I
105TH CONGRESS
1ST SESSION
H. R. 919
To establish fair market value pricing of Federal natural assets, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 4, 1997
Mr. MILLER of California (for himself, Mr. SANDERS, Ms. WOOLSEY, Mr.
MEEHAN, Mr. KENNEDY of Rhode Island, Mr. HINCHEY, Mr. YATES, Mr.
BROWN of California, Mr. ANDREWS, Mrs. LOWEY, Mr. FRANK of Massa-
chusetts, Ms. PELOSI, Mr. NADLER, Mr. MCGOVERN, Mr. SABO, Mr.
KENNEDY of Massachusetts, Ms. RIVERS, Mr. STARK, Mrs. MALONEY of
New York, Mr. VENTO, Ms. FURSE, Ms. ROYBAL-ALLARD, Mr. EVANS,
Mr. MARKEY, Mr. ABERCROMBIE, Ms. SLAUGHTER, Mr. SCHUMER, Mr.
OLVER, Mr. CLAY, Mr. PORTER, Mr. LEWIS of Georgia, Ms. ESHOO, Mr.
WAXMAN, Mr. GEJDENSON, Ms. LOFGREN, and Ms. DELAURO) intro-
duced the following bill; which was referred to the Committee on Re-
sources, and in addition to the Committees on Agriculture, and the Budg-
et, 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 establish fair market value pricing of Federal natural
assets, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Public Resources Deficit Reduction Act of 1997’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
TITLE I—GENERAL PROVISIONS
Sec. 101. Fair market value for resource disposal.
Sec. 102. Fees from program beneficiaries.
Sec. 103. Revenues from sale, lease, and transfer of assets.
TITLE II—REVENUE FROM MINING CLAIMS
Sec. 201. Royalty.
Sec. 202. Abandoned minerals mine reclamation fund.
Sec. 203. Limitation on patent issuance.
Sec. 204. Mining claim maintenance requirements.
Sec. 205. Definitions.
TITLE III—USE OR DISPOSAL OF FEDERAL NATURAL
RESOURCES
Sec. 301. Annual domestic livestock grazing fee.
Sec. 302. Elimination of below-cost sales of timber from national forest system
lands.
Sec. 303. Timberland suitability.
Sec. 304. Cost of water used to produce crops on production flexibility contract
acreage.
Sec. 305. Reduction in maximum amount of payments under agricultural as-
sistance programs to reflect receipt of Federal irrigation water.
Sec. 306. Off budget expenditures.
Sec. 307. Deposit of Taylor Grazing Act receipts in Treasury.
Sec. 308. Repeal of livestock feed assistance program.
Sec. 309. Right-of-way permits.
Sec. 310. Oil and gas rentals.
Sec. 311. Improvement of minerals management service royalty collection.
TITLE IV—NATIONAL PARK CONCESSIONS
Sec. 401. Findings and policy.
Sec. 402. Definitions.
Sec. 403. Repeal of Concessions Policy Act of 1965.
Sec. 404. Concession contracts and other authorizations.
Sec. 405. Competitive selection process.
Sec. 406. Franchise fees.
Sec. 407. Use of franchise fees.
Sec. 408. Duration of contract.
Sec. 409. Transfer of contract.
Sec. 410. Protection of concessioner investment.
Sec. 411. Rates and charges to public.
Sec. 412. Concessioner performance evaluation.
Sec. 413. Recordkeeping requirements.
Sec. 414. Exemption from certain lease requirements.
Sec. 415. No effect on ANILCA provisions.
Sec. 416. Implementation.
Sec. 417. Authorization of appropriations.
TITLE I—GENERAL PROVISIONS
SEC. 101. FAIR MARKET VALUE FOR RESOURCE DISPOSAL.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, no timber, minerals, forage, or other natural
resource owned by the United States, no Federally owned
water, and no hydroelectric energy generated at a Federal
facility may be sold, leased, or otherwise disposed of by
any department, agency, or instrumentality of the United
States for an amount less than fair market value, as deter-
mined by such department, agency, or instrumentality.
(b) EXISTING CONTRACTS, LEASES, ETC.—
(1) EXISTING ARRANGEMENTS.—The provisions
of subsection (a) shall not apply to any existing con-
tract, lease, or other binding arrangement entered
into before the date of the enactment of this Act un-
less such contract, lease or other arrangement is re-
newed or extended after such date of enactment.
(2) ARRANGEMENTS ENTERED INTO IN 5-YEAR
PERIOD.—The provisions of subsection (a) shall take
effect on the date 5 years after the date of enact-
ment of this Act in the case of any contract, lease,
or other binding arrangement entered into or re-
newed or extended after such date but before the
date 5 years after such date.
(3) ARRANGEMENTS ENTERED INTO AFTER 5
YEARS.—The provisions of subsection (a) shall apply
immediately to all contracts, leases, or other binding
arrangements entered into or renewed or extended
after the date 5 years after the enactment of this
Act.
(c) WAIVER.—The President may waive the require-
ments of subsection (a) whenever the President deter-
mines that such waiver is in the national interest. The
President shall submit a notice to Congress containing an
explanation of the reasons for any such determination
within 60 days after the date of the determination.
SEC. 102. FEES FROM PROGRAM BENEFICIARIES.
(a) GENERAL AUTHORITY.—The Secretary of the In-
terior and the Secretary of Agriculture are each author-
ized to establish and collect from persons subject to pro-
grams administered by each such Secretary such user fees
as may be necessary to reimburse the United States for
the expenses incurred in administering such programs.
The aggregate amount of fees that may be assessed and
collected under this section by each such Secretary in any
fiscal year from persons subject to any such program shall
not exceed the aggregate amount of expenses incurred in
administering such program in such fiscal year.
(b) EFFECTIVE DATE; OIL AND GAS LEASE TRANS-
FERS.—The Secretary of the Interior and the Secretary
of Agriculture may, by rule, establish the applicable effec-
tive date of any fee to be imposed under this section, ex-
cept that fees shall be established and collected under this
section from each person receiving a transfer of a Federal
onshore oil and gas lease after the date of the enactment
of this section.
SEC. 103. REVENUES FROM SALE, LEASE, AND TRANSFER
OF ASSETS.
(a) IN GENERAL.—Section 1105(a) of chapter 11 of
title 31, United States Code, is amended by adding at the
end the following new paragraph:
‘‘(31) a separate statement of—
‘‘(A) projected revenues during the fiscal
year for which the budget is submitted from the
anticipated sale, lease, or transfer of any phys-
ical asset; and
‘‘(B) the estimated price at which this
asset or a comparable asset would be sold in an
arms length transaction in the private sector;
asset by asset and aggregated by major functional
category.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective for fiscal year 1998
and shall be fully reflected in the fiscal year 1999 budget
submitted by the President in February 1998 as required
by section 1105(a) of title 31, United States Code.
TITLE II—REVENUE FROM
MINING CLAIMS
SEC. 201. ROYALTY.
(a) RESERVATION OF ROYALTY.—Each person pro-
ducing locatable minerals (including associated minerals)
from any mining claim located under the general mining
laws, or mineral concentrates derived from locatable min-
erals produced from any mining claim located under the
general mining laws, as the case may be, shall pay a roy-
alty of 5 percent of the net smelter return from the pro-
duction of such locatable minerals or concentrates, as the
case may be.
(b) ROYALTY PAYMENTS.—Each person responsible
for making royalty payments under this section shall make
such payments to the Secretary not later than 30 days
after the end of the calendar month in which the mineral
or mineral concentrates are produced and first placed in
marketable condition, consistent with prevailing practices
in the industry.
(c) REPORTING REQUIREMENTS.—All persons hold-
ing mining claims located under the general mining laws
shall provide to the Secretary such information as deter-
mined necessary by the Secretary to ensure compliance
with this section, including, but not limited to, quarterly
reports, records, documents, and other data. Such reports
may also include, but not be limited to, pertinent technical
and financial data relating to the quantity, quality, and
amount of all minerals extracted from the mining claim.
(d) AUDITS.—The Secretary is authorized to conduct
such audits of all persons holding mining claims located
under the general mining laws as he deems necessary for
the purposes of ensuring compliance with the require-
ments of this section.
(e) DISPOSITION OF RECEIPTS.—All receipts from
royalties collected pursuant to this section shall be depos-
ited into the Fund established under section 202.
(f) COMPLIANCE.—Any person holding mining claims
located under the general mining laws who knowingly or
willfully prepares, maintains, or submits false, inaccurate,
or misleading information required by this section, or fails
or refuses to submit such information, shall be subject to
a civil penalty of not more than $10,000 imposed by the
Secretary.
(g) EFFECTIVE DATE.—This section shall take effect
with respect to minerals produced from a mining claim
in calendar months beginning after the enactment of this
Act.
SEC. 202. ABANDONED MINERALS MINE RECLAMATION
FUND.
(a) ESTABLISHMENT.—(1) There is established on
the books of the Treasury of the United States a trust
fund to be known as the Abandoned Minerals Mine Rec-
lamation Fund (hereinafter referred to as the Fund). The
Fund shall be administered by the Secretary.
(2) The Secretary shall notify the Secretary of the
Treasury as to what portion of the Fund is not, in his
judgment, required to meet current withdrawals. The Sec-
retary of the Treasury shall invest such portion of the
Fund in public debt securities with maturities suitable for
the needs of such Fund and bearing interest at rates de-
termined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding mar-
ketplace obligations of the United States of comparable
maturities. The income on such investments shall be cred-
ited to, and from a part of, the Fund.
(b) AMOUNTS.—The following amounts shall be cred-
ited to the Fund for the purposes of this title:
(1) All moneys received from royalties under
section 201 and the mining claim maintenance fee
under section 204 of this Act.
(2) All donations by persons, corporations, as-
sociations, and foundations for the purposes of this
title.
(c) USE AND OBJECTIVES OF THE FUND.— The Sec-
retary is, subject to appropriations, authorized to use
moneys in the Fund for the reclamation and restoration
of land and water resources adversely affected by past
mineral (other than coal and fluid minerals) and mineral
material mining, including but not limited to, any of the
following:
(1) Reclamation and restoration of abandoned
surface mined areas.
(2) Reclamation and restoration of abandoned
milling and processing areas.
(3) Sealing, filling, and grading abandoned deep
mine entries.
(4) Planting of land adversely affected by past
mining to prevent erosion and sedimentation.
(5) Prevention, abatement, treatment and con-
trol of water pollution created by abandoned mine
drainage.
(6) Control of surface subsidence due to aban-
doned deep mines.
(7) Such expenses as may be necessary to ac-
complish the purposes of this section.
(d) ELIGIBLE AREAS.—(1) Land and waters eligible
for reclamation expenditures under this section shall be
those within the boundaries of States that have lands sub-
ject to the general mining laws—
(A) which were mined or processed for minerals
and mineral materials or which were affected by
such mining or processing, and abandoned or left in
an inadequate reclamation status prior to the date
of enactment of this Act;
(B) for which the Secretary makes a determina-
tion that there is no continuing reclamation respon-
sibility under State or Federal laws; and
(C) for which it can be established that such
lands do not contain minerals which could economi-
cally be extracted through the reprocessing or remin-
ing of such lands.
(2) Notwithstanding paragraph (1), sites and areas
designated for remedial action pursuant to the Uranium
Mill Tailings Radiation Control Act of 1978 (42 U.S.C.
7901 and following) or which have been listed for remedial
action pursuant to the Comprehensive Environmental Re-
sponse Compensation and Liability Act of 1980 (42
U.S.C. 9601 and following) shall not be eligible for ex-
penditures from the Fund under this section.
(e) FUND EXPENDITURES.—Moneys available from
the Fund may be expended directly by the Director, Bu-
reau of Land Management. The Director may also make
such money available through grants made to the Chief
of the United States Forest Service, and the Director of
the National Park Service.
(f) AUTHORIZATION OF APPROPRIATIONS.—Amounts
credited to the Fund are authorized to be appropriated
for the purpose of this title without fiscal year limitation.
SEC. 203. LIMITATION ON PATENT ISSUANCE.
No patent shall be issued by the United States for
any mining or mill site claim located under the general
mining laws unless the Secretary determines that, for the
claim concerned a patent application was filed with the
Secretary on or before September 30, 1994, and all re-
quirements established under sections 2325 and 2326 of
the Revised Statutes (30 U.S.C. 29 and 30) for vein or
lode claims and sections 2329, 2330, 2331, and 2333 of
the Revised Statutes (30 U.S.C. 35, 36 and 37) for placer
claims, and section 2337 of the Revised Statutes (30
U.S.C. 42) for mill site claims, as the case may be, were
fully complied with by the applicant by that date.
SEC. 204. MINING CLAIM MAINTENANCE REQUIREMENTS.
(a) IN GENERAL.—(1) Effective October 1, 1998, the
holder of each mining claim located under the general min-
ing laws prior to the date of enactment shall pay to the
Secretary an annual claim maintenance fee of $100 per
claim per calendar year.
(2) The holder of each mining claim located under
the general mining laws subsequent to the date of enact-
ment shall pay to the Secretary an annual claim mainte-
nance fee of $125 per claim per calendar year.
(b) PURCHASING POWER ADJUSTMENT.—The Sec-
retary shall adjust the amount of the claim maintenance
fee payable pursuant to subsection (a) for changes in the
purchasing power of the dollar after the calendar year
1993, employing the Consumer Price Index for all urban
consumers published by the Department of Labor as the
basis for adjustment, and rounding according to the ad-
justment process of conditions of the Federal Civil Pen-
alties Inflation Adjustment Act of 1990.
(c) TIME OF PAYMENT.—Each claim holder shall pay
the claim maintenance fee payable under subsection (a)
for any year on or before August 31 of each year, except
that for the initial calendar year in which the location is
made, the initial claim maintenance fee shall be paid at
the time the location notice is recorded with the Bureau
of Land Management.
(d) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTE-
NANCE FEES UNDER ENERGY POLICY ACT OF 1992.—
The section shall not apply to any oil shale claims for
which a fee is required to be paid under section 2511(e)(2)
of the Energy Policy Act of 1992 (30 U.S.C. 242(e)(2)).
(e) CLAIM MAINTENANCE FEES PAYABLE UNDER
1993 ACT.—The claim maintenance fees payable under
this section for any period with respect to any claim shall
be reduced by the amount of the claim maintenance fees
paid under section 10101 of the Omnibus Budget Rec-
onciliation Act of 1993 with respect to that claim and with
respect to the same period.
(f) WAIVER.—(1) The claim maintenance fee re-
quired under this section may be waived for a claim holder
who certifies in writing to the Secretary that on the date
the payment was due, the claim holder and all related par-
ties held not more than 10 mining claims on land open
to location. Such certification shall be made on or before
the date on which payment is due.
(2) For purposes of this subsection, with respect to
any claim holder, the term ‘‘related party’’ means each
of the following:
(A) The spouse and dependent children (as de-
fined in section 152 of the Internal Revenue Code of
1986), of the claim holder.
(B) Any affiliate of the claim holder.
(g) CO-OWNERSHIP.—Upon the failure of any one or
more of several co-owners to contribute such co-owner or
owners portion of the fee under this section, any co-owner
who has paid such fee may, after the payment due date,
give the delinquent co-owner or owners notice of such fail-
ure in writing (or by publication in the newspaper nearest
the claim for at least once a week for at least 90 days).
If at the expiration of 90 days after such notice in writing
or by publication, any delinquent co-owner fails or refused
to contribute his portion, his interest, in the claim shall
become the property of the co-owners who have paid the
required fee.
SEC. 205. DEFINITIONS.
As used in this title:
(1) The term ‘‘affiliate’’ means, with respect to
any person, each of the following:
(A) Any partner of such person.
(B) Any person owning at least 10 percent
of the voting shares of such person.
(C) Any person who controls, is controlled
by, or is under common control with such per-
son.
(2) The term ‘‘locatable minerals’’ means min-
erals not subject to disposition under any of the fol-
lowing:
(A) The Mineral Leasing Act (30 U.S.C.
181 and following).
(B) The Geothermal Steam Act of 1970
(30 U.S.C. 100 and following).
(C) The Act of July 31, 1947, commonly
known as the Materials Act of 1947 (30 U.S.C.
601 and following).
(D) The Mineral Leasing for Acquired
Lands Act (30 U.S.C. 351 and following).
(3) The term ‘‘net smelter return’’ has the
same meaning provided in section 613 of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 613) for
‘‘gross income from mining’’.
(4) The term ‘‘Secretary’’ means the Secretary
of the Interior.
(5) The term ‘‘general mining laws’’ means
those Acts which generally comprise chapters 2,
12A, and 16, and sections 161 and 162 of title 30,
United States Code.
TITLE III—USE OR DISPOSAL OF
FEDERAL NATURAL RESOURCES
SEC. 301. ANNUAL DOMESTIC LIVESTOCK GRAZING FEE.
The Federal Land Policy and Management Act of
1976 is amended by inserting after section 401 (43 U.S.C.
1751) the following new section:
‘‘SEC. 401A. ESTABLISHMENT OF FAIR MARKET VALUE
GRAZING FEES.
‘‘(a) ESTABLISHMENT OF ANNUAL DOMESTIC LIVE-
STOCK GRAZING FEE.—(1) Notwithstanding any other
provision of law, the Secretary of Agriculture, with respect
to National Forest System lands in the 16 contiguous
Western States (except National Grasslands) administered
by the Forest Service where domestic livestock grazing is
permitted under applicable law, shall establish an annual
domestic livestock grazing fee equal to fair market value.
‘‘(2) Notwithstanding any other provision of law, the
Secretary of the Interior, with respect to public domain
lands administered by the Bureau of Land Management
where domestic livestock grazing is permitted under appli-
cable law, shall establish an annual domestic livestock
grazing fee equal to fair market value.
‘‘(b) CALCULATION OF FAIR MARKET VALUE.—(1)
For purposes of determining the annual domestic livestock
grazing fee under this section, the Secretary concerned
shall calculate fair market value using the following for-
mula:
Fair Market Value=
Appraised Base Value×Forage Value Index
100
‘‘(2) For purposes of the formula in paragraph (1):
‘‘(A) The term ‘Forage Value Index’ means the
Forage Value Index (FVI) computed annually by the
Economic Research Service, United States Depart-
ment of Agriculture, and set with the 1997 FVI
equal to 100; and
‘‘(B) The term ‘Appraised Base Value’ means
the 1983 Appraisal Value conclusions for mature
cattle and horses (expressed in dollars per head or
per month), as determined in the 1986 report pre-
pared jointly by the Secretary of Agriculture and the
Secretary of the Interior entitled ‘Grazing Fee Re-
view and Evaluation’, dated February 1986, on a
west-wide basis using the lowest appraised value of
the pricing areas adjusted for advanced payment
and indexed to 1997.
‘‘(c) LIMITATION
ON FLUCTUATIONS
OF FEES.—
Notwithstanding the amount calculated under subsection
(b) for a year, the domestic livestock grazing fee charged
for any given year shall not increase nor decrease by more
than 33.3 percent from the domestic livestock grazing fee
for the previous year.
‘‘(d) EFFECT
ON EXECUTIVE ORDER.—Executive
Order No. 12548, dated February 14, 1986 (51 Fed. Reg.
5985), shall not apply to grazing fees established pursuant
to this section.
‘‘(e) EFFECT ON GRAZING ADVISORY BOARDS.—The
grazing advisory boards established pursuant to Secretar-
ial action, notice of which was published in the Federal
Register on May 14, 1986 (51 Fed. Reg. 17874), are abol-
ished, effective as of the date of the enactment of this sec-
tion, and the advisory functions exercised by such boards
shall be exercised only by the appropriate councils estab-
lished under section 309 of this Act.
‘‘(f) USE
OF FEES
AND RANGE IMPROVEMENT
FUNDS.—Funds appropriated pursuant to section 5 of the
Public Rangelands Improvement Act of 1978 (43 U.S.C.
1904) or any other provision of law related to disposition
of the Federal share of receipts from fees for grazing on
public domain lands or National Forest lands in the 16
contiguous western States shall be used for restoration
and enhancement of fish and wildlife habitat, for restora-
tion and improved management of riparian areas, and for
implementation and enforcement of applicable land man-
agement plans, allotment plans, and regulations regarding
the use of such lands for domestic livestock grazing. Such
funds shall be distributed as the Secretary concerned con-
siders advisable after consultation and coordination with
the advisory councils established pursuant to section 309
of this Act and other interested parties.
‘‘(g) COMMENCEMENT DATE FOR FEES.—The first
annual domestic livestock grazing fee required by this sec-
tion shall apply with respect to the grazing season com-
mencing on March 1, 1998.
SEC. 302. ELIMINATION OF BELOW-COST SALES OF TIMBER
FROM NATIONAL FOREST SYSTEM LANDS.
(a) IN GENERAL.—The National Forest Management
Act of 1976 is amended by inserting after section 14 (16
U.S.C. 472a) the following new section:
‘‘SEC. 14A. ELIMINATION OF BELOW-COST TIMBER SALES
FROM NATIONAL FOREST SYSTEM LANDS.
‘‘(a) REQUIREMENT THAT SALE REVENUES EXCEED
COSTS.—On and after October 1, 2002, in appraising tim-
ber and setting a minimum bid for trees, portions of trees,
or forest products located on National Forest System
lands proposed for sale under section 14 or any other pro-
vision of law, the Secretary of Agriculture shall ensure
that the estimated cash returns to the United States
Treasury from each sale exceed the estimated costs to be
incurred by the Federal Government in the preparation
of the sale or as a result of the sale.
‘‘(b) COSTS TO BE CONSIDERED.—For purposes of
estimating under this section the costs to be incurred by
the Federal Government from each timber sale, the Sec-
retary shall assign to the sale the following costs:
‘‘(1) The actual appropriated expenses for sale
preparation and harvest administration incurred or
to be incurred by the Federal Government from the
sale and the payments to counties to be made as a
result of the sale.
‘‘(2) A portion of the annual timber resource
planning costs, silvicultural examination costs, other
resource support costs, road design and construction
costs, road maintenance costs, transportation plan-
ning costs, appropriated reforestation costs, timber
stand improvement costs, forest genetics costs, gen-
eral administrative costs (including administrative
costs of the national and regional offices of the For-
est Service), and facilities construction costs of the
Federal Government directly or indirectly related to
the timber harvest program conducted on National
Forest System lands.
‘‘(c) METHOD OF ALLOCATING COSTS.—The Sec-
retary shall allocate the costs referred to in subsection
(b)(2) to each unit of the National Forest System, and
each proposed timber sale in such unit, on the basis of
harvest volume.
‘‘(d) TRANSITIONAL REQUIREMENTS.—To ensure the
elimination of all below-cost timber sales by the date speci-
fied in subsection (a), the Secretary shall progressively re-
duce the number and size of below-cost timber sales on
National Forest System lands as follows:
‘‘(1) In fiscal years 1998 and 1999, the quan-
tity of timber sold in below-cost timber sales on Na-
tional Forest System lands shall not exceed 75 per-
cent of the quantity of timber sold in such sales in
the preceding fiscal year.
‘‘(2) In fiscal year 2000, the quantity of timber
sold in below-cost timber sales on National Forest
System lands shall not exceed 65 percent of the
quantity of timber sold in such sales in fiscal year
1998.
‘‘(3) In fiscal year 2001, the quantity of timber
sold in below-cost timber sales on National Forest
System lands shall not exceed 50 percent of the
quantity of timber sold in such sales in the fiscal
year 2000.
‘‘(e) BELOW-COST TIMBER SALE.—For purposes of
this section, the term ‘below-cost timber sale’ means a sale
of timber in which the costs to be incurred by the Federal
Government exceed the cash returns to the United States
Treasury.’’.
(b) FINDINGS.—Section 2 of the Forest and Range-
land Renewable Resources Planning Act of 1974 (16
U.S.C. 1600) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(6);
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(8) the practice of selling timber from Na-
tional Forest System lands for less than the cost to
the Federal Government of growing the timber and
preparing the timber for sale is not in the best inter-
ests of the United States, and such below-cost sales
should be eliminated in an orderly manner to achieve
a more economically and environmentally sound tim-
ber program for the National Forest System.’’.
SEC. 303. TIMBERLAND SUITABILITY.
Subsection (k) of section 6 of the Forest and Range-
land Renewable Resources Planning Act of 1974 (16
U.S.C. 1604) is amended to read as follows:
‘‘(k) DETERMINATION OF SUITABILITY OF LANDS
FOR TIMBER PRODUCTION.—
‘‘(1) DETERMINATION REQUIRED.—In revising
land management plans developed pursuant to this
section, the Secretary shall identify lands within the
management area that are not suited for timber pro-
duction based on physical, economic, or other rel-
evant factors. The Secretary shall review the identi-
fications made under this paragraph during each re-
vision of the forest plan.
‘‘(2) 
EVIDENCE
OF
ECONOMIC
UNSUITABILITY.—The Secretary shall identify lands
as economically unsuitable for timber production
under paragraph (1) if—
‘‘(A) the expected cash returns to the
United States Treasury that would result from
the sale of standing timber on the lands do not
exceed the expected costs that would be in-
curred by the Federal Government in prepara-
tion or as a result of such sales; or
‘‘(B) the expected cash returns to the
United States Treasury that would result from
the sale of subsequent timber stands on the
lands do not exceed the expected costs that
would be incurred by the Federal Government
in preparation or as a result of such sales.
‘‘(3) COSTS TO BE CONSIDERED.—For purposes
of estimating under paragraph (2) the costs to be in-
curred by the Federal Government from timber sales
conducted on the lands being reviewed, the Secretary
shall assign to sales on such lands the following
costs:
‘‘(A) The appropriated expenses for sale
preparation and harvest administration that
would be incurred by the Federal Government
from such sales and the payments to counties
that would be made as a result of such sales.
‘‘(B) A portion of the annual timber re-
source planning costs, silvicultural examination
costs, other resource support costs, road design
and construction costs, road maintenance costs,
transportation planning costs, appropriated re-
forestation costs, timber stand improvement
costs, forest genetics costs, general administra-
tive costs (including administrative costs of the
national and regional offices of the Forest Serv-
ice), and facilities construction costs of the Fed-
eral Government directly or indirectly related to
the timber harvest program conducted on Na-
tional Forest System lands.
‘‘(4) METHOD
OF
ALLOCATING
COSTS.—The
Secretary shall allocate the costs referred to in para-
graph (3)(B) to each unit of the National Forest
System on the basis of harvest volume.
‘‘(5) PROHIBITION ON TIMBER HARVESTS ON
UNSUITABLE LANDS.—In the case of lands identified
under paragraph (1) as unsuitable for timber pro-
duction, no timber harvesting shall occur on such
lands for a period of 10 years or the life of the plan,
whichever is greater.
‘‘(6) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) The term ‘standing timber’ means an
existing stand of timber that has not been har-
vested.
‘‘(B) The term ‘subsequent timber stand’
means a regenerated stand of timber produced
on land from which standing timber has been
harvested.’’.
SEC. 304. COST OF WATER USED TO PRODUCE CROPS ON
PRODUCTION FLEXIBILITY CONTRACT ACRE-
AGE.
Section 9 of the Act of August 4, 1939 (commonly
known as the Reclamation Project Act of 1939; 43 U.S.C.
485h) is amended by inserting at the end thereof the fol-
lowing new subsection:
‘‘(g)(1) Any contract entered into under authority of
this section or any other provision of Federal reclamation
law shall require that the organization agree by contract
with the Secretary to pay full cost for the delivery of water
used in the production of any contract commodity on acre-
age subject to a production flexibility contract entered into
under section 111 of the Agricultural Market Transition
Act (7 U.S.C. 7211).
‘‘(2) The Secretary shall announce the amount of the
full cost payment for the succeeding year on or before July
1 of each year.
‘‘(3) As used in this subsection:
‘‘(A) The term ‘full cost’ has the meaning given
such term in section 202(3) of the Reclamation Re-
form Act of 1982 (43 U.S.C. 390bb(3)).
‘‘(B) The term ‘contract commodity’ has the
meaning given such term in section 102(5) of the
Agricultural Market Transition Act (7 U.S.C.
7202(5)).
‘‘(4) Paragraph (1) shall apply to any contract en-
tered into or amended after the date of the enactment of
this subsection.’’.
SEC. 305. REDUCTION IN MAXIMUM AMOUNT OF PAYMENTS
UNDER AGRICULTURAL ASSISTANCE PRO-
GRAMS TO REFLECT RECEIPT OF FEDERAL
IRRIGATION WATER.
(a) PRICE SUPPORT PROGRAMS.—Title X of the
Food Security Act of 1985 is amended—
(1) by redesignating sections 1001D (7 U.S.C.
1308–4) and 1001E (7 U.S.C. 1308–5) as sections
1001E and 1001F, respectively; and
(2) by inserting after section 1001C (7 U.S.C.
1308–3) the following new section:
‘‘SEC. 1001D. REDUCTION OF PAYMENT LIMITATIONS TO
REFLECT RECEIPT OF FEDERAL IRRIGATION
WATER.
‘‘(a) REDUCTION
OF PAYMENT LIMITATIONS RE-
QUIRED.—If a person subject to section 1001 receives
Federal irrigation water for agricultural purposes from the
operation of a Federal reclamation project, the payment
limitations specified in paragraphs (1) and (2) of such sec-
tion and applicable to such person shall be reduced for
the year in which such person receives irrigation water.
The amount of the reduction shall be equal to the total
same year, Federal irrigation water for agricul-
tural purposes from the operation of a Federal
reclamation project, the payment limitation
specified in paragraph (2) for such person shall
be reduced for that year. The amount of the re-
duction shall be equal to the total value during
that year of the subsidy portion of the contract
with such person for the delivery of the irriga-
tion water.
‘‘(B) DETERMINATION
OF
SUBSIDY
POR-
TION OF WATER CONTRACT.—The subsidy por-
tion of an irrigation water delivery contract is
equal to the amount by which full cost for the
delivery of the irrigation water exceeds the ac-
tual contract price for the delivery of the water.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph, the terms ‘contract’, ‘full cost’, ‘irri-
gation water’, and ‘project’ have the meanings
given such terms in section 202 of the Reclama-
tion Reform Act of 1982 (43 U.S.C. 390bb).’’.
(c) 
CONFORMING
AMENDMENTS.—Section
1001(5)(A) of the Food Security Act of 1985 (7 U.S.C.
1308(5)(A)) is amended by striking ‘‘through 1001C’’ and
inserting ‘‘through 1001D’’.
SEC. 306. OFF BUDGET EXPENDITURES.
(a) KNUTSON-VANDENBERG FUND.—Section 3 of
the Act of June 9, 1930 (commonly known as the
Knutson-Vandenberg Act; 16 U.S.C. 576b), is amended
by striking ‘‘and shall constitute a special fund, which is
hereby appropriated and made available until expended,’’
in the second sentence and inserting ‘‘and are authorized
to be appropriated’’.
(b) DEPOSITS FROM BRUSH DISPOSAL.—The para-
graph relating to deposits from brush disposal under the
heading ‘‘FOREST SERVICE’’ in the Act of August 11, 1916
(39 Stat. 462; 16 U.S.C. 490), is amended by striking
‘‘and constitute a special fund, which is hereby appro-
priated and shall remain available until expended’’ and in-
serting ‘‘and are authorized to be appropriated for the
purpose of disposing of such brush and other debris’’.
(c) NATIONAL FORESTS ROADS AND TRAILS.—Sec-
tion 7 of Public Law 88–657 (commonly known as the
Forest Roads and Trails Act; 16 U.S.C. 538) is amended
by striking ‘‘may be placed in a fund to be available’’ and
inserting ‘‘are authorized to be appropriated’’.
(d) TIMBER SALVAGE SALE FUND.—Section 303(d)
of Public Law 96–451 (16 U.S.C. 1606a) is amended by
striking ‘‘The Secretary of Agriculture’’ and inserting ‘‘In
such amounts as are provided in advance in appropriations
Acts, the Secretary of Agriculture’’.
SEC. 307. DEPOSIT OF TAYLOR GRAZING ACT RECEIPTS IN
TREASURY.
Section 10 of the Act of June 28, 1934 (commonly
known as the Taylor Grazing Act; 43 U.S.C. 315i), is
amended by striking all after ‘‘miscellaneous receipts’’ and
inserting a period.
SEC. 308. REPEAL OF LIVESTOCK FEED ASSISTANCE PRO-
GRAM.
The Emergency Livestock Feed Assistance Act of
1988 (title VI of the Agricultural Act of 1949; 7 U.S.C.
1471–1471j) is repealed.
SEC. 309. RIGHT-OF-WAY PERMITS.
(a) IN GENERAL.—No permit, lease, or authorization
for the use of any area of the public lands or National
Forests for rights-of-way (including rights-of-way for
power lines, oil and gas pipelines, water conveyances, and
other utility lines) shall remain in force and effect after
October 1, 1997, unless, by such date, and by October
1 of each year thereafter, the holder of such permit, lease,
or authorization pays to the Secretary of the Interior or
the Secretary of Agriculture, as appropriate, an amount
equal to the fair market value, as determined by such Sec-
retary, of the right to use and occupy such area for such
purposes.
(b) DEFINITION.—For the purposes of this section,
the term ‘‘public lands’’ shall have the same meaning as
defined in section 103(e) of the Federal Land Policy Man-
agement Act of 1976 (43 U.S.C. 1702(e)).
SEC. 310. OIL AND GAS RENTALS.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is
amended as follows:
(1) In section 14 by striking out ‘‘a rental of
$1 per acre’’ and inserting ‘‘a rental established by
the Secretary of the Interior’’ and by adding the fol-
lowing at the end thereof: ‘‘The Secretary shall es-
tablish fair market value rental fees under this sec-
tion based upon the rental fees which would be
charged in arm’s length transactions for comparable
leases of oil and gas resources on non-Federal
land.’’.
(2) In section 17(d) by striking out ‘‘rental of
not less than $1.50 per acre per year for the first
through fifth years of the lease and not less than $2
per acre per year for each year thereafter’’ and in-
serting ‘‘rental established by the Secretary of the
Interior’’ and by adding the following at the end
thereof: ‘‘The Secretary shall establish fair market
value rental fees under this section based upon the
rental fees which would be charged in arms length
transactions for comparable leases of oil and gas re-
sources on non-Federal land.’’.
(3) In section 21(a) by striking out ‘‘rental,
payable at the beginning of each year, at the rate of
50 cents per acre per annum, for the lands included
in the lease,’’ and inserting ‘‘rental established by
the Secretary of the Interior’’ and by adding the fol-
lowing at the end thereof: ‘‘The Secretary shall es-
tablish fair market value rental fees under this sec-
tion based upon the rental fees which would be
charged in arms length transactions for comparable
leases on non-Federal land.’’.
(4) In section 31(e)(2) by striking ‘‘rate of not
less than $10 per acre per year, or the inclusion in
a reinstated lease issued pursuant to the provisions
of section 17(c) of this Act of a requirement that fu-
ture rentals shall be at a rate not less than $5 per
acre per year’’ and inserting ‘‘fair market value rate
(but not less than $10 per acre per year)’’.
(5) In section 31(f)(3) by striking out ‘‘of not
less than $5 per acre per year’’ and inserting ‘‘es-
tablished by the Secretary at fair market value
based upon the rental fees which would be charged
in arms length transactions for comparable leases on
non-Federal land’’.
SEC. 311. IMPROVEMENT OF MINERALS MANAGEMENT
SERVICE ROYALTY COLLECTION.
The Federal Oil and Gas Royalty Simplification and
Fairness Act of 1996 (Public Law No. 104–185; 30
U.S.C. 1701 et seq.) is amended by adding the following
new subsection after subsection (l):
‘‘(m) ASSESSMENT FOR UNDERREPORTING OF ROY-
ALTY.—(1) If there is any underreporting of royalty owed
on production from any lease for any production month,
the Secretary may make an assessment of 20 percent of
the amount of that underreporting if any of the following
circumstances occurs:
‘‘(A) For a Federal lease, the underreporting
exceeds 10 percent of the value of production which
should have been reported and exceeds $1,500, or
the underreporting exceeds 5 percent of the value of
production which should have been reported and ex-
ceeds $15,000.
‘‘(B) For an Indian lease, the underreporting
exceeds 10 percent of the value of production which
should have been reported and exceeds $125.
‘‘(C) For either a Federal or Indian lease, no
royalty was paid on production from that lease for
the production month immediately preceding the
month for which the underreporting was submitted,
regardless of the amount of the underreporting or
the amount of royalty owed.
‘‘(2) For purposes of this subsection, the term
‘underreporting’ means the amount by which the royalty
on the value of the production which should have been re-
ported exceeds the royalty on the value of the production
which was reported.
‘‘(3) The Secretary shall not impose the assessment
specified in paragraph (1) if the underreporting is cor-
rected before the date the person against whom the assess-
ment is made receives written notice from the Secretary
that an underreporting may have occurred.
‘‘(4) The Secretary shall not impose the assessment
specified in paragraph (1) with respect to an underreport-
ing which is corrected in the course of performing an order
to correct royalty accounting and recompute and pay roy-
alties due. This exception does not apply to the specific
instances of underreporting discovered during audit which
formed the basis of the order to recompute and pay.
‘‘(5)(A) The Secretary shall waive the portion of an
assessment specified in paragraph (1) attributable to that
portion of the underreporting for which a person dem-
onstrates that—
‘‘(i) the person had substantial authority for re-
porting royalty on the value of the production on the
basis on which it was reported, or
‘‘(ii) the person meets any other exception
which the Secretary may, by rule, establish.
‘‘(B) For purposes of this paragraph, the term ‘sub-
stantial authority’ means any of the following:
‘‘(i) A controlling judicial or administrative de-
cision which has not been reversed, vacated, or over-
ruled, or a controlling regulation.
‘‘(ii) A body of judicial or administrative deci-
sions or regulations which provide a reasoned basis
to support the person’s action. Such a reasoned
basis must be more than a merely arguable theory
which is unlikely to prevail in court upon a complete
review of the relevant facts and authorities.
‘‘(iii) A legal question of first impression.
‘‘(6) Interest shall not accrue on the amount of an
assessment under this subsection during the pendency of
any administrative appeal of the assessment which may
be allowed by rule. No hearing on the record in such ap-
peal shall be necessary before an assessment is made. No
surety instrument shall be required to secure the amount
of the assessment pending administrative appeal.
‘‘(7) An assessment under this subsection shall apply
only to an underreporting occurring after the date of en-
actment of this subsection.
‘‘(8) Notwithstanding any provision of section 206 of
this Act, all assessments collected under this subsection
shall be deposited to the same accounts in the Treasury
or paid to the same recipients in the same manner as the
royalty with respect to which such assessment is made.
‘‘(9) For purposes of this subsection, the definitions
in section 2 of this Act shall be deemed to also apply to
coal, any other mineral, geothermal steam, or associated
geothermal resources.’’.
TITLE IV—NATIONAL PARK
CONCESSIONS
SEC. 401. FINDINGS AND POLICY.
(a) FINDINGS.—In furtherance of the Act of August
25, 1916 (39 Stat. 535), as amended (16 U.S.C. 1, 2–
4), which directs the Secretary of the Interior to admin-
ister areas of the National Park System in accordance
with the fundamental purpose of conserving their scenery,
wildlife, natural and historic objects, and providing for
their enjoyment in a manner that will leave them
unimpaired for the enjoyment of future generations, the
Congress finds that the preservation and conservation of
park resources and values requires that such public ac-
commodations, facilities, and services within such areas as
the Secretary, in accordance with this Act, determines nec-
essary and appropriate—
(1) should be provided only under carefully con-
trolled safeguards against unregulated and indis-
criminate use so that visitation will not unduly im-
pair park resources and values; and
(2) should be limited to locations and designs
consistent to the highest practicable degree with the
preservation and conservation of park resources and
values.
(b) POLICY.—It is the policy of the Congress that—
(1) development on Federal lands within a park
shall be limited to those facilities that the Secretary
determines are necessary and appropriate for public
use and enjoyment of the park in which such facili-
ties and services are located;
(2) development within a park should be con-
sistent to the highest practicable degree with the
preservation and conservation of the park’s re-
sources and values;
(3) park facilities and services the Secretary de-
termines suitable to be provided by parties other
than the Secretary should be provided by private
persons, corporations, or other entities, except when
no private interest is qualified and willing to provide
such facilities and services;
(4) if the Secretary determines that develop-
ment should occur within a park, such development
shall be designed, located, and operated in a manner
that is consistent with the purposes for which such
park was established;
(5) the right to provide such services and to de-
velop or utilize facilities should be awarded to the
person, corporation, or entity submitting the best
proposal through a competitive selection process;
and
(6) such facilities or services should be provided
to the public at reasonable rates.
SEC. 402. DEFINITIONS.
As used in this title:
(1) The term ‘‘concessioner’’ means a person,
corporation, or other entity to whom a concession
contract has been awarded.
(2) the term ‘‘concession contract’’ means a
contract, or permit, (but not an authorization issued
pursuant to section 404(b) of this title) to provide
facilities or services, or both, at a park.
(3) The term ‘‘facilities’’ means improvements
to real property within parks used to provide accom-
modations, facilities, or services to park visitors.
(4) The term ‘‘franchise fee’’ means the fee re-
quired by a concession contract to be paid to the
United States in consideration for the privileges af-
forded by such contract to the holder thereof, which
may be expressed as a percentage of revenues de-
rived by the contract holder from activities author-
ized by the contract, and which shall be in addition
to fees required to be paid to the United States for
the use of federally-owned buildings or other facili-
ties.
(5) The term ‘‘fund’’ means the Park Improve-
ment Fund established under section 8(b).
(6) The term ‘‘park’’ means a unit of the Na-
tional Park System.
(7) The term ‘‘proposal’’ means the complete
proposal for a concession contract offered by a po-
tential or existing concessioner in response to the
minimum requirements for the contract established
by the Secretary.
(8) The term ‘‘Secretary’’ means the Secretary
of the Interior.
SEC. 403. REPEAL OF CONCESSIONS POLICY ACT OF 1965.
(a) REPEAL.—The Act of October 9, 1965, Public
Law 89–249 (79 Stat. 969, 16 U.S.C. 20–20g), entitled
‘‘An Act relating to the establishment of concession poli-
cies in the areas administered by National Park Service
and for other purposes’’, is hereby repealed. The repeal
of such Act shall not affect the validity of any contract
entered into under such Act, but the provisions of this title
shall apply to any such contract except to the extent such
provisions are inconsistent with the express terms and
conditions of the contract. Nothing in this title that is in-
consistent with a prospectus issued before January 27,
1995, shall apply to the contract with respect to which
such prospectus was issued. The Secretary is authorized
to award a concession contract prior to promulgation of
new regulations to implement this title if the Secretary
determines that protection of public health and safety war-
rant such action, provided that such contract is consistent
with this title.
(b) TRANSITION.—Nothing in this Act that is incon-
sistent with a prospectus issued before April 1, 1994, shall
apply to the contract with respect to which such prospec-
tus was issued. The Secretary is authorized to award a
concession contract prior to promulgation of new regula-
tions to implement this Act if the Secretary determines
that protection of public health and safety warrant such
action, provided that such contract is consistent with this
Act.
(c) CONFORMING AMENDMENT.—The fourth sen-
tence of section 3 of this Act of August 25, 1916 (16
U.S.C. 3; 39 Stat. 535) is amended by striking all through
‘‘no natural’’ and inserting in lieu thereof, ‘‘No natural’’.
SEC. 404. CONCESSION CONTRACTS AND OTHER AUTHOR-
IZATIONS.
(a) CONCESSIONS.—(1) Subject to the findings and
policy stated in section 401 of this title and the provisions
of this section, the Secretary may award concession con-
tracts that authorize private persons, corporations, or
other entities to provide services to park visitors and to
utilize facilities if the Secretary determines that such
award is the appropriate means for such authorization.
(2) Concession contracts shall be awarded only to the
extent that the Secretary finds that the services to be pro-
vided and the facilities to be utilized pursuant to each such
contract are necessary and appropriate for the accommo-
dation of visitors to a park.
(3) The provision of services and the utilization of
facilities pursuant to concession contracts shall be consist-
ent with all applicable requirements of law, including laws
relating generally to the administration and management
of units of the National Park Service, and with the general
management plan, concessions plan, and other relevant
plans developed by the Secretary for the relevant park.
(b) OTHER AUTHORIZATIONS.—(1) To the extent
specified in this subsection, the Secretary, upon request,
may authorize a private person, corporation, or other en-
tity to provide services to park visitors otherwise than by
award of a concession contract.
(2)(A) The authority of this subsection may be used
only to authorize provision of services to park visitors that
the Secretary determines have minimal impact on park re-
sources and values and will be consistent with the pur-
poses for which the park was established and with all ap-
plicable management plans for such park.
(B) The Secretary shall require payment of a reason-
able fee for issuance of an authorization under this sub-
section. The fees shall remain available without further
appropriation to be used to recover the costs of managing
and administering this subsection.
(C) The Secretary shall require that the provision of
services under such an authorization be accomplished in
a manner consistent to the highest practicable degree with
the preservation and conservation of park resources and
values.
(D) The Secretary shall take appropriate steps to
limit the liability of the United States arising from the
provision of services under such an authorization.
(E) The Secretary shall no authority under this sub-
section to issue more authorizations than are consistent
with the preservation and proper management of park re-
sources and values, and shall establish such other condi-
tions for issuance of such an authorization as the Sec-
retary determines appropriate for protection of visitors,
provision of adequate and appropriate visitor services, and
protection and proper management of the resources and
values of the National Park System.
(3) Any authorization issued under this subsection
shall be limited to commercial operations with annual
gross revenues of not more than $25,000 resulting from
the services provided within the park pursuant to such au-
thorization.
(4) The term of any authorization issued under this
subsection shall not exceed 2 years.
(5) An entity seeking or obtaining an authorization
pursuant to this subsection shall not be precluded from
also submitting proposals for concession contracts.
SEC. 405. COMPETITIVE SELECTION PROCESS.
(a) IN GENERAL.—(1) Except as provided in sub-
section (b), and consistent with the provisions of sub-
section (g), any concession contract entered into pursuant
to this title shall be awarded to the person submitting the
best proposal, as determined by the Secretary through the
competitive selection process specified in this section.
(2) Within 180 days after the date of enactment of
this title, the Secretary shall promulgate appropriate regu-
lations establishing a process to implement this section.
(3) The regulations referred to in paragraph (2) shall
include provisions for establishing a method or procedure
for the resolution of disputes between the Secretary and
a concessioner in those instances where the Secretary has
been unable to meet conditions or requirements or provide
such services, if any, as set forth in a prospectus pursuant
to sections 405(c)(2) (D) and (E).
(b) TEMPORARY CONTRACT.—Notwithstanding the
provisions of subsection (a), the Secretary may award on
a noncompetitive basis a temporary concession contract if
the Secretary determines such an award to be necessary
in order to avoid interruption of services to the public at
a park. Prior to making such a determination, the Sec-
retary shall take all reasonable and appropriate steps to
consider alternative actions to avoid such interruptions.
(c) PROSPECTUS.—(1) Prior to soliciting proposals
for a concession contract at a park, the Secretary shall
prepare a prospectus soliciting proposals, shall publish a
notice of its availability at least once in such local or na-
tional newspapers or trade publications as the Secretary
determines appropriate, and shall make such prospectus
available upon request to all interested parties.
(2) The prospectus shall include, but need not be lim-
ited to, the following information:
(A) The minimum requirements for such con-
tract, as set forth in subsection (d).
(B) The terms and conditions of the existing
concession contract awarded for such park, if any,
including all fees and other forms of compensation
provided to the United States by the concessioner.
(C) Other authorized facilities or services which
may be included in a proposal.
(D) Facilities and services to be provided by the
Secretary to the concessioner, if any, including but
not limited to, public access, utilities, and buildings.
(E) Minimum public services to be offered with-
in a park by the Secretary, including but not limited
to, interpretive programs, campsites, and visitor cen-
ters.
(F) Such other information related to the con-
cessions operation as is provided by the Secretary
pursuant to a concession contract or is otherwise
available to the Secretary, as the Secretary deter-
mines is necessary to allow for the submission of
competitive proposals.
(d) MINIMUM PROPOSAL REQUIREMENTS.—(1) No
proposal shall be considered which fails to meet the mini-
mum requirements included in the prospectus. Such mini-
mum requirements shall include payment to the United
States of a franchise fee and shall also include, but need
not be limited to, the following:
(A) The minimum acceptable franchise fee, fees
for use of any Federal buildings or other facilities,
and any other fees to be paid to the United States.
(B) The duration of the contract.
(C) Any facilities, services, or capital invest-
ments required to be provided by the concessioner.
(D) Measures that will be required in order to
ensure the protection and preservation of park re-
sources and values.
(2) The Secretary may reject any proposal, notwith-
standing the amount of franchise fee offered, if the Sec-
retary determines that the person, corporation, or entity
making such proposal is not qualified, is likely to provide
unsatisfactory service, or that the proposal is not suffi-
ciently responsive to the objectives of protecting and pre-
serving park resources and of providing necessary and ap-
propriate facilities or services to the public at reasonable
rates.
(3) If all proposals submitted to the Secretary either
fail to meet the minimum requirements or are rejected by
the Secretary, the Secretary shall establish new minimum
contract requirements and re-initiate the competitive se-
lection process pursuant to this section.
(e) SELECTION OF BEST PROPOSAL.—(1) In select-
ing the best proposal, the Secretary shall consider the fol-
lowing principal factors:
(A) The responsiveness of the proposal to the
objectives of protecting and preserving park re-
sources and of providing necessary and appropriate
facilities and services to the public at reasonable
rates.
(B) The experience, expertise, and related back-
ground of the person, corporation, or other entity
submitting the proposal, including whether the per-
son, corporation, or entity submitted the proposal
has established a record of outstanding performance
in providing the same or similar facilities or services.
(C) The financial capability of the person, cor-
poration, or entity submitting the proposal.
(D) The proposed franchise fee: Provided, That
consideration of revenue to the United States shall
be subordinate to the objectives of protecting and
preserving park resources including cultural re-
sources, and of providing necessary and appropriate
facilities or services to the public at reasonable rates.
(2) The Secretary may also consider such secondary
factors as the Secretary deems appropriate.
(3) In developing regulations to implement this title,
the Secretary shall consider the extent to which plans for
employment of Indians (including Native Alaskans) and
involvement of businesses owned by Indians, Indian tribes,
or Native Alaskans in the operation of concession con-
tracts should be identified as a factor in the selection of
a best offer under this section.
(f) CONGRESSIONAL NOTIFICATION.—(1) The Sec-
retary shall submit any proposed concession contract with
anticipated annual gross receipts in excess of $1,000,000
(indexed to 1993 constant dollars) or a duration in excess
of ten years to the Committee on Energy and Natural Re-
sources of the United States Senate and the Committee
on Resources of the United States House of Representa-
tives.
(2) The Secretary shall not award any such proposed
contract until at least 60 days subsequent to the submis-
sion thereof to both Committees.
(g) NO PREFERENTIAL RIGHT OF RENEWAL.—(1)
Except as provided in paragraph (2), the Secretary shall
not grant a preferential right to a concessioner to renew
a concession contract executed pursuant to this title.
(2)(A) The Secretary shall grant a preferential right
of renewal with respect to a concession contract covered
by subsection (h) and (i) subject to the requirements of
subsection (h) or (i), as appropriate.
(B) As used in this paragraph and subsections (h)
and (i), the term ‘‘preferential right of renewal’’ means
that the Secretary shall allow a concessioner satisfying the
requirements of this paragraph the opportunity to match
the terms and conditions of any competing proposal which
the Secretary determines to be the best offer.
(C) A concessioner who exercises a preferential right
of renewal in accordance with the requirements of this
paragraph shall be entitled to award of the new concession
contract with respect to which such right is exercised.
(h) OUTFITTING AND GUIDE CONTRACTS.—(1) Ex-
cept as provided in subsection (i), the provisions of sub-
section (g)(2) shall apply only—
(A) to a concession contract—
(i) which solely authorizes a concessioner
to provide outfitting, guide, river running, or
other substantially similar services within a
park; and
(ii) which does not grant such concessioner
any interest in any structure, fixture, or im-
provement pursuant to section 11 of this Act;
and
(B) where the concessioner has been awarded
an annual rating of ‘‘Excellent’’ in at least 50 per-
cent of the annual ratings during the term of the
contract;
(C) where the concessioner has not received any
annual unsatisfactory ratings during the term of the
contract; and
(D) where the Secretary determines that the
concessioner has submitted a responsive proposal for
a new contract which satisfies the minimum require-
ments established by the Secretary pursuant to sec-
tion 6 of this Act.
(2) In granting a preferential right of renewal pursu-
ant to subsection (g)(2), the Secretary shall not require
concessioner to match any portion of a proposed franchise
fee which exceeds by more than 10 percent the minimum
fee established by the Secretary in the prospectus for such
contract.
(3)(A) With respect to a concession contract (or ex-
tension thereof) covered by this subsection, which is in ef-
fect on the date of enactment of this Act, the provisions
of this paragraph shall apply if the holder of such con-
tract, under the laws and policies in effect on the day be-
fore the date of enactment of this Act, would have been
entitled to a preferential right of renewal upon the expira-
tion of such contract.
(B) Upon the expiration of a concession contract (or
extension thereof) covered by this paragraph, the Sec-
retary, with respect to the award of a new concession con-
tract to provide the same or substantially similar services
as those authorized by the previous contract or extension,
shall allow the holder of such contract or extension the
right to exercise a preferential right of renewal to the
same extent as would have been the case under the laws
and policies in effect on the day before the date of enact-
ment of this Act.
(4)(A) In promulgating regulations to implement this
subsection, the Secretary shall include a rating category
of ‘‘Excellent’’, and shall establish clear and achievable
standards necessary for the award of such rating, includ-
ing but not necessarily limited to criteria relating to—
(i) protection of the park’s resources and val-
ues;
(ii) furtherance of the educational, recreational,
and other purposes for which the Secretary manages
the park; and
(iii) the adequacy of services provided to park
visitors.
(B) The Secretary shall take appropriate steps to en-
able all holders of contracts covered by this subsection,
and all parties seeking to obtain such contracts, to be
aware of the criteria established pursuant to this para-
graph.
(i) CONTRACTS WITH ANNUAL GROSS RECEIPTS
UNDER $500,000.—(1) The provisions of subsection
(g)(2) shall also apply to a concession contract—
(A) which the Secretary estimates will result in
annual gross receipts of less than $500,000;
(B) where the Secretary has determined that
the concessioner has operated satisfactorily during
the term of the contract (including any extensions
thereof); and
(C) that the concessioner has submitted a re-
sponsive proposal for a new concession contract
which satisfies the minimum requirements estab-
lished by the Secretary pursuant to section 6 of this
Act.
(2) The provisions of this subsection shall not apply
to a concession contract covered by subsection (h).
SEC. 406. FRANCHISE FEES.
(a) IN GENERAL.—Franchise fees, however stated,
shall not be less than the minimum franchise fee estab-
lished by the Secretary for each contract. The minimum
franchise fee shall be determined in a manner that will
provide the concessioner with a reasonable opportunity to
realize a profit on the operation as a whole, commensurate
with the capital invested and the obligations assumed.
(b) MULTIPLE CONTRACTS WITHIN A PARK.—If mul-
tiple concession contracts are awarded to authorize conces-
sioners to provide the same outfitting, guide, river run-
ning, or other similar services at the same approximate
location within a specific park, the Secretary shall estab-
lish a standardized schedule of franchise fees for all such
contracts, subject to periodic review and revision by the
Secretary.
SEC. 407. USE OF FRANCHISE FEES.
(a) SPECIAL ACCOUNT.—Except as provided in sub-
section (b), all receipts including fees for use of Federally-
owned buildings or other facilities collected pursuant to
this title shall be covered into a special account established
in the Treasury of the United States. Amounts covered
into such account in a fiscal year shall be available for
expenditure, subject to appropriation, solely as follows:
(1) 50 percent shall be allocated among the
units of the National Park System in the same pro-
portion as franchise fees collected from a specific
unit bears to the total amount covered into the ac-
count for each fiscal year, to be used for resource
management and protection, maintenance activities,
interpretation, and research.
(2) 50 percent shall be allocated among the
units of the National Park System on the basis of
need, in a manner to be determined by the Sec-
retary, to be used for resource management and pro-
tection, maintenance activities, interpretation, and
research.
(b) PARK IMPROVEMENT FUND.—(1) In lieu of col-
lecting all or a portion of the franchise fees that would
otherwise be collected pursuant to the concession contract,
the Secretary shall, where the Secretary determines it to
be practicable, require a concessioner to establish a Park
Improvement Fund in which the concessioner shall deposit
the franchise fees that would otherwise be required by the
contract.
(2) The fund shall be maintained by the concessioner
in an interest bearing account in a federally insured finan-
cial institution. The concessioner shall maintain the fund
separately from any other funds or accounts and shall not
co-mingle the monies in the fund with any other monies.
The Secretary may establish such other terms, conditions,
or requirements as the Secretary determines to be nec-
essary to ensure the financial integrity of the fund.
(3) Monies from the fund, including interest, shall be
expended solely for activities and projects within the park
which are consistent with the park’s general management
plan, concessions plan, and other applicable plans, and
which the Secretary determines will enhance public use,
safety, and enjoyment of the park, including but not lim-
ited to projects which directly or indirectly support conces-
sion facilities or services required by the concession con-
tract, but no expenditure from the fund shall have the ef-
fect of creating or increasing any compensable interest of
any concessioner in any such facilities. A concessioner
shall not be allowed to make any advances or credits to
the fund.
(4) A concessioner shall not be granted any interest
in improvements made from fund expenditures, including
any interest granted pursuant to section 310 of this title.
(5) Nothing in this subsection shall affect the obliga-
tion of a concessioner to insure, maintain, and repair any
structure, fixture, or improvement assigned to such con-
cessioner and to insure that such structure, fixture, or im-
provement fully complies with applicable safety and health
laws and regulations.
(6) The concessioner shall maintain proper records
for all expenditures made from the fund. Such records
shall include, but not be limited to invoices, bank state-
ments, canceled checks, and such other information as the
Secretary may require.
(7) The concessioner shall annually submit to the
Secretary a statement reflecting total activity in the fund
for the preceding financial year. The statement shall re-
flect monthly deposits, expenditures by project, interest
earned, and such other information as the Secretary re-
quires.
(8) A fund established pursuant to this subsection
may not be used for any capital expenditure exceeding
$2,500,000 in any fiscal year unless such expenditure
from a fund has been authorized in advance by Act of Con-
gress. The Secretary shall annually inform the Congress
concerning the actual and projected use of moneys in each
fund established pursuant to this subsection.
(9) Upon the termination of a concession contract,
or upon the sale or transfer of such contract, any remain-
ing balance in the fund shall be transferred by the conces-
sioner to the successor concessioner, to be used solely as
set forth in this subsection. In the event there is no succes-
sor concessioner, the fund balance shall be deposited into
the special account established in subsection (a).
SEC. 408. DURATION OF CONTRACT.
(a) MAXIMUM TERM.—A concession contract entered
into pursuant to this title shall be awarded for a term not
to exceed ten years: Provided, however, That the Secretary
may award a contract for a term not to exceed twenty
years if the Secretary determines that a longer term is
a necessary component of the overall contract in order to
reduce the costs to the United States of acquiring
possessory interests or to carry out the policies of this title
and other laws applicable to the National Park System.
(b) TEMPORARY CONTRACT.—A temporary conces-
sion contract awarded on a non-competitive basis pursuant
to section 405(b) of this title shall be for a term not to
exceed two years.
SEC. 409. TRANSFER OF CONTRACT.
(a) IN GENERAL.—(1) No concession contract may
be transferred, assigned, sold, or otherwise conveyed by
a concessioner without prior written notification to, and
approval of the Secretary.
(2) The Secretary shall not unreasonably withhold
approval of a transfer, assignment, sale, or conveyance of
a concession contract, but shall not approve the transfer
of a concession contract to any individual, corporation or
other entity if, among other matters, the Secretary deter-
mines that—
(A) such individual, corporation or entity is, or
is likely to be, unable to completely satisfy all of the
requirements, terms, and conditions of the contract;
(B) such transfer, assignment, sale or convey-
ance is not consistent with the objectives of protect-
ing and preserving park resources, and of providing
necessary and appropriate facilities or services to the
public at reasonable rates;
(C) such transfer, assignment, sale, or convey-
ance relates to a concession contract which does not
provide to the United States consideration commen-
surate with the probable value of the privileges
granted by the contract; or
(D) the terms of the transfer, assignment, sale,
or conveyance directly or indirectly attribute a sig-
nificant value to intangible assets or otherwise may
so reduce the opportunity for a reasonable profit
over the remaining term of the contract that the
United States would be required to make substantial
additional expenditures in order to avoid interrup-
tion of services to park visitors.
(b) CONGRESSIONAL NOTIFICATION.—Within thirty
days after receiving a request to approve a transfer, as-
signment, sale, or other conveyance of a concession con-
tract with anticipated annual gross receipts in excess of
$1,000,000 (indexed to 1993 constant dollars) or a dura-
tion in excess of 10 years, the Secretary shall notify the
Committee on Energy and Natural Resources of the Unit-
ed States Senate and the Committee on Resources of the
United States House of Representatives of such proposal.
Approval of such proposal, if granted by the Secretary,
shall not take effect until sixty days after the date of noti-
fication of both Committees.
SEC. 410. PROTECTION OF CONCESSIONER INVESTMENT.
(a) EXISTING STRUCTURES.—(1) A concessioner
who, pursuant to a concession contract, before the date
of enactment of this title acquired or constructed, or as
of such date was required by such a contract to commence
acquisition or construction, of any structure, fixture, or
improvement upon land owned by the United States within
a park, shall have a possessory interest therein, to the ex-
tent provided by such contract, the value of such
possessory interest to be determined for all purposes on
the basis of applicable laws and contracts in effect on the
day before such date of enactment.
(2) The provisions of this subsection shall not apply
to a concessioner whose contract in effect on the date of
enactment of this title does not include recognition of a
possessory interest.
(3)(A)(i) Except as provided in subparagraph (B),
with respect to a concession contract entered into on or
after the date of enactment of this title, the provisions
of subsection (b) shall apply to any existing structure, fix-
ture, or improvement as defined in paragraph (1), except
that the value of the possessory interest as of the termi-
nation date of the first contract expiring after the date
of enactment of this title shall be used as the basis for
depreciation, in lieu of the actual original cost of such
structure, fixture, or improvement.
(ii) Notwithstanding Generally Accepted Accounting
Principles, a concessioner with a possessory interest as
provided in subsection (a) may, at the termination date
of the first contract expiring after the date of enactment
of this Act, re-estimate the useful life of the applicable
structure, fixture, or improvement, consistent with sub-
section (b): Provided, That the estimated useful life of
such structure, fixture, or improvement shall not there-
after be reestablished or revalued.
(B) If the Secretary determines during the competi-
tive selection process that all proposals submitted either
fail to meet the minimum requirements or are rejected (as
provided in section 405), the Secretary may, solely with
respect to a structure, fixture, or improvement covered
under this paragraph, suspend the depreciation provisions
of subsection (b)(1) for the duration of the contract: Pro-
vided, That the Secretary may suspend such depreciation
provisions only if the Secretary determines that the estab-
lishment of other new minimum contract requirements is
not likely to result in the submission of satisfactory pro-
posals, and that the suspension of the depreciation provi-
sions is likely to result in the submission of satisfactory
proposals.
(b) NEW STRUCTURES.—(1) On or after the date of
enactment of this title, a concessioner who constructs or
acquires a new, additional, or replacement structure, fix-
ture, or improvement upon land owned by the United
States within a park, pursuant to a concession contract,
shall have an interest in such structure, fixture, or im-
provement equivalent to the actual original cost of acquir-
ing or constructing such structure, fixture, or improve-
ment, less straight line depreciation over the estimated
useful life of the asset according to Generally Accepted
Accounting Principles: Provided, That in no event shall
the estimated useful life of such asset exceed the deprecia-
tion period used for such asset for Federal income tax pur-
poses.
(2) In the event that the contract expires or is termi-
nated prior to the estimated useful life of an asset de-
scribed in paragraph (1), the concessioner shall be entitled
to receive from the United States or the successor conces-
sioner payment equal to the value of the concessioner’s
interest in such structure, fixture, or improvement. A suc-
cessor concessioner may not revalue the interest in such
structure, fixture, or improvement, the method of depre-
ciation, or the estimated useful life of the asset.
(3) Title to any such structure, fixture, or improve-
ment shall be vested in the United States.
(c) INSURANCE, MAINTENANCE AND REPAIR.—Noth-
ing in this section shall affect the obligation of a conces-
sioner to insure, maintain, and repair any structure, fix-
ture, or improvement assigned to such concessioner and
to insure that such structure, fixture, or improvement
fully complies with applicable safety and health laws and
regulations.
SEC. 411. RATES AND CHARGES TO PUBLIC.
The reasonableness of a concessioner’s rates and
charges to the public shall, unless otherwise provided in
the prospectus and contract, be judged primarily by com-
parison with those rates and charges for facilities and
services of comparable character charged by parties in rea-
sonable proximity to the relevant park and operating
under similar conditions, with due consideration for length
of season, seasonal variance, average percentage of occu-
pancy, accessibility, availability and costs of labor and ma-
terials, type of patronage, and other factors deemed sig-
nificant by the Secretary.
SEC. 412. CONCESSIONER PERFORMANCE EVALUATION.
(a) REGULATIONS.—Within one hundred and eighty
days after the date of enactment of this title, the Sec-
retary, after an appropriate period for public comment,
shall publish regulations establishing standards and cri-
teria for evaluating the performance of concessioners oper-
ating within parks.
(b) PERIODIC EVALUATION.—(1) The Secretary shall
periodically conduct an evaluation of each concessioner op-
erating under a concession contract pursuant to this title
to determine whether such concessioner has performed
satisfactorily. In evaluating a concessioner’s performance,
the Secretary shall seek and consider applicable reports
and comments from appropriate Federal, State, and local
regulatory agencies, and shall seek and consider the views
of park visitors and concession customers. If the Sec-
retary’s performance evaluation results in an unsatisfac-
tory rating of the concessioner’s overall operation, the Sec-
retary shall so notify the concessioner in writing, and shall
provide the concessioner with a list of the minimum re-
quirements necessary for the operation to be rated satis-
factory.
(2) The Secretary may terminate a concession con-
tract if the concessioner fails to meet the minimum oper-
ational requirements identified by the Secretary within the
time limitations established by the Secretary at the time
notice of the unsatisfactory rating is provided to the con-
cessioner.
(3) If the Secretary terminates a concession contract
pursuant to this section, the Secretary shall solicit propos-
als for a new contract consistent with the provisions of
this title.
(c) CONGRESSIONAL NOTIFICATION.—The Secretary
shall notify the Committee on Energy and Natural Re-
sources of the United States Senate and the Committee
on Resources of the United States House of Representa-
tives of each unsatisfactory overall annual rating and of
each concession contract terminated pursuant to this sec-
tion.
SEC. 413. RECORDKEEPING REQUIREMENTS.
(a) IN GENERAL.—Each concessioner shall keep such
records as the Secretary may prescribe to enable the Sec-
retary to determine that all terms of the concessioner’s
contract have been and are being faithfully performed, and
the Secretary, the Inspector General of the Department
of the Interior, or any of the Secretary’s duly authorized
representatives shall, for the purpose of audit and exam-
ination, have access to such records and to other books,
documents and papers of the concessioner pertinent to the
contract and all the terms and conditions thereof as the
Secretary and the Inspector General deem necessary.
(b) GENERAL ACCOUNTING OFFICE REVIEW.—The
Comptroller General of the United States or any of his
or her duly authorized representatives shall, until the expi-
ration of five calendar years after the close of the business
year for each concessioner, have access to and the right
to examine any pertinent books, documents, papers, and
records of the concessioner related to the contracts or con-
tracts involved, including those related to any Park Im-
provement Funds established pursuant to section 407(b).
SEC. 414. EXEMPTION FROM CERTAIN LEASE REQUIRE-
MENTS.
The provisions of section 321 of the Act of June 30,
1932 (47 Stat. 412; 40 U.S.C. 303b), relating to the leas-
ing of buildings and properties of the United States, shall
not apply to contracts awarded by the Secretary pursuant
to this title.
SEC. 415. NO EFFECT ON ANILCA PROVISIONS.
Nothing in this title shall be construed to amend, su-
persede, or otherwise affect any provision of the Alaska
National Interest Lands Conservation Act (16 U.S.C.
3101 et seq.).
SEC. 416. IMPLEMENTATION.
(a) AUDIT REQUIREMENT.—Beginning with fiscal
year 1997, the Inspector General of the Department of
the Interior shall conduct a biennial audit of the Sec-
retary’s implementation of this title and the award and
management of concession contracts and authorizations
described in section 404(b).
(b) BIENNIAL REPORTS.—Beginning on June 1,
1997, and biannually thereafter the Secretary and the In-
spector General of the Department of the Interior shall
submit a report to the Committee on Energy and Natural
Resources of the United States Senate and the Committee
on Resources of the United States House of Representa-
tives on the implementation of this title and the effect of
such implementation on facilities operated and services
provided pursuant to concession contracts.
(c) INFORMATION FROM SECRETARY.—In each re-
port required by this section, the Secretary shall—
(1) identify any concession contracts which have
been renewed, renegotiated, terminated, or trans-
ferred during the 2 years prior to the submission of
the report and identify any significant changes in
the terms of the new contract;
(2) state the amount of franchise fees, the rates
which would be charged for services, and the level of
other services required to be provided by the conces-
sioner in comparison to that required in any pre-
vious concession contract for the same facilities or
services at the same park;
(3) assess the degree to which facilities are
being maintained, using the condition of such facili-
ties on the date of enactment of this Act as a base-
line;
(4) indicate whether competition has been in-
creased or decreased with respect to the awarding of
concession contracts;
(5) set forth the total amount of revenues re-
ceived and financial obligations incurred or reduced
by the Federal Government as a result of enactment
of this Act for the reporting period and in compari-
son with previous reporting periods and the baseline
year of 1993, including the costs, if any, associated
with the acquisition of possessory interests; and
(6) include information concerning any park
improvement funds established pursuant to section
407(b) of this title, including—
(A) the total amount of funds deposited
into and expended from each such fund during
the preceding 2-year period; and
(B) the purposes for which expenditures
from such funds during such period were used.
(d) INFORMATION FROM INSPECTOR GENERAL.—In
each report required by this section, the Inspector General
of the Department of the Interior shall include informa-
tion as to the results of the audit required by subsection
(a), including—
(1) the status of the Secretary’s implementation
of this title;
(2) the extent to which such implementation
has furthered the policies of this title, as set forth
in section 401, and has led to an increase or de-
crease in competition for concession contracts;
(3) the adequacy of recordkeeping and other re-
quirements imposed on establishment and use of
park improvement funds established pursuant to sec-
tion 407(b); and
(4) any recommendations the Inspector General
may find appropriate in order to further the pur-
poses of this title and other laws applicable to the
National Park System or to assure that park im-
provement funds established pursuant to section
407(b) are maintained and expenditures therefrom
are used in accordance with this title and sound
business practices.
SEC. 417. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated such sums as
may be necessary to carry out this title.
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