Sec. 6. South Thompson Divide Lease exchange
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Except as provided in subsection (b), in exchange for the relinquishment by a leaseholder of all South Thompson Divide Leases of the leaseholder, the Secretary may issue to the leaseholder credits for bid, royalty, or rental payments due under Federal oil and gas leases on Federal land in the State. If a South Thompson Divide Lease has been cancelled by the Secretary before the date of enactment of this Act and the holder of the cancelled lease has been compensated for the cancelled lease, the Secretary may not issue credits for bid, royalty, or rental payments for the cancelled lease under subsection (a).
The amount of the credits issued to the holder of any South Thompson Divide Leases relinquished under subsection
(a)shall— be equal to the sum of— the amount of the bonus bids paid for the applicable South Thompson Divide Leases; the amount of any rental paid for the applicable South Thompson Divide Leases as of the date on which the holder of the applicable South Thompson Divide Leases notifies the Secretary of the decision to relinquish the applicable South Thompson Divide Leases; the amount of any expenses incurred by the holder of the applicable South Thompson Divide Leases in the preparation of drilling permits, sundry notices, or other related submissions in furtherance of the development of the applicable South Thompson Divide Leases as of July 29, 2016, including any expenses related to the preparation of analyses under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq.); and the amount of any expenses incurred by the holder of the applicable South Thompson Divide Leases in the purchasing of rights and the preparation of drilling permits, sundry notices, or other related submissions in furtherance of the development of the Wolf Creek Storage Field development rights; and require the approval of the Secretary. The amount of a credit issued under subsection
(a)shall not include any expenses paid by the holder of a South Thompson Divide Lease for legal fees or related expenses for legal work with respect to a South Thompson Divide Lease. The South Thompson Divide Leases, on relinquishment and without further action by the Secretary, shall— be permanently cancelled; and not be reissued. Except as otherwise provided in this section, the exchange under this section shall be conducted in accordance with— this Act; and other applicable laws (including regulations). The Secretary shall accept credits issued under subsection
(a)in the same manner as cash for the payments described in that subsection. The use of the credits issued under subsection
(a)shall be subject to the laws (including regulations) applicable to the payments described in that subsection, to the extent the laws are consistent with this section. All amounts in the form of credits issued under subsection
(a)accepted by the Secretary shall be considered to be amounts received for the purposes of— section 35 of the Mineral Leasing Act ( 30 U.S.C. 191 ); and section 20 of the Geothermal Steam Act of 1970 ( 30 U.S.C. 1019 ). As a condition precedent to the relinquishment of the South Thompson Divide Leases, a leaseholder shall permanently relinquish, transfer, and otherwise convey to the Secretary, in a form acceptable to the Secretary, all Wolf Creek Storage Field development rights of the leaseholder. Any interest acquired by the Secretary under paragraph
(1)shall be held in perpetuity and not transferred, reissued, or otherwise used for mineral extraction.
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