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105th Congress Report
SENATE
2d Session 105-248
_______________________________________________________________________
METHANE HYDRATE RESEARCH AND DEVELOPMENT ACT OF 1997
_______
July 13, 1998.--Ordered to be printed
_______________________________________________________________________
Mr. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1418]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1418) to promote the research,
identification, assessment, exploration, and development of
methane hydrate resources, and for other purposes, having
considered the same, reports favorable thereon with amendments
and recommends that the bill, as amended, do pass.
The amendments are as follows:
1. On page 2, after line 25, add the following:
(8) Director.--The term ``Director'' means the
Director of the National Science Foundation.
2. On page 3, strike lines 4 through 12 and insert the
following:
(1) Commencement of program.--Not later than 180 days
after the date of enactment of this Act, the Secretary,
in consultation with the Secretary of Defense, the
Secretary of the Interior, and the Director, shall
commence a program of methane hydrate research and
development.
(2) Designations.--The Secretary, the Secretary of
Defense, the Secretary of the Interior, and the
Director shall designate individuals to implement this
Act.
3. On page 6, after line 2, insert the following new
section 4 and renumber the subsequent section accordingly:
SEC. 4. AMENDMENT TO THE MINING AND MINERALS POLICY ACT OF 1970.
Section 201 of the Mining and Minerals Policy Act of 1970
(30 U.S.C. 1901) is amended--
(1) by redesignating paragraphs (6) and (7) as
paragraphs (7) and (8), respectively;
(2) by inserting after paragraph (5) the following:
``(6) the term `methane hydrate' means a methane
clathrate that--
``(A) is in the form of a methane-water ice-
like crystalline material; and
``(B) is stable and occurs naturally in deep-
ocean and permafrost areas.''; and
(3) in paragraph (7) (as redesignated by paragraph
(1)--
(A) in subparagraph (F), by striking ``and'';
(B) by redesignating subparagraph (G) as
subparagraph (H); and
(C) by inserting after subparagraph (F) the
following:
``(G) methane hydrate; and''.
4. On page 5, line 3, insert ``under'' after the world
``program''.
Purpose of the Measure
The purpose of S. 1418, as ordered reported, is to direct
the Secretary of Energy, in consultation with the Secretaries
of Defense and the Interior, and the Director of the National
Science Foundation, to commence a program of methane hydrate
research and development.
Background and Need
Methane hydrates are molecules of natural gas trapped
inside the crystalline cages formed by frozen water molecules.
They exist where low temperatures and high pressures squeeze
water and methane into a solid form. Methane hydrates are found
in many areas throughout the world. Preliminary studies by the
U.S. Geological Survey indicate the presence of enormous
quantities of methane hydrates along the eastern seaboard of
the United States, under the permafrost and off the coast of
Alaska, and in the Gulf of Mexico. It is estimated that methane
hydrates located in the United States contain about 300,000
trillion cubic feet of natural gas. By comparison, the U.S.
annually consumes about 22 trillion cubic feet of natural gas.
Given the great potential for energy and scientific
benefits from methane hydrate research, S. 1418 authorizes the
establishment of a methane hydrate research and development
program within the Department of Energy, to be carried out in
consultation with the Departments of Defense and the Interior,
and the Direct of the National Science Foundation.
Legislative History
S. 1418 was introduced by Senators Akaka, Craig and
Landrieu on November 7, 1997. Senator Graham was added as a
cosponsor on November 13, 1997. Senator Lott was added as a
cosponsor on April 21, 1998. The Subcommittee on Energy
Research, Development, Production and Regulation held a hearing
on this bill on May 21, 1998.
On June 24, 1998, the Committee on Energy and Natural
Resources ordered S. 1418, as amended, favorably reported.
Committee Recommendations and Tabulation of Votes
The Committee on Energy and Natural Resources, in open
business session on June 24, 1998, by a unanimous vote of a
quorum present, recommends that the Senate pass S. 1418, if
amended as described herein.
The roll call vote on reporting the measure was 20 yeas, 0
nays, as follows:
YEAS NAYS
Mr. Murkowski
Mr. Domenici\1\
Mr. Nickles\1\
Mr. Craig
Mr. Campbell
Mr. Thomas
Mr. Kyl\1\
Mr. Grams
Mr. Smith
Mr. Gorton
Mr. Burns
Mr. Bumpers\1\
Mr. Ford
Mr. Bingaman\1\
Mr. Akaka\1\
Mr. Dorgan
Mr. Graham\1\
Mr. Wyden\1\
Mr. Johnson
Ms. Landrieu
\1\ Indicates voted by proxy.
Committee Amendments
During the consideration of S. 1418, the Committee adopted
three amendments. The first amendment defines ``Director'' to
mean the Director of the National Science Foundation. The
second amendment adds the National Science Foundation to the
agencies which will design and implement the methane hydrate
research and development program established by S. 1418. The
third amendment expands the definition of ``marine mineral
resource'' in the Mining and Mineral Policy Act of 1970 (as
added by the Marine Mineral Resources Research Act of 1996) to
include methane hydrates.
Section-by-Section Analysis
Section 1 gives the short title of S. 1418.
Section 2 provides definitions of terms used in S. 1418.
Section 3 directs the establishment of the methane hydrate
research and development program. Paragraph (a) states that the
Secretary of Energy shall commence a methane hydrate research
and development program no later than 180 days after the date
of enactment of S. 1418. The Secretary of Energy shall consult
with the Secretaries of Defense and the Interior, and the
Director of the National Science Foundation. These individuals,
or their designees, are directed to meet not less frequently
than every 120 days to review the progress of the program and
to make recommendations on future activities.
Paragraph (b) permits the Secretary of Energy to award
grants or contracts to, or enter into cooperative agreements
with, universities and industrial enterprises for purposes of
implementing the methane hydrate research and development
program. The Secretary of Energy may also establish an advisory
panel of experts from industry, academia, and Federal agencies
to provide advice on implementing the methane hydrate program.
Paragraph (c) provides limitations on the use of funds made
available to carry out the methane hydrate research and
development program.
Paragraph (d) lists the responsibilities of the Secretary
of Energy in implementing the methane hydrate research and
development program.
Section 4 amends the definition of ``marine mineral
resource'' in the Mining and Mineral Policy Act of 1970 (as
added by the Marine Mineral Resources Research Act of 1996) to
include methane hydrates.
Section 5 authorizes the appropriation of such funds as are
necessary to carry out the methane hydrate research and
development program.
Cost and Budgetary Considerations
The following estimate of the cost of this measure has been
provided by the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 29, 1998.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate,
Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1418, the Methane
Hydrate Research and Development Act of 1997.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Kim Cawley.
Sincerely,
June E. O'Neill, Director.
Enclosure.
congressional budget office cost estimate
S. 1418--Methane Hydrate Research and Development Act of 1997
Summary: S. 1418 would authorize the Department of Energy
(DOE) to begin a program of research and development in the use
of methane hydrate as a source of energy, through grants,
contracts, and cooperative agreements with universities and
industrial enterprises. Deposits of methane hydrate occur in
deep ocean and permafrost areas of the world, and consist of
methane-water ice-like crystalline material. Based on
information from DOE, CBO estimates that the proposed research
program would cost about $35 million over the next five years,
assuming appropriation of the necessary amounts. S. 1418 would
not affect direct spending or receipts; therefore, pay-as-you-
go procedures would not apply. The bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1418 is shown in the following table.
The costs of this legislation fall within budget function 270
(energy).
------------------------------------------------------------------------
By fiscal years, in millions of
dollars--
---------------------------------------
1999 2000 2001 2002 2003
------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level... 5 5 11 12 12
Estimated Outlays............... 2 4 7 10 12
------------------------------------------------------------------------
Basis of estimate: For purposes of this estimate, we assume
that S. 1418 will be enacted before the end of fiscal year 1998
and that outlays from the new program would occur at the same
rate as observed for similar existing programs. The bill would
authorize the appropriation of such sums as are necessary to
conduct a research and development program. Based on
information in DOE's 1998 program plan for methane hydrate, CBO
estimates this activity would require appropriations totaling
about $45 million over the next five years.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 1418
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. Publicly owned universities would be
eligible to receive research funds authorized by the bill.
Estimate prepared by: Kim Cawley.
Estimate approved by: Robert A. Sunshine, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation impact which would be incurred in carrying out S.
1418. The bill of the regulatory is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 1418, as ordered reported.
Executive Communications
The pertinent communication received by the Committee from
the Department of Energy setting forth Executive agency policy
relating to this measure is set forth below:
Statement of Robert S. Kripowicz, Principal Deputy Assistant Secretary
for Fossil Energy, U.S. Department of Energy
Mr. Chairman and members of the subcommittee, I am pleased
to represent the Department of Energy and to present our views
on the potential for methane hydrates as a future source of
natural gas and more specifically, to review the progress we
are making in preparing a multi-agency coordinated research
plan for this potentially vast energy resource. I will also
discuss our position on S. 1418, the Methane Hydrate Research
and Development Act of 1997.
The Department's views on S. 1418, the Methane Hydrate Research and
Development Act
S. 1418 would promote the research, identification,
assessment, exploration, and development of methane hydrate
resources. This legislation provides a clear endorsement from
Congress of federal research efforts to better understand the
true energy potential of methane hydrates. S. 1418 is
consistent with the goals we have established for the federal
hydrates R&D program; therefore, the Department can support
this legislation.
We are particularly pleased to see the Congress emphasize
in Sec. 3(d)(1), the need to facilitate and develop
partnerships among government, industry and academia in future
hydrate R&D. This concept of a public-private partnership, with
shared responsibilities and resources, is fundamental to our
fossil energy R&D program. It is particularly important that
the private sector, which will ultimately be responsible for
converting R&D results into commercially-viable production
methods, be part of the project team early in the R&D process.
We expect to see substantial industry cost-sharing in those
activities that have significance for current drilling
practices, such as the studies of hydrate mechanical properties
and ocean engineering that I mentioned in Goal 4 above. As
other longer-term technologies mature, we expect the proportion
of industry cost-sharing in these areas increase to significant
levels. We also will seek a wide range of private sector and
academic partners. This will expedite significantly the
transfer of technology that evolves from this effort.
We also applaud the Congressional direction to ``ensure
that data and information developed through the program are
accessible and widely disseminated. * * * '' Working with the
Natural Gas Supply Association and the International Centre for
Gas Technology Information, we are proposing to develop a
methane hydrates Internet site that will be used to enhance
information dissemination among the world's community of
hydrate researchers and technology users, as well as to obtain
stakeholder input.
We are also pleased that the Congress has recognized the
importance of cooperation among Federal agencies in developing
potentially promising hydrate technologies. We would not be
nearly as well positioned to begin a new, intensified
examination of the hydrate potential had it not been for the
excellent work of the USGS and the Naval Research Laboratory.
The coordinated involvement of these organizations, along with
others such as the National Science Foundation, the Minerals
Management Service, the Interstate Oil and Gas Compact
Commission, and the Gas Research Institute, will be essential
in carrying out of productive and effectively managed R&D
program.
This concludes my prepared statement. I will be pleased to
answer any questions you or Members of the Subcommittee may
have.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill S. 1418, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
Public Law 104-325 104th Congress
AN ACT To promote the research, identification, assessment, and
exploration of marine mineral resources, and for other purposes
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Marine Mineral Resources
Research Act of 1996''.
* * * * * * *
``SEC. 201. DEFINITIONS.
``In this title:
``(1) The term `contract' has the same meaning as
`procurement contract' in section 6303 of title 31,
United States Code.
``(2) The term `cooperative agreement' has the same
meaning as in section 6305 of title 31, United States
Code.
``(3) The term `eligible entity' means--
``(A) a research or educational entity
chartered or incorporated under Federal or
State law;
``(B) an individual who is a United States
citizen; or
``(C) a State or regional agency.
``(4) The term `grant' has the same meaning as `grant
agreement' in section 6304 of title 31, United States
Code.
``(5) The term `in-kind contribution' means a noncash
contribution provided by a non-Federal entity that
directly benefits and is related to a specific project
or program. An in-kind contribution may include real
property, equipment, supplies, other expendable
property, goods, and services.
``(6) the term `methane hydrate' means a methane
clathrate that--
``(A) is in the form of a methane-water ice-
like crystalline material; and
``(B) is stable and occurs naturally in deep-
ocean and permafrost areas.
``[(6)] (7) The term `marine mineral resource'
means--
``(A) sand and aggregates;
``(B) placers;
``(C) phosphates;
``(D) manganese nodules;
``(E) cobalt crusts;
``(F) metal sulfides;
``(G) methane hydrate; and
``[(G)] (H) other marine resources that are
not--
``(i) oil and gas;
``(ii) fisheries; or
``(iii) marine mammals.
``[(7)] (8) The term `Secretary' means the Secretary
of the Interior.
* * * * * * *
