110 STAT. 636 PUBLIC LAW 104-106—FEB. 10, 1996 States regarding production and proceeds of sale from Naval Petroleum Reserve Numbered 1 are— (1) settled by agreement with the United States under subsection (c); or (2) finally resolved in favor of the State by a court of competent jurisdiction, if a settlement agreement is not reached. (b) DISPOSITION OF FUNDS. — In such amounts as may be provided in appropriation Acts, amounts in the contingent fund shall be available for paying a claim described in subsection (a). After final disposition of the claims, any unobligated balance in the contingent fund shall be credited to the general fund of the Treasury. If no payment is made from the contingent fund within 10 years after the effective date, amounts in the contingent fund shall be credited to the general fund of the Treasury. (c) SETTLEMENT OFFER. —Not later than 30 days after the date of the sale of Naval Petroleum Reserve Numbered 1 under section 3412, the Secretary shall offer to settle all claims of the State of California against the United States with respect to lands in the reserve located in sections 16 and 36 of township 30 south, range 23 east, Mount Diablo Principal Meridian, California, and production or proceeds of sale from the reserve, in order to provide proper compensation for the State's claims. The Secretary shall base the amount of the offered settlement payment from the contingent fund on the fair value for the State's claims, including the mineral estate, not to exceed the amount reserved in the contingent fund. (d) RELEASE OF CLAIMS. —Acceptance of the settlement offer made under subsection (c) shall be subject to the condition that all claims against the United States by the State of California for the Teachers' Retirement Fund of the State be released with respect to lands in Naval Petroleum Reserve Numbered 1, including sections 16 and 36 of township 30 south, range 23 east. Mount Diablo Principal Meridian, California, or production or proceeds of sale from the reserve. SEC. 3416. STUDY OF FUTURE OF OTHER NAVAL PETROLEUM RESERVES. (a) STUDY REQUIRED.— The Secretary of Energy shall conduct a study to determine which of the following options, or combinations of options, regarding the naval petroleum reserves (other than Naval Petroleum Reserve Numbered 1) would maximize the value of the reserves to the United States: (1) Retention and operation of the naval petroleum reserves by the Secretary under chapter 641 of title 10, United States Code. (2) Transfer of all or a part of the naval petroleum reserves to the jurisdiction of another Federal agency for administration under chapter 641 of title 10, United States Code. (3) Transfer of all or a part of the naval petroleum reserves to the Department of the Interior for leasing in accordance with the Mineral Leasing Act (30 U.S.C. 181 et seq.) and surface management in accordance with the Federal Land Policy and Management Act (43 U.S.C. 1701 et seq.). (4) Sale of the interest of the United States in the naval petroleum reserves. (b) CONDUCT OF STUDY.— The Secretary shall retain an independent petroleum consultant to conduct the study.
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