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[Senate Report 108-242]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 452
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-242

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                 MENDOCINO NATIONAL FOREST, CALIFORNIA

                                _______
                                

                 March  9, 2004.--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. 708]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 708) to require the conveyance of 
certain National Forest System lands in Mendocino National 
Forest, California, to provide for the use of the proceeds from 
such conveyance for National Forest purposes, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the Act do pass.

                         PURPOSE OF THE MEASURE

    The purpose of H.R. 708 is to require the conveyance of 
certain National Forest lands in the Mendocino National Forest 
in California and provide for use of the proceeds from the 
conveyance for national forest purposes.

                          BACKGROUND AND NEED

    The Faraway Ranch is a tract of several hundred acres of 
private land in Lake County, California, surrounded by 
Mendocino National Forest lands. The original ranch was settled 
and patented as private land in 1884, prior to the 
establishment of the national forest. Various dwellings, roads, 
fences, and other improvements were constructed on the ranch 
over the years.
    An updated survey in the area in the 1990s revealed 
substantial errors in the official historical survey and 
unintentional encroachments of ranch structures onto 
neighboring national forest lands. The new, corrected survey 
places the boundary line between the ranch and national forest 
lands, and runs through existing structures, including the 
ranch dwelling house.
    The corrected property boundary lines are in an untenable 
location for the ranch owner. They also cause public use and 
management problems for the adjacent national forest lands. 
H.R. 708 adjusts the property boundaries to eliminate the 
encroachments and provides a buffer around the ranch dwelling 
area. A buffer will enhance safety and privacy in terms of 
public hunting, camping, and motorized vehicle use on the 
national forest, particularly in relation to fire risk and 
discharge of firearms. Besides eliminating the encroachments, 
more logical boundary corners and lines will simplify and 
reduce the expense of administration of the area for the Forest 
Service.

                          LEGISLATIVE HISTORY

    H.R. 708 was introduced on February 11, 2003, by 
Congressman Mike Thompson. The House of Representatives passed 
the bill by voice vote on November 8, 2003. The Public Lands 
and Forests Subcommittee held a hearing on the bill on November 
18, 2003. S. Hrg. 108-321. The Senate Energy and Natural 
Resources Committee ordered the bill to be favorably reported 
on February 11, 2004.

            COMMITTEE RECOMMENDATION AND TABULATION OF VOTES

    The Senate Committee on Energy and Natural Resources, in an 
open business session on February 11, 2004, by unanimous vote 
of a quorum present recommends that the Senate pass H.R. 708.
    The rollcall vote on reporting the measure was 23 yeas, 0 
nays.
        YEAS                          NAYS
    Mr. Domenici
    Mr. Nickles
    Mr. Craig
    Mr. Campbell*
    Mr. Thomas
    Mr. Alexander
    Ms. Murkowski
    Mr. Talent
    Mr. Burns
    Mr. Smith*
    Mr. Bunning
    Mr. Kyl*
    Mr. Bingaman
    Mr. Akaka
    Mr. Dorgan*
    Mr. Graham*
    Mr. Wyden*
    Mr. Johnson*
    Ms. Landrieu*
    Mr. Bayh*
    Mrs. Feinstein*
    Mr. Schumer*
    Ms. Cantwell

    *Indicates vote by proxy

                      SECTION-BY-SECTION ANALYSIS

    Section 1(a) directs the Secretary of Agriculture to 
convey, by quitclaim deed, certain tracts within Faraway Ranch 
to the owner of the Faraway Ranch.
    Subsection (b) requires the Secretary to make the 
conveyance within 120 days of the recipient depositing 
sufficient funds to the appropriate Bureau of Land Management 
and Forest Service offices.
    Subsection (c) provides the Secretary authority to make 
minor corrections to the legal descriptions of the lands to be 
conveyed.
    Subsection (d) requires that the recipient pay an amount 
equal to the appraised fair market value of the property to be 
conveyed, determined in accordance with the Federal appraisal 
standards.
    Subsection (e) provides for payment by the recipient of all 
direct transaction costs associated in the conveyance.
    Subsection (f) directs the Secretary to deposit the 
proceeds from the conveyance in the fund established by the 
Sisk Act, to be used for National Forest purposes.
    Section 2 withdraws land from location and entry under the 
public land, mining and mineral leasing laws.

                   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, February 23, 2004.
Hon. Pete V. Domenici,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 708, an act to 
require the conveyance of certain National Forest System lands 
in Mendocino National Forest, California, to provide for the 
use of the proceeds from such conveyance for National Forest 
purposes, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                      Elizabeth M. Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 708--An act to require the conveyance of certain National Forest 
        System lands in Mendocino National Forest, California, to 
        provide for the use of the proceeds from such conveyance for 
        National Forest purposes, and for other purposes

    CBO estimates that enacting H.R. 708 would not 
significantly affect the federal budget. The legislation would 
affect direct spending (including offsetting receipts), but we 
estimate that any such effects would be negligible. H.R. 708 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would have no 
significant impact on the budgets of state, local, or tribal 
governments.
    H.R. 708 would direct the Secretary of Agriculture to 
convey to a private landowner about 120 acres of federal lands 
within the Mendocino National Forest in California. The private 
landowner would pay fair market value for those lands. The 
legislation would authorize the Secretary to use proceeds from 
the conveyance to cover certain administrative costs and to 
acquire other lands and interests in California.
    According to the Forest Service, the lands to be sold 
currently generate no significant receipts and are not expected 
to do so over the next 10 years. Based on information from the 
agency, CBO estimates that proceeds from the proposed sale 
would total up to $200,000 in 2004 and that the agency would 
spend those proceeds over the 2004-2005 period. Hence, we 
estimate that, under H.R. 708, the net change in direct 
spending in those years would be negligible.
    On September 25, 2003, CBO transmitted a cost estimate for 
H.R. 708 as ordered reported by the House Committee on 
Resources on September 24, 2003. The two versions of this 
legislation are identical, and our cost estimates are the same.
    The CBO staff contact for this estimate is Megan Carroll. 
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. 708. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant 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. 708.

                        EXECUTIVE COMMUNICATIONS

    On February 10, 2004, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
Agriculture and the Office of Management and Budget setting 
forth executive views on H.R. 708. These reports had not been 
received at the time the report on H.R. 708 was filed. When the 
reports become available, the Chairman will request that they 
be printed in the Congressional Record for the advice of the 
Senate. The testimony provided by the Forest Service on H.R. 
708 at the Subcommittee hearing follows:

Statement of Tom Thompson, Deputy Chief, National Forest System, Forest 
                   Service, Department of Agriculture

    Mr. Chairman and members of the subcommittee, thank you for 
the opportunity to appear before you today. I would like to 
present the Department's views on H.R. 708, the Mendocino 
National Forest Land Exchange, S. 1167, to resolve boundary 
conflicts in Barry and Stone Counties, in the State of 
Missouri, and S. 1848, the Bend Pine Nursery Administrative 
Site Act. The Department supports H.R. 708, objects to S. 1167 
unless the bill is amended to address the concerns identified 
in my testimony, and would like to discuss a different 
alternative for S. 1848.

         h.r. 708--the mendocino national forest land exchange

    H.R. 708 authorizes the direct sale of two parcels 
comprising 120.9 acres of National Forest System lands on the 
Mendocino National Forest in California to the Faraway Ranch. 
Various improvements and facilities have been constructed on 
these lands and they have lost much of their National Forest 
character. This bill provides Faraway Ranch the opportunity to 
acquire these lands associated with their improvements and 
activities.
    At the time of conveyance, Faraway Ranch will make full 
payment of the fair market value as determined by an appraisal 
that conforms to the Federal appraisal standards and is 
acceptable to the Secretary, as well as cover all direct costs 
associated with completing this transaction. The Department 
supports this bill because it will improve management 
efficiency for the forest while recognizing the value of the 
public's assets.

                        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. 708, as 
ordered reported.

                                
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