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[House Report 112-162]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-162

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 TO CONVEY CERTAIN SUBMERGED LANDS TO THE COMMONWEALTH OF THE NORTHERN 
 MARIANA ISLANDS IN ORDER TO GIVE THAT TERRITORY THE SAME BENEFITS IN 
  ITS SUBMERGED LANDS AS GUAM, THE VIRGIN ISLANDS, AND AMERICAN SAMOA 
                     HAVE IN THEIR SUBMERGED LANDS

                                _______
                                

 July 20, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 670]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 670) to convey certain submerged lands to the 
Commonwealth of the Northern Mariana Islands in order to give 
that territory the same benefits in its submerged lands as 
Guam, the Virgin Islands, and American Samoa have in their 
submerged lands, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                          Purpose of the Bill

    The purpose of H.R. 670 is to convey certain submerged 
lands to the Commonwealth of the Northern Mariana Islands in 
order to give that territory the same benefits in its submerged 
lands as Guam, the Virgin Islands, and American Samoa have in 
their submerged lands.

                  Background and Need for Legislation

    The Northern Mariana Islands Archipelago is located in the 
western Pacific, roughly 40 miles north of the U.S. Territory 
of Guam, on the easternmost boundary of the Philippine Sea. The 
Archipelago consists of 14 volcanic islands, with a total land 
area of 184 square miles. The island chain spans 375 miles 
north to south or roughly 400 nautical miles from the southern 
island (Rota) to the northern island (Farallon De Pajaros).
    After World War II, a U.S. military government was 
installed on the islands. In 1947, the islands became a United 
Nations Trust Territory of the Pacific Islands (TTPI), with the 
U.S. as its administering authority under the trusteeship 
agreement. The U.S. was required under the trusteeship to 
``promote the development of the inhabitants of the trust 
territory toward self-government.'' The Marianas Political 
Status Commission, with representatives from the islands and a 
delegation from the U.S., negotiated a Covenant. The Covenant 
defined the relationship between the Northern Mariana Islands 
and the U.S., with the Northern Mariana Islands functioning as 
a self-governing commonwealth, while recognizing U.S. 
sovereignty over the islands. The negotiators signed the 
Covenant on February 15, 1975, and it was unanimously approved 
by the legislature of the Mariana Islands District of the 
United Nations Trust Territory of the Pacific Islands on 
February 17, 1975.
    In 1976, Congress approved the Covenant to Establish a 
Commonwealth of the Northern Mariana Islands (CNMI) in 
Political Union with the United States (Covenant) and then-
President Gerald Ford signed the bill which became Public Law 
94-241. The CNMI government adopted a constitution in 1978 and 
its constitutional government took office in 1978. In 1986, 
Presidential Proclamation No. 5564 fully implemented the 
Covenant. Finally, the United Nations terminated the TTPI as it 
applied to the CNMI in 1990.
    In 1974, Congress passed the Territorial Submerged Lands 
Act which gave Guam, the U.S. Virgin Islands and American Samoa 
jurisdiction over submerged lands out to three geographical 
miles; however, the Act was enacted before the CNMI was granted 
territory status. The CNMI legislature passed legislation in 
1979, 1980 and 1988 asserting that the CNMI had exclusive 
jurisdiction over submerged lands and offshore marine 
resources. However, the U.S. federal government's position on 
the submerged lands surrounding CNMI has been that the 
submerged lands were not transferred to the CNMI under the 
Covenant and remain under the jurisdiction of the U.S.
    In 2004, the CNMI sued the U.S. in District Court under the 
Quiet Title Act (28 U.S.C. 2409a) asserting its claim of 
jurisdiction over oceanic submerged lands and marine resources 
from its coastline to a distance of 200 nautical miles. The 
District Court ruled that the U.S. has ``paramount authority 
over those lands and resources as a necessary and retained 
element of its national sovereignty.'' The CNMI appealed the 
decision to the Ninth Circuit Court of Appeals. The Ninth 
Circuit affirmed the District Court's ruling; however, it did 
recognize that Congress has the authority to transfer ownership 
of submerged lands to the states and its territories.

                            Committee Action

    H.R. 670 was introduced on February 11, 2011, by Delegate 
Gregorio Sablan (D-MP). The bill was referred to the Committee 
on Natural Resources, and within the Committee to the 
Subcommittee on Fisheries, Wildlife, Oceans, and Insular 
Affairs. On May 12, 2011, the Subcommittee on Fisheries, 
Wildlife, Oceans, and Insular Affairs held a hearing on the 
bill. On June 15, 2011, the Full Resources Committee met to 
consider the bill. The Subcommittee on Fisheries, Wildlife, 
Oceans, and Insular Affairs was discharged by unanimous 
consent. No amendments were offered and the bill was ordered 
favorably reported to the House of Representatives by unanimous 
consent.

            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.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(1) 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)(2)(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. 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. 670--A bill to convey certain submerged lands to the Commonwealth 
        of the Northern Mariana Islands in order to give that territory 
        the same benefits in its submerged lands as Guam, the Virgin 
        Islands, and American Samoa have in their submerged lands

    H.R. 670 would convey ownership of submerged lands to the 
Commonwealth of the Northern Mariana Islands from the mean high 
tide seaward to the point that is three geographical miles from 
its coast line. Under current law, those lands are owned by the 
United States. Based on information from the Department of the 
Interior, CB0 estimates that implementing H.R. 670 would have 
no significant cost to the federal government. Enacting the 
bill would not affect direct spending or revenues; therefore, 
pay-as-you-go procedures do not apply.
    H.R. 670 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 Matthew 
Pickford. This estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.
    2. Section 308(a) of 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. CBO estimates that 
implementing H.R. 670 would have no significant cost to the 
federal government. Enacting the bill would not affect direct 
spending or revenues; therefore, pay-as-you-go procedures do 
not apply.
    3. General Performance Goals and Objectives. This bill does 
not authorize funding and therefore, clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives does not 
apply.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                Preemption of State, Local or Tribal Law

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

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                SECTION 1 OF THE ACT OF OCTOBER 5, 1974

                          (Public Law 93-435)

AN ACT To place certain submerged lands within the jurisdiction of the 
 governments of Guam, the Virgin Islands, and American Samoa, and for 
                            other purposes.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That (a) 
subject to valid existing rights, all right, title, and 
interest of the United States in lands permanently or 
periodically covered by tidal waters up to but not above the 
line of mean high tide and seaward to a line three geographical 
miles distant from the coastlines of the territories of Guam, 
the Commonwealth of the Northern Mariana Islands, the Virgin 
Islands, and American Samoa, as heretofore or hereafter 
modified by accretion, erosion, and reliction, and in 
artificially made, filled in, or reclaimed lands which were 
formerly permanently or periodically covered by tidal waters, 
are hereby conveyed to the governments of Guam, the 
Commonwealth of the Northern Mariana Islands, the Virgin 
Islands, and American Samoa, as the case may be, to be 
administered in trust for the benefit of the people thereof.
  (b) There are excepted from the transfer made by subsection 
(a) hereof----
          (i) * * *

           *       *       *       *       *       *       *

Upon request of the Governor of Guam, the Commonwealth of the 
Northern Mariana Islands, the Virgin Islands, or American 
Samoa, the Secretary of the Interior may, with or without 
reimbursement, and subject to the procedure specified in 
subsection (c) of this section convey all right, title, and 
interest of the United States in any of the lands described in 
clauses (ii), (iii), (iv), (v), (vi), (vii), or (viii) of this 
subsection to the government of Guam, the Commonwealth of the 
Northern Mariana Islands, the Virgin Islands, or American 
Samoa, as the case may be, with the concurrence of the agency 
having custody thereof.

           *       *       *       *       *       *       *

  (d)(1) The Secretary of the Interior shall, not later than 
sixty days after the date of enactment of this subsection, 
convey to the governments of Guam, the Commonwealth of the 
Northern Mariana Islands, the Virgin Islands, and American 
Samoa, as the case may be, all right, title, and interest of 
the United States in deposits of oil, gas, and other minerals 
in the submerged lands conveyed to the government of such 
territory by subsection (a) of this section.

           *       *       *       *       *       *       *

                                  
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