Sec. 305. Methane leasing in 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 in the State, 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 where methane is escaping into the atmosphere, 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 owner or operator determines 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 consult with the eligible entities described in paragraph
(2)to develop a program to facilitate the sale and delivery of methane from active, inactive, and abandoned coal mines where methane is escaping into the atmosphere to 1 or more of the eligible entities to demonstrate the feasibility, cost-effectiveness, and environmental benefits of producing electrical power from methane that— is subject to subsection (b); but has not been leased under that subsection. An eligible entity referred to in paragraph
(1)is any rural electric utility, energy cooperative, or municipal utility the service area boundaries of which are located within 100 miles of Paonia in the State. The Secretary shall establish pricing for the sale and delivery of methane under paragraph
(1)that is sufficient to reimburse all costs to the Secretary for the implementation and management of the demonstration program under that paragraph. The Secretary may enter into a contract with the State or 1 or more institutions of higher education in the State to provide services to the eligible entities described in paragraph
(2)to facilitate the program under paragraph (1), with all related costs to be included in the pricing established under paragraph (3).