59–010 

Calendar No. 595 

114TH CONGRESS REPORT " ! SENATE 2d Session 114–322 

CONVEYANCE OF THE REVERSIONARY INTERESTS OF 

THE UNITED STATES IN AND TO CERTAIN NON FEDERAL LAND IN GLENNALLEN, ALASKA 

SEPTEMBER 6, 2016.—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 S. 2018] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 2018) to convey, without consideration, the reversionary interests of the United States in and to certain non-Federal land in Glennallen, Alaska, having considered the same, reports favorably thereon without amendment and recommends that 

the bill do pass. 

PURPOSE

The purpose of S. 2018 is to convey, without consideration, the 

reversionary interests of the United States in and to certain nonFederal land in Glennallen, Alaska. 

BACKGROUND AND NEED

In 1961, the Secretary of the Interior patented 210 acres of land 

in Glennallen, Alaska, to the Central Alaska Mission (patent number 1221491) under the Recreation and Public Purposes Act of 1926 

(R&PP Act, 43 U.S.C. 869 et seq.). In accordance with the Act, the 

patent contains a reversionary clause, which provides that title to 

the land will revert to the United States if the tract is used for a 

non-public purpose. The Central Alaska Mission established a religious college, the Alaska Bible College, as well as the region’s only 

radio station and the town’s only hospital, on the tract. The Central Alaska Mission subsequently transferred the patents to SEND 

North, another nonprofit organization, under the provisions of the 

Act. 

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SEND North now wishes to sell the land but cannot find a qualified buyer under the R&PP Act because of the reversionary clause 

in the patent. It considered purchasing the reversionary interest 

from the United States, but the fair market value of the tract has 

been appraised at $210,000, which is more than the nonprofit organization can afford to pay. 

Legislation is needed to convey the reversionary interest of the 

United States to the landowner without consideration. The land is 

located in the business center of Glennallen, Alaska. It is not suitable for a park. It is not needed for any federal purpose or facility, 

given its location in a remote and sparsely populated area of east 

central Alaska. Further, being inside the Glennallen city limits and 

under local ordinance, the land is prohibited from reverting to its 

natural vegetative state. 

LEGISLATIVE HISTORY

Senator Murkowski introduced S. 2018 on September 9, 2015. 

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

hearing to consider S. 2018 on April 21, 2016. 

The Committee on Energy and Natural Resources met in open 

business session on July 13, 2016, and ordered S. 2018 favorably 

reported. 

COMMITTEE RECOMMENDATION

The Senate Committee on Energy and Natural Resources, in 

open business session on July 13, 2016, by a majority voice vote of 

a quorum present, recommends that the Senate pass S. 2018. 

SECTION-BY-SECTION ANALYSIS

Section 1. Conveyance of reversionary interest, Glennallen, Alaska 

Section 1 provides definitions and directs the Secretary to convey 

the reversionary interests of the United States in and to the nonfederal land in Glenallen, Alaska to the landowner without consideration. This section further directs the Secretary to provide exact 

legal descriptions of the non-federal lands and assigns all costs associated with the conveyance to the landowner. 

COST AND BUDGETARY CONSIDERATIONS

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

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, August 25, 2016. 

Hon. LISA MURKOWSKI, 

Chairman, Committee on Energy and Natural Resources, 

U.S. Senate, Washington, DC. 

DEAR MADAM CHAIRMAN: The Congressional Budget Office has 

prepared the enclosed cost estimate for S. 2018, a bill to convey, 

without consideration, the reversionary interests of the United 

States in and to certain non-Federal land in Glennallen, Alaska. 

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If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Jeff LaFave. 

Sincerely, 

KEITH HALL. 

Enclosure. 

S. 2018—A bill to convey, without consideration, the reversionary 

interests of the United States in and to certain non-Federal 

land in Glennallen, Alaska 

S. 2018 would direct the Bureau of Land Management (BLM) to 

convey, without consideration, a reversionary interest in 210 acres 

of land in Glennallen, Alaska to SEND North, a non-profit organization. Based on an analysis of information provided by BLM, CBO 

estimates that enacting the bill would reduce offsetting receipts, 

which would have the effect of increasing direct spending, by 

$105,000 over the 2017–2026 period; therefore, pay-as-you-go procedures apply. Enacting the bill would not affect revenues. 

CBO estimates that enacting the legislation would not increase 

net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027. 

In 1961, BLM conveyed 210 acres of federal land to a non-profit 

organization under the condition that the land be used for providing education, medical, and religious services. If, at any time, 

the affected lands are used for any other purpose, they would revert back to federal ownership. The bill would eliminate BLM’s reversionary interest in the property allowing SEND North, the organization currently in possession of those lands, to use or dispose of 

the property without restrictions. 

In 2011, SEND North entered into negotiations to purchase 

BLM’s reversionary interest in the affected lands. A subsequent appraisal determined that the fair market value of the property was 

$210,000. On April 7, 2016, BLM published a Notice of Realty Action in the Federal Register indicating the agency’s desire to conduct a non-competitive sale of the reversionary interest in the property to Send North. Any proceeds from that sale will be deposited 

in the U.S. Treasury as offsetting receipts. Under the bill, the reversionary interest would be conveyed to SEND North without consideration. 

Because the BLM decision to sell the reversionary interest to 

SEND North has not been finalized and no sales agreement has 

been reached between the parties, it is uncertain whether the sale 

will be completed under current law. However, based on the parties’ mutual interest in consummating the sale, CBO expects that 

there is a 50 percent likelihood that a sale will occur within the 

next 10 years. Thus, after accounting for that uncertainty, CBO estimates that enacting the bill would reduce offsetting receipts by 

$105,000 over the 2017–2026 period. 

S. 2018 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Jeff LaFave. The estimate was approved by Theresa Gullo, Assistant Director for Budget 

Analysis. 

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REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 2018. 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 S. 2018, as ordered reported. 

CONGRESSIONALLY DIRECTED SPENDING

S. 2018, 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

The testimony provided by the Bureau of Land Management at 

the April 21, 2016, Subcommittee on Public Lands, Forests, and 

Mining hearing on S. 2018 follows: 

STATEMENT OF MIKE POOL, ACTING DEPUTY DIRECTOR, BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR

Thank you for inviting the Department of the Interior to 

testify on S. 2018, which provides for the conveyance of the 

Federal government’s reversionary interest in certain land 

located in the City of Glennallen, Alaska, to SEND North, 

a not-for-profit organization located in Anchorage, Alaska. 

While the Department supports the goal of conveying the 

reversionary interest to SEND North, we cannot support 

S. 2018 in its current form. The Department could support 

S. 2018 if it were amended to ensure the payment of fair 

market value for the conveyance of the reversionary interest. 

BACKGROUND

The Bureau of Land Management (BLM) regularly 

transfers public land to local governments and nonprofits 

for a variety of public purposes. These transfers are typically accomplished under the provisions of the Recreation 

and Public Purposes Act (R&PP) or through direction supplied through specific Acts of Congress. The R&PP Act is 

a statute frequently used by the BLM to help states, local 

communities, and nonprofit organizations obtain lands at 

no or low cost for important public purposes. Examples include parks, schools, hospitals and other health facilities, 

fire and law enforcement facilities, courthouses, social 

services facilities, and public works. Because these lands 

are transferred at far below market value, R&PP conveyances and many similarly legislated conveyances include a 

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reversionary clause requiring that lands be used for public 

purposes or revert to the Federal government. Over the 

years, the BLM has addressed many requests to release 

the Federal government’s reversionary interest in such 

lands and has consistently required the payment of fair 

market value for the reversionary interest. 

In 1961, a 210-acre parcel of Federal land was patented 

to the Central Alaska Mission under the authority of the 

R&PP Act. The Mission came to Glennallen, Alaska, to assist the Glennallen community and the surrounding area 

with not-for-profit educational, medical, and religious services. The patent was subsequently transferred under the 

provisions of the R&PP Act to the non-profit organization 

SEND North. 

The BLM is currently considering a request by SEND 

North to purchase at fair market value the Federal government’s reversionary interest in the 210 acres patented 

in 1961. On April 7, 2016, the BLM published a Notice of 

Realty Action in the Federal Register providing an opportunity to comment on the proposed sale. The public comment period for this action will remain open until May 9, 

2016. The proposed non-competitive direct sale is consistent with the BLM’s East Alaska Resource Management 

Plan approved in September 2007. The BLM understands 

that after acquiring the reversionary interest, SEND 

North would like to sell or transfer the parcels for commercial development without threat of reversion for breach of 

patent conditions. 

S. 2018

S. 2018 would convey, without consideration, the reversionary interest of the United States in the land identified 

in the bill to SEND North, and requires the organization 

to pay all costs associated with the conveyance. 

The BLM supports the goal of conveying the reversionary interest in this land to SEND North, but cannot 

support S. 2018 as currently written. The BLM recommends amending the legislation to ensure the payment 

of fair market value for the reversionary interest. 

CONCLUSION

Thank you for the opportunity to testify. We look forward to working with the sponsor and the Committee to 

address the needs of the landowner and the city of 

Glennallen. 

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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