101ST CONGRESS 1ST SESSION H. R. 643 To amend section 37 of the Mineral Leasing Act relating to oil shale claims, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 24, 1989 Mr. RAHALL (for himself, Mr. UDALL, Mr. VENTO, Mr. MILLER of California, Mr. YATES, and Mr. CAMPBELL of Colorado) introduced the following bill; which was referred to the Committee on Interior and Insular Affairs A BILL To amend section 37 of the Mineral Leasing Act relating to oil shale claims, and for other purposes. 1 Be it enacted by the Senate and House of Representa 2 tives of the United States of America in Congress assembled, 3 SECTION 1. FINDINGS. 4 5 6 7 8 9 The Congress finds that: (1) Certain oil shale mining claims were located pursuant to the General Mining Act of May 10, 1872, before enactment of the Mineral Leasing Act of Febru ary 25, 1920, which provides for the leasing of that mineral. 2 (2) Section 37 of the Mineral Leasing Act permit ted oil shale claims that were "maintained in compli ance with the laws under which initiated" to be per fected under such laws. (3) The holders of those oil shale claims that have not been patented have been afforded ample opportunity to apply for patents over the last sixty-eight years but have failed to take such action. (4) Both the Mining Act of 1872 and the Mineral Leasing Act were intended to accomplish the development of the mineral resources of the Nation, including oil shale. (5) Almost none of the oil shale claims have been developed for their oil shale in the intervening sixtyeight years. (6) The continued existence of these oil shale claims restricts the lands from the development of other minerals which may exist on the claimed lands. (7) The continued existence of these oil shale claims interferes with the effective management of Federal lands. (8) Issuing patents for these claims at this time would likely result in nonmineral development contrary to the intent of the Mining Act of 1872 and the Mineral Leasing Act. HR 643 IH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 3 (9) The lands embraced in an unpatented claim remain subject to the disposing power of the Congress until all conditions imposed by law for issuance of a patent are fully satisfied. (10) Either the conversion of valid oil shale claims to leases or requiring diligent work toward production on such claims, together with the cancellation of invalid claims, would promote mineral development including for oil shale. (11) It is in the public interest for these claims to be brought to some final resolution so that Federal lands affected may be properly managed for their mineral and other values in accordance with the laws and policies of the United States. 15 SEC. 2. AMENDMENT TO THE MINERAL LEASING ACT. 16 Section 37 of the Mineral Leasing Act (30 U.S.C. 181 17 and following) is amended by inserting "(a)" before the first 18 sentence and by adding the following new subsections at the 19 end thereof: 20 "(b) After January 24, 1989, no patent shall be issued 21 by the United States for any oil shale claim referred to in 22 subsection (a) except for those claims for which (1) a patent 23 application had been filed with the Secretary of the Interior, 24 and (2) all requirements for a patent have been fully complied 25 with by that date. HR 643 IH 4 1 "(c) The Secretary of the Interior shall undertake an 2 expedited program to determine the validity of all unpatented 3 oil shale claims referred to in subsection (a). The Secretary 4 shall make a determination with respect to each such claim 5 within two years after the enactment of this subsection. The 6 expedited program shall include an examination of all unpat7 ented oil shale claims, including those for which a patent ap8 plication has not been filed. If a claim is determined to be 9 invalid, the Secretary shall promptly cancel the claim. 10 "(d)(1) The owner of each unpatented oil shale claim 11 referred to in subsection (a) shall make an election under 12 paragraph (2) or paragraph (3) of this subsection. The elec13 tion shall be made within ninety days after the enactment of 14 this subsection. If an election is not made within such period, 15 the Secretary shall cancel the claim. Not later than thirty 16 days after the enactment of this subsection, the Secretary 17 shall notify the owner of each such claim of the election re18 quired under this subsection. 19 "(2) The holder of a claim required to make an election 20 under this subsection may elect to apply to the Secretary for 21 a lease under section 21. If such an election is made the 22 claimholder shall file an application for lease within ninety 23 days after the enactment of this subsection. Upon receiving 24 such an application the Secretary shall issue a lease to the 25 owner of such claim for the area covered by the claim if the HR 643 IH 5 1 claim is determined to be valid. A lease under this paragraph 2 shall be issued in accordance with the provisions of section 3 21 except as follows: 4 5 6 7 8 9 10 11 "(A) The term of the lease shall be twenty years and for so long thereafter as shale oil is produced an nually in commercial quantities from the lease. "(B) The acreage limitations contained in section 21(a) shall not apply. "(C) The second proviso of section 21(a) shall not apply. "(3) The holder of a claim required to make an election 12 under this subsection may elect to maintain the claim by 13 complying with all provisions of the mining laws of the 14 United States regarding the maintenance of mining claims, 15 with section 314 of Public Law 94-579, and with such addi16 tional requirements as the Secretary shall prescribe, by rule, 17 to assure that an amount is expended annually which (A) 18 represents diligent efforts toward the production of shale oil 19 and (B) includes substantial work on the claim. The Secre20 tary shall promulgate a final rule under this paragraph within 21 ninety days after the enactment of this subsection. The 22 annual expenditure requirement under such rule shall take 23 effect on the first day of the first month of September which 24 occurs more than ninety days after the enactment of this sub25 section. The Secretary shall review the expenditures made HR 643 IH |