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[Senate Report 108-137]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 261
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-137

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             COCONINO AND TONTO NATIONAL FORESTS IN ARIZONA

                                _______
                                

                August 26, 2003.--Ordered to be printed

      Filed under authority of the order of the Senate of July 29 
                    (legislative day, July 21), 2003

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 622]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 622) to provide for the exchange of 
certain lands in the Coconino and Tonto National Forests in 
Arizona, and for other purposes, having considered the same, 
reports favorably thereon with amendments and recommends that 
the Act, as amended, do pass.
    The amendments are as follows:
    1. On page 3, line 23, insert ``(43 U.S.C. 1701 et seq.)'' 
after ``1976''.
    2. On page 4, line 17, insert ``Land'' after ``Non-
Federal''.
    3. On page 5, line 6, insert ``and'' before ``17''.
    4. On page 5, line 17, strike ``of the'' and insert ``of''.
    5. On page 5, line 22, insert ``(43 U.S.C. 1716(b))'' after 
``FLPMA''.
    6. On page 7, line 3, strike ``a map'' and insert ``the 
map''.
    7. On page 10, line 1, insert ``National'' before ``Park''.
    8. On page 10, line 3, strike ``3(d)(1)'' and insert 
``3(b)(1)''.

                         PURPOSE OF THE MEASURE

    The purpose of H.R. 622 is to provide for the exchange of 
approximately 330 acres of National Forest System lands in the 
Coconino and Tonto National Forests in Arizona for 760 acres of 
private land.

                          BACKGROUND AND NEED

    This bill directs the Secretary of Agriculture to perform 
two land exchanges:
    The Montezuma Castle Land Exchange involves exchanging 222 
acres of Federal land for 157 acres of private land to protect 
riparian areas along Beaver Creek. This area is within the 
view-shed for the Montezuma National Monument. The exchange 
will also transfer Double Cabin Park to Federal ownership.
    The Diamond Point Land Exchange will transfer 108 acres of 
National Forest System land to the Diamond Point Summer Home 
Association in exchange for 495 acres of private land that will 
greatly increase the management efficiency and enhance the 
public access, use, and enjoyment of the surrounding National 
Forest System lands. The National Forest System lands have been 
occupied by the association's 45 residential cabins since the 
1950's the Tonto National Forest Plan specifically recommends 
conveyance of the land to the cabin owners.

                          LEGISLATIVE HISTORY

    H.R. 622 passed the House of Representatives on April 1, 
2003. The Subcommittee on Public Lands and Forests held a 
hearing on H.R. 622 on June 12, 2003. The Committee favorably 
reported H.R. 622, on a voice vote, with amendments, on July 
23, 2003. During the 107th Congress, a similar bill, H.R. 4919, 
was reported by the House Committee on Resources (H. Rept. 107-
674) and was passed by the House of Representatives on 
September 24, 2002.

                        COMMITTEE RECOMMENDATION

    The Committee on Energy and Natural Resources, in open 
business session on July 23, 2003, by a voice vote of a quorum 
present, recommends that the Senate pass H.R. 622, if amended 
as described herein.

                          COMMITTEE AMENDMENTS

    The Committee on Energy and Natural Resources adopted 
technical and clarifying amendments that corrected a number of 
citations and clarified that the National Park Service would be 
receiving some of the private lands to be acquired by the 
Federal government in the exchange.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 provides the findings and purpose of the bill.
    Section 2 provides definitions used in the bill.
    Section 3 directs the Secretary of Agriculture to convey, 
after receiving a binding offer from the Montezuma Castle Land 
Exchange Joint Venture (MCJV), 222 acres of Federal lands 
within the Tonto National Forest to MCJV. In exchange, the 
Secretary will receive 157 acres of private lands adjacent to 
the Montezuma National Monument and 108 acres of land in the 
Double Cabin Park in the Coconino National Forest.
    In addition, this section requires the exchange to be of 
equal value.
    Section 4 directs the Secretary of Agriculture to convey, 
after receiving a binding offer from the Diamond Point Summer 
Homes Association (DPSHA), approximately 108 acres of Federal 
lands on the Tonto National Forest in exchange for 495 acres of 
land known as the Diamond Point--Q ranch parcels.
    In addition, this section requires the exchange to be of 
equal value.
    Subsection (e) directs the Secretary of Agriculture, upon 
execution of the exchange to terminate all special use cabin 
permits on the Federal lands.
    Section 5 directs the Secretary to execute the exchanges no 
later than 6 months after MCJV and DPSHA have tendered their 
respective binding offers. It directs that the Secretary 
perform necessary land surveys and pre-exchange clearances, but 
that the cost of performing the work be paid by MCJV and DPSHA 
for their relevant properties, except for costs of such work 
that the Secretary is required, or elects, to have performed by 
employees of the Department of Agriculture.
    Subsection (c) requires the Secretary of Agriculture to 
convey the Federal lands subject to valid existing rights, 
including easements, rights-of-way, utility lines, and other 
valid encumbrances, as of the date of conveyance.
    Subsection (d) states that the lands acquired pursuant to 
this Act, become part of the Tonto or Coconino National Forest 
as appropriate. This section further states that the lands 
shall be administered in accordance with the laws, rules, and 
regulations generally applicable to the National Forest System, 
including being made available for livestock grazing if 
determined appropriate by the Secretary.
    Subsection (e) directs the Secretary of the Agriculture to 
transfer the administrative jurisdiction of the MCJV lands to 
the National Park Service to be permanently administered by the 
Secretary of the Interior as part of the Montezuma Castle 
National Monument.

                   COST AND BUDGETARY CONSIDERATIONS

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

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 31, 2003.
Hon. Pete V. Domenici,
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 H.R. 622, an act to 
provide for the exchange of certain lands in the Coconino and 
Tonto National Forests in Arizona, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                         Robert A. Sunshine
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 622--An act to provide for the exchange of certain lands in the 
        Coconino and Tonto National Forests in Arizona, and for other 
        purposes

    CBO estimates that enacting H.R. 622 would not 
significantly affect the federal budget. The act would affect 
direct spending (including offsetting receipts), but we 
estimate that any net change in direct spending would be 
insignificant. H.R. 622 contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act and would have no significant impact on the budgets 
of state, local, or tribal governments.
    H.R. 622 would authorize the Secretary of Agriculture to 
convey to two private parties about 330 acres of federal lands 
in Arizona in exchange for roughly 760 acres of other lands 
owned by those parties. If those lands are not equal in value, 
the Secretary could make or accept cash equalization payments. 
The act would authorize the Secretary to spend any receipts 
from such payments to acquire nonfederal lands in Arizona.
    CBO estimates that enactment of H.R. 622 would result in an 
insignificant increase in direct spending. According to the 
agency, the federal lands to be conveyed currently generate 
offsetting receipts (a credit against direct spending) from 
special use permits totaling less than $20,000 a year. Those 
receipts would be forgone if H.R. 622 is enacted. Based on 
information from the agency, we estimate that any cash 
equalization payments received under H.R. 622 would total less 
than $500,000. We also estimate that the agency would spend 
receipts from such payments in the same year they are received 
and that any resulting net change in direct spending would be 
negligible.
    The CBO staff contact for this estimate is Megan Carroll. 
This estimate was 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 H.R. 622. 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 H.R. 622, as ordered reported.

                        EXECUTIVE COMMUNICATIONS

    The Committee on Energy and Natural Resources has requested 
legislative reports from the Department of Agriculture and the 
Office of Management and Budget setting forth Executive agency 
recommendations on H.R. 622. These reports had not been 
received at the time the report on H.R. 622 was filed. When the 
reports become available, the Chairman will request that they 
be printed in the Congressional Record for the advice of the 
Senate. The testimony provided by the United States Forest 
Service at the Subcommittee hearing follows:

Statement of Tom Thompson, Deputy Chief, National Forest System, Forest 
                   Service, Department of Agriculture

    H.R. 622 directs the Secretary to exchange approximately 
108 acres of National Forest System land within the Tonto 
National Forest, northeast of Payson, Arizona and currently 
occupied by 45 residential cabins under special use permits, 
for 495 acres of non-federal land (known as the Q Ranch) within 
the Tonto National Forest, east of Young, Arizona. This 
exchange is identified in the bill as the Diamond Point/Q Ranch 
Land Exchange.
    The bill also directs the Secretary to exchange 
approximately 222 acres of National Forest System land within 
the Tonto National Forest adjacent to the Town of Payson near 
the municipal airport for roughly 157 acres of private land 
(owned by Montezuma Castle Land Exchange Joint Venture) 
adjacent to the Montezuma Castle National Monument and nearly 
108 acres of private land known as Double Cabin Park Lands. 
Both of the private parcels are within the Coconino National 
Forest boundary.
    H.R. 622 requires that the values of the non-Federal and 
Federal land to be exchanged be equal or equalized, as 
determined by the Secretary through an appraisal by a qualified 
appraiser and performed in conformance with the Uniform 
Appraisal Standards for Federal Land Acquisitions and Federal 
Land Policy and Management Act of 1976.
    The bill requires the Secretary to execute the Montezuma 
Castle and Diamond Point land exchanges within 6 months after 
receipt of an offer from the private landowners, unless the 
Secretary and the private landowners mutually agree to extend 
such deadline.
    The Department supports the concept of exchanging the 
National Forest System lands, which were identified in H.R. 
622; however, we would like to work with the Committee 
regarding the priorities for deleting Federal properties from 
the exchange to ensure that a manageable land ownership pattern 
remains.

                        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 Act, H.R. 622, as 
ordered reported.

                                
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