79–010

Calendar No. 910

106TH CONGRESS REPORT

2d Session " ! SENATE 106–463

UTAH WEST DESERT LAND EXCHANGE ACT OF 2000

OCTOBER 2 (legislative day, SEPTEMBER 22), 2000.—Ordered to be printed

Mr. MURKOWSKI, from the Committee on Energy and Natural

Resources, submitted the following

REPORT

[To accompany H.R. 4579]

The Committee on Energy and Natural Resources, to which was

referred the Act (H.R. 4579) to provide for the exchange of certain

lands within the State of Utah, having considered the same, reports favorably thereon without amendment and recommends that

the Act do pass.

PURPOSE OF THE MEASURE

The purpose of H.R. 4579 is to ratify an agreement between the

State of Utah and the Department of the Interior under which the

State would transfer approximately 102,842 acres of State lands in

Utah’s West Desert area in exchange for approximately 106,058

acres of Federal lands.

BACKGROUND AND NEED

The Utah Enabling Act of 1894 granted four sections in each

township to the State. These lands were granted for the support of

the public schools and are referred to as school trust lands. The

lands are not contiguous to each other and, therefore, management

of the school trust lands by the State is often very difficult. In addition, since the school trust lands are interspersed with Federal

lands, the management of the Federal lands is complicated as well.

The Utah West Desert Land Exchange Act of 2000 seeks to resolve these problems by ratifying a land exchange agreement between the State of Utah and the Department of the Interior. The

lands that will be exchanged are located within the West Desert region of Utah. The Federal Government will receive State lands located within several wilderness study areas in the Bureau of Land

Management’s Utah Wilderness Inventory, and lands identified for

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acquisition in the Washington County Habitat Conservation Plan.

The State will receive Federal lands that are more appropriate to

carry out its mandate to generate revenue for Utah’s public schools.

Both the Secretary of the Interior and the Governor of Utah

agree that there is tremendous benefit to both parties to consolidate the land holdings of the Federal Government and the State

within Utah. Both agree the exchange would provide the State with

lands more efficiently managed to generate revenue for schools and

the Federal Government with lands more efficiently managed for

wilderness and other natural values. The Secretary of the Interior

and the Governor of Utah reached an agreement to complete this

exchange on May 30, 2000.

The legislation is needed because the proposed exchange does not

comply with the appraisal process and other procedural requirements of the Federal Land Policy and Management Act of 1976

(FLPMA). Specifically, questions were raised about the valuation

method to be used. Traditional appraisal approaches would make

it very difficult and expensive to complete the land exchange given

the vast acreage and scattered nature of the parcels involved and

the detailed processing and documentation requirements of standard appraisal techniques. The bill contains provisions intended to

provide a reasonable process for assessing the value of the lands

involved in the exchange and to ensure the lands transferred are

of approximately equal value.

The land exchange would not be possible without the legislation,

resulting in continued inefficiencies in management of both Federal

and State lands and creating unnecessary complexities for the

management of Wilderness Study Areas and other areas with wilderness and important natural qualities.

LEGISLATIVE HISTORY

H.R. 4579 passed the House of Representatives by voice vote on

July 11, 2000 and was referred to the Committee on Energy on

Natural Resources on July 12, 2000. Companion legislation, S.

2754 was introduced by Senators Bennett and Hatch on June 20,

2000. The Subcommittee on Forests and Public Lands Management

held a hearing on both bills on July 20, 2000. At the business meeting on September 20, 2000, the Committee on Energy and Natural

Resources ordered H.R. 4579 favorably reported without amendment.

COMMITTEE RECOMMENDATIONS

The Senate Committee on Energy and Natural Resources, in

open business session on September 20, 2000, by a voice vote of a

quorum present, recommends that the Senate pass H.R. 4579.

SECTION-BY-SECTION ANALYSIS

Section 1 cites the short title as the ‘‘Utah West Desert Land Exchange Act of 2000.’’

Section 2 provides the findings and purposes of the Act.

Section 3 defines key terms used in the Act.

Section 4 ratifies terms and conditions described in the Agreement for Exchange of Lands—West Desert State-Federal Land

Consolidation, entered into between the United States and the

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State of Utah, dated May 30, 2000. The Agreement is reprinted in

Appendix A.

Section 5(a) requires completion of all conveyances under sections 2 and 3 of the Agreement within 70 days of the enactment

of this Act.

Subsection 5(b) describes the maps depicting the land conveyances, and provides that the maps shall be available for public inspection and in case of any conflict between the maps and legal descriptions, the legal descriptions shall control.

Section 6 requires the United States and the State of Utah to

each bear its own cost in carrying out this Act.

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, September 25, 2000.

Hon. FRANK H. MURKOWSKI,

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. 4579, the Utah West

Desert Land Exchange Act of 2000.

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.

H.R. 4579—Utah West Desert Land Exchange Act of 2000

H.R. 4579 would ratify an agreement between the Department of

the Interior (DOI) and the state of Utah to exchange certain lands

and mineral interests in the west desert region of that state. CBO

estimates that enacting this legislation would have no significant

impact on the federal budget. Because the act could increase offsetting receipts (a form of direct spending), pay-as-you-go procedures

would apply, but we expect that any such impacts would be insignificant in each year.

Under, H.R. 4579, the Secretary of the Interior would convey to

the state of Utah about 106,000 acres of federal lands and mineral

interests in exchange for about 106,000 acres of state-owned lands

and mineral interests. Pursuant to the agreement ratified by the

legislation, the properties to be exchanged would be of approximately equal value. Under H.R. 4579, prior to any conveyance,

both parties would select independent appraisers to review the

value of the properties. If differences in value are found, the Secretary and the state would have to adjust the exchange accordingly.

Based on information from DOI, we expect that the land exchange would occur during fiscal year 2001. CBO estimates that

federal costs to complete the exchange would be less than $100,000

in that year. According to DOI, the lands to be conveyed by the

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Federal government currently generate no significant receipts, and

they are not expected to do so over the next 10 years. According

to DOI, the state lands that would be conveyed to the federal government under H.R. 4579 would be more valuable for grazing than

the federal lands to be exchanged. Hence, we expect that enacting

this legislation could result in a small increase in offsetting receipts from grazing permits and a subsequent increase in payments

to Utah for its share of those receipts. Based on Information from

DOI, however, we estimate that the net impact of any such changes

would total only a few thousand dollars a year.

H.R. 4579 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. The agreement that would be ratified by this legislation was entered into voluntarily by the state of Utah. All costs and benefits accruing to the

state would be the result of that agreement.

The CBO staff contact is Megan Carroll. This estimate was approved by Robert A. Sunshine, 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. 4579.

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. 4579, as ordered reported.

EXECUTIVE COMMUNICATIONS

On September 20, 2000, 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 views on the bill. These reports had not been received at

the time the report on H.R. 4579 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 Department of Interior at the

Subcommittee hearing follows:

STATEMENT OF SYLVIA BACA, ASSISTANT SECRETARY LAND

AND MINERALS MANAGEMENT, DEPARTMENT OF THE INTERIOR

Good morning, Mr. Chairman. Thank you for this opportunity to testify in support of S. 2754, the Utah West

Desert Land Exchange Act of 2000. This bill ratifies a recently negotiated land exchange agreement between the

Department of the Interior and the State of Utah that addresses long-standing issues of State-owned inholdings

within sensitive areas of public land ownership in the west

desert of Utah, including critical habitats and areas being

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considered for wilderness designation. The Administration

supports this legislation, and it is our hope that we can

work together to see S. 2754 quickly passed into law.

The Administration has been working over the past few

years with Governor Leavitt’s office in the long-overdue

process of addressing Utah’s inholding problems. One has

only to look at a land-ownership may for the State of Utah

to appreciate the immense challenge before the State and

the Federal governments. The Utah Enabling Act of 1894

designated four sections from each township, one-ninth of

the total land in the state, to finance public education. The

scattered nature of these lands has complicated their management ever since, both for the State of Utah and the

Federal government. Realignment of Utah’s school trust

lands took a dramatic step forward with legislation passed

in the 105th Congress (P.L. 105–335), the Utah Schools

and Lands Exchange Act of 1998, the largest state-federal

land exchange ever in the lower forty-eight states. This exchange consolidated federal ownership in the National

Parks, National Forests, Indian reservations, and the

Grand Staircase-Escalante National Monument. However,

most of the state remains with the checkerboard ownership pattern.

At the time of the negotiations that led to P.L. 105–335,

Governor Leavitt and Secretary Babbitt discussed whether

they should also seek agreement on some of the lands

within the boundaries of wilderness study areas. They decided that while this goal was worthy, it was too much to

consider at that time. They agreed, however, to begin tackling that problem next. S. 2754 represents a step in that

process by transferring public lands in Utah’s western

desert managed by the Bureau of Land Management

(BLM) which contain wilderness characteristics or critical

habitat for desert tortoise to the Federal government.

As was the case with the Utah Schools and Lands Exchange Act of 1998 (P.L. 105–335), the exchanges proposed

in S. 2754 were designed with environmental integrity in

mind. Trust lands chosen for transfer to BLM were properties located within existing Wilderness Study Areas, or

within lands identified by BLM’s Utah Wilderness Inventory as having wilderness characteristics or lands identified for acquisition in the Washington County Habitat

Conservation Plan. Consolidation of these lands with surrounding public lands managed by BLM is in keeping with

planning recommendations for maintaining them in a wild

state.

Public lands the State of Utah will be receiving were selected with the goal of equalizing values, while limiting environmental impacts and providing the State some longterm revenue potential. Recommended areas for transfer

avoided endangered species habitats, other significant

wildlife resources, archaeological resources, areas of critical environmental concern, wilderness study areas, or any

other lands known to raise significant environmental concerns. Properties to be acquired by Utah in this exchange

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are generally more amenable to economic development

than lands BLM would acquire, with one notable exception.

It took almost twelve months of deliberations for the

State of Utah and BLM negotiators to arrive at what is

now considered by both to be a fair agreement. Both parties initially established rough estimates of value for the

properties in question independently. Those estimates varied from each other by less than twenty-five percent. The

estimates were refined by evaluations of comparable sales

that identified a range of values acceptable to both parties.

The proposal was adjusted by adding or subtracting parcels until both parties felt comfortable that the exchange

was approximately equal and fair.

The majority of the lands on each side of the exchange

are of comparatively low market value. The lands the

State of Utah is receiving are generally higher value because they have better road access and closer proximity to

utilities and other improvements that would allow for future development. The State of Utah would also receive

title to several producing mineral areas, which are currently operating under unpatented mining claims subject

to the Mining Law of 1872. These lands are currently

earning no revenue for the Federal government but are of

higher value in state ownership because the state would

receive a revenue stream from the producing mines. To offset these higher value State-selected lands, while keeping

the overall package approximately equal in acreage and

value, the State offered additional state-owned lands within the boundaries of the Washington County Habitat Conservation Plan area for the protection of desert tortoise

habitat. The Conservation-Plan lands had high development potential within the city limits of St. George and

thus offset the higher value BLM lands the state is receiving elsewhere. These lands had been the subject of a recent appraisal because they are BLM’s highest priority for

acquisition from the State, and they were valued at their

appraised value.

The parties to the agreement are comfortable that this

exchange has taken all relevant considerations into account. The State of Utah will be receiving approximately

106,000 acres of public land from BLM in exchange for approximately 106,000 acres of land that BLM would like to

acquire. Complete titles will be exchanged. In the majority

of cases, this means entire estates will be conveyed, but

where BLM or the State only control the mineral estate,

only the mineral estate would be conveyed. While Congress will be the ultimate judge of value, the condition for

ratification that was incorporated into the House passed

version (H.R. 4579, Sec. 3, (c)) could be added to this bill

to provide extra assurance that the proposed trade is approximately equal value.

The Secretary and the Administration strongly support

this legislation as it is written. We believe it would be a

serious mistake to fail to seize the opportunity presented

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to us now to resolve the long standing issues and potential

management problems raised by these inholdings. I want

to thank Governor Leavitt, Brad Barber, John Harja and

Utah’s School and Institutional Trust Lands Administration for their hard work and commitment to completing

this exchange. As we see it, the school children of Utah,

Federal land users, taxpayers, and the environment will

all be winners when this bill is passed. I would be pleased

to answer any questions.

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. 4579, as ordered reported.

(9)

A P P E N D I X A

AGREEMENT FOR EXCHANGE OF LANDS WEST DESERT

STATE-FEDERAL LAND CONSOLIDATION

THIS AGREEMENT FOR EXCHANGE OF LANDS is entered

this 30th day of May, 2000 by and between the State of Utah and

the United States of America, Department of the Interior.

Purpose: The purpose of this instrument is to document an

agreement, subject to ratification by the Congress of the United

States, to exchange federal and state lands and interests therein,

of approximately equal value, located in the West Desert area of

the State of Utah.

SECTION 1. DEFINITIONS.

As used in this Agreement:

(A) BLM means the Bureau of Land Management of the Department of the Interior.

(B) Department means the Department of the Interior and its

subsidiary agencies, including the BLM.

(C) FLPMA means the Federal Land Policy and Management

Act, Act of October 21, 1976, Pub. L. 94–579, 90 Stat. 2743, as

amended.

(D) Mineral Interest means all right, title and interest in the

mineral estate, including but not limited to metals, ores, oil and

gas, carbon dioxide, helium, coal, lignite, peat, gas contained in or

taken from coal seams (coalbed methane), geothermal steam and

heat, rock, stone, gravel, sand and quartz, subject to valid existing

rights in third parties as of the date of this Agreement.

(E) State means the State of Utah and its subsidiary agencies,

including the Utah School and Institutional Trust Lands Administration.

(F) Secretary means the Secretary of the Interior.

(G) Trust Lands means all right, title and interest of the State

on the date this Agreement is executed in lands granted by the

United States pursuant to sections 6, 7, 8 and 12 of the Utah Enabling Act, ch. 138, 28 Stat. 107 (1894) to the State in trust, and

in other lands owned by the State on the date of this Agreement

which under State law must be managed for the benefit of the public school system or the institutions of the State which are designated by the Utah Enabling Act.

(H) Trust Lands Administration means the Utah School and Institutional Trust Lands Administration.

(I) Wilderness Act means the Wilderness Act of 1964, 16 U.S.C.

§ 1131 et seq.

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SECTION 2. STATE LANDS AND MINERAL INTERESTS TO BE CONVEYED TO THE UNITED STATES.

Subject to the terms and conditions of this Agreement, the State

shall convey to the United States all right, title and interest of the

State in the Trust Lands and Mineral interests generally depicted

on the map entitled ‘‘West Desert Exchange—Utah Trust Lands’’

dated May 19, 2000, and more specifically described in Exhibit ‘‘A’’

to this Agreement, which lands include the following Trust Lands

and Mineral Interests:

(A) Approximately 5760.84 acres of Trust Lands in the Silver Island Mountains area in Box Elder and Tooele Counties, Utah.

(B) Approximately 7827.60 acres of Mineral Interests in the

Cedar Mountains area in Tooele County, Utah.

(C) Approximately 12,325.46 acres of Trust Lands and 2560 acres

of additional Mineral Interests in the Deep Creek Mountains in

Tooele and Juab Counties, Utah.

(D) Approximately 7680.80 acres of Trust Lands in the Fish

Springs Mountains in Juab County, Utah.

(E) Approximately 3879.92 acres of Trust Lands in the Pilot Peak

Range in Box Elder County, Utah.

(F) Approximately 11,612.74 acres of Trust Lands in the Swasey

Mountain area in Juab and Millard Counties, Utah.

(G) Approximately 8241.07 acres of Trust Lands in the Notch

Peak area in Millard County, Utah.

(H) Approximately 3839.28 acres of Trust Lands in the Howell

Peak area in Millard County, Utah.

(I) Approximately 9906.64 acres of Trust Lands in the King Top

area in Millard County, Utah.

(J) Approximately 7959.04 acres of Trust Lands in the North

Wah Wah Mountains in Millard and Beaver Counties, Utah.

(K) Approximately 6910.61 acres of Trust Lands in the Central

Wah Wah Mountains in Beaver County, Utah.

(L) Approximately 3933.16 acres of Trust Lands in the Granite

Peak area in Beaver County, Utah.

(M) Approximately 2162.64 acres of Trust Lands in the Red

Mountain area in Washington County, Utah.

(N) Approximately 80 acres of Trust Lands and an additional 240

acres of Mineral Interests in the Deep Creek area in Washington

County, Utah.

(O) Approximately 1920 acres of Trust Lands in the Black Ridge

area in Washington County, Utah.

(P) Approximately 5608.50 acres of Trust Lands and an additional 560 acres of Mineral Interests in the Canaan Mountain area

in Kane and Washington Counties, Utah.

(Q) Approximately 960 acres of Trust Lands in the Cottonwood

Canyon area in Washington County, Utah.

(R) Approximately 640 acres of Trust Lands in the Red Butte

area in Washington County, Utah.

(S) Approximately 483.28 acres of Trust Lands within the Red

Cliffs Desert Reserve in Washington County, Utah.

(T) Approximately 1191.21 acres of Trust Lands wholly or partially within the exterior boundary of the Beaver Dam Wash Wilderness, in Washington County, Utah.

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SECTION 3. FEDERAL LANDS AND MINERAL INTERESTS TO BE CONVEYED TO THE STATE.

Subject to the terms and conditions of this Agreement, the Department shall convey to the State or its nominee all right, title

and interest of the United States in the BLM lands and Mineral

Lands generally depicted on the map entitled ‘‘West Desert Exchange—BLM Lands’’ dated May 19, 2000, and more specifically

described in Exhibit ‘‘B’’ to this Agreement, which lands include the

following BLM lands and Mineral Interests:

(A) I–80 Corridor tracts, comprising approximately 11,854.53

Acres of BLM land in Tooele County, Utah.

(B) St. John tract, comprising approximately 8678.14 acres of

BLM land in Tooele County, Utah.

(C) Tooele Army Depot No. 1 tract, comprising approximately

6880.63 acres of BLM land in Tooele County, Utah.

(D) Tintic Valley tracts, comprising approximately 14,253.51

acres of BLM land Juab County, Utah.

(E) Brush Wellman tracts, comprising approximately 6173.70

acres of BLM land in Juab County, Utah.

(F) Intermountain Power Plant tract, comprising approximately

17,625.97 acres of BLM land and an additional 940.61 acres of

BLM Mineral Interests in Millard County, Utah.

(G) Continental Lime tract, comprising approximately 1849.21

acres of BLM land in Millard County, Utah.

(H) Oak City tracts, comprising approximately 13,625.36 acres of

BLM land in Millard County, Utah.

(I) Milford tract, comprising approximately 22,123.32 acres of

BLM land in Beaver County, Utah.

(J) Beaver tract, comprising approximately 720 acres of BLM

land in Beaver County, Utah.

(K) Cedar City GC tract, comprising approximately 137.12 acres

of BLM land in Iron County, Utah.

(L) Cross Hollow Hills tract, comprising approximately 357.50

acres of BLM land in Iron County, Utah.

(M) Quichapa Creek tract, comprising approximately 743.76

acres of BLM land in Iron County, Utah.

(N) La Verkin tract, comprising approximately 315 acres of BLM

land in Washington County, Utah.

(O) Warner Valley tract, comprising approximately 600 acres of

BLM land in Washington County, Utah.

(P) Anderson Junction tract, comprising approximately 80 acres

of BLM land in Washington County, Utah.

(Q) Ivins tract, comprising approximately 40 acres of BLM land

in Washington County, Utah.

SECTION 4. LEGISLATION.

This agreement shall not be terminated before January 1, 2001.

Beginning on January 1, 2001, either party may, but is not obligated to, terminate this Agreement unless legislation shall have

been enacted by the United States authorizing and ratifying this

Agreement.

SECTION 5. CLOSING AND TRANSFER OF TITLE.

The following provisions shall govern conveyances of lands to be

exchanged pursuant to this Agreement:

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(A) All conveyances by the United States and the State shall be

subject to valid existing rights and interests outstanding in third

parties; provided, however, that all conveyances by the State to the

United States shall be subject only to those valid existing surface

and mineral leases, grazing permits and leases, easements, rights

of way, and other interests outstanding in third parties found acceptable under the Attorney General’s title regulations.

(B) All conveyances by the State shall be in a form acceptable to

the Secretary and in conformity with applicable title standards of

the Attorney General of the United States.

SECTION 6. MANAGEMENT OF LANDS ACQUIRED BY THE UNITED

STATES.

All lands or interests therein acquired by the United States pursuant to section 2 of this Agreement shall be administered by the

BLM and shall be subject to all applicable laws and regulations,

subject to valid existing rights. Notwithstanding the foregoing, if

any portion of the transferred lands are wholly or partially encompassed within a wilderness study area created pursuant to Section

603 of FLPMA or other authority if applicable, or within a wilderness area created by Congress under authority of the Wilderness

Act, then those lands shall be administered, subject to valid existing rights, pursuant to applicable statutes and regulations governing wilderness study areas or wilderness areas, respectively.

SECTION 7. MANAGEMENT OF LANDS ACQUIRED BY THE STATE.

All lands or interests therein acquired by the State pursuant to

section 3 of this Agreement shall be managed by the Trust Lands

Administration as Trust Lands pursuant to Title 53C of the Utah

Code.

SECTION 8. WATER RIGHTS.

All water rights, if any, held by the transferor that are appurtenant to the lands exchanged pursuant to this Agreement shall be

conveyed with the land. Nothing contained in this Agreement shall

impair valid existing water rights owned by private parties. Nothing in this Agreement shall expand or diminish Federal or State

jurisdiction, responsibilities, interests, or rights, in water resource

adjudication, allocation, development, or control.

SECTION 9. GRAZING PERMITS.

(A) On all lands acquired by the United States under section 2,

the Secretary shall honor, for the remainder of the applicable term,

all leases, permits and contracts for the grazing of domestic livestock, and the related terms and conditions of user agreements on

Trust Lands, including permitted stocking rates, grazing fee levels,

access rights, and ownership and use of range improvements. Upon

expiration of any lease or permit, the holder shall be entitled to a

preference right to renew such lease or permit to the extent provided by Federal law.

(B) In any instance where lands conveyed by the State under section 2 are used by a grazing permittee or lessee to meet the base

property requirements for a federal grazing permit or lease, such

lands shall continue to qualify as base properties for the remaining

term of the lease or permit and any renewal or extensions thereof.

(C) Title to, or any interest in, any range improvement held by

the United States or the State on any lands exchanges under this

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Agreement shall be transferred with such lands. Nothing in this

Agreement shall operate to divest title to, or any interest in, any

range improvement held by any person on such lands.

(D) On all lands acquired by the State under section 3, the State

shall continue, for the remainder of the applicable term, all leases,

permits and contracts for the grazing of domestic livestock, and the

related terms and conditions of user agreements on Federal lands,

including permitted stocking rates, grazing fee levels, access rights,

and ownership and use of range improvements. Such leases, permits and contracts shall be subject to compliance with terms and

conditions of the leases, permits or contracts, together with such

reasonable regulations as the State may prescribe concerning range

conditions. Upon expiration of any lease or permit, the holder shall

be entitled to a right of first refusal for the renewal of such lease

or permit under state law. Nothing in this Agreement shall prevent

the State from canceling any grazing permit when the underlying

land is sold or leased for non-grazing purposes by the State.

SECTION 10. SURFACE AGREEMENTS AND PERMITS.

(A) The United States shall assume all rights and duties of the

State under all State rights-of-way and special use agreements on

lands conveyed to the United States pursuant to this Agreement.

All such rights-of-way and agreements shall remain in effect for

the remainder of the applicable term after conveyance, except that

such rights-of-way and agreements shall be managed and enforced

by the United States. The rents, fees and other payments formerly

due to the State under the terms of such rights-of-way and agreements shall be payable to the holder to the United States.

(B) The State shall assume all rights and duties to the United

States under all Federal rights-of-way, surface use permits and

agreements on lands conveyed to the State pursuant to this Agreement. All such rights-of-way and agreements shall remain in effect

for the remainder of the applicable term after conveyance, except

that such rights-of-way, permits and agreements shall be managed

and enforced by the State. The rents, fees, and other payments formerly due to the United States under the terms of such rights-ofway, permits and agreements shall be payable by the holder to the

State.

(C) Nothing in this Act shall expand or diminish the rights of

any person or entity in any pre-existing rights-of-way established

under State or Federal law, and the conveyances to be made under

this Agreement shall be subject to such pre-existing rights-of-way,

if any, as valid existing rights.

SECTION 11. MINERAL LEASES AND LANDS.

In connection with mineral lands and interests conveyed pursuant to this Agreement:

(A) The State shall succeed the United States as lessor of all federal mineral leases on lands conveyed to the State pursuant to this

Agreement. All rights, terms, and agreements under such leases

(including authorizations for easements, facilities, operations, on

other appurtenances on such lands) shall remain in effect after

such conveyance except that such rights, terms, and agreements

shall be managed and enforced by the State. The rents, royalties,

fees and other payments formerly due the United States under

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such terms shall be payable by the Lessee to the State. The Leaseholder shall be entitled to Lease extension and renewal to the extent provided under Federal law, regulations, and the Lease Agreement.

(B) The Secretary shall succeed the State as lessor of all State

mineral leases on lands conveyed to the Secretary pursuant to this

Agreement. All rights, terms and agreements under such Lease (including authorizations for easements, facilities, operations, or other

appurtenances on such lands) shall remain in effect after such conveyance, except that such rights, terms and agreements shall be

managed and enforced by the Secretary. The rents, royalties, fees,

and other payments formerly due to the State under such terms

shall be payable by the Lessee to the United States.

(C) If any of the lands conveyed to the State under this Agreement are encumbered by mining claims, mill sites or tunnel sites

located under the Mining Law of 1872, 30 U.S.C. § 22 et seq., the

State will recognize the mining claimants’ and siteholders’ interests

in all valid mining claims and site locations and allow them to develop those minerals or use the sites so long as they comply with

applicable laws and regulations, including without limitation applicable state filing and claim maintenance requirements; provided,

however, that nothing herein shall preclude the State and any

claimant or siteholder from agreeing to the relinquishment of any

claim or site on mutually acceptable terms. The State shall further

adjudicate any mining claim or site validity issues in the appropriate state or Federal court according to the Mining Law of 1872,

as amended, and case law and administrative guidance interpreting that law. The BLM will provide notice to each mining

claimant and site holder that its mining claims or site locations: (1)

will be administered by the Trust Lands Administration and that

compliance with state filing and claim maintenance requirements

contained in Utah Code Ann. § 53C–2–104 will be required to avoid

abandonment of such claim under state law; (2) will no longer be

administered by the United States; (3) will no longer be subject to

Federal filing or fee requirements or BLM surface management requirements; and (4) that the Secretary no longer has jurisdiction to

adjudicate the validity of any mining claim or site.

SECTION 12. HAZARDOUS WASTE.

(A) Notwithstanding the transfer to the United States of the

lands and interests therein described in section 2, the State shall

continue to be responsible to the extent it is responsible on the date

of transfer of title for all environmental remediation, waste management and environmental compliance activities arising from

ownership and control of lands and interests therein pursuant to

applicable Federal and State laws with respect to conditions existing on the lands at the time of the transfer.

(B) Notwithstanding the transfer to the State of the lands and

interests therein described in section 3, the United States shall

continue to be responsible to the extent it is responsible on the date

of transfer of title for all environmental remediation, waste management and environmental compliance activities arising from the

ownership and control of lands and interests therein pursuant to

applicable Federal and State laws with respect to conditions existing on the lands at the time of the transfer.

15

SECTION 13. GENERAL PROVISIONS.

In addition to the foregoing, the Department and the State agree

as follows:

(A) Nothing in this Agreement shall prevent the parties from

mutually agreeing to the correction of technical errors and omissions in maps and legal descriptions contained or incorporated

herein.

(B) The parties agree to use reasonable diligence and efforts to

fulfill their respective obligations under this Agreement, at all

times that this Agreement is in effect.

IN TESTIMONY WHEREOF, we have hereunto set our hands

and caused to be affixed the Great Seal of the State of Utah on the

date first above written.

BRUCE BABBITT,

Secretary of the Interior,

Department of the Interior.

MICHAEL O. LEAVITT,

Governor, State of Utah.

Æ