§8739 Certain Oil Shale Reserves: Transfer of Jurisdiction and Petroleum Exploration, Development, and Production

Summary

The Energy Department must give the Interior Department control of the public lands in Oil Shale Reserve No. 1 and the undeveloped parts of Reserve No. 3 right away. The developed part of Reserve No. 3—about 6,000 acres with 24 natural gas wells, pipelines, and related facilities—must be transferred by November 18, 1998. Even after the transfer, the Energy Department stays responsible for cleaning up and following environmental laws for problems that existed on the lands at the time they were handed over. Once control moves to Interior, the other parts of the old law no longer apply to those lands. Starting November 18, 1997, the Interior Department must lease these lands to private companies to explore for and produce petroleum (but not oil shale). Leases follow the Mineral Leasing Act and respect existing rights. The Bureau of Land Management will manage the lands under public-lands law. Leases may include selling U.S.-owned wells or equipment at fair market value. NEPA review costs come from BLM administrative funds. Money from leases from November 18, 1997 until a joint certification goes to the U.S. Treasury and is not shared with the states. That certification happens when lease money equals the United States’ costs for cleanup and the original installation of wells and equipment. Up to $1,500,000 of those Treasury funds can be used by Interior for extra studies at Reserve No. 3, with a report to Congress. If the preferred cleanup plan costs no more than the remaining Treasury funds, Interior can use them after 60 days; if it costs more, Congress must approve any extra spending.