[Congressional Record Volume 144, Number 7 (Thursday, February 5, 1998)]
[Senate]
[Pages S455-S456]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS:
  S. 1616. A bill to authorize the exchange of existing Federal oil and 
gas leases in the State of Montana, located in the Lewis and Clark 
National Forest and the Flathead National Forest, for credits in future 
Federal oil and gas lease sales in the Gulf of Mexico, and for other 
purposes; to the Committee on Energy and Natural Resources.


                          exchange legislation

  Mr. BAUCUS. Mr. President, I am pleased today to introduce a Bill 
that would provide the Secretary of the Interior with the authority to 
exchange oil and gas leases in the Badger Two-Medicine area, in the 
State of Montana, for credits that could be applied toward bidding or 
royalty payments in Montana and the Gulf of Mexico.
  The area involved in this legislation is located along the Rocky 
Mountain Front, an area whose rich natural beauty I care deeply about. 
It lies south of one of the ``Crown Jewels'' of the National Park 
system, Glacier National Park. Also adjoining this area is the 
Blackfeet Indian Reservation and the uniquely wild and pristine Bob 
Marshall Wilderness Area. The Badger Two-Medicine area is undeveloped 
wilderness and contains many sites sacred to the Blackfeet Nation. The 
location of this area, its cultural value, and its undeveloped natural 
condition has been the focus of the decade-long debate over whether or 
not the oil and gas resources of the area should be developed. I myself 
believe that we should protect this special place for our children and 
grandchildren, and I have fought to do just that.
  We are no closer today to resolving the question of development of 
the resources of this area than we were a decade ago and it is time to 
resolve these conflicts. During this time the ten leaseholders in the 
area have made investments in anticipation of being able to exercise 
the option of developing wells under their leases. The time has come to 
break this stalemate that only costs the leaseholders, the citizens 
concerned with protecting the area, and the government time and money 
without resolution. The bill that I am introducing today is fair for 
the landowners, the citizens of Montana and the Nation, and fair for 
the leaseholders.
  Chevron, the largest leaseholder in the area, stated ``While we would 
have liked to have developed our well in the Badger Two-Medicine area, 
we understand that the public had concerns about our proposal. Senator 
Baucus' bill breaks the deadlock and allows everyone to get on with 
their business''.
  Today I am introducing this legislation, a common sense solution to a 
long-standing controversy, to allow all the parties to leave this 
dispute as winners. The Secretary of the Interior would work with 
leaseholders, who have made investments over the years, to determine 
credits for their expenses. These credits, allowing for reinvestment in 
Montana, can be applied to lease bids or royalty payments in other 
locations where they already have active wells or where development is

[[Page S456]]

more likely to occur. The citizens who are concerned about the cultural 
and resource effects of development would see the integrity of this 
area maintained. The government would be able to refocus the use of its 
limited financial resources on management activities that have a more 
direct positive result than continuation of the current disputes.
  This bill focuses on resolving Montana problems while looking out for 
the economic and natural resource interests of this State. Creating and 
maintaining jobs in Montana is very important to me. This bill helps 
save jobs. As Richard Jackson, owner of an outfitting business in the 
Badger Two-Medicine recently said, ``This bill isn't just about saving 
some of our most precious wildlands; it's about saving our wildlands 
and Montana jobs''. Montana has a unique recreational industry that has 
sustainable jobs that are dependent on wild untamed lands. We need to 
care for this wildness. I look forward to continuing work with the 
Governor and the Montana Delegation on innovative ideas to stimulate 
appropriate development of the State's rich mineral heritage while 
protecting its wildness and uncomparable natural beauty.
  I encourage my esteemed colleagues to support this bill and look 
forward to working with them in their consideration.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1616

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

     SECTION 1. EXCHANGE OF OIL AND GAS LEASES IN THE LEWIS AND 
                   CLARK NATIONAL FOREST AND THE FLATHEAD NATIONAL 
                   FOREST, STATE OF MONTANA.

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary of the Interior may exchange Federal oil 
     and gas leases that are in existence and in good standing as 
     of the date of enactment of this Act and are located in the 
     exchange area described in subsection (b) for credits that 
     may be used--
       (1) for bids in Federal oil and gas lease sales or for 
     royalty and rentals due under Federal leases in the central 
     and western planning areas of the Gulf of Mexico for leases 
     outside the zone defined and governed by section 8(g)(2) of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)(2)); 
     or
       (2) for bid, royalty, or rental payments due under Federal 
     oil and gas leases on Federal land within the State of 
     Montana.
       (b) Exchange Area.--The exchange area referred to in 
     subsection (a) consists of--
       (1) the portions of the Lewis and Clark National Forest and 
     the Flathead National Forest in Flathead County, Glacier 
     County, and Pondera County, Montana (including the area known 
     as the ``Badger-Two Medicine''), as delineated on the map 
     entitled ``Exchange Area Map'' and located in T. 27 N., R. 11 
     W., T. 28 N., R. 10-14 W., T. 29 N., R. 10-16 W., T. 30 N., 
     R. 11-13 W., and T. 31 N., R. 12-13 W.; and
       (2) the area covered by Federal oil and gas lease no. MTM-
     53314, in Teton County, Montana.
       (c) Amount.--The amount of the credits shall be based on 
     investments made in the acquisition and development of the 
     leases before the date of enactment of this Act and agreed to 
     by the Secretary of the Interior and the leaseholder.
       (d) Withdrawal From Mineral Laws.--Subject to valid 
     existing rights not relinquished, the exchange area described 
     in subsection (b)(1) is withdrawn from location and entry 
     under the mining laws and from leasing under the mineral 
     leasing laws.
       (e) Effect of Use of Credits.--If a person that receives a 
     credit under subsection (a) uses the credit to pay any rental 
     or royalty due under any Federal oil and gas lease on Federal 
     land within the State of Montana, the Secretary of the 
     Interior shall pay the State of Montana, from amounts 
     received from oil and gas leases on Federal land that, but 
     for this subsection, would be deposited in the Treasury of 
     the United States under section 35 of the Act of February 25, 
     1920 (commonly known as the ``Mineral Lands Leasing Act'') 
     (41 Stat. 450, chapter 85; 30 U.S.C. 191), the amount that 
     the State would have received under applicable law if the 
     amount of the royalty or rental had been paid in cash.

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