69–010 

Calendar No. 69 

115TH CONGRESS REPORT " ! SENATE 1st Session 115–56 

CRAGS, COLORADO LAND EXCHANGE ACT OF 2017 

MAY 9, 2017.—Ordered to be printed 

Ms. MURKOWSKI, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany H.R. 618] 

[Including cost estimate from Congressional Budget Office] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (H.R. 618) to authorize, direct, expedite, and facilitate a land exchange in El Paso and Teller Counties, Colorado, and 

for other purposes, having considered the same, reports favorably 

thereon without amendment and recommends that the bill do pass. 

PURPOSE

To authorize, direct, expedite, and facilitate a land exchange in 

El Paso and Teller Counties, Colorado. 

BACKGROUND AND NEED

Emerald Valley Ranch has a colorful history, with improvements 

at the site dating back nearly 100 years. Spencer Penrose developed many of the existing buildings at Emerald Valley after he acquired the original cabin in 1923. After Penrose’s death, the buildings were operated as a camp by the YMCA, Boys Scouts, and 

other non-profit groups. Starting in the 1970s, the buildings were 

operated by the Turley Family as the Emerald Valley Guest Ranch. 

Broadmoor Hotel, Inc., acquired the buildings from the Turley 

Family in 2012. In October 2012, the U.S. Forest Service (USFS) 

issued a 20-year special use permit to operate and maintain Emerald Valley Ranch as a guest ranch. Since issuance of the special 

use permit, Broadmoor Hotel, Inc., has invested in significant upgrades and improvements throughout the resort. 

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The Broadmoor Hotel, Inc., has proposed a land exchange to own 

the USFS land encumbered by the ranch in order to guarantee its 

ability to operate, maintain, and continue to invest in the resort, 

rather than continuing to renew its special use permit. These 

USFS lands have lost their national forest character. In exchange, 

the Broadmoor Hotel, Inc., has acquired the 320-acre Crags property and a perpetual public access easement for the lower portion 

of the Barr Trail that it would convey to the USFS. 

The land to be acquired by the USFS is a high value inholding 

in the Pike National Forest with views of the Pikes Peak Massif. 

The property provides several opportunities to connect USFS trails 

emanating from the Crags Campground with trails in the 

Horsethief Park/Putney Gulch area. The property has been the top 

acquisition priority for the Pikes Peak Ranger District for several 

years. 

The trailhead for the Barr Trail is located on property owned by 

the City of Manitou Springs. After climbing a series of switchbacks, 

the trail enters property owned by the Manitou and Pikes Peak 

(M&PP) Railway Company, a sister company of Broadmoor Hotel, 

Inc. Historically, the M&PP Railway Company granted term easements to the USFS to provide legal public access along the segment 

of the Barr Trail. Although there is currently no easement in place 

on this segment, the M&PP Railway Company is presently allowing public access on the trail. 

H.R. 618 facilitates an equal value land exchange. If the value 

of the non-Federal parcel exceeds the value of the Federal parcel 

and perpetual access easement, Broadmoor Hotel, Inc., would donate the excess value to the United States. This land exchange 

would provide increased recreational opportunities for the public on 

the Pike National Forest, secure perpetual legal access to the Barr 

Trail, eliminate permanent encumbrances on USFS lands and liability to the United States associated with buildings, a water supply system, and two dams at Emerald Valley Ranch, and streamline USFS management responsibilities by eliminating the need to 

oversee the resort special use permit at Emerald Valley Ranch. 

LEGISLATIVE HISTORY

H.R. 618 was introduced in the House of Representatives by Representative Lamborn on January 24, 2017 and was referred to the 

House Natural Resources Committee. The House of Representatives passed H.R. 618 under suspension of the rules by a voice vote 

on February 6, 2017. H.R. 618 was received in the Senate and referred to the Committee on Energy and Natural Resources on February 7, 2017. 

An identical bill, S. 280, was introduced by Senators Gardner 

and Bennet on February 2, 2017 and referred to the Committee on 

Energy and Natural Resources. 

During the 114th Congress, a similar measure, H.R. 2223, was 

introduced in the House of Representatives by Representatives 

Lamborn and Polis on May 1, 2015. On June 16, 2015, the House 

Natural Resources Subcommittee on Federal Lands held a hearing 

on H.R. 2223, and the Natural Resources Committee ordered the 

bill reported on July 9, 2015. The House of Representatives passed 

H.R. 2223 under suspension of the rules by a voice vote on September 16, 2015. H.R. 2223 was received in the Senate and reVerDate Sep 11 2014 05:25 May 10, 2017 Jkt 069010 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\SR056.XXX SR056
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ferred to the Committee on Energy and Natural Resources on September 17, 2015. 

An identical companion bill to H.R. 2223, S. 1941, was introduced by Senators Gardner and Bennet on August 5, 2015. The 

Subcommittee on Public Lands, Forests, and Mining held a hearing 

on both H.R. 2223 and S. 1941 on October 8, 2015. On November 

19, 2015, the Committee on Energy and Natural Resources met in 

open business session and ordered both H.R. 2223 and S. 1941 favorably reported without amendment. 

The measure was included in S. Amendment 3234, which the 

Senate agreed to on April 19, 2016, as an amendment to S. 2012, 

the Energy Policy Modernization Act of 2016, which the Senate 

passed, as amended, on April 20, 2016. 

The Senate Committee on Energy and Natural Resources met in 

open business session on March 30, 2017, and ordered both H.R. 

618 and S. 280 favorably reported without amendment. 

COMMITTEE RECOMMENDATION

The Senate Committee on Energy and Natural Resources, in 

open business session on March 30, 2017, by a majority voice vote 

of a quorum present, recommends that the Senate pass H.R. 618. 

SECTION-BY-SECTION ANALYSIS

Section 1 contains the short title, the ‘‘Crags, Colorado Land Exchange Act of 2017.’’ 

Section 2 states that the purpose of the bill, to authorize, direct, 

expedite, and facilitate the land exchange and to promote enhanced 

public outdoor recreational and natural resource conservation opportunities in Pike National Forest. 

Section 3 contains definitions. 

Section 4(a) directs the Secretary of Agriculture (Secretary) to accept the parcel of non-Federal land if Broadmoor Hotel, Inc., offers 

to convey it to the U.S. Government and in return, to simultaneously convey the Federal land at the Emerald Valley Ranch to 

Broadmoor Hotel, Inc. 

Subsection (b) requires that the title to the conveyed non-Federal 

land must be acceptable to the Secretary and meet applicable title 

approval standards. 

Subsection (c) grants Broadmoor Hotel, Inc., a nonexclusive, perpetual access easement, requires Forest Service Road 371 be maintained by Broadmoor Hotel, Inc., and allow public use in accordance with the Forest Service travel management plan. 

Subsection (d) provides that USFS Road 371 may be improved, 

relocated, or otherwise altered if the Secretary and Broadmoor 

Hotel, Inc., mutually agree. 

Subsection (e) requires Broadmoor Hotel, Inc., to pay for all land 

survey, appraisal, and other costs associated with the exchange. 

Section 5(a) requires the Secretary to conduct appraisals of the 

parcels of land. 

Subsection (b) requires the land exchange to be of equal value. 

If the value of the Federal land exceeds the value of the non-Federal land, Broadmoor Hotel, Inc., must make a cash equalization 

payment to be deposited into the fund established under Public 

Law 90–171 (16 U.S.C. 484a). Any cash equalization payments received by the Secretary are to be used to acquire land or interests 

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in land in Region 2 of the USFS. If the value of the non-Federal 

land exceeds the value of the Federal land, the surplus value of the 

non-Federal land will be considered a donation by Broadmoor 

Hotel, Inc., to the U.S. Government. 

Subsection (c) directs that the appraisals should not take into account the special use permit at Emerald Valley Ranch or the Barr 

Trail easement when determining the value of the parcels. 

Section 6(a) permanently withdraws all the lands acquired by the 

Secretary under this Act from all forms of appropriation and disposal under the public land laws, including the mining and mineral 

leasing laws and the Geothermal Steam Act of 1930 (30 U.S.C. 

1001 et seq.). If there are any public land orders that withdraw the 

Federal land from appropriation or disposal, they are revoked to 

the extent necessary to permit disposal of the Federal land to 

Broadmoor Hotel, Inc. All Federal land authorized to be exchanged 

under this Act, if not already withdrawn from appropriation or disposal under public land laws upon enactment of this Act, are withdrawn, subject to valid existing rights, until the date of conveyance 

of the Federal land to Broadmoor Hotel, Inc. 

Subsection (b) specifies that the land acquired by the Secretary 

under this Act will become part of the Pike-San Isabel National 

Forest. 

Subsection (c) states that it is the intent of Congress that the 

land exchange be completed within one year. 

Subsection (d) allows the Secretary and Broadmoor Hotel, Inc., to 

make minor adjustments to the maps, descriptions, or acreage if 

both parties agree. 

COST AND BUDGETARY CONSIDERATIONS

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

Crags, Colorado Land Exchange Act of 2017 

H.R. 618 would require the Forest Service to exchange, at the request of a private entity, 82 acres of federal lands in the Pike National Forest for 320 acres of private lands in that forest. Because 

CBO expects that the parcels would have a similar value per acre, 

we estimate that the total value of the private lands would exceed 

the value of the affected federal lands. Under the act, the federal 

government would not be required to compensate the private entity 

to make up for that difference. However, CBO expects that the Forest Service will receive annual payments of a little more than 

$30,000 for a special use permit on the affected federal parcel. 

On that basis, CBO estimates that enacting H.R. 618 would reduce offsetting receipts, which are treated as reductions in direct 

spending, by about $350,000 over the 2017–2027 period; therefore, 

pay-as-you-go procedures apply. Enacting H.R. 618 would not affect 

revenues. 

Because H.R. 618 would require the private entity to pay any administrative costs associated with the land exchange and CBO expects that any updates to maps or signage would be completed in 

conjunction with scheduled reprinting and routine maintenance, we 

estimate that implementing the act would not affect discretionary 

spending. 

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CBO estimates that enacting the legislation would not increase net direct spending or on-budget deficits by more than $5 billion 

in any of the four consecutive 10-year periods beginning in 2028. 

H.R. 618 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

The act would authorize a land exchange between the federal government and a private business, which would have a small incidental effect on property taxes collected by local governments in 

Colorado. That effect, however, would not result from an intergovernmental mandate as defined in UMRA. 

On April 7, 2017, CBO transmitted a cost estimate for S. 280, the 

Crags, Colorado Land Exchange Act, as ordered reported by the 

Senate Committee on Energy and Natural Resources on March 30, 

2017. H.R. 618 and S. 280 are similar and CBO’s cost estimate for 

each piece of legislation is the same. 

The CBO staff contacts for this estimate are Jeff LaFave (for federal costs) and Jon Sperl (for intergovernmental mandates). This 

estimate was approved by H. Samuel Papenfuss, 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. 618. 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. 618, as ordered reported. 

CONGRESSIONALLY DIRECTED SPENDING

H.R. 618, as ordered reported, does not contain any congressionally directed spending items, limited tax benefits, or limited tariff 

benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

Because H.R. 618 is similar to legislation considered by the Committee in the 114th Congress, the Committee did not request Executive Agency views. The testimony provided by the U.S. Forest 

Service at the hearing before the Subcommittee on Public Lands, 

Forests, and Mining on October 8, 2015, follows: 

STATEMENT OF GLEN CASAMASSA, ASSOCIATE DEPUTY

CHIEF, NATIONAL FOREST SYSTEM, U.S. FOREST SERVICE, 

U.S. DEPARTMENT OF AGRICULTURE

S. 1941 would require a land exchange between the 

United States and Broadmoor Hotel, Inc. (BHI). The 

United States would convey an 83 acre tract of National 

Forest System Land and a non-exclusive perpetual easement for access in exchange for a 320 acre parcel and a 

permanent trail easement for a section of the Barr trail 

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owned by BHI. Both exchange parcels are located within 

the Pike National Forest. 

The Department generally supports S. 1941 but would 

like to work with the committee on concerns with the bill. 

For example, we would like to help develop language that 

would ensure the northern boundary of the land conveyed 

is located to provide adequate space for Forest Service 

road maintenance and administration. 

The National Forest parcel that would be conveyed in 

the exchange has long been encumbered with significant 

resort improvements managed under special use authorization. In return for this parcel, the United States would 

receive an isolated inholding that the Forest Service has 

placed a high priority on acquiring. The inholding has significant recreational values and provides additional access 

for the public to the National Forest. 

As a result, the exchange will eliminate potentially significant development in a sensitive area in exchange for 

conveying Federal land where development impacts have 

already occurred. In addition, The United States would secure legal access on a segment of the very popular Barr 

trail. This trail provides an important recreational access 

to the Pike National Forest. 

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 bill as ordered reported. 

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