[Senate Report 105-92]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 184

105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-92
_______________________________________________________________________


 
                 NATIONAL GRASSLANDS MINERAL INTERESTS

                                _______
                                

               September 30, 1997.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 750]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (S. 750) to consolidate certain mineral 
interests in the National Grasslands in Billings County, North 
Dakota, through the exchange of Federal and private mineral 
interests to enhance land management capabilities and 
environmental and wildlife protection, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. EXCHANGE OF CERTAIN MINERAL INTERESTS IN BILLINGS COUNTY, 
                    NORTH DAKOTA.

    (a) Purpose.--The purpose of this Act is to direct the 
consolidation of certain mineral interests in the Little Missouri 
National Grasslands in Billings County, North Dakota, through the 
exchange of Federal and private mineral interests in order to enhance 
land management capability and environmental and wildlife protection.
    (b) Exchange.--Notwithstanding any other provision of law--
          (1) if, not later than 45 days after the date of enactment of 
        this Act, Burlington Resources Oil & Gas Company (referred to 
        in this Act as ``Burlington'' and formerly known as Meridian 
        Oil Inc.), conveys title acceptable to the Secretary of 
        Agriculture (referred to in this Act as the ``Secretary'') to 
        all oil and gas rights and interests on lands identified on the 
        map entitled ``Billings County, North Dakota, Consolidated 
        Mineral Exchange--November 1995'', by quitclaim deed acceptable 
        to the Secretary, the Secretary shall convey to Burlington, 
        subject to valid existing rights, by quit-claim deed, all 
        Federal oil and gas rights and interests on lands identified on 
        that map; and
          (2) if Burlington makes the conveyance under paragraph (1) 
        and, not later than 180 days after the date of enactment of 
        this Act, the owners of the remaining non-oil and gas mineral 
        interests on lands identified on that map convey title 
        acceptable to the Secretary to all rights, title, and interests 
        in the interests held by them, by quitclaim deed acceptable to 
        the Secretary, the Secretary shall convey to those owners, 
        subject to valid existing rights, by exchange deed, all 
        remaining Federal non-oil and gas mineral rights, title, and 
        interests in National Forest System lands and National 
        Grasslands identified on that map in the State of North Dakota 
        as are agreed to by the Secretary and the owners of those 
        interests.
    (c) Leasehold Interests.--As a condition precedent to the 
conveyance of interests by the Secretary to Burlington under this Act, 
all leasehold and contractual interests in the oil and gas interests to 
be conveyed by Burlington to the United States under this Act shall be 
released, to the satisfaction of the Secretary.
    (d) Equal Valuation of Oil and Gas Rights Exchange.--The values of 
the interests to be exchanged under subsection (b)(1) shall be deemed 
to be equal.
    (e) Approximate Equal Value of Exchanges With Other Interest 
Owners.--The values of the interests to be exchanged under subsection 
(b)(2) shall be approximately equal, as determined by the Secretary.
    (f) Land Use.--
          (1) Exploration and development.--The Secretary shall grant 
        to Burlington, and its successors and assigns, the use of 
        Federally-owned surface lands to explore for and develop 
        interests conveyed to Burlington under this Act, subject to 
        applicable Federal and State laws.
          (2) Surface occupancy and use.--Rights to surface occupancy 
        and use that Burlington would have absent the exchange under 
        this Act on its oil and gas rights and interests conveyed under 
        this Act shall apply to the same extent on the federally owned 
        surface estate overlying oil and gas rights and interests 
        conveyed to Burlington under this Act.
    (g) Environmental Protection for Environmentally Sensitive Lands.--
All activities of Burlington, and its successors and assigns, relating 
to exploration and development on environmentally sensitive National 
Forest System lands, as described in the ``Memorandum of Understanding 
Concerning Certain Severed Mineral Estates, Billings County, North 
Dakota'', executed by the Forest Service and Burlington and dated 
November 2, 1995, shall be subject to the terms of the memorandum.
    (h) Map.--The map referred to in subsection (b) shall be provided 
to the Committee on Energy and Natural Resources of the Senate and the 
Committee on Resources of the House of Representatives, kept on file in 
the office of the Chief of the Forest Service, and made available for 
public inspection in the office of the Forest Supervisor of the Custer 
National Forest within 45 days after the date of enactment of this Act.
    (i) Continuation of Multiple Use.--Nothing in this Act shall limit, 
restrict, or otherwise affect the application of the principle of 
multiple use (including outdoor recreation, range, timber, watershed, 
and fish and wildlife purposes) in any area of the Little Missouri 
National Grasslands. Federal grazing permits or privileges in areas 
designated on the map entitled ``Billings County, North Dakota, 
Consolidated Mineral Exchange--November 1995'' or those lands described 
in the ``Memorandum of Understand Concerning Certain Severed Mineral 
Estates, Billings County, North Dakota'', shall not be curtailed or 
otherwise limited as a result of the exchanges directed by this Act.

                         purpose of the measure

    The purpose of S. 750, as ordered reported, is to direct 
the Secretary of Agriculture to enter into an equal value 
exchange of certain subsurface mineral interests in the 
National Grasslands in North Dakota.

                          background and need

    The land and mineral ownership pattern in the National 
Grasslands in western North Dakota is extremely fragmented. In 
many areas, the Forest Service manages the surface estate of 
the lands while private parties own the subsurface mineral 
estate. Pursuant to North Dakota State law, the right to 
develop the subsurface minerals is dominant to the right to 
manage the surface area. Therefore, the current split ownership 
situation often frustrates Forest Service management 
objectives.
    The Kinley Plateau roadless area is one such example of 
split ownership. The proposed equal value mineral exchange 
between the Forest Service and Burlington Resources Oil & Gas 
Company will consolidate mineral interests, thereby enabling 
the Forest Service to protect significant resource values. The 
Kinley Plateau is a well known bighorn sheep lambing area. The 
exchange will also result in the protection of the Little 
Missouri River viewshed, creating more attractive hiking, 
fishing, and hunting opportunities. The Forest Service and 
Burlington Resources have already entered into a memorandum of 
understanding, that will take effect after the exchange is 
completed, regarding oil and gas exploration and development 
methods in order to further increase protection of 
environmentally sensitive Forest Service lands.

                          legislative history

    S. 750 was introduced by Senators Dorgan and Conrad on May 
15, 1997. The Subcommittee on Forests and Public Land 
Management held a hearing on the bill on June 18, 1997. Similar 
legislation was introduced in the Senate during the 104th 
Congress, however, no further action was taken.
    At the business meeting on September 24, 1997, the 
Committee on Energy and Natural Resources ordered S. 750, as 
amended, favorably reported.

           committee recommendations and tabulation of votes

    The Committee on Energy and Natural Resources, in open 
business session on September 24, 1997, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
750, if amended as described herein.

                          committee amendment

    During the consideration of S. 750, the Committee adopted 
an amendment in the nature of a substitute that incorporates 
changes recommended by the Administration and makestechnical 
and clarifying modifications.

                      SECTION-BY-SECTION ANALYSIS

    Section 1(a) contains the purpose.
    Paragraph (b)(1) states that the Secretary shall convey to 
Burlington all Federal oil and gas interests identified on a 
referenced map if, not later than 45 days after the date of 
enactment of this Act, Burlington Resources Oil & Gas Company 
conveys title acceptable to the Secretary of Agriculture to oil 
and gas interests as depicted on a referenced map.
    Paragraph (2) requires the Secretary, if within 180 days 
the owners of remaining non-oil and gas mineral interests 
identified on the map convey title acceptable to the Secretary, 
to convey to those owners all remaining non-oil and gas mineral 
rights as agreed to by the Secretary and owners of those 
interests.
    Subsection (c) requires that all leasehold and contractual 
interests in the oil and gas interests to be conveyed by 
Burlington be released prior to the Secretary's conveyance of 
Federal oil and gas interests.
    Subsection (d) states that the values of the interests to 
be exchanged pursuant to paragraph (b)(1) shall be deemed to be 
equal.
    Subsection (e) directs that the values of the interests to 
be exchanged pursuant to paragraph (b)(2) shall be 
approximately equal, as determined by the Secretary.
    Paragraph (f)(1) instructs the Secretary to grant to 
Burlington the use of Federally-owned surface lands to explore 
for and develop interests conveyed to Burlington, subject to 
applicable Federal and State laws.
    Paragraph (2) states that Burlington will have the same 
surface rights for oil and gas interests that it receives 
pursuant to this Act as it does for oil and gas interests that 
it currently owns.
    Subsection (g) provides that all activities of Burlington 
relating to exploration and development on environmentally 
sensitive Forest Service lands shall be subject to an 
identified memorandum of understanding between the Forest 
Service and Burlington.
    Subsection (h) requires that a copy of the map referred to 
in subsection (b) be provided to the Committee on Energy and 
Natural Resources of the United States Senate and the Committee 
on Resources of the House of Representatives. This subsection 
further requires that the map be filed in the office of the 
Chief of the Forest Service.
    Subsection (i) states that nothing in this Act shall limit, 
restrict, or otherwise affect the application of multiple use 
in any area of the Little Missouri National Grasslands.

                   cost and budgetary considerations

    Cost estimates prepared by the Congressional Budget Office 
were not available at the time the report on S. 750 was filed. 
When the report become available, the Chairman will request 
that they be printed in the Congressional Record for the advice 
of the Senate.

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 750. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from 
enactment of S. 750, as ordered reported.

                        executive communications

    Legislative reports from the Department of Agriculture and 
the Office of Management and Budget setting forth Executive 
agency recommendations on S. 750 were unavailable at the time 
the report on S. 750 was filed. When the report becomes 
available, the Chairman will request that they be printed in 
the Congressional Record for the advice of the Senate. The 
testimony provided by the Forest Service at the Committee 
hearing follows:


statement of robert joslin, deputy chief, forest service, united states 
                       department of agriculture


    Mr. Chairman and members of the subcommittee, I am Bob 
Joslin, the new Deputy Chief of the Forest Service for National 
Forest System. I am pleased to be here to share the 
Administration's views on S. 750.
S. 750, Consolidate Mineral Interests in Billings County, North Dakota
    The Administration supports the objectives of S. 750, to 
allow consolidation of mineral interests, including oil and 
gas, in the National Grasslands in Billings County, North 
Dakota, but cannot support the bill as introduced because of 
the sufficiency language included in it. The bill provides for 
the exchange of Federal and private mineral interests to 
enhance land management capabilities and environmental and 
wildlife protection.
    The Administration would like to work further with the 
Senator, Burlington Resources, and other interested parties to 
develop a bill that can be supported. The attached Supplemental 
Statement reflects language the Administration could support.
    The Kinley Plateau roadless area includes some lands that 
were purchased by the Forest Service without the mineral 
interests, many of which continue to be held by private 
parties. Under North Dakota state laws mineral rights are 
dominant over surface rights, resulting in a potential for the 
development of the mineral interests with surface impacts 
within the roadless area. The roadless area was designated, in 
part, to protect a bighorn sheep lambing area. This bill would 
provide the opportunity to immediately consolidate oil and gas 
mineral interests, primarily within the Kinley Plateau roadless 
area, through an exchange of oil and gas mineral interests, 
outside of the roadless area, with Burlington. It also allows 
for continued negotiations with other individuals or 
corporations to exchange outstanding non-oil and gas mineral 
interests.
    Subsection (h) provides that the exchange shall be deemed 
to meet the requirements of all other federal laws. This 
language is unacceptable to the Administration which believes 
that appropriate environmental analysis should, and can, be 
completed to facilitate the exchange in a timely manner.
    The Administration would like to work with Senator Dorgan's 
staff and Committee staff to facilitate the protection of these 
resources while complying with the National Environmental 
Policy Act and all other environmental laws.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill S. 750, as ordered 
reported.

                                
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