I 

111TH CONGRESS 

1ST SESSION H. R. 4332 

To provide to the Secretary of Interior a mechanism to cancel contracts 

for the sale of materials CA–20139 and CA–22901, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 16, 2009 

Mr. MCKEON introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committee on Ways 

and Means, for a period to be subsequently determined by the Speaker, 

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To provide to the Secretary of Interior a mechanism to 

cancel contracts for the sale of materials CA–20139 and 

CA–22901, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Soledad Canyon High 

5 Desert, California Public Lands Conservation and Man6 agement Act of 2009’’. 

7 SEC. 2. FINDING AND PURPOSES. 

8 (a) FINDINGS.—The Congress finds the following: 


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1 (1) SOLEDAD CANYON AREA.— 

2 (A) Two valid Federal contracts, privately 

3 held, numbered CA–20139 and CA–22901, and 

4 issued under the Materials Act of 1947, author5 ize extraction of approximately 56,000,000 tons 

6 of sand and gravel from the Federal mineral es7 tate in lands located in Soledad Canyon adja8 cent to the City of Santa Clarita, California. 

9 (B) It is in the best interest of the citizens 

10 of California and the Federal Government to 

11 cancel the Contracts and prohibit future mining 

12 in the area that was subject to the two Federal 

13 Contracts in the Soledad Canyon area of Cali14 fornia. 

15 (C) The holder of the Contracts should re16 ceive, as compensation for such cancellation, the 

17 fair market value of the Contracts and all costs, 

18 fees, and covered liabilities incurred by the Con19 tract Holder in good faith in its efforts to de20 velop the Contracts. 

21 (D) A site-specific solution that is fair to 

22 the Contract Holder and that seeks to protect 

23 the environment and minimize impacts on local 

24 transportation systems is in the best interest of 

25 the Nation. 


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1 (E) Considerable sums of money have been 

2 expended by the Contract Holder and the City 

3 of Santa Clarita on legal and other services in 

4 trying to ensure their interests are protected 

5 with respect to the Contracts CA–20139 and 

6 CA–22901. 

7 (F) Facilitation of an open-space corridor 

8 between the two arms of the Angeles National 

9 Forest that enhances environmental and wildlife 

10 values is in the national interest. 

11 (2) VICTORVILLE AREA.— 

12 (A) The Bureau of Land Management has 

13 extensive land ownership in small and large 

14 parcels interspersed with or adjacent to private 

15 land in and around Victorville, California, mak16 ing many of these parcels difficult to manage 

17 and appropriate for disposal. 

18 (B) Certain public lands near Victorville, 

19 California, have been previously identified for 

20 disposal as a result of the Bureau of Land 

21 Management’s West Mojave Land Management 

22 Plan which was approved in 2006 with public 

23 involvement and participation. 

24 (C) In order to promote responsible and 

25 orderly economic development, certain public 


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1 lands should be sold at fair market value to the 

2 City of Victorville or the County of San 

3 Bernardino; both located in California. 

4 (b) PURPOSES.—The purposes of this Act are the fol5 lowing: 

6 (1) To provide to the Bureau of Land Manage7 ment the authority to cancel Contracts CA–20139 

8 and CA–22901 and prohibit future mining in the 

9 area that was subject to the two Federal Contracts 

10 in the Soledad Canyon area of California. 

11 (2) To provide a means for the Contract Holder 

12 to recover for the cancellation of the Contracts, the 

13 fair market value of the Contracts and the Contract 

14 Holder’s expenditures and covered liabilities incurred 

15 pursuing the development of the Contracts. 

16 (3) To provide the Bureau of Land Manage17 ment tools to verify expenses incurred by the Con18 tract Holder and provide relief. 

19 (4) To provide timelines for the verification of 

20 costs incurred by the Contract Holder and the deter21 mination of compensation and to provide a dispute 

22 resolution process. 

23 (5) To provide for the orderly disposal of cer24 tain Federal lands in San Bernardino County, CaliVerDate Nov 24 2008 07:23 Dec 18, 2009 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4332.IH H4332

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1 fornia, and to provide for the acquisition of environ2 mentally sensitive lands in the State of California. 

3 SEC. 3. DEFINITIONS. 

4 In this Act: 

5 (1) CITY OF SANTA CLARITA.—The term ‘‘City 

6 of Santa Clarita’’ means the City of Santa Clarita, 

7 California. 

8 (2) CITY OF VICTORVILLE.—The term ‘‘City of 

9 Victorville’’ means the City of Victorville, California. 

10 (3) COUNTY OF SAN BERNARDINO.—The term 

11 ‘‘County of San Bernardino’’ means the County of 

12 San Bernardino, California. 

13 (4) CONTRACTS.—The term ‘‘Contracts’’ means 

14 the Bureau of Land Management mineral contracts 

15 numbered CA–20139 and CA–22901. 

16 (5) CONTRACT HOLDER.—The term ‘‘Contract 

17 Holder’’ means the private party to the Contracts 

18 CA–20139 and CA–22901, and its successors that 

19 hold legal interests in such Contracts. 

20 (6) COVERED LIABILITIES.—The term ‘‘covered 

21 liabilities’’ includes any court-ordered or court-ap22 proved payment, settlement, or other liability on the 

23 part of the Contract Holder for damages, costs, 

24 compensation, or reimbursement to any third party 

25 for agreements entered into by the Contract Holder 


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1 in good faith prior to January 1, 2008, in order to 

2 exercise rights under the Contracts. 

3 (7) ENVIRONMENTALLY SENSITIVE LAND.—The 

4 term ‘‘environmentally sensitive land’’ means land or 

5 an interest in land, the acquisition of which by the 

6 United States would, in the judgment of the Sec7 retary or the Secretary of Agriculture— 

8 (A) promote the preservation of natural, 

9 scientific, aesthetic, historical, cultural, water10 shed, wildlife, and other values contributing to 

11 public enjoyment and biological diversity; 

12 (B) enhance recreational opportunities and 

13 public access; 

14 (C) provide the opportunity to achieve bet15 ter management of public land through consoli16 dation of Federal ownership; or 

17 (D) otherwise serve the public interest. 

18 (8) MATERIALS ACT OF 1947.—The term ‘‘Ma19 terials Act of 1947’’ means the Act of July 31, 1947 

20 (chapter 406; 61 Stat. 681; 30 U.S.C. 601–604). 

21 (9) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of the Interior. 

23 (10) SPECIAL ACCOUNT.—The term ‘‘special ac24 count’’ means the account in the Treasury of the 

25 United States established under subsection 5(i). 


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1 SEC. 4. CANCELLATION OF THE CONTRACTS; COMPENSA2 TION TO CONTRACT HOLDER. 

3 (a) CONTRACT CANCELLATIONS.—The Secretary 

4 shall cancel Bureau of Land Management mineral Con5 tracts CA–20139 and CA–22901 and withdraw those 

6 areas that were subject to the Contracts from further min7 eral entry under all mineral leasing and sales authorities 

8 available to the Secretary, effective on the date of the en9 actment of this Act. 

10 (b) COMPENSATION.—As compensation for the can11 cellation of the Contracts, the Contract Holder shall re12 ceive the following amounts, whether determined by 

13 agreed negotiated value or awarded by judgment of the 

14 United States Court of Federal Claims in accordance with 

15 the referral provisions of subsection (g)— 

16 (1) the fair market value of the cancelled Con17 tracts, determined in accordance with subsection (e); 

18 (2) the Contract Holder’s expenditures in trying 

19 to bring the Contracts into commercial production, 

20 as described in subsection (f); 

21 (3) interest on the compensation provided for in 

22 paragraphs (1), (2), and (4) from the date of the en23 actment of this Act until the last day of the month 

24 preceding the date on which payment is made, com25 pounded quarterly and computed at the rate applicaVerDate Nov 24 2008 07:23 Dec 18, 2009 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4332.IH H4332

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1 ble to marketable obligations of the United States of 

2 three year maturity for the period involved; and 

3 (4) covered liabilities incurred in trying to bring 

4 the Contracts into commercial production, as de5 scribed in subsection (f); provided, however, that 

6 compensation for covered liabilities may be paid to 

7 Contract Holder under this section for up to 15 

8 years following the effective date of this Act. 

9 (c) MEANS OF PAYMENT; ASSURANCES OF PAY10 MENT.— 

11 (1) FULL FAITH AND CREDIT.—The full faith 

12 and credit of the United States is hereby pledged to 

13 the payment of the compensation provided for in 

14 subsection (b). 

15 (2) MEANS OF PAYMENT.—Compensation paid 

16 to Contract Holder under this Act shall be paid by 

17 means of disbursement of funds from the special ac18 count created in the Treasury of the United States 

19 pursuant to section 5(i) except as otherwise provided 

20 in paragraph (3); 

21 (3) PAYMENT BY DEADLINE.—Notwithstanding 

22 paragraph (2) or any other provision of this Act, in 

23 the event that the Contract Holder has not received 

24 all of the compensation provided for in this section 

25 on or before the third anniversary of the enactment 


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1 of this Act, all compensation then remaining to be 

2 paid to Contract Holder shall be paid from the per3 manent judgment appropriation established pursu4 ant to section 1304 of title 31, United States Code. 

5 (4) NEGOTIATED AGREEMENT.—Any negotiated 

6 agreement between the Secretary and the Contract 

7 Holder as to the amount of compensation described 

8 in subsection (b) shall be deemed to be a com9 promise settlement of imminent litigation within the 

10 meaning of section 1304 of title 31, United States 

11 Code, and section 2414 of title 28, United States 

12 Code, and, notwithstanding anything to the contrary 

13 contained in any other provision of law, including 

14 section 2517 of title 28, United States Code,any 

15 final judgment by the United States Court of Fed16 eral Claims determining the fair market value of 

17 Contracts CA–20139 and CA–22901 in accordance 

18 with the referral provisions of subsection (g) shall be 

19 deemed to be a final judgment and award within the 

20 meaning of section 1304 of title 31, United States 

21 Code. 

22 (d) INCREASE IN ADJUSTED BASIS OF CONTRACT

23 UPON CANCELLATION.—For purposes of the Internal 

24 Revenue Code of 1986, the adjusted basis of any Contract 

25 to which subsection (a) applies shall be increased (immeVerDate Nov 24 2008 07:23 Dec 18, 2009 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4332.IH H4332

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1 diately before the cancellation of such Contract under such 

2 section) by the excess (if any) of— 

3 (1) the fair market value of such Contract (de4 termined immediately before such cancellation), over 

5 (2) the adjusted basis of such Contract (as de6 termined immediately before the application of this 

7 section). 

8 (e) DETERMINATION OF FAIR MARKET VALUE.—The 

9 Secretary shall, within six months after the date of enact10 ment of this Act, determine by mineral appraisal, utilizing 

11 the discounted cash flow method of appraisal (in accord12 ance with the appraisal guidelines for appraisals of large 

13 quantities of mineral materials contained in section IV(E) 

14 of BLM Mineral Material Appraisal Handbook H–3630), 

15 the fair market value of the Contracts and notify the Con16 tract Holder of those determinations. In determining the 

17 fair market value of the Contracts, the Secretary shall as18 sume that— 

19 (1) the Contract Holder has obtained all the 

20 permits and entitlements necessary to mine, 

21 produce, and sell sand and gravel under the Con22 tract; and 

23 (2) mining operations under the Contract have 

24 commenced at the time of the determination, with 

25 maximum annual production volumes that— 


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1 (A) are based on the projected supply and 

2 demand outlook at the time of determination; 

3 and 

4 (B) reflect depletion of the reserves that 

5 are subject to the Contract within the effective 

6 periods of the Contract. 

7 (f) EXPENDITURES AND COVERED LIABILITIES DE8 SCRIBED.—The compensation provided for in subsection 

9 (b)(2) is equal to the sum of the following: 

10 (1) All amounts paid to the United States by 

11 Contract Holder with respect to the cancelled Con12 tract as bonus bids or other prepayments. 

13 (2) Interest on amounts referred to in para14 graph (1), from the date of payment of such 

15 amounts to the United States, at a rate determined 

16 by the Secretary. 

17 (3) Amounts expended by the Contract Holder 

18 in securing the Contract and trying to bring it into 

19 production, including— 

20 (A) all actual costs, including fees, associ21 ated with the engineering and environmental 

22 studies and permitting proceedings that were 

23 incurred in good faith in the Contract Holder’s 

24 efforts to exercise rights granted under the 

25 Contract terms; and 


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1 (B) all actual legal costs, including fees 

2 and covered liabilities, incurred in good faith in 

3 the Contract Holder’s efforts to exercise rights 

4 granted in the Contract including all fees and 

5 costs associated with securing permits and enti6 tlements, litigation to compel, secure, or defend 

7 permits or entitlements, and litigation in con8 nection with disputes relating to mineral and 

9 surface estate rights to the property that is the 

10 subject of the Contract. 

11 (g) REFERRAL TO THE UNITED STATES COURT OF

12 FEDERAL CLAIMS.— 

13 (1) REFERRAL.—If within 12 months after the 

14 date of enactment of this Act, the Secretary and the 

15 Contract Holder do not reach agreed negotiated 

16 value under subsection (b) regarding the fair market 

17 value of Contracts CA–20139 and CA–22901, the 

18 Contract Holder shall have 3 months thereafter to 

19 notify the Secretary that it disagrees with the Sec20 retary’s determination of such value. In the event of 

21 such notification, the Secretary shall refer the issue 

22 of fair market value to the United States Court of 

23 Federal Claims for determination. 

24 (2) RESOLUTION BY COURT.—In any referral 

25 under this subsection, the court shall determine de 


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1 novo the fair market value of Contracts CA–20139 

2 and CA–22901. 

3 (h) SUBMISSION OF EXPENSES INCURRED.— 

4 (1) IN GENERAL.—To assist in the verification 

5 of the amounts expended referred to in subsection 

6 (f)(3), the Contract Holder shall submit to the Sec7 retary within 60 days after the date of enactment of 

8 this Act an itemized list of such amounts, with 

9 enough detail and supporting documentation so the 

10 Secretary can determine that the expenses are asso11 ciated with the Contracts. 

12 (2) ARBITRATION.—The Secretary shall issue 

13 the determination of the amounts expended referred 

14 to in paragraph (f)(3) within 60 days after receipt 

15 of the itemized list required under paragraph (1). If 

16 the Secretary disapproves such list, the Secretary 

17 shall, upon the request of the Contract Holder, de18 termine such amounts through arbitration in accord19 ance with subchapter IV of chapter 5 of title 5, 

20 United States Code. 

21 (i) ASSIGNMENT.—The Contract Holder may at any 

22 time assign its rights or entitlement under this Act to all 

23 or any part of the compensation provided for in para24 graphs (1) and (2) of subsection (b). 


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1 SEC. 5. SALE OF LANDS NEAR VICTORVILLE, CALIFORNIA. 

2 (a) IN GENERAL.—Notwithstanding the land use 

3 planning requirements of sections 202 and 203 and the 

4 other provisions of section 203 of the Federal Land Policy 

5 and Management Act of 1976 (43 U.S.C. 1712 and 1713), 

6 and subject to subsections (b), (c), and (d), the Secretary 

7 shall offer for sale by competitive bidding, for a minimum 

8 price not less than fair market value as determined by ap9 praisal by the Secretary under subsection (h), all right, 

10 title and interest of the United States in and to those 

11 lands identified for disposition on the map entitled 

12 ‘‘Victorville disposal area, California’’ dated December 

13 2009. The Secretary shall keep such map on file and avail14 able for public inspection in the offices of the Director of 

15 the Bureau of Land Management and in the district office 

16 of the Bureau located in Barstow, California. 

17 (b) PRE-EMPTIVE RIGHT OF THE CITY OF

18 VICTORVILLE TO PURCHASE AREA A LANDS.—Prior to 

19 any sale of any of the right, title, and interest of the 

20 United States as provided in subsection (a), the Secretary 

21 shall provide the City of Victorville, California, with the 

22 primary pre-emptive right to purchase some or all of such 

23 right, title, and interest in and to the lands identified as 

24 Area A on the map referred to in subsection (a). The 

25 terms of such pre-emptive right shall afford the City of 

26 Victorville a period of 30 days prior to any phased sale 


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1 to be conducted under subsection (g) in which the City 

2 may purchase some or all of the right, title, and interest 

3 of the United States, as provided in subsection (a), then 

4 to be offered for sale at its fair market value as deter5 mined by appraisal by the Secretary under subsection (h), 

6 by paying to the Secretary in immediately available funds 

7 the entire purchase price of the right, title, and interest 

8 so purchased by the City. Such period shall commence on 

9 the 60th day prior to any phased sale to be conducted 

10 under subsection (g), and shall end on the 31st day prior 

11 to any such sale. Failure by the City of Victorville to pur12 chase and pay for such right, title, and interest, and to 

13 comply with such other terms and conditions of purchase 

14 as the Secretary shall prescribe, within such period shall 

15 terminate the pre-emptive right of the City of Victorville 

16 with respect to the right, title, and interest then offered, 

17 but shall not terminate such pre-emptive right with re18 spect to subsequent phased offers of the remaining right, 

19 title, and interest identified on the map referred to in sub20 section (a). 

21 (c) PRE-EMPTIVE RIGHTS OF THE COUNTY OF SAN

22 BERNARDINO TO PURCHASE AREA A LANDS AND AREA

23 B LANDS.—Prior to any sale of any of the right, title, 

24 and interest of the United States as provided in subsection 

25 (a), and after providing the City of Victorville the right 


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1 to purchase under subsection (b), the Secretary shall pro2 vide the County of San Bernardino with the secondary 

3 pre-emptive right to purchase some or all of such right, 

4 title, and interest in and to the lands identified as Area 

5 A on the map referred to in subsection (a), and the exclu6 sive preemptive right to purchase all such right, title, and 

7 interest in and to the lands identified as Area B on the 

8 map referred to in subsection (a). The terms of such pre9 emptive rights shall afford the County of San Bernardino 

10 rights with respect to such lands identified as Area A and 

11 lands identified as Area B that are substantially similar 

12 to the pre-emptive right afforded under subsection (b). 

13 (d) RIGHT OF LOCAL LAND USE AUTHORITY TO

14 PURCHASE AREA C LANDS.—Prior to any sale of any of 

15 the right, title, and interest of the United States as pro16 vided in subsection (a), the Secretary shall provide the 

17 local land use authority with respect to the lands identified 

18 as Area C on the map referred to in subsection (a), as 

19 determined under the statutes of the State of California, 

20 the exclusive pre-emptive right to purchase some or all of 

21 such right, title, and interest in and to such lands. The 

22 terms of such pre-emptive right shall afford the local land 

23 use authority rights with respect to such lands identified 

24 as Area C that are substantially similar to the pre-emptive 

25 rights afforded under subsections (b) and (c). 


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1 (e) WITHDRAWAL AND RESERVATION.—Subject to 

2 valid existing rights, the minerals in all Federal lands 

3 identified in subsection (a) for disposal are withdrawn 

4 from settlement, sale, location, or entry under the public 

5 land laws, including the mining laws codified at chapter 

6 2 of title 30, United States Code, from leasing under the 

7 mineral leasing laws including those codified at chapter 

8 3A of title 30, United States Code, and disposals under 

9 the Materials Act of 1947 (30 U.S.C. 601 et seq.). Any 

10 sale or other disposal of such lands shall reserve to the 

11 United States all minerals in such lands, together with 

12 the right to prospect for, mine, and remove such minerals. 

13 (f) CONSULTATION.—Before initiating efforts to dis14 pose of land under this section, the Secretary shall consult 

15 with the City of Victorville, the County of San Bernardino, 

16 and surface owners in the jurisdiction where the lands are 

17 located, on the potential impact and other appropriate as18 pects of the disposal. Consultation under this subsection 

19 is in addition to any other consultation required by law. 

20 (g) PHASING OF SALES.— 

21 (1) AREA A LANDS.—The Secretary shall, not 

22 later than 12 months following the enactment of this 

23 Act, offer for sale under subsection (a), subject to 

24 the primary pre-emptive right of the City of 

25 Victorville under subsection (b) and the secondary 


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1 pre-emptive right of the County of San Bernardino 

2 under subsection (c), those lands depicted as Area A 

3 on the map referred to in subsection (a). 

4 (2) AREA B LANDS.—The Secretary shall, not 

5 later than 24 months following the enactment of this 

6 Act, offer for sale under subsection (a), subject to 

7 the exclusive pre-emptive right of the County of San 

8 Bernardino, those lands depicted as Area B on the 

9 map referred to in subsection (a). 

10 (3) AREA C LANDS.—The Secretary shall, not 

11 later than 24 months following the enactment of this 

12 Act, offer for sale under subsection (a), subject to 

13 the pre-emptive right of the local land use authority 

14 under subsection (d), those lands depicted as Area 

15 C on the map referred to in subsection (a). 

16 (4) REMAINING LANDS.—The Secretary, after 

17 consultations with the City of Victorville, may within 

18 20 years following the enactment of this Act, offer 

19 for sale under subsection (a) all the remaining lands 

20 identified for disposal in West Mojave Land Man21 agement Plan of 2006, except those lands depicted 

22 as ‘‘Area of Critical Environmental Concern’’ in the 

23 map referred to in subsection (a). 

24 (5) COMPLIANCE WITH ENVIRONMENTAL RE25 QUIREMENTS.—Land disposal activities of the SecVerDate Nov 24 2008 07:23 Dec 18, 2009 Jkt 089200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H4332.IH H4332

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1 retary under this subsection shall be consistent with 

2 all applicable environmental requirements. 

3 (h) DETERMINATION OF FAIR MARKET VALUE.— 

4 The fair market value of the lands referred to in sub5 section (g)(1) shall be based on an appraisal of the fair 

6 market value thereof as of the date of the enactment of 

7 this Act which shall be completed not later than 6 months 

8 after the date of the enactment of this Act. The fair mar9 ket value of the lands referred to in subsection (g)(2) shall 

10 be based on an appraisal of the fair market value thereof 

11 as of that date that is approximately 6 months prior to 

12 the related date of offer as set forth in subsection (g)(2) 

13 and shall be completed not later than 6 months prior to 

14 the related offer. The fair market value of the lands de15 scribed in subsection (g)(3) shall be based on an appraisal 

16 of each parcel offered for sale as of the date of such offer 

17 and such appraisal shall be completed not less than 6 

18 months prior to the related offer. 

19 (i) SPECIAL ACCOUNT.— 

20 (1) DEPOSIT; AVAILABILITY.—The gross pro21 ceeds of sales of land under subsection (a) shall be 

22 deposited in a special account in the Treasury for 

23 use under paragraph (2). Amounts in the special ac24 count shall be available to the Secretary for purposes 

25 of subparagraphs (A) through (E) of paragraph (2) 


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1 and to the Secretary of Agriculture for purposes of 

2 subparagraphs (B) and (C) of paragraph (2) without 

3 further appropriation and shall remain available 

4 until disbursed. 

5 (2) DISPOSITION OF PROCEEDS.—Proceeds 

6 from sales of lands described in subsection (a) shall 

7 be disbursed by the Secretary in the following order 

8 of priority: 

9 (A) As compensation to the Contract Hold10 er under section 4(b) for cancellation of the 

11 Contracts by the Secretary. 

12 (B) For the acquisition of private in hold13 ings and land interests in the Mojave National 

14 Preserve. 

15 (C) For the acquisition of holdings and 

16 land interests from willing sellers contained 

17 within the Conceptual Area Protection Plan as 

18 identified in the East Santa Clarita Land Con19 servation Concept Plan and Implementation 

20 Strategy. 

21 (D) For the acquisition of environmentally 

22 sensitive land in the State of California in ac23 cordance with section 6. 

24 (E) For the reimbursement of costs in25 curred by the California State Office and the 


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1 Barstow Field Office of the Bureau of Land 

2 Management for preparing for the conveyance 

3 of land described in subsection (a) including 

4 surveys and appraisals, compliance with the Na5 tional Environmental Policy Act of 1969 (42 

6 U.S.C. 4321), and, except as otherwise provided 

7 in subsection (a), compliance with sections 201 

8 and 203 of the Federal Land Policy and Man9 agement Act of 1976 (43 U.S.C. 1711, 1712). 

10 (3) LIMITATION ON USE OTHER THAN FOR

11 COMPENSATION.—No funds may be expended under 

12 this subsection for purposes of subparagraphs (B) 

13 through (E) of paragraph (2) until the date all com14 pensation has been paid to the Contract Holder for 

15 cancellation of the Contracts by the Secretary. 

16 (4) SPECIAL ACCOUNT RESERVE FOR CONTRACT

17 HOLDER.— 

18 (A) LIMITATION ON DISBURSEMENTS.— 

19 Notwithstanding paragraphs (2) and (3), funds 

20 in the special account referred to in paragraph 

21 (1) may be expended for purposes set forth in 

22 subparagraphs (B) through (E) of paragraph 

23 (2) after compensation has been paid to Con24 tract Holder as provided in paragraphs (1), (2), 

25 and (3) of section 4(b), but prior to the date 


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1 compensation required under section 4(b)(4) 

2 has been paid to Contract Holder, if the agreed3 upon amount referred to in subparagraph (B) 

4 of this paragraph is held as a reserve for pay5 ment to Contract Holder under section 4(b)(4). 

6 (B) DETERMINATION OF RESERVE.—For 

7 purposes of calculating the reserve provided for 

8 in this paragraph, the value of the compensa9 tion provided for in section 4(b)(4) is deemed to 

10 be such amount as is agreed upon by the Sec11 retary and the Contract Holder: Provided, That 

12 such agreed-upon amount shall in no event be 

13 less than 15 percent of the sum of the value of 

14 the elements of compensation described in para15 graphs (1) through (3) of section 4(b): Provided 

16 further, That such agreement shall be made 

17 prior to the disbursement of any funds from the 

18 special account for any matter other than com19 pensation to the Contract Holder. Nothing in 

20 this paragraph shall be construed to reduce the 

21 amount of the compensation payable to the 

22 Contract Holder pursuant to section 4(b)(4). 

23 (5) INVESTMENT OF SPECIAL ACCOUNT.—Any 

24 amounts deposited in the special account shall earn 

25 interest in an amount determined by the Secretary 


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1 of the Treasury on the basis of the current average 

2 market yield on outstanding marketable obligations 

3 of the United States with a maturity of three years 

4 and shall be expended according to the provisions of 

5 this section. 

6 (6) PROCEDURES.—Except with respect to the 

7 disbursement of funds as compensation to the Con8 tract Holder for cancellation of the Contracts, the 

9 Secretary shall coordinate the use of the special ac10 count with the Secretary of Agriculture, the State of 

11 California, local governments, and other interested 

12 persons, to ensure accountability and demonstrated 

13 results. 

14 SEC. 6. ACQUISITIONS. 

15 (a) IN GENERAL.—After the consultation process has 

16 been completed in accordance with subsection (b), the Sec17 retary may acquire with the proceeds of the special ac18 count referred to in section 5(a) environmentally sensitive 

19 land and interests in environmentally sensitive land. 

20 Lands may not be acquired under this section without the 

21 consent of the owner thereof. Funds made available from 

22 the special account may be used for this purpose with any 

23 other funds made available under any other provision of 

24 law. 


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1 (b) CONSULTATION.—Before initiating efforts to ac2 quire land under this section, the Secretary or the Sec3 retary of Agriculture shall consult with the State of Cali4 fornia and with counties and cities affected by such acqui5 sition, including appropriate planning and regulatory 

6 agencies, and with other interested persons, concerning 

7 the necessity of making the acquisition, the potential im8 pacts on State and local government, and other appro9 priate aspects of the acquisition. Consultation under this 

10 subsection is in addition to any other consultation required 

11 by law. 

12 (c) ADMINISTRATION.—On acceptance of title by the 

13 United States, land and interests in land acquired under 

14 this section that is within the boundaries of a unit of the 

15 National Forest System, National Park System, National 

16 Wildlife Refuge System, National Wild and Scenic Rivers 

17 System, National Trails System, National Wilderness 

18 Preservation System, or any other system established by 

19 Act of Congress, or any national conservation or national 

20 recreation area established by Act of Congress— 

21 (1) shall, notwithstanding any other provision 

22 of law, become part of the unit or area without fur23 ther action by the Secretary or Secretary of Agri24 culture; and 


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1 (2) shall be managed in accordance with all 

2 laws and regulations and land use plans applicable 

3 to the unit or area. 

4 (d) DETERMINATION OF FAIR MARKET VALUE.— 

5 The fair market value of land or an interest in land to 

6 be acquired by the Secretary or the Secretary of Agri7 culture under this section shall be determined under sec8 tion 206 of the Federal Land Policy and Management Act 

9 of 1976 (16 U.S.C. 1716) and shall be consistent with 

10 other applicable requirements and standards. 

Æ 


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