     equal value.
       Require Meridian, as a condition for the exchange, to 
     secure release of any leasehold or other contractual rights 
     that may have been established on the Meridian oil and gas 
     interests that will be exchanged.
       Assure Meridian that it will have access across federal 
     lands to be able, subject to applicable federal and State 
     laws, to explore for and develop oil and gas on the interests 
     it will receive in the exchange and that it will have the 
     same surface occupancy and use rights on the interests it 
     will receive that it now holds on the interests to be 
     surrendered.
       Find that the USFS/Meridian exchange meets the requirements 
     of other federal exchange, environmental, and cultural laws 
     that would apply if the exchange were to be processed without 
     Congressional approval and direction.
       Assure that no provision of the legislation can be 
     interpreted to limit, restrict, or otherwise affect the 
     application of the principle of multiple use (including such 
     uses as hunting, fishing, grazing and recreation) in the 
     Grasslands.
       In addition to facilitating the exchange, the legislation 
     would memorialize a Memorandum of Understanding (MOU) also 
     negotiated and executed by the USFS and Meridian concerning 
     management of certain Meridian oil and gas properties that 
     will remain in Grasslands' areas with high surface resource 
     values. In particular the MOU, adopted by reference in the 
     legislation, obligates Meridian to make its best efforts to 
     locate any oil and gas facilities and installations outside 
     of the 1/4 mile view corridor on either side of the stretch 
     of the Little Missouri River being considered for designation 
     as a Wild and Scenic River and to access certain other 
     property adjacent to an important bighorn sheep lambing area 
     only by directional drilling.
       Equally important is what the legislation does not do. It 
     does:
       Not increase the amount of surface which the USFS controls. 
     The USFS currently controls the surface on essentially all 
     the land involved in the exchange, and this will not change 
     since only mineral interests will be transferred.
       Not decrease the federal land available for oil and gas 
     development. To the contrary, in the exchange the federal 
     government will receive a net gain of almost 800 acres in 
     mineral rights that may be leased for exploration and 
     development by other parties. And, by consolidating federal 
     mineral rights which now are scattered in a checkerboard 
     pattern, access to them should be improved. The extent to 
     which existing and new federal mineral rights are leased to 
     private parties will be decided by the USFS in the ongoing 
     planning and Environmental Impact Statement for the Southern 
     Little Missouri Grasslands. The ``multiple use'' provision of 
     the legislation makes certain the legislation will not affect 
     that decisionmaking process.
       Not decrease revenue to the county, state, and federal 
     governments. For the same reason that the exchange would not 
     decrease land available for oil and gas development, the 
     economic interests of taxing entities and the oil and gas 
     industry should not be affected significantly by the 
     exchange. In fact, with Meridian consolidating its mineral 
     holdings in a more manageable and less sensitive unit, area 
     oil and gas activity should increase and produce a net 
     positive economic effect.
       Not provide either Meridian or USFS with mineral rights of 
     greater value than those they now hold. The USFS with the 
     assistance of the Bureau of Land Management, has

[[Page S4599]]

     reached the conclusion that the mineral rights to be 
     exchanged between the USFS and Meridian are of equal value. 
     Some additional value will accrue to both sets of mineral 
     rights transferred by the exchange because of the greater 
     ease of access and management that will result from 
     consolidation. The legislation requires that any other 
     mineral rights exchanged by other parties under the 
     legislation be of approximately equal value.
       Not resolve the issue of wilderness designation. Some 
     parties desire wilderness protection for the area. Other 
     parties, including Meridian, oppose wilderness designation, 
     and the USFS has not indicated any intent to establish a 
     wilderness. The legislation would not increase, or decrease, 
     the prospect for wilderness designation since wilderness may 
     be designated whether the mineral rights are privately or 
     publicly owned, the designation can only be accomplished by a 
     separate Act of Congress, and the legislation's ``multiple 
     use'' language makes clear the intent of Congress that the 
     exchange is not intended to affect the wilderness issue.
                                  ____

                                                  Dakotas Resource


                                             Advisory Council,

                                Dickinson, ND, September 13, 1996.
     Hon. Ed Schafer,
     Governor of North Dakota, State Capitol, Bismarck, ND
       Dear Governor Schafer: The Dakota Resource Advisory Council 
     (RAC), a 12-member body appointed by the Secretary of the 
     Interior, represents users of public lands in North and South 
     Dakota. The RAC provides opportunities for meaningful public 
     participation in land management decisions at the district 
     level and encourages conflict resolution among various 
     interest groups.
       At our meeting in Dickinson, North Dakota on September 9, 
     1996, the RAC reviewed and discussed the Meridian Mineral 
     Exchange that you have been considering. After careful review 
     by our RAC, a resolution was passed indicating our support 
     for legislation to allow the Meridian Mineral Exchange to be 
     completed by the Bureau of Land Management.
       Since there is considerable activity in this area, there is 
     a definite urgency to move this legislation in the remaining 
     days of this Congress. The Dakota RAC respectfully requests 
     the introduction and passage of legislation on the Meridian 
     Mineral Exchange.
       If we can be of further assistance to your efforts in this 
     regard, we are most willing to help. District Manager, Doug 
     Burger, has more details with respect to the exchange and we 
     have asked him to assist you.
       Thank you for considering the recommendations of the Dakota 
     RAC.
           Sincerely,
                                              Marc Trimmer, Chair,
     Dakota RAC.
                                  ____

                                                Dacotah Chapter of


                                              the Sierra Club,

                                   Mandan, ND, September 14, 1995.
     Re meridian mineral exchange.

     Hon. Byron Dorgan,
     U.S. Senate, Washington, DC.
       Dear Senator Dorgan: I am writing to convey the Sierra 
     Club's support for the ``agreement in principle'' for a 
     mineral exchange between Meridian Oil Inc. (MOI) and the 
     Bureau of Land management (BLM) / United States Forest 
     Service (USFS). This agreement follows extensive negotiations 
     between MOI, USFS, BLM, the North Dakota Game and Fish 
     Department (NDGF) and local conservation organizations.
       It is my understanding that there are two components to the 
     agreement. Part One involves the actual exchange of the 
     mineral estate. Part Two outlines a Memorandum of 
     Understanding (MOU) between the USFS and MOI to protect the 
     viewshed of the Little Missouri State Scenic River while 
     still allowing MOI to access their minerals. The MOU also 
     addresses a plan to directionally drill an oil well to 
     protect a bighorn sheep lambing area.
       I have also contacted the enclosed list of conservation 
     organizations and they have also stated their support for 
     Parts One and Two of the agreement as proposed. I join them 
     in urging you to introduce enabling legislation at the 
     earliest opportunity. Your efforts throughout this process 
     have been very much appreciated. Please contact me if there 
     is anything conservationists can do to facilitate this 
     mineral exchange.


     conservation organizations in support of the mineral exchange

       Dacotah Chapter of the Sierra Club.
       National Wildlife Federation.
       National Audubon Society.
       Clean Water Action.
       North Dakota Chapter of the Wildlife Society.
       Bismarck Mandan Bird Club.
       Lewis and Clark Wildlife Club.
                                  ____


Memorandum of Understanding Concerning Certain Severed Mineral Estates, 
                     Billings County, North Dakota

       The Memorandum of Understand (MOU) is between Meridian Oil 
     Inc. (Meridian) with offices in Englewood, Colorado and the 
     U.S. Forest Service, Custer National Forest (Forest Service).
       The intent of the MOU is to set forth agreement regarding 
     development of certain oil and gas interests beneath Federal 
     surface. This MOU is in addition to, and does not abrogate, 
     any rights the United States otherwise has to regulate 
     activities on the Federal surface estate or any rights 
     Meridian otherwise has to develop the oil and gas interest 
     conveyed.
       The provisions of this MOU shall apply to the successors 
     and assigns of Meridian.
       The MOU may be amended by written agreement of the parties.
       Section A. View Corridor--Little Missouri River
       Includes the following land (Subject Lands) in Township 
     137N., Range 102W.:
       Section 3: Lots 6, 7, 9-12, 14-17 (+) River Bottom 54.7 
     acres
       Section 10: Kits 1-4, N\1/2\, N\1/2\SE\1/4\, SE\1/4\SE\1/4\ 
     (+) River Bottom 7.3 acres
       Section 14: Lots 1, 2, 3, 6, 7, NW\1/4\NE\1/4\., NW\1/
     4\SW\1/4\, S\1/2\S\1/2\ (+) River Bottom 41.4 acres
       Section 24: Lots 1-9, NE\1/4\, S\1/2\NW\1/4\, NE\1/4\NW\1/
     4\ (+) River Bottom 75.84 acres
       1. The purpose of this Section is to set forth the 
     agreements that Meridian and the Forest Service have made 
     concerning reasonable protection of the view from the Little 
     Missouri River which has been identified as potentially 
     suitable for classification as a Wild and Scenic River under 
     the Wild and Scenic Rivers Act. This section of the MOU shall 
     remain in effect as long as the Forest Service maintains a 
     corridor for this purpose.
       2. The Forest Service has designated a \1/4\ mile corridor 
     on either side of the River for protection of the view from 
     the River, and this Section applies to the location of 
     permanent improvements within said corridor and not to 
     temporary activities such as seismic operations within said 
     corridor.
       3. Meridian agrees to use its best efforts to locate 
     permanent production facilities, well sites, roads and other 
     installations outside the \1/4\ mile corridor on the Subject 
     Lands. However, such facilities may be located within the \1/
     4\ mile corridor if mutually agreed to by the parties in 
     writing.
       4. The Forest Service agrees that Meridian may access its 
     minerals within or without the \1/4\ mile corridor of the 
     subject lands from a well or wells whose surface location is 
     on adjoining lands in which Meridian owns the severed mineral 
     estate.
       Section B. Development of T.138N., R102W., Section 12: S\1/
     2\
       1. The purpose of this section is to set forth the 
     agreement that Meridian and the Forest Service have made 
     concerning the option to develop the mineral resources in the 
     S\1/2\ Section 12 from specified locations in 'Section 13, 
     T.138N., R.102W.
       2. If, at any time, Meridian, at its sole discretion, 
     decides that the development potential of the S\1/2\ Section 
     12 justifies additional directional drilling the following 
     options are hereby made available to them by the Forest 
     Service:
       A. Directional drilling from an expanded pad on the Duncan 
     MP#1 location in Section 13, T.138N., R.102W. or
       B. Directional drilling from a location in Section 13 
     adjacent to the county road and screened from the bighorn 
     sheep lambing area located in Section 12.
       If Meridian elects to develop the S\1/2\ Section 12 from 
     one of the specified locations in Section 13, surface 
     disturbing activities related to development and production 
     will only be allowed from June 16 through October 14, 
     annually.
       3. This section of the MOU shall remain in effect as long 
     as the S\1/2\ of Section 12 is subject to the present, or a 
     future, oil and gas lease.

                                            Steven L. Reinert,

                                                 Attroney-in-Fact,
                                                Meridian Oil, Inc.

                                               Nancy Curriden,

                                                Forest Supervisor,
                                           Custer National Forest.
                                 ______