To direct the Secretary of the Interior to evaluate opportunities to enhance domestic oil and gas production through the exchange of nonproducing Federal oil and gas leases located in the Lewis and Clark National Forest, in the Flathead National Forest, and on Bureau of Land Management land in the State of Montana, and for other purposes.

May 1, 2003

Mr. BAUCUS introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources

To direct the Secretary of the Interior to evaluate opportunities to enhance domestic oil and gas production through the exchange of nonproducing Federal oil and gas leases located in the Lewis and Clark National Forest, in the Flathead National Forest, and on Bureau of Land Management land in the State of Montana, and for other purposes.

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

SECTION 1. DEFINITIONS.

In this Act:

(1) BADGER-TWO MEDICINE AREA- The term `Badger-Two Medicine Area' means the Forest Service land located in--

(A) T. 31 N., R. 12-13 W.;

(B) T. 30 N., R. 11-13 W.;

(C) T. 29 N., R. 10-16 W.; and

(D) T. 28 N., R. 10-14 W.

(2) BLACKLEAF AREA- The term `Blackleaf Area' means the Federal land owned by the Forest Service and Bureau of Land Management that is located in--

(A) T. 27 N., R. 9 W.;

(B) T. 26 N., R. 9-10 W.;

(C) T. 25 N., R. 8-10 W.; and

(D) T. 24 N., R. 8-9 W.

(3) ELIGIBLE LESSEE- The term `eligible lessee' means a lessee under a nonproducing lease.

(4) NONPRODUCING LEASE- The term `nonproducing lease' means a Federal oil or gas lease that is--

(A) in existence and in good standing on the date of enactment of this Act; and

(B) located in the Badger-Two Medicine Area or the Blackleaf Area.

(5) PLANNING AREA- The term `Planning Area' means each of the Western and Central Planning Areas of the Gulf of Mexico on the outer Continental Shelf.

(6) SECRETARY- The term `Secretary' means the Secretary of the Interior.

(7) STATE- The term `State' means the State of Montana.

SEC. 2. EVALUATION.

(a) IN GENERAL- The Secretary, in consultation with the Governor of the State, the eligible lessees, and any other interested persons, shall evaluate opportunities to enhance domestic oil and gas production through the exchange of the nonproducing leases.

(b) REQUIREMENTS- In carrying out the evaluation under subsection (a), the Secretary shall--

(1) consider opportunities to enhance domestic production of oil and gas through--

(A) the exchange of the nonproducing leases for oil and gas lease tracts of comparable value in the State or in the Planning Areas; and

(B) the issuance of bidding, royalty, or rental credits for Federal onshore oil and gas leases in the State or in the Planning Areas in exchange for the cancellation of the nonproducing leases;

(2) consider any other appropriate means to exchange, or provide compensation for the cancellation of, nonproducing leases, subject to the consent of the eligible lessees;

(3) consider the views of any interested persons, including the State;

(4) determine the level of interest of the eligible lessees in exchanging the nonproducing leases; and

(5) provide recommendations on--

(A) whether to pursue an exchange of the nonproducing leases; and

(B) any changes in laws (including regulations) that are necessary for the Secretary to carry out the exchange.

(c) VALUATION OF NONPRODUCING LEASES- For the purpose of the evaluation under subsection (a), the value of a nonproducing lease shall be an amount equal to the difference between--

(1) the sum of--

(A) the amount paid by the eligible lessee for the nonproducing lease;

(B) any direct expenditures made by the eligible lessee before the date of enactment of this Act associated with the exploration and development of the nonproducing lease; and

(C) interest on any amounts under subparagraphs (A) and (B) during the period beginning on the date on which the amount was paid and ending on the date on which credits are issued under subsection (b)(1)(B); and

(2) the sum of the revenues from the nonproducing lease.

(d) SUSPENSION OF LEASES IN THE BADGER-TWO MEDICINE AREA- To facilitate the evaluation under subsection (a) and review of the report under subsection (e), the terms of nonproducing leases in the Badger-Two Medicine Area shall be suspended for a 3-year period beginning on the date of enactment of this Act.

(e) REPORT TO CONGRESS- Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and to the Committee on Resources of the House of Representatives a report on the evaluation carried out under subsection (a).

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as are necessary to carry out this Act.

END