OCR Text |
Show There is an increasing demand for large consolidated coal reserves, particularly where needed to assure a long-term fuel supply for mine-mouth generating plants. We believe it is in the public interest to permit the same techniques for unitization of coal leases as are now allowed for oil and gas. Likewise, restrictions upon the leasing of public land coal deposits to railroad companies should be removed.33 The fears of monopolistic control which led to the enactment of the existing restrictions no longer are applicable. The importance of pipelines and truck transportation and the growing use of mine-mouth generation have materially reduced any competitive advantages railroads may once have had over other coal producers. Furthermore, it appears that other Federal laws, such as the antitrust laws, are far more effective in regulating the competitive position of the railroads than the public land laws. Geothermal Resources Congress should provide a specific policy of leasing geothermal resources in which fair and reasonable consideration is given to the equities of holders of asserted prior rights who expended money and effort. It has been held that no existing mineral disposal system applies to geothermal steam available in public lands.34 One bill that would have authorized leasing of these deposits was vetoed. Some of those who pioneered in an effort to develop these resources under existing law have equitable claims to a priority under new legislation. Although we believe that these equities should be recognized, we would not recognize equities based on actions that took place after introduction of the first bill designed to establish a system for disposal of the geothermal resource. Geothermal resources may well require tailored acreage limitations and flexible provisions relating to terms and conditions. Acreage limitations and guidelines for readjustment of terms and conditions in geothermal resource leases should be established with due regard for the nature of the resource. It has been held by the Department of the Interior that geothermal steam has never been included in mineral reservations contained in public land patents.35 Nevertheless, other minerals reserved to the United States, such as potassium and sodium, are frequently found with geothermal steam. Specific provision should be made to resolve this complicah tion promptly. Reserved mineral interests in lands containing geothermal resources should be disposed 33 30 U.S.C. § 202. 34 See Opinion of the Solicitor, Department of the Interior M-36625 (August 28, 1961). 35 See Hearings on H.R. 733 H.R. 10204, S. 1674, before the House Subcommittee on Mines and Mining of the Committee on Interior and Insular Affairs, 89th Cong. 2nd Sess. 122, 170 (1966). 136 of in the same manner as we recommend at the end of this chapter with regard to reserved minerals generally. However, one who develops geothermal resources on patented lands should have a preference right to a lease of reserved minerals found therein. Alien Ownership There are restrictive provisions in public land laws relating to direct and indirect ownership by aliens of interests in public land minerals. In some instances these restrictions apply to minute fractional interests of no significance.36 In view of the substantial overseas commercial and investment interests of United States corporations and individuals, we believe existing restrictions on alien ownership should be removed except when required by explicit foreign policy considerations of general applicability to transactions of aliens. The Commission perceives no reason to single out public land transactions as warranting unusual restrictions on aliens. Administration Recommendation 54: The Department of the Interior should continue to have sole responsibility for administering mineral activities on all public lands, subject to consultation with the department having management functions for other uses. Although an agency such as the Forest Service, with general administrative responsibility over a particular unit of public land, should be consulted, mineral activities, where allowed, should be uniformly and independently administered. The values involved are large; and substantial policy differences among agencies should not be tolerated. Also, in order to protect interest in these values, minerals expertise should be readily available to administer the mineral laws. Consultation and cooperation among agencies will assure that mineral development is consistent with development of the surface values of the public lands and preclude undesirable impacts on the environment. Reservation of Mineral Interests Recommendation 55: In future disposals of public lands for nonmineral purposes, all mineral interests known to be of value should be reserved with exploration and development discretionary in the Federal Government and a uniform policy adopted relative to all reserved mineral interests. 36 See, for example, as to mineral leases, 30 U.S.C. § 181 (1964). |