[House Report 107-160]
[From the U.S. Government Publishing Office]
107th Congress Rept. 107-160
HOUSE OF REPRESENTATIVES
1st Session Part 1
======================================================================
ENERGY SECURITY ACT
_______
July 25, 2001.--Ordered to be printed
_______
Mr. Hansen, from the Committee on Resources, submitted the following
R E P O R T
together with
DISSENTING AND ADDITIONAL VIEWS
[To accompany H.R. 2436]
The Committee on Resources, to whom was referred the bill
(H.R. 2436) to provide secure energy supplies for the people of
the United States, and for other purposes, having considered
the same, report favorably thereon with an amendment and
recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Energy Security Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY
Sec. 101. Study of existing rights-of-way on Federal lands to determine
capability to support new pipelines or other transmission facilities.
Sec. 102. Inventory of energy production potential of all Federal
public lands.
Sec. 103. Review of regulations to eliminate barriers to emerging
energy technology.
Sec. 104. Interagency agreement on environmental review of interstate
natural gas pipeline projects.
Sec. 105. Enhancing energy efficiency in management of Federal lands.
TITLE II--OIL AND GAS DEVELOPMENT
Subtitle A--Offshore Oil and Gas
Sec. 201. Short title.
Sec. 202. Lease sales in Western and Central Planning Area of the Gulf
of Mexico.
Sec. 203. Savings clause.
Sec. 204. Analysis of Gulf of Mexico field size distribution,
international competitiveness, and incentives for development.
Subtitle B--Improvements to Federal Oil and Gas Management
Sec. 221. Short title.
Sec. 222. Study of impediments to efficient lease operations.
Sec. 223. Elimination of unwarranted denials and stays.
Sec. 224. Limitations on cost recovery for applications.
Sec. 225. Consultation with Secretary of Agriculture.
Subtitle C--Miscellaneous
Sec. 231. Offshore subsalt development.
Sec. 232. Program on oil and gas royalties in kind.
Sec. 233. Cooperative oil and gas research and information centers.
Sec. 234. Marginal well production incentives.
Sec. 235. Reimbursement for costs of NEPA analyses, documentation, and
studies.
TITLE III--GEOTHERMAL ENERGY DEVELOPMENT
Sec. 301. Royalty reduction and relief.
Sec. 302. Exemption from royalties for direct use of low temperature
geothermal energy resources.
Sec. 303. Amendments relating to leasing on Forest Service lands.
Sec. 304. Deadline for determination on pending noncompetitive lease
applications.
Sec. 305. Opening of public lands under military jurisdiction.
Sec. 306. Application of amendments.
Sec. 307. Review and report to Congress.
Sec. 308. Reimbursement for costs of NEPA analyses, documentation, and
studies.
TITLE IV--HYDROPOWER
Sec. 401. Study and report on increasing electric power production
capability of existing facilities.
Sec. 402. Installation of powerformer at Folsom power plant,
California.
Sec. 403. Conservation through pump modernization.
Sec. 404. Study and implementation of increased operational
efficiencies in hydroelectric power projects.
Sec. 405. Shift of project loads to off-peak periods.
TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY
Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Leasing program for lands within the Coastal Plain.
Sec. 504. Lease sales.
Sec. 505. Grant of leases by the Secretary.
Sec. 506. Lease terms and conditions.
Sec. 507. Coastal Plain environmental protection.
Sec. 508. Expedited judicial review.
Sec. 509. Rights-of-way across the Coastal Plain.
Sec. 510. Conveyance.
Sec. 511. Local government impact aid and community service assistance.
TITLE VI--HISTORIC PRESERVATION
Sec. 601. Prohibition.
Sec. 602. Removal from eligibility.
TITLE VII--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR
Sec. 701. Energy conservation by the Department of the Interior.
TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY
SEC. 101. STUDY OF EXISTING RIGHTS-OF-WAY ON FEDERAL LANDS TO DETERMINE
CAPABILITY TO SUPPORT NEW PIPELINES OR OTHER
TRANSMISSION FACILITIES.
(a) In General.--Within one year after the date of enactment of this
Act, the head of each Federal agency that has authorized a right-of-way
across Federal lands for transportation of energy supplies or
transmission of electricity shall review each such right-of-way and
submit a report to the Secretary of Energy and the Chairman of the
Federal Energy Regulatory Commission regarding--
(1) whether the right-of-way can be used to support new or
additional capacity; and
(2) what modifications or other changes, if any, would be
necessary to accommodate such additional capacity.
(b) Consultations and Considerations.--In performing the review, the
head of each agency shall--
(1) consult with agencies of State, tribal, or local units of
government as appropriate; and
(2) consider whether safety or other concerns related to
current uses might preclude the availability of a right-of-way
for additional or new transportation or transmission
facilities, and set forth those considerations in the report.
SEC. 102. INVENTORY OF ENERGY PRODUCTION POTENTIAL OF ALL FEDERAL
PUBLIC LANDS.
(a) Inventory Requirement.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture and the Secretary of
Energy, shall conduct an inventory of the energy production potential
of all Federal public lands other than national park lands and lands in
any wilderness area, with respect to wind, solar, coal, and geothermal
power production.
(b) Limitations.--
(1) In general.--The Secretary shall not include in the
inventory under this section the matters to be identified in
the inventory under section 604 of the Energy Act of 2000 (42
U.S.C. 6217).
(2) Wind and solar power.--The inventory under this section--
(A) with respect to wind power production shall be
limited to sites having a mean average wind speed--
(i) exceeding 12.5 miles per hour at a height
of 33 feet; and
(ii) exceeding 15.7 miles per hour at a
height of 164 feet; and
(B) with respect to solar power production shall be
limited to areas rated as receiving 450 watts per
square meter or greater.
(c) Examination of Restrictions and Impediments.--The inventory shall
identify the extent and nature of any restrictions or impediments to
the development of such energy production potential.
(d) Geothermal Power.--The inventory shall include an update of the
1978 Assessment of Geothermal Resources by the United States Geological
Survey.
(e) Completion and Updating.--The Secretary--
(1) shall complete the inventory by not later than 2 years
after the date of the enactment of this Act; and
(2) shall update the inventory regularly thereafter.
(f) Reports.--The Secretary shall submit to the Committee on
Resources of the House of Representatives and to the Committee on
Energy and Natural Resources of the Senate and make publicly
available--
(1) a report containing the inventory under this section, by
not later than 2 years after the effective date of this
section; and
(2) each update of such inventory.
SEC. 103. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO EMERGING
ENERGY TECHNOLOGY.
(a) In General.--Each Federal agency shall carry out a review of its
regulations and standards to determine those that act as a barrier to
market entry for emerging energy-efficient technologies, including fuel
cells, combined heat and power, and distributed generation (including
small-scale renewable energy).
(b) Report to Congress.--No later than 18 months after date of
enactment of this Act, each agency shall provide a report to the
Congress and the President detailing all regulatory barriers to
emerging energy-efficient technologies, along with actions the agency
intends to take, or has taken, to remove such barriers.
(c) Periodic Review.--Each agency shall subsequently review its
regulations and standards in this manner no less frequently than every
5 years, and report their findings to the Congress and the President.
Such reviews shall include a detailed analysis of all agency actions
taken to remove existing barriers to emerging energy technologies.
SEC. 104. INTERAGENCY AGREEMENT ON ENVIRONMENTAL REVIEW OF INTERSTATE
NATURAL GAS PIPELINE PROJECTS.
(a) In General.--The Secretary of Energy, in coordination with the
Federal Energy Regulatory Commission, shall establish an administrative
interagency task force to develop an interagency agreement to expedite
and facilitate the environmental review and permitting of interstate
natural gas pipeline projects.
(b) Task Force Members.--The task force shall include a
representative of each of the Bureau of Land Management, the United
States Fish and Wildlife Service, the Army Corps of Engineers, the
Forest Service, the Environmental Protection Agency, the Advisory
Council on Historic Preservation, and such other agencies as the
Secretary of Energy and the Federal Energy Regulatory Commission
consider appropriate.
(c) Terms of Agreement.--The interagency agreement shall require that
agencies complete their review of interstate pipeline projects within a
specific period of time after referral of the matter by the Federal
Energy Regulatory Commission.
(d) Submittal of Agreement.--The Secretary of Energy shall submit a
final interagency agreement under this section to the Congress by not
later than 6 months after the effective date of this section.
SEC. 105. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF FEDERAL LANDS.
(a) Sense of the Congress.--It is the sense of Congress that Federal
land managing agencies should enhance the use of energy efficient
technologies in the management of natural resources.
(b) Energy Efficient Buildings.--To the extent economically
practicable, the Secretary of the Interior and the Secretary of
Agriculture shall seek to incorporate energy efficient technologies in
public and administrative buildings associated with management of the
National Park System, National Wildlife Refuge System, National Forest
System, and other public lands and resources managed by such
Secretaries.
(c) Energy Efficient Vehicles.--To the extent economically
practicable, the Secretary of the Interior and the Secretary of
Agriculture shall seek to use energy efficient motor vehicles,
including vehicles equipped with biodiesel or hybrid engine
technologies, in the management of the National Park System, National
Wildlife Refuge System, and other public lands and managed by the
Secretaries.
TITLE II--OIL AND GAS DEVELOPMENT
Subtitle A--Offshore Oil and Gas
SEC. 201. SHORT TITLE.
This subtitle may be referred to as the ``Royalty Relief Extension
Act of 2001''.
SEC. 202. LEASE SALES IN WESTERN AND CENTRAL PLANNING AREA OF THE GULF
OF MEXICO.
(a) In General.--For all tracts located in water depths of greater
than 200 meters in the Western and Central Planning Area of the Gulf of
Mexico, including that portion of the Eastern Planning Area of the Gulf
of Mexico encompassing whole lease blocks lying west of 87 degrees, 30
minutes West longitude, any oil or gas lease sale under the Outer
Continental Shelf Lands Act occurring within 2 years after the date of
enactment of this Act shall use the bidding system authorized in
section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (30 U.S.C.
1337(a)(1)(H)), except that the suspension of royalties shall be set at
a volume of not less than the following:
(1) 17.5 million barrels of oil equivalent for fields in
water depths of 200 to 400 meters.
(2) 52.5 million barrels of oil equivalent for fields in 400
to 800 meters of water.
(3) 9 million barrels of oil equivalent for each lease in
water depths of 800 to 1,600 meters.
(4) 12 million barrels of oil equivalent for each lease in
water depths greater than 1,600 meters.
(b) Relationship to Existing Authority.--Except as expressly provided
in this section, nothing in this section is intended to limit the
authority of the Secretary of the Interior under the Outer Continental
Shelf Lands Act (43 U.S.C. 1301 et seq.) to provide royalty suspension.
SEC. 203. SAVINGS CLAUSE.
Nothing in this subtitle shall be construed to affect any offshore
pre-leasing, leasing, or development moratorium, including any
moratorium applicable to the Eastern Planning Area of the Gulf of
Mexico located off the Gulf Coast of Florida.
SEC. 204. ANALYSIS OF GULF OF MEXICO FIELD SIZE DISTRIBUTION,
INTERNATIONAL COMPETITIVENESS, AND INCENTIVES FOR
DEVELOPMENT.
(a) In General.--The Secretary of the Interior and the Secretary of
Energy shall enter into appropriate arrangements with the National
Academy of Sciences to commission the Academy to perform the following:
(1) Conduct an analysis and review of existing Gulf of Mexico
oil and natural gas resource assessments, including--
(A) analysis and review of assessments recently
performed by the Minerals Management Service, the 1999
National Petroleum Council Gas Study, the Department of
Energy's Offshore Marginal Property Study, and the
Advanced Resources International, Inc. Deepwater Gulf
of Mexico model; and
(B) evaluation and comparison of the accuracy of
assumptions of the existing assessments with respect to
resource field size distribution, hydrocarbon
potential, and scenarios for leasing, exploration, and
development.
(2) Evaluate the lease terms and conditions offered by the
Minerals Management Service for Lease Sale 178, and compare the
financial incentives offered by such terms and conditions to
financial incentives offered by the terms and conditions that
apply under leases for other offshore areas that are competing
for the same limited offshore oil and gas exploration and
development capital, including offshore areas of West Africa
and Brazil.
(3) Recommend what level of incentives for all water depths
are appropriate in order to ensure that the United States
optimizes the domestic supply of oil and natural gas from the
offshore areas of the Gulf of Mexico that are not subject to
current leasing moratoria. Recommendations under this paragraph
should be made in the context of the importance of the oil and
natural gas resources of the Gulf of Mexico to the future
energy and economic needs of the United States.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary of the Interior shall submit a report to the
Committee on Resources in the House of Representatives and the
Committee on Energy and Natural Resources in the Senate, summarizing
the findings of the National Academy of Sciences pursuant to subsection
(a) and providing recommendations of the Secretary for new policies or
other actions that could help to further increase oil and natural gas
production from the Gulf of Mexico.
Subtitle B--Improvements to Federal Oil and Gas Management
SEC. 221. SHORT TITLE.
This subtitle may be cited as the ``Federal Oil and Gas Lease
Management Improvement Demonstration Program Act of 2001''.
SEC. 222. STUDY OF IMPEDIMENTS TO EFFICIENT LEASE OPERATIONS.
(a) In General.--The Secretary of the Interior and the Secretary of
Agriculture shall jointly undertake a study of the impediments to
efficient oil and gas leasing and operations on Federal onshore lands
in order to identify means by which unnecessary impediments to the
expeditious exploration and production of oil and natural gas on such
lands can be removed.
(b) Contents.--The study under subsection (a) shall include the
following:
(1) A review of the process by which Federal land managers
accept or reject an offer to lease, including the timeframes in
which such offers are acted upon, the reasons for any delays in
acting upon such offers, and any recommendations for expediting
the response to such offers.
(2) A review of the approval process for applications for
permits to drill, including the timeframes in which such
applications are approved, the impact of compliance with other
Federal laws on such timeframes, any other reasons for delays
in making such approvals, and any recommendations for
expediting such approvals.
(3) A review of the approval process for surface use plans of
operation, including the timeframes in which such applications
are approved, the impact of compliance with other Federal laws
on such timeframes, any other reasons for delays in making such
approvals, and any recommendations for expediting such
approvals.
(4) A review of the process for administrative appeal of
decisions or orders of officers or employees of the Bureau of
Land Management with respect to a Federal oil or gas lease,
including the timeframes in which such appeals are heard and
decided, any reasons for delays in hearing or deciding such
appeals, and any recommendations for expediting the appeals
process.
(c) Report.--The Secretaries shall report the findings and
recommendations resulting from the study required by this section to
the Committee on Resources of the House of Representatives and to the
Committee on Energy and Natural Resources of the Senate no later than 6
months after the date of the enactment of this Act.
SEC. 223. ELIMINATION OF UNWARRANTED DENIALS AND STAYS.
(a) In General.--The Secretary shall ensure that unwarranted denials
and stays of lease issuance and unwarranted restrictions on lease
operations are eliminated from the administration of oil and natural
gas leasing on Federal land.
(b) Land Designated for Multiple Use.--Federal land available for oil
and natural gas leasing under any Bureau of Land Management resource
management plan or Forest Service leasing analysis shall be available
without lease stipulations more stringent than restrictions on surface
use and operations imposed under the laws (including regulations) of
the oil and natural gas conservation authority of the State in which
the lands are located, unless the Secretary includes in the decision
approving the management plan or leasing analysis or in the Secretary's
acceptance of an offer to lease a written explanation why more
stringent stipulations are warranted.
(c) Rejection of Offer To Lease.--
(1) In general.--If the Secretary rejects an offer to lease
Federal lands for oil or natural gas development on the ground
that the land is unavailable for oil and natural gas leasing,
the Secretary shall provide a written, detailed explanation of
the reasons the land is unavailable for leasing.
(2) Previous resource management decision.--If the
determination of unavailability is based on a previous resource
management decision, the explanation shall include a careful
assessment of whether the reasons underlying the previous
decision are still persuasive.
(3) Segregation of available land from unavailable land.--The
Secretary may not reject an offer to lease Federal land for oil
and natural gas development that is available for such leasing
on the ground that the offer includes land unavailable for
leasing. The Secretary shall segregate available land from
unavailable land, on the offeror's request following notice by
the Secretary, before acting on the offer to lease.
(d) Disapproval or Required Modification of Surface Use Plans of
Operations and Application for Permit To Drill.--The Secretary shall
provide a written, detailed explanation of the reasons for disapproving
or requiring modifications of any surface use plan of operations or
application for permit to drill with respect to oil or natural gas
development on Federal lands.
SEC. 224. LIMITATION ON COST RECOVERY FOR APPLICATIONS.
Notwithstanding sections 304 and 504 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1734, 1764) and section 9701 of title
31, United States Code, the Secretary shall not recover the Secretary's
costs with respect to applications and other documents relating to oil
and gas leases.
SEC. 225. CONSULTATION WITH SECRETARY OF AGRICULTURE.
Section 17(h) of the Mineral Leasing Act (30 U.S.C. 226(h)) is
amended to read as follows:
``(h)(1) In issuing any lease on National Forest System lands
reserved from the public domain, the Secretary of the Interior shall
consult with the Secretary of Agriculture in determining stipulations
on surface use under the lease.
``(2)(A) A lease on lands referred to in paragraph (1) may not be
issued if the Secretary of Agriculture determines, after consultation
under paragraph (1), that the terms and conditions of the lease,
including any prohibition on surface occupancy for lease operations,
will not be sufficient to adequately protect such lands under the
National Forest Management Act of 1976 (16 U.S.C. 1600 et seq.).
``(B) The authority of the Secretary of Agriculture under this
paragraph may be delegated only to the Undersecretary of Agriculture
for Natural Resources and Environment.''.
Subtitle C--Miscellaneous
SEC. 231. OFFSHORE SUBSALT DEVELOPMENT.
Section 5 of the Outer Continental Shelf Lands Act of 1953 (43 U.S.C.
1334) is amended by adding at the end the following:
``(k) Suspension of Operations for Subsalt Exploration.--
Notwithstanding any other provision of law or regulation, to prevent
waste caused by the drilling of unnecessary wells and to facilitate the
discovery of additional hydrocarbon reserves, the Secretary may grant a
request for a suspension of operations under any lease to allow the
reprocessing and reinterpretation of geophysical data to identify and
define drilling objectives beneath allocthonus salt sheets.''.
SEC. 232. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.
(a) Applicability of Section.--Notwithstanding any other provision of
law, the provisions of this section shall apply to all royalty in kind
accepted by the Secretary of the Interior under any Federal oil or gas
lease or permit under section 36 of the Mineral Leasing Act (30 U.S.C.
192), section 27 of the Outer Continental Shelf Lands Act (43 U.S.C.
1353), or any other mineral leasing law, in the period beginning on the
date of enactment of this Act through September 30, 2006.
(b) Terms and Conditions.--All royalty accruing to the United States
under any Federal oil or gas lease or permit under the Mineral Leasing
Act (30 U.S.C. 181 et seq.) or the Outer Continental Shelf Lands Act
(43 U.S.C. 1331 et seq.) shall, on the demand of the Secretary of the
Interior, be paid in oil or gas. If the Secretary of the Interior makes
such a demand, the following provisions apply to such payment:
(1) Delivery by, or on behalf of, the lessee of the royalty
amount and quality due under the lease satisfies the lessee's
royalty obligation for the amount delivered, except that
transportation and processing reimbursements paid to, or
deductions claimed by, the lessee shall be subject to review
and audit.
(2) Royalty production shall be placed in marketable
condition by the lessee at no cost to the United States.
(3) The Secretary of the Interior may--
(A) sell or otherwise dispose of any royalty oil or
gas taken in kind for not less than the market price;
and
(B) transport or process any oil or gas royalty taken
in kind.
(4) The Secretary of the Interior may, notwithstanding
section 3302 of title 31, United States Code, retain and use a
portion of the revenues from the sale of oil and gas royalties
taken in kind that otherwise would be deposited to
miscellaneous receipts, without regard to fiscal year
limitation, or may use royalty production, to pay the cost of--
(A) transporting the oil or gas,
(B) processing the gas, or
(C) disposing of the oil or gas.
(5) The Secretary may not use revenues from the sale of oil
and gas royalties taken in kind to pay for personnel, travel,
or other administrative costs of the Federal Government.
(c) Reimbursement of Cost.--If the lessee, pursuant to an agreement
with the United States or as provided in the lease, processes the
royalty gas or delivers the royalty oil or gas at a point not on or
adjacent to the lease area, the Secretary of the Interior shall--
(1) reimburse the lessee for the reasonable costs of
transportation (not including gathering) from the lease to the
point of delivery or for processing costs; or
(2) at the discretion of the Secretary of the Interior, allow
the lessee to deduct such transportation or processing costs in
reporting and paying royalties in value for other Federal oil
and gas leases.
(d) Benefit to the United States Required.--The Secretary may receive
oil or gas royalties in kind only if the Secretary determines that
receiving such royalties provides benefits to the United States greater
than or equal to those that would be realized under a comparable
royalty in value program.
(e) Report to Congress.--For each of the fiscal years 2002 through
2006 in which the United States takes oil or gas royalties in kind from
production in any State or from the Outer Continental Shelf, excluding
royalties taken in kind and sold to refineries under subsection (h),
the Secretary of the Interior shall provide a report to the Congress
describing--
(1) the methodology or methodologies used by the Secretary to
determine compliance with subsection (d), including performance
standards for comparing amounts received by the United States
derived from such royalties in kind to amounts likely to have
been received had royalties been taken in value;
(2) an explanation of the evaluation that led the Secretary
to take royalties in kind from a lease or group of leases,
including the expected revenue effect of taking royalties in
kind;
(3) actual amounts received by the United States derived from
taking royalties in kind, and costs and savings incurred by the
United States associated with taking royalties in kind; and
(4) an evaluation of other relevant public benefits or
detriments associated with taking royalties in kind.
(f) Deduction of Expenses.--
(1) In general.--Before making payments under section 35 of
the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of the
Outer Continental Shelf Lands Act (30 U.S.C. 1337(g)) of
revenues derived from the sale of royalty production taken in
kind from a lease, the Secretary of the Interior shall deduct
amounts paid or deducted under subsections (b)(4) and (c), and
shall deposit such amounts to miscellaneous receipts.
(2) Accounting for deductions.--If the Secretary of the
Interior allows the lessee to deduct transportation or
processing costs under subsection (c), the Secretary may not
reduce any payments to recipients of revenues derived from any
other Federal oil and gas lease as a consequence of that
deduction.
(g) Consultation With States.--The Secretary of the Interior--
(1) shall consult with a State before conducting a royalty in
kind program under this title within the State, and may
delegate management of any portion of the Federal royalty in
kind program to such State except as otherwise prohibited by
Federal law; and
(2) shall consult annually with any State from which Federal
oil or gas royalty is being taken in kind to ensure to the
maximum extent practicable that the royalty in kind program
provides revenues to the State greater than or equal to those
which would be realized under a comparable royalty in value
program.
(h) Provisions for Small Refineries.--
(1) Preference.--If the Secretary of the Interior determines
that sufficient supplies of crude oil are not available in the
open market to refineries not having their own source of supply
for crude oil, the Secretary may grant preference to such
refineries in the sale of any royalty oil accruing or reserved
to the United States under Federal oil and gas leases issued
under any mineral leasing law, for processing or use in such
refineries at private sale at not less than the market price.
(2) Proration among refineries in production area.--In
disposing of oil under this subsection, the Secretary of the
Interior may, at the discretion of the Secretary, prorate such
oil among such refineries in the area in which the oil is
produced.
(i) Disposition to Federal Agencies.--
(1) Onshore royalty.--Any royalty oil or gas taken by the
Secretary in kind from onshore oil and gas leases may be sold
at not less than the market price to any department or agency
of the United States.
(2) Offshore royalty.--Any royalty oil or gas taken in kind
from Federal oil and gas leases on the Outer Continental Shelf
may be disposed of only under section 27 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353).
(j) Preference for Federal Low-Income Energy Assistance Programs.--In
disposing of royalty oil or gas taken in kind under this section, the
Secretary may grant a preference to any person, including any State or
Federal agency, for the purpose of providing additional resources to
any Federal low-income energy assistance program.
SEC. 233. COOPERATIVE OIL AND GAS RESEARCH AND INFORMATION CENTERS.
(a) In General.--The Secretary of the Interior may establish and
operate in accordance with this section regional centers administered
by the United States Geological Survey. Each such center shall be known
as a United States Geological Survey Cooperative Oil and Gas Research
and Information Center.
(b) Partnership.--Each Center shall be established and operated under
a partnership with the government of the State in which the Center is
located, through the agency of the State that is responsible for
geological survey activities.
(c) Functions.--The Secretary, through each such Center, shall--
(1) conduct oil and natural gas exploration and production
research in the region in which the Center is located; and
(2) archive and provide public access to data regarding oil
and natural gas reserves and production in the region,
including information developed through research under
paragraph (1).
(d) Research.--
(1) Cost sharing.--The Federal share of the cost of research
conducted under this section may not exceed 50 percent.
(2) Private contributions.--The Secretary--
(A) may accept private contributions of property and
services for research conducted under this section; and
(B) shall apply the value of such contributions to
the non-Federal share of the costs of such research.
SEC. 234. MARGINAL WELL PRODUCTION INCENTIVES.
To enhance the economics of marginal oil and gas production by
increasing the ultimate recovery from marginal wells when the cash
price of West Texas Intermediate crude oil, as posted on the Dow Jones
Commodities Index chart, is less than $15 per barrel for 180
consecutive pricing days or when the price of natural gas delivered at
Henry Hub, Louisiana, is less than $2.00 per million British thermal
units for 180 consecutive days, the Secretary shall reduce the royalty
rate as production declines for--
(1) onshore oil wells producing less than 30 barrels per day;
(2) onshore gas wells producing less than 120 million British
thermal units per day;
(3) offshore oil wells producing less than 300 barrels of oil
per day; and
(4) offshore gas wells producing less than 1,200 million
British thermal units per day.
SEC. 235. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND
STUDIES.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by
inserting after section 37 the following:
``reimbursement for costs of certain analyses, documentation, and
studies
``Sec. 38. (a) In General.--The Secretary of the Interior shall
reimburse a person who is a lessee, operator, operating rights owner,
or applicant for an oil or gas lease under this Act for costs incurred
by the person in preparing any project-level analysis, documentation,
or related study required under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) with respect to the lease, through
royalty credits attributable to the lease, unit agreement, or project
area for which the analysis, documentation, or related study is
prepared.
``(b) Conditions.--The Secretary shall provide reimbursement under
subsection (b) only if--
``(1) adequate funding to enable the Secretary to timely
prepare the analysis, documentation, or related study is not
appropriated;
``(2) the person paid the costs voluntarily; and
``(3) the person maintains records of its costs in accordance
with regulations prescribed by the Secretary.''.
(c) Application.--The amendments made by this section shall apply
with respect to any lease entered into before, on, or after the date of
the enactment of this Act.
(d) Deadline for Regulations.--The Secretary shall issue regulations
implementing the amendments made by this section by not later than 90
days after the date of the enactment of this Act.
TITLE III--GEOTHERMAL ENERGY DEVELOPMENT
SEC. 301. ROYALTY REDUCTION AND RELIEF.
(a) Royalty Reduction.--Section 5(a) of the Geothermal Steam Act of
1970 (30 U.S.C. 1004(a)) is amended by striking ``not less than 10 per
centum or more than 15 per centum'' and inserting ``not more than 8 per
centum''.
(b) Royalty Relief.--
(1) In general.--Notwithstanding section 5 of the Geothermal
Steam Act of 1970 (30 U.S.C. 1004(a)) and any provision of any
lease under that Act, no royalty is required to be paid--
(A) under any qualified geothermal energy lease with
respect to commercial production of heat or energy from
a facility that begins such production in the 5-year
period beginning on the date of the enactment of this
Act; or
(B) on qualified expansion geothermal energy.
(2) 3-year application.--Paragraph (1) applies only to
commercial production of heat or energy from a facility in the
first 3 years of such production.
(c) Definitions.--In this section:
(1) Qualified expansion geothermal energy.--The term
``qualified expansion geothermal energy''--
(A) subject to subparagraph (B), means geothermal
energy produced from a generation facility for which
the rated capacity is increased by more than 10 percent
as a result of expansion of the facility carried out in
the 5-year period beginning on the date of enactment of
this Act; and
(B) does not include the rated capacity of the
generation facility on the date of enactment of this
Act.
(2) Qualified geothermal energy lease.--The term ``qualified
geothermal energy lease'' means a lease under the Geothermal
Steam Act of 1970 (30 U.S.C. 1001 et seq.)--
(A) that was executed before the end of the 5-year
period beginning on the date of the enactment of this
Act; and
(B) under which no commercial production of any form
of heat or energy occurred before the date of the
enactment of this Act.
SEC. 302. EXEMPTION FROM ROYALTIES FOR DIRECT USE OF LOW TEMPERATURE
GEOTHERMAL ENERGY RESOURCES.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) is
amended--
(1) in paragraph (c) by redesignating subparagraphs (1) and
(2) as subparagraphs (A) and (B);
(2) by redesignating paragraphs (a) through (d) in order as
paragraphs (1) through (4);
(3) by inserting ``(a) In General.--'' after ``Sec. 5.''; and
(4) by adding at the end the following new subsection:
``(b) Exemption for Use of Low Temperature Resources.--
``(1) In general.--In lieu of any royalty or rental under
subsection (a), a lease for qualified development and direct
utilization of low temperature geothermal resources shall
provide for payment by the lessee of an annual fee of not less
than $100, and not more than $1,000, in accordance with the
schedule issued under paragraph (2).
``(2) Schedule.--The Secretary shall issue a schedule of fees
under this section under which a fee is based on the scale of
development and utilization to which the fee applies.
``(3) Definitions.--In this subsection:
``(A) Low temperature geothermal resources.--The term
`low temperature geothermal resources' means geothermal
steam and associated geothermal resources having a
temperature of less than 195 degrees Fahrenheit.
``(B) Qualified development and direct utilization.--
The term `qualified development and direct utilization'
means development and utilization in which all products
of geothermal resources, other than any heat utilized,
are returned to the geothermal formation from which
they are produced.''.
SEC. 303. AMENDMENTS RELATING TO LEASING ON FOREST SERVICE LANDS.
The Geothermal Steam Act of 1970 is amended--
(1) in section 15(b) (30 U.S.C. 1014(b))--
(A) by inserting ``(1)'' after ``(b)''; and
(B) in paragraph (1) (as designated by subparagraph
(A) of this paragraph) in the first sentence--
(i) by striking ``with the consent of, and''
and inserting ``after consultation with the
Secretary of Agriculture and''; and
(ii) by striking ``the head of that
Department'' and inserting ``the Secretary of
Agriculture''; and
(2) by adding at the end the following:
``(2)(A) A geothermal lease for lands withdrawn or acquired in aid of
functions of the Department of Agriculture may not be issued if the
Secretary of Agriculture, after the consultation required by paragraph
(1), determines that no terms or conditions, including a prohibition on
surface occupancy for lease operations, would be sufficient to
adequately protect such lands under the National Forest Management Act
of 1976 (16 U.S.C. 1600 et seq.).
``(B) The authority of the Secretary of Agriculture under this
paragraph may be delegated only to the Undersecretary of Agriculture
for Natural Resources and Environment.''.
SEC. 304. DEADLINE FOR DETERMINATION ON PENDING NONCOMPETITIVE LEASE
APPLICATIONS.
Not later than 90 days after the date of the enactment of this Act,
the Secretary of the Interior shall, with respect to each application
pending on the date of the enactment of this Act for a lease under the
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.), issue a final
determination of--
(1) whether or not to conduct a lease sale by competitive
bidding; and
(2) whether or not to award a lease without competitive
bidding.
SEC. 305. OPENING OF PUBLIC LANDS UNDER MILITARY JURISDICTION.
(a) In General.--Except as otherwise provided in the Geothermal Steam
Act of 1970 (30 U.S.C. 1001 et seq.) and other provisions of Federal
law applicable to development of geothermal energy resources within
public lands, all public lands under the jurisdiction of a Secretary of
a military department shall be open to the operation of such laws and
development and utilization of geothermal steam and associated
geothermal resources, as that term is defined in section 2 of the
Geothermal Steam Act of 1970 (30 U.S.C. 1001), without the necessity
for further action by the Secretary or the Congress.
(b) Conforming Amendment.--Section 2689 of title 10, United States
Code, is amended by striking ``including public lands,'' and inserting
``other than public lands,''.
(c) Treatment of Existing Leases.--Upon the expiration of any lease
in effect on the date of the enactment of this Act of public lands
under the jurisdiction of a military department for the development of
any geothermal resource, such lease may, at the option of the lessee--
(1) be treated as a lease under the Geothermal Steam Act of
1970 (30 U.S.C. 1001 et seq.), and be renewed in accordance
with such Act; or
(2) be renewed in accordance with the terms of the lease, if
such renewal is authorized by such terms.
(d) Regulations.--The Secretary of the Interior, with the advice and
concurrence of the Secretary of the military department concerned,
shall prescribe such regulations to carry out this section as may be
necessary. Such regulations shall contain guidelines to assist in
determining how much, if any, of the surface of any lands opened
pursuant to this section may be used for purposes incident to
geothermal energy resources development and utilization.
(e) Closure for Purposes of National Defense or Security.--In the
event of a national emergency or for purposes of national defense or
security, the Secretary of the Interior, at the request of the
Secretary of the military department concerned, shall close any lands
that have been opened to geothermal energy resources leasing pursuant
to this section.
SEC. 306. APPLICATION OF AMENDMENTS.
The amendments made by this title apply with respect to any lease
executed before, on, or after the date of the enactment of this Act.
SEC. 307. REVIEW AND REPORT TO CONGRESS.
The Secretary of the Interior shall promptly review and report to the
Congress regarding the status of all moratoria on and withdrawals from
leasing under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)
of known geothermal resources areas (as that term is defined in section
2 of that Act (30 U.S.C. 1001), specifying for each such area whether
the basis for such moratoria or withdrawal still applies.
SEC. 308. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND
STUDIES.
(a) In General.--The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et
seq.) is amended by adding at the end the following:
``reimbursement for costs of certain analyses, documentation, and
studies
``Sec. 30. (a) In General.--The Secretary of the Interior shall
reimburse a person who is a lessee, operator, operating rights owner,
or applicant for a lease under this Act for costs incurred by the
person in preparing any project-level analysis, documentation, or
related study required under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) with respect to the lease, through
royalty credits attributable to the lease, unit agreement, or project
area for which the analysis, documentation, or related study is
prepared.
``(b) Conditions.--The Secretary shall provide reimbursement under
subsection (a) only if--
``(1) adequate funding to enable the Secretary to timely
prepare the analysis, documentation, or related study is not
appropriated;
``(2) the person paid the costs voluntarily; and
``(3) the person maintains records of its costs in accordance
with regulations prescribed by the Secretary.''.
(b) Application.--The amendments made by this section shall apply
with respect to any lease entered into before, on, or after the date of
the enactment of this Act.
(c) Deadline for Regulations.--The Secretary shall issue regulations
implementing the amendments made by this section by not later than 90
days after the date of the enactment of this Act.
TITLE IV--HYDROPOWER
SEC. 401. STUDY AND REPORT ON INCREASING ELECTRIC POWER PRODUCTION
CAPABILITY OF EXISTING FACILITIES.
(a) In General.--The Secretary of the Interior shall conduct a study
of the potential for increasing electric power production capability at
existing facilities under the administrative jurisdiction of the
Secretary.
(b) Content.--The study under this section shall include
identification and description in detail of each facility that is
capable, with or without modification, of producing additional
hydroelectric power, including estimation of the existing potential for
the facility to generate hydroelectric power.
(c) Report.--The Secretary shall submit to the Congress a report on
the findings, conclusions, and recommendations of the study under this
section by not later than 12 months after the date of enactment of this
Act. The Secretary shall include in the report the following:
(1) The identifications, descriptions, and estimations
referred to in subsection (b).
(2) A description of activities the Secretary is currently
conducting or considering, or that could be considered, to
produce additional hydroelectric power from each identified
facility.
(3) A summary of action that has already been taken by the
Secretary to produce additional hydroelectric power from each
identified facility.
(4) The costs to install, upgrade, or modify equipment or
take other actions to produce additional hydroelectric power
from each identified facility.
(5) The benefits that would be achieved by such installation,
upgrade, modification, or other action, including quantified
estimates of any additional energy or capacity from each
facility identified under subsection (b).
(6) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric power
production by replacing turbine runners.
(7) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric power
production by performing generator uprates and rewinds.
(8) The impact of increased hydroelectric power production on
irrigation, fish, wildlife, Indian tribes, river health, water
quality, navigation, recreation, fishing, and flood control.
(9) Any additional recommendations the Secretary considers
advisable to increase hydroelectric power production from, and
reduce costs and improve efficiency at, facilities under the
jurisdiction of the Secretary.
SEC. 402. INSTALLATION OF POWERFORMER AT FOLSOM POWER PLANT,
CALIFORNIA.
(a) In General.--The Secretary of the Interior may install a
powerformer at the Bureau of Reclamation Folsom power plant in Folsom,
California, to replace a generator and transformer that are due for
replacement due to age.
(b) Reimbursable Costs.--Costs incurred by the United States for
installation of a powerformer under this section shall be treated as
reimbursable costs and shall bear interest at current long-term
borrowing rates of the United States Treasury at the time of
acquisition.
(c) Local Cost Sharing.--In addition to reimbursable costs under
subsection (b), the Secretary shall seek contributions from power users
toward the costs of the powerformer and its installation.
SEC. 403. CONSERVATION THROUGH PUMP MODERNIZATION.
(a) Pump Replacement Program.--The Secretary of the Interior shall--
(1) conduct a study to determine what pumps associated with
water delivery projects should be replaced, based on a cost-
benefit analysis of modernizing pumping installations,
including determination and consideration of the savings in
energy costs that would result from such replacement; and
(2) based on the findings of the study, replace each pump for
which the benefits of such replacement (including such energy
costs savings) is greater than the cost of the pump
replacement.
(b) Costs.--
(1) Reimbursable costs.--Subject to the limitation in
paragraph (3), the costs incurred by the United States for
replacement of any pump under this section shall be treated as
reimbursable costs and shall bear interest at current long-term
borrowing rates of the United States Treasury at the time of
acquisition.
(2) Local cost sharing.--The Secretary may enter into an
agreement with project beneficiaries to secure up-front payment
of all or a portion of the reimbursable costs of any pump
replacement authorized or undertaken by the Secretary under
this section.
(3) Commercial firm power rate impacts.--The commercial firm
power rate for the Reclamation project having a pump
replacement performed under this section shall not be increased
as a result of the replacement.
(c) Authorization of Appropriations.--For replacement of pumps under
this section there is authorized to be appropriated to the Secretary
$20,000,000.
SEC. 404. STUDY AND IMPLEMENTATION OF INCREASED OPERATIONAL
EFFICIENCIES IN HYDROELECTRIC POWER PROJECTS.
(a) In General.--The Secretary of Interior shall conduct a study of
operational methods and water scheduling techniques at all
hydroelectric power plants under the administrative jurisdiction of the
Secretary that have an electric power production capacity greater than
50 megawatts, to--
(1) determine whether such power plants and associated river
systems are operated so as to maximize energy and capacity
capabilities; and
(2) identify measures that can be taken to improve
operational flexibility at such plants to achieve such
maximization.
(b) Report.--The Secretary shall submit a report on the findings,
conclusions, and recommendations of the study under this section by not
later than 18 months after the date of the enactment of this Act,
including a summary of the determinations and identifications under
paragraphs (1) and (2) of subsection (a).
(c) Cooperation by Federal Power Marketing Administrations.--The
Secretary shall coordinate with the Administrator of each Federal power
marketing administration in--
(1) determining how the value of electric power produced by
each hydroelectric power facility that produces power marketed
by the administration can be maximized; and
(2) implementing measures identified under subsection (a)(2).
(d) Limitation on Implementation of Measures.--Implementation under
subsections (a)(2) and (b)(2) shall be limited to those measures that
can be implemented within the constraints imposed on Department of the
Interior facilities by other uses required by law.
SEC. 405. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.
(a) In General.--The Secretary of the Interior shall--
(1) review electric power consumption by Bureau of
Reclamation facilities for water pumping purposes; and
(2) make such adjustments in such pumping as possible to
minimize the amount of electric power consumed for such pumping
during periods of peak electric power consumption, including by
performing as much of such pumping as possible during off-peak
hours at night.
(b) Consent of Affected Irrigation Customers Required.--The Secretary
may not under this section make any adjustment in pumping at a facility
without the consent of each person that has contracted with the United
States for delivery of water from the facility for use for irrigation
and that would be affected by such adjustment.
(c) Existing Obligations Not Affected.--This section shall not be
construed to affect any existing obligation of the Secretary to provide
electric power, water, or other benefits from Bureau of Reclamation
facilities.
TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY
SEC. 501. SHORT TITLE.
This title may be cited as the ``Arctic Coastal Plain Domestic Energy
Security Act of 2001''.
SEC. 502. DEFINITIONS.
In this title:
(1) Coastal plain.--The term ``Coastal Plain'' means that
area identified as such in the map entitled ``Arctic National
Wildlife Refuge'', dated August 1980, as referenced in section
1002(b) of the Alaska National Interest Lands Conservation Act
of 1980 (16 U.S.C. 3142(b)(1)), comprising approximately
1,549,000 acres.
(2) Secretary.--The term ``Secretary'', except as otherwise
provided, means the Secretary of the Interior or the
Secretary's designee.
SEC. 503. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.
(a) In General.--The Secretary shall take such actions as are
necessary--
(1) to establish and implement in accordance with this title
a competitive oil and gas leasing program under the Mineral
Leasing Act (30 U.S.C. 181 et seq.) that will result in an
environmentally sound program for the exploration, development,
and production of the oil and gas resources of the Coastal
Plain; and
(2) to administer the provisions of this title through
regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that ensure
the oil and gas exploration, development, and production
activities on the Coastal Plain will result in no significant
adverse effect on fish and wildlife, their habitat, subsistence
resources, and the environment, and including, in furtherance
of this goal, by requiring the application of the best
commercially available technology for oil and gas exploration,
development, and production to all exploration, development,
and production operations under this title in a manner that
ensures the receipt of fair market value by the public for the
mineral resources to be leased.
(b) Repeal.--Section 1003 of the Alaska National Interest Lands
Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
(c) Compliance With Requirements Under Certain Other Laws.--
(1) Compatibility.--For purposes of the National Wildlife
Refuge System Administration Act of 1966, the oil and gas
leasing program and activities authorized by this section in
the Coastal Plain are deemed to be compatible with the purposes
for which the Arctic National Wildlife Refuge was established,
and that no further findings or decisions are required to
implement this determination.
(2) Adequacy of the department of the interior's legislative
environmental impact statement.--The ``Final Legislative
Environmental Impact Statement'' (April 1987) on the Coastal
Plain prepared pursuant to section 1002 of the Alaska National
Interest Lands Conservation Act of 1980 (16 U.S.C. 3142) and
section 102(2)(C) of the National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the
requirements under the National Environmental Policy Act of
1969 that apply with respect to actions authorized to be taken
by the Secretary to develop and promulgate the regulations for
the establishment of a leasing program authorized by this title
before the conduct of the first lease sale.
(3) Compliance with nepa for other actions.--Before
conducting the first lease sale under this title, the Secretary
shall prepare an environmental impact statement under the
National Environmental Policy Act of 1969 with respect to the
actions authorized by this title that are not referred to in
paragraph (2). Notwithstanding any other law, the Secretary is
not required to identify nonleasing alternative courses of
action or to analyze the environmental effects of such courses
of action. The Secretary shall only identify a preferred action
for such leasing and a single leasing alternative, and analyze
the environmental effects and potential mitigation measures for
those two alternatives. The identification of the preferred
action and related analysis for the first lease sale under this
title shall be completed within 18 months after the date of
enactment of this Act. The Secretary shall only consider public
comments that specifically address the Secretary's preferred
action and that are filed within 20 days after publication of
an environmental analysis. Notwithstanding any other law,
compliance with this paragraph is deemed to satisfy all
requirements for the analysis and consideration of the
environmental effects of proposed leasing under this title.
(d) Relationship to State and Local Authority.--Nothing in this title
shall be considered to expand or limit State and local regulatory
authority.
(e) Special Areas.--
(1) In general.--The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, and the North Slope
Borough, may designate up to a total of 45,000 acres of the
Coastal Plain as a Special Area if the Secretary determines
that the Special Area is of such unique character and interest
so as to require special management and regulatory protection.
The Secretary shall designate as such a Special Area the
Sadlerochit Spring area, comprising approximately 4,000 acres
as depicted on the map referred to in section 502(1).
(2) Management.--Each such Special Area shall be managed so
as to protect and preserve the area's unique and diverse
character including its fish, wildlife, and subsistence
resource values.
(3) Exclusion from leasing or surface occupancy.--The
Secretary may exclude any Special Area from leasing. If the
Secretary leases a Special Area, or any part thereof, for
purposes of oil and gas exploration, development, production,
and related activities, there shall be no surface occupancy of
the lands comprising the Special Area.
(4) Directional drilling.--Notwithstanding the other
provisions of this subsection, the Secretary may lease all or a
portion of a Special Area under terms that permit the use of
horizontal drilling technology from sites on leases located
outside the area.
(f) Limitation on Closed Areas.--The Secretary's sole authority to
close lands within the Coastal Plain to oil and gas leasing and to
exploration, development, and production is that set forth in this
title.
(g) Regulations.--
(1) In general.--The Secretary shall prescribe such
regulations as may be necessary to carry out this title,
including rules and regulations relating to protection of the
fish and wildlife, their habitat, subsistence resources, and
environment of the Coastal Plain, by no later than 15 months
after the date of enactment of this Act.
(2) Revision of regulations.--The Secretary shall
periodically review and, if appropriate, revise the rules and
regulations issued under subsection (a) to reflect any
significant biological, environmental, or engineering data that
come to the Secretary's attention.
SEC. 504. LEASE SALES.
(a) In General.--Lands may be leased pursuant to this title to any
person qualified to obtain a lease for deposits of oil and gas under
the Mineral Leasing Act (30 U.S.C. 181 et seq.).
(b) Procedures.--The Secretary shall, by regulation, establish
procedures for--
(1) receipt and consideration of sealed nominations for any
area in the Coastal Plain for inclusion in, or exclusion (as
provided in subsection (c)) from, a lease sale;
(2) the holding of lease sales after such nomination process;
and
(3) public notice of and comment on designation of areas to
be included in, or excluded from, a lease sale.
(c) Lease Sale Bids.--Bidding for leases under this title shall be by
sealed competitive cash bonus bids.
(d) Acreage Minimum in First Sale.--In the first lease sale under
this title, the Secretary shall offer for lease those tracts the
Secretary considers to have the greatest potential for the discovery of
hydrocarbons, taking into consideration nominations received pursuant
to subsection (b)(1), but in no case less than 200,000 acres.
(e) Timing of Lease Sales.--The Secretary shall--
(1) conduct the first lease sale under this title within 22
months after the date of enactment of this title; and
(2) conduct additional sales so long as sufficient interest
in development exists to warrant, in the Secretary's judgment,
the conduct of such sales.
SEC. 505. GRANT OF LEASES BY THE SECRETARY.
(a) In General.--The Secretary may grant to the highest responsible
qualified bidder in a lease sale conducted pursuant to section 504 any
lands to be leased on the Coastal Plain upon payment by the lessee of
such bonus as may be accepted by the Secretary.
(b) Subsequent Transfers.--No lease issued under this title may be
sold, exchanged, assigned, sublet, or otherwise transferred except with
the approval of the Secretary. Prior to any such approval the Secretary
shall consult with, and give due consideration to the views of, the
Attorney General.
SEC. 506. LEASE TERMS AND CONDITIONS.
(a) In General.--An oil or gas lease issued pursuant to this title
shall--
(1) provide for the payment of a royalty of not less than
12\1/2\ percent in amount or value of the production removed or
sold from the lease, as determined by the Secretary under the
regulations applicable to other Federal oil and gas leases;
(2) provide that the Secretary may close, on a seasonal
basis, portions of the Coastal Plain to exploratory drilling
activities as necessary to protect caribou calving areas and
other species of fish and wildlife;
(3) require that the lessee of lands within the Coastal Plain
shall be fully responsible and liable for the reclamation of
lands within the Coastal Plain and any other Federal lands that
are adversely affected in connection with exploration,
development, production, or transportation activities conducted
under the lease and within the Coastal Plain by the lessee or
by any of the subcontractors or agents of the lessee;
(4) provide that the lessee may not delegate or convey, by
contract or otherwise, the reclamation responsibility and
liability to another person without the express written
approval of the Secretary;
(5) provide that the standard of reclamation for lands
required to be reclaimed under this title shall be, as nearly
as practicable, a condition capable of supporting the uses
which the lands were capable of supporting prior to any
exploration, development, or production activities, or upon
application by the lessee, to a higher or better use as
approved by the Secretary;
(6) contain terms and conditions relating to protection of
fish and wildlife, their habitat, and the environment as
required pursuant to section 503(a)(2);
(7) provide that the lessee, its agents, and its contractors
use best efforts to provide a fair share, as determined by the
level of obligation previously agreed to in the 1974 agreement
implementing section 29 of the Federal Agreement and Grant of
Right of Way for the Operation of the Trans-Alaska Pipeline, of
employment and contracting for Alaska Natives and Alaska Native
Corporations from throughout the State;
(8) prohibit the export of oil produced under the lease; and
(9) contain such other provisions as the Secretary determines
necessary to ensure compliance with the provisions of this
title and the regulations issued under this title.
(b) Project Labor Agreements.--The Secretary, as a term and condition
of each lease under this title and in recognizing the Government's
proprietary interest in labor stability and in the ability of
construction labor and management to meet the particular needs and
conditions of projects to be developed under the leases issued pursuant
to this title and the special concerns of the parties to such leases,
shall require that the lessee and its agents and contractors negotiate
to obtain a project labor agreement for the employment of laborers and
mechanics on production, maintenance, and construction under the lease.
SEC. 507. COASTAL PLAIN ENVIRONMENTAL PROTECTION.
(a) No Significant Adverse Effect Standard To Govern Authorized
Coastal Plain Activities.--The Secretary shall, consistent with the
requirements of section 503, administer the provisions of this title
through regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that--
(1) ensure the oil and gas exploration, development, and
production activities on the Coastal Plain will result in no
significant adverse effect on fish and wildlife, their habitat,
and the environment; and
(2) require the application of the best commercially
available technology for oil and gas exploration, development,
and production on all new exploration, development, and
production operations.
(b) Site-Specific Assessment and Mitigation.--The Secretary shall
also require, with respect to any proposed drilling and related
activities, that--
(1) a site-specific analysis be made of the probable effects,
if any, that the drilling or related activities will have on
fish and wildlife, their habitat, and the environment;
(2) a plan be implemented to avoid, minimize, and mitigate
(in that order and to the extent practicable) any significant
adverse effect identified under paragraph (1); and
(3) the development of the plan shall occur after
consultation with the agency or agencies having jurisdiction
over matters mitigated by the plan.
(c) Regulations To Protect Coastal Plain Fish and Wildlife Resources,
Subsistence Users, and the Environment.--Before implementing the
leasing program authorized by this title, the Secretary shall prepare
and promulgate regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other measures designed to ensure that
the activities undertaken on the Coastal Plain under this title are
conducted in a manner consistent with the purposes and environmental
requirements of this title.
(d) Compliance With Federal and State Environmental Laws and Other
Requirements.--The proposed regulations, lease terms, conditions,
restrictions, prohibitions, and stipulations for the leasing program
under this title shall require compliance with all applicable
provisions of Federal and State environmental law and shall also
require the following:
(1) Standards at least as effective as the safety and
environmental mitigation measures set forth in items 1 through
29 at pages 167 through 169 of the ``Final Legislative
Environmental Impact Statement'' (April 1987) on the Coastal
Plain.
(2) Seasonal limitations on exploration, development, and
related activities, where necessary, to avoid significant
adverse effects during periods of concentrated fish and
wildlife breeding, denning, nesting, spawning, and migration.
(3) That exploration activities, except for surface
geological studies, be limited to the period between
approximately November 1 and May 1 each year and that
exploration activities shall be supported by ice roads, winter
trails with adequate snow cover, ice pads, ice airstrips, and
air transport methods, except that such exploration activities
may occur at other times, if--
(A) the Secretary determines, after affording an
opportunity for public comment and review, that special
circumstances exist necessitating that exploration
activities be conducted at other times of the year; and
(B) the Secretary finds that such exploration will
have no significant adverse effect on the fish and
wildlife, their habitat, and the environment of the
Coastal Plain.
(4) Design safety and construction standards for all
pipelines and any access and service roads, that--
(A) minimize, to the maximum extent possible, adverse
effects upon the passage of migratory species such as
caribou; and
(B) minimize adverse effects upon the flow of surface
water by requiring the use of culverts, bridges, and
other structural devices.
(5) Prohibitions on public access and use on all pipeline
access and service roads.
(6) Stringent reclamation and rehabilitation requirements,
consistent with the standards set forth in this title,
requiring the removal from the Coastal Plain of all oil and gas
development and production facilities, structures, and
equipment upon completion of oil and gas production operations,
except that the Secretary may exempt from the requirements of
this paragraph those facilities, structures, or equipment that
the Secretary determines would assist in the management of the
Arctic National Wildlife Refuge and that are donated to the
United States for that purpose.
(7) Appropriate prohibitions or restrictions on access by all
modes of transportation.
(8) Appropriate prohibitions or restrictions on sand and
gravel extraction.
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on use of
explosives.
(11) Avoidance, to the extent practicable, of springs,
streams, and river system; the protection of natural surface
drainage patterns, wetlands, and riparian habitats; and the
regulation of methods or techniques for developing or
transporting adequate supplies of water for exploratory
drilling.
(12) Avoidance or reduction of air traffic-related
disturbance to fish and wildlife.
(13) Treatment and disposal of hazardous and toxic wastes,
solid wastes, reserve pit fluids, drilling muds and cuttings,
and domestic wastewater, including an annual waste management
report, a hazardous materials tracking system, and a
prohibition on chlorinated solvents, in accordance with
applicable Federal and State environmental law.
(14) Fuel storage and oil spill contingency planning.
(15) Research, monitoring, and reporting requirements.
(16) Field crew environmental briefings.
(17) Avoidance of significant adverse effects upon
subsistence hunting, fishing, and trapping by subsistence
users.
(18) Compliance with applicable air and water quality
standards.
(19) Appropriate seasonal and safety zone designations around
well sites, within which subsistence hunting and trapping shall
be limited.
(20) Reasonable stipulations for protection of cultural and
archeological resources.
(21) All other protective environmental stipulations,
restrictions, terms, and conditions deemed necessary by the
Secretary.
(e) Considerations.--In preparing and promulgating regulations, lease
terms, conditions, restrictions, prohibitions, and stipulations under
this section, the Secretary shall consider the following:
(1) The stipulations and conditions that govern the National
Petroleum Reserve-Alaska leasing program, as set forth in the
1999 Northeast National Petroleum Reserve-Alaska Final
Integrated Activity Plan/Environmental Impact Statement.
(2) The environmental protection standards that governed the
initial Coastal Plain seismic exploration program under parts
37.31 to 37.33 of title 50, Code of Federal Regulations.
(3) The land use stipulations for exploratory drilling on the
KIC-ASRC private lands that are set forth in Appendix 2 of the
August 9, 1983, agreement between Arctic Slope Regional
Corporation and the United States.
(f) Facility Consolidation Planning.--
(1) In general.--The Secretary shall, after providing for
public notice and comment, prepare and update periodically a
plan to govern, guide, and direct the siting and construction
of facilities for the exploration, development, production, and
transportation of Coastal Plain oil and gas resources.
(2) Objectives.--The plan shall have the following
objectives:
(A) Avoiding unnecessary duplication of facilities
and activities.
(B) Encouraging consolidation of common facilities
and activities.
(C) Locating or confining facilities and activities
to areas that will minimize impact on fish and
wildlife, their habitat, and the environment.
(D) Utilizing existing facilities wherever
practicable.
(E) Enhancing compatibility between wildlife values
and development activities.
SEC. 508. EXPEDITED JUDICIAL REVIEW.
(a) Filing of Complaint.--
(1) Deadline.--Subject to paragraph (2), any complaint
seeking judicial review of any provision of this title or any
action of the Secretary under this title shall be filed in any
appropriate district court of the United States--
(A) except as provided in subparagraph (B), within
the 90-day period beginning on the date of the action
being challenged; or
(B) in the case of a complaint based solely on
grounds arising after such period, within 90 days after
the complainant knew or reasonably should have known of
the grounds for the complaint.
(2) Venue.--Any complaint seeking judicial review of an
action of the Secretary under this title may be filed only in
the United States Court of Appeals for the District of
Columbia.
(3) Limitation on scope of certain review.--Judicial review
of a Secretarial decision to conduct a lease sale under this
title, including the environmental analysis thereof, shall be
limited to whether the Secretary has complied with the terms of
this Act and shall be based upon the administrative record of
that decision. The Secretary's identification of a preferred
course of action to enable leasing to proceed and the
Secretary's analysis of environmental effects under this Act
shall be presumed to be correct unless shown otherwise by clear
and convincing evidence to the contrary.
(b) Limitation on Other Review.--Actions of the Secretary with
respect to which review could have been obtained under this section
shall not be subject to judicial review in any civil or criminal
proceeding for enforcement.
SEC. 509. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
(a) Exemption.--Title XI of the Alaska National Interest Lands
Conservation Act of 1980 (16 U.S.C. 3161 et seq.) shall not apply to
the issuance by the Secretary under section 28 of the Mineral Leasing
Act (30 U.S.C. 185) of rights-of-way and easements across the Coastal
Plain for the transportation of oil and gas.
(b) Terms and Conditions.--The Secretary shall include in any right-
of-way or easement referred to in subsection (a) such terms and
conditions as may be necessary to ensure that transportation of oil and
gas does not result in a significant adverse effect on the fish and
wildlife, subsistence resources, their habitat, and the environment of
the Coastal Plain, including requirements that facilities be sited or
designed so as to avoid unnecessary duplication of roads and pipelines.
(c) Regulations.--The Secretary shall include in regulations under
section 503(g) provisions granting rights-of-way and easements
described in subsection (a) of this section.
SEC. 510. CONVEYANCE.
In order to maximize Federal revenues by removing clouds on title to
lands and clarifying land ownership patterns within the Coastal Plain,
the Secretary, notwithstanding the provisions of section 1302(h)(2) of
the Alaska National Interest Lands Conservation Act (16 U.S.C.
3192(h)(2)), shall convey--
(1) to the Kaktovik Inupiat Corporation the surface estate of
the lands described in paragraph 2 of Public Land Order 6959,
to the extent necessary to fulfill the Corporation's
entitlement under section 12 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1611); and
(2) to the Arctic Slope Regional Corporation the subsurface
estate beneath such surface estate pursuant to the August 9,
1983, agreement between the Arctic Slope Regional Corporation
and the United States of America.
SEC. 511. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.
(a) Financial Assistance Authorized.--
(1) In general.--The Secretary may use amounts available from
the Coastal Plain Local Government Impact Aid Assistance Fund
established by subsection (d) to provide timely financial
assistance to entities that are eligible under paragraph (2)
and that are directly impacted by the exploration for or
production of oil and gas on the Coastal Plain under this
title.
(2) Eligible entities.--The North Slope Borough, Kaktovik,
and other boroughs, municipal subdivisions, villages, and any
other community organized under Alaska State law shall be
eligible for financial assistance under this section.
(b) Use of Assistance.--Financial assistance under this section may
be used only for--
(1) planning for mitigation of the potential effects of oil
and gas exploration and development on environmental, social,
cultural, recreational and subsistence values;
(2) implementing mitigation plans and maintaining mitigation
projects; and
(3) developing, carrying out, and maintaining projects and
programs that provide new or expanded public facilities and
services to address needs and problems associated with such
effects, including firefighting, police, water, waste
treatment, medivac, and medical services.
(c) Application.--
(1) In general.--Any community that is eligible for
assistance under this section may submit an application for
such assistance to the Secretary, in such form and under such
procedures as the Secretary may prescribe by regulation.
(2) North slope borough communities.--A community located in
the North Slope Borough may apply for assistance under this
section either directly to the Secretary or through the North
Slope Borough.
(3) Application assistance.--The Secretary shall work closely
with and assist the North Slope Borough and other communities
eligible for assistance under this section in developing and
submitting applications for assistance under this section.
(d) Establishment of Fund.--
(1) In general.--There is established in the Treasury the
Coastal Plain Local Government Impact Aid Assistance Fund.
(2) Use.--Amounts in the fund may be used only for providing
financial assistance under this section.
(3) Deposits.--Subject to paragraph (4), there shall be
deposited into the fund amounts received by the United States
as revenues derived from rents, bonuses, and royalties under on
leases and lease sales authorized under this title.
(4) Limitation on deposits.--The total amount in the fund may
not exceed $10,000,000.
(5) Investment of balances.--The Secretary of the Treasury
shall invest amounts in the fund in interest bearing government
securities.
(e) Authorization of Appropriations.--To provide financial assistance
under this section there is authorized to be appropriated to the
Secretary from the Coastal Plain Local Government Impact Aid Assistance
Fund $5,000,000 for each fiscal year.
TITLE VI--HISTORIC PRESERVATION
SEC. 601. PROHIBITION.
For purposes of the National Historic Preservation Act (Public Law
89-665, 16 U.S.C. 470 et seq.), no privately owned and operated
pipeline and related facilities (including all associated compressor
stations, taps, valves, and meter stations) that is in service or
available for service shall be eligible for inclusion on the National
Register of Historic Places without the consent of the owner thereof.
SEC. 602. REMOVAL FROM ELIGIBILITY.
Any pipeline and related facility identified in section 601 deemed
eligible for inclusion on the National Register of Historic Places
prior to the date of enactment of this title shall no longer be
eligible for inclusion, unless the owner of the pipeline and related
facility has given written consent and agreed to such eligibility.
TITLE VII--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR
SEC. 701. ENERGY CONSERVATION BY THE DEPARTMENT OF THE INTERIOR.
(a) In General.--The Secretary of the Interior shall--
(1) conduct a study to identify, evaluate, and recommend
opportunities for conserving energy by reducing the amount of
energy used by facilities of the Department of the Interior;
and
(2) wherever feasible and appropriate, reduce the use of
energy from traditional sources by encouraging use of
alternative energy sources, including solar power and power
from fuel cells, throughout such facilities and the public
lands of the United States.
(b) Reports.--The Secretary shall submit to the Congress--
(1) by not later than 90 days after the date of the enactment
of this Act, a report containing the findings, conclusions, and
recommendations of the study under subsection (a)(1); and
(2) by not later than December 31 each year, an annual report
describing progress made in--
(A) conserving energy through opportunities
recommended in the report under paragraph (1); and
(B) encouraging use of alternative energy sources
under subsection (a)(2).
Purpose of the Bill
The purpose of H.R. 2436 is to provide secure energy
supplies for the people of the United States, and for other
purposes.
Background and Need for Legislation
summary of the bill
H.R. 2436, the ``Energy Security Act,'' implements several
components of the President's energy policy agenda within the
jurisdiction of the Committee on Resources. It is intended to
increase, diversify, and facilitate delivery of energy supplies
from federal lands and off-shore areas.
Title I contains measures related to domestic energy
security, including an inventory of federal lands (except areas
managed by the National Park Service and wilderness areas) for
their wind, solar, coal and geothermal power potential, and
reviews of federal land rights-of-way to transmit energy
supplies.
Title II contains measures related to federal oil and gas
development, including the reestablishment of incentives for
certain deepwater leases; expedited reviews of impediments to
onshore federal lands oil and gas lease administration, with
requirements for reporting and explanations of decisions which
hinder such energy development; royalty-in-kind; and other
measures.
Title III provides incentives for the development of
geothermal energy on public lands.
Title IV contains measures to maximize value of the
hydroelectric power production of existing Bureau of
Reclamation facilities.
Title V authorizes oil and gas exploration, development and
production on the Coastal Plain (1002 Area) of the Arctic
National Wildlife Refuge (ANWR).
Title VI prohibits the listing of certain privately-owned
and operated pipelines on the National Register of Historic
Places.
Background
As President George W. Bush noted upon the establishment of
a White House-level National Energy Policy Development Group
soon after his inauguration, the country is facing the most
serious crisis in the supply of energy versus demand since the
oil market disruptions of the 1970's. Beginning in early March,
2001, the Committee has held four full committee hearings on
energy related topics and the several subcommittees have held
nine hearings on various energy issues as well. This oversight
was conducted during the interval when the President's task
group was developing its recommendations.
On May 17, 2001, the Bush Administration released the
National Energy Policy report which forms the blueprint for its
proposed national energy policy. The report, compiled by the
National Energy Policy Development Group chaired by Vice
President Richard Cheney, assesses U.S. energy shortages and
makes recommendations to close the gap between domestic energy
supply and demand.
According to the U.S. Energy Information Administration
(EIA), domestic energy production between 1991 and 2000
increased by 2.3 percent over the previous decade while energy
consumption increased by 17 percent. Increases in domestic
coal, natural gas, nuclear energy and renewable energy
production have been largely offset by declines in domestic oil
production. As a result, America has met almost all of its
rising energy demand during the last decade with increased
imports.
Currently, America is trying to meet the energy demand of a
dynamic, growing 21st century economy with last decade's supply
base and infrastructure. The EIA projects that by 2020 energy
consumption will increase by 32 percent. If the energy
production and consumption trends of the 1990's continue, the
periodic energy shortages and high prices our nation is
currently experiencing will soon become chronic. Ultimately,
the growth of America's economy will be limited by energy
availability undermining our standard of living and national
security. If we fail to resolve the energy crisis, California
provides a vision of the future--homeowners, farmers and
businesses facing soaring electricity prices, rolling
blackouts, financial turmoil and recession.
Legislation designed to ultimately increase energy supply
from federal lands and off-shore areas of the United States is
necessary, as many experts believe these areas hold the most
promise for new discoveries of oil and gas. Furthermore,
geothermal energy resources are concentrated in the western
U.S. as is much of the nation's known low-sulfur high-quality
coal. Other energy resources underlie public lands managed by
the Bureau of Land Management or the U.S. Forest Service.
H.R. 2436 is designed to increase energy supply from
federal lands and off-shore areas of the United States. Many
provisions of the legislation create new or additional
incentives for oil and gas development on federal lands and
areas of the outer continental shelf (OCS) that are not off-
limits to such development. This bill does not open any
national park, monument, or wilderness area to drilling or
mining. In addition, it does not attempt to lift existing
moratoria on OCS pre-leasing or leasing activities along the
Atlantic Ocean, Pacific Ocean, North Aleutian Basin, or Eastern
Gulf of Mexico. The bill also increases incentives for
development of environmentally-friendly geothermal and Bureau
of Reclamation hydroelectric power.
Partial Section-by-Section Analysis
Section 1. Short title
The short title of this Act is the ``Energy Security Act''.
Section 2. Table of contents
This section provides a table of contents for the bill.
Title I--General Protections for Energy Supply and Security
This title is intended to add to the knowledge base which
federal government agencies possess to better plan for the
development of domestic energy supplies and its transmission to
energy users. This title require studies and reports only. No
federal lands are opened for exploration or development by the
provisions of Title I.
Section 101. Study of existing rights-of-way on federal lands to
determine capability to support new pipelines and other
transmission facilities
Section 101 provides for a study of existing rights-of-way
on federal lands to determine whether such rights-of-way could
support additional capacity and what modifications may be
necessary to do so. Consultation with State and local officials
and Indian tribes is required, with deference to public safety
expressed as well.
Section 102. Inventory of energy production potential of all federal
public lands
Section 102 is parallel to inventory for oil and gas
resources required under Section 604 of the Energy Act of 2000,
Public Law 106-469. This section requires an inventory of all
public lands with energy production potential, except for land
within national parks and Wilderness Areas designated by
Congress. This inventory will identify lands with Class Four
and higher wind energy potential, receiving 450 watts per
square meter or greater solar radiation, coal and geothermal
energy resources. The U.S. Geological Survey already has a
national assessment for coal well underway and little
additional work will be required to meet these requirements.
The latest geothermal energy assessment of the United
States was in 1978 and needs to be updated. This assessment may
have overstated the abundance of high temperature geothermal
resources in the western U.S. However, the assessment did not
estimate the medium temperature resources at all because it was
not feasible to develop them at that time.
As part of the inventory, Section 102 requires that
restrictions and impediments to development of the inventoried
resources be identified and that the inventory be updated on a
regular basis after completion. Furthermore, the Committee
intends the exclusion of national park lands to mean any public
lands administered by the National Park Service.
Section 103. Review of regulations to eliminate barriers to emerging
energy technology
Section 103 provides for a review of agencies' regulations
to identify barriers to market-entry for emerging energy-
efficient technologies which may occur.
Section 104. Interagency agreement on environmental review of
interstate natural gas pipeline projects
Section 104 provides for the establishment of an inter-
agency task force to draft an agreement to expedite and
facilitate the environmental review and permitting of
interstate natural gas pipelines. A shortage of natural gas
transmission capacity to meet forecasted demand increases,
especially by planned electric generation facilities, is one of
the more immediate energy problems facing the nation. A
coordinated planning effort among land managers and regulatory
agencies with a stake in permitting is needed. The Committee
intends this provision to be fully consistent with the
Interagency Task Force established under Section 3 of Executive
Order 13212 of May 18, 2001, except that this provision is
specific only to natural gas pipelines.
Title II--Oil and Gas Development
Subtitle A--Offshore Oil and Gas
Section 201. Short title
The short title of this title is the ``Royalty Relief
Extension Act of 2001''.
Section 202. Lease sales in western and central planning area of the
Gulf of Mexico
Section 202 extends for two years the mandatory suspension
of certain volumes of oil and gas from royalty obligation for
deepwater outer continental shelf (OCS) leases in the central
and western Gulf of Mexico issued after enactment of H.R. 2436.
This section replicates the 1995 Deepwater Royalty Relief Act,
under which mandatory royalty relief expired in November 2000.
Section 202 differs from the 1995 law: for water depths greater
than 800 meters the section now reflects the suspension volume
per lease rather than per field and restricts the relief to the
same amount the Department of the Interior has granted
administratively. This section also contains a provision
expressly stating no intention to limit the Secretary of the
Interior's current authority to provide royalty suspension.
Section 203. Savings clause
Section 203 establishes that the bill does not affect
existing OCS moratoria on pre-leasing and leasing or
development activities.
Section 204. Analysis of Gulf of Mexico field size distribution,
international competitiveness, and incentives for development
Section 204 provides for a Department of the Interior/
Department of Energy jointly commissioned report by the
National Academy of Sciences into the various oil and gas
resource assessments and models of field distribution of the
Gulf of Mexico; a comparison of the current incentives for
deepwater development in the Gulf versus those offered in other
international deepwater areas for which investment capital
competes; and a recommendation for appropriateincentives to
optimize future oil and gas supplies from open areas in the Gulf of
Mexico. The Committee desires that the expert panel look at the full
range of water depths in the Gulf of Mexico, not just the deep or
ultradeep water, when making such analysis. Furthermore the Committee
expects the panel to consider recommendations for the possible need for
incentives to foster subsalt exploration, the drilling of highly
deviated wells, and deep drilling for natural gas. The Committee is
especially concerned that as opportunity to seek new natural gas
supplies in most other regions of the OCS remain closed, the central
and western Gulf of Mexico must be made especially attractive for
exploration and development.
Subtitle B--Improvements to Oil and Gas Management
Section 221. Short title
The short title of this subtitle is the ``Federal Oil and
Gas Lease Management Improvement Demonstration Program Act of
2001''.
Section 222. Study of impediments to efficient lease operations
Section 222 provides for the Department of the Interior and
Department of Agriculture to jointly study and report to
Congress on impediments to efficient oil and gas leasing on
Bureau of Land Management (BLM) and U.S. Forest Service-
administered lands. The study shall include a review of: (1)
action upon offers to lease and related time-frames; (2)
approval process for applications for permits to drill (APD)
and related time-frames with any recommendations for expediting
approvals; (3) approval process for surface use plans of
operation and related time-frames; and (4) the process for
administrative appeals of BLM oil and gas leasing-related
decisions and time-frames with recommendations for expediting
such appeals.
Section 223. Elimination of unwarranted denials and stays
Section 223 provides for elimination of unwarranted denials
and stays of oil and gas administrative decisions. It requires
the Secretary to explain in writing the reasons in the record
of decisions accepting land-use plans which incorporate lease
stipulations more stringent than the relevant State's oil and
gas conservation authority imposes upon fee and State lands.
Likewise such written explanation of reasons is required for
rejections of offers to lease federal lands, and when
disapprovals or modifications of surface use plans or APDs
land-use plans are issued with respect to oil and gas
development.
Section 224. Limitations on cost recovery for applications
Section 224 limits the Department of the Interior from
recovering administrative costs from oil and gas lease
applicants or lessees in recognition that bonus and rental
payments and production royalties are already paid by such
persons.
Section 225. Consultation with the Secretary of Agriculture
Section 225 amends current law to require Secretary of the
Interior to consult with Secretary of Agriculture with respect
to leasing decisions on National Forest System lands. An
amendment adopted in Committee retains the veto power of the
Secretary of Agriculture over leasing decisions after such
consultation, but the decision to veto leasing cannot be
delegated lower than to the Under Secretary for Natural
Resources and Environment.
Subtitle C--Miscellaneous
Section 231. Offshore salt development
Section 231 provides discretionary authority under the OCS
Lands Act to the Secretary of the Interior to extend the
primary lease term for certain salt sheets upon a demonstration
by the lessee that additional time is necessary to adequately
reprocess and reinterpret geophysical data (generally seismic)
to define structures and drilling targets beneath the
horizontal salt sheets of the Gulf of Mexico.
Section 232. Program on oil and gas royalties in kind
Section 232 provides additional royalty-in-kind (RIK)
flexibility to the Secretary of the Interior through Fiscal
Year 2006 while requiring analysis of expected receipts to the
Treasury compared to the usual royalty-in-value method. The
section also establishes annual reporting requirement of such
analyses. Consultation with a State is required before
conducting an RIK program for onshore leases and the Secretary
of the Interior may delegate management of the RIK program to a
willing State. Preference to qualified small refiners is
continued and an express provision for Secretarial preference
to provide RIK volumes to entities involved in low-income
energy assistance programs consistent with the National Energy
Policy is included.
Section 233. Cooperative oil and gas research and information centers
Section 233 provides the Secretary of the Interior with the
discretion to establish cost-shared oil and gas technology
transfer centers administered by the U.S. Geological Survey in
partnership with the various State geological surveys to
archive and provide public access to oil and gas data and to
conduct research. An amendment was adopted by the committee to
change the title of such centers to ``Cooperative Oil and Gas
Research and Information Centers'' to clarify the intent of
this section is not to overlap jurisdiction of the Petroleum
Technology Transfer Council and the regional centers maintained
by this Department of Energy-adjunct group. The Committee
intends the centers to be established by this section to be
focused on the archiving of geological and geophysical data
from the oil and gas industry, and the promotion of research
efforts in the earth sciences with impact upon the search for
oil and gas, rather than an emphasis upon petroleum engineering
studies.
Section 234. Marginal well production incentives
Section 234 provides royalty rate reductions to be
determined by the Secretary of the Interior for marginal oil
and gas wells on federal lands and the OCS and defines the
volumetric output, price threshold and length of time necessary
to trigger relief. This provision is intended as a means to
keeping such production on-line during oil and gas economic
downturns. The Committee expects the Secretary to devise relief
akin to that already in regulation for onshore lease
``stripper'' oil wells whereby the royalty obligation is
lowered in steps versus the rate of production, i.e., the less
the output of the well, the lower the rate.
Section 235. Reimbursement for costs of NEPA analyses, documentation
and studies.
Section 235 amends the Mineral Leasing Act to provide for
reimbursement of costs for certain project-level analyses,
documentation and studies when conducted by a lessee, operator
or applicant for an oil and gas lease post-enactment of this
section, if the Secretary of the Interior determines
appropriated funds are unavailable to timely prepare such
environmental materials. The section requires the Secretary to
promptly issue regulations to implement this section.
Title III--Geothermal Energy Development
Geothermal reservoirs are generally classified according to
their temperature and nature of the reservoir fluid, which can
range from fresh water to acidic brines. High temperature
geothermal systems, greater than 300+F, offer the
greatest output and lowest cost electrical generation, Medium
temperature systems, 195+ to 300+F,
usually require the use of higher cost binary generating plants
to produce electricity. Low temperature systems, less than
195+F, generally can only be used for direct use
applications such as space heating, agricultural process heat,
geothermal heat pumps and spas.
Based on the 1978 geothermal assessment by the U.S.
Geological Survey, 12 western States have identified or
potential high temperature geothermal resources. The total high
temperature geothermal resource potential in these States is
estimated at 22,000 megawatts (MW). Only about 2,800 MW of
electricity in the United States is currently generated using
geothermal energy. Most of the country's geothermal resources
are on public land, which accounts for about 75 percent of the
electrical power generated by geothermal resources. The United
States leases rights to develop geothermal energy under the
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.).
Most of the provisions in Title III are based on
information obtained as the result of an oversight hearing held
on May 3, 2001, by the Subcommittee on Energy and Mineral
Resources.
Under the Geothermal Steam Act of 1970, a royalty on
production of geothermal energy must be paid to the federal
government--generally 10 to 15 percent of the value of the
geothermal steam. Since there is no market for the steam
itself, valuation of the steam requires a ``net-back'' method
for calculating the royalty due from the value of the
electricity produced from the steam. That is, the value of the
electricity is the starting point from which deductions are
allowed for the operating costs of the generating plant and a
return on the capital investment in the plant, as well as
electric transmission costs. The remaining value is the base
price of the geothermal steam upon which the royalty is levied.
The capital costs for constructing a geothermal facility
are higher than for a conventional fossil fuel facility. The
present royalty scale makes electrical generation from
geothermal energy less competitive with fossil fuels in normal
electricity markets. The present royalty system also
discourages the use of low temperature (less than 195 degrees
F) geothermal resources.
One of the objectives of these amendments to the Geothermal
Steam Act of 1970 is to make geothermal steam more competitive
with fossil fuels in generating electricity. A lower royalty is
key to making geothermal energy more competitive. Title III
caps the royalty rate on geothermal steam at 8 percent and
encourages investment in new geothermal power facilities or
expansions of existing plants by allowing a royalty free period
of three years. The royalty holiday allows the operator to
recover some capital costs before paying a royalty. The royalty
holiday expires after five years. Finally, direct use of low
temperature geothermal resources is encouraged by eliminating
royalties and substituting a low cost fee system.
Many of the constraints on geothermal development are due
to administrative problems. Geothermal development requires the
timely and reasonable administration of leasing, permitting and
environmental reviews by federal land management agencies.
However, applications for geothermal leases covering thousands
of acres have been awaiting action for years. Permits to site
geothermal steam-driven electric generating plants often take
many months or years to process. Environmental reviews are
unnecessarily extensive, costly and repetitive. In areas where
an Environmental Impact Statement has been completed, decisions
by federal agencies have been subject to years of delay and
appeal.
Further complicating the process, the Secretary of the
Interior may lease geothermal energy beneath U.S. Forest
Service-administered lands only with the consent of the
Secretary of Agriculture. There does not appear to be any
common procedure in place for processing requests for this
approval. Lease applications languish for years in the Forest
Service bureaucracy. In the Northwest, for example, every known
geothermal area is on Forest Service land and application for
geothermal leases have been made for around 1,000,000 acres.
Only about 50,000 acres have been leased.
Section 303 of these amendments requires consultation with
the Secretary of Agriculture to consult with the Secretary of
the Interior in prescribing terms and conditions of use for
surface activities on National Forest System lands. Only after
this consultation, the Secretary of Agriculture may veto a
geothermal lease if she finds that none of the stipulations
attached to the lease are sufficient to adequately protect the
surface lands under the National Forest Management Act of 1976.
The Committee hopes that this procedure will restore
accountability to a process that currently is not working.
Many of the untapped geothermal resources in the western
United States are on public land reserved for military use. The
Committee believes that many these geothermal resources can be
developed in a manner fully consistent with the primary
military function of thosereservations. Currently, the military
can issue geothermal leases on these lands, but there is no uniformity
among terms or royalties for these leases. Unlike leases under the
Geothermal Steam Act of 1970, the States do not share in revenue
collected from military geothermal leases. These amendments place
geothermal leasing of public lands reserved for military use under the
Geothermal Steam Act of 1970. Leases on these lands are subject to
approval of the Secretary of the military department concerned. The
Committee believes that these changes will encourage greater
development of geothermal resources on federal land and reduce the
costs to the federal government of program administration. This change
also restores State participation in revenue derived from public land.
Title IV--Hydropower
Title IV seeks to maximize the benefits received from the
federal hydropower facilities under the control of the
Department of Interior. The Secretary of the Interior is
directed to submit a report to Congress describing alternatives
for enhancing capability at existing facilities. The Bureau of
Reclamation provided to the Committee a report titled ``Power
Uprating Program. * * * to improve hydroelectric generation''
on April 21, 1994. The summary of actions taken to produce
additional hydroelectric power provided in the report requested
under Title IV should focus on efforts taken after the
completion of the Uprate program. This report is meant to focus
on recent, ongoing, and potential activity; not to focus on a
historical accounting of past activities. Nothing in the
language should be construed to indicate that the Bureau of
Reclamation should slow down efforts it is already engaged in
to provide enhanced capability. This study should not include
an analysis of building new dams, but should include analysis
of any potential that might reasonably be considered to add
power production facilities to existing dams that do not
currently have such facilities. This title also grants the
Secretary the authority to install a powerformer at a Bureau of
Reclamation power plant in Folsom, California. This high
voltage generator will result in lower losses and therefore
increased energy output. The word powerformer is used in this
Title to refer to the newly available technology, and not to
any specific vendor of the technology. The Secretary is
directed to study pumps at Department facilities and proceed
with replacing those that should be based on an economic
analysis that includes energy savings and the cost of the new
pump.
The Department of Interior shall study, report on, and
implement improvements to operational methods, efficiency of
operation, and water scheduling practices, used at Bureau of
Reclamation powerplants to assure these plants are operated in
a manner that maximizes the power producing potential of these
plants, and provides as much operational flexibility for power
production as possible. The hydroelectric power plant
facilities under the jurisdiction of the Department of the
Interior are operated for multiple purposes, one of which is
power production. This title does not require that other uses
be placed as subordinate to power in the operation of these
facilities. Since the Power Marketing Administrations posses
technical expertise relative to the value of the power
production, the Secretary is directed to consult with them to
determine and implement measures to maximize that value. In
addition to coordinating with the Power Marketing
Administrations regarding these measures, it is the intent of
the Committee that the Secretary consult with the appropriate
Power Marketing Administration whenever it considers taking
action that will affect hydropower generation and the
operational flexibility currently present at that facility.
This title also directs the Department of Interior to shift as
much of its pumping load as possible at Bureau of Reclamation
facilities to off peak times. This will be done to increase the
electrical capacity that is available during the on peak
(daytime) hours when the value of the energy is the highest and
it is most needed on the electrical grid.
Title V--Arctic Coastal Plain Domestic Energy
Title V opens the coastal plain of ANWR to oil and gas
leasing, subject to what Secretary of the Interior Gale Norton
testified would be ``the most stringent environmental
protection requirements ever applied to Federal energy
production.'' The Coastal Plain is of unique interest for its
giant energy potential, with estimated oil resources that could
make it the largest-ever discovery of oil in the United States.
The U.S. Geological Survey estimates the Coastal Plain holds
5.7 billion to 16 billion barrels of recoverable oil, with a
mean estimate of 10.4 billion barrels. These estimates are
based on highly conservative assumptions as to the recovery
rate of oil. In reality, through continually improving
technology, there is considerably higher success in recovering
oil in Alaska's arctic than is assumed in these estimates. Up
to 42 billion barrels are estimated to be ``in-place.''
Even at 10.4 billion barrels, the Coastal Plain's resources
would be larger than those of the nearby Prudhoe Bay supergiant
oil field at its discovery. Prudhoe Bay is the largest oil
field ever discovered in the United States.
Applying modern technology and methods now used on Alaska's
North Slope, a cumulative total of only 2,000 acres within the
entire ANWR would be necessary to produce all oil from the
Coastal Plain. Wildlife would be fully protected. Experience
has shown that caribou, fish, birds, polar bears and wildlife
species are unharmed by oil development in Alaska's arctic.
Several species have proliferated amidst the environmentally
sensitive oil operations. The Central Arctic Caribou herd in
and near the Prudhoe Bay facilities has grown from a population
of 3,000 right before development begun to 27,000 today a nine-
fold increase during two decades in which Prudhoe Bay and the
satellite oil fields have delivered more than 14 billion
barrels to Americans.
The Department of Fish and Game of the State of Alaska,
which has responsibility to manage fish and game resources of
Alaska, has concluded that caribou can and do exist with oil
development, and that potential impacts can be mitigated so as
to avoid a significant adverse affect on this and other species
that use the Coastal Plain.
The Coastal Plain is the home to Kaktovik, a Native Village
which is the only community in ANWR. Representatives of this
area have testified of overwhelming support within the Inupiat
Eskimo community of Alaska's North Slope for the benefits of
opening the Coastal Plain.
Choosing not to develop domestic supergiant oil fields like
the one believed to underlie the Coastal Plain only guarantees
that dependence on foreign sources of oil from places like Iraq
(which is currently providing Americans with a million barrels
of oil a day), will rise far into the future.
In the markup, an amendment was approved to add a new
condition to oil leases on the Coastal Plain. The new condition
prohibits the export of oil produced from the Coastal Plain.
While no Alaska North Slope oil is currently exported (none has
since May 2000), this amendment is an acceptable means to
ensure that oil underlying federal lands is required to be sent
only to the people of the United States.
Title VI--Historic Preservation
Section 601 would exempt any privately owned or operated
pipeline (including all associated compressor stations, taps,
valves, and meter stations) that is in service or available for
service as eligible for inclusion on the National Register of
Historic Places without the consent of the owner. Any pipeline
and related facility deemed for inclusion on the National
Register prior to the date of enactment shall no longer be
eligible for inclusion unless the owner of the pipeline gives
written consent and agrees to such eligibility.
Title VII--Conservation of Energy by the Department of the Interior
Title VII allows the Secretary of the Interior to conduct a
study to identify and recommend opportunities for conserving
energy by reducing the amount of energy used by facilities of
the Department of the Interior and to encourage the use of
alternative fuels. This provision was offered by Congressman
John E. Peterson.
Committee Action
Resources Committee Chairman James V. Hansen (R-UT)
introduced H.R. 2436 on July 10, 2001. The bill was originally
cosponsored by Congressman Don Young (R-AK), Congressman W.J.
``Billy'' Tauzin (R-LA), Congresswoman Barbara Cubin (R-WY),
Congressman Mac Thornberry (R-TX), Congressman C.L. ``Butch''
Otter (R-ID) and Congressman Ken Calvert (R-CA). The bill was
referred to the Committee on Resources and additionally to the
Committee on Energy and Commerce. The Committee on Resources
held a hearing on the bill on July 11, 2001. On July 17, 2001,
the Committee met to consider the bill. As follows is a list of
the amendments which were offered at the markup, and their
disposition:
Congressman Nick J. Rahall II (D-WV) offered an amendment
in the nature of a substitute, which was not adopted by a roll
call as follows:
Congressman Edward Markey (D-MA) offered an amendment to
strike Title V (Arctic Coastal Plain Domestic Energy) of the
bill, which was not adopted by roll call vote as follows:
Congressman Peter A. DeFazio (D-OR) offered an amendment to
prohibit the export of oil produced under a lease issued under
Title V of the bill. The amendment was adopted by unanimous
consent.
Congressman Rush D. Holt (D-NJ) offered an amendment to
authorize a National Academy of Sciences study of the
availability of sufficient water to conduct various activities
associated with the activities authorized by Title V of the
bill. The amendment was not adopted by voice vote.
Congressman Ken Calvert (R-CA) offered an amendment to
Title IV (Hydropower) relating to power rates and cost sharing
for Bureau of Reclamation projects. The amendment was adopted
by unanimous consent.
Congressman Ron Kind (D-WI) offered an amendment to strike
Title II (Oil and Gas Development). The amendment was not
adopted by a roll call vote as follows:
Congressman Jay Inslee (D-WA) offered an amendment to
strike sections 225 (Consultation with Secretary of
Agriculture) and section 303 (Amendments relating to leasing on
Forest Service lands). The amendment was not adopted by voice
vote.
Congressman Scott McInnis (R-CO) offered an amendment to
sections 225 and 303 to clarify and condition the authority of
the Secretary of Agriculture relating to the granting of oil
and gas and geothermal leases. Congressman Peter DeFazio
offered an amendment to the McInnis amendment to strike the two
paragraphs regarding the delegation of authority from the
Secretary. The DeFazio amendment to the McInnis was not adopted
on a roll call vote as follows:
The McInnis amendment was then adopted by voice vote.
Congressman George Miller (D-CA) offered an amendment to
strike section 224 (Limitation on cost recovery for
applications) and insert a new section 224 (Cost recovery for
oil and gas leasing). The amendment failed by a roll call vote
as follows:
Congresswoman Barbara Cubin (R-WY) offered an amendment to
change the name of the oil and gas technology transfer centers
authorized by section 233 to ``Cooperative Oil and Gas Research
and Information Center''. The amendment was adopted by voice
vote.
Congressman Betty McCollum (D-MN) offered and withdrew an
amendment regarding project labor agreements relating to lease
sales conducted under section 202 (Lease sales in Western and
Central Planning Area of the Gulf of Mexico).
Congressman Mac Thornberry (R-TX) offered an amendment to
prohibit privately owned and operated pipelines from being
eligible for inclusion on the National Register of Historic
Places and to mandate the removal of any pipelines currently on
the Register without the written consent of the owner. The
amendment was adopted by voice vote.
Congressman Ron Kind offered and withdrew an amendment
relating to increased authorizations of appropriations for the
Land and Water Conservation Fund.
Congressman John E. Peterson (R-PA) offered an amendment
regarding energy conservation by the Department of the
Interior. The amendment was adopted by voice vote.
Congressman Mark Udall (R-CO) offered an amendment to limit
the energy resources inventoried on federal lands and limit the
federal lands included in the inventory. The amendment was not
adopted by a roll call vote as follows:
Congressman Jim Gibbons (R-NV) offered an amendment to
clarify the application of royalty relief to expanded
geothermal facilities. The amendment was adopted by voice vote.
Congressman DeFazio offered an amendment requiring, as part
of a report to Congress, the consideration of increased
hydroelectric power production on irrigation, fish, wildlife,
Indian tribes, river health, water quality, navigation,
recreation, fishing and flood control. The amendment was
adopted by voice vote.
Congressman Inslee offered an amendment requiring a
consideration of pipeline safety as part of a pipeline rights-
of-way study under section 101 of the bill. A point of order
was sustained against the amendment for violating rule XVI of
the Rules of the House of Representatives.
Congresswoman Hilda L. Solis (D-CA) offered an amendment to
require consultation with Indian tribes as part of the pipeline
rights-of-way study required under section 101 of the bill. The
amendment was adopted by voice vote.
Congressman Inslee offered an amendment to remove the
limits on the inventory of energy production potential of all
federal public lands under section 102. The amendment was
adopted by voice vote.
Congressman Inslee offered an amendment regarding the
enhancement of energy efficiency in the management of federal
lands. Congressman W. J. ``Billy'' Tauzin (R-LA) offered an
amendment to the Inslee amendment to insert the word
``economically'' before ``practical''. The Tauzin amendment to
the Inslee amendment was adopted by voice vote. The Inslee
amendment, as amended, was adopted by voice vote.
H.R. 2436, as amended, was then ordered favorably reported
to the House of Representatives by a roll call vote as follows:
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. The Committee has requested
but has not yet received a cost estimate from the Congressional
Budget Office. The Committee believes that enactment of H.R.
2436 will both raise revenues for the federal treasury and
reduce receipts; however, the net result will not have a
significant effect on the budget of the United States.
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, credit
authority, or an increase or decrease in tax expenditures. The
Committee believes that enactment of H.R. 2436 will result in
increased revenue to the United States, as well as a loss of
receipts. The net result will not have a significant effect on
the budget of the United States. In addition, the Committee
believes that the bill authorizes a minor amount of direct
spending.
3. General Performance Goals and Objectives.--As required
by clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to provide secure energy supplies for
the people of the United States.
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 requested but not received a cost
estimate for this bill from the Director of the Congressional
Budget Office.
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):
MINERAL LEASING ACT
* * * * * * *
Sec. 17. (a) * * *
* * * * * * *
[(h) The Secretary of the Interior may not issue any lease on
National Forest System Lands reserved from the public domain
over the objection of the Secretary of Agriculture.]
(h)(1) In issuing any lease on National Forest System lands
reserved from the public domain, the Secretary of the Interior
shall consult with the Secretary of Agriculture in determining
stipulations on surface use under the lease.
(2)(A) A lease on lands referred to in paragraph (1) may not
be issued if the Secretary of Agriculture determines, after
consultation under paragraph (1), that the terms and conditions
of the lease, including any prohibition on surface occupancy
for lease operations, will not be sufficient to adequately
protect such lands under the National Forest Management Act of
1976 (16 U.S.C. 1600 et seq.).
(B) The authority of the Secretary of Agriculture under this
paragraph may be delegated only to the Undersecretary of
Agriculture for Natural Resources and Environment.
* * * * * * *
reimbursement for costs of certain analyses, documentation, and studies
Sec. 38. (a) In General.--The Secretary of the Interior shall
reimburse a person who is a lessee, operator, operating rights
owner, or applicant for an oil or gas lease under this Act for
costs incurred by the person in preparing any project-level
analysis, documentation, or related study required under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) with respect to the lease, through royalty credits
attributable to the lease, unit agreement, or project area for
which the analysis, documentation, or related study is
prepared.
(b) Conditions.--The Secretary shall provide reimbursement
under subsection (b) only if--
(1) adequate funding to enable the Secretary to
timely prepare the analysis, documentation, or related
study is not appropriated;
(2) the person paid the costs voluntarily; and
(3) the person maintains records of its costs in
accordance with regulations prescribed by the
Secretary.
* * * * * * *
----------
SECTION 5 OF THE OUTER CONTINENTAL SHELF LANDS ACT OF 1953
Sec. 5. Administration of Leasing of the Outer Continental
Shelf.--(a) * * *
* * * * * * *
(k) Suspension of Operations for Subsalt Exploration.--
Notwithstanding any other provision of law or regulation, to
prevent waste caused by the drilling of unnecessary wells and
to facilitate the discovery of additional hydrocarbon reserves,
the Secretary may grant a request for a suspension of
operations under any lease to allow the reprocessing and
reinterpretation of geophysical data to identify and define
drilling objectives beneath allocthonus salt sheets.
* * * * * * *
----------
GEOTHERMAL STEAM ACT OF 1970
* * * * * * *
Sec. 5. (a) In General.--Geothermal leases shall provide
for--
[(a)] (1) a royalty of [not less than 10 per centum
or more than 15 per centum] not more than 8 per centum
of the amount or value of steam, or any other form of
heat or energy derived from production under the lease
and sold or utilized by the lessee or reasonably
susceptible to sale or utilization by the lessee;
[(b)] (2) a royalty of not more than 5 per centum of
the value of any byproduct derived from production
under the lease and sold or utilized or reasonably
susceptible of sale or utilization by the lessee,
except that as to any byproduct which is a mineral
named in section 1 of the Mineral Leasing Act of
February 25, 1920, as amended (30 U.S.C. 181), the rate
of royalty for such mineral shall be the same as that
provided in that Act and the maximum rate of royalty
for such mineral shall not exceed the maximum royalty
applicable under that Act;
[(c)] (3) payment in advance of an annual rental of
not less than $1 per acre or fraction thereof for each
year of the lease. If there is no well on the leased
lands capable of producing geothermal resources in
commercial quantities, the failure to pay rental on or
before the anniversary date shall terminate the lease
by operation of law: Provided, however, That whenever
the Secretary discovers that the rental payment due
under a lease is paid timely but the amount of the
payment is deficient because of an error or other
reason and the deficiency is nominal, as determined by
the Secretary pursuant to regulations prescribed by
him, he shall notify the lessee of the deficiency and
such lease shall not automatically terminate unless the
lessee fails to pay the deficiency within the period
prescribed in the notice: Provided further, That where
any lease has been terminated automatically by
operation of law under this section for failure to pay
rental timely and it is shown to the satisfaction of
the Secretary of the Interior that the failure to pay
timely the lease rental was justifiable or not due to a
lack of reasonable diligence, he in his judgment may
reinstate the lease if--
[(1)] (A) a petition for reinstatement,
together with the required rental, is filed
with the Secretary of the Interior; and
[(2)] (B) no valid lease has been issued
affecting any of the lands in the terminated
lease prior to the filing of the petition for
reinstatement; and
[(d)] (4) a minimum royalty of $2 per acre or
fraction thereof in lieu of rental payable at the
expiration of each lease year for each producing lease,
commencing with the lease year beginning on or after
the commencement of production in commercial
quantities. For the purpose of determining royalties
hereunder the value of any geothermal steam and
byproduct used by the lessee and not sold and
reasonably susceptible of sale shall be determined by
the Secretary, who shall take into consideration the
cost of exploration and production and the economic
value of the resource in terms of its ultimate
utilization.
(b) Exemption for Use of Low Temperature Resources.--
(1) In general.--In lieu of any royalty or rental
under subsection (a), a lease for qualified development
and direct utilization of low temperature geothermal
resources shall provide for payment by the lessee of an
annual fee of not less than $100, and not more than
$1,000, in accordance with the schedule issued under
paragraph (2).
(2) Schedule.--The Secretary shall issue a schedule
of fees under this section under which a fee is based
on the scale of development and utilization to which
the fee applies.
(3) Definitions.--In this subsection:
(A) Low temperature geothermal resources.--
The term ``low temperature geothermal
resources'' means geothermal steam and
associated geothermal resources having a
temperature of less than 195 degrees
Fahrenheit.
(B) Qualified development and direct
utilization.--The term ``qualified development
and direct utilization'' means development and
utilization in which all products of geothermal
resources, other than any heat utilized, are
returned to the geothermal formation from which
they are produced.
* * * * * * *
Sec. 15. (a) * * *
(b)(1) Geothermal leases for lands withdrawn or acquired in
aid of functions of the Department of Agriculture may be issued
only [with the consent of, and] after consultation with the
Secretary of Agriculture and subject to such terms and
conditions as may be prescribed by, [the head of that
Department] the Secretary of Agriculture to insure adequate
utilization of the lands for the purposes for which they were
withdrawn or acquired. Geothermal leases for lands to which
section 24 of the Federal Power Act, as amended (16 U.S.C.
818), is applicable, may be issued only with the consent of,
and subject to, such terms and conditions as the Federal Power
Commission may prescribe to insure adequate utilization of such
lands for power and related purposes.
(2)(A) A geothermal lease for lands withdrawn or acquired in
aid of functions of the Department of Agriculture may not be
issued if the Secretary of Agriculture, after the consultation
required by paragraph (1), determines that no terms or
conditions, including a prohibition on surface occupancy for
lease operations, would be sufficient to adequately protect
such lands under the National Forest Management Act of 1976 (16
U.S.C. 1600 et seq.).
(B) The authority of the Secretary of Agriculture under this
paragraph may be delegated only to the Undersecretary of
Agriculture for Natural Resources and Environment.
* * * * * * *
reimbursement for costs of certain analyses, documentation, and studies
Sec. 30. (a) In General.--The Secretary of the Interior shall
reimburse a person who is a lessee, operator, operating rights
owner, or applicant for a lease under this Act for costs
incurred by the person in preparing any project-level analysis,
documentation, or related study required under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with
respect to the lease, through royalty credits attributable to
the lease, unit agreement, or project area for which the
analysis, documentation, or related study is prepared.
(b) Conditions.--The Secretary shall provide reimbursement
under subsection (a) only if--
(1) adequate funding to enable the Secretary to
timely prepare the analysis, documentation, or related
study is not appropriated;
(2) the person paid the costs voluntarily; and
(3) the person maintains records of its costs in
accordance with regulations prescribed by the
Secretary.
* * * * * * *
----------
SECTION 2689 OF TITLE 10, UNITED STATES CODE
Sec. 2689. Development of geothermal energy on military lands
The Secretary of a military department may develop, or
authorize the development of, any geothermal energy resource
within lands under the Secretary's jurisdiction, [including
public lands,] other than public lands, for the use or benefit
of the Department of Defense if that development is in the
public interest, as determined by the Secretary concerned, and
will not deter commercial development and use of other portions
of such resource if offered for leasing.
* * * * * * *
----------
SECTION 1003 OF THE ALASKA NATIONAL INTERESTS LANDS CONSERVATION ACT OF
1980
[prohibition on development
[Sec. 1003. Production of oil and gas from the Arctic
National Wildlife Refuge is prohibited and no leasing or other
development leading to production of oil and gas from the range
shall be undertaken until authorized by an Act of Congress.]
DISSENTING VIEWS
We oppose H.R. 2436 as reported by the Resources Committee
and recommend that our colleagues resist its inclusion in
whatever ``energy'' package the House ultimately considers.
As reported by the committee, the bill represents an
unprecedented assault on America's resources and on American
taxpayers under the guise of contributing to our energy
security. The fact of the matter is that if the Committee had
simply considered legislative initiatives to implement
President Bush's national energy policy, the only item included
in H.R. 2436 would have been provisions to open the Arctic
National Wildlife Refuge to oil and gas development.
Instead, the legislation represents a grab bag of goodies
for Big Oil--from granting an unfettered ability to drill on
federal lands to declaring a $7.4 billion royalty holiday at
the taxpayer's expense.
Obviously, the message sent by the bipartisan trifecta of
amendments to the Interior Appropriations bill recently adopted
by the House--prohibiting energy development in national
monuments, postponing lease sale 181 off the coast of Florida,
and maintaining hardrock mining protections--has been lost on
the supporters of H.R. 2436. Americans, and the majority of
their Representatives in this body, do not believe we must
sacrifice our heritage and our children's future to achieve
greater energy self-sufficiency in this fashion.
Committee Democrats believe that there is a need for a
better national energy policy. During consideration of H.R.
2436, we offered an alternative to the bill. Unlike H.R. 2436,
the Democratic alternative was based on the belief that our
Nation's energy policy must be balanced. In our bid for greater
energy security, we must take into account the social and
environmental costs of energy development as well. That concept
is central to the alternative we offered. Rather than
exploiting environmentally sensitive areas, we proposed
facilitating the delivery of over 35 trillion cubic feet of gas
from developed fields in the North Slope to the lower 48 States
with the benefit of ``Buy American'' and project labor
agreement protections.
Rather than grant a multibillion dollar royalty holiday to
oil and gas companies, we proposed that the American people
receive a fair return for the disposition of their resources by
cracking down on royalty underpayments. Rather than potentially
disrupting the distribution of western water to farmers and
cities by emphasizing hydropower over all other purposes, we
proposed to relieve transmission constraints in the western
power grid.
The Democratic alternative was also about empowerment. It
recognized the contribution Indian Country can make to our
national energy mix, and the pressing need to help the tribes
achieve energy self-sufficiency. It sought to empower U.S.
citizens in the insular areas to have a greater sense of energy
security as well.
And our alternative was about endowment. The endowment to
coastal communities of pristine beaches, viable wildlife
habitat and the economic prosperity which accompanies these
attributes. An endowment to the American people of a fair
return for the disposition of their energy resources by
combating royalty underpayments. The endowment to coalfield
communities of the necessary resources to combat the constant
threat they face from abandoned coal mines. And the endowment
to America, that our most cherished natural resources will
receive attention from the Land and Water Conservation Fund.
None of these values are reflected in H.R. 2436 as reported
by the Resources Committee. We oppose H.R. 2436 because it is
little more than a thinly disguised boon to the oil and gas
industry, with little more than window dressing bestowed on
conservation and alternative energy alternatives. Our specific
concerns relating to each title of the bill follow.
Title I--General Provisions To Protect Energy Supply and Security
Contrary to the will of the House as expressed in the
recent Interior Appropriations amendment prohibiting
development in national monuments, H.R. 2436 would require the
Interior Secretary to conduct a survey of all federal lands,
with the exception of National Parks and wilderness areas for
their coal and geothermal energy potential. Lands subject to
this provision would include National Park System lands other
than National Parks, national wildlife refuges, national
forests, areas of critical environmental concern, national
marine sanctuaries, national conservation areas, national wild
and scenic rivers, national trails and wilderness study areas.
Title II--Oil and Gas Development
subtitle a--offshore oil and gas
Title II, as amended, provides ``royalty relief'' to major
oil and gas companies seeking new leases on the Outer
Continental Shelf in the Gulf of Mexico. In lease sales
occurring over the next two years, the Secretary of the
Interior would be required--regardless of whether there is any
economic justification--to give-away, royalty-free, ``not less
than'' the following:
--17.5 million barrels of oil equivalent for fields
in water depths of 200 to 400 meters;
--52.5 million barrels of oil equivalent for fields
in water depths of 400 to 800 meters;
--9 million barrels of oil equivalent for each lease
in water depths of 800 to 1,600 meters;
--12 million barrels of oil equivalent for each lease
in water depths of more than 1,600 meters.
By waiving federal royalty collections on huge amounts of
publicly--owned oil and gas, title II constitutes a significant
taxpayer subsidy--for the oil and gas industry at a time of
high prices and record profits. Informal estimates from the
Minerals Management Service are that the two years of royalty-
free lease sales required by title II would cost at least $7.4
billion in lost royalty revenues in future years.
The ``royalty relief'' provided in title II is more
generous than that authorized by Congress in the OCS Deep Water
Royalty Relief Act in 1995. The controversial 1995 Act was
justified at the time by its proponents on the basis of
countering low oil and gas prices and the need to encourage
emerging technology in frontier deep water areas of the OCS.
Neither rationale exists in 2001 since prices are high and
technology has evolved so that operating in water deeper than
200 meters is commonplace. There is no evidence that major oil
companies will abandon promising areas in the Gulf of Mexico
absent additional ``royalty relief'' in new lease sales.
Ironically, George W. Bush attacked Vice-President Gore for
supporting ``royalty relief'' for deep water OCS drillers
during the 2000 campaign, criticizing it as ``giving major oil
companies a huge tax break.'' ``Royalty relief'' was not
included in the President's energy legislative initiatives
recently submitted to Congress.
Subtitle B--Improvements to Federal Oil and Gas Lease Management
The provisions of this subtitle largely seek to reduce or
outright eliminate restrictions on onshore oil and gas leasing
activities on federal lands. Four provisions in particular
would achieve this goal. First, the subtitle includes a
legislative directive to the Interior Secretary to eliminate
``unwarranted'' denials of lease issuance and restrictions on
lease operations. Although the term ``unwarranted'' is not
defined, the intent apparently is to eliminate restrictions
commonly placed in leases aimed at protecting critical wildlife
habitat, cultural and historical resources, or environmentally
sensitive areas.
Second, the subtitle requires that BLM and Forest Service
lands open to oil and gas leasing be made available without
lease stipulations that are more stringent than those which may
be contained in applicable State oil and gas law. The obvious
effect of this provision is to prohibit restrictions on lease
operations that may be required under the Endangered Species
Act or other federal environmental statutes.
Third, the subtitle originally stripped the Forest Service
of its authority to ``consent'' to leases proposed to be issued
in units of the National Forest System, paving the way for
lease issuance in roadless areas as well as other areas deemed
sensitive by the Forest Service. While an amendment adopted by
the Committee gives the Secretary of Agriculture the authority
veto a decision by the Department of the Interior to open
Forest Service lands to oil and gas leasing, it prohibits the
Secretary from delegating this decision-making authority to the
Forest Service. As such, it removes land management decisions
form professional land managers in the field and instead turns
them over to political appointees in Washington.
Finally, the subtitle would require taxpayers to subsidize
the costs industry incurs in preparing any documents, such as
environmental analyses, related to leasing. For environmental
compliance documents, the Interior Secretary would provide a
royalty reduction kickback to companies to reimburse them for
their costs.
Subtitle C--Miscellaneous
In a nod to the Houston-based Anadarko corporation, which
reported cash flow from operations during the first quarter of
2001 of $1.1 billion, up from $135 million in the first quarter
of 2000, the bill would allow the Interior Secretary to
indefinitely suspend the term of existing subsalt leases so
that Anadarko would not have to pay to drill a well in order to
keep its subsalt lease. This company is not hurting. In the
words of its chairman and CEO, their ``first quarter earnings
coming within striking distance of earning almost as much as
[they] did for all of 2000, which was $796 million.''
In another gift to Big Oil, and in the face of evidence
that suggests taking royalties in-kind instead of in cash
actually costs the government revenues, the bill would
permanently authorize the Secretary to take, market, process
and transport oil and gas taken in-kind. In other words,
companies could make their royalty payments in the form of the
actual oil and gas rather than in cash. The MMS would then be
saddled with the responsibility of marketing the products in
order to recoup a royalty. For example, MMS recently completed
an RIK pilot program in Wyoming that lost $3 million when
compared to fair market value of the oil and gas.
Finally, the bill would provide automatic royalty holidays
for ``marginal'' wells, in theory a boon to smaller domestic
oil and gas producers. However, without any justification, the
bill sets up new definitions for marginal wells; i.e., in the
tax code a marginal well is one producing 15 barrels of oil
equivalent per day while in this subtitle a marginal well
onshore is one producing 30 barrels of oil equivalent per day
onshore and 300 barrels offshore. Under this new definition,
most onshore wells would qualify for royalty relief. The bill
does not specify the reduced rate, whether any royalty payment
would be required, or the duration of the royalty holiday.
There is also no linkage to the size of the producer. As such,
major international oil companies would benefit as well as the
smaller independent companies.
Title III--Geothermal Energy Development
For no apparent reason, this title would grant a three-
year, blanket exemption from the payment of royalties for
geothermal leases which commence production within five years
after enactment of the bill. Provisions in this title would
also reduce the federal geothermal royalty rate from a range of
10% to 15% to a flat 8% rate.
As with onshore oil and gas leasing, this title also strips
Forest Service managers in the field of the authority to
``consent'' to geothermal leases proposed to be issued in units
of the National Forest System, paving the way for lease
issuance in roadless areas, as well as other areas deemed
sensitive by the Forest Service. Also as is the case for
onshore oil and gas leasing, this title would require taxpayers
to subsidize the costs industry incurs in preparing any
environmental compliance documents related to leasing through a
royalty reduction kickback to companies.
Finally, this title would open all military land to
geothermal leasing. Committee Democrats are unaware of the
reason for this particular provision. As a general matter,
military bases and otherlands under the administrative
jurisdiction of the Defense Department are not subject to federal
mineral and mining laws.
Title IV--Hydropower
Provisions of this title would require the preparation of a
report to Congress on hydropower facilities, detailing their
capabilities and cost estimates.
The title would also authorize the installation of a
powerformer at the Bureau of Reclamation power plant in Folsom,
CA. Costs incurred by the U.S. would be treated as reimbursable
costs and bear interest at long-term borrowing rates.
Provisions in the title would require preparation of a
report on pump replacement at unidentified facilities,
presumably owned by the Bureau of Reclamation or BIA, and would
mandate pump replacement when the benefits were greater than
the costs. There is no requirement that the environmental
effects of pump replacement be considered and there is no
requirement that the size or capacity of the new pumps be
controlled to avoid environmental damage over and above that
already attributable to project pumping.
The title would require a report to Congress on the
potential for increased operational efficiencies of hydropower
facilities under the jurisdiction of the Interior Secretary.
This would include studies of essentially all Bureau of
Reclamation projects with hydroelectric facilities, e.g.,
Hoover Dam, Glen Canyon Dam, Flaming Gorge Dam, all of the
Columbia River Bureau of Reclamation projects, and Shasta and
Folsom Dams in California.
Consideration of revised operating criteria for these
projects is highly controversial because of the potential for
reallocation of project water supplies, conflicts with
endangered species, and severe and irreversible environmental
impacts. The bill makes no provision for considering
environmental issues.
Title V--Arctic National Wildlife Refuge Development
Title V repeals provisions of the Alaska National Interest
Lands Act of 1980 and opens 1.5 million acres of the Arctic
National Wildlife Refuge to oil and gas leasing and
development. The Department of the Interior, which opposed
leasing during the Clinton Administration, has described this
area--the coastal plain--as the ``biological heart'' of the
Arctic Refuge.
The Arctic Refuge is the only area on the North Slope of
Alaska that has been set aside by Congress as off-limits to oil
and gas leasing. Areas currently open to leasing include state-
owned lands at Prudhoe Bay and Federal, public lands in the 23-
million-acre National Petroleum Reserve-Alaska (NPR-A) and the
Outer Continental Shelf. The Arctic Refuge was first protected
as an internationally important wildlife conservation area by
the Eisenhower Administration over four decades ago and
designated a 19-million-acre national wildlife refuge by
Congress in 1980.
Title V authorizes oil and gas leasing in the Arctic Refuge
under broad exemptions from environmental laws. For example,
the title exempts oil and gas leasing in the Arctic Refuge from
the National Wildlife System Administration Act of 1996's
requirements that such activities be determined to be
``compatible'' with the conservation purposes of the refuge.
Title V also dictates that a 1987 Environmental Impact
Statement prepared by the Reagan Administration satisfies
National Environmental Policy Act and waives any further ``no-
action'' analysis, thus assuring that leasing will be insulated
from legal challenges and can move forward no matter what the
potential environmental consequences.
Title V also arbitrarily restricts the ability of the Fish
and Wildlife Service to manage caribou calving and other
sensitive areas by setting a limit of 45,000 acres--only 3
percent of the 1.5 million-acre coastal plain--which may be
administratively protected from development.
Under existing law, not affected by Title V, ninety percent
of any revenues from Arctic Refuge oil and gas leasing would go
to the State of Alaska with only ten percent going to the
Federal government (generally onshore leasing revenues are
split 50/50).
Even if oil were to be discovered in economic quantities,
the lag time to bring Refuge oil to market (including expensive
construction of production and delivery system infrastructure)
would likely be over a decade or more.
Nick J. Rahall II.
George Miller.
Ed Markey.
Peter DeFazio.
Frank Pallone.
Donna Christensen.
Ron Kind.
Jay Inslee.
Grace Napolitano.
Hilda Solis.
Adam Smith.
Dale Kildee.
Betty McCollum.
Tom Udall.
Rush Holt.
James McGovern.
Anibal Acevedo-Vila.
Mark Udall.
ADDITIONAL DISSENTING VIEWS OF HON. NICK J. RAHALL
During the Resources Committee's July 17, 2001, markup of
H.R. 2436, the majority of the Members of the Committee's
Democratic Caucus supported an alternative to the bill. In our
view, the Democratic alternative recognizes the need for a
coherent, comprehensive national energy policy. In contrast to
the Republican approach, the Democratic alternative relies on
the recognition that under existing law the vast majority of
federal lands are currently available for energy development,
and that concern for the environment and social needs are
equally important to development of energy resources. A summary
of our alternative follows.
Title I--Alaska Natural Gas Pipeline Project
Title I would facilitate the construction of the Alaska
Natural Gas Pipeline originally authorized by Congress in 1976.
The provision would enhance the delivery of 35 trillion cubic
feet of natural gas already discovered in existing development
fields to the lower 48 States through the construction of a
pipeline delivery system that follows the Alaska Highway from
the North Slope to Fairbanks and east to supply U.S. markets.
Annual U.S. natural gas consumption is about 23 trillion cubic
feet. The title also includes a ``Buy America'' provision for
portions of the pipeline built on federal lands and requires
the development of a project labor agreement to govern
construction activities.
Title II--Western Area Power Administration Provisions
Title II would provide additional authority to the
Administrator of the Western Area Power Administration to take
such actions as necessary to relieve power transmission
constraints, including construction of new facilities, in
accordance with all applicable provisions of Federal law and in
coordination with State authorities. Any new transmission
capacity would be available to consumers on nondiscriminatory
basis. The Bonneville Power Administrator has similar
authority.
Title III--Energy Alternatives and Efficiency Regarding Federal Lands
Title III would require the Interior Secretary to survey
federal lands, except for federally protected areas, for their
potential to be developed for solar and wind power electrical
energy generating facilities. The provision also requires the
Secretary to inventory the extent of geothermal resources
within the U.S., except for federally protected areas, and
determine whether impediments exist to its efficient
development for electricity generation. A provision in the
title also requires the Secretary to conduct an assessment of
U.S. ocean thermal resources except for OCS areas under
moratoria. In addition, the title requires the Secretary to
conduct a survey of directional oil and gas drilling on federal
lands in order to assess its benefits as a means of mitigating
environmental impacts. Finally, provisions in the title
encourage the Secretaries of Interior, Agriculture and Commerce
to incorporate energy efficient technologies in public and
administrative buildings under their jurisdiction and also to
utilize energy efficient vehicles in natural resources
management.
Title IV--Indian Energy
Title IV would make a number changes in existing law to
empower Indian country to achieve energy self-sufficiency as
well as to contribute to the national energy mix. Provisions in
the title would expand an existing loan and grant program for
energy development and electrical generation activities on
tribal lands; require the Interior Secretary, as trustee, to
timely review agreements and leases entered into between tribes
and energy developers to insure the tribes are accruing
appropriate financial benefits and identify barriers to energy
development on Indian land; require the Western Power
Administration to provide transmission access for wind power
generating facilities developed on tribal lands within its
service area; and remove barriers to energy resource activities
in Indian country due to State taxation issues.
Title V--Insular Areas Energy Security
Title V would hold the Secretary, in consultation with the
Energy Secretary and the heads of insular governments,
responsible for updating the 1982 Territorial Energy
Assessment, which is a comprehensive energy report on
consumption, importation, and potential for indigenous
alternative energy that can be used by insular areas. The
updated assessment would also include recommendations to reduce
the reliance on imported energy and a plan to protect energy
distribution lines from the effects caused by hurricanes and
typhoons. Title V also includes language authorizing the
Interior Secretary to grant financial assistance for projects
to protect electrical power and distribution lines.
Title VI--Coastal Protection
Title VI would extend through June 30, 2012, the moratoria
on OCS oil and gas leasing included in annual Interior
Appropriations bills thereby alleviating the need to enact it
annually. The date is consistent with Presidential
determinations made in 1998. The areas included in the
moratoria are the East Coast, Eastern Gulf, West Coast and the
North Aleutian area in Bristol Bay, Alaska. Also include are
national marine sanctuaries (most of which are included in
areas subject to the annual appropriations moratoria) and the
Northwest Hawaiian Islands Coral Reef Reserve.
Title VII--Royalty Reform
Title VII would insure the American public receives just
compensation from the development of oil and gas resources on
federal lands and waters by trebling existing fines and
penalties for under-reporting, or short-changing, royalty
obligations to the government. The existing fines were last
modified in 1982.
Title VIII--Reclamation of Abandoned Coal Mine Sites
Title VIII would reauthorize the collection of fees paid by
the coal industry that finance efforts under the Abandoned Mine
Reclamation Fund through the year 2011 in order to provide
sufficient revenues to complete the reclamation of all high
priority public health and threatening abandoned coal mine
sites. The provision recognizes that a balanced energy policy
should include measures to offset the potential adverse effects
on land and water resources due to energy development
activities.
Title IX--Land and Water Conservation Fund Enhancement
Title IX would double the Land and Water Conservation
Fund's authorized annual use of receipts generated by Outer
Continental Shelf oil and gas leasing activities from $900
million to $1.8 billion through 2015. The provision also
provides for a 50/50 share of the receipts between federal and
State governments (as provided for in the CARA legislation).
Since 1982, the Department has collected $110.4 billion from
onshore and offshore leases. Over $16.3 billion of those
resources have gone to fund the Land and Water Conservation
Fund. The LWCF authorized provision further represents the need
to mitigate energy development through conservation programs.
Nick J. Rahall II.
ADDITIONAL DISSENTING VIEWS OF HON. RON KIND AND HON. NICK RAHALL
Most of the attention on H.R. 2436 has focused on Title V,
which would open the Alaska National Wildlife Refuge to oil and
gas drilling. However, Title II contains provisions equally
offensive to U.S. taxpayers and the environment. To start,
under this Title, the majority would give more than $7 billion
in deepwater royalty relief to oil and gas companies already
awash in record profits. President Bush did not propose
deepwater royalty giveaways in his National Energy Plan. In
fact, during last year's presidential campaign, he opposed such
royalty relief for the oil and gas industry.
Title II also contains a provision that usurps important
federal environment protections by limiting oil and gas lease
stipulations to only those allowed under state oil and gas law.
Not only would this provision override federal environment
laws, such as the Endangered Species Act--but it would also
make state fish and gaming laws subservient to state oil and
gas commissions. Consequently, this provision would seriously
impede protection of valuable fish and wildlife habitat, such
as nesting and spawning areas valuable to both
environmentalists and hunters alike.
In addition, Title II strips the Forest Service of its
authority to consent to proposed leases in National Forest
lands, thus opening the way to drilling in roadless areas and
other sensitive lands. The Committee's amendment to allow the
Secretary or Deputy Secretary of Agriculture to make such
leasing decisions notwithstanding, it makes little sense to
elevate individual land management decisions on individual oil
and gas leases in National Forests from professional land
managers in the field to Cabinet-level political appointees in
Washington, D.C. In all other respects, this title runs
roughshod over appropriate administrative procedures to
``facilitate'' oil and gas leasing on public lands. Yet, in
this matter, the Majority reveals its overriding antipathy for
the professionals of the National Forest Service who
recommended and implemented the ``roadless policy'' and other
actions designed to protect valuable forest lands.
The list of unacceptable provisions continues. Title II
provides a royalty kickback to oil and gas companies for the
costs of preparing environmental impact analysis documents
associated with leasing.
Title II would also provide automatic royalty holidays for
``marginal wells'' on public lands. However, the bill sets up
new definitions for marginal wells; i.e., in the tax code, a
marginal well is one producing 15 barrels of oil equivalent per
day while in Title II of H.R. 2436, a marginal well onshore is
one producing 30 barrels per day and 300 barrels offshore.
Under this definition, most onshore wells would qualify for
royalty relief. Unfortunately, the bill, as adopted by the
Committee, does not specify the reduced rate, if any royalty
payment would be required, or the duration of time the royalty
holiday would occur. Therefore, estimating the cost of this
provision to the taxpayers is impossible. There is also no
linkage between well production and the size of the producer.
As such, this provision will benefit major international oil
companies as well as the smaller independent companies. The
Ways and Means Committee has also included a provision for
``marginal wells'' in their energy bill (although they define
such wells as those producing 25 barrels of oil equivalent per
day) that will provide $900 million in tax relief. Therefore,
this provision in H.R. 2436 is redundant and unnecessary.
Finally, Title II would establish a ``royalty in kind''
program that will place federal bureaucrats in the oil and gas
marketing business. Industry has claimed that royalty-in-kind
programs will end disputes over the fees they owe for drilling
oil and gas from federal and Indian lands. Under royalty-in-
kind, companies pay in barrels of oil (or units of gas) rather
than in dollars. The Department of Interior has completed
several pilot programs to date in order to test whether
royalty-in-kind programs work at the federal level. However,
all of the pilots have failed, losing significant revenues in
comparison to dollars received from programs that collect cash.
According to the Department of Interior's Inspector
General, the first pilot program to collect gas royalties-in-
kind lost 6.5 percent of fair market value. Further, when
projects to the Gulf of Mexico, the Minerals Management Service
estimated an $82 million loss in royalty revenues for one year.
The second pilot, according to an audit conducted by the State
of California, lost $3 million in Wyoming. In 1998, the General
Accounting Office analyzed the prospect to royalty-in-kind and
determined that there were significant barriers to ensuring
that the federal government receives its fair share:
According to information from studies and the
programs themselves, royalty-in-kind programs seem to
be feasible if certain conditions are present. However,
these conditions do not exist for the federal
government or for most federal leases. (Federal Oil
Valuation: Efforts to Revise Regulations and an
Analysis of Royalties in Kind GAO/RCED-98-242).
Title II of HR 2436 would give the Secretary of Interior
authority to further expand collections of royalties-in-kind
despite their lack of success to date. This provision would
institutionalize a further loss of millions of taxpayer dollars
of major oil and gas companies. There is no evidence that
royalty-in-kind will end litigation or disputes over how much
oil and gas companies should be paying.
Past litigation over oil royalty underpayments resulted in
settlements with the Justice Department for $425 million. And,
new, extensive litigation nationwide suggests that undervaluing
royalty payments is not the only way oil and gas companies
defraud the United States.
A federal jury in Oklahoma decided that Koch Industries
``purposely falsified oil measurements * * * Koch admitted that
it received about $170 million worth of oil it didn't pay
for.'' (Tulsa World, 7/12/00)
In a class action suit of private owners against 100 oil
and gas companies: ``Defendants have systemically deployed a
variety of inaccurate techniques to under measure the value of
gas extracted * * *'' (From Complaint)
From a $3.5 billion case between the State of Alabama and
Exxon-Mobil: ``Falsely reporting gross gas volumes from the
Alabama tracts * * *'' (From Complaint)
Do we really want to have the federal government in the
business of selling oil and gas? Isn't this something best left
to the private sector? Given all the rhetoric we hear from the
other side about the virtues of the free market and private
enterprise, it is ironic and amusing to see the Republicans
proposing a new federal bureaucracy to market oil and gas.
Several weeks ago, a bipartisan House and Senate
Congressional delegation was invited by President Bush to the
White House to discuss energy issues. At that meeting, the
President expressed concern that he was unfairly being
characterized as ``the Big Oil President'' and asked us to work
in a bipartisan fashion to develop a balanced national energy
policy. Title II of H.R. 2436 does not get us there and does
not heed the President's advice. Title II is largely a license
for the oil and gas industry to accelerate drilling activity
while simultaneously scaling back important environmental
protections. We hear good words from the President and our
Republican colleagues regarding renewable energy and
conservation, but where the rubber meets the road, this
legislation's answer to the country's energy crisis is to
provide billion dollar royalty holidays to the oil companies,
open national monuments to drilling, and scale back
environmental protections.
H.R. 2436 is clearly out of touch with what the American
people want and expect of us. Over the short term, we need to
increase domestic production of our traditional energy sources
to meet our needs. However, this must be done in a manner that
is sensitive to the equally important need to protect our
environment. We should not allow the current situation to be
used as an excuse to rollback environmental protection.
Over the long term, our economic and environmental future
depends on our finding 21st century solutions to our 21st
century energy challenges, which means using advanced
technology to develop clean, renewable energy sources and
becoming more energy efficient.
Ron Kind.
Nick J. Rahall II.
DISSENTING VIEWS OF REPRESENTATIVES MARKEY, MILLER, DeFAZIO, PALLONE,
SMITH, INSLEE, MARK UDALL, SOLIS, McCOLLUM, HOLT, AND NAPOLITANO
This bill would repeal Section 1003 of the Alaska National
Interest Lands Conservation Act of 1980, which explicitly
prohibits the leasing or other activity leading to the
production of oil or gas from the coastal plain of the Arctic
National Wildlife Refuge (ANWR). In addition, it would
authorize oil and gas exploration and development in an area of
the Refuge, which has never before been subject to such
development, and would set a precedent not only for ANWR but
for national wildlife refuges and other conservation areas
throughout the United States.
We oppose this provision for two overarching reasons:
1. Energy development is inherently incompatible with
the purposes of the Refuge, and
2. There are preferable alternatives for energy
development that allow us to meet energy needs while
preserving the pristine character of the Refuge.
1. Energy development is inherently incompatible with the purposes of
the Refuge
The Arctic National Wildlife Refuge is one of the most
magnificent wildlife reserves in America. Initially set aside
by President Eisenhower in 1960 and expanded by Congress in
1980, it is a very special place--in the words of Justice
William O. Douglas ``the most wondrous place on God's Earth.''
While the entire Refuge now contains 19.8 million acres,
much of its rich wildlife is concentrated on a ``coastal
plain'' tucked between a range of wild, rugged, glacial peaks--
the Brooks Range--and the polar Beaufort Sea. This plain--1.5
million acres--comprises less than eight percent of the Refuge,
but it is considered ``the biological heart of the Refuge''
because it is critical to the well-being of a unique caribou
herd, as well as polar bears, Arctic foxes, wolverines,
muskoxen, and snow geese. It contains the greatest variety of
plant and animal life of any conservation area in the
circumpolar north.
Industrial development of the coastal plain will have a
major impact on the existing ecosystem. The Porcupine River
caribou herd, 130,000 strong, uses the plain to give birth to
calves and for postcalving activities prior to the onset of
migration.
Proponents of drilling assert that the ``footprint'' of oil
development on the refuge will be small (``just 2000 acres'' or
``the size of Dulles Airport'') because drilling technology has
improved, and they intend to use ice roads in the winter that
melt in the summer. Therefore, they conclude, the threat to the
wildlife will be minimal.
In fact, the footprint of industrial development in the
Refuge is expected to adversely impact a much larger area. To
get a sense of what oil development would mean for the Refuge,
we need only look 70 miles east, at Prudhoe Bay, where oil
development on Alaska state lands has continued for three
decades under some of the strictest environmental controls in
the world.
The actual surface area of the infrasturcture in Prudhoe
Bay, for example, is approximately 12,000 acres, yet it sprawls
across an area that exceeds 800 square miles.
Similarly, oil development equipment only covers 2000 acres
when it is all assembled in one place. But to produce any oil,
it has to be deployed over a wide area. In the case of the
coastal plain of the Arctic Refuge, the infrastructure is
expected to sprawl across 130,000 to 303,000 acres--one fifth
of the entire area--including a huge pipeline, smaller feeder
pipelines, drill pads, haul roads, gathering facilities, valves
and so forth.
But the environmental consequences of drilling go well
beyond the impact of the ``footprint'' itself. Current oil
operations in Alaska's North Slope include a toxic spill of
oil, acid or salt water every day, and twice the nitrogen oxide
pollution of Washington, D.C. every year, causing smog and acid
rain. Moreover, every year oil development on the North Slope
emits an estimated 110,000 tons of methane, a greenhouse gas
that contributes to global warming.
Sixty million cubic yards of gravel have been mined to
build roads on the North Slope. In order to minimize that
particular impact, proponents of drilling in the Refuge propose
to explore using ice roads in the winter that would melt in the
summer. But ice roads require huge amounts of water, which does
not occur in sufficient quantities on the Refuge to support oil
development. The U.S. Fish and Wildlife Service environmental
analysis suggests that water on the Refuge could support
perhaps 6 miles of road where more than 60 miles are needed.
During the winter, the top seven feet of water in local ponds
and lakes freeze, so that the water drawn for roads would have
to come from what remains. If more than 15 percent of the
remaining water is consumed, ``overdrawing'' occurs, changing
the fragile tundra ecosystem and killing the food that
migratory birds and fish feed on.
Moreover, seasonal ice roads are only useful in the winter
for exploration, not year-round to support production. Once the
development begins, haul roads would have to be built involving
extensive gravel mining.
Needless to say, none of this is compatible with the
purposes of the Refuge to ``protect unique wildlife, wilderness
and recreational value.'' Its pre-eminent value is that it
remains one of the closet approximations of undistrubed, wholly
intact, and fully functioning systems of natural ecological
processes remaining on American soil.
Sacrificing this special place for a few months-worth of
oil seems particularly short-sighted, especially in light of
the available alternatives.
2. There are preferable alternatives for energy development that allow
us to meet energy needs while preserving the pristine character
of the Refuge
The same geological structures that have yielded so much
oil and gas in Prudhoe Bay extend both east to the Artic Refuge
and west to the National Petroleum Reserve-Alaska (NPR-A). The
Refuge has been set aside as a protected conservation area and
is off-limits to the oil industry. The NPR-A, a 23 million acre
land that dwarfs the size of the Refuge's coastal plain, has
been specifically set aside for oil and gas development. There
is simply no reason to begin expansion beyond Prudhoe Bay in
the direction that is prohibited and away from the direction
that is permitted.
While the potential for oil in the Refuge still appears
larger than in the Reserve, the Reserve holds much greater
promise for natural gas, so that every exploratory well has a
greater chance of finding recoverable quantities of one fuel or
the other. Oil is being found in the NPR-A. In fact, just last
October, BP announced the discovery of a field in this Reserve
that it said could be as large as Kuparuk, the second largest
field on the North Slope. In May, Phillip's Petroleum announced
three discoveries in NPR-A, which it said might be as large as
the Alpine field, which would make it among the largest onshore
oil discoveries in the U.S. in a decade. The USGS estimates
that there may be as much as 35 trillion cubic feet of natural
gas on the North Slope, and most of it appears to be in either
the Prudhoe Bay area or the NPR-A. There is broad support to
build a natural gas pipeline paralleling the oil pipeline south
to Fairbanks and east through Canada, a project that the
Democrats included in the Rahall substitute and that was
rejected by the majority.
In short, the National Petroleum Reserve can be developed
while leaving the Arctic National Wildlife Refuge alone.
Nevertheless, the drilling proponents have focused on the
coastal plain of the Refuge alone. The USGS has reviewed
seismic data and determined that the most likely scenario for
oil production on the coastal plain would yield 3-5 billion
barrels of ``economically-recoverable'' oil, or the equivalent
of just a few months worth of daily consumption in the United
States.
Drilling proponents cite much large numbers by relying on
the notion of ``technically-recoverable'' oil rather than
``economically-recoverable'' oil. But ``technically-
recoverable'' is a concept based on the notion that money is no
object. If money were no object, we could recover all the
``technically-recoverable'' solar energy that falls on the
surface of the earth every day and never have to build another
powerplant. But money is always an object, and some of
proponents of this bill persist in ignoring the fact that any
oil development would still have to be a profitmaking exercise,
even in the Refuge.
The amount of ``economically-recoverable'' oil considered
likely to be found in the Refuge is small compared to our daily
consumption and cannot significantly reduce our dependence on
foreign supplies of oil. We consume 25 percent of the world's
oil but control only 3 percent of the world's reserves. OPEC
controls 76 percent of these reserves, so we will continue to
look to foreign suppliers as long as we continue to fuel our
transportation system with gasoline. For example, the majority
has set ambitious new goals for independence by drilling not
only in the Refuge, but also on other sensitive lands and on
the outer continental shelf, yet this would only reduce our
foreign oil dependence from 54 percent today to 50 percent 10
years from now--which simply underlines the futility of trying
to drill our way to independence.
But we are not helpless. We are the technological giant of
the world, and we have untapped sources of supply in the form
of increased efficiencies in the energy-consuming appliances we
use every day. The potential is much larger than for new supply
in the Arctic Refuge. For example,fourteen years ago, the
fleetwide average fuel economy of all new passenger vehicles sold in
America was around 26.2 miles per gallon. That was 1987.
Now it is the year 2001, yet our automobile fuel economy
has actually gone backwards! The fleetwide average has slid
down, not up. It has now fallen back to 24.5 mpg--levels last
seen in 1981.
If we increase our overall fuel economy by just the
difference between these two numbers--1.7 mpg--we will save
more oil than is expected to be economically-recoverable from
the Refuge.
In conclusion, lifting the prohibition on oil and gas
development in this magnificent refuge is neither wise nor
necessary. If our current concern about energy supply becomes
an excuse for the industry to lay claim to public treasures
such as the Arctic Refuge, we will have failed twice--we will
remain just as dependent on oil for our energy future, and will
have hastened the demise of a unique ecosystem.
We have many choices to make regarding our energy future,
but we have very few choices when it comes to industrial
pressures on incomparable natural wonders. Let us be clear with
the American people that there are places that are so special
for their environmental, wilderness or recreational value that
we simply will not drill there as long as alternatives exist.
We do not dam the Grand Canyon for hydropower.
We do not strip mine Yellowstone for coal.
And we should not drill for oil and gas in the Arctic
Refuge.
Edward Markey.
Peter DeFazio.
Adam Smith.
Mark Udall.
Betty McCollum.
Grace F. Napolitano.
George Miller.
Frank Pallone.
Jay Inslee.
Hilda Solis.
Rush D. Holt.
A P P E N D I X
----------
House of Representatives,
Committee on Resources,
Washington, DC, July 19, 2001.
Hon. F. James Sensenbrenner,
Chairman, Committee on the Judiciary,
Rayburn HOB, Washington, DC.
Dear Mr. Chairman: On July 17, 2001 the Committee on
Resources ordered favorably reported H.R. 2436, the Energy
Security Act. The bill was referred primarily to the Committee
on Resources, with an additional referral to the Committee on
Energy and Commerce.
Section 508 of H.R. 2436 provides for an expedited judicial
review of any challenges to Title V of the bill or any actions
taken by the Secretary of the Interior under that Title. After
consultation with the Parliamentarian, I acknowledge that the
Committee on the Judiciary has jurisdiction over this provision
under Rule X of the Rules of the House of Representatives.
H.R. 2436 is a critical part of the President's energy
policy initiative and the Leadership plans on scheduling it for
consideration by the full House of Representatives as early as
next week. Therefore, I ask you to not seek a referral of the
bill based on Section 508.
Of course, by allowing this to occur, the Committee on the
Judiciary does not waive its jurisdiction over Section 508 or
any other similar matter. If a conference on H.R. 2436 or a
similar energy legislative package which contains any expedited
judicial review provision becomes necessary, I would support
the Committee on the Judiciary's request to be named to the
conference. Finally, this action should not be seen as
precedent for any Committee on Resources bills which affect the
Committee on the Judiciary's jurisdiction. I would be pleased
to place this letter and your response in the report on the
bill to document this agreement.
Thank you for your consideration of my request and for the
good work of William E. Moschella and John F. Mautz IV of your
staff. I look forward to working with you again in the future.
Sincerely,
James V. Hansen, Chairman.
------
House of Representatives,
Committee on the Judiciary,
Washington, DC, July 19, 2001.
Hon. James V. Hansen,
Chairman, House Committee on Resources, Longworth House Office
Building, House of Representatives, Washington, DC.
Dear Jim: Thank you for working with me regarding H.R.
2436, the ``Energy Security Act,'' which was referred to the
Committee on Resources. As you know, the Committee on Judiciary
has a jurisdictional interest in this legislation, and I
appreciate your acknowledgement of that jurisdictional
interest. While the bill would be sequentially referred to the
Judiciary Committee, I understand the desire to have this
legislation considered expeditiously by the House; therefore, I
do not intend to hold a hearing or markup on this legislation.
In agreeing to waive consideration by our Committee, I
would expect you to agree that this procedural route should not
be construed to prejudice the Committee on the Judiciary's
jurisdictional interest and prerogatives on this or any similar
legislation and will not be considered as precedent for
consideration of matters of jurisdictional interest to my
Committee in the future. The Committee on the Judiciary takes
this action with the understanding that the Committee's
jurisdiction over the provisions within the Committee's
jurisdiction is in no way diminished or altered, and that the
Committee's right to the appointment of conferees during any
conference on the bill is preserved. I would also expect your
support in my request to the speaker for the appointment of
conferees from my Committee with respect to matters within the
jurisdiction of my Committee should a conference with the
Senate be convened on this or similar legislation.
Again, thank you for your cooperation on this important
matter. I would appreciate your including our exchange of
letters in your Committee's report to accompany H.R. 2436.
Sincerely,
F. James Sensenbrenner, Jr., Chairman.
------
House of Representatives,
Committee on Resources,
Washington, DC, July 20, 2001.
Hon. Larry Combest,
Chairman, Committee on Agriculture,
Longworth HOB, Washington, DC.
Dear Mr. Chairman: On July 17, 2001, the Committee on
Resources ordered favorably reported H.R. 2436, the Energy
Security Act. The bill was referred primarily to the Committee
on Resources, with an additional referral to the Committee on
Energy and Commerce.
H.R. 2436 is a critical part of the President's energy
policy initiative. The Leadership plans on scheduling an energy
legislative package for consideration by the full House of
Representatives as early as next week. Therefore, I ask you to
not to seek a sequential referral of the bill.
Of course, by allowing this to occur, the Committee on
Agriculture does not waive its jurisdiction over H.R. 2436 or
any other similar matter. If a conference on H.R. 2436 or a
similar energy legislative package becomes necessary, I would
support the Committee on Agriculture's request to be named to
the conference. Finally, this action should not be seen as
precedent for any Committee on Resources bills which affect the
Committee on Agriculture's jurisdiction. I would be pleased to
place this letter and your response in the report on the bill
to document this agreement.
Thank you for your consideration of my request. I look
forward to working with you again on the Floor.
Sincerely,
James V. Hansen, Chairman.
------
House of Representatives,
Committee on Agriculture,
Washington, DC, July 23, 2001.
Hon. James V. Hansen,
Chairman, Committee on Resources,
Longworth HOB, Washington, DC.
Dear Mr. Chairman: Thank you for forwarding a draft copy of
H.R. 2436, the Energy Security Act, as ordered reported by your
Committee on July 17, 2001.
Under clause 1(a) of rule X, the Committee on Agriculture
has jurisdiction over bills relating to forestry in general and
forest reserves other than those created from the public
domain. In exercising this jurisdiction, the Committee on
Agriculture has worked cooperatively in the past with your
Committee regarding general matters relating to forestry.
Aware of your interest in expediting this legislation, the
Committee on Agriculture will agree to waive jurisdiction and
will not seek a sequential referral in order to speed its
timely consideration in the House. In doing so, the Committee
on Agriculture does not waive any future jurisdiction claim
over this or similar measures, and reserves the right to seek
appropriate representation in the event the measure should go
to conference.
Once again, I am grateful for the cooperative spirit in
which you have worked regarding this matter and others between
our respective committees.
Sincerely,
Larry Combest, Chairman.
------
House of Representatives,
Committee on Resources,
Washington, DC, July 19, 2001.
Hon. W.J. ``Billy'' Tauzin,
Chairman, Committee on Energy and Commerce,
Rayburn HOB, Washington, DC.
Dear Mr. Chairman: On July 17, 2001, the Committee on
Resources ordered favorably reported H.R. 2436, the Energy
Security Act. The bill was referred primarily to the Committee
on Resources, with an additional referral to the Committee on
Resources, with an additional referral to the Committee on
Energy and Commerce.
As you know from your membership on the Resources
Committee, H.R. 2436 is a critical part of the President's
energy policy initiative. The Leadership plans on scheduling an
energy legislative package for consideration by the full House
of Representatives as early as next week. Therefore, I ask you
to not to exercise your full referral of the bill.
Of course, by allowing this to occur, the Committee on
Energy and Commerce does not waive its jurisdiction over H.R.
2436 or any other similar matter. If a conference on H.R. 2436
or a similar energy legislative package becomes necessary, I
would support the Committee on Energy and Commerce's request to
be named to the conference. Finally, this action should not be
seen as precedent for any Committee on Resources bills which
affect the Committee on Energy and Commerce's jurisdiction. I
would be pleased this letter and your response in the report on
the bill to document this agreement.
Thank you for your consideration of my request and your
assistance in getting a very sound bill reported from the
Committee on Resources. I look forward to working with you
again on the Floor.
Sincerely,
James V. Hansen, Chairman.
------
House of Representatives,
Committee on Energy and Commerce,
Washington, DC, July 23, 2001.
Hon. James V. Hansen,
Chairman, Committee on Resources,
Longworth House Office Building, Washington, DC.
Dear Chairman Hansen: Thank you for your letter regarding
to H.R. 2436, the Energy Security Act, which was ordered
reported by the Committee on Resources on July 17, 2001. As you
know, the Committee on Energy and Commerce was named as an
additional Committee of jurisdiction upon the bills
introduction.
I share your strong desire to bring comprehensive energy
legislation to the House Floor in an expeditious manner.
Accordingly, I will not exercise the Committee's right to a
referral. By agreeing to waive its consideration of the bill,
however, the Energy and Commerce Committee does not waive its
jurisdiction over H.R. 2436. In addition, the Energy and
Commerce Committee reserves its authority to seek conferees on
any provisions of the bill that are within its jurisdiction
during any House-Senate conference that may be convened on this
or related legislation. Thank you for your willingness to
support the Committee in this regard.
I request that you include this letter as a part of the
Committee's report in H.R. 2436.
Thank you for your attention to these matters.
Sincerely,
W.J. ``Billy'' Tauzin, Chairman.
------
House of Representatives,
Committee on Resources,
Washington, DC, July 20, 2001.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
Rayburn HOB, Washington, DC.
Dear Mr. Chairman: On July 17, 2001, the Committee on
Resources ordered favorably reported H.R. 2436, the Energy
Security Act. The bill was referred primarily to the Committee
on Resources, with an additional referral to the Committee on
Energy and Commerce.
As you know from your membership on the Resources
Committee, H.R. 2436 is a critical part of the President's
energy policy initiative. The Leadership plans on scheduling an
energy legislative package for consideration by the full House
or Representatives as early as next week. Therefore, I ask you
to not to exercise your full referral of the bill.
Of course, by allowing this to occur, the Committee on
Transportation and Infrastructure does not waive its
jurisdiction over H.R. 2436 or any other similar matter. If a
conference on H.R. 2436 or a similar energy legislative package
becomes necessary, I would support the Committee on
Transportation and Infrastructure's request to be named to the
conference. Finally, this action should not be seen as
precedent for any Committee on Resources bills which affect the
Committee on Transportation and Infrastructure's jurisdiction.
I would be pleased to place this letter and your response in
the report on the bill to document this agreement.
Thank you for your consideration of my request and your
assistance in getting a very sound bill reported from the
Committee on Resources. I look forward to working with you
again on the Floor.
Sincerely,
James V. Hansen, Chairman.
------
House of Representatives,
Committee on Transportation and Infrastructure,
Washington, DC, July 20, 2001.
Hon. James V. Hansen,
Chairman, Committee on Resources,
Longworth HOB, Washington, DC.
Dear Mr. Chairman: I have received the text on H.R. 2436,
the Energy Security Act as reported from the Committee on
Resources. I believe that the Committee on Transportation and
Infrastructure has a jurisdictional interest in a number of
provisions of the bill. These include: (1) Section 104
regarding the review and permitting of interstate natural gas
pipelines; (2) Section 105 regarding the use of energy
efficient technologies in federally owned public buildings; (3)
Section 401 relative to a study and report on hydropower; and
(4) Section 601 relative to the historic designation of
pipelines and related facilities.
I have no objection to inclusion of these matters within
the bill and therefore will not seek a sequential referral of
the bill based on its inclusion.
Knowing your interest in expediting this legislation, I
would be pleased to waive any remaining referral of the bill to
the Committee on Transportation and Infrastructure. I do so
with the understanding that this waiver does not waive any
future jurisdictional claims over this or similar measures. In
addition, in the unlikely event the bill goes to conference
with the Senate, I ask that the Committee on Resources be
represented in that conference.
Once again, I appreciate the extensive and continuing
consultation between our committees on matters of shared
jurisdiction.
Sincerely,
Don Young, Chairman.
------
House of Representatives,
Committee on Resources,
Washington, DC, July 19, 2001.
Hon. Bob Stump,
Chairman, Committee on Armed Services,
Rayburn HOB, Washington, DC.
Dear Mr. Chairman: On July 17, 2001, the Committee on
Resources ordered favorably reported H.R. 2436, the Energy
Security Act. The bill was referred primarily to the Committee
on Resources, with an additional referral to the Committee on
Energy and Commerce.
Section 305 of H.R. 2436 provides the opening of lands
under military jurisdiction for the development of geothermal
resources under the Geothermal Steam Act of 1970. After
consultation with the Parliamentarian, I acknowledge that the
Committee on Armed Services has jurisdiction over this
provision under Rule X of the Rules of the House of
Representatives.
H.R. 2436 is a critical part of the President's energy
policy initiative and the Leadership plans on scheduling it for
consideration by the full House of Representatives as early as
next week. Therefore, I ask you to not seek a referral of the
bill based on Section 305.
Of course, by allowing this to occur, the Committee on
Armed Services does not waive its jurisdiction over Section 305
or any other similar matter. If a conference on H.R. 2436 or a
similar energy legislative package which contains any expedited
judicial review provision becomes necessary, I would support
the Committee on Armed Services' request to be named to the
conference. Finally, this action should not be seen as
precedent for any Committee on Resources bills which affect the
Committee on Armed Services' jurisdiction. I would be pleased
to place this letter and your response in the report on the
bill to document this agreement.
Thank you for your consideration of my request look forward
to working with you again this Congress.
Sincerely,
James V. Hansen, Chairman.
------
House of Representatives,
Committee on Armed Services,
Washington, DC, July 20, 2001.
Hon. J. Dennis Hastert,
Speaker, House of Representatives,
Washington, DC.
Dear Mr. Speaker: In recognition of the desire to expedite
floor consideration of H.R. 2436, the Energy Security Act, the
Committee on Armed Services agrees to waive its right to
consider this legislation. H.R. 2436, as introduced and ordered
reported by the Committee on Resources on July 17, 2001,
contains subject matter that falls within the legislative
jurisdiction of the Committee on Armed Services pursuant to
rule X of the Rules of the House of Representatives.
The Committee on Armed Services takes this action with the
understanding that the Committee's jurisdiction over the
provisions in question is in no way diminished or altered, and
that the Committee's rights to the appointment of conferees
during any conference on the bill remains intact.
Sincerely,
Bob Stump, Chairman.
------
House of Representatives,
Committee on Resources,
Washington, DC, July 20, 2001.
Hon. Sherwood L. Boehlert,
Chairman, Committee on Science,
Rayburn HOB, Washington, DC.
Dear Mr. Chairman: On July 17, 2001, the Committee on
Resources ordered favorably reported H.R. 2436, the Energy
Security Act. The bill was referred primarily to the Committee
on Resources, with an additional referral to the Committee on
Energy and Commerce.
H.R. 2436 is a critical part of the President's energy
policy initiative. The Leadership plans on scheduling an energy
legislative package for consideration by the full House of
Representatives as early as next week. Therefore, I ask you to
not to seek a sequential referral of the bill.
Of course, by allowing this to occur, the Committee on
Science does not waive its jurisdiction over H.R. 2436 or any
other similar matter. If a conference on H.R. 2436 or a similar
energy legislative package becomes necessary, I would support
the Committee on Science's request to be named to the
conference. Finally, this action should not be seen as
precedent for any Committee on Resources bills which affect the
Committee on Science's jurisdiction. I would be pleased to
place this letter and your response in the report on the bill
to document this agreement.
Thank you for your consideration of my request. I look
forward to working with you again on the Floor.
Sincerely,
James V. Hansen, Chairman.