Page:United States Statutes at Large Volume 110 Part 1.djvu/657

 PUBLIC LAW 104-106—FEB. 10, 1996 110 STAT. 633 able price for the reserve. The Secretary may not set the minimum acceptable price below the higher of— (A) the average of the five assessments prepared under paragraph (1); and (B) the average of three assessments after excluding the high and low assessments. (e) ADMINISTRATION OF SALE; DRAFT CONTRACT. —(1) Not later than two months after the effective date, the Secretary shall retain the services of an investment banker or an appropriate equivalent financial adviser to independently administer, in a manner consistent with commercial practices and in a manner that maximizes sale proceeds to the Government, the sale of Naval Petroleum Reserve Numbered 1 under this section. Costs and fees of retaining the investment banker or financial adviser may be paid out of the proceeds of the sale of the reserve. (2) Not later than 11 months after the effective date, the investment banker or financial adviser retained under paragraph (1) shall complete a draft contract or contracts for the sale of Naval Petroleum Reserve Numbered 1, which shall accompany the solicitation of offers and describe the terms and provisions of the sale of the interest of the United States in the reserve. (3) The draft contract or contracts shall identify— (A) all equipment and facilities to be included in the sale; and (B) any potential claim or liability (including liability for environmental restoration and remediation), and the extent of any such claim or liability, for which the United States is responsible under subsection (g). (4) The draft contract or contracts, including the terms and provisions of the sale of the interest of the United States in the reserve, shall be subject to review and approval by the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget. Each of those officials shall complete the review of, and approve or disapprove, the draft contract or contracts not later than 12 months after the effective date. (f) SOLICITATION OF OFFERS.— (1) Not later than 13 months Publication. after the effective date, the Secretary shall publish the solicitation of offers for Naval Petroleum Reserve Numbered 1. (2) Not later than 18 months after the effective date, the Secretary shall identify the highest responsible offer or offers for purchase of the interest of the United States in Naval Petroleum Reserve Numbered 1 that, in total, meet or exceed the minimum acceptable price determined under subsection (d)(3). (3) The Secretary shall take such action immediately after the effective date as is necessary to obtain from an independent petroleum engineer within 10 months after that date a reserve report prepared in a manner consistent with commercial practices. The Secretary shall use the reserve report in support of the preparation of the solicitation of offers for the reserve. (g) FUTURE LIABILITIES.—To effectuate the sale of the interest of the United States in Naval Petroleum Reserve Numbered 1, the Secretary may extend such indemnities and warranties as the Secretary considers reasonable and necessary to protect the purchaser from claims arising from the ownership in the reserve by the United States. (h) MAINTAINING PRODUCTION. —Until the sale of Naval Petroleum Reserve Numbered 1 is completed under this section, the

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