[Congressional Record Volume 144, Number 125 (Friday, September 18, 1998)]
[Extensions of Remarks]
[Page E1763]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              INTRODUCTION OF COALBED METHANE LEGISLATION

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                           HON. BARBARA CUBIN

                               of wyoming

                    in the house of representatives

                       Friday, September 18, 1998

  Mrs. CUBIN. Mr. Speaker, I rise to introducer a bill which is of 
vital importance to my State of Wyoming as well as a number of other 
Western states, including Colorado, North Dakota, Montana, New Mexico, 
and Utah.
  As some of my colleagues may be aware, on July 20 of this year, the 
U.S. Court of Appeals for the 10th Circuit reversed a lower court 
ruling that had affirmed the rights of landowners in the production of 
coal bed methane (CBM). The Appeals Court decision in the case of 
Southern Ute Tribe v. Amoco Production Company asserts that CBM is part 
of the local rather than a separate natural resource.
  The ruling contradicts two previous U.S. Interior Department 
Solicitor General opinions that provided the legal basis for large-
scale investment in CBM development and production in Wyoming and the 
other states mentioned previously.
  Based on these opinions, numerous private citizens and corporations 
entered into lease and royalty agreements to devleop CBM. Now thousands 
of small landowners face the risk of losing their royalties, which 
could lead to mortgage defaults and losses of retirement savings. 
Additionally, CBM producers face risks to their long-term investments. 
Delays in drilling caused by this ruling will also impact state and 
local economies and tax revenues and deter the production of a domestic 
clean burning fuel--coal bed methane.
  In order to protect the rights of landowners and lessees, I am today 
introducing a bill which will ensure the validity of existing lease and 
royalty contracts. This legislation simply states that all contracts 
entered into prior to the date of enactment of the bill are legal and 
valid. The legislation would do nothing with regard to any future 
contracts nor would it negate the rights of any recognized Indian 
Tribe.
  My colleagues in the Senate, Messrs. Thomas and Enzi, are introducing 
an identical measure in that body. I also intend to add this language 
to the Omnibus Parks bill which the House may consider in the very near 
future.
  I commend this legislation to everyone in this chamber and encourage 
their support of it.

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