claims fund and in any other special fund created pursuant to this section subsequent to November 4, 1964, available for distribution at the time such payments are made bears to the aggregate unpaid balance of interest of all such awards." (7) Section 302, title III, is amended by inserting "(a)" after the section number and adding at the end thereof the following subsection: "(b) The Secretary of the Treasury shall cover into each of the Bulgarian and Rumanian claims funds, such sums as may be paid by the Government of the respective country pursuant to the terms of any claims settlement agreement between the Government of the United States and the Government of such country." (8) Section 303, title III, is amended by striking out the word "and" at the end of paragraph (2), and by striking out the period at the end of paragraph (3) and inserting in lieu thereof a semicolon and immediately thereafter, the word "and". (9) Section 303, of title III, is further amended by adding at the end thereof the following new paragraph: "(4) pay effective compensation for the nationalization, compulsory liquidation, or other taking of property of nationals of the United States in Bulgaria and Rumania, between August 9, 1955, and the effective date of the claims agreement between the respective country and the United States." (10) Section 304 of title III is amended by inserting "(a)" after the section number and adding at the end thereof the following subsections: "(b) The Commission shall receive and determine, or redetermine as the case may be, in accordance with applicable substantive law, including international law, the validity and amounts of claims owned by persons who were nationals of the United States on August 9, 1955, which arose out of the war in which Italy was engaged from June 10, 1940, to September 15, 1947, and with respect to which provision was not made in the treaty of peace with Italy: Provided, That no awards shall be made to persons who have received compensation in any amount pursuant to subsection (a) of this section or under section 202 of the War Claims Act of 1948, as amended, or to persons whose claims have been denied by the Commission for reasons other than that they were not filed within the time prescribed by section 306. "(c) The Commission shall receive and determine, or redetermine as the case may be, in accordance with applicable substantive law, including international law, the validity and amounts of claims owned by persons who were nationals of the United States on September 3, 1943, and the date of enactment of this subsection, against the Government of Italy which arose out of the war in which Italy was engaged from June 10, 1940, to September 15, 1947, in territory ceded by Italy pursuant to the treaty of peace with Italy: Provided, That no awards shall be made to persons who have received compensation in any amount pursuant to the treaty of peace with Italy or subsection (a) of this section. "(d) Within thirty days after enactment of this subsection, or within thirty days after the date of enactment of legislation making appropriations to the Commission for payment of administrative expenses incurred in carrying out its functions under subsections (b) and (c) of this section, whichever date is later, the Commission shall publish in the Federal Register the time when and the limit of time within which claims may be filed with the Commission, which limit shall not be more than six months after such publication. "(e) The Commission shall certify awards on claims determined pursuant to subsections (b) and (c) of this section to the Sec retary of the Treasury for payment out of remaining balances in the Italian claims fund in accordance with the provisions of section 310 of this title, after payment in full of all awards certified pursuant to subsection (a) of this section. "(f) After payment in full of all awards certified to the Secretary of the Treasury pursuant to subsections (a) and (d) of this section, the Secretary of the Treasury is authorized and directed to transfer the unobligated balance in the Italian claims fund into the war claims fund created by section 13 of the War Claims Act of 1948, as amended." (11) Section 306, title III, is amended by inserting "(a)" after the section number and adding at the end thereof the following subsection: “(b) Within thirty days after enactment of this subsection or the enactment of legislation making appropriations to the Commission for payment of administrative expenses incurred in carrying out its functions under paragraph (4) of section 303 of this title, whichever is later, the Commission shall publish in the Federal Register the time when and the limit of time within which claims may be filed under paragraph (4) of section 303 of this title, which limit shall not be more than six months after such publication." (12) Section 310, title III, is amended by adding at the end of subsection (a) thereof the following paragraph: "(6) Whenever the Commission is authorized to settle claims by the enactment of paragraph (4) of section 303 of this title with respect to Rumania and Bulgaria, no further payments shall be authorized by the Secretary of the Treasury on account of awards certified by the Commission pursuant to paragraphs (1), (2), or (3) of section 303 of the Bulgarian or Rumanian claims funds, as the case may be, until payments on account of awards certified pursuant to paragraph (4) of section 303 with respect to such fund have been authorized in equal proportion to payments previously authorized on existing awards certified pursuant to paragraphs (1), (2), and (3) of section 303." (13) Section 316, title III, is amended by inserting "(a)" after the section number and adding at the end thereof the following subsection: "(b) The Commission shall complete its affairs in connection with the settlement of claims pursuant to paragraph (4) of section 303 and subsections (b) and (c) of section 304 of this title not later than two years following the date of enactment of such paragraph, or following the enactment of legislation making appropriations to the Commission for payment of administrative expenses incurred in carrying out its functions under paragraph (4) of section 303 and subsections (b) and (c) of section 304 of this title, whichever is later." The amendment was agreed to. The bill was ordered to be engrossed for a third reading, was read the third time, and passed. Mr. MANSFIELD. Mr. President, I ask unanimous consent to have printed in the RECORD an excerpt from the report (No. 682), explaining the purposes of the bill. There being no objection, the excerpt was ordered to be printed in the RECORD, as follows: MAIN PURPOSE OF THE BILL The main purpose of S. 1935 is to provide for the determination of claims of American nationals which are covered by the United States-Polish Claims Agreement of July 16, 1960. Pursuant to that agreement, Poland agreed to pay to the United States an amount of $40 million in 20 annual installments of $2 million each. As of this date, five $2 million installments have been paid to the U.S. Treasury. In addition, S. 1935 provides for the disposition of funds received under the terms of en bloc claims settlement agreements concluded with the Governments of Bulgaria (on July 2, 1963), Rumania (on March 30, 1960), and Yugoslavia (on November 5, 1964), and the reopening of the Italian claims program in order to pay claims not previously compensable. The bill also contains several administrative housekeeping provisions which the Foreign Claims Settlement Commission feels are desirable on the basis of past experience. BACKGROUND OF CLAIMS PROGRAMS COVERED Set forth below are statistics and backclaims programs covered by the pending bill. ground information regarding the various The programs are administered by the Foreign Claims Settlement Commission under the authority of the International Claims Settlement Act of 1949, as amended. 1. YUGOSLAVIA CLAIMS PROGRAM Statutory authority: Title I of the International Claims Settlement Act of 1949 (Public Law 81-455, approved March 10, 1950). Type of claims: Nationalization or other taking. Dates of taking or loss: 1939 to 1948. Filing period: June 30 to December 30, 1951. Number of claims: 1,556. Amount asserted: $149,344,249.70. Amount of awards: $18,817,904.89. Program completed: December 31, 1954. Background: Historically, the first postWorld War II lump-sum claims settlement agreement entered into by the United States was that with Yugoslavia which was signed on July 19, 1948. Under its terms, Yugoslavia agreed to pay the United States $17 million as full settlement and discharge of all claims of U.S. nationals "on account of the nationalization and other taking by Yugoslavia of property and of rights and interests in and with respect to property," which occurred between September 1, 1939, and the date of agreement. In return the United States agreed to release approximately $47 million in blocked assets (including $42 million in gold bullion) being held by the Federal Reserve Bank of New York. The agreement also defined "nationals" and provided for the establishment of an agency by the United States to adjudicate claims (International Claims Commission). Yugoslavia was allowed to file briefs as amicus curiae, and the determinations of the adjudicating agency with respect to the validity and the amounts of claims were to be "final and binding." The funds were to be distributed in accordance with methods adopted by the United States, and if any excess remained it was to be returned to Yugoslavia. The Commission completed the processing of claims under this program on December 31, 1954. However, the actual distribution of awards by the Treasury Department was held in abeyance because of litigation until March 31, 1956, when the U.S. Court of Appeals (District of Columbia) held that the Commission's decisions on the validity and amounts of claims were final and conclusive and not subject to judicial review. Another claims agreement with Yugoslavia was signed on November 5, 1964. (See appendix.) The claims covered by the agreement arose out of nationalization and other taking by Yugoslavia of property of American nationals subsequent to July 19, 1948, the date of the first claims agreement with Yugoslavia. Pursuant to the terms of the 1964 agreement, Yugoslavia is to pay the sum of $3,500,000 in five annual installments of $700,000 each, beginning on January 1, 1966. The claims will be adjudicated by the Foreign Claims Settlement Commission, after the Congress appropriates the necessary funds for its administrative expenses. At the time the 1964 agreement was signed there was an exchange of notes (see appendix) in which Yugoslavia indicated it intended to compensate persons who were not U.S. nationals when their property was taken. It understood that these individuals will be required to file their claims with the local government in Yugoslavia where their property was located at the time it was nationalized or otherwise taken. 2. BULGARIAN AND RUMANIAN CLAIMS PROGRAMS Background: Pursuant to the authority contained in Executive Order 8389, issued on April 10, 1940, the United States blocked the assets of the Governments and nationals of Rumania (on October 1, 1940) and Bulgaria (on March 4, 1941). After World War II, in the peace treaties of February 10, 1947, these Governments undertook to restore American-owned property in their respective countires or else provide compensation to the extent of two-thirds of the war damage suffered by such property. These undertakings were not honored; nor were American owners compensated for property which was nationalized or otherwise taken subsequent to the date of the treaties. Under the terms of the peace treaties, it was provided that assets in the United States belonging to Bulgaria and Rumania or their nationals might be seized and liquidated and the proceeds used to satisfy the claims of American citizens against those Governments. Accordingly, title II of the International Claims Settlement Act of 1949 (approved August 9, 1955) was enacted to authorize the vesting of assets in the United States owned by Bulgaria and Rumania and their nationals, other than natural persons. The exclusion of the latter category follows the American principle that the property of private individuals should not be used for the payment of debts arising out of acts of foreign governments. However, the proceeds from the liquidation of the other vested assets were transferred to special funds in the Treasury and used to pay compensation to qualified American claimants against the Governments of Bulgaria and Rumania. Title III of the International Claims Settlement Act of 1949, also approved on August 9, 1955, contains certain administrative and general provisions relating to the Bulgarian and Rumanian claims programs. Additional information regarding these programs, both of which were completed on August 9, 1959, is set forth below. Bulgaria Statutory authority: Title III of the International Claims Settlement Act of 1949 (Public Law 84-285, approved Aug. 9, 1955). Type of claims: Nationalization and war damage. Dates of taking or loss: War damage, 1939-45; nationalization, 1945-55. Filing period: September 30, 1955, to October 1, 1956. Number of claims: 391. Amount asserted: $25,455,927. Amount of awards: Principal, $4,684,187; interest, $1,887,638. Amount of fund: $2,613,325. Amount paid on awards: Approximately 50 percent. Program completed: August 9, 1959. On July 2, 1963, the United States entered into an agreement (see appendix) whereby Bulgaria agreed to pay an additional $400,000 (payable in two equal installments of $200,000 each, which were made on July 1, 1964, and July 1, 1965) as final settlement of total U.S. claims against the Government of Bulgaria. Rumania Statutory authority: Title III of the International Claims Settlement Act of 1949 (Public Law 84-285, approved Aug. 9, 1955). Type of claims: Nationalization and war damage. Dates of taking or loss: War damage, 1939-45; nationalization, 1945-55. Filing period: September 30, 1955, to October 1, 1956. Number of claims: 1,073. Amount asserted: $259,742,036. Amount of awards: Principal, $60,011,348; interest, $24,717,943. Amount of fund: $20,057,346. Amount paid on awards: Approximately 30 percent. Program completed: August 9, 1959. Under the terms of an agreement dated March 30, 1960 (see appendix), Rumania agreed to pay the United States an additional $2.5 million (payable in five installments of $500,000 each beginning July 1, 1960) as final settlement of total claims against Rumania. All of the money due pursuant to the agreement has been received by the U.S. Treasury. 3. ITALIAN CLAIMS PROGRAM Statutory authority: Title III of the International Claims Settlement Act of 1949 (Public Law 84-285, approved Aug. 9, 1955, and Public Law 85-604, approved Aug. 8, 1958). Type of claims: War damage. Date of loss: 1939 to 1947. Filing period: September 30, 1955, to October 1, 1956. Number of claims: 2,246. Amount asserted: $27,412,985. Amount of awards: Principal, $2,730,146; interest, $929,165. Amount of fund: $5 million. Amount paid on awards: 100 percent. Program completed: May 31, 1960. Background: The Italian claims fund consisted of $5 million which was paid to the United States by Italy in accordance with the terms of the Lombardo Agreement of August 14, 1947. This agreement resulted from negotiation for the return of approximately $60 million of Italian assets which had been vested or blocked by the United States during World War II. The purpose of the money in the Italian claims fund was, in general, to compensate claimants for losses relating to property located outside of Italy and attributable to Italian military action (e.g., losses on the high seas, in Greece, Yugoslavia, and other areas in which Italy engaged in military action), and certain personal injury and simiClaims for losses relating to property located lar nonproperty losses which arose in Italy. in Italy itself were provided for in the Italian Peace Treaty of September 15, 1947. The money in the Italian claims fund was sufficient to pay all eligible claimants 100 cents on the dollar, and after the program was completed on May 31, 1960, there remained an unobligated balance of $1,088,623.53. Since the Lombardo Agreement did not contain a reverter clause, this balance was retained by the United States, and, ordinarily, would be deposited in the miscellaneous receipts account of the Treasury. Pursuant to the provisions of S. 1935, however, the Italian claims program will be reopened and extended to cover certain claims not previously compensable, and any balance remaining will be transferred to the war claims fund to reimburse, in some measure, that fund for money used to compensate prisoners of war who were detained by or in Italy during World War II. 4. POLISH CLAIMS PROGRAM Authority: United States-Polish Agreement of 1960 and S. 1935. Type of claims: Nationalization or other taking and certain debt claims. Dates of taking loss: 1945 to 1960. Filing period: August 16, 1960, to March 31, 1962. Number of claims: 10,239. Amount asserted: $1,143,565,517. Number of awards: 3,230 (as of July 31, 1965). Amount of awards: Principal, $57,026,831.39; interest, $29,982,841.15 (as of July 31, 1965). Amount of fund: $40 million (to be paid in 20 annual installments; $10 million received). Amount paid on awards: Approximately $3 million. Program completed: Date proposed by S. 1935 is March 31, 1968. Background: On January 3, 1946, the Government of Poland enacted legislation for the nationalization of basic branches of the national economy. Subsequently, on December 27 of the same year, representatives of the United States and Poland reached an informal preliminary agreement which provided that U.S. nationals should receive compensation from Poland in dollars for investments made in dollars, and in zlotys for other investments. The terms of payment of such compensation were left for a final agreement, but no such final agreement was signed because negotiations were broken off in 1947 and were not resumed until 1957. On July 16, 1960, after almost 3 years of negotiations, an agreement was signed by the United States and Poland (see appendix) whereby Poland agreed to pay $40 million over a 20-year period in full settlement of all claims of U.S. nationals on account of nationalization or other taking of property in Poland. The payment of the amount of $40 million is to be made in 20 yearly installments of $2 million each, beginning on January 10, 1961. The claims settled by the agreement are claims of U.S. citizens whose property, or rights and interest in property, were either (a) nationalized or otherwise taken (confiscated, expropriated, seized, condemned, etc.) by the Government of Poland; or (b) appropriated, or limited and restricted in their use or enjoyment under Polish laws, decrees, or other government measures. In addition, the agreement covers debts owed to American citizens by nationalized or confiscated enterprises, and debts which were a charge upon nationalized, appropriated, or otherwise taken property. Claims based on dollar bonds issued or guaranteed by the Polish Government in the United States during the period 1919 to 1939 are not included in the agreement. The Polish Government has informed the United States that it intends to settle this bonded bondholders or their representatives. indebtedness by direct talks with American The Foreign Claims Settlement Commission began its work in connection with the Polish claims program on September 1, 1960, under the authority of title I of the International Claims Settlement Act of 1949, as amended, which established procedures for the administration of such a program by the Commission. Pursuant to the provisions of S. 1935, as amended by the Committee on Foreign Relations, the Commission is directed to complete its activities relating to the Polish claims program not later than March 31, 1968, which is 6 years from the last day for filing timely claims. RULE OF LAW REGARDING ELIGIBILITY OF In adjudicating claims under the above programs, the Foreign Claims Settlement Commission is directed to apply, with respect to claims under title I, the "provisions of the applicable claims agreement" and the "applicable principles of international law, justice, and equity," and with respect to claims under title III and IV, "applicable substantive law, including international law." In this connection, one of the principles adopted by the Commission deals with the eligibility requirements of a natural person to file a valid claim against another government. The Commission has adhered to the familiar rule of international law that, in order to be eligible to receive an award under the programs over which it has juris diction the claimant must show that his claim was owned by a national or nationals of the United States (not necessarily the same national or nationals) from the time it arose until the date of filing with the Commission. It should be noted that this principle was consistently followed by the Committee on Foreign Relations in reporting legislation establishing the claims funded mentioned above. The only time the committee deviated from this principle was in 1958, when it approved an amendment relating to the Italian claims fund. In that case, however, money remained in the fund after all American claimants had received 100 cents on the dollar for their losses, and certain American claimants who became citizens after their losses occurred were precluded from recovering anything from Italy because of the above principle of international law. In these circumstances, the committee felt it would not be doing violence to the priority of right, which, as a matter of general practice, is maintained for those who were American citizens at the time of loss. COMMITTEE ACTION AND RECOMMENDATION The Subcommittee on Claims Legislation of the Committee on Foreign Relations held a public hearing on S. 1935 on August 5, 1965. The full committee considered the bill in executive session on August 10, and ordered it reported favorably with an amendment. The committee amendment extends from March 31, 1966, to March 31, 1968, the period in which the Foreign Claims Settlement Commission is to complete its affairs in connection with the Polish claims program. Testimony was received indicating that additional time was needed in order to obtain from Polish authorities sufficient documentary evidence to support many of the claims which have been filed with the Foreign Claims Settlement Commission. The committee agrees that each claimant should be given adequate time in which to secure evidence to substantiate his claim, and it is believed that the 2-year extension provided for in the committee amendment will afford that opportunity. The committee also made minor changes in S. 1935 for the purpose of correcting typographical errors. On page 2, line 24, the On page 2, line 24, the word "Government" was substituted for the word "Governor," and on page 6, line 19, the date "August 9, 1958" was changed to "August 9, 1955". As was pointed out previously, the Government of Poland has already made payments amounting to $10 million pursuant to the terms of the claims settlement agreement of July 16, 1960, and both Rumania and Bulgaria have completed payments in the amount of $2,500,000 and $400,000, respectively, under the terms of claims settlement agreements entered into earlier. S. 1935 will permit the Foreign Claims Settlement Commission to proceed with the orderly administration of these claims programs. It is rec ommended, therefore, that the Senate approve it without delay. DISPOSITION OF GEOTHERMAL RESOURCES The Senate proceeded to consider the bill (S. 1674) to authorize the Secretary of the Interior to make disposition of geothermal steam and associated geothermal resources and for other purposes which had been reported from the Committee on Interior and Insular Affairs with amendments on page 3, line 4, after the word "of", to insert "other"; in line 9, after the word "this", to strike out "Act." and insert "Act, nor shall operations under leases issued pursuant to the provisions of this Act unreasonably inprovisions of this Act unreasonably interfere with or endanger operations under any lease, claim, or permit issued pursuant to the provisions of any other Act."; in line 25, after the word "to", to strike out "him." and insert "him, and except that in no case shall the use or production of such byproducts be permitted other than by the holder of preexisting leases, claims, and permits whenever the same or similar byproducts are being produced on the same land under other leases, claims or permits granted previously."; on page 5, line 17, after the word "in", where it appears the first time, to insert "Federal"; in line 18, after the word "exceeding", to strike out "one hundred thousand" and insert "fifty-one thousand two hundred"; on page 8, line 16, after "SEC. 11.", to strike out "Each lease under this Act shall be granted to the first qualified person making application therefor without competitive bidding." and insert "Subject to the provisions of subsections (a) and (b) hereof, if the lands to be leased under this Act are within any known geological structure of a geothermal resources field, they shall be leased to the highest responsible qualified bidder by competitive bidding under regulations to be formulated by the Secretary of the Interior. If the lands to be leased are not within any known geological structure of a geothermal resources field, the qualified person first making application for the lease shall be entitled to a lease of such lands without competitive bidding. Notwithstanding the foregoing, at any time within one hundred and eighty days following the effective date of this Act: "(a) with respect to all lands which were on January 1, 1965, subject to valid leases or permits issued under the Minleases or permits issued under the Mineral Leasing Act of February 25, 1920, as amended (30 U.S.C. 181, et seq.), or under the Mineral Leasing Act for Acquired Lands, as amended (30 U.S.C. 351-358), Lands, as amended (30 U.S.C. 351-358), or to valid mining claims filed on or prior to January 1, 1965, the lessees or permittees or claimants who are qualified to hold geothermal leases shall have the right to convert such leases or permits or claims to geothermal leases covering the same lands; and "(b) with respect to all lands which were on January 1, 1965, the subject of applications for leases or permits under the above Acts, the applicants may convert their applications to applications for geothermal leases having priorities dating from the time of filing of such appliing from the time of filing of such applications under such Acts."; on page 10, line 5, after the word "minerals", to strike out "extracted or produced under the lease" and insert "derived from production under the lease and sold or utilized by the lessee"; in line 16, after the word "than", to strike out "50 cents" and insert "$1"; and, in line 22, after the word "of", to strike out "$1.00" and insert "$2"; so as to make the bill read: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Interior (hereinafter referred to as the Secretary), may issue leases for the development and utilization of geothermal steam and associated geothermal resources (1) in lands administered by him, and (2) in any national forest or other lands administered by the Department of Agriculture through the Forest Service whether withdrawn or acquired, subject to section 4 hereof. SEC. 2. The short title of this Act shall be the Geothermal Steam Act of 1965. SEC. 3. For the purposes of this Act, geothermal steam and associated geothermal resources shall include all fluid products of geothermal processes, embracing steam, naturally heated water and brines, and any mineral or other product derived from any of them, including heat or other energy, but excluding oil, hydrocarbon gas, and helium. SEC. 4. Where the lands sought for use or drawn, or were acquired, in aid of a function development under this Act have been withof a Federal department or agency other than the Department of the Interior, the Secretary may issue leases under this Act only with the consent of, and subject to such terms and conditions as may be prescribed by, such Federal department or agency to insure the adequate utilization of the lands for the purposes for which they are administered, or for which they were acquired. SEC. 5. Leases under this Act may be issued only to citizens of the United States, associations of such citizens, or corporations organized under the laws of the United States or of any State thereof, or to governmental units, including, without limitation, munici palities. SEC. 6. Administration of this Act shall be under the principles of multiple use of public lands and resources, and shall allow coexistence of other leases of the same lands for deposits of other minerals under applicable laws, and the existence of leases issued pursuant to the provisions of this Act shall not preclude other uses of the areas covered other leases or such other uses shall not thereby. However, operations under such unreasonably interfere with or endanger operations under any lease issued pursuant to this Act, nor shall operations under leases issued pursuant to the provisions of this Act unreasonably interfere with or endanger operations under any lease, claim, or permit issued pursuant to the provisions of any other Act. Nor shall this Act be construed as superseding the authority which the head of any Federal department or agency has with respect to the management, protection, and utilization of the Federal lands and resources under his jurisdiction. SEC. 7. Where the production, use, or conversion of geothermal energy through the medium of geothermal steam is also susceptible of producing other valuable products and minerals incidental thereto, substantial beneficial use of production of such byproducts shall be required, except that the Secretary in individual circumstances may modify or waive this requirement in the interests of conversion of natural resources or for other reasons satisfactory to him, and except that in no case shall the use or production of such byproducts be permitted other than by the holder of preexisting leases, claims, and permits whenever the same or the same land under other leases, claims, or similar byproducts are being produced on permits granted previously. SEC. 8. Leases under this Act shall be for a primary term of fifteen years, and so long thereafter as geothermal steam or energy is produced or utilized in commercial quantities. Any lease issued under this section for land on which, or for which under an approved cooperative or unit plan of development or operation, actual drilling operations were commenced prior to the end of its primary term and are being diligently prosecuted at that time shall be extended for five years and so long thereafter as geothermal steam or energy is produced or utilized in commercial quantities. Leases which have extended by reason of production, and have been determined by the Secretary to be incapable of further commercial production or utilization of energy from geothermal steam, may be further extended for a period not to exceed five years from the date of determination by the Secretary that the leasehold has become nonproductive of geothermal energy, but only for so long as one or more valuable byproducts of geothermal production are produced in commercial quantities. If such subsisting valuable byproducts are leasable under the Mineral Leasing Act of February 25, 1920, as amended (30 U.S.C. 181, et seq.), or under the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351-358), and the leasehold is primarily valuable for the production thereof, the lessee shall be entitled to convert his geothermal lease to a mineral lease under such appropriate Act upon application within the period of lease extension by reason of byproduct production. SEC. 9. Leases under this Act shall embrace a reasonably compact area of not less than six hundred and forty acres and not more than two thousand five hundred and sixty acres, except where occasioned by an irregular subdivision or by irregular subdivisions. No person, association, or corporation except as otherwise provided in this Act, shall take, hold, own, or control at one time, whether acquired directly from the Secretary under this Act or otherwise, any direct or indirect interest in Federal geothermal leases in any one State exceeding fifty-one thousand two hundred acres. At any time after fifteen years from the effective date of this Act, the Secretary, after public hearings, may reduce the aforesaid maximum holding by regula tion. SEC. 10. The Secretary shall prescribe such rules and regulations as he may deem appropriate to carry out the provisions of this Act. Such regulations may include, without limitation, provisions for (a) the prevention of waste, (b) development and conservation of geothermal and other natural resources, (c) the protection of the public interest, (d) assignment, segregation, extension of terms, relinquishment of leases, development contracts, unitization, pooling, and drilling agreements, (e) compensatory royalty agreements, suspension of operations or production, and suspension or reduction of rentals or royalties, (f) the filing of surety bonds to assure compliance with the terms of the lease and to protect surface use and resources, (g) use of the surface by lessee of the lands embraced in his lease, and (h) the maintenance by the lessee of an active development program. For the purpose of more properly conserving the natural resources of any geothermal pool, field, or like area, or any part thereof, lessees thereof and their representatives may unite with each other, or jointly or separately with others, in collectively adopting and operating under a cooperative or unit plan of development or operation of such pool, field, or like area, or any part thereof, whenever determined and certified by the Secretary to be necessary or advisable in the public interest. The Secretary is authorized, in his discretion, with the consent of the holders of leases involved, to establish, alter, change, or revoke such leases and to make such regulations with reference to such leases, with like consent on the part of the lessees, in connection with the in stitution and operation of any such cooperative or unit as he may deem necessary or proper to secure reasonable protection of the public interest. The Secretary may provide that geothermal leases shall contain a provision requiring the lessee to operate under such a reasonable cooperative or unit plan, and he may prescribe such a plan under which such lessee shall operate, which shall adequately protect the rights of all parties in interest, including the United States. Any such plan may, in the discretion of the Secretary, provide for vesting in the Secretary or any other person, committee, or agency of the Federal or State Governments designated therein, authority to alter or modify from time to time the rate of prospecting and development and the quantity and rate of production under such plan. All leases operated under any such plan approved or prescribed by the Secretary shall be excepted in determining holdings or control for the purposes of section 9 of this Act. When separate tracts cannot be independently developed and operated in conformity with an established well-spacing or development program, any lease, or a portion thereof, may be pooled with other lands, whether or not owned by the United States, under a communitization or drilling agreement providing for an apportionment of production or royalties among the separate tracts of land comprising the drilling or spacing unit when determined by the Secretary to be in the public interest, and operations or production pursuant to such an agreement shall be deemed to be operations or production as to each lease committed thereto. The Secretary is hereby authorized, on such conditions as he may prescribe, to approve operating, drilling, or development contracts made by one or more lessees of geothermal leases, with one or more persons, associations, or corporations whenever, in his discretion, the conservation of natural products or the public convenience or necessity may require or the interests of the United States may be best subserved thereby. All leases operated under such approved operating, drilling, or development contracts, and interests thereunder, shall be excepted in determining holdings or control under section 9 of this Act. SEC. 11. Subject to the provisions of subsections (a) and (b) hereof, if the lands to be leased under this Act are within any known geological structure of a geothermal resources field, they shall be leased to the highest responsible qualified bidder by competitive bidding under regulations to be formulated by the Secretary of the Interior. If the lands to be leased are not within any known geological structure of a geothermal resources field, the qualified person first making application for the lease shall be entitled to a lease of such lands without competitive bidding. Notwithstanding the foregoing, at any time within one hundred and eighty days following the effective date of this act: (a) with respect to all lands which were on January 1, 1965, subject to valid leases or permits issued under the Mineral Leasing Act of February 25, 1920, as amended (30 U.S.C. 181, et seq.), or under the Mineral Leasing Act for Acquired Lands, as amended (30 U.S.C. 351-358), or to valid mining claims filed on or prior to January 1, 1965, the lessees or permittees or claimants who are qualified to hold geothermal leases shall have the right to convert such leases or permits or claims to geothermal leases covering the same lands; and (b) with respect to all lands which were on January 1, 1965, the subject of applications for leases or permits under the above Acts, the applicants may convert their applications to applications for geothermal leases having priorities dating from the time of filing of such applications under such Acts. The conversion of leases, permits, and mining claims and applications for leases and permits shall be accomplished in accordance with procedures prescribed by the Secretary. SEC. 12. Leases issued under this Act will provide for: (a) a royalty of 10 per centum of the amount or value of steam, or any other form of heat or energy derived from production under the lease and sold or utilized by the lessee; (b) a royalty of not less than 5 per centum of the value of minerals derived from production under the lease and sold or utilized by the lessee; except that as to any mineral enumerated in section 1 of the Mineral Leasing Act of February 25, 1920, as amended for such mineral shall be as provided in that (30 U.S.C. 181), the minimum rate of royalty Act and the maximum rate of royalty for such mineral shall not exceed the maximum royalty payable upon it under any lease executed pursuant to that Act; (c) payment in advance of an annual rental of not less than $1 per acre or fraction thereof for each year of the lease. If there is no well on the leased lands capable of producing geothermal resources in commercia! quantities, the failure to pay rental on or before the anniversary date shall terminate the lease by operation of law; (d) a minimum royalty of $2 per acre in lieu of rental payable at the expiration of each lease year for each producing lease, commencing with the lease year beginning on or after the commencement of production in commercial quantities; (e) for the purpose of determining royalties hereunder the value of any geothermal steam or energy used by the lessee and not sold shall be determined by the Secretary, who shall take into consideration the cost of exploration and production and the economic value of the resource in terms of its ultimate utilization. SEC. 13. The holder of any geothermal lease at any time may make and file in the appropriate land office a written relinquishment of all rights under such lease or of any legal subdivision of the area included within any such lease. Such relinquishment shall be effective as of the date of its filing, subject to the continued obligation of the lessee and his surety in accordance with the applicable lease terms and regulations: (1) to make payment of all accrued rentals and royalties, (2) to place all wells on the lands to be relinquished in condition for suspension or abandonment, and (3) to protect or restore the surface and surface resources; thereupon the lessee shall be released of all obligations thereafter accruing under said lease with respect to the lands relinquished, but no such relinquishment shall release such lessee, or his bond, from any liability for breach of any obligation of the lease, other than an obligation to drill, accrued at the date of the relinquishment. SEC. 14. Subject to the other provisions of this Act, lessees shall be entitled to use so much of the surface, as may be deemed necessary by the Secretary, for the production and conservation of geothermal resources. SEC. 15. The Secretary may waive, suspend, or reduce the rental or minimum royalty for any lease or portion thereof in the interests of conservation and to encourage the greatest ultimate recovery of geothermal resources, if he determines it is necessary to promote development, or finds that the lease cannot be successfully operated under the lease terms. SEC. 16. The Secretary, upon application, may suspend operations and production on a producing lease. On his own motion, the Secretary, in the interest of conservation, may suspend operations on any lease, but in any such case he shall extend the lease term for the period of any suspension. SEC. 17. Upon request of the Secretary, other Federal departments and agencies shall furnish him with any relevant data then in its possession or knowledge concerning or having bearing upon fair and adequate charges to be made for geothermal steam or other form of geothermal energy produced for conversion to electric power or other purposes. Data given to any Federal department or agency as confidential under law shall not be furnished in any fashion which shall identify or tend to identify the business entity whose activities are the subject of such data, or the person or persons who furnished such information. SEC. 18. All moneys received under this Act from public lands under the jurisdiction of the Secretary of the Interior shall be disposed of in the same manner as moneys received from the sale of public lands. Moneys received under this Act from other lands shall be disposed of in the same manner as other receipts from such lands. SEC. 19. Leases may be terminated by the Secretary for any violation of the regulations or lease terms after thirty days' notice, but the lessee shall be entitled to a hearing on the matter if request for the hearing is made to the Secretary within the thirty-day period after notice. SEC. 20. Nothing in this Act shall constitute an express or implied claim or denial on the part of the Federal Government as to the exemption from State water laws. The amendments were agreed to. Mr. BIBLE. Mr. President, geothermal steam, the natural underground deposits of earth-heated energy, is a valuable resource that has been neglected much too long in the United States. Our Nation is far behind many others in harnessing this "instant energy," as I like to call it. The legislation before us, S. 1674, is designed specifically to correct this situation. I consider this goal clearly vital to our Nation's orderly development of natural resources. The development of geothermal steam to generate electricity, to produce minerals and to provide heat has proven to be commercially feasible and extremely useful in several countries, notably New Zealand, Italy, Iceland, and the Soviet Union. Yet, despite an abundance of underground steam deposits in this country, there have been only a few pioneer developments, principally in California. The main problem in the United States has been the fact that most geothermal steam resources are found on Federal lands, and there are no specific provisions in Federal law giving access to them. This bill, which I sponsored, is designed to correct that situation and in so doing to promote orderly and beneficial use of this readymade energy. I should point out that the bill is the product of more than 4 years of work and has benefited from the active concern of the Senate Committee on Interior and Insular Affairs, the Department of the Interior, members of the infant industry interested in this resource, and the many interested Senators. Because it deals with a relatively new and untried area the legislation involves several unique questions. We have borrowed from the practical experiences of mineral, oil, and gas leasing laws where we could, but many questions have been unique in nature and have required original answers. In my opinion, the results embodied in the bill are fair and workable. Under this legislation, Congress sets the basic guidelines for leasing public the basic guidelines for leasing public lands for geothermal steam development. lands for geothermal steam development. At the same time, the Department of the At the same time, the Department of the Interior is given adequate authority for Interior is given adequate authority for intelligent administration of the leases, and private industry is offered incentive and protection in carrying out the development. I believe the result will be a new era in resource development. Certainly there is a great need to develop this resource. Just as certainly, the potential benefits are immense. This energy that has been wasting away for countless centuries can bring low-cost power to many areas of the Nation now virtually isolated from our great hydrovirtually isolated from our great hydroelectric projects. It can supply heat at reasonable cost in areas where regular fuels to produce heat are scarce and expensive. It can yield minerals that are otherwise unaccessible and it can foster a new industry that will contribute substantially to our expanding economy. ate Committee on the Interior and the The bill has the approval of the SenDepartment of the Interior, and it has enthusiastic endorsement from private industry. I urge the Senate to act affirmatively on it now so that congressional action can be completed as early as possible. Mr. KUCHEL. Mr. President, I support, enthusiastically, S. 1674, the much port, enthusiastically, S. 1674, the much needed authorization to the Secretary of the Interior to enter into leases for of the Interior to enter into leases for the development of geothermal steam on the public lands of the United States. The development of geothermal steam is a new, unique, and challenging industry. In the past few years there has been a greatly increased worldwide search for sources of low-cost energy. While geothermal deposits have been utilized to create electrical power for many years in several European countries, most of the exploratory activity in the United States has been concentrated the United States has been concentrated in my great State of California. In fact, the only commercial development has been established in northern California. One of our fine industrial concerns has expended considerable funds in pioneering the harnessing of this steam for sale to be used to create electrical energy. Other interested companies have likewise made substantial investments in attempting to discover and put to use geothermal steam deposits, to date only on private lands. The Department of the Interior and the industry are convinced that the greater part of the geothermal resources of the United States are located in the public domain. At the present, there are no provisions in the law by which developers can apply for and receive leases for the exploration and development of these lands. There is also no way that the Federal Government can utilize fully these natural underground steam-energy deposits. Some developers have used the general mining laws and filed placer mining claims because of the assorted byproducts and valuable minerals that are sometimes found suspended in the steam. Other have filed oil and gas leases under the Mineral Leasing Act, not to develop oil and gas but to explore and de Neither of velop geothermal energy. these methods has led to the orderly disposition of geothermal steam and associated geothermal resources under basic principles of public land management and conservation. It is readily apparent that this confusion must be corrected. I salute my able colleague from Nevada, Senator BIBLE, who, after more than 4 years of study, research, and work, has presented to us a bill which will give the Secretary the proper machinery to develop the substantial potential that underlies our public lands. Under the terms of S. 1674, the Secretary of the Interior will now be able to enter into leases, following specific guidelines guidelines established by established by Congress; standards which will allow the development on our public domain of what some geologists believe may be geothermal deposits which may constitute an inexhaustible form of electrical energy. We will now be able to realize an effective and economic long-run development of this vast and valuable resource. I sincerely urge the Senate to enact this legislation. Mr. President, I ask unanimous consent to have printed at this point in the RECORD an article entitled "Let's Tap Nature's Steam Plants," written by the distinguished senior Senator from Nevada [Mr. BIBLE] and published in the magazine Public Utilities Fortnightly for August 19, 1965. There being no objection, the article was ordered to be printed in the RECORD, as follows: [From Public Utilities Fortnightly, LET'S TAP NATURE'S STEAMPLANTS (By the Honorable ALAN BIBLE, U.S. Senator from Nevada) (NOTE.-Why are we, in this country, wast ing a valuable natural resource by failing to develop commercially the instant energy provided by geothermal steam deposits? Legislation is now being advocated to protect both the public interest and encourage private industry to get on with the job of exploitation of this source of energy.) Mother Nature does a pretty good job of supplying man's industrial needs. The earth abounds in most raw materials for industry and in the fuel energy to put these materials to work for us. Rarely, however, is Mother Nature so obliging as she is with geothermal steam. By providing geothermal steam deposits, she has served up a prepared dish of energy. And she tosses in a side order of valuable minerals to boot. It does not have to be converted, refined, or transported. It is precooked energy, ready to produce. On top of all this, geothermal steam is not very difficult to find. In many areas of our Nation, principally in the West, these natural underground steam deposits signal their lofrom springs. Coincidentally, they are often cations with white plumes of steam bubbling found in areas which have no other readily available sources of energy. If nature wants to be so generous and obliging with geothermal steam, why hasn't man taken advantage of her gift? He has to date in geothermal steam have been exbeen ingenious in other areas but his efforts tremely limited, despite the fact that commercial feasibility has been proven. Actually, several problems have impeded the development of geothermal steam. The process of harnessing this energy is not quite |