99–010

Calendar No. 175

107TH CONGRESS REPORT

1st Session " ! SENATE 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

REPORT

[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:

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(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 WyoVerDate 11-MAY-2000 13:41 Oct 03, 2001 Jkt 099010 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\TEMP\SR073.XXX pfrm07 PsN: SR073
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ming 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 the section-bysection 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.

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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

5

[By fiscal year, in millions of dollars]

2002 2003 2004 2005 2006

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

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[By fiscal year, in millions of dollars]

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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 exVerDate 11-MAY-2000 13:41 Oct 03, 2001 Jkt 099010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6969 E:\TEMP\SR073.XXX pfrm07 PsN: SR073
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change 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

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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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