Mr. MELCHER.  Mr. President, I ask unanimous consent that amendments No.
66 and 67 to S. 7 be printed in the RECORD.  

    S4269 There being no objection, the amendments were ordered to be printed in the RECORD, as
follows:  

    S4269 AMENDMENT No. 66  

    S4269 On page 117, beginning with line 22, strike out all through line 3 on page 118 and insert
in lieu thereof the following:  

    S4269 SURFACE OWNER PROTECTION  

    S4269 SEC. 423A.  (a) The provision and procedures specified in this section shall apply where
coal owned by the United States land the surface rights to which are owned by a surface owner as
defined in this section is to be mined by methods other than underground mining techniques.  In
order to minimize disturbance to surface owners from surface coal mining of Federal coal deposits,
the Secretary shall, in his discretion but, to the maximum extent practicable, refrain from leasing
such coal deposits for development by methods other than underground mining techniques.  

    S4269 (b) Any coal deposits subject to this section shall be offered for leases pursuant to section
2(a) of the Mineral Leasing Act of 1920 (30 U.S.C. 201a), except that no award shall be made by
any method other than competitive bidding.  

    S4269 (c) Prior to placing any deposit subject to this section in a leasing tract, the Secretary shall
give to any surface owner whose land is to be included in the proposed leasing tract actual written
notice of his intention to place such deposits under such land in a leasing tract.  

    S4269 (d) The Secretary shall not enter into any lease of such coal deposits until the surface
owner has given written consent and the Secretary has obtained such consent, to enter and
commence surface mining operations, and the applicant has agreed to pay in addition to the rental
and royalty and other obligations due the United States the money value of the surface owners's
interest as determined according to the provisions of subsection (e).  

    S4269 (e) The value of the surface owner's interests shall be fixed by the Secretary based on
appraisals made by three appraisers.  One such appraiser shall be appointed by the Secretary, one
appointed by the surface owner concerned, and one appointed jointly by the appraisers named by the
Secretary and such surface owner.  In computing the value of the surface owner's interest, the
appraisers shall first fix and determine the fair market value of the surface estate and they shall then
determine and add the value of such of the following losses and costs to the extent that such losses
and costs arise from the surface coal mining operations: 

    S4269 (1) loss of income to the surface owner during the mining and reclamation process;  

    S4269 (2) cost to the surface owner for relocation or dislocation during the mining and
reclamation process;  

    S4269 (3) cost to the surface owner for the loss of livestock, crops, water, or other improvements.  

    S4269 (4) any other damage to the surface reasonably anticipated to be caused by the surface
mining and reclamation operations; and  

    S4269 (5) such additional reasonable amount of compensation as the Secretary may determine is
equitable in light of the length of the tenure of the ownership: Provided, That such additional
reasonable amount of compensation may not exceed the value of the losses and costs as established
pursuant to this subsection and in paragraphs (1) through (4) above, or $100 per acre, whichever is
less.  

    S4269 (f) All bills submitted to the Secretary for any such lease shall, in addition to any rental or
royalty and other obligations, be accompanied by the deposit of an amount equal to the value of the
surface owner's interest computed under subsection (e).  The Secretary shall pay such amount to the
surface owner either upon the execution of such lease or upon the commencement of mining, or shall
require posting of bond to assure installment payments over a period of years acceptable to the
surface owner, at the option of the surface owner.  At the time of initial payment, the surface owner
may request a review of the initial determination of the amount of the surface owner's interest for the
purpose of adjusting such amount to reflect any increase in the Consumer Price Index since the
initial determination.  The lessee shall pay such increased amount to the Secretary to be paid over to
the surface owner.  Upon the release of the performance bonds or deposits under section 419 or at an
earlier time as may be determined by the Secretary, all rights to enter into and use the surface of the
land subject to such lease shall revert to the surface owner.  

    {S4270}  } (g) For the purpose of this section the term "surface owner" means the natural person
or persons (or corporation, the majority stock of which is held by a person or persons who meet the
other requirements of this section) who -  

    S4270 (1) hold legal or equitable title to the land surface;  

    S4270 (2) have their principal place of residence on the land; or personally conduct farming or
ranching operations upon a farm or ranch unit to be affected by surface coal mining operations; or
receive directly a significant portion of their income, if any, from such farming or ranching
operations; and  

    S4270 (3) have met the conditions of paragraphs (1) and (2) for a period of at least three years
prior to the granting of the consent.  In computing the three-year period the Secretary may include
periods during which title was owned by a relative of such person by blood or marriage during
which period such relative would have met the requirements of this subsection.  

    S4270 (h) Where surface lands over coal subject to this section are owned by any person who
meets the requirements of paragraphs (1) and (2) of this subsection (g) but who does not meet the
requirements of paragraph (3) of subsection (g), the Secretary shall not place such coal deposit in a
leasing tract unless such person has owned such surface lands for a period of three years.  After the
expiration of such three-year period such coal deposit may be leased by the Secretary: Provided,
That if such person qualifies as a surface owner as defined by subsection (g) his consent has been
obtained pursuant to the procedures set forth in this section.  

    S4270 (i) Nothing in this section shall be construed as increasing or diminishing any property
rights held by the United States or by any other landowner.  

    S4270 (j) The determination of the value of the surface owner's interest fixed pursuant to
subsection (e) or any adjustment to that determination made pursuant to subsection (f) shall be
subject to judicial review only in the United States district court for the locality in which the leasing
tract is located.  

    S4270 (k) At the end of each two-year period after the date of enactment of this Act, the Secretary
shall submit to the Congress a report on the implementation of the Federal coal leasing policy
established by this section. The report shall include a list of the surface owners who have (1) given
their consent, (2) received payments pursuant to this section, (3) refused to give consent, and (4) the
acreage of land involved in each category.  The report shall also indicate the Secretary's views on the
impact of the leasing policy on the availability of Federal coal to meet national energy needs and on
receipt of fair market value for Federal coal.  

    S4270 (1) This section shall not apply to Indian lands.  

    S4270 (m) Any person who gives, offers, or promless anything of value to any surface owner or
offers or promises any surface owner to give anything of value to any other person or entity in order
to induce such surface owner to give the Secretary his written consent pursuant to this section, and
any surface owner who accepts, receives, or offers or agrees to receive anything of value for himself
or any other person or entity, in return for giving his written consent pursuant to this section, shall be
subject to a civil penalty of one and a half times the monetary equivalent of the thing of value.  Such
penalty shall be assessed by the Secretary and collected in accordance with the procedures set out in
subsections 418(b), 418(c), 418(d), and 418(e) of this Act.  

    S4270 (n) Any Federal coal lease issued subject to the provisions of this section shall be
automatically terminated if the lessee, before or after issuance of the lease, gives, offers or promises
anything of value to the surface owner or offers or promises any surface owner to give anything of
value to any other person or entity in order to (1) induce such surface owner to give the Secretary his
written consent pursuant to this section, or (2) compensate such surface owner for giving such
consent.  All bonuses, royalties, rents, and other payments made by the lessee shall be retained by the
United States.  

    S4270 AMENDMENT NO. 67  

    S4270 On page 59, beginning with line 11, strike out all through line 22 and insert in lieu thereof
the following: 

    S4270 "(5) the proposed surface coal mining operations, if located west of the one hundredth
meridian west longitude, would -  

    S4270 "(A) not interrupt, discontinue, or prevent farming on alluvial valley floors that are
irrigated or naturally subirrigated, but, excluding undeveloped rangelands which are not significant
to farming on said alluvial valley floors and those lands that the regulatory authority finds that if the
farming that will be interrupted, discontinued, or prevented is of such small acreage as to be of
negligible impact on the farm's agricultural production, or,  

    S4270 "(B) not adversely affect the quantity or quality of water in surface or underground water
systems that supply these valley floors in (A) of subsection (b)(5):  

    S4270 Provided, That this paragraph (5) shall not affect those surface coal mining operations
which in the year preceding the enactment of this Act (1) produced coal in commercial quantities,
and (2) were located within or adjacent to alluvial valley floors or had obtained specific permit
approval by the State regulatory authority to conduct surface coal mining operations within said
alluvial valley floors.".