Lackawanna Valley Heritage Area Act of 1998

Lackawanna Valley Heritage Area Act of 1998 - Establishes the Lackawanna Heritage Valley American Heritage Area, comprised of all or parts of four coal-producing counties in northeast Pennsylvania, to be managed by the Lackawanna Heritage Valley Authority.

Directs the Secretary of the Interior to enter into a management compact with the Authority to determine Area goals and objectives.

Directs the Authority to develop an Area management plan that presents comprehensive recommendations for the Area's conservation, funding, management, and development. Requires the plan to be submitted to the Secretary for approval within three years after the enactment of this Act. Outlines related management duties. Prohibits the Authority from using Federal funds to acquire real property under this Act. Provides for: (1) technical and financial assistance from the Secretary to the Authority to develop and implement the plan; (2) approval or disapproval of compacts and management plans; and (3) termination on September 30, 2012, of the Secretary's authority to make a grant or provide assistance under this Act.

Authorizes appropriations. Prohibits Federal funding for the Area from exceeding 50 percent of total costs.