[Congressional Record Volume 144, Number 141 (Friday, October 9, 1998)]
[Senate]
[Page S12102]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PROTECTING THE SANCTITY OF CONTRACTS AND LEASES ENTERED INTO BY SURFACE 
           PATENT HOLDERS WITH RESPECT TO COALBED METHANE GAS

  The Senate proceeded to consider the bill (S. 2500) to protect the 
sanctity of contracts and leases entered into by surface patent holders 
with respect to coalbed methane gas, which had been reported from the 
Committee on Energy and Natural Resources, with an amendment; as 
follows:
  (The part of the bill intended to be inserted is shown in italic.)

                                S. 2500

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

     SECTION 1. PROTECTION OF SANCTITY OF CONTRACTS AND LEASES OF 
                   SURFACE PATENT HOLDERS WITH RESPECT TO COALBED 
                   METHANE GAS.

       (a) In General.--Subject to subsection (b), the United 
     States shall recognize as not infringing upon any ownership 
     rights of the United States to coalbed methane any--
       (1) contract or lease covering any land that was conveyed 
     by the United States under the Act entitled ``An Act for the 
     protection of surface rights of entrymen'', approved March 3, 
     1909 (30 U.S.C. 81), or the Act entitled ``An Act to provide 
     for agricultural entries on coal lands'', approved June 22, 
     1910 (30 U.S.C. 83 et seq.), that was--
       (A) entered into by a person who has title to said land 
     derived under said Acts, and
       (B) that conveys rights to explore for, extract, and sell 
     coalbed methane from said land; or
       (2) coalbed methane production from the lands described in 
     subsection (a)(1) by a person who has title to said land and 
     who, on or before the date of enactment of this Act, has 
     filed an application with the State oil and gas regulating 
     agency for a permit to drill an oil and gas well to a 
     completion target located in a coal formation.
       (b) Application.--Subsection (a)--
       (1) shall apply only to a valid contract or lease described 
     in subsection (a) that is in effect on the date of enactment 
     of this Act;
       (2) shall not otherwise change the terms or conditions of, 
     or affect the rights or obligations of any person under such 
     a contract or lease;
       (3) shall apply only to land with respect to which the 
     United States is the owner of coal reserved to the United 
     States in a patent issued under the Act of March 3, 1909 (30 
     U.S.C. 81), or the Act of June 22, 1910 (30 U.S.C. 83 et 
     seq.), the position of the United States as the owner of the 
     coal not having passed to a third party by deed, patent or 
     other conveyance by the United States;
       (4) shall not apply to any interest in coal or land 
     conveyed, restored, or transferred by the United States to a 
     federally recognized Indian tribe, including any conveyance, 
     restoration, or transfer made pursuant to the Indian 
     Reorganization Act, June 18, 1934 (c. 576, 48 Stat. 984, as 
     amended); the Act of June 28, 1938 (c. 776, 52 Stat. 1209 as 
     implemented by the order of September 14, 1938, 3 Fed. Reg. 
     1425); and including the area described in Sec. 3 of Public 
     Law 98-290; or any executive order;
       (5) shall not be construed to constitute a waiver of any 
     rights of the United States with respect to coalbed methane 
     production that is not subject to subsection (a); and
       (6) shall not limit the right of any person who entered 
     into a contract or lease before the date of enactment of this 
     Act, or enters into a contract or lease on or after the date 
     of enactment of this Act, for coal owned by the United 
     States, to mine and remove the coal and to release coalbed 
     methane without liability to any person referred to in 
     subsection (a)(1)(A) or (a)(2).

  The committee amendment was agreed to.
  The bill (S. 2500), as amended, was considered read the third time 
and passed.

                          ____________________