[Congressional Record Volume 150, Number 107 (Friday, September 10, 2004)]
[Senate]
[Pages S9077-S9078]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DOMENICI:
  S. 2790. A bill to provide the conveyance of certain public land in 
northwestern New Mexico by resolving a dispute associated with coal 
preference right lease interests on the land; to the Committee on 
Indian Affairs.
  Mr. DOMENICI. Mr. President, I am pleased today to be introducing the 
Bisti PRLA Dispute Resolution Act, which will resolve a conflict 
regarding coal mining leases in New Mexico and which will confirm the 
completion of all Navajo Nation land selections in New Mexico under the 
Navajo-Hopi Settlement Act. Arch Coal Company and the Navajo Nation 
have been deadlocked within the Department of Interior appeals process 
regarding certain preference right lease applications (PRLAs) in the 
Bisti region of northwestern New Mexico. When enacted, this legislation 
will resolve a complex set of issues arising from legal rights the Arch 
Coal Company acquired in Federal lands, which are now situated among 
lands which constitute tribal property and the allotments of members of 
the Navajo Nation. Both Arch Coal and the Navajo Nation support this 
legislation to resolve the situation in a manner that is mutually 
beneficial. In addition, this legislation will serve to mandate the 
completion of a long-standing set of land selections the Navajo Nation 
made under the Navajo-Hopi Settlement Act. In 1984 Amendments to that 
Act, Congress provided the Navajo Nation with its final opportunity, 
within 18 months of passage of the Amendments, to select lands in New 
Mexico as provided in Section 11 of the Navajo-Hopi Settlement Act. The 
Navajo Nation exercised its rights under the 1984 Amendments, but since 
has sought to review, revise, and seek to select other lands to the 
potential detriment of mineral lessees holding leases on Federal public 
lands near the Navajo Reservation. This legislation would clarify 
Congress' intent that the Nation no longer has land selection rights 
available to it in New Mexico under the Navajo-Hope Settlement Act.
  There are many reasons the solution embodied in this bill achieves 
broad benefits to the interested parties and the public. It will 
resolve a long-standing conflict between the Navajo Nation and Arch 
Coal and allow the Navajo Nation to complete the land selections in New 
Mexico that were made in the 1980s to promote tribal member 
resettlement following the partition of lands in Arizona to the Hopi 
Tribe. Specifically, Section 4(a)(1) will clarify and confirm that the 
Navajo Nation already has selected the lands to which it is entitled 
under the Navajo-Hopi Settlement Act and has no further rights under 
that Act to select lands in New Mexico other than those already 
selected by the Navajo Nation in the 1980s.
  The bill also guarantees that Arch Coal, Inc. will be compensated for 
the economic value of its coal reserves. An independent panel will make 
recommendations to the Secretary of Interior regarding the fair market 
value of the coal reserves, gives the company bidding rights, protects 
a State's financial interest in its share of federal Mineral Leasing 
Act payments, and allows the Navajo Nation beneficial ownership in 
their lands.
  The Secretary of Interior will issue a certificate of bidding rights 
to Arch Coal upon relinquishment of its interests in the PRLAs. The 
amount of that certificate will equal the fair market value of the coal 
reserves as defined by the Department of Interior's regulations. A 
panel consisting of representatives of the Department of Interior, Arch 
Coal, and the Governors of Wyoming and New Mexico will help determine 
fair market value. While the Interior Department is authorized to 
exchange PRLAs for bidding rights, the Department has not done so, 
largely because of the difficulty it perceives in determining the fair 
market value of the coal reserves. The panel method in this legislation 
will promote the objectivity of that process.
  Upon the relinquishment of the PRLAs and the issuance of a 
certificate of bidding rights, the Department of Interior will execute 
patents to the Navajo Nation of the lands encompassed by the PRLAs. 
This is a win-win situation for all parties involved; is endorsed by 
the affected parties, and is a fair resolution to this on-going 
problem.
  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. 2790

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Bisti PRLA Dispute 
     Resolution Act''.

     SEC. 2. WITHDRAWAL OF COAL PREFERENCE RIGHT LEASE 
                   APPLICATIONS.

       (a) In General.--Notwithstanding any other provision of 
     law, if any of the coal preference right lease applications 
     captioned NMNM 3752, NMNM 3753, NMNM 3754, NMNM

[[Page S9078]]

     3755, NMNM 3835, NMNM 3837, NMNM 3918, NMNM 3919, NMNM 6802, 
     NMNM 7235 and NMNM 8745 are withdrawn by the holder or 
     holders of the applications, the Secretary of the Interior, 
     acting through the Bureau of Land Management (referred to in 
     this Act as the ``Secretary''), shall issue under section 
     4(a)(2) to each such holder or holders a certificate of 
     bidding rights (in such form and manner as provided for under 
     regulations promulgated by the Secretary under the Mineral 
     Leasing Act (30 U.S.C. 181 et seq.)) that constitutes the 
     combined fair market value, as determined under section 3, of 
     the coal reserves for each coal preference right lease 
     application withdrawn by the holder.
       (b) Relinquishment.--The relinquishment of all rights 
     associated with the coal preference lease applications 
     withdrawn shall be effective on the date of the issuance of 
     the certificate of bidding rights under section 4(a)(2).
       (c) No Adjudication.--The withdrawals and issuances 
     required under subsection (a) shall occur without any further 
     adjudication of coal preference right lease applications by 
     the Secretary.

     SEC. 3. METHOD FOR DETERMINING FAIR MARKET VALUE.

       (a) In General.--Notwithstanding any other provision of 
     law, this section shall apply to the issuance of a 
     certificate of bidding rights under section 4(a)(2).
       (b) Value of Coal Reserves.--
       (1) In general.--The fair market value of the coal reserves 
     of any coal preference right lease application withdrawn 
     under section 2(a) shall be determined by the panel 
     established under paragraph (2).
       (2) Panel.--
       (A) Establishment.--Not later than 30 days after the date 
     of enactment of this Act, the Secretary shall establish a 
     panel to determine the fair market value of the coal reserves 
     of any coal preference right lease applications withdrawn 
     under section 2(a).
       (B) Membership.--The panel shall be composed of 3 
     representatives, of whom--
       (i) 1 representative shall be appointed by the Secretary;
       (ii) 1 representative shall be appointed by the holder of 
     the preference right lease application; and
       (iii) 1 representative shall be appointed by the Governor 
     of the State of New Mexico.
       (3) Mineral appraiser.--The Secretary shall contract with a 
     qualified coal reserve appraiser to assist the panel 
     established under paragraph (2)(A) in determining the fair 
     market value of a coal reserve.
       (4) Supplemental information.--In determining the fair 
     market value of a coal reserve, the panel may supplement any 
     information provided to the panel, as the panel determines to 
     be appropriate.
       (5) Determination.--Not later than 75 days after the date 
     on which the panel is established under paragraph (2)(A), the 
     panel shall submit to the Secretary the determination of the 
     panel with respect to the fair market value of a coal reserve 
     of any coal preference right lease application withdrawn by 
     the holder.

     SEC. 4. ISSUANCE OF PATENTS TO RELINQUISHED PREFERENCE RIGHT 
                   LEASE APPLICATIONS.

       (a) In General.--Notwithstanding any other provision of 
     law, not later than 120 days after the withdrawal of a coal 
     preference right lease application, the Secretary shall--
       (1) issue to the Navajo Nation patents to the land, 
     including the mineral estate, subject to the coal preference 
     right lease application withdrawn--
       (A) in full and final satisfaction of the right of the 
     Navajo Nation to select land in New Mexico under section 11 
     of the Navajo-Hopi Land Settlement Act of 1974 (25 U.S.C. 
     640d-10); and
       (B) to facilitate land consolidation and facilitate mineral 
     development in northwest New Mexico; and
       (2) issue a certificate of bidding rights in the amount of 
     the fair market value determined under section 3.
       (b) Enforcement.--The duties of the Secretary under this 
     section shall be considered nondiscretionary and enforceable 
     in a mandamus proceeding brought under section 1361 of title 
     28, United States Code.

     SEC. 5. USE OF EXCHANGE BIDDING RIGHTS.

       (a) In General.--Notwithstanding any other provision of 
     law--
       (1) a certificate of bidding rights issued under section 
     4(a)(2) shall--
       (A) be subject to such procedures as the Secretary may 
     establish pertaining to notice of transfer and accountings of 
     holders and their balances;
       (B) be transferable by the holder or holders of the 
     certificate of bidding rights in whole or in part; and
       (C) constitute a monetary credit that, subject to paragraph 
     (2), may be applied, at the election of the holder or holders 
     of the certificate of bidding rights, against--
       (i) rentals, advance royalties, or production royalties 
     payable to the Secretary under Federal coal leases; and
       (ii) bonus payments payable to the Secretary in the 
     issuance of a Federal coal lease or Federal coal lease 
     modification under the coal leasing provisions of the Mineral 
     Leasing Act (30 U.S.C. 181 et seq.); and
       (2) in a case in which a certificate of bidding rights 
     issued under section 4(a)(2) is applied by the holder or 
     holders of the certificate of bidding rights as a monetary 
     credit against a payment obligation under a Federal coal 
     lease, the holder or holders--
       (A) may apply the bidding rights only against 50 percent of 
     the amount payable under the lease; and
       (B) shall pay the remaining 50 percent as provided for 
     under the lease in cash or cash equivalent.
       (b) Payment Under Lease Obligations.--Any payment of a 
     Federal coal lease obligation by the holder or holders of a 
     certificate of bidding rights issued under section 4(a)(2)--
       (1) shall be treated as money received under section 35 of 
     the Mineral Leasing Act (30 U.S.C. 191); but
       (2) shall be credited and redistributed by the Secretary 
     only as follows:
       (A) 50 percent of the amount paid in cash or its equivalent 
     shall be--
       (i) distributed to the State in which the lease is located; 
     and
       (ii) treated as a redistribution under section 35 of the 
     Mineral Leasing Act (30 U.S.C. 191).
       (B) 50 percent of the amount paid through a crediting of 
     the bidding rights involved shall be treated as a payment 
     that is subject to redistribution under that section to the 
     Reclamation and Miscellaneous Receipts accounts in the 
     Treasury.
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