II 

112TH CONGRESS 

1ST SESSION S. 759 

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 SENATE OF THE UNITED STATES 

APRIL 7 (legislative day, APRIL 5), 2011 

Mrs. BOXER introduced the following bill; which was read twice and referred 

to the Committee on Energy and Natural Resources 

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 2011’’. 

7 SEC. 2. FINDING AND PURPOSES. 

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

9 (1) SOLEDAD CANYON AREA.— 


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1 (A) Two valid Federal contracts, privately 

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

3 issued under the Materials Act of 1947, author4 ize extraction of approximately 56,000,000 tons 

5 of sand and gravel from the Federal mineral es6 tate in lands located in Soledad Canyon adja7 cent to the City of Santa Clarita, California. 

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

9 of California and the Federal Government to 

10 cancel the Contracts and prohibit future mining 

11 in the area that was subject to the two Federal 

12 Contracts in the Soledad Canyon area of Cali13 fornia. 

14 (C) The holder of the Contracts should re15 ceive, as compensation for such cancellation, the 

16 fair market value of the Contracts and all costs, 

17 fees, and covered liabilities incurred by the Con18 tract Holder in good faith in its efforts to de19 velop the Contracts. 

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

21 the Contract Holder and that seeks to protect 

22 the environment and minimize impacts on local 

23 transportation systems is in the best interest of 

24 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 Mar 15 2010 05:05 Apr 09, 2011 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S759.IS S759

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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 section 5(h). 


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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 Mar 15 2010 05:05 Apr 09, 2011 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S759.IS S759

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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(h) except as otherwise pro20 vided 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 Mar 15 2010 05:05 Apr 09, 2011 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S759.IS S759

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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 LAND NEAR VICTORVILLE, CALIFORNIA. 

2 (a) IN GENERAL.—Notwithstanding sections 202 and 

3 203 of the Federal Land Policy and Management Act of 

4 1976 (43 U.S.C. 1712, 1713) and subject to subsections 

5 (c), (d), and (e), the Secretary shall offer for sale by com6 petitive bidding and for a minimum price of not less than 

7 fair market value, as determined by an appraisal con8 ducted under subsection (g), all right, title, and interest 

9 of the United States in and to the land identified for dis10 position on the map entitled ‘‘Victorville disposal area, 

11 California’’ and dated March 2011. 

12 (b) AVAILABILITY OF MAP.—The Secretary shall 

13 keep the map described in subsection (a) on file and avail14 able for public inspection in— 

15 (1) the office of the Director of the Bureau of 

16 Land Management; and 

17 (2) the district office of the Bureau of Land 

18 Management located in Barstow, California. 

19 (c) RIGHT OF LOCAL LAND USE AUTHORITY TO

20 PURCHASE CERTAIN LAND.— 

21 (1) IN GENERAL.—Before a sale of land under 

22 subsection (a), the Secretary shall provide the appli23 cable local land use authority an exclusive preemp24 tive right, as determined under State law, to pur25 chase any right, title, or interest of the United 

26 States in and to any portion of the parcels of land 


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1 identified as ‘‘Area A’’ and ‘‘Area B’’ on the map 

2 described in subsection (a) that is located within the 

3 jurisdiction of the local land use authority. 

4 (2) TIMING.—A preemptive right under para5 graph (1) shall be in effect for a period of 30 days 

6 before any phased sale of the land described in para7 graph (1) is to be conducted under subsection (f). 

8 (3) AUTHORITY.—During the period described 

9 in paragraph (2), the local land use authority may 

10 purchase some or all of the right, title, and interest 

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

12 in and to the land to be offered for sale at fair mar13 ket value, as determined by an appraisal conducted 

14 by the Secretary. 

15 (4) EXERCISING RIGHT.—The preemptive right 

16 under paragraph (1) shall be exercised on the imme17 diate payment by the local land use authority of the 

18 entire purchase price of the applicable parcel of 

19 land. 

20 (5) FAILURE TO PAY.—Failure by the local 

21 land use authority to purchase and pay for the right, 

22 title, and interest of the United States in and to the 

23 land described in paragraph (1) within the time pe24 riod described in paragraph (2) and to comply with 


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1 any other terms and conditions as the Secretary may 

2 require— 

3 (A) shall terminate the preemptive right of 

4 the local land use authority with respect to the 

5 right, title, and interest offered for sale during 

6 that phase; but 

7 (B) shall not terminate the preemptive 

8 right of the local land use authority with re9 spect to subsequent phased offers of the re10 maining right, title, and interest in and to the 

11 land described in paragraph (1). 

12 (d) WITHDRAWAL AND RESERVATION.— 

13 (1) WITHDRAWAL.—Subject to valid existing 

14 rights, the land described in subsection (a) is with15 drawn from— 

16 (A) entry, appropriation, or disposal under 

17 the public land laws; 

18 (B) location, entry, and patent under the 

19 mining laws; and 

20 (C) operation of the mineral leasing, min21 eral materials, and geothermal leasing laws. 

22 (2) RESERVATION.—In any sale or other dis23 posal of land under this section, there shall be re24 served by the United States the right of the United 


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1 States to prospect for, mine, and remove minerals 

2 from the conveyed land. 

3 (e) CONSULTATION.—In addition to any consultation 

4 otherwise required by law, before initiating efforts to dis5 pose of land under this section, the Secretary shall consult 

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

7 and surface owners in the jurisdiction in which the land 

8 is located regarding the potential impact of the disposal 

9 and other appropriate aspects of the disposal. 

10 (f) PHASING OF SALES.— 

11 (1) AREA A LAND.—Not later than 1 year after 

12 the date of enactment of this Act and subject to the 

13 preemptive right under subsection (c), the Secretary 

14 shall offer for sale under subsection (a) the land de15 picted as ‘‘Area A’’ on the map described in sub16 section (a). 

17 (2) AREA B LAND.—Not later than 2 years 

18 after the date of enactment of this Act and subject 

19 to the preemptive right under subsection (c), the 

20 Secretary shall offer for sale under subsection (a) 

21 the land depicted as ‘‘Area B’’ on the map described 

22 in subsection (a). 

23 (3) REMAINING LAND.—After consulting with 

24 the City of Victorville and the County of San 

25 Bernardino, the Secretary may, not later than 20 


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1 years after the date of enactment of this Act, offer 

2 for sale under subsection (a) the remaining land 

3 identified for disposal in the West Mojave Land 

4 Management Plan of 2006, except the land depicted 

5 as an ‘‘Area of Critical Environmental Concern’’ in 

6 the map described in subsection (a). 

7 (4) COMPLIANCE WITH ENVIRONMENTAL RE8 QUIREMENTS.—Land disposal activities of the Sec9 retary under this subsection shall be consistent with 

10 all applicable environmental laws (including regula11 tions). 

12 (g) DETERMINATION OF FAIR MARKET VALUE.— 

13 (1) AREA A LAND.—The fair market value of 

14 the land described in subsection (f)(1) shall be based 

15 on an appraisal of the fair market value of the land 

16 as of the date of enactment of this Act, to be com17 pleted not later than 180 days after the date of en18 actment of this Act. 

19 (2) AREA B LAND.—The fair market value of 

20 the land described in subsection (f)(2) shall be based 

21 on an appraisal of the fair market value of the land 

22 as of the date that is approximately 180 days before 

23 the date on which the land is offered for sale in ac24 cordance with subsection (f)(2), to be completed not 


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1 later than 180 days before the date on which the 

2 land is to be offered for sale. 

3 (h) SPECIAL ACCOUNT.— 

4 (1) ESTABLISHMENT.—The gross proceeds of a 

5 sale of land under subsection (a) shall be deposited 

6 in a special account established in the Treasury, to 

7 be used in accordance with paragraph (3). 

8 (2) AVAILABILITY.—Amounts in the special ac9 count established under paragraph (1) shall be avail10 able, without appropriation and until expended— 

11 (A) to the Secretary for purposes of sub12 paragraphs (A) through (E) of paragraph (3); 

13 and 

14 (B) to the Secretary of Agriculture for 

15 purposes of subparagraphs (B) and (C) of para16 graph (3). 

17 (3) DISPOSITION OF PROCEEDS.—Proceeds 

18 from a sale of land described in subsection (a) shall 

19 be disbursed by the Secretary in the following order 

20 of priority: 

21 (A) As compensation to the Contract Hold22 er under section 4(b) for cancellation of the 

23 Contracts by the Secretary. 


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1 (B) For the acquisition of private 

2 inholdings and land interests in the Mojave Na3 tional Preserve. 

4 (C) For the acquisition of holdings and 

5 land interests from willing sellers contained 

6 within the Conceptual Area Protection Plan as 

7 identified in the East Santa Clarita Land Con8 servation Concept Plan and Implementation 

9 Strategy. 

10 (D) For the acquisition of environmentally 

11 sensitive land in the State of California in ac12 cordance with section 6. 

13 (E) For the reimbursement of costs in14 curred by the California State Office and the 

15 Barstow Field Office of the Bureau of Land 

16 Management for preparing for the conveyance 

17 of land described in subsection (a), including 

18 the costs of— 

19 (i) surveys and appraisals; 

20 (ii) complying with the National Envi21 ronmental Policy Act of 1969 (42 U.S.C. 

22 4321); and 

23 (iii) except as otherwise provided in 

24 subsection (a), complying with sections 202 

25 and 203 of the Federal Land Policy and 


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1 Management Act of 1976 (43 U.S.C. 1712, 

2 1713). 

3 (4) LIMITATION ON USE OTHER THAN FOR

4 COMPENSATION.—No funds may be expended under 

5 this subsection for purposes of subparagraphs (B) 

6 through (E) of paragraph (3) until the date on 

7 which the Secretary has paid to the Contract Holder 

8 all compensation provided for under section 4(b) for 

9 cancellation of the Contracts by the Secretary. 

10 (5) SPECIAL ACCOUNT RESERVE FOR CONTRACT

11 HOLDER.— 

12 (A) LIMITATION ON DISBURSEMENTS.— 

13 Notwithstanding paragraphs (3) and (4), 

14 amounts in the special account established 

15 under paragraph (1) may be expended for the 

16 purposes described in subparagraphs (B) 

17 through (E) of paragraph (3) after compensa18 tion has been paid by the Secretary to the Con19 tract Holder as provided in paragraphs (1), (2), 

20 and (3) of section 4(b), but before the date on 

21 which the compensation required under section 

22 4(b)(4) has been paid to the Contract Holder, 

23 if the amount agreed to under subparagraph 

24 (B) is held as a reserve for payment to the Con25 tract Holder under section 4(b)(4). 


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1 (B) DETERMINATION OF RESERVE.— 

2 (i) IN GENERAL.—For purposes of 

3 calculating the reserve amount referred to 

4 in subparagraph (A), the value of the com5 pensation provided for in section 4(b)(4) is 

6 considered to be the amount agreed to by 

7 the Secretary and the Contract Holder, 

8 subject to the conditions that— 

9 (I) the amount shall not be less 

10 than 15 percent of the sum of the 

11 value of the elements of compensation 

12 described in paragraphs (1) through 

13 (3) of section 4(b); and 

14 (II) an agreement as to the 

15 amount of the reserve in subclause (I) 

16 shall be made before the disbursement 

17 of any funds from the special account 

18 for any matter other than compensa19 tion to the Contract Holder. 

20 (ii) EFFECT.—Nothing in this para21 graph reduces the amount of the com22 pensation payable to the Contract Holder 

23 under section 4(b)(4). 


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1 (6) INVESTMENT OF SPECIAL ACCOUNT.—Any 

2 amounts deposited in the special account established 

3 under paragraph (1) shall— 

4 (A) earn interest in an amount determined 

5 by the Secretary of the Treasury on the basis 

6 of the current average market yield on out7 standing marketable obligations of the United 

8 States with a maturity of 3 years; and 

9 (B) be expended according to the provi10 sions of this section. 

11 (7) PROCEDURES.—Except with respect to the 

12 disbursement of funds as compensation to the Con13 tract Holder for cancellation of the Contracts, the 

14 Secretary shall coordinate the use of the special ac15 count with the Secretary of Agriculture, the State of 

16 California, units of local government, and other in17 terested persons, to ensure accountability and dem18 onstrated results. 

19 SEC. 6. ACQUISITIONS. 

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

21 been completed in accordance with subsection (b), the Sec22 retary may acquire with the proceeds of the special ac23 count referred to in section 5(h) environmentally sensitive 

24 land and interests in environmentally sensitive land. 

25 Lands may not be acquired under this section without the 


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1 consent of the owner thereof. Funds made available from 

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

3 other funds made available under any other provision of 

4 law. 

5 (b) CONSULTATION.—Before initiating efforts to ac6 quire land under this section, the Secretary or the Sec7 retary of Agriculture shall consult with the State of Cali8 fornia and with counties and cities affected by such acqui9 sition, including appropriate planning and regulatory 

10 agencies, and with other interested persons, concerning 

11 the necessity of making the acquisition, the potential im12 pacts on State and local government, and other appro13 priate aspects of the acquisition. Consultation under this 

14 subsection is in addition to any other consultation required 

15 by law. 

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

17 United States, land and interests in land acquired under 

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

19 National Forest System, National Park System, National 

20 Wildlife Refuge System, National Wild and Scenic Rivers 

21 System, National Trails System, National Wilderness 

22 Preservation System, or any other system established by 

23 Act of Congress, or any national conservation or national 

24 recreation area established by Act of Congress— 


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1 (1) shall, notwithstanding any other provision 

2 of law, become part of the unit or area without fur3 ther action by the Secretary or Secretary of Agri4 culture; and 

5 (2) shall be managed in accordance with all 

6 laws and regulations and land use plans applicable 

7 to the unit or area. 

8 (d) DETERMINATION OF FAIR MARKET VALUE.— 

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

10 be acquired by the Secretary or the Secretary of Agri11 culture under this section shall be determined under sec12 tion 206 of the Federal Land Policy and Management Act 

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

14 other applicable requirements and standards. 

Æ 


smartinez on DSKB9S0YB1PROD with BILLS