[Congressional Record (Bound Edition), Volume 145 (1999), Part 15]
[Senate]
[Page 22034]
[From the U.S. Government Publishing Office, www.gpo.gov]



                           ELK HILLS RESERVE

  Mrs. FEINSTEIN. Mr. President, I was dismayed to learn that the 
Senate Interior Appropriations budget has zeroed out funding to the 
State of California for its share of the Elk Hills Naval Petroleum 
Reserve Settlement. By right, the State should receive $36 million this 
year. This is the money that California gives to retired teachers whose 
pensions have been most seriously eroded by inflation.
  Here is the brief history of the issue: In 1996, Congress authorized 
the sale of Elk Hills Naval Reserve. However, a portion of the property 
consisted of more than 1300 acres of school lands owned by the state of 
California. Until the California's land claims were resolved, the sale 
could not go forward. Ultimately the Federal Government reached an 
agreement with California in which the state released its claim in 
exchange for installment payments over a seven-year period.
  The settlement allowed the federal government to sell the reserve for 
$3.65 billion. California kept its part of the bargain. Now the Federal 
government must meet its obligations. Last year the first installment 
of the $36 million was paid. But six years of installments remain.
  Actually, the money needed to compensate the state had been waiting 
in escrow.
  The House has properly allocated $36 million in the House Interior 
Appropriations Bill.
  I am hopeful that the Senate will also recognize the importance of 
keeping the Federal government's end of the bargain. I look forward to 
working with my colleagues to ensure that the House appropriation of 
$36 million be upheld in Conference.




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