Sec. 604. Methane recovery
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Section 2 of the Mineral Leasing Act ( 30 U.S.C. 201 ) is amended— in subsection (a)(1), by inserting and subject to subsection (e)(6), after deems appropriate, ; and by adding at the end the following: Notwithstanding any other provision of law, any Federal coal lease issued under this section and any modification of an existing coal lease issued under this section shall include terms that establish the following: Coal mine methane released in conjunction with mining activities shall be deemed to be included within the scope of the coal lease if the United States owns both the coal and gas resources.
Except as provided in paragraph (4), any coal lease issued on lands for which the United States owns both the coal and gas resources shall include a requirement that the lessee recover the coal mine methane associated with the leased coal resources to the maximum feasible extent, taking into account the economics of both the mining and methane-capture operations. Before the issuance of a lease for recovery of coal by deep mining operations, the Secretary shall require an analysis to determine the extent to which coal mine methane can be economically captured and either put to productive use or flared.
The cost of the analysis shall be paid by the lessee and carried out by a person chosen by the Secretary with professional qualifications in the capture of coal mine methane and without financial or other economic ties to the lessee. If the Secretary determines that recovery or flaring of coal mine methane under a lease is not economically feasible in accordance with paragraph (2), or cannot be carried out in a manner that assures the protection of mine workers, coal mining under such lease may proceed without requiring recovery or flaring of the coal mine methane.
Any coal lease that involves federally owned coal and nonfederally owned gas resources shall require the coal operator to make a reasonable effort to negotiate an arrangement with the gas owner in advance of conducting any mining operations. If the coal lessee and gas owner are unable to arrange for the joint development of the coal and coal mine methane, and if the joint development of those resources is economically feasible, the Secretary may seek a court order to allow coal mining and methane capture to proceed by the coal lessee, subject to a reasonable division of the proceeds from the sale of the coal and methane resources.
Any assessment of fair market value required by subsection (a)(1) shall include the value of any Federal coal mine methane that is associated with Federal coal resources and subject to capture and use under this section. Any Federal coal mine methane that is captured and used or sold pursuant to a Federal coal lease shall be subject to a royalty of not less than 18.75 percent. .
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