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[Senate Report 114-196]
[From the U.S. Government Publishing Office]

                                                      Calendar No. 341
114th Congress    }                                       {     Report
                                 SENATE
 1st Session      }                                       {    114-196

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               CRAGS, COLORADO LAND EXCHANGE ACT OF 2015

                                _______
                                

               December 16, 2015.--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. 2223]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 2223) 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.
    The Broadmoor Hotel, Inc. has proposed a land exchange in 
order 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. 2223 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. 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 referred 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.

            COMMITTEE RECOMMENDATION AND TABULATION OF VOTES

    The Senate Committee on Energy and Natural Resources, in 
open business session on November 19, 2015, by a majority voice 
vote of a quorum present, recommends that the Senate pass H.R. 
2223.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 contains the short title, the ``Crags, Colorado 
Land Exchange Act of 2015.''
    Section 2 contains 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 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. Section 4(c) grants Broadmoor Hotel, Inc., a 
nonexclusive, perpetual access easement. Section 4(d) requires 
the road be maintained by Broadmoor Hotel, Inc., and provides 
that it may be improved, relocated, or otherwise altered if the 
Secretary and Broadmoor Hotel, Inc., mutually agree. Section 
4(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. Section 5(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 P.L. 90-171 (16 U.S.C. 484a). Any cash 
equalization payments received by the Secretary are to be used 
to acquire land or interests 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. Section 5(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 contains miscellaneous provisions relating to the 
lands to be exchanged. 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. Section 
6(b) specifies that the land acquired by the Secretary under 
this Act will become part of the Pike-San Isabel National 
Forest. Section 6(c) states that it is the intent of Congress 
that the land exchange be completed within one year. Section 
6(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 costs of this measure has been 
provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, December 7, 2015.
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 H.R. 2223, the Crags, 
Colorado Land Exchange Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jeff LaFalve.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 2223--Crags, Colorado Land Exchange Act of 2015

    H.R. 2223 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. 2223 would 
reduce offsetting receipts, which are treated as reductions in 
direct spending, by about $350,000 over the 2016-2025 period; 
therefore, pay-as-you-go procedures apply. Enacting H.R. 2223 
would not affect revenues.
    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 2026.
    Because H.R. 2223 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.
    H.R. 2223 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 September 9, 2015, CBO transmitted a cost estimate for 
H.R. 2223, the Crags, Colorado Land Exchange Act of 2015, as 
ordered reported by the House Committee on Natural Resources on 
July 9, 2015. The two versions of the legislation are similar, 
and the estimated costs are 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. 2223. 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. 2223, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    H.R. 2223, 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 USFS at the October 8, 2015 
Subcommittee on Public Lands, Forests, and Mining hearing on S. 
1941, the companion bill to H.R. 2223, follows:

 Statement of Glenn Casamassa, Associate Deputy Chief, National Forest 
      System, U.S. Forest Service, U.S. Department of Agriculture

    Mr. Chairman and members of the Subcommittee, thank you for 
the opportunity to present the views of the U.S. Department of 
Agriculture (USDA) regarding S. 1295, S. 1448, S. 1941, and S. 
1942.

    s. 1295, the ``arapaho national forest boundary adjustment act''

    S. 1295 would modify the boundary of the Arapaho National 
Forest in the State of Colorado to incorporate approximately 
92.95 acres of land currently outside the proclaimed National 
Forest boundary. All Federal land within the new boundary would 
be included in the Bowen Gulch Protection Area established 
under section 6 of the Colorado Wilderness Act of 1993. S. 1295 
requires the Secretary to obtain written permission from the 
owners of lots to include the lots in the boundary adjustment. 
Private land owners have provided letters of support.
    The Federal lands within the new boundary would be closed 
to motorized use by the public. S. 1295 allows for continued 
motorized access over historical routes by owners of non-
Federal land within the new boundary.
    The Department supports S. 1295. It would provide National 
Forest status for parcels previously purchased. It would also 
allow the Forest Service to use its existing land exchange 
authorities to acquire additional parcels from willing 
landowners within the new boundary. Completion of these 
acquisitions would ensure protection of the Rocky Mountain 
National Park view-shed and the resource values of the Bowen 
Gulch Protection Area. We would also like to work with the 
Committee to clarify that motorized use for administrative 
purposes within the new boundary area is allowed.

 s. 1448, the ``frank moore wild steelhead sanctuary designation act''

    The Department supports S. 1448, which establishes the 
``Frank Moore Wild Steelhead Sanctuary''. The area proposed for 
designation (Steamboat Creek) represents the major spawning 
tributary for wild steelhead in the North Umpqua River, and 
serves as an important sanctuary for conservation and long term 
persistence of this highly valued fisheries resource. 
Scientific studies and data indicate this area provides an 
important thermal refuge for wild steelhead production in the 
basin. Its designation and associated watershed restoration 
activities will aid in promoting a resilient landscape for wild 
steelhead conservation into the future in the face of changing 
climate.
    Frank Moore is a legendary fly angler, wild fish 
conservationist, and World War II veteran who stormed the 
beaches of Normandy, France in 1944 for the D-Day allied 
invasion. He survived and together with his wife of 70+ years, 
Jeanne, built and were the long-time proprietors of the world-
renowned Steamboat Inn along the North Umpqua River. In 2010, 
Frank Moore was inducted into the Fresh Water Fishing Hall of 
Fame, and is also featured in the recent, critically acclaimed 
documentary ``Mending the Line.''
    This designation is a tribute to Frank Moore and his 
service to our country in more ways than one. In a TED Talk 
last year (TEDxPortland, May 15, 2014), one of the viewers 
commented: ``Absolutely amazing . . . I am 19 and my generation 
needs role models like this man.''

       s. 1941, the ``crags, colorado land exchange act of 2015''

    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 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.

s. 1942, the ``elkhorn ranch and white river national forest conveyance 
                    act land exchange act of 2015''

    S. 1942 would direct the conveyance of a 148 acre parcel of 
National Forest System land to the Gordman-Leverich 
Partnership. The parcel is located within the White River 
National Forest.
    While the Administration has serious reservations about the 
use of Federal lands to compensate a private landowner, 
acknowledging the unusual circumstances in this specific case, 
the Department does not oppose S. 1942. The bill would resolve 
a long standing title issue associated with the property.
    A dependent resurvey, which is a survey dependent upon 
prior surveys of record, was completed in 1949, and established 
a property monument approximately 2,100 feet from the corner, 
relied upon by the original homesteaders. This meant that this 
parcel of national forest land had been managed as private 
land. 43 U.S.C. 772, enacted in 1909, provided for such 
resurveys and guaranteed that the bona fide rights of 
landowners would be protected.
    Because this land survey discrepancy only came to light 
within the past 15 years, and because the parcel has never been 
managed as National Forest, protection of the bona fide rights 
of the landowners is appropriate. Resolution of this title 
issue will end a long-standing title claim in an efficient, 
fair manner.
    This concludes my remarks. I would be happy to answer any 
questions. Thank you for the opportunity to testify.

                        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.

                                  [all]
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