The Senate Energy and Natural Resources Committee passed S.1950, the Powder River Basin Resource Development Act, by a voicevote last week. Wyoming Sens. Craig Thomas and Mike Enzi said itprovides for the fair and expeditious resolution of conflictsbetween oil and gas producers and coal producers with overlappingleases in the Powder River Basin in Wyoming and southern Montana.

“Clearly the best solution would have been consensual agreementsand cooperative production of both resources,” said Thomas. “Thereality is a conflict still exists. If we allow it to continue, itwill result in delays which ultimately leads to fewer jobs andslower economic growth for Wyoming, as well as reduced federal andstate revenues.”

“There is still a company or two out there that would like touse lease conflicts to gain a financial advantage, but for the mostpart we have an agreement that this is the reasonable way toproceed,” said Enzi. The bill has five major components. It wouldrequire a lease holder, either coal or coalbed methane, to give theother at least 180 days notice before mining operations wouldcommence on the common area of the overlapping leases. Once aconflict is imminent, the two parties must attempt to resolve theproblem outside of court.

The bill outlines a step-by-step process to resolve disputes anda calculation method to establish which resource would be morebeneficial to the public in the event that both resources cannot beharvested. The final clause of the bill, provides that a temporaryor permanently displaced leaseholder will receive full fair marketvalue compensation for the amount of resources given up. Thisensures displaced leaseholders get a fair amount of compensation,but not more than they would receive from developing the resource.Rep. Barbara Cubin (R-WY) has introduced a companion bill (H. 4297)the House. It currently is in an Energy and Mineral Resourcessubcommittee but no hearing date has been set.

Alex Steis

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