[Congressional Record (Bound Edition), Volume 149 (2003), Part 18]
[House]
[Pages 24347-24348]
[From the U.S. Government Publishing Office, www.gpo.gov]




  AMENDING THE MINERAL LEASING ACT TO AUTHORIZE THE SECRETARY OF THE 
             INTERIOR TO ISSUE COMBINED HYDROCARBON LEASING

  Mr. CANNON. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 3062) to amend the Mineral Leasing Act to authorize the 
Secretary of the Interior to issue separately, for the same area, a 
lease for tar sand and a lease for oil and gas, and for other purposes, 
as amended.
  The Clerk read as follows:

                               H.R. 3062

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

     SECTION 1. COMBINED HYDROCARBON LEASING.

       (a) Special Provisions Regarding Leasing.--Section 17(b)(2) 
     of the Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)''; and
       (2) by adding at the end the following:
       ``(B) The Secretary may issue under this Act for the same 
     area, separately--
       ``(i) a lease for exploration for and extraction of tar 
     sand; and
       ``(ii) a lease for exploration for and development of oil 
     and gas.
       ``(C) A lease issued under subparagraph (B)(ii) shall not 
     be further subject to the Combined Hydrocarbon Leasing Act of 
     1981 (30 U.S.C. 181 et seq.).
       ``(D) A lease issued for tar sand shall be issued using the 
     same bidding process, annual rental, and posting period as a 
     lease issued for oil and gas, except that the minimum 
     acceptable bid required for a lease issued for tar sand shall 
     be $2 per acre.
       ``(E) The Secretary may waive, suspend, or alter any 
     requirement under section 26 that

[[Page 24348]]

     a permittee under a permit authorizing prospecting for tar 
     sand must exercise due diligence, to promote any resource 
     covered by a combined hydrocarbon lease.''.
       (b) Conforming Amendment.--Section 17(b)(1)(B) of the 
     Mineral Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in 
     the second sentence by inserting ``, subject to paragraph 
     (2)(B),'' after ``the Secretary''.
       (c) Regulations.--Within 45 days after the date of the 
     enactment of this Act, the Secretary of the Interior shall 
     issue final regulations to implement this section.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Utah (Mr. Cannon) and the gentleman from Washington (Mr. Inslee) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Utah (Mr. Cannon).
  Mr. CANNON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, on November 16, 1981, Congress passed the Combined 
Hydrocarbon Leasing Act. This act was in direct response to the energy 
crisis of the late 1970s and a policy of the Carter administration to 
promote alternative energy sources. This law has not only failed to 
accomplish its primary objective, which was to stimulate the 
development of tar sands as an alternative fuel to imported oil, it has 
restricted conventional oil and gas development in over a million acres 
of land that is highly productive. The vast majority of this land is 
located in the Uinta Basin in my State of Utah.
  The reality is that extraction and processing of tar sands is an 
uneconomic venture in the United States. Even if these designated tar 
sands were designated for lease, the industry would be reluctant to 
acquire the leases since recovery and processing of the tar sands is so 
costly. Only one lease sale has occurred on the tar sands since 1981, 
totaling 1.34 percent of the lands. This fact clearly illustrates the 
shortcomings of the act.
  The potential reserves of conventional natural gas and oil under the 
tar sands areas is huge. This is a tremendous resource that is not 
currently available to the citizens of Utah or to the citizens of the 
United States who, in the recent past have and in the near future, will 
suffer from extremely high natural gas prices to heat their homes 
during the coming winter months.
  In addition to the valuable oil and gas resources that are being 
lost, the Federal Government and the citizens of Utah are losing 
hundreds of millions of dollars in potential royalty and tax revenues 
from producers who are willing to process the oil and gas deposits in 
the tar sands areas. The Department of the Interior and the Bureau of 
Land Management would still administer these lands.
  Producers attempting to lease these lands will be subject to every 
existing environmental stipulation as well as any new regulation that 
may be placed on these lands. Protections are already in place to 
prevent any degradation of existing wilderness areas and wilderness 
study areas.
  The goal of my bill is to not circumvent or change any environmental 
regulations, but simply to make available for lease over 1 million 
acres of land that contain tremendous potential for natural gas and oil 
development by allowing the Secretary of the Interior to issue 
separately for the same area, a lease for tar sand and a lease for oil 
and gas development.
  Action is in the public interest and would help increase the Nation's 
energy independence.
  Mr. Speaker, I reserve the balance of my time.
  Mr. INSLEE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, it is my understanding that, in effect, this bill would 
apply to public lands which are administered by the Bureau of Land 
Management and have been identified as suitable for tar sand and oil 
and gas leasing within the State of Utah. The committee report states 
that no land designation would be changed or environmental regulation 
modified or circumvented in any way by this legislation. I think that 
is an important fact to note.
  Mr. Speaker, I would have preferred that this bill be considered 
under regular order with a hearing in the Committee on Resources prior 
to markup and floor consideration, but out of our continuing efforts in 
the direction of comity and fair play, and in the consideration that we 
do not have the votes to change the outcome in any event, we are 
unaware of any substantive problems and will not object to its 
consideration today.
  Mr. Speaker, I yield back the balance of my time.
  Mr. CANNON. Mr. Speaker, let me just point out that in the spirit of 
comity and fair play, we appreciate the gentleman's statement. This 
initiative, I think, is well understood and well known, and I can 
assure the gentleman that all environmental concerns will be dealt with 
in the appropriate manner.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Utah (Mr. Cannon) that the House suspend the rules and 
pass the bill, H.R. 3062, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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