[House Report 106-469]
[From the U.S. Government Publishing Office]





106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    106-469

=======================================================================



 
      TO INCREASE THE MAXIMUM ACREAGE OF FEDERAL LEASES FOR SODIUM

                                _______
                                

 November 15, 1999.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  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.

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