[House Report 106-469]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 106-469
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TO INCREASE THE MAXIMUM ACREAGE OF FEDERAL LEASES FOR SODIUM
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November 15, 1999.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
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Mr. Young of Alaska, from the Committee on Resources, submitted the
following
R E P O R T
[To accompany H.R. 3063]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 3063) to amend the Mineral Leasing Act to increase the
maximum acreage of Federal leases for sodium that may be held
by an entity in any one State, and for other purposes, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
Purpose of the Bill
The purpose of H.R. 3063 is to amend the Mineral Leasing
Act to increase the maximum acreage of Federal leases for
sodium that may be held by an entity in any one State.
Background and Need for Legislation
H.R. 3063 solves imminent problems stemming from
limitations on the amount of federal acreage a person (or
company) may hold on a state-wide basis, for mineral
commodities disposed via the Mineral Leasing Act of 1920 (MLA,
30 U.S.C. 181 et seq.). Strong anti-trust concerns held
prominence in Congress before and during the time at which the
mineral leasing statutes were enacted. Sodium mineral compounds
were no different in this respect than oil and gas, potash, oil
shale, phosphate, and coal, all likewise leased under the MLA.
But today consolidation within the natural soda ash industry
(which uses the mineral trona, a sesquicarbonate of sodium, as
its feedstock) is a reality of global competition with foreign
soda ash producers, including synthetic soda ash.
The Green River basin area of southwest Wyoming is the home
to the world's largest trona concentration, the majority of
which underlies public land, subject to the federal acreage
limits under the MLA. Not since 1948 has Congress revisited the
acreage cap with respect to sodium leases, the oldest
limitation under the 1920 MLA. The commercial production of
natural soda ash effectively requires capital investments of
the magnitude of several hundred millions of dollars in both
mining equipment and a physical plant to process the trona into
soda ash (sodium carbonate, or ``washing soda'') and/or sodium
bicarbonate (``baking soda'') which far exceed those
contemplated in 1948. Thus, a sufficient tonnage of trona
reserves under lease to ensure this investment does not go
underutilized is necessary for competitive business practices.
Because the federal government is the primary lessor of the
available trona, the statutory limitation must be raised or
already leased acreage will have to be relinquished. If this
occurs, this acreage is insufficient for a competitor company
to utilize efficiently in a new operation.
The Committee believes the public interest is served by
ensuring that the overage of lease acreage, which will occur
through industry consolidation, remain available for mining by
the present operator. Furthermore, the Committee emphasizes
that it is currently the role of the Secretary of the Interior
(as delegated to the Bureau of Land Management) to review bids
at sodium (and other minerals) lease sales for adequacy, which
generally includes analysis of competition. H.R. 3063 would
continue this practice.
Committee Action
H.R. 3063 was introduced on October 13, 1999, by
Congresswoman Barbara Cubin (R-WY). The bill was referred to
the Committee on Resources, and within the Committee to the
Subcommittee on Energy and Mineral Resources. On October 21,
1999, the Subcommittee held a legislative hearing on the bill.
On October 27, 1999, the Full Resources Committee met to
consider the bill. The Subcommittee on Energy and Mineral
Resources was discharged from further considerationof the bill
by unanimous consent. No amendments were offered and the bill was
ordered favorably reported to the House of Representatives by voice
vote.
Section-by-Section Analysis
Section 1. Findings
Section 1 lists ten Congressional findings outlining the
background and need for the acreage limitation change. Although
the findings contain statements about trona, the Committee
emphasizes that the limitations upon state-wide lease acreage
to which this bill applies includes all sodium-bearing minerals
under lease, including dawsonite and nahcolite deposits in
Colorado, as well as sodium brines at Searles Lake, California.
Section 2. Amendment of Mineral Leasing Act
Section 2 would double the statutory limit per lessee, from
15,360 to 30,720 acres in any one State. The Committee
emphasizes that the Secretary of the Interior would retain his
existing authorities and responsibilities to ensure competition
in sodium lease matters after enactment of H.R. 3063.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Resources' oversight findings and recommendations
are reflected in the body of this report.
Constitutional Authority Statement
Article I, section 8 and Article IV, section 3 of the
Constitution of the United States grant Congress the authority
to enact this bill.
Compliance With House Rule XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
3. Government Reform Oversight Findings. Under clause
3(c)(4) of rule XIII of the Rules of the House of
Representatives, the Committee has received no report of
oversight findings and recommendations from the Committee on
Government Reform on this bill.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 29, 1999.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3063, a bill to
amend the Mineral Leasing Act to increase the maximum acreage
of federal leases for sodium that may be held by an entity in
any one state, and for other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Victoria Heid
Hall.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 3063--A bill to amend the Mineral Leasing Act to increase the
maximum acreage of federal leases for sodium that may be held
by an entity in any one state, and for other purposes
CBO estimates that implementing H.R. 3063 would not affect
federal spending. Because H.R. 3063 would not affect direct
spending or receipts, pay-as-you-go procedures would not apply.
H.R. 3063 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would have no significant impact on the budgets of state,
local, or tribal governments.
H.R. 3063 would double, from 15,360 acres to 30,720 acres,
the maximum federal acreage of a sodium mining lease that a
leaseholder may hold in any one state. According to the Bureau
of Land Management, enacting H.R. 3063 would allow individual
mining companies more flexibility to merge with other companies
holding sodium leases, but is unlikely to affect the overall
amount of federal acreage leased for mining. Therefore, CBO
estimates that enacting the bill would not affect payments to
the governments from sodium leaseholders.
The CBO staff contact is Victoria Heid Hall. This estimate
was approved by Peter H. Fontaine, Deputy Assistant Director
for Budget Analysis.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SECTION 23 OF THE MINERAL LEASING ACT
Sec. 27 (a) * * *
(b)(1) * * *
(2) The Secretary may, in his discretion, where the same is
necessary in order to secure the economic mining of sodium
compounds leasable under this Act, permit a person,
association, or corporation to take or hold sodium leases or
permits on up to [fifteen thousands three hundred and sixty
acres] 30,720 acres in any one State.
* * * * * * *