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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5742 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5742

   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.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2014

  Mr. McKeon introduced the following bill; which was referred to the 
                     Committee on Natural Resources

_______________________________________________________________________

                                 A BILL

 
   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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Soledad Canyon Settlement Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) City of santa clarita.--The term ``City of Santa 
        Clarita'' means the City of Santa Clarita, California.
            (2) City of victorville.--The term ``City of Victorville'' 
        means the City of Victorville, California.
            (3) Contracts.--The term ``contracts'' means the Bureau of 
        Land Management mineral contracts numbered CA-20139 and CA-
        22901.
            (4) Contract holder.--The term ``contract holder'' means 
        the private party to the contracts, and any successors that 
        hold legal interests in the contracts.
            (5) County of san bernardino.--The term ``County of San 
        Bernardino'' means the County of San Bernardino, California.
            (6) Map.--The term ``Map'' means the map entitled 
        ``Victorville disposal area, California'' and dated March 2011.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (8) Victorville disposal area.--The term ``Victorville 
        disposal area'' means the 10,206.05 acres of land identified 
        for disposal in the West Mojave Land Management Plan (2006) of 
        the Bureau of Land Management and depicted on the Map.

SEC. 3. APPRAISAL; COMPENSATION TO CONTRACT HOLDER.

    (a) Appraisals.--
            (1) Contract appraisal.--
                    (A) In general.--Not later than 90 days after the 
                date of enactment of this Act, the Secretary shall 
                determine by mineral appraisal, using the discounted 
                cash flow method of appraisal (in accordance with the 
                appraisal guidelines for appraisals of large quantities 
                of mineral materials contained in section IV(E) of BLM 
                Mineral Material Appraisal Handbook H-3630)--
                            (i) the fair market value of the contracts; 
                        and
                            (ii) the amount of royalties the Federal 
                        Government would receive under the contracts 
                        over the 10-year period beginning on the date 
                        of enactment of this Act.
                    (B) Considerations.--In making the determination 
                under subparagraph (A), the Secretary shall assume 
                that--
                            (i) the contract holder has obtained all 
                        the permits and entitlements necessary to mine, 
                        produce, and sell sand and gravel under the 
                        contract; and
                            (ii) mining operations under the contract 
                        have commenced at the time of the 
                        determination, with maximum annual production 
                        volumes that--
                                    (I) are based on the projected 
                                supply and demand outlook at the time 
                                of determination; and
                                    (II) reflect depletion of the 
                                reserves that are subject to the 
                                contract within the effective periods 
                                of the contract.
                    (C) Donation.--The Secretary shall provide to the 
                contract holder and the City of Santa Clarita a list of 
                approved appraisers from which the parties shall select 
                and provide the funding to cover the costs of the 
                appraisal under subparagraph (A).
            (2) Land appraisal.--
                    (A) In general.--Not later than 90 days after the 
                date of enactment of this Act, the Secretary shall 
                determine by appraisal standards under existing laws 
                and regulations, the fair market value of the 
                Victorville disposal area on a net present value basis.
                    (B) Donation.--The Secretary shall provide to the 
                contract holder and the City of Santa Clarita a list of 
                approved appraisers from which the parties shall select 
                and provide the funding to cover the costs of the 
                appraisal under subparagraph (A).
    (b) Compensation.--
            (1) In general.--Subject to paragraph (2), not later than 
        30 days after completion of the appraisals under subsection 
        (a), the Secretary shall offer the contract holder compensation 
        for the cancellation of the contracts.
            (2) Conditions on offer.--An offer made by the Secretary 
        under paragraph (1) shall be subject to the following 
        conditions:
                    (A) The cancellation of the contracts and the 
                provision of compensation shall be contingent on the 
                availability of funds from the sale of the Victorville 
                disposal area under section 4, and any additional 
                compensation provided under subparagraph (D), as 
                determined necessary by the Secretary.
                    (B) The amount of compensation offered by the 
                Secretary under this subsection shall be equal to or 
                less than the fair market value of the contracts, as 
                determined under subsection (a)(1)(A)(i).
                    (C) The amount of compensation offered by the 
                Secretary under this subsection shall be equal to or 
                less than the projected revenues generated by the sale 
                of the Victorville disposal area under section 4, less 
                the projected lost royalties to the Federal Government 
                over the 10-year period beginning on the date of 
                enactment of this Act, as determined under subsection 
                (a)(1)(A)(ii).
                    (D) If the amount of projected revenues described 
                in subparagraph (C) is less than the fair market value 
                determined under subsection (a)(1)(A)(i), the Secretary 
                shall, not later than 60 days after the date on which 
                the Director of the Bureau of Land Management 
                determines the projected revenues under subparagraph 
                (C), negotiate an agreement with the contract holder 
                and the City of Santa Clarita to provide to the 
                Secretary amounts equal to the difference, in the form 
                of--
                            (i) compensation to be received by the 
                        contract holder; and
                            (ii) compensation in a form acceptable to 
                        the Secretary to be provided by the City of 
                        Santa Clarita.
            (3) Acceptance of offer.--
                    (A) In general.--The contract holder shall have 60 
                days from the later of the date on which the Secretary 
                makes the offer under paragraph (1) or an agreement is 
                negotiated under paragraph (2)(D) to accept the offer 
                or agreement.
                    (B) Failure to accept offer.--If the contract 
                holder does not accept the offer under paragraph (1) or 
                if an agreement is not negotiated under paragraph 
                (2)(D) within the time period described in subparagraph 
                (A), the contracts shall remain in effect and no 
                further actions shall taken be taken pursuant to this 
                Act.

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

    (a) In General.--Notwithstanding sections 202 and 203 of the 
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712, 1713) 
and subject to subsections (b) through (f), not later than 2 years 
after the date of enactment of this Act, the Secretary shall place on 
the market and offer for sale by competitive bidding and in a manner 
designed to obtain the highest price possible, all right, title, and 
interest of the United States in and to the Victorville disposal area.
    (b) Availability of Map.--The Secretary shall keep the Map on file 
and available for public inspection in--
            (1) the office of the Director of the Bureau of Land 
        Management; and
            (2) the district office of the Bureau of Land Management 
        located in Barstow, California.
    (c) Right of Local Land Use Authority To Purchase Certain Land.--
            (1) In general.--Before a sale of land under subsection 
        (a), the Secretary shall provide to the applicable local land 
        use authority an exclusive preemptive right, as determined 
        under State law, to purchase any right, title, or interest of 
        the United States in and to any portion of the parcels of land 
        identified as ``Area A'' and ``Area B'' on the Map that is 
        located within the jurisdiction of the local land use 
        authority.
            (2) Timing.--A preemptive right under paragraph (1) shall 
        be in effect for a period of 30 days before the land is sold 
        under subsection (a).
            (3) Authority.--During the period described in paragraph 
        (2), the local land use authority may purchase some or all of 
        the right, title, and interest of the United States, as 
        provided in subsection (a), in and to the land to be offered 
        for sale at fair market value, as determined by an appraisal 
        conducted by the Secretary.
            (4) Exercising right.--If the local land use authority 
        exercises the preemptive right under paragraph (1), the 
        Secretary shall convey the land to the local land use authority 
        immediately on payment by the local land use authority of the 
        entire purchase price of the applicable parcel of land.
            (5) Failure to pay.--Failure by the local land use 
        authority to purchase and pay for the right, title, and 
        interest of the United States in and to the land described in 
        paragraph (1) within the time period described in paragraph (2) 
        and to comply with any other terms and conditions as the 
        Secretary may require shall terminate the preemptive right of 
        the local land use authority with respect to the right, title, 
        and interest offered for sale.
    (d) Withdrawal and Reservation.--
            (1) Withdrawal.--Subject to valid existing rights, the land 
        described in subsection (a) is withdrawn from--
                    (A) entry, appropriation, or disposal under the 
                public land laws;
                    (B) location, entry, and patent under the mining 
                laws; and
                    (C) operation of the mineral leasing, mineral 
                materials, and geothermal leasing laws.
            (2) Reservation.--In any sale or other disposal of land 
        under this section, there shall be reserved by the United 
        States the right of the United States to prospect for, mine, 
        and remove minerals from the conveyed land.
    (e) Consultation.--In addition to any consultation otherwise 
required by law, before initiating efforts to dispose of land under 
this section, the Secretary shall consult with the City of Victorville, 
the County of San Bernardino, and surface owners in the jurisdiction in 
which the land is located regarding the potential impact of the 
disposal and other appropriate aspects of the disposal.
    (f) Account.--The gross proceeds of a sale of land under subsection 
(a) shall be deposited in an account acceptable to the Secretary and 
available only for the purposes of carrying out this Act.

SEC. 5. CANCELLATION OF CONTRACTS.

    (a) In General.--On completion of the compensation to the contract 
holder for the value of each contract in accordance with subsection 
(b), the Secretary shall cancel the contracts and withdraw those areas 
that were subject to the contracts from further mineral entry under all 
mineral leasing and sales authorities available to the Secretary.
    (b) Compensation; Cancellation; Retention of Funds.--
            (1) In general.--Subject to paragraph (3), the Secretary 
        shall provide to the contract holder the compensation agreed to 
        under section 3(b) by disbursement of amounts from the account, 
        in 4 equal payments, as funds are available;
            (2) Cancellation.--
                    (A) Contract ca-20139.--On completion of the first 
                2 payments to the contract holder under paragraph (1), 
                the Secretary shall cancel contract CA-20139.
                    (B) Contract ca-22901.--On completion of the 
                remaining 2 payments to the contract holder under 
                paragraph (1), the Secretary shall cancel contract CA-
                22901.
            (3) Retention of funds.--The Secretary shall retain 
        sufficient funds to cover the projected lost royalties 
        determined under section 3(a)(1)(A)(ii).
    (c) Release and Waiver.--Upon acceptance and receipt of 
compensation under subsection (b), the contract holder shall waive all 
claims against the United States arising out of, or relating to, the 
cancellation of the contracts.
                                 <all>
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