Hill Creek Cultural Preservation and Energy Development Act (H.R. 356; 113th Congress)

by Robert William Bishop

113th CONGRESS

1st Session

H. R. 356

IN THE HOUSE OF REPRESENTATIVES

January 23, 2013

Mr. Bishop of Utah (for himself, Mr. Matheson, Mr. Chaffetz, and Mr. Stewart) introduced the following bill; which was referred to the Committee on Natural Resources

A BILL

To clarify authority granted under the Act entitled “An Act to define the exterior boundary of the Uintah and Ouray Indian Reservation in the State of Utah, and for other purposes”.

Section 1. Short title

This Act may be cited as the “Hill Creek Cultural Preservation and Energy Development Act”.

Sec. 2. Clarification of authority

The Act entitled “An Act to define the exterior boundary of the Uintah and Ouray Indian Reservation in the State of Utah, and for other purposes”, approved March 11, 1948 (62 Stat. 72), as amended by theAct entitled “An Act to amend the Act extending the exterior boundary of the Uintah and Ouray Indian Reservation in the State of Utah so as to authorize such State to exchange certain mineral lands for other lands mineral in character” approved August 9, 1955, (69 Stat. 544), is further amended by adding at the end the following:

5.

In order to further clarify authorizations under this Act, the State of Utah is hereby authorized to relinquish to the United States, for the benefit of the Ute Indian Tribe of the Uintah and Ouray Reservation, State school trust or other State-owned subsurface mineral lands located beneath the surface estate delineated in Public Law 440 (approved March 11, 1948) and south of the border between Grand County, Utah, and Uintah County, Utah, and select in lieu of such relinquished lands, on an acre-for-acre basis, any subsurface mineral lands of the United States located beneath the surface estate delineated in Public Law 440 (approved March 11, 1948) and north of the border between Grand County, Utah, and Uintah County, Utah, subject to the following conditions:

(1) Reservation by united states–

The Secretary of the Interior shall reserve an overriding interest in that portion of the mineral estate comprised of minerals subject to leasing under the Mineral Leasing Act (30 U.S.C. 171 et seq.) in any mineral lands conveyed to the State.

(2) Extent of overriding interest–

The overriding interest reserved by the United States under paragraph (1) shall consist of—

(A) 50 percent of any bonus bid or other payment received by the State as consideration for securing any lease or authorization to develop such mineral resources;

(B) 50 percent of any rental or other payments received by the State as consideration for the lease or authorization to develop such mineral resources;

(C) a 6.25 percent overriding royalty on the gross proceeds of oil and gas production under any lease or authorization to develop such oil and gas resources; and

(D) an overriding royalty on the gross proceeds of production of such minerals other than oil and gas, equal to 50 percent of the royalty rate established by the Secretary of the Interior by regulation as of October 1, 2011.

(3) Reservation by state of Utah–

The State of Utah shall reserve, for the benefit of its State school trust, an overriding interest in that portion of the mineral estate comprised of minerals subject to leasing under the Mineral Leasing Act (30 U.S.C. 181 et seq.) in any mineral lands relinquished by the State to the United States.

(4) Extent of overriding interest–

The overriding interest reserved by the State under paragraph (3) shall consist of—

(A) 50 percent of any bonus bid or other payment received by the United States as consideration for securing any lease or authorization to develop such mineral resources on the relinquished lands;

(B) 50 percent of any rental or other payments received by the United States as consideration for the lease or authorization to develop such mineral resources;

(C) a 6.25 percent overriding royalty on the gross proceeds of oil and gas production under any lease or authorization to develop such oil and gas resources; and

(D) an overriding royalty on the gross proceeds of production of such minerals other than oil and gas, equal to 50 percent of the royalty rate established by the Secretary of the Interior by regulation as of October 1, 2011.

(5) No obligation to lease–

Neither the United States nor the State shall be obligated to lease or otherwise develop oil and gas resources in which the other party retains an overriding interest under this section.

(6) Cooperative agreements–

The Secretary of the Interior is authorized to enter into cooperative agreements with the State and the Ute Indian Tribe of the Uintah and Ouray Reservation to facilitate the relinquishment and selection of lands to be conveyed under this section, and the administration of the overriding interests reserved hereunder..