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[Senate Report 107-73]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 175

107th Congress                                                   Report
                                 SENATE
 1st Session                                                     107-73

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

 
              GRAND TETON NATIONAL PARK LAND EXCHANGE ACT

                                _______
                                

                 October 1, 2001.--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. 1105]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1105) to provide for the expeditious 
completion of the acquisition of State of Wyoming lands within 
the boundaries of Grand Teton National Park, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill, as amended, do 
pass.
    The amendment is as follows:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Grand Teton National Park Land 
Exchange Act''.

SEC. 2. DEFINITIONS.

    As used in this Act:
          (1) The term ``Governor'' means the Governor of the State of 
        Wyoming.
          (2) The term ``Federal lands'' means public lands identified 
        for disposal under approved land use plans (as in effect on the 
        date of enactment of this Act) under section 202 of the Federal 
        Land Policy and Management Act of 1976 (43 U.S.C. 1712).
          (3) The term ``Secretary'' means the Secretary of the 
        Department of the Interior.
          (4) The term ``State lands'' means the State of Wyoming 
        lands, and interest therein, within the boundaries of Grand 
        Teton National Park as identified on a map titled ``Private, 
        State & County Inholdings Grand Teton National Park'', dated 
        March 2001, and numbered GTNP-0001.

SEC. 3. PURPOSE.

    The purpose of this Act is to authorize the Secretary to acquire 
approximately 1,406 acres of State lands and interests therein within 
the exterior boundaries of Grand Teton National Park.

SEC. 4. VALUATION OF INTEREST.

    Not later than 90 days after the date of enactment of this Act, the 
State lands to be acquired shall be valued by one of the following 
methods:
          (1) Selection of appraiser.--The Secretary and the Governor 
        shall mutually agree on the selection of a qualified appraiser 
        to conduct an appraisal of the State lands.
          (2) No agreement on appraiser.--If no appraiser is mutually 
        agreed to under paragraph (a)(1) of this section, the Secretary 
        and the Governor shall each designate a qualified appraiser, 
        and the two designated appraisers shall select a third 
        qualified appraiser to perform the appraisal with the advice 
        and assistance of the designated appraisers.
          (3) Failure of process.--If the Secretary and the Governor 
        cannot agree on the evaluation of the appraised State lands by 
        the date that is 180 days after the date of enactment of this 
        section the Governor may petition the United States Court of 
        Federal Claims for a determination of the value of the State 
        lands and interest therein. Subject to the right of appeal, a 
        determination by the Court shall be binding for purposes of 
        this section on all parties.

SEC. 5. LAND EXCHANGE.

    Within 180 days after the value of the State lands is determined in 
accordance with the provisions of section 4 of this Act, the Secretary, 
in consultation with the Governor, shall exchange Federal lands of 
equal value or other Federal assets of equal value, or a combination of 
both, for the State lands.

SEC. 6. ADMINISTRATION OF ACQUIRED LANDS.

    Upon final exchange of title between the State and the Secretary, 
the lands conveyed to the United States pursuant to this Act shall 
become part of Grand Teton National Park. Once conveyed, such lands 
shall be managed in accordance with the Act of August 25, 1916 
(commonly known as the ``National Park Service Organic Act'') and other 
laws, rules and regulations applicable to units of the National Park 
System.

                                PURPOSE

    The purpose of S. 1105 is to provide for the acquisition of 
approximately 1,366 acres of land and 40 acres of mineral 
intereests owned by the State of Wyoming within the boundaries 
of Grand Teton National Park.

                          BACKGROUND AND NEED

    At the time of statehood, Wyoming was granted two sections 
and a third smaller parcel of school trust lands in what later 
became Grand Teton National Park. The Wyoming Constitution 
directs the State to generate a reasonable income from these 
trust lands to support its public schools. Any revenue or 
proceeds from school trust lands must be used for the 
educational trust fund. The State has been leasing the lands 
identified in the bill for grazing and wildlife purposes, 
raising approximately $2,000 annually in fees. Due to a recent 
Wyoming Supreme Court decision, the State is reevaluating the 
revenue streams from its school trust lands. Because the State 
land in Grand Teton National Park is near the town of Jackson, 
the State may be facing future legal challenges to obtain 
maximum value for the lands and sell them for development.
    Three parcels of land and a 40-acre tract of subsurface 
mineral interests would be exchanged under the terms of S. 
1105. The 40-acre mineral interest is located in the northern 
part of the park near Jackson Lake. The smallest land parcel of 
state land comprises 86 acres and is located across the Snake 
River from the Jackson Hole Airport. The two largest parcels, 
640 acres in size each, are in the southern and eastern portion 
of the park close to some of the park's developed road system. 
Enactment of S. 1105 will allow for the continued protection of 
these properties within Grand Teton National Park while 
ensuring that the State of Wyoming meets its constitutional 
mandate to maximize revenues from its school trust lands.

                          LEGISLATIVE HISTORY

    S. 1105 was introduced by Senators Thomas and Enzi on March 
1, 2001. The Subcommittee on National Parks held a hearing on 
S. 1105 on July 31, 2001. At its business meeting on August 2, 
2001, the Committee on Energy and Natural Resources ordered S. 
1105 favorably reported with an amendment in the nature of a 
substitute.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on August 2, 2001, by a voice vote of a 
quorum present, recommends that the Senate pass S. 1105, if 
amended as described herein.

                          COMMITTEE AMENDMENTS

    During the consideration of S. 1105, the Committee adopted 
an amendment in the nature of a substitute. The amendment made 
minor clarifying and technical changes. The amendment also 
clarifies that only public lands identified as eligible for 
disposal under approved land use plans may be exchanged for the 
State inholdings. The amendment is explained in detail in 
thesection-by-section analysis, below.

                      Section-By-Section Analysis

    Section 1 entitles the bill ``Grand Teton National Park 
Land Exchange Act.''
    Section 2 defines key terms used in the bill.
    Section 3 states that the purpose of the Act is to 
authorize the Secretary of the Interior (the ``Secretary'') to 
acquire approximately 1,406 acres of State lands and interests 
within Grand Teton National Park.
    Section 4 requires that the State lands be valued within 90 
days after the date of enactment by one of the following 
methods: the Secretary and the Governor are to mutually agree 
on the selection of a qualified appraiser to conduct an 
appraisal of the State lands; or if they are unable to agree on 
an appraiser, then they are each to select an appraiser, and 
the two appraisers will select a third qualified appraiser to 
value the State lands. If the Secretary and Governor are unable 
to agree on the value of the State lands within 180 days after 
the date of enactment of this Act, then the Governor is 
authorized to petition the U.S. Court of Federal Claims for a 
binding determination of value, subject to the right of appeal.
    Section 5 requires the Secretary, within 180 days after the 
valuation of the State lands is determined, to exchange Federal 
lands, assets, or a combination of both for the State lands.
    Section 6 provides that the lands and interests acquired 
from the State are to be administered as part of Grand Teton 
National Park and are to be managed in accordance with the Act 
of August 25, 1916 (the National Park Service Organic Act) and 
other laws and regulations applicable to units of the National 
Park System.

                   Cost And Budgetary Considerations

    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 10, 2001.
Hon. Jeff Bingaman,
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. 1105, the Grand 
Teton National Park Land Exchange Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               congressional budget office cost estimate

S. 1105--Grand Teton National Park Land Exchange Act

    Summary: S. 1105 would direct the Secretary of the Interior 
to exchange federal lands or assets to acquire about 1,400 
acres of state-owned lands and associated interests that lie 
within the boundaries of the Grand Teton National Park in Teton 
County, Wyoming. Under the bill, the Secretary and the Governor 
of Wyoming must agree on the appraised value of the state lands 
prior to the exchange, and, once such an agreement has been 
reached, the exchange must occur within 180 days.
    CBO estimates that enacting S. 1105 would increase direct 
spending by $23 million over the next 10 years and by $36 
million over the next 20 years. Because the bill would affect 
direct spending (including offsetting receipts), pay-as-you-go 
procedures would apply. CBO also estimates that implementing 
the bill could cost $1 million in 2002, assuming appropriation 
of the necessary amounts.
    S. 1105 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. This exchange would be voluntary on the part of 
the Wyoming state government.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1105 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

                [By fiscal year, in millions of dollars]
------------------------------------------------------------------------
                                   2002    2003    2004    2005    2006
------------------------------------------------------------------------
                       CHANGES IN DIRECT SPENDING

Estimated Budget Authority......       0       2       3       3       3
Estimated Outlays...............       0       2       3       3       3

              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...       1       0       0       0       0
Estimated Outlays...............       1       0       0       0       0
------------------------------------------------------------------------

    Basis of estimate: S. 1105 does not specify the federal 
lands or assets to be exchanged for state-owned lands, nor does 
it provide a definition for federal assets. The bill does 
specify that the federal lands or assets exchanged must be 
equal in value to Wyoming's lands. According to Wyoming state 
officials, the state would prefer to exchange its lands for 
federal assets that would produce a significant source of 
income to support schools in the state. According to the 
Department of the Interior (DOI), federal assets exchanged 
under S. 1105 could include the federal government's reserved 
royalty interest in federally owned mineral resources, thereby 
allowing the state to collect royalty payments due under 
federal leases. For this estimate, CBO assumes that the 
Secretary would exchange the reserved royalty interest in one 
or more oil or gas leases that are expected to produce a stream 
of royalties with a net present value equal to the estimated 
value of Wyoming's lands--$42 million. We also assume that the 
exchange would occur during fiscal year 2003.

Direct spending (including offsetting receipts)

    Based on information from DOI and Teton County, Wyoming, 
about the potential value of the state lands, CBO estimates 
that exchanging reserved royalty interests to acquire those 
lands would reduce federal receipts from mineral leases by a 
total of $47 million over the 2003-2011 period and by $72 
million over the next 20 years. Because Wyoming receives 50 
percent of federal mineral receipts generated within its 
boundaries, those forgone receipts would be partially offset by 
a corresponding decrease in direct spending of about $23.5 
million over the 2003-2011 period, (and $36 million over the 
next 20 years). Hence, we estimate that enacting S. 1105 would 
result in a net increase in direct spending of $23.5 million 
over the 2003-2011 period. That amount could be less if other 
assets, such as federal lands, are used to complete the 
exchange instead of royalty interests.

Spending subject to appropriation

    Assuming appropriation of the necessary amounts and based 
on information from DOI, CBO estimates that the department 
would spend $1 million to implement the exchange authorized by 
the bill, with most of that spending occurring in 2002, subject 
to the availability of appropriated funds.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays that are subject to pay-as-you-go procedures 
are shown in the following table. For the purposes of enforcing 
pay-as-you-go procedures, only the effects in the current year, 
the budget year, and the succeeding four years are counted.

                                    [By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                      2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      0      0      2      3      3      3      3      3      3      2      2
Changes in receipts................  (\1\)  (\1\)  (\1\)  (\1\)  (\1\)  (\1\)  (\1\)  (\1\)  (\1\)  (\1\)  (\1\)
----------------------------------------------------------------------------------------------------------------
\1\ Not applicable.

    Intergovernmental and private-sector impact: S. 1105 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. This exchange would be voluntary on the 
part of the Wyoming state government.
    Estimate prepared by: Federal Costs: Megan Carroll and 
Julie Middleton. Impact on State, Local and Tribal Governments: 
Marjorie Miller. Impact on the Private Sector: Lauren Marks.
    Estimate approved by: Peter H. Fontaine, 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 of the regulatory impact which would be incurred in 
carrying out S. 1105. The bill is not a regulatory measure in 
the sense of imposing government-established standards or 
significant 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. 1105.

                        Executive Communications

    On July 27, 2001, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 1105. These 
reports had not been received at the time this report was 
filed. The testimony provided by the National Park Service at 
the Subcommittee hearing follows:

  Statement by John Reynolds, Regional Director, Pacific West Region, 
         National Park Service, U.S. Department of the Interior

    Mr. Chairman and members of the subcommittee, thank you for 
the opportunity to appear before you today to present the 
Department of the Interior's views on S. 1105, a bill to 
provide for the completion of the acquisition of State of 
Wyoming lands within the boundaries of Grand Teton National 
Park.
    The Department supports the legislation and thanks Senator 
Thomas and Senator Enzi for their continued interest and 
support of the National Park System and Grand Teton National 
Park.
    S. 1105 would authorize the Secretary of the Interior to 
acquire from the State of Wyoming 1,366.32 acres of land, and 
mineral interests on 39.59 acres of land, all within the 
current boundary of Grand Teton National Park in exchange for 
other federal lands and/or other federal assets of equal value. 
The state trust lands and mineral interests were among the non-
federal lands incorporated into the newly designated national 
park on September 14, 1950, bringing it to its present size 
(approximately 310,000 acres).
    The legislation also details the process under which the 
exchange would take place, including selection of an appraiser, 
approval of the value of the lands as well as a mechanism by 
which an appeal can be made in case the process fails.
    This acreage includes two full 640-acre sections. One 
section lies in the southeast area of the park known as 
Antelope Flats which is an open expanse of grasses and 
sagebrush that provides habitat for birds (including the 
declining sage grouse) and many large mammals (deer, antelope, 
elk, bison, coyotes, and wolves) and also provides the scenic 
foreground of the Teton Range. In the past, the state has 
leased the land for grazing.
    The second full section lies on the eastern boundary of the 
park, adjacent to the Bridger-Teton National Forest. The 
vegetation is a mix of grasses, sagebrush, and trees. The area 
provides excellent habitat for a variety of large and small 
animals. The state currently leases this section for grazing.
    The remaining acreage is located in the southwestern part 
of the park and is part of a 301-acre state parcel that 
straddles the park boundary. The Snake River runs through the 
parcel, which offers excellent riparian and wetland habitat. In 
the past, the state has leased the land for grazing.
    Finally, the state also owns the mineral interests on 
approximately 39 acres of undeveloped sagebrush flats in the 
center of the park, slightly to the east.
    Over the last fifty-one years, the State of Wyoming and 
Grand Teton National Park have worked together on a variety of 
issues including compatible land uses. The National Park 
Service (NPS) has been interested in the purchase of, or 
exchange for, these lands for a long time. The Park's land 
protection files contain more than thirty years of 
correspondence on how to appropriately compensate the state for 
bringing the lands under federal ownership.
    The draft 2001 Grand Tenton Land Protection Plan places fee 
acquisition of the state lands and mineral interest sixth on a 
list of fifteen priorities. Only some private lands that 
contain critical resources, or that are under intense 
development pressure in the high-stakes, Jackson Hole real 
estate market are listed higher. The NPS believes that federal 
fee acquisition, through either purchase or exchange, is the 
best alternative for the Park. A federal appraisal has not been 
completed on the State lands and there here not been any sales 
or exchanges similar to the one proposed, so it is difficult to 
estimate either the cost of purchasing the state lands or how 
much federal land or interest in federal land would be required 
to exchange for them. Funding to purchase these lands would be 
subject to NPS servicewide priorities and the availability of 
appropriations.
    The State of Wyoming is actively pursuing disposing a 
different State owned section near Teton Village. Teton Village 
is located near the southwest corner of Grand Tenton National 
Park and at the base of the Jackson Hole Ski Area. Currently, 
the State is negotiating the sale of the section for $30 
million. Because the state lands described in the bill are 
inside a national park and bordered by permanently protected 
lands, we understand that they may be viewed as more valuable.
    The NPS will not require additional funds or staff to bring 
these lands under federal management. The additional lands 
would increase the acreage of Grand Teton National Park by 
approximately one half of one percent. Currently the State 
owned lands are surrounded by national park lands and have no 
roads or other formal access, although hikers use the lands 
occasionally. If acquired, the State lands can be managed by 
the park with existing staff and with no additional resources.
    There is broad support for making these exchanges and that 
support has been expressed in a variety of ways, including a 
letter to Secretary Norton from Wyoming Governor Jim Geringer. 
Editorials in the Jackson Hole News and Casper Star call the 
proposal, ``a win for all sides''.
    In his May 16, 2001, letter Governor Jim Geringer wrote, 
``We would like to express to you our full support for the 
National Park Service acquiring our state trust lands located 
within Grand Tenton National Park * * * We ask your support in 
accomplishing this acquisition for the benefit of the people of 
Wyoming and the United States.''
    The Department believes that S. 1105 demonstrates the value 
of reaching a broad based consensus on potentially challenging 
resource management questions between local parties, the State, 
and the federal government.
    We appreciate the committee's interest in this legislation 
and the efforts of the senators from Wyoming. This concludes 
may remarks. I would be happy to respond to any questions that 
you may have.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the State, the Committee notes that no 
changes in existing law are made by the bill S. 1105, ordered 
reported.

                                
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