II 

113TH CONGRESS 

2D SESSION H. R. 5742 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 11, 2014 

Received 

AN ACT 

To provide to the Secretary of the 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Soledad Canyon Settle3 ment Act’’. 

4 SEC. 2. DEFINITIONS. 

5 In this Act: 

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

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

8 California. 

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

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

11 (3) CONTRACTS.—The term ‘‘contracts’’ means 

12 the Bureau of Land Management mineral contracts 

13 numbered CA–20139 and CA–22901. 

14 (4) CONTRACT HOLDER.—The term ‘‘contract 

15 holder’’ means the private party to the contracts, 

16 and any successors that hold legal interests in the 

17 contracts. 

18 (5) COUNTY OF SAN BERNARDINO.—The term 

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

20 San Bernardino, California. 

21 (6) MAP.—The term ‘‘Map’’ means the map en22 titled ‘‘Victorville disposal area, California’’ and 

23 dated March 2011. 

24 (7) SECRETARY.—The term ‘‘Secretary’’ means 

25 the Secretary of the Interior. 


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1 (8) VICTORVILLE DISPOSAL AREA.—The term 

2 ‘‘Victorville disposal area’’ means the 10,206.05 

3 acres of land identified for disposal in the West Mo4 jave Land Management Plan (2006) of the Bureau 

5 of Land Management and depicted on the Map. 

6 SEC. 3. APPRAISAL; COMPENSATION TO CONTRACT HOLD7 ER. 

8 (a) APPRAISALS.— 

9 (1) CONTRACT APPRAISAL.— 

10 (A) IN GENERAL.—Not later than 90 days 

11 after the date of enactment of this Act, the Sec12 retary shall determine by mineral appraisal, 

13 using the discounted cash flow method of ap14 praisal (in accordance with the appraisal guide15 lines for appraisals of large quantities of min16 eral materials contained in section IV(E) of 

17 BLM Mineral Material Appraisal Handbook H– 

18 3630)— 

19 (i) the fair market value of the con20 tracts; and 

21 (ii) the amount of royalties the Fed22 eral Government would receive under the 

23 contracts over the 10-year period begin24 ning on the date of enactment of this Act. 


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1 (B) CONSIDERATIONS.—In making the de2 termination under subparagraph (A), the Sec3 retary shall assume that— 

4 (i) the contract holder has obtained 

5 all the permits and entitlements necessary 

6 to mine, produce, and sell sand and gravel 

7 under the contract; and 

8 (ii) mining operations under the con9 tract have commenced at the time of the 

10 determination, with maximum annual pro11 duction volumes that— 

12 (I) are based on the projected 

13 supply and demand outlook at the 

14 time of determination; and 

15 (II) reflect depletion of the re16 serves that are subject to the contract 

17 within the effective periods of the con18 tract. 

19 (C) DONATION.—The Secretary shall pro20 vide to the contract holder and the City of 

21 Santa Clarita a list of approved appraisers from 

22 which the parties shall select and provide the 

23 funding to cover the costs of the appraisal 

24 under subparagraph (A). 

25 (2) LAND APPRAISAL.— 


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1 (A) IN GENERAL.—Not later than 90 days 

2 after the date of enactment of this Act, the Sec3 retary shall determine by appraisal standards 

4 under existing laws and regulations, the fair 

5 market value of the Victorville disposal area on 

6 a net present value basis. 

7 (B) DONATION.—The Secretary shall pro8 vide to the contract holder and the City of 

9 Santa Clarita a list of approved appraisers from 

10 which the parties shall select and provide the 

11 funding to cover the costs of the appraisal 

12 under subparagraph (A). 

13 (b) COMPENSATION.— 

14 (1) IN GENERAL.—Subject to paragraph (2), 

15 not later than 30 days after completion of the ap16 praisals under subsection (a), the Secretary shall 

17 offer the contract holder compensation for the can18 cellation of the contracts. 

19 (2) CONDITIONS ON OFFER.—An offer made by 

20 the Secretary under paragraph (1) shall be subject 

21 to the following conditions: 

22 (A) The cancellation of the contracts and 

23 the provision of compensation shall be contin24 gent on the availability of funds from the sale 

25 of the Victorville disposal area under section 4, 


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1 and any additional compensation provided 

2 under subparagraph (D), as determined nec3 essary by the Secretary. 

4 (B) The amount of compensation offered 

5 by the Secretary under this subsection shall be 

6 equal to or less than the fair market value of 

7 the contracts, as determined under subsection 

8 (a)(1)(A)(i). 

9 (C) The amount of compensation offered 

10 by the Secretary under this subsection shall be 

11 equal to or less than the projected revenues 

12 generated by the sale of the Victorville disposal 

13 area under section 4, less the projected lost roy14 alties to the Federal Government over the 10- 

15 year period beginning on the date of enactment 

16 of this Act, as determined under subsection 

17 (a)(1)(A)(ii). 

18 (D) If the amount of projected revenues 

19 described in subparagraph (C) is less than the 

20 fair market value determined under subsection 

21 (a)(1)(A)(i), the Secretary shall, not later than 

22 60 days after the date on which the Director of 

23 the Bureau of Land Management determines 

24 the projected revenues under subparagraph (C), 

25 negotiate an agreement with the contract holder 


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1 and the City of Santa Clarita to provide to the 

2 Secretary amounts equal to the difference, in 

3 the form of— 

4 (i) compensation to be received by the 

5 contract holder; and 

6 (ii) compensation in a form acceptable 

7 to the Secretary to be provided by the City 

8 of Santa Clarita. 

9 (3) ACCEPTANCE OF OFFER.— 

10 (A) IN GENERAL.—The contract holder 

11 shall have 60 days from the later of the date on 

12 which the Secretary makes the offer under 

13 paragraph (1) or an agreement is negotiated 

14 under paragraph (2)(D) to accept the offer or 

15 agreement. 

16 (B) FAILURE TO ACCEPT OFFER.—If the 

17 contract holder does not accept the offer under 

18 paragraph (1) or if an agreement is not nego19 tiated under paragraph (2)(D) within the time 

20 period described in subparagraph (A), the con21 tracts shall remain in effect and no further ac22 tions shall taken be taken pursuant to this Act. 

23 SEC. 4. SALE OF LAND NEAR VICTORVILLE, CALIFORNIA. 

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

25 203 of the Federal Land Policy and Management Act of 


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1 1976 (43 U.S.C. 1712, 1713) and subject to subsections 

2 (b) through (f), not later than 2 years after the date of 

3 enactment of this Act, the Secretary shall place on the 

4 market and offer for sale by competitive bidding and in 

5 a manner designed to obtain the highest price possible, 

6 all right, title, and interest of the United States in and 

7 to the Victorville disposal area. 

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

9 keep the Map on file and available for public inspection 

10 in— 

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

12 Land Management; and 

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

14 Management located in Barstow, California. 

15 (c) RIGHT OF LOCAL LAND USE AUTHORITY TO

16 PURCHASE CERTAIN LAND.— 

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

18 subsection (a), the Secretary shall provide to the ap19 plicable local land use authority an exclusive pre20 emptive right, as determined under State law, to 

21 purchase any right, title, or interest of the United 

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

23 identified as ‘‘Area A’’ and ‘‘Area B’’ on the Map 

24 that is located within the jurisdiction of the local 

25 land use authority. 


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1 (2) TIMING.—A preemptive right under para2 graph (1) shall be in effect for a period of 30 days 

3 before the land is sold under subsection (a). 

4 (3) AUTHORITY.—During the period described 

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

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

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

8 in and to the land to be offered for sale at fair mar9 ket value, as determined by an appraisal conducted 

10 by the Secretary. 

11 (4) EXERCISING RIGHT.—If the local land use 

12 authority exercises the preemptive right under para13 graph (1), the Secretary shall convey the land to the 

14 local land use authority immediately on payment by 

15 the local land use authority of the entire purchase 

16 price of the applicable parcel of land. 

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

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

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

20 land described in paragraph (1) within the time pe21 riod described in paragraph (2) and to comply with 

22 any other terms and conditions as the Secretary may 

23 require shall terminate the preemptive right of the 

24 local land use authority with respect to the right, 

25 title, and interest offered for sale. 


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1 (d) WITHDRAWAL AND RESERVATION.— 

2 (1) WITHDRAWAL.—Subject to valid existing 

3 rights, the land described in subsection (a) is with4 drawn from— 

5 (A) entry, appropriation, or disposal under 

6 the public land laws; 

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

8 mining laws; and 

9 (C) operation of the mineral leasing, min10 eral materials, and geothermal leasing laws. 

11 (2) RESERVATION.—In any sale or other dis12 posal of land under this section, there shall be re13 served by the United States the right of the United 

14 States to prospect for, mine, and remove minerals 

15 from the conveyed land. 

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

17 otherwise required by law, before initiating efforts to dis18 pose of land under this section, the Secretary shall consult 

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

20 and surface owners in the jurisdiction in which the land 

21 is located regarding the potential impact of the disposal 

22 and other appropriate aspects of the disposal. 

23 (f) ACCOUNT.—The gross proceeds of a sale of land 

24 under subsection (a) shall be deposited in an account acVerDate Sep 11 2014 02:45 Dec 18, 2014 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5742.RDS H5742

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1 ceptable to the Secretary and available only for the pur2 poses of carrying out this Act. 

3 SEC. 5. CANCELLATION OF CONTRACTS. 

4 (a) IN GENERAL.—On completion of the compensa5 tion to the contract holder for the value of each contract 

6 in accordance with subsection (b), the Secretary shall can7 cel the contracts and withdraw those areas that were sub8 ject to the contracts from further mineral entry under all 

9 mineral leasing and sales authorities available to the Sec10 retary. 

11 (b) COMPENSATION; CANCELLATION; RETENTION OF

12 FUNDS.— 

13 (1) IN GENERAL.—Subject to paragraph (3), 

14 the Secretary shall provide to the contract holder the 

15 compensation agreed to under section 3(b) by dis16 bursement of amounts from the account, in 4 equal 

17 payments, as funds are available; 

18 (2) CANCELLATION.— 

19 (A) CONTRACT CA–20139.—On completion 

20 of the first 2 payments to the contract holder 

21 under paragraph (1), the Secretary shall cancel 

22 contract CA–20139. 

23 (B) CONTRACT CA–22901.—On completion 

24 of the remaining 2 payments to the contract 


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1 holder under paragraph (1), the Secretary shall 

2 cancel contract CA–22901. 

3 (3) RETENTION OF FUNDS.—The Secretary 

4 shall retain sufficient funds to cover the projected 

5 lost royalties determined under section 

6 3(a)(1)(A)(ii). 

7 (c) RELEASE AND WAIVER.—Upon acceptance and 

8 receipt of compensation under subsection (b), the contract 

9 holder shall waive all claims against the United States 

10 arising out of, or relating to, the cancellation of the con11 tracts. 

Passed the House of Representatives December 11, 

2014. 

Attest: KAREN L. HAAS, 

Clerk. 


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