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[House Report 111-179]
[From the U.S. Government Publishing Office]

111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    111-179

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              UTAH RECREATIONAL LAND EXCHANGE ACT OF 2009

                                _______
                                

 June 23, 2009.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1275]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 1275) to direct the exchange of certain land in 
Grand, San Juan, and Uintah Counties, Utah, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Utah Recreational Land Exchange Act of 
2009''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Federal land.--The term ``Federal land'' means the land 
        located in Grand, San Juan, and Uintah Counties, Utah, that is 
        identified on the maps as--
                  (A) ``BLM Subsurface only Proposed for Transfer to 
                State Trust Lands'';
                  (B) ``BLM Surface only Proposed for Transfer to State 
                Trust Lands''; and
                  (C) ``BLM Lands Proposed for Transfer to State Trust 
                Lands''.
          (2) Grand county map.--The term ``Grand County Map'' means 
        the map prepared by the Bureau of Land Management entitled 
        ``Utah Recreational Land Exchange Act Grand County'', dated May 
        14, 2009, and relating to the exchange of Federal land and non-
        Federal land in Grand and San Juan Counties, Utah.
          (3) Maps.--The term ``maps'' means the Grand County Map and 
        the Uintah County Map.
          (4) Non-federal land.--The term ``non-Federal land'' means 
        the land in Grand, San Juan, and Uintah Counties, Utah, that is 
        identified on the maps as--
                  (A) ``State Trust Land Proposed for Transfer to 
                BLM''; and
                  (B) ``State Trust Minerals Proposed for Transfer to 
                BLM''.
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (6) State.--The term ``State'' means the State of Utah, as 
        trustee under the Utah State School and Institutional Trust 
        Lands Management Act (Utah Code Ann. 53C-1-101 et seq.).
          (7) Uintah county map.--The term ``Uintah County Map'' means 
        the map prepared by the Bureau of Land Management entitled 
        ``Utah Recreational Land Exchange Act Uintah County'', dated 
        May 14, 2009, and relating to the exchange of Federal land and 
        non-Federal land in Uintah County, Utah.

SEC. 3. EXCHANGE OF LAND.

  (a) In General.--If the State offers to convey to the United States 
title to the non-Federal land, the Secretary shall--
          (1) accept the offer; and
          (2) on receipt of all right, title, and interest of the State 
        in and to the non-Federal land, convey to the State all right, 
        title, and interest of the United States in and to the Federal 
        land.
  (b) Conditions.--The exchange authorized under subsection (a) shall 
be subject to--
          (1) valid existing rights;
          (2) except as otherwise provided by this section--
                  (A) section 206 of the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1716); and
                  (B) any other applicable laws;
          (3) all costs of land exchanges under this Act, including but 
        not limited to appraisals, surveys, and related costs, shall be 
        paid equally by the Secretary and the State; and
          (4) any additional terms and conditions that the Secretary 
        and the State mutually determine to be appropriate.
  (c) Title Approval.--Title to the Federal land and non-Federal land 
to be exchanged under this section shall be in a format acceptable to 
the Secretary and the State.
  (d) Appraisals.--
          (1) In general.--The value of the Federal land and the non-
        Federal land shall be determined by appraisals conducted by 1 
        or more independent appraisers selected jointly by the 
        Secretary and the State.
          (2) Applicable law.--The appraisals conducted under paragraph 
        (1) shall be conducted in accordance with section 206 of the 
        Federal Land Policy and Management Act of 1976 (43 U.S.C. 
        1716).
          (3) Approval.--The appraisals conducted under paragraph (1) 
        shall be submitted to the Secretary and the State for approval.
          (4) Adjustment.--
                  (A) In general.--If value is attributed to any parcel 
                of Federal land because of the presence of minerals 
                subject to leasing under the Mineral Leasing Act (30 
                U.S.C. 181 et seq.), the value of the parcel (as 
                otherwise established under this subsection) shall be 
                reduced by the estimated value of the payments that 
                would have been made to the State of Utah from bonuses, 
                rentals, and royalties that the United States would 
                have received if such minerals were leased pursuant to 
                the Mineral Leasing Act (30 U.S.C. 181 et seq.).
                  (B) Limitation.--An adjustment under subparagraph (A) 
                shall not be considered as a property right of the 
                State.
          (5) Availability of appraisals.--
                  (A) In general.--All final appraisals, appraisal 
                reviews, and determinations of value for land to be 
                exchanged under this section shall be available for 
                public review at the Utah State Office of the Bureau of 
                Land Management at least 30 days before the conveyance 
                of the applicable parcels.
                  (B) Publication.--The Secretary or the State, as 
                applicable, shall publish in a newspaper of general 
                circulation in Salt Lake County, Utah, a notice that 
                the appraisals are available for public inspection.
  (e) Conveyance of Parcels in Phases.--
          (1) In general.--Notwithstanding that appraisals for all of 
        the parcels of Federal land and non-Federal land may not have 
        been approved under subsection (d)(3), parcels of the Federal 
        land and non-Federal land may be exchanged under subsection (a) 
        in 3 phases beginning on the date on which the appraised values 
        of the parcels included in the applicable phase are approved 
        under this subsection.
          (2) Phases.--The 3 phases referred to in paragraph (1) are--
                  (A) phase 1, consisting of the non-Federal land 
                identified as ``phase one'' land on the Grand County 
                Map;
                  (B) phase 2, consisting of the non-Federal land 
                identified as ``phase two'' land on the Grand County 
                Map and the Uintah County Map; and
                  (C) phase 3, consisting of any remaining non-Federal 
                land that is not identified as ``phase one'' land or 
                ``phase two'' land on the Grand County Map or the 
                Uintah County Map.
          (3) No agreement on exchange.--If agreement has not been 
        reached with respect to the exchange of an individual parcel of 
        Federal land or non-Federal land, the Secretary and the State 
        may agree to set aside the individual parcel to allow the 
        exchange of the other parcels of Federal land and non-Federal 
        land to proceed.
          (4) Timing.--It is the intent of Congress that at least the 
        first phase of the exchange of land authorized by subsection 
        (a) be completed not later than 360 days after the date on 
        which the State makes the Secretary an offer to convey the non-
        Federal land under that subsection.
  (f) Reservation of Interest in Oil Shale.--
          (1) In general.--With respect to Federal land that contains 
        oil shale resources, the Secretary shall reserve an interest in 
        the portion of the mineral estate that contains the oil shale 
        resources.
          (2) Extent of interest.--The interest reserved by the United 
        States under paragraph (1) shall consist of--
                  (A) 50 percent of any bonus bid or other payment 
                received by the State as consideration for securing any 
                lease or authorization to develop oil shale resources;
                  (B) the amount that would have been received by the 
                Federal Government under the applicable royalty rate if 
                the oil shale resources had been retained in Federal 
                ownership; and
                  (C) 50 percent of any other payment received by the 
                State pursuant to any lease or authorization to develop 
                the oil shale resources.
          (3) Payment.--Any amounts due under paragraph (2) shall be 
        paid by the State to the United States not less than quarterly.
          (4) No obligation to lease.--The State shall not be obligated 
        to lease or otherwise develop oil shale resources in which the 
        United States retains an interest under this subsection.
          (5) Valuation.--Federal land in which the Secretary reserves 
        an interest under this subsection shall be appraised--
                  (A) without regard to the presence of oil shale; and
                  (B) in accordance with subsection (d).
  (g) Withdrawal of Federal Land Prior to Exchange.--Subject to valid 
existing rights, during the period beginning on the date of enactment 
of this Act and ending on the earlier of the date that the Federal land 
is removed from the exchange or the date on which the Federal land is 
conveyed under this Act, the Federal land is withdrawn from--
          (1) disposition (other than disposition under section 4) 
        under the public land laws;
          (2) location, entry, and patent under the mining laws; and
          (3) the operation of--
                  (A) the mineral leasing laws;
                  (B) the Geothermal Steam Act of 1970 (30 U.S.C. 1001 
                et seq.); and
                  (C) the first section of the Act of July 31, 1947 
                (commonly known as the ``Materials Act of 1947'') (30 
                U.S.C. 601).
  (h) Appurtenant Water Rights.--Any conveyance of a parcel of Federal 
land or non-Federal land under this Act shall include the conveyance of 
water rights appurtenant to the parcel conveyed.
  (i) Equal Value Exchange.--
          (1) In general.--The value of the Federal land and non-
        Federal land to be exchanged under this Act--
                  (A) shall be equal; or
                  (B) shall be made equal in accordance with paragraph 
                (2).
          (2) Equalization.--
                  (A) Surplus of federal land.--If the value of the 
                Federal land exceeds the value of the non-Federal land, 
                the value of the Federal land and non-Federal land 
                shall be equalized, as determined to be appropriate and 
                acceptable by the Secretary and the State, by one or 
                more of the following:
                          (i) By reducing the acreage of the Federal 
                        land to be conveyed.
                          (ii) By adding additional State land to the 
                        non-Federal land to be conveyed.
                          (iii) Consistent with section 206(b) of the 
                        Federal Land Policy and Management Act (43 
                        U.S.C. 1716), by cash equalization of not more 
                        than 5 percent of the total value of the lands 
                        or interests in lands to be transferred out of 
                        Federal ownership.
                  (B) Surplus of non-federal land.--If the value of the 
                non-Federal land exceeds the value of the Federal land, 
                the value of the Federal land and non-Federal land 
                shall be equalized, as determined to be appropriate and 
                acceptable by the Secretary and the State, by one or 
                both of the following:.
                          (i) By reducing the acreage of the non-
                        Federal land to be conveyed.
                          (ii) Consistent with section 206(b) of the 
                        Federal Land Policy and Management Act (43 
                        U.S.C. 1716), by cash equalization of not more 
                        than 5 percent of the total value of the lands 
                        or interests in lands to be transferred out of 
                        Federal ownership.
          (3) Notice and public inspection.--
                  (A) In general.--If the Secretary and the State 
                determine to add or remove land from the exchange, the 
                Secretary or the State shall--
                          (i) publish in a newspaper of general 
                        circulation in Salt Lake County, Utah, a notice 
                        that identifies when and where a revised 
                        exchange map will be available for public 
                        inspection; and
                          (ii) transmit to the Committee on Natural 
                        Resources of the House of Representatives and 
                        the Committee on Energy and Natural Resources 
                        of the Senate a copy of the revised exchange 
                        map.
                  (B) Limitation.--The Secretary and the State shall 
                not add or remove land from the exchange until at least 
                30 days after the date on which the notice is published 
                under subparagraph (A)(i) and the map is transmitted 
                under subparagraph (A)(ii).

SEC. 4. STATUS AND MANAGEMENT OF LAND AFTER EXCHANGE.

  (a) Administration of Non-Federal Land.--
          (1) In general.--Subject to paragraph (2) and in accordance 
        with section 206(c) of the Federal Land Policy and Management 
        Act of 1976 (43 U.S.C. 1716(c)), the non-Federal land acquired 
        by the United States under this Act shall become part of, and 
        be managed as part of, the Federal administrative unit or area 
        in which the land is located.
          (2) Withdrawal parcels.--Any non-Federal land acquired by the 
        United States under this Act identified on the maps as 
        ``Withdrawal Parcels'' is withdrawn from the operation of the 
        mineral leasing and mineral material disposal laws.
          (3) Receipts.--
                  (A) In general.--Any mineral receipts derived from 
                the non-Federal land acquired under this Act shall be 
                paid into the general fund of the Treasury.
                  (B) Applicable law.--Mineral receipts from the non-
                Federal land acquired under this Act shall not be 
                subject to section 35 of the Mineral Leasing Act (30 
                U.S.C. 191).
  (b) Grazing Permits.--
          (1) In general.--If land conveyed under this Act is subject 
        to a lease, permit, or contract for the grazing of domestic 
        livestock in effect on the date of acquisition, the Secretary 
        and the State shall allow the grazing to continue for the 
        remainder of the term of the lease, permit, or contract, 
        subject to the related terms and conditions of user agreements, 
        including permitted stocking rates, grazing fee levels, access 
        rights, and ownership and use of range improvements.
          (2) Renewal.--To the extent allowed by Federal or State law, 
        on expiration of any grazing lease, permit, or contract 
        described in paragraph (1), the holder of the lease, permit, or 
        contract shall be entitled to a preference right to renew the 
        lease, permit, or contract.
          (3) Cancellation.--
                  (A) In general.--Nothing in this Act prevents the 
                Secretary or the State from canceling or modifying a 
                grazing permit, lease, or contract if the land subject 
                to the permit, lease, or contract is sold, conveyed, 
                transferred, or leased for nongrazing purposes by the 
                Secretary or the State.
                  (B) Limitation.--Except to the extent reasonably 
                necessary to accommodate surface operations in support 
                of mineral development, the Secretary or the State 
                shall not cancel or modify a grazing permit, lease, or 
                contract because the land subject to the permit, lease, 
                or contract has been leased for mineral development.
          (4) Base properties.--If land conveyed by the State under 
        this Act is used by a grazing permittee or lessee to meet the 
        base property requirements for a Federal grazing permit or 
        lease, the land shall continue to qualify as a base property 
        for the remaining term of the lease or permit and the term of 
        any renewal or extension of the lease or permit.
  (c) Hazardous Materials.--
          (1) In general.--The Secretary and, as a condition of the 
        exchange, the State shall make available for review and 
        inspection any record relating to hazardous materials on the 
        land to be exchanged under this Act.
          (2) Costs.--The costs of remedial actions relating to 
        hazardous materials on land acquired under this Act shall be 
        paid by those entities responsible for the costs under 
        applicable law.
  (d) Easement.--The conveyance of Federal land in sec. 33, T. 4 S., R. 
24 E., and sec. 4, T. 5 S., R. 24 E., of the Salt Lake Meridian, shall 
be subject to a 1,000 foot wide scenic easement and a 200 foot wide 
road right-of-way previously granted to the National Park Service for 
the Dinosaur National Monument, as described in Land Withdrawal No. U-
0141143, pursuant to the Act of September 8, 1960 (74 Stat. 857,861).

SEC. 5. TERMINATION OF AUTHORITY.

  The provisions of this Act shall terminate 5 years after the date of 
enactment.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated such sums as are necessary to 
carry out this Act.

                           PURPOSE OF THE BILL

    The purpose of H.R. 1275 is to authorize the exchange of 
certain land in Grand, San Juan, and Uintah Counties, Utah, and 
for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 1275 directs the Secretary of the Interior to enter 
into an exchange with the State of Utah (acting on behalf of 
the Utah School and Institutional Trust Lands Administration 
[SITLA]) for the exchange of public lands and state lands in 
Grand, San Juan, and Uintah Counties.
    Land exchanges, especially in Utah, have proven to be very 
controversial. In 2002 the Department of the Interior and the 
State of Utah negotiated a land exchange in the San Rafael 
Swell area of Utah, which was subsequently introduced as H.R. 
4968 in the 107th Congress. That legislation was extremely 
controversial, with a number of Bureau of Land Management (BLM) 
employees and public interest groups issuing charges of 
manipulation of data and valuations. As a result of these 
charges, several investigations were launched which confirmed 
that the Department of the Interior engaged in improper 
negotiation and valuation procedures on the exchange. 
Consequently, the proposed exchange was abandoned, disciplinary 
action was taken against several senior officials, and the 
Department of the Interior overhauled its land exchange 
procedures.
    H.R. 1275 would be the first Utah land exchange since the 
infamous 2002 proposal and is based on legislation (H.R. 2069) 
that passed the House of Representatives in the 109th Congress 
but was not enacted. According to the BLM, this legislation 
would involve approximately 40,000 acres of federal land and 
minerals being exchanged for approximately 42,000 acres of 
state land and minerals. BLM has testified that many of the 
lands that the state is proposing to transfer to the BLM are 
lands that the BLM has a high interest in acquiring because 
they would consolidate federal ownership within wilderness 
study areas, Areas of Critical Environmental Concern (ACEC), or 
other sensitive lands. Much of the federal land that the state 
would acquire has a high potential for development.
    This exchange has been widely publicized and the intent of 
the legislation is to place valuable conservation and 
recreation lands into public ownership while also benefitting 
public school funding in Utah. The exchange will also continue 
the process of consolidating state and federal ownership 
patterns in Utah.

                            COMMITTEE ACTION

    H.R. 1275 was introduced on March 3, 2009 by Representative 
Jim Matheson (D-UT). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on National Parks, Forests, and Public Lands.
    At a National Parks, Forests and Public Lands Subcommittee 
hearing on March 24, 2009, a representative of the Department 
of the Interior testified that the BLM generally supports the 
bill. However, the agency recommended several changes regarding 
valuation and appraisal of these lands as well as other 
technical changes.
    On June 10, 2009, the Full Natural Resources Committee met 
to consider the bill. The Subcommittee on National Parks, 
Forests, and Public Lands was discharged from the further 
consideration of H.R. 1275. Subcommittee Chairman Raul Grijalva 
(D-AZ) offered an amendment in the nature of a substitute to 
make the technical changes requested by the BLM, to address the 
valuation and appraisal concerns of the BLM, and to reference 
new maps. The amendment in the nature of a substitute was 
agreed to by unanimous consent. The bill, as amended, was then 
ordered favorably reported to the House of Representatives by 
unanimous consent.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 provides that this Act may be cited as the ``Utah 
Recreational Land Exchange Act of 2009''.

Section 2. Definitions

    Section 2 provides definitions of the terms used in this 
Act.

Section 3. Exchange of land

    Section 3 establishes the procedures to be used in making 
the exchange, including (except as otherwise provided for in 
this Act) section 206 of the Federal Land Policy and Management 
Act (43 U.S.C. 1716) and other applicable law. It specifies 
that all costs of the land exchanges under this Act shall be 
paid equally by the Secretary and the State.
    Subsection (d) addresses appraisals. Subsection (d)(4) 
specifically provides that if, during the appraisal, value is 
attributed to any parcel of federal land because of the 
presence of minerals, subject to leasing under the Mineral 
Leasing Act (30 U.S.C. 181 et seq.), the value of the parcel 
shall be reduced. This will be determined by reducing the 
estimated value of the payments that would have been made to 
the State of Utah from bonuses, rentals, and royalties if such 
minerals were leased, from the appraised value.
    Subsection (f) includes a reservation of a federal interest 
in any oil shale that may be present on the federal lands being 
exchanged. Although there is currently no viable market for oil 
shale, and as such oil shale would not likely be valued when 
appraising the land, the Committee understands that there is a 
large future potential value in this resource. To protect the 
federal interest the amended bill provides that if the State 
ever develops such oil shale, it would be obligated to split 
any revenue it received with the United States. The Committee's 
intent is that the United States receive all revenue that it 
would have received under applicable law if the lands had been 
retained in federal ownership, minus any amounts that otherwise 
would be payable to the State of Utah under applicable law.

Section 4. Status and management of land after exchange

    Section 4 provides for the management of the non-federal 
lands acquired in the exchange and includes provisions 
regarding mineral leasing, grazing permits and disclosure and 
liability for hazardous materials.
    The Committee is aware that a number of the non-federal 
parcels being acquired have significant conservation values, 
including the protection of community water supplies. For this 
reason the legislation includes language to withdraw certain 
parcels from operation on the mineral leasing and mineral 
material disposal laws to protect these resource values.

Section 5. Termination of authority

    Section 5 provides that the provisions of the Act will 
terminate in 5 years.

Section 6. Authorization of appropriations

    Section 6 authorizes the appropriation of such sums as may 
be necessary to carry out this Act.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 and Article IV, section 3 of the 
Constitution of the United States grant Congress the authority 
to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that Rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to authorize the exchange of land in 
Grand, San Juan, and Uintah Counties, Utah, and for other 
purposes.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

H.R. 1275--Utah Recreational Land Exchange Act of 2009

    H.R. 1275 would authorize a land exchange between the 
federal government and the state of Utah. The bill would 
specify certain procedures for equalizing the values of lands 
and interests exchanged and other conditions on the 
transaction. In particular, under the bill, the federal 
government would reserve an interest in any oil shale resources 
conveyed to the state.
    CBO estimates that enacting H.R. 1275 would have no 
significant net impact on discretionary or mandatory spending 
and no effect on revenues. The bill 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.
    Based on information provided by the Bureau of Land 
Management (BLM), CBO estimates that the approximately 36,000 
acres of federal lands to be conveyed under H.R. 1275 currently 
generate net offsetting receipts (a credit against direct 
spending) totaling less than $50,000 annually, primarily for 
grazing. Although some of those lands have the potential for 
mineral development, CBO expects that they are unlikely to be 
leased over the next 10 years; therefore, we estimate that 
forgone net receipts under the bill over the 2010-2019 period 
would be minimal, as would any new receipts that might be 
earned on the approximately 46,000 acres that would be received 
from the state.
    Also, under H.R. 1275, the federal government would reserve 
a 50 percent interest in future royalties, bonus bids, and 
other payments that Utah might receive if the lands to be 
transferred to it are ever developed for oil shale. Because BLM 
typically retains half of any receipts from mineral leasing on 
federal land under current law, CBO expects that this provision 
would, on average, have no significant effect on the federal 
budget.
    The CBO staff contacts for this estimate are Deborah Reis 
and Megan Carroll. The estimate was approved by Theresa Gullo, 
Deputy Assistant Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                           EARMARK STATEMENT

    H.R. 1275 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e) or 9(f) of rule XXI.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                  
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