**Statement of**

**Luke Johnson, Deputy Director**

**Bureau of Land Management**

**House Committee on Natural Resources**

**Subcommittee on National Parks, Forests and Public Lands**

**H.R. 3301, the Southeast Arizona Land Exchange and Conservation Act**

**November 1, 2007**

Thank you for the opportunity to testify on H.R. 3301, the Southeast
Arizona Land Exchange and Conservation Act. The legislation provides for
the exchange of a 3,025-acre parcel of Forest Service-managed land in
exchange for a number of private parcels and a cash payment to a special
Forest Service fund. Two of the private parcels are identified for
transfer to the Secretary of the Interior. In general, we defer to the
United States Forest Service on those issues directly related to Forest
Service lands. We support the principal goals of H.R. 3301, and we
appreciate that a number of changes have been made to the legislation
since last Congress in response to concerns we raised. However, we would
like the opportunity to continue to work with the sponsor and the
Committee on a number of additional modifications to the legislation.

It is our understanding that the intent of the legislation is to
facilitate an exchange of land with Resolution Copper Mining. Resolution
Copper has indicated its intention to explore the possibility of a very
deep copper mine near Superior, Arizona, and wishes to acquire the
3,025-acre Forest Service parcel overlying the copper deposit as well as
the subsurface rights.

The legislation provides for the exchange of a number of parcels of
private land to the Federal government. We note that while the bill
states that two of these parcels are to be conveyed to the Secretary of
the Interior, it is our understanding that the intention of the sponsors
is for the parcels to be under Bureau of Land Management (BLM)
management. The parcels identified are:

-   3,073 acres along the Lower San Pedro River near Mammoth, Arizona;

-   160 acres within the Dripping Springs area, near Kearny, Arizona.

The lower San Pedro parcel is east of the town of Mammoth, Arizona, and
straddles the San Pedro River. The acquisition of these lands would
enhance a key migratory bird habitat along the San Pedro River, and we
would welcome them into BLM management. While H.R. 3301 directs the BLM
to manage the lower San Pedro parcel consistent with the management of
the existing San Pedro Riparian National Conservation Area (NCA)
designated by Public Law 100-696, it specifically does not make these
lands a component of that NCA. The new lands lie along the same riparian
corridor, but they are at least 60 miles downstream (north) of the
existing NCA, and have substantially different resource issues and
needs. We recommend the lands either be designated as a separate unit of
the existing NCA (with their own management guidance), or that they be
managed consistent with the other lands in their vicinity under existing
BLM Resource Management Plans. We understand there is a collaborative
effort of stakeholders currently underway with whom we would like to
work in developing the direction for the management of this area.

The Dripping Springs parcel presents several problems. The legislation
proposes to transfer 160 acres in the Dripping Springs area northeast of
Hayden to the BLM. The BLM is then directed in section 8(b) to transfer
these 160 acres plus an additional approximately 2,000 acres of public
land to the Arizona State Parks Board for the purpose of a rock-climbing
area to replace a similar area currently managed by the Forest Service
that is within the area to be transferred to Resolution Copper. The bill
directs the transfer to Arizona State Parks at no cost as soon as the
new State Park is established.

The Department can support the transfer of the existing 2,000 acres to
the State of Arizona. The majority of these lands were previously
identified for disposal. However, we recommend that the legislation
provide for an immediate transfer of these lands to the State without
waiting for the establishment of the State Park. The BLM does not
currently have the resources or staff to manage a rock climbing area to
replace the existing one on Forest Service lands that would be taken
over by Resolution Copper in this exchange. Therefore, since Dripping
Springs has been designated as the replacement area, we urge its
immediate transfer to the State so that appropriate management of the
area can be arranged. In addition, we do not believe that it is
appropriate for the 160-acre parcel to be a part of the Federal exchange
when the BLM will simply act as a pass-through for the State. Any
arrangements between Arizona State Parks and Resolution Copper should be
handled outside of the Federal exchange.

H.R. 3301 also requires the BLM to provide public access to Arizona
State Parks to construct a road to the new rock-climbing area. The
proposed road stretches over approximately six miles of rough terrain
and, in addition to crossing BLM-managed land, also crosses state and
private property. The legislation would require Resolution Copper to pay
up to \$500,000 to the Secretary of the Interior for transfer to Arizona
State Parks for the construction of the road. We believe that the
funding for the road should be between Resolution Copper and the State
of Arizona rather than involve the Secretary of the Interior.

Section 8(b)(2)(A) requires the immediate granting of a right-of-way
across Federal lands for the road. We believe it is important to
determine the appropriate route for the road through a full and open
public process consistent with the provisions in FLPMA and encourage the
bill be amended to allow us to do so. The BLM is happy to provide a
right-of-way for the road but does not believe it should be involved in
the design, payment, or construction of the road.

Other issues requiring clarification include: timing of the exchange;
appraisal-related provisions; and, the equalization of values
provisions. Section 4(d) of the legislation requires that the exchange
be completed within one year. Based on our experience with exchanges, we
do not believe that this is sufficient time for the completion and
review of a mineral report, completion and review of the appraisals, and
final verification and preparation of title documents. Preparation of a
mineral report is a crucial first step toward an appraisal of the
Federal parcel because the report provides the foundation for an
appraisal where the land is underlain by a mineral deposit. Accordingly,
adequate information for the mineral report is essential. We recommend
adding a provision requiring Resolution Copper to provide confidential
access to the Secretaries of Agriculture and the Interior (and their
representatives) to all exploration and development data and company
analyses on the mineral deposits underlying the Federal land in order to
ensure an accurate appraisal.

Finally, we would like the opportunity to work with the sponsor and the
Committee on miscellaneous technical items including maps for the areas
to be exchanged. In the case of lands to be transferred to or from the
Secretary of the Interior, the maps should be completed by the BLM.

Thank you for the opportunity to testify, I will be happy to answer any
questions.