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[Senate Report 109-313]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 556
109th Congress                                                   Report
                                 SENATE
 2d Session                                                     109-313

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               HOLLOMAN AIR FORCE BASE LAND EXCHANGE ACT

                                _______
                                

                 July 31, 2006.--Ordered to be printed

                                _______
                                

   Mr. Domenici, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 486]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 486) to provide for a land exchange 
involving private land and Bureau of Land Management land in 
the vicinity of Holloman Air Force Base, New Mexico, for the 
purpose of removing private land from the required safety zone 
surrounding munitions storage bunkers at Holloman Air Force 
Base, having considered the same, reports favorably thereon 
with an amendment and recommends that the Act, as amended, do 
pass.
    The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Holloman Air Force Base Land Exchange 
Act''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Federal land.--The term ``Federal land'' means the land 
        administered by the Secretary consisting of a total of 
        approximately 320 acres, as depicted on the map.
          (2) Map.--The term ``map'' means the map entitled ``Holloman 
        AFB Land Exchange'' and dated May 19, 2006.
          (3) Non-federal land.--The term ``non-Federal land'' means 
        the parcel consisting of a total of approximately 241 acres of 
        land, as depicted on the map, that is--
                  (A) contiguous to Holloman Air Force Base, New 
                Mexico; and
                  (B) located within the required safety zone 
                surrounding munitions storage bunkers at the 
                installation.
          (4) Owner.--The term ``owner'' means an owner that is able to 
        convey to the United States clear title to the non-Federal 
        land.
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.

SEC. 3. LAND EXCHANGE.

  (a) In General.--If the owner submits to the Secretary a request to 
exchange the non-Federal land for the Federal land or a portion of the 
Federal land, the Secretary shall convey to the owner all right, title, 
and interest of the United States in and to the Federal land or the 
applicable portion of the Federal land.
  (b) Consideration.--As consideration for the conveyance of the 
Federal land under subsection (a), the owner shall convey to the United 
States all right, title, and interest of the owner in and to the non-
Federal land.
  (c) Addition to Military Reservation.--On acquisition of the non-
Federal land by the Secretary, the Secretary shall--
          (1) assume jurisdiction over the non-Federal land; and
          (2) amend the withdrawal for the Holloman Air Force Base to 
        include the non-Federal land.
  (d) Interests Included in Exchange.--Subject to valid existing 
rights, the land exchange under this Act shall include the conveyance 
of all surface, subsurface, mineral, and water rights to the Federal 
land and non-Federal land exchanged.
  (e) Compliance With Federal Land Policy and Management Act.--
          (1) In general.--Except as provided in paragraph (2), the 
        Secretary shall carry out the land exchange under this section 
        in accordance with section 206 of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1716).
          (2) Cash equalization.--Notwithstanding section 206(b) of the 
        Federal Land Policy and Management Act of 1976 (43 U.S.C. 
        1716(b)), a cash equalization payment may be made in excess of 
        25 percent of the appraised value of the Federal land.
  (f) No Amendment to Management Plan Required.--The exchange of 
Federal land and non-Federal land shall not require an amendment to the 
White Sands Resource Management Plan.
  (g) Disposition and Use of Proceeds.--
          (1) Disposition of proceeds.--The Secretary shall deposit any 
        cash equalization payments received under this Act in the 
        Federal Land Disposal Account established under section 206(a) 
        of the Federal Land Transaction Facilitation Act (43 U.S.C. 
        2305(a)).
          (2) Use of proceeds.--Amounts deposited under paragraph (1) 
        shall be expended in accordance with section 206(c) of the 
        Federal Land Transaction Facilitation Act (43 U.S.C. 2305(c)).
  (h) Additional Terms and Conditions.--The Secretary may require any 
additional terms and conditions for the land exchange that the 
Secretary considers to be appropriate to protect the interests of the 
United States.

                         PURPOSE OF THE MEASURE

    The purpose of H.R. 486 is to provide for a land exchange 
involving private land and Bureau of Land Management land in 
the vicinity of Holloman Air Force Base, New Mexico, for the 
purpose of removing private land from the required safety zone 
surrounding munitions storage bunkers at Holloman Air Force 
Base.

                          BACKGROUND AND NEED

    In the mid 1990's, Holloman Air Force Base (Holloman) began 
increased training operations with the German Air Force. Those 
operations necessitated increased use of a munitions storage 
area (``MSA'') and triggered a new safety review of the area in 
1997. That review resulted in a recommendation that the 
explosive clear zone (``ECZ'') surrounding the MSA be expanded. 
Since this zone encroached on neighboring private property, 
Holloman needed to secure restrictive easements or ownership of 
the lands in order to meet their safety regulations with regard 
to the MSA.
    Without an explosive clear zone, Holloman is unable to use 
the entire designed capacity of the bunker. This directly 
affects the ability of Holloman Air Force Base to meet fully 
its mission.
    Though Holloman was able to negotiate several restrictive 
easements on private lands within the ECZ, they were unable to 
come to agreement on the lands identified in this bill. This 
bill resolves the issue to the satisfaction of both parties and 
allows Holloman to secure the full safety zone required.

                          LEGISLATIVE HISTORY

    H.R. 486 was introduced by Representative Pearce on 
February 1, 2005. The House of Representatives passed H.R. 486 
by a voice vote on March 14, 2005. The Subcommittee on Public 
Lands and Forests held a hearing on H.R. 486 on May 5, 2005. At 
the business meeting on May 24, 2006, the Committee on Energy 
and Natural Resources ordered H.R. 486 favorably reported with 
an amendment. H.R. 4808, a similar bill, was introduced during 
the 108th Congress by Representative Pearce and passed the 
House of Representatives on September 28, 2004, by voice vote. 
Similar language was included in the Senate as an amendment to 
H.R. 620 which passed the Senate on December 7, 2004.

                        COMMITTEE RECOMMENDATION

    The Committee on Energy and Natural Resources, in open 
business session on May 24, 2006, by a unanimous voice vote of 
a quorum present recommends that the Senate pass H.R. 486, if 
amended as described herein.

                          COMMITTEE AMENDMENT

    During its consideration of H.R. 486, the Committee adopted 
an amendment in the nature of a substitute. The amendment 
captures the intent of the original bill, clarifies where 
receipts are deposited, and makes other changes recommended by 
the Department of the Interior.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 and 2 provides the short title and defines key 
terms used in the bill.
    Section 3(a) directs the Secretary of the Interior to 
exchange all right, title, and interest of the United States in 
certain Federal lands in New Mexico for certain non-Federal 
lands if requested by the owner of the non-Federal lands.
    Subsection (b) directs the owner, in exchange for such 
conveyance, to convey to the United States all right, title, 
and interest in the non-Federal land.
    Subsection (c) directs the Secretary to assume jurisdiction 
over the non-Federal land and to amend the withdrawal for 
Holloman Air Force Base to include the non-Federal land.
    Subsection (d) provides that the interests included in the 
exchange are subject to valid existing rights and shall 
comprise all surface, subsurface, mineral and water rights in 
the lands.
    Subsection (e) requires the Secretary to carry out the land 
exchanges in accordance with the Federal Land Policy Management 
Act of 1976, except that it authorizes a cash equalization 
payment to the Government in excess of 25 percent of the 
appraised value of the public lands.
    Subsection (f) specifies that the exchange shall not 
require an amendment to the White Sands Resource Management 
Plan.
    Subsection (g) directs that cash equalization payments to 
be deposited and used in accordance with the Federal Land 
Transaction Facilitation Act (43 U.S.C. 2305(c)).
    Subsection (e) provides the Secretary discretion to include 
additional terms and conditions to protect the interests of the 
United States.

                   COST AND BUDGETARY CONSIDERATIONS

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

H.R. 486--Holloman Air Force Base Land Exchange Act

    H.R. 486 would provide for an exchange of federal and 
private land near Holloman Air Force Base in New Mexico. CBO 
estimates that implementing the act would increase offsetting 
receipts and associated direct spending, but we expect that 
these effects would offset each other over the next few years. 
Enacting H.R. 486 would not affect revenues.
    H.R. 486 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not significantly affect the budgets of state, local, or 
tribal governments.
    H.R. 486 would direct the Secretary of the Interior to 
convey 320 acres of federal land and associated interests in 
New Mexico to private landowners. In exchange, those landowners 
would convey 241 acres of land and interests to the Secretary. 
The act would provide that the exchange would be carried out 
under the Federal Land Policy and Management Act of 1976 
(FLPMA), which requires that cash payments be made to equalize 
the value of the two properties. In contrast with FLPMA, 
however, H.R. 486 would allow such payments to exceed 25 
percent of the value of the federal property. Any payment 
received by the federal government would be deposited into 
BLM's federal land disposal account and would be available, 
without further appropriation, to acquire land in New Mexico.
    Based on recent land sales near Holloman and the relative 
size of the two parcels of land to be exchanged under the bill, 
CBO estimates that the Bureau of Land Management (BLM) would 
receive a cash equalization payment of about $2 million in 
fiscal year 2007. We estimate that BLM would spend this amount, 
without further appropriation, over the next few years to 
acquire other New Mexico lands for the Department of the 
Interior.
    CBO expects that other budgetary effects of the bill would 
be minimal. According to BLM, the property to be conveyed by 
the federal government generates no significant offsetting 
receipts (a credit against direct spending) and is not expected 
to do so over the next 10 years.
    Also, we estimate that administrative costs related to the 
exchange, which would be subject to the availability of 
appropriated funds, would be less than $200,000. Those costs 
would include upfront appraisal and mapping expenses as well as 
ongoing costs to manage newly acquired land.
    The CBO staff contact for this estimate is Deborah Reis. 
This estimate was approved by Peter H. Fontaine, 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. 486. 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. 486.

                        EXECUTIVE COMMUNICATIONS

    The views of the Administration were included in testimony 
provided by the Department of the Interior at the Subcommittee 
hearing follows:

Statement of Thomas P. Lonnie, Assistant Director, Minerals, Realty and 
   Resource Protection, Bureau of Land Management, Department of the 
                                Interior

    Thank you for the opportunity to present the views of the 
U.S. Department of the Interior on H.R. 486, legislation 
providing for an exchange of public and private land in the 
vicinity of Holloman Air Force Base \1\ in New Mexico. In 
previous testimony on similar legislation (H.R. 4808) given in 
the 108th Congress, we raised significant concerns, several of 
which have been addressed in H.R. 486. One concern previously 
identified in our testimony on H.R. 4808 remains outstanding, 
and we have identified new concerns described more fully in 
this testimony. The Department has significant concerns with 
H.R. 486 and could support the bill if our concerns are 
addressed.
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    \1\ Holloman AFB is in south-central New Mexico, near the town of 
Alamogordo in Otero County. Operated by the United States Air Force, 
the installation covers nearly 60,000 acres. It is located on lands 
withdrawn from the public domain for military purposes under Public 
Land Order 833.
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                               BACKGROUND

    As an initial matter, the Department views this as a unique 
situation using Bureau of Land Management (BLM) lands and the 
provisions of the Federal Land Policy and Management Act 
(FLPMA) of 1976 (P.L. 94-579) to resolve this issue involving 
the military's need for private lands in Otero County, New 
Mexico. Given this, we do not expect this matter to serve as 
precedent for future BLM land exchanges.
    Approximately 241 acres of the Mesa Verde Ranch, owned by 
Randall, Jeffrey, and Timothy Rabon, are situated within the 
explosive safety zone surrounding a Munitions Storage Area at 
Holloman AFB. The safety zone for the Munitions Storage Area 
was previously included in easements immediately adjacent to 
the eastern boundary of the base, but several of the safety 
zone easements have terminated. To secure the safety zone 
around the Munitions Storage Area, Holloman AFB considered 
acquiring the Rabons' 241 acres through acquisition, land 
trade, conservation easement, or condemnation. Acting on behalf 
of Holloman AFB, the U.S. Army Corps of Engineers offered to 
buy the 241 acres from the Rabons. However, the parties failed 
to reach agreement on a purchase price.
    On December 29, 2003, the Rabons submitted a land exchange 
proposal to the BLM under which they would convey the 241 acres 
to Holloman AFB in exchange for BLM conveying to them certain 
inholdings--parcels of BLM-managed public land located within 
the Rabons' ranch. On July 9, 2004, H.R. 4808 was introduced, 
which directed the exchange of the Rabons' 241 acres for 
parcels of BLM-managed public land located within the Mesa 
Verde Ranch (the same parcels identified in the Rabons' 
proposal to the BLM of December 29, 2003). At a September 14, 
2004, hearing of the House Resources Subcommittee on National 
Parks, Recreation, and Public Lands, the BLM testified that it 
had significant concerns with H.R. 4808. The legislation was 
not enacted. In the meantime, the military still has been 
unable to reach agreement with the Rabons on a price at which 
Holloman AFB could purchase the land.

                                H.R. 486

    Under H.R. 486, the Rabons would convey to the United 
States three parcels of private land, totaling approximately 
241 acres, contiguous to Holloman AFB and located within the 
required safety zone surrounding munitions storage bunkers at 
the base. H.R. 486 directs the Secretary of the Interior 
(Secretary) to convey to the Rabons approximately 320-acres of 
public domain land currently managed by the BLM in the state of 
New Mexico. As distinguished from the BLM parcels identified in 
H.R. 4808 in the last Congress, the 320-acre parcel of public 
land which the Secretary is directed to convey to the Rabons 
under H.R. 486 is not located within the boundaries of the Mesa 
Verde Ranch; rather, it is located near the southern portion of 
the city of Alamogordo, New Mexico, and has been identified for 
retention under the BLM's land use planning process.
    H.R. 486 directs the Secretary to carry out the exchange in 
the manner provided in section 206 [``Exchanges''] of the 
Federal Land Policy and Management Act (FLPMA) of 1976 (P.L. 
94-579), but waives the provision in section 206(b) which 
limits the amount of cash that may be paid to equalize exchange 
values of the Federal land conveyed.
    We commend the bill's sponsor for addressing in H.R. 486 
several of the concerns we previously raised in testimony on 
H.R. 4808. Specifically:
           In response to our concern that H.R. 4808 
        should specify which acres of public land and 
        privately-owned lands are intended for the exchange, 
        H.R. 486 provides a precise description of the lands to 
        be involved in the exchange.
           We asked for the opportunity to develop a 
        map to portray accurately the exchange proposed in H.R. 
        4808, and to include reference to the map in the 
        legislation. Subsequent to the September 14, 2004, 
        hearing on H.R. 4808, the Rabons selected different 
        parcels of public land they wished to acquire. The BLM 
        developed a map, which is referenced in section 1(a) of 
        H.R. 486. We note that the bill should be amended to 
        reflect the name of the map as ``Alamogordo Rabon 
        Exchange''.
           We objected to the provision in H.R. 4808 
        that would have deducted the Rabons' previous expenses 
        (incurred in their response to the military's efforts 
        to purchase the 241 acres) from any cash equalization 
        payment due to the Federal government as contrary to 
        the public interest. This provision does not appear in 
        H.R. 486.
           In response to our assertion that it was 
        important that lands involved in the proposed exchange 
        be of equal value based upon appraisals prepared in 
        accordance with the Uniform Appraisal Standards for 
        Federal Land Acquisition, H.R. 486 directs the 
        Secretary to carry out the exchange in the manner 
        provided in section 206 of FLPMA. This will assure that 
        the appraisals will comply with Federal appraisal 
        standards and the U.S. Department of Justice Uniform 
        Standards for Federal Land Acquisition.

                         CONCERNS WITH H.R. 486

    One provision in H.R. 486 remains unchanged from H.R. 4808. 
We testified as to our concern with this provision at the 
September 14, 2004, hearing on H.R. 4808. We continue to have 
concerns with this provision.
    Specifically, as in H.R. 4808, H.R. 486 requires the 
Secretary of the Interior to assume administrative jurisdiction 
over the 241-acre parcel to be conveyed by the Rabons. As 
stated in our testimony on H.R. 4808, this acquired land should 
not be placed under the administrative jurisdiction of the 
Secretary of the Interior. The Federal government's sole 
purpose in acquiring this 241-acre parcel is for the protection 
of military interests at Holloman AFB. The acquired land should 
therefore be withdrawn to the Secretary of the Army for that 
purpose and included within existing Public Land Order 833.
    H.R. 486 directs the Secretary to carry out the land 
exchange in the manner provided in section 206 of FLPMA. Under 
section 206, lands proposed for exchange with the United States 
government must be of equal value with the lands to be conveyed 
out of Federal ownership. If lands proposed for an exchange are 
not of equal value, subsection (b) of section 206 provides for 
a cash payment to be made by either the government or the 
private-property owner, as appropriate, in order to equalize 
the values of the lands involved in the exchange, provided the 
payment amount does not exceed 25 percent of the total value of 
the lands transferred out of Federal ownership.
    H.R. 486 [section 1(d)(1)] waives the 25 percent limitation 
in section 206(b) of FLPMA. The effect of this provision in 
H.R. 486 is that the dollar amount of any cash payment to 
equalize the values in this exchange would not be limited. This 
is inconsistent with the section 206 FLPMA process. In 
addition, generally an exchange proponent is responsible for 
paying appraisal costs. If the legislation requires the 
government to pay this cost, funds should be provided for this 
purpose.
    We would like to work with the Committee to address these 
concerns.
    Thank you again for the opportunity to testify on H.R. 486. 
I would be glad 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. 486, as 
ordered reported.

                                  
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