Thompson Divide lease credits

(a) In general In exchange for the relinquishment by a leaseholder of all Thompson Divide leases of the leaseholder, the Secretary may issue to the leaseholder credits for any bid, royalty, or rental payment due under any Federal oil or gas lease on Federal land in the State, in accordance with subsection (b). (b) Amount of credits (1) In general Subject to paragraph (2), the amount of the credits issued to a leaseholder of a Thompson Divide lease relinquished under subsection (a) shall— (A) be equal to the sum of— (i) the amount of the bonus bids paid for the applicable Thompson Divide leases; (ii) the amount of any rental paid for the applicable Thompson Divide leases as of the date on which the leaseholder submits to the Secretary a notice of the decision to relinquish the applicable Thompson Divide leases; and (iii) the amount of any reasonable expenses incurred by the leaseholder of the applicable Thompson Divide leases in the preparation of any drilling permit, sundry notice, or other related submission in support of the development of the applicable Thompson Divide leases as of January 28, 2019, including any expenses relating to the preparation of any analysis under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and (B) require the approval of the Secretary. (2) Exclusion The amount of a credit issued under subsection (a) shall not include any expenses paid by the leaseholder of a Thompson Divide lease for— (A) legal fees or related expenses for legal work with respect to a Thompson Divide lease; or (B) any expenses incurred before the issuance of a Thompson Divide lease. (c) Cancellation Effective on relinquishment under this section, and without any additional action by the Secretary, a Thompson Divide lease— (1) shall be permanently cancelled; and (2) shall not be reissued. (d) Conditions (1) Applicable law Except as otherwise provided in this section, each exchange under this section shall be conducted in accordance with— (A) this title; and (B) other applicable laws (including regulations). (2) Acceptance of credits The Secretary shall accept credits issued under subsection (a) in the same manner as cash for the payments described in that subsection. (3) Applicability The use of a credit issued under subsection (a) shall be subject to the laws (including regulations) applicable to the payments described in that subsection, to the extent that the laws are consistent with this section. (4) Treatment of credits 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— (A) section 35 of the Mineral Leasing Act (30 U.S.C. 191); and (B) section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019). (e) Wolf creek storage field development rights (1) Conveyance to secretary As a condition precedent to the relinquishment of a Thompson Divide lease under this section, any leaseholder with a Wolf Creek Storage Field development right 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. (2) Credits (A) In general In consideration for the transfer of development rights under paragraph (1), the Secretary may issue to a leaseholder described in that paragraph credits for any reasonable expenses incurred by the leaseholder in acquiring the Wolf Creek Storage Field development right or in the preparation of any drilling permit, sundry notice, or other related submission in support of the development right as of January 28, 2019, including any reasonable expenses relating to the preparation of any analysis under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). (B) Approval Any credits for a transfer of the development rights under paragraph (1), shall be subject to— (i) the exclusion described in subsection (b)(2); (ii) the conditions described in subsection (d); and (iii) the approval of the Secretary. (3) Limitation of transfer Development rights acquired by the Secretary under paragraph (1)— (A) shall be held for as long as the parent leases in the Wolf Creek Storage Field remain in effect; and (B) shall not be— (i) transferred; (ii) reissued; or (iii) otherwise used for mineral extraction.