Sec. 7. Methane leasing in the Lower North Fork Valley
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Not later than 1 year after the date of enactment of this Act, the Secretary shall complete, or shall collaborate with agencies of the State or with institutions of higher education in the State to complete, an inventory of all significant emissions of methane in the North Fork Valley, Colorado, including methane emissions from active, inactive, and abandoned coal mines. Not later than 1 year after the date of completion of the inventory required under subsection (a), the Secretary shall carry out, to the extent permissible under applicable law, a program to offer for lease Federal methane from active, inactive, and abandoned coal mines, subject to valid existing rights.
The program carried out under paragraph
(1)shall— only include methane that can be collected and transported in a manner that does not— endanger the safety of coal mine workers; or unreasonably interfere with ongoing operations at coal mines; and provide for the owners or operators of mines with leases that overlap potential methane leases under the program carried out under paragraph
(1)to elect to remove the areas from potential methane leasing under the program if the owners or operators determine that the conditions described in subparagraph
(A)are not met. Not later than 2 years after the date of completion of the inventory required under subsection (a), the Secretary shall enter into discussions with the eligible entities described in paragraph
(2)to develop a program to facilitate the sale and delivery of methane that is subject to subsection (b), but which has not been leased under that subsection, to one or more of the eligible entities to demonstrate the feasibility, cost-effectiveness, and environmental benefits of producing electrical power from methane from coal mines. An eligible entity referred to in paragraph
(1)is a rural electric utility, energy cooperative, or municipal utility with service area boundaries within 100 miles of Paonia, Colorado. In facilitating the delivery of methane under paragraph (1), the Secretary shall establish pricing for the sale and delivery of methane that is sufficient to reimburse all costs to the Secretary for the implementation and management of the demonstration program developed under that paragraph. The Secretary may contract with the State or one or more institutions of higher education in the State to provide services to the eligible entities described in paragraph
(2)to facilitate the program developed under paragraph (1), with all related costs to be included in the pricing established under paragraph (3).