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[Senate Report 106-463]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 910
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     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

                              R E P O R T

                        [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 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 
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 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 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 long-term 
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 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 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.
                           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. Sec. 1131 et seq.

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.

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:
    (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 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-of-way, 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 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. Sec. 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. Sec. 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.

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.

                                  
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