[Congressional Record Volume 151, Number 36 (Monday, April 4, 2005)]
[Senate]
[Pages S3152-S3153]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DOMENICI:
  S. 692. A bill to provide for 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 of 2005, 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 the 
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 longstanding 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's intent that the 
nation no longer has land selection rights available to it in New 
Mexico under the Navajo-Hopi 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 longstanding 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 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 the 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 the 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 the Interior's 
regulations. A panel consisting of representatives of the Department of 
the 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 the 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 
ongoing 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. 692

       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 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 BIDDING RIGHTS TO HOLDERS OF 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) accept the relinquishment of the rights associated with 
     the coal preference right lease application; 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--

[[Page S3153]]

       (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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