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[Senate Report 110-363]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 795
110th Congress                                                   Report
                                 SENATE
 2d Session                                                     110-363

======================================================================

 
                        WYOMING RANGE LEGACY ACT

                                _______
                                

                 June 16, 2008.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2229]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2229) to withdraw certain Federal land in 
the Wyoming Range from leasing and provide an opportunity to 
retire certain leases in the Wyoming Range, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill, as amended, do pass.
    The amendments are as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Wyoming Range Legacy Act of 2008''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (2) Wyoming range withdrawal area.--The term ``Wyoming Range 
        Withdrawal Area'' means all National Forest System land and 
        federally owned minerals located within the boundaries of the 
        Bridger-Teton National Forest identified on the map entitled 
        ``Wyoming Range Withdrawal Area'' and dated October 17, 2007, 
        on file with the Office of the Chief of the Forest Service and 
        the Office of the Supervisor of the Bridger-Teton National 
        Forest.

SEC. 3. WITHDRAWAL OF CERTAIN LAND IN THE WYOMING RANGE.

  (a) Withdrawal.--Except as provided in subsection (f), subject to 
valid existing rights as of the date of enactment of this Act and the 
provisions of this Act, land in the Wyoming Range Withdrawal Area is 
withdrawn from--
          (1) all forms of appropriation or disposal under the public 
        land laws;
          (2) location, entry, and patent under the mining laws; and
          (3) disposition under laws relating to mineral and geothermal 
        leasing.
  (b) Existing Rights.--If any right referred to in subsection (a) is 
relinquished or otherwise acquired by the United States (including 
through donation under section 4) after the date of enactment of this 
Act, the land subject to that right shall be withdrawn in accordance 
with this section.
  (c) Buffers.--Nothing in this section requires--
          (1) the creation of a protective perimeter or buffer area 
        outside the boundaries of the Wyoming Range Withdrawal Area; or
          (2) any prohibition on activities outside of the boundaries 
        of the Wyoming Range Withdrawal Area that can be seen or heard 
        from within the boundaries of the Wyoming Range Withdrawal 
        Area.
  (d) Land and Resource Management Plan.--
          (1) In general.--Subject to paragraph (2), the Bridger-Teton 
        National Land and Resource Management Plan (including any 
        revisions to the Plan) shall apply to any land within the 
        Wyoming Range Withdrawal Area.
          (2) Conflicts.--If there is a conflict between this Act and 
        the Bridger-Teton National Land and Resource Management Plan, 
        this Act shall apply.
  (e) Prior Lease Sales.--Nothing in this section prohibits the 
Secretary from taking any action necessary to issue, deny, remove the 
suspension of, or cancel a lease, or any sold lease parcel that has not 
been issued, pursuant to any lease sale conducted prior to the date of 
enactment of this Act, including the completion of any requirements 
under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.).
  (f) Exception.--Notwithstanding the withdrawal in subsection (a), the 
Secretary may lease oil and gas resources in the Wyoming Range 
Withdrawal Area that are within 1 mile of the boundary of the Wyoming 
Range Withdrawal Area in accordance with the Mineral Leasing Act (30 
U.S.C. 181 et seq.) and subject to the following conditions:
          (1) The lease may only be accessed by directional drilling 
        from a lease held by production on the date of enactment of 
        this Act on National Forest System land that is adjacent to, 
        and outside of, the Wyoming Range Withdrawal Area.
          (2) The lease shall prohibit, without exception or waiver, 
        surface occupancy and surface disturbance for any activities, 
        including activities related to exploration, development, or 
        production.
          (3) The directional drilling may extend no further than 1 
        mile inside the boundary of the Wyoming Range Withdrawal Area.

SEC. 4. ACCEPTANCE OF THE DONATION OF VALID EXISTING MINING OR LEASING 
                    RIGHTS IN THE WYOMING RANGE.

  (a) Notification of Leaseholders.--Not later than 120 days after the 
date of enactment of this Act, the Secretary shall provide notice to 
holders of valid existing mining or leasing rights within the Wyoming 
Range Withdrawal Area of the potential opportunity for repurchase of 
those rights and retirement under this section.
  (b) Request for Lease Retirement.--
          (1) In general.--A holder of a valid existing mining or 
        leasing right within the Wyoming Range Withdrawal Area may 
        submit a written notice to the Secretary of the interest of the 
        holder in the retirement and repurchase of that right.
          (2) List of interested holders.--The Secretary shall prepare 
        a list of interested holders and make the list available to any 
        non-Federal entity or person interested in acquiring that right 
        for retirement by the Secretary.
  (c) Prohibition.--The Secretary may not use any Federal funds to 
purchase any right referred to in subsection (a).
  (d) Donation Authority.--The Secretary shall--
          (1) accept the donation of any valid existing mining or 
        leasing right in the Wyoming Range Withdrawal Area from the 
        holder of that right or from any non-Federal entity or person 
        that acquires that right; and
          (2) on acceptance, cancel that right.
  (e) Relationship to Other Authority.--Nothing in this Act affects any 
authority the Secretary may otherwise have to modify, suspend, or 
terminate a lease without compensation, or to recognize the transfer of 
a valid existing mining or leasing right, if otherwise authorized by 
law.

                                PURPOSE

    The purpose of S. 2229 is to withdraw certain Federal land 
in the Wyoming Range from future oil and gas leasing and 
provide an opportunity to retire existing leases in the area.

                          BACKGROUND AND NEED

    The Wyoming Range is an isolated string of peaks, 
approximately 100 miles long, in western Wyoming. Located 
within the Bridger-Teton National Forest, the area supports 
large herds of elk, mule deer, antelope, moose, and pronghorn. 
The Wyoming Range also contains black bear, mountain lion, pine 
martin, a small herd of bighorn sheep, and many more species. 
Native Colorado River, Snake River, and Bonneville cutthroat 
trout, are among the fish populations dependent upon the area's 
rivers. The Wyoming Range mule deer herd is among the largest 
in North America. Its target population is 50,000 animals, 
comprising one tenth of the statewide population.
    In 2004, the Forest Service announced plans to lease 
175,000 acres within the Wyoming Range for oil and gas 
development. The proposal met with enormous public opposition 
and in 2005 the Forest Service decided to scale back the 
leasing proposal to roughly 44,600 acres. In four separate 
auctions during 2005 and 2006, the Bureau of Land Management 
offered these acres for oil and gas lease sale. Approximately 
half of those acres were sold and issued to high bidders. After 
BLM dismissed protests on these sales, some parties appealed 
the decision to the Interior Board of Land Appeals. The Board 
granted a stay and suspended development on these parcels. The 
BLM requested remand in order for the Forest Service to 
undertake a supplemental environmental analysis, which is now 
in process. The BLM upheld protests on the remaining half of 
the 44,600 acres and has not issued leases to the high bidders 
of these sales.
    The bill withdraws, subject to valid existing rights, 
approximately 1.2 million acres of land within the Bridger-
Teton National Forest, referred to as the Wyoming Range, from 
new oil and gas leasing as well as any other form of 
appropriation or disposal under the public land laws. Further, 
the bill sets up a process to retire existing oil and gas 
leases in the area, at the lessee's request, and use non-
federal funds to pay for them.
    S. 2229 is needed to protect the important and 
irreplaceable wildlife and recreational values of the Wyoming 
Range, and responds to the broad public opposition from local 
landowners, business owners, labor unions, hunting and fishing 
groups, ranchers, and elected officials in Wyoming to oil and 
gas development in the Wyoming Range.

                          LEGISLATIVE HISTORY

    Senator Barrasso and Senator Enzi introduced S. 2229 on 
October 25, 2007. The Subcommittee on Public Lands and Forests 
held a hearing on S. 2229 on February 27, 2008. The Committee 
on Energy and Natural Resources ordered it favorably reported 
with an amendment in the nature of a substitute on May 7, 2008.

            COMMITTEE RECOMMENDATION AND TABULATION OF VOTES

    The Committee on Energy and Natural Resources, in open 
business session on May 7, 2008, by a majority vote of a quorum 
present, recommends that the Senate pass S. 2229, if amended as 
described herein.
    The rollcall vote on reporting the measure was 13 yeas, 9 
nays, as follows:
        YEAS                          NAYS
Bingaman                            Landrieu
Akaka\1\                            Domenici
Dorgan\1\                           Craig
Wyden\1\                            Murkowski
Johnson\1\                          Burr\1\
Cantwell                            DeMint
Salazar                             Corker
Menendez                            Smith
Lincoln\1\                          Bunning\1\
Sanders\1\
Tester
Barrasso
Martinez\1\

    \1\Voted by proxy.

                          COMMITTEE AMENDMENT

    During its consideration of S. 2229, the Committee adopted 
an amendment in the nature of a substitute. The amendment 
strikes the findings and purpose section and makes some 
technical and clarifying changes. In addition, the amendment 
adds a provision giving the Secretary limited authority to 
lease oil and gas resources in the withdrawal area so long as a 
number of conditions are met. The provisions of the substitute 
are described in more detail in the section-by-section 
analysis.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 contains the short title for the bill.
    Section 2 defines key terms used in the legislation.
    Section 3(a) withdraws, subject to valid existing rights, 
the Wyoming Range Withdrawal Area from all forms of 
appropriation under the public land laws; location, entry, and 
patent under the mining laws; and disposition under laws 
relating to mineral and geothermal leasing.
    Subsection (b) requires that, if any right referred to in 
subsection (a) is relinquished, the land subject to that right 
shall be withdrawn in accordance with this section.
    Subsection (c) states that nothing in this section requires 
the creation of a buffer area outside the boundaries of the 
Wyoming Range Withdrawal Area or any prohibition on activities 
outside of the boundaries of the area.
    Subsection (d) requires that the Bridger-Teton National 
Land and Resource Management Plan shall apply to any land 
within the Wyoming Range Withdrawal Area and if there is a 
conflict between the plan and this Act, the Act shall apply.
    Subsection (e) states that nothing in this section 
prohibits the Secretary from taking any action necessary to 
issue, deny, or cancel a lease that has not been issued, 
pursuant to any lease sale conducted prior to the date of 
enactment of this Act.
    Subsection (f) authorizes the Secretary, notwithstanding 
the withdrawal in subsection (a), to lease oil and gas 
resources in the Wyoming Range Withdrawal Area subject to a 
number of conditions, including that the lease may only be 
accessed by directional drilling.
    Section 4(a) requires the Secretary to provide notice to 
holders of valid existing rights within the Wyoming Range 
Withdrawal Area of the potential opportunity for repurchase of 
those rights and retirement.
    Subsection (b) authorizes a holder of a valid existing 
right within the withdrawal area to submit a written notice to 
the Secretary of the interest of the holder in the retirement 
and repurchase of that right. This subsection also requires the 
Secretary to prepare a list of interested holders and make the 
list available to any non-Federal entity or person interested 
in acquiring that right for retirement by the Secretary.
    Subsection (c) prohibits the Secretary from using Federal 
funds to purchase any right referred to in subsection (a).
    Subsection (d) requires the Secretary to accept the 
donation of any valid existing mining or leasing right in the 
Wyoming Range Withdrawal Area from the holder of that right or 
from any non-Federal entity or person that acquires that right 
and, on acceptance, cancel that right.
    Subsection (e) states that nothing in this Act affects any 
authority the Secretary may otherwise have to modify, suspend, 
or terminate a lease without compensation, or to recognize the 
transfer or a valid existing mining or leasing right, if 
otherwise authorized by law.

                   COST AND BUDGETARY CONSIDERATIONS

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the Congressional Budget Office 
completes its cost estimate, it will be posted on the internet 
at www.cbo.gov.

                      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 of the regulatory impact which would be incurred in 
carrying out S. 2229. The bill 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. 2229, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    S. 2229, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        EXECUTIVE COMMUNICATIONS

    The views of the Administration were included in testimony 
received by the Committee at a hearing on S. 2229 on February 
27, 2008.

    Statement of Luke D. Johnson, Deputy Directory, Bureau of Land 
                               Management

    Thank you for the opportunity to testify on S. 2229, the 
Wyoming Range Legacy Act of 2007. The bill provides for the 
legislative withdrawal of 1.2 million acres of land from 
mineral development, subject to valid existing rights, and 
offers existing lessees an opportunity for the voluntary 
retirement of their lease.
    The Administration supports this bill, and looks forward to 
working with the Congress to address issues such as the 
potential budgetary impact and necessary offsets. The 
Department does have concerns with the bill as drafted, and 
would like to work with our sister agency, the U.S. Forest 
Service, and the Committee to address those concerns. This area 
contains significant energy resources, and we are concerned 
that a withdrawal from mineral development that is too broad 
could significantly impact the Administration's efforts to 
ensure access to important energy resources. The Department is 
also concerned that it could leave these Federal resources 
vulnerable to drainage, without appropriate compensation to the 
Federal Treasury and the State, if development occurs on 
adjacent private lands. We would like to work with the Forest 
Service and the Committee to determine appropriate boundaries 
and acreage associated with the withdrawal. For example, one 
issue to consider is whether there could be restrictions on 
surface disturbance, while allowing the Federal resources to be 
extracted from adjacent BLM lands.
    There are currently 76 oil and gas leases held by 
production and 26 hardrock mining claims located within or 
adjacent to the proposed withdrawal area. We note that S. 2229 
contains language in section 3(a) that preserves valid existing 
rights, a provision we support and consider very important for 
two reasons. First, those companies that have existing leases 
and mining claims should be able to rely upon the certainty of 
those underlying documents in making investment decisions 
critical to the development of the resources. Second, the 
resources at issue are potentially significant. BLM estimates 
that the 1.2 million acre area covered by the bill contains 8.8 
trillion cubic feet of natural gas and 331 million barrels of 
oil that are technically recoverable using today's technology. 
The natural gas alone amounts to roughly one-third of a year's 
annual natural gas consumption for the entire nation. This 
production could have a substantial impact on royalty revenues 
that would otherwise be shared by the Federal Treasury and the 
State of Wyoming for the benefit of taxpayers.
    While the bill recognizes valid existing rights for issued 
leases, the bill does not recognize the importance of those oil 
and gas leases that have already been sold at competitive sale, 
but are awaiting a final decision. These leases were offered in 
accordance with the land use planning process. We believe the 
Federal Government needs to be a reliable partner when 
companies make major financial investments.
    With regard to the provisions in S. 2229 concerning the 
voluntary retirement of leases using nonfederal funds, we do 
not object to the concept. However, we have concerns about the 
methods and processes set forth in the bill and suggest a 
number of amendments. We stand ready to work with the Forest 
Service, the bill sponsors, and the Committee to find a 
solution that will meet the needs of the American public and 
the citizens of Wyoming.

                                s. 2229

    S. 2229 provides for the withdrawal of approximately 1.2 
million acres of the Bridger-Teton National Forest (BTNF) from 
location, entry, leasing and patent under the mining law, 
mineral leasing laws, and public land laws, subject to valid 
existing rights. Also, the bill offers existing lessees the 
opportunity to voluntarily submit a written request for the 
retirement and repurchase of their lease and directs that the 
purchase price be based on the fair market value of the lease 
as determined by an agreed-upon appraisal.
    The bill authorizes the Secretary to accept donations of 
lease interests and to use non-Federal funds to pay for the 
purchase of the lease. It specifies that the Act is not meant 
to limit compensation from a private, State or other source in 
lieu of, or in addition to, receiving compensation under the 
Act. Presumably, these provisions were intended to allow 
lessees to receive monies directly from outside groups and then 
donate or waive their claim to compensation from the Secretary. 
The acquired leases would be cancelled and made subject to the 
withdrawal.

              mineral resources within the withdrawal area

    The Forest Service is responsible for the surface 
management of National Forest System land; however, the 
Secretary of the Interior and BLM have a vital interest in 
mineral development as the agency responsible for administering 
the 700 million acres of subsurface estate under the Mining Law 
of 1872 and various mineral leasing acts. BLM issues mineral 
leases upon concurrence of the surface management agency and 
works cooperatively with the agency to ensure that management 
goals and objectives for mineral exploration and development 
activities are achieved, that operations are conducted to 
minimize effects on natural resources, and that the land 
affected by minerals operations is reclaimed.
    The Bridger-Teton National Forest issued the Record of 
Decision for their revised Forest Plan on March 2, 1990. The 
revised Forest Plan provided for leasing of the areas proposed 
for withdrawal under the bill. While the BLM has leases dating 
back to 1964 within the Wyoming Range, approximately 40 leases 
have been issued under the revised plan. Within the proposed 
withdrawal area, there are 143 issued or pending oil and gas 
leases covering more than 197,000 acres; 76 of these leases are 
currently under production. Bonus bids collected in 2006 on 12 
competitive leases totaled almost $2.6 million. The withdrawal 
provisions in the bill preserve valid rights ``in existence on 
the date of enactment.'' In 2006, twelve parcels were leased 
with bonus bids totaling nearly $2.6 million. Those leases are 
currently suspended, awaiting further NEPA analysis following 
an IBLA ruling. An additional 23 leases were sold in Fiscal 
Year 2006 with bonus bids totaling approximately $2.2 million. 
Those leases were not issued and have been placed in a pending 
status with the money in escrow until the additional NEPA work 
required by the IBLA decision is completed. We recommend that 
the bill be amended to preserve the opportunity for the 23 
leases in pending status to be issued and developed, and that 
the voluntary retirement provisions also apply.
    In addition to oil and gas leases, as noted earlier, there 
are 26 mining claims located within or adjacent to the proposed 
withdrawal area as well as one 160-acre sodium lease. While no 
activity is currently taking place on existing claims and the 
lease described above, the claimants are continuing to pay 
annual maintenance fees and the lessee is continuing to pay 
rental fees to preserve options for future development.

                          proposed amendments

    We suggest a number of amendments to the provisions 
providing for the voluntary retirement of existing leases. 
Section 4(b) of S. 2229 states, ``The Secretary may use non-
Federal funds to purchase any lease from a lessee who requests 
retirement and repurchase of the lease under subsection (a).'' 
There is no clear indication that the Secretary has discretion 
in whether to purchase the lease if non-Federal funds are not 
available. Furthermore, the bill does not specify who would be 
responsible for funding the appraisals. It is our understanding 
that the intent of the bill is to provide a process by which 
outside groups could fund the voluntary retirement of the 
leases. We suggest that the bill be amended to allow the 
Secretary to accept the relinquishment by lessees of their 
lease interest and subsequently provide for their retirement. 
The bill should make clear that there is no duty for the 
Secretary to purchase any lease without a donation or other 
non-Federal funds being made available in advance. The 
Secretary should not be involved in the actual collection of 
donated funds or the repurchasing of leases. Compensating a 
lessee for the voluntary relinquishment of a lease should be 
handled using only private funding, and the Federal Government 
should not be involved in those transactions. We are also 
concerned about the advisability of retiring leases that have 
already been placed into production.
    We would like to point out that the retirement and 
repurchase provisions in the bill only apply to leased 
minerals. However, the bill provides for the withdrawal of this 
area from location, entry, and patent under the mining laws and 
mineral leasing laws. Thus, these mining claimants would not be 
provided the same option for purchase of their interest under 
the bill.

 environmental best management practices and the technology of mineral 
                           development today

    Our Nation faces a great challenge in meeting its energy 
needs. We consume much more than we produce; this is especially 
true for oil. We are importing about 60 percent of our oil from 
foreign sources--a percentage that is expected to increase to 
68 percent by 2025. We need to protect our economic and 
national security by increasing our ability to produce more of 
our energy domestically in a prudent and environmentally 
sensitive way. In 2007, Federal production in Wyoming was 34.4 
million barrels of oil and 1.36 TCF of natural gas. During this 
same time period, total Federal onshore production was 104.7 
million barrels of oil and 2.8 TCF of natural gas. We 
appreciate the tremendous contribution the state of Wyoming 
makes to our Country's energy security.
    The BLM also appreciates the non-energy uses and values 
that our public lands provide to the American people, such as 
outstanding hunting and fishing opportunities, diverse 
recreational activities, and habitat to a wide array of 
wildlife. While one option of retaining habitat and 
recreational values in the Bridger-Teton National Forest is to 
withdraw the land from mineral development, other possibilities 
exist. Across the country, hunting and fishing and other 
recreational activities occur side by side with energy and 
other resource development activities. When properly planned, 
energy development activities and resource protection are not 
mutually exclusive concepts. To the contrary, our experience 
shows that sound stewardship can be achieved contemporaneously 
with energy development. To this end, we would like to take 
this opportunity to highlight the cooperative efforts by BLM, 
surface management agencies, the states, and industry to employ 
new technologies and environmental best management practices 
(BMPs), which have been successful in decreasing the footprint 
of energy development and mitigating the impact of operations 
on important natural resource values.
    For example, the energy industry's drilling technology has 
now evolved to the point where 22 or more deep gas wells can 
typically be drilled side-by-side, 7 feet apart, on a well pad 
that is no larger than the traditional single well pads of the 
past. This new practice significantly reduces the surface 
footprint of new development by eliminating, in this example, 
the other 21 well pads, roads, and sets of utilities. When 
combined with the use of centralized offsite production 
facilities, the need for roads, well pads, and truck traffic is 
greatly reduced. This is extremely important when it comes to 
protecting wildlife habitat and recreational resources.
    To further reduce the visual footprint of development, new 
facilities can also be screened, painted, and even camouflaged. 
Full interim reclamation of nearly all disturbed areas can help 
to ensure soils stay in place and habitat values are protected 
during the life of development. When further protection is 
needed, development can also be slowly phased, one site at a 
time, without moving to a new area until the first area is 
operational, gated, and has undergone successful interim 
reclamation. Today's practices are a major advancement from 
those of even three years ago, and we expect the trend to 
continue.
    Other tools are also available besides withdrawal to ensure 
non-surface occupancy of areas with significant environmental 
and recreation values. Moreover, we believe it is possible to 
consider withdrawals more selectively, rather than as a blanket 
approach.
    These examples of BMP's and the use of continuously 
evolving technology indicate that environmentally conscious 
development of energy resources can occur in a multiple use 
environment.
    Thank you for the opportunity to testify. I will be happy 
to answer any questions.

Statement of Melissa Simpson, Deputy Under Secretary, Natural Resources 
               and Environment, Department of Agriculture

    Mr. Chairman and members of the Subcommittee, thank you for 
the opportunity to testify today on this bill that pertains to 
the U.S. Department of Agriculture (USDA), Forest Service.
    S. 2229 would provide for the establishment of the Wyoming 
Range Withdrawal Area, consisting of 1.2 million acres of the 
Bridger-Teton National Forest withdrawn from all forms of 
appropriation or disposal under the public land laws; location, 
entry, and patent under the United States mining laws; and 
disposition under laws relating to mineral and geothermal 
leasing or mineral materials. The bill would also allow for the 
voluntary retirement and repurchase of existing oil and gas 
leases and other mineral leases within the withdrawal area.
    The Administration supports this bill, and looks forward to 
working with the Congress to address issues such as the 
potential budgetary impact and necessary offsets. The 
Department of Agriculture does have concerns with the bill as 
drafted, and would like to work with the Department of the 
Interior and the Committee to address those concerns. I would 
like to offer some suggested amendments for the Committee to 
consider.
    Because of the national need for energy, the Department 
supports the appropriate development of energy resources on 
National Forest System lands, in collaboration with 
stakeholders, while effectively protecting the environment. 
This Administration is committed to cooperative conservation, 
as reflected in Executive Order 13352, Facilitation of 
Cooperative Conservation. In this case, we recognize the 
interest of a wide variety of stakeholders in the goals of this 
bill. The list of supporters within Wyoming is long and varied, 
including local government officials and the Governor in a 
state that has been very supportive of energy development in 
other areas.
    The Forest Service shares authority with the Bureau of Land 
Management (BLM), to varying extents depending upon the 
minerals in question and the lands on which they are found, to 
ensure that management goals and objectives for mineral 
exploration and development activities are achieved, that 
operations are conducted to minimize effects on natural 
resources, and that the land affected by minerals operations is 
reclaimed.
    All the existing leases in the area covered by this 
legislation are consistent with the Bridger-Teton's Land and 
Resource Management Plan. However, there are a number of 
pending oil and gas leases in this area that have been sold at 
competitive sales but are awaiting a final decision on issuance 
due to an Interior Board of Land Appeals ruling and the need 
for supplemental environmental analysis under the National 
Environmental Policy Act.
    We recommend the following clarifications to the proposed 
bill language. Section 2(b) of the bill sets out the purposes 
of the Act, including the withdrawal of areas in the Wyoming 
Range from location, entry, leasing, and patent under the 
United States mining laws. However, the language in Section 
3(a), which effects the withdrawal, withdraws those areas from 
the laws governing mineral leasing, geothermal resource leasing 
and disposition of mineral materials. We recommend that the 
language in Sections 2 and 3 be aligned. We would like to work 
with the Committee to more accurately determine boundaries and 
acreage associated with the withdrawal.
    Section 3(a) of the bill also provides that the withdrawal 
under S. 2229 is subject to ``valid rights in existence on the 
date of enactment,'' for the oil and gas leases that have 
already been issued by BLM. The term ``valid rights'' may have 
been intended to include the oil and gas leases that have been 
sold, but not issued, but that would not be consistent with 
Interior Board of Land Appeals precedent. Current supplemental 
environmental analysis efforts are being conducted by the 
Bridger-Teton National Forest to determine if it is appropriate 
to issue those leases. The Committee should modify this section 
to clarify that those leases which have been sold, but have not 
been issued, may be issued notwithstanding the withdrawal, 
following completion of the ongoing environmental analysis.
    In Section 3(a)(3), we suggest that ``mineral materials'' 
be excluded from the withdrawal. Mineral material supplies are 
critical to the maintenance of Forest Service roads and 
facilities on the forest. Mineral materials include sand and 
gravel as well as other materials utilized in the construction 
and maintenance of Forest Service roads and facilities. 
Maintaining roads and facilities is necessary to ensure proper 
conditions and safety for the public and Forest Service 
employees. This withdrawal would prohibit the Forest Service 
from using locally obtainable mineral materials for public 
purposes--including access to hunting and fishing--that are 
consistent with the management of the national forests. 
Replacement would be at greatly increased cost.
    Section 3(c) of the bill provides that land for which valid 
existing rights exist becomes subject to the withdrawal's 
effect upon the termination of those rights. This provision is 
not necessary. The withdrawal made by the legislation already 
precludes new dispositions by the United States.
    Section 3(e) would provide that the forest plan applies to 
areas in the National Forest that are not withdrawn by the bill 
or to any leases of that land. By implication, the forest plan 
in its entirety would not apply to areas that are withdrawn. We 
recommend that subsection (e) be deleted so that there would be 
no uncertainty that the forest plan applies to the withdrawn 
area. Alternatively, we would like to work with the Committee 
to develop technical edits.
    Section 4 would allow for retirement and repurchase of 
mineral leases, including oil and gas leases, for lands within 
the Wyoming Range. We recommend that the language be modified 
to also permit the retirement and repurchase of mining claims 
within the Wyoming Range located pursuant to the United States 
mining laws if those mining claims constitute valid existing 
rights. There are 26 mining claims in existence within the 
proposed withdrawal area. Those claims may constitute valid 
existing rights if they were properly located, a discovery of a 
valuable locatable mineral deposit was made within the confines 
of the claim prior to the date that the claimed lands are 
withdrawn from appropriation under the United States mining 
laws, and those mining claims are thereafter properly 
maintained.
    By agreement with the Department of the Interior, the 
Forest Service prepares mineral examination reports to 
determine whether a mining claim embracing National Forest 
System lands constitutes a valid existing right following the 
withdrawal of those lands from the operation of the United 
States mining laws. The Department of Agriculture recommends 
that the appropriations for the administrative costs of 
conducting validity examinations and performing appraisals of 
any mining claims which constitute valid existing rights, if 
those actions are necessary, be included in Section 4 so as to 
not create a financial impact on the Government.
    We look forward to working with the bill's sponsor and the 
committee to clarify the bill.
    This concludes my testimony. I would be happy to answer any 
questions you may have.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill, S. 2229, as 
ordered reported.

                                  
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