IB 
Union Calendar No. 310 
110TH CONGRESS 
2D SESSION 
H. R. 3058 
[Report No. 110–505, Part I] 
To amend chapter 69 of title 31, United States Code, to provide full payments 
under such chapter to units of general local government in which entitle-
ment land is located, to provide transitional payments during fiscal 
years 2008 through 2012 to those States and counties previously entitled 
to payments under the Secure Rural Schools and Community Self-Deter-
mination Act of 2000, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 17, 2007 
Mr. DEFAZIO (for himself, Mr. RAHALL, Mr. THOMPSON of California, Mr. 
BAIRD, Ms. HOOLEY, Mr. MATHESON, and Mr. BLUMENAUER) intro-
duced the following bill; which was referred to the Committee on Natural 
Resources, and in addition to the Committee on Agriculture, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
DECEMBER 19, 2007 
Reported from the Committee on Natural Resources with amendments 
[Strike out all after the enacting clause and insert the part printed in italic] 
DECEMBER 19, 2007 
Referral to the Committee on Agriculture extended for a period ending not 
later than January 15, 2008 
JANUARY 15, 2008 
Additional sponsors: Mr. UDALL of Colorado, Mrs. TAUSCHER, Mr. WU, Mr. 
ROSS, Mr. SIRES, Mr. SALAZAR, Ms. LINDA T. SA´NCHEZ of California, 
Mr. SCOTT of Georgia, Mr. INSLEE, Mr. FILNER, Mrs. CAPPS, Mr. ALEX-
ANDER, Mr. WALDEN of Oregon, Mr. LARSEN of Washington, Mr. BOU-
CHER, Mrs. MCMORRIS RODGERS, Mr. RENZI, Mr. DAVID DAVIS of Ten-
nessee, Mr. REICHERT, Mr. HASTINGS of Washington, Mr. HERGER, Mr. 
BISHOP of Utah, Mr. MICHAUD, Mr. DOOLITTLE, Mr. HINOJOSA, Mr. 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
MCNERNEY, Mr. BOYD of Florida, Mr. BOSWELL, Mr. BOOZMAN, Mr. 
MCKEON, Mr. HASTINGS of Florida, Mr. HILL, Mr. MOORE of Kansas, 
Mr. OBERSTAR, Mr. REHBERG, Mr. RADANOVICH, and Mr. DAVIS of Ala-
bama 
JANUARY 15, 2008 
Committee on Agriculture discharged; committed to the Committee of the 
Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on July 17, 2007] 
A BILL 
To amend chapter 69 of title 31, United States Code, to 
provide full payments under such chapter to units of 
general local government in which entitlement land is 
located, to provide transitional payments during fiscal 
years 2008 through 2012 to those States and counties 
previously entitled to payments under the Secure Rural 
Schools and Community Self-Determination Act of 2000, 
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. 
This Act may be cited as ‘‘Public Land Communities 
Transition Act of 2007’’. 
SEC. 2. FUNDING FOR PAYMENTS IN LIEU OF TAXES. 
Section 6906 of title 31, United States Code, is amend-
ed— 
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘Necessary’’; and 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
(2) by adding at the end the following new sub-
section: 
‘‘(b) TRANSITION TO FULL FUNDING.—Amounts au-
thorized under this chapter shall be made available to the 
Secretary of the Interior, out of any other funds in the 
Treasury not otherwise appropriated and without further 
appropriation, for obligation or expenditure in accordance 
with this chapter as follows: 
‘‘(1) For fiscal year 2008, 80 percent of the 
amount authorized under this chapter in the prior 
fiscal year. 
‘‘(2) For fiscal year 2009, 90 percent of the 
amount authorized under this chapter in the prior 
fiscal year. 
‘‘(3) For fiscal years 2010 and 2011, 100 percent 
of the amount authorized under this chapter in the 
prior fiscal year.’’. 
SEC. 3. TRANSITIONAL PAYMENTS STATES AND COUNTIES 
PREVIOUSLY 
ENTITLED 
TO 
PAYMENTS 
UNDER SECURE RURAL SCHOOLS AND COM-
MUNITY SELF-DETERMINATION ACT OF 2000. 
(a) TRANSITIONAL PAYMENTS.—Chapter 69 of title 31, 
United States Code, is amended by adding at the end the 
following new section: 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
‘‘§ 6908. Secure rural schools transition payments 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ADJUSTED
SHARE.—The term ‘adjusted 
share’ means the number equal to the quotient ob-
tained by dividing— 
‘‘(A) the number equal to the quotient ob-
tained by dividing— 
‘‘(i) the base share for the eligible coun-
ty; by 
‘‘(ii) the income adjustment for the eli-
gible county; by 
‘‘(B) the number equal to the sum of the 
quotients obtained under subparagraph (A) and 
paragraph (8)(A) for all eligible counties. 
‘‘(2) BASE SHARE.—The term ‘base share’ means 
the number equal to the average of— 
‘‘(A) the quotient obtained by dividing— 
‘‘(i) the number of acres of Federal 
land described in paragraph (7)(A) in each 
eligible county; by 
‘‘(ii) the total number acres of Federal 
land in all eligible counties in all eligible 
States; and 
‘‘(B) the quotient obtained by dividing— 
‘‘(i) the amount equal to the average of 
the 3 highest 25-percent payments and safe-
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
ty net payments made to each eligible State 
for each eligible county during the eligi-
bility period; by 
‘‘(ii) the amount equal to the sum of 
the amounts calculated under clause (i) and 
paragraph (9)(B)(i) for all eligible counties 
in all eligible States during the eligibility 
period. 
‘‘(3) COUNTY PAYMENT.—The term ‘county pay-
ment’ means the payment for an eligible county cal-
culated under subsection (c). 
‘‘(4) ELIGIBLE
COUNTY.—The term ‘eligible 
county’ means any county that— 
‘‘(A) contains Federal land (as defined in 
paragraph (7)); and 
‘‘(B) elects to receive a share of the State 
payment or the county payment under sub-
section (f). 
‘‘(5) ELIGIBILITY PERIOD.—The term ‘eligibility 
period’ means fiscal year 1986 through fiscal year 
1999. 
‘‘(6) ELIGIBLE STATE.—The term ‘eligible State’ 
means a State or territory of the United States that 
received a 25-percent payment for 1 or more fiscal 
years of the eligibility period. 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
‘‘(7) FEDERAL LAND.—The term ‘Federal land’ 
means— 
‘‘(A) land within the National Forest Sys-
tem, as defined in section 11(a) of the Forest and 
Rangeland Renewable Resources Planning Act of 
1974 (16 U.S.C. 1609(a)) exclusive of the Na-
tional Grasslands and land utilization projects 
designated as National Grasslands administered 
pursuant to the Act of July 22, 1937 (7 U.S.C. 
1010–1012); and 
‘‘(B) such portions of the revested Oregon 
and California Railroad and reconveyed Coos 
Bay Wagon Road grant land as are or may 
hereafter come under the jurisdiction of the De-
partment of the Interior, which have heretofore 
or may hereafter be classified as timberlands, 
and power-site land valuable for timber, that 
shall be managed, except as provided in the 
former section 3 of the Act of August 28, 1937 
(50 Stat. 875; 43 U.S.C. 1181c), for permanent 
forest production. 
‘‘(8) 50-PERCENT ADJUSTED SHARE.—The term 
‘50-percent adjusted share’ means the number equal to 
the quotient obtained by dividing— 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
‘‘(A) the number equal to the quotient ob-
tained by dividing— 
‘‘(i) the 50-percent base share for the 
eligible county; by 
‘‘(ii) the income adjustment for the eli-
gible county; by 
‘‘(B) the number equal to the sum of the 
quotients obtained under subparagraph (A) and 
paragraph (1)(A) for all eligible counties. 
‘‘(9) 50-PERCENT BASE SHARE.—The term ‘50- 
percent base share’ means the number equal to the av-
erage of— 
‘‘(A) the quotient obtained by dividing— 
‘‘(i) the number of acres of Federal 
land described in paragraph (7)(B) in each 
eligible county; by 
‘‘(ii) the total number acres of Federal 
land in all eligible counties in all eligible 
States; and 
‘‘(B) the quotient obtained by dividing— 
‘‘(i) the amount equal to the average of 
the 3 highest 50-percent payments made to 
each eligible county during the eligibility 
period; by 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
‘‘(ii) the amount equal to the sum of 
the amounts calculated under clause (i) and 
paragraph (2)(B)(i) for all eligible counties 
in all eligible States during the eligibility 
period. 
‘‘(10) 50-PERCENT PAYMENT.—The term ‘50-per-
cent payment’ means the payment that is the sum of 
the 50-percent share otherwise paid to a county pur-
suant to title II of the Act of August 28, 1937 (chap-
ter 876; 50 Stat. 875; 43 U.S.C. 1181f), and the pay-
ment made to a county pursuant to the Act of May 
24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f– 
1 et seq.). 
‘‘(11) FULL FUNDING AMOUNT.—The term ‘full 
funding amount’ means— 
‘‘(A) $520,000,000 for fiscal year 2008; and 
‘‘(B) for fiscal years 2009, 2010, and 2011, 
the amount that is equal to 90 percent of the full 
funding amount for the preceding fiscal year. 
‘‘(12) INCOME ADJUSTMENT.—The term ‘income 
adjustment’ means the square of the quotient obtained 
by dividing— 
‘‘(A) the per capita personal income for 
each eligible county; by 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
‘‘(B) the median per capita personal income 
of all eligible counties. 
‘‘(13) PER
CAPITA
PERSONAL
INCOME.—The 
term ‘per capita personal income’ means the most re-
cent per capita personal income data, as determined 
by the Bureau of Economic Analysis. 
‘‘(14) SAFETY NET PAYMENTS.—The term ‘safety 
net payments’ means the special payment amounts 
paid to States and counties required by section 13982 
or 13983 of the Omnibus Budget Reconciliation Act 
of 1993 (Public Law 103–66; 16 U.S.C. 500 note; 43 
U.S.C. 1181f note). 
‘‘(15) SECRETARY CONCERNED.—The term ‘Sec-
retary concerned’ means— 
‘‘(A) the Secretary of Agriculture or the des-
ignee of the Secretary of Agriculture with respect 
to the Federal land described in paragraph 
(7)(A); and 
‘‘(B) the Secretary of the Interior or the des-
ignee of the Secretary of the Interior with respect 
to the Federal land described in paragraph 
(7)(B). 
‘‘(16) STATE PAYMENT.—The term ‘State pay-
ment’ means the payment for an eligible State cal-
culated under subsection (b) 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
‘‘(17) 25-PERCENT PAYMENT.—The term ‘25-per-
cent payment’ means the payment to States required 
by the sixth paragraph under the heading of ‘forest 
service’ in the Act of May 23, 1908 (35 Stat. 260; 
16 U.S.C. 500), and section 13 of the Act of March 
1, 1911 (36 Stat. 963; 16 U.S.C. 500). 
‘‘(b) CALCULATION OF STATE PAYMENT AMOUNT.— 
For each of fiscal years 2008 through 2011, the Secretary 
of Agriculture shall calculate for each eligible State an 
amount equal to the sum of the products obtained by multi-
plying— 
‘‘(1) the adjusted share for each eligible county 
within the eligible State; by 
‘‘(2) the full funding amount for the fiscal year. 
‘‘(c) CALCULATION OF COUNTY PAYMENT AMOUNT.— 
For each of fiscal years 2008 through 2011, the Secretary 
of the Interior shall calculate for each eligible county that 
received a 50-percent payment during the eligibility period 
an amount equal to the product obtained by multiplying— 
‘‘(1) the 50-percent adjusted share for the eligible 
county; by 
‘‘(2) the full funding amount for the fiscal year. 
‘‘(d) PAYMENT AMOUNTS FOR ELIGIBLE STATES.— 
The Secretary of the Treasury shall pay to each eligible 
State an amount equal to the sum of the amounts elected 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
under subsection (f) by each county within the eligible State 
for— 
‘‘(1) if the county is eligible for the 25-percent 
payment, the share of the 25-percent payment; or 
‘‘(2) the share of the State payment of the eligi-
ble county. 
‘‘(e) PAYMENT AMOUNTS FOR ELIGIBLE COUNTIES.— 
The Secretary of the Treasury shall pay to each eligible 
county an amount equal to the amount elected under sub-
section (f) by the county for— 
‘‘(1) if the county is eligible for the 50-percent 
payment, the 50-percent payment; or 
‘‘(2) the county payment for the eligible county. 
‘‘(f) ELECTION TO RECEIVE PAYMENT AMOUNT.— 
‘‘(1) ELECTION; SUBMISSION OF RESULTS.— 
‘‘(A) IN GENERAL.—The election to receive 
a share of the State payment, the county pay-
ment, a share of the State payment and the 
county payment, a share of the 25-percent pay-
ment, the 50-percent payment, or a share of the 
25-percent payment and the 50-percent payment, 
as applicable, shall be made at the discretion of 
each affected county by August 1, 2008, and 
thereafter in accordance with paragraph (2)(A), 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
and transmitted to the Secretary concerned by 
the Governor of each eligible State. 
‘‘(B) FAILURE TO TRANSMIT.—If an elec-
tion for an affected county is not transmitted to 
the Secretary concerned by the date specified 
under subparagraph (A), the affected county 
shall be considered to have elected to receive a 
share of the State payment, the county payment, 
or a share of the State payment and the county 
payment, as applicable. 
‘‘(2) DURATION OF ELECTION.— 
‘‘(A) IN GENERAL.—A county election to re-
ceive a share of the 25-percent payment or 50- 
percent payment, as applicable, shall be effective 
for 2 fiscal years. 
‘‘(B) FULL FUNDING AMOUNT.—If a county 
elects to receive a share of the State payment or 
the county payment, the election shall be effective 
for all subsequent fiscal years through fiscal year 
2011. 
‘‘(g) SOURCE OF PAYMENT AMOUNTS.—The payment 
to an eligible State or eligible county under this section for 
a fiscal year shall be derived from— 
‘‘(1) any revenues, fees, penalties, or miscella-
neous receipts, exclusive of deposits to any relevant 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
trust fund, special account, or permanent operating 
funds, received by the Federal Government from ac-
tivities by the Bureau of Land Management or the 
Forest Service on the applicable Federal land; 
‘‘(2) for fiscal year 2008, any funds appro-
priated to carry out this section; and 
‘‘(3) to the extent of any shortfall, out of any 
amounts in the Treasury of the United States not oth-
erwise appropriated. 
‘‘(h) DISTRIBUTION
AND
EXPENDITURE
OF
PAY-
MENTS.— 
‘‘(1) DISTRIBUTION METHOD.—A State that re-
ceives a payment under this section shall distribute 
the appropriate payment amount among the appro-
priate counties in the State in accordance with— 
‘‘(A) the Act of May 23, 1908 (16 U.S.C. 
500); and 
‘‘(B) section 13 of the Act of March 1, 1911 
(36 Stat. 963; 16 U.S.C. 500). 
‘‘(2) 
EXPENDITURE
PURPOSES.—Subject 
to 
paragraph (3), payments received by a State under 
this section and distributed to counties in accordance 
with paragraph (1), and payments received directly 
by an eligible county under this section, shall be ex-
pended in the same manner in which 25-percent pay-
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
ments or 50-percent payments, as applicable, are re-
quired to be expended. 
‘‘(3) RESERVATION OF PORTION OF PAYMENTS.— 
Each eligible county receiving a payment under this 
section or a portion of a State’s payment under this 
section shall reserve not less than 15 percent of the 
amount received for expenditure in accordance with 
titles II and III of the Secure Rural Schools and 
Community Self-Determination Act of 2000 (16 
U.S.C. 500 note; Public Law 106–393). 
‘‘(i) TIME FOR PAYMENT.—The payments required 
under this section for a fiscal year shall be made as soon 
as practicable after the end of that fiscal year.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 69 of title 31, United States Code, 
is amended by adding at the end the following new item: 
‘‘6908. Secure rural schools transition payments.’’. 
(c) EXTENSION OF TITLES II AND III OF SECURE 
RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION 
ACT OF 2000.— 
(1) EXTENSION.—The Secure Rural Schools and 
Community Self-Determination Act of 2000 (16 
U.S.C. 500 note; Public Law 106–393) is amended— 
(A) in sections 203(a), 204(e)(3)(B)(vi), 
207(a), 208, and 303 by striking ‘‘2007’’ and in-
serting ‘‘2011’’; 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
(B) in sections 208 and 303, by striking 
‘‘2008’’ and inserting ‘‘2012’’. 
(2) DEFINITION
OF
PARTICIPATING
COUNTY.— 
The Secure Rural Schools and Community Self-Deter-
mination Act of 2000 is amended— 
(A) in section 201(1), by inserting before 
the period the following: ‘‘or that is required to 
reserve funds under section 6908(h)(3) of title 31, 
United States Code, or section 4(e) of the Public 
Land Communities Transition Act of 2007’’; and 
(B) in section 301(1), by inserting before 
the period the following: ‘‘or that is required to 
reserve funds under section 6908(h)(3) of title 31, 
United States Code, or section 4(e) of the Public 
Land Communities Transition Act of 2007’’. 
(3) DEFINITION OF PROJECT FUNDS.—The Se-
cure Rural Schools and Community Self-Determina-
tion Act of 2000 is amended—— 
(A) in section 201(2), by inserting before 
the period the following: ‘‘or reserves under sec-
tion 6908(h)(3) of title 31, United States Code, 
or section 4(e) of the Public Land Communities 
Transition Act of 2007 for expenditure in ac-
cordance with this title’’; and 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
(B) in section 301(2), by inserting before 
the period the following: ‘‘or reserves under sec-
tion 6908(h)(3) of title 31, United States Code, 
or section 4(e) of the Public Land Communities 
Transition Act of 2007 for expenditure in ac-
cordance with this title’’. 
SEC. 4. SPECIAL REQUIREMENTS REGARDING TRANSITION 
PAYMENTS TO CERTAIN STATES. 
(a) DEFINITIONS.—In this section: 
(1) ADJUSTED
AMOUNT.—The term ‘‘adjusted 
amount’’ means, with respect to a covered State— 
(A) for fiscal year 2008— 
(i) the sum of the amounts paid for fis-
cal year 2006 under section 102(a)(2) of the 
Secure Rural Schools and Community Self- 
Determination Act of 2000 (16 U.S.C. 500 
note; Public Law 106–393), as in effect on 
September 29, 2006, for the eligible counties 
in the covered State that have elected under 
section 6908 of title 31, United States Code, 
as added by section 3 of this Act, to receive 
a share of the State payment for fiscal year 
2008; and 
(ii) the sum of the amounts paid for 
fiscal year 2006 under section 103(a)(2) Se-
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
cure Rural Schools and Community Self- 
Determination Act of 2000 (16 U.S.C. 500 
note; Public Law 106–393), as in effect on 
September 29, 2006, for the eligible counties 
in the State of Oregon that have elected 
under section 6908 of title 31, United States 
Code, as added by section 3 of this Act, to 
receive the county payment for fiscal year 
2008; 
(B) for fiscal year 2009, 90 percent of— 
(i) the sum of the amounts paid for fis-
cal year 2006 under such section 102(a)(2) 
for the eligible counties in the covered State 
that have elected under such section 6908 to 
receive a share of the State payment for fis-
cal year 2009; and 
(ii) the sum of the amounts paid for 
fiscal 
year 
2006 
under 
such 
section 
103(a)(2) for the eligible counties in the 
State of Oregon that have elected under such 
section 6908 to receive the county payment 
for fiscal year 2009; 
(C) for fiscal year 2010, 81 percent of— 
(i) the sum of the amounts paid for fis-
cal year 2006 under section such 102(a)(2) 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
for the eligible counties in the covered State 
that have elected under such section 6908 to 
receive a share of the State payment for fis-
cal year 2010; and 
(ii) the sum of the amounts paid for 
fiscal 
year 
2006 
under 
such 
section 
103(a)(2) for the eligible counties in the 
State of Oregon that have elected under such 
section 6908 to receive the county payment 
for fiscal year 2010; and 
(D) for fiscal year 2011, 73 percent of— 
(i) the sum of the amounts paid for fis-
cal year 2006 under such section 102(a)(2) 
for the eligible counties in the covered State 
that have elected under such section 6908 to 
receive a share of the State payment for fis-
cal year 2011; and 
(ii) the sum of the amounts paid for 
fiscal 
year 
2006 
under 
such 
section 
103(a)(2) for the eligible counties in the 
State of Oregon that have elected under such 
section 6908 to receive the county payment 
for fiscal year 2011. 
(2) COVERED STATE.—The term ‘‘covered State’’ 
means each of the States of California, Louisiana, Or-
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
egon, Pennsylvania, South Carolina, South Dakota, 
Texas, and Washington. 
(3) ELIGIBLE COUNTY.—The term ‘‘eligible coun-
ty’’ has the meaning given that term in section 6908 
of title 31, United States Code, as added by section 
3 of this Act. 
(b) TRANSITION PAYMENTS.—For each of fiscal years 
2008 through 2011, in lieu of the payment amounts that 
otherwise would have been made under section 6908 of title 
31, United States Code, as added by section 3 of this Act, 
the Secretary of the Treasury shall pay the adjusted amount 
to each covered State and the eligible counties within the 
covered State, as applicable. 
(c) DISTRIBUTION OF ADJUSTED AMOUNT.—It is the 
intent of Congress that the method of distributing the pay-
ments under subsection (b) among the counties in a covered 
State (other than California) for each of fiscal years 2008 
through 2011 be in the same proportion that the payments 
were distributed to the eligible counties in that State in fis-
cal year 2006. 
(d) DISTRIBUTION OF PAYMENTS IN CALIFORNIA.— 
The following payments shall be distributed among the eli-
gible counties in the State of California in the same propor-
tion that payments under section 102(a)(2) of the Secure 
Rural Schools and Community Self-Determination Act of 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
2000 (16 U.S.C. 500 note; Public Law 106–393), as in effect 
on September 29, 2006, were distributed to the eligible coun-
ties for fiscal year 2006: 
(1) Payments to the State of California under 
subsection (b). 
(2) The shares of the eligible counties of the State 
payment for California under section 6908 of title 31, 
United States Code, as added by section 3 of this Act, 
for fiscal year 2011. 
(e) TREATMENT OF PAYMENTS.—Any payment made 
under subsection (b) shall be considered to be a payment 
made under section 6908 of title 31, United States Code, 
as added by section 3 of this Act, except that each eligible 
county receiving a payment under such subsection or a por-
tion of such payment under subsection (c) or (d) shall re-
serve not less than 15 percent of the amount received for 
expenditure in accordance with titles II and III of the Se-
cure Rural Schools and Community Self-Determination Act 
of 2000 (16 U.S.C. 500 note; Public Law 106–393), as re-
quired by subsection (h)(3) of such section 6908. 
SEC. 5. CONSERVATION OF RESOURCES FEES. 
(a) ESTABLISHMENT OF FEES.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of enactment of this Act, the Secretary of the 
Interior by regulation shall establish— 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
(A) a conservation of resources fee for pro-
ducing Federal oil and gas leases in the Gulf of 
Mexico; and 
(B) a conservation of resources fee for non-
producing Federal oil and gas leases in the Gulf 
of Mexico. 
(2) PRODUCING
LEASE
FEE
TERMS.—The fee 
under paragraph (1)(A)— 
(A) subject to subparagraph (C), shall apply 
to covered leases that are producing leases; 
(B) shall be set at $9 per barrel for oil and 
$1.25 per million Btu for gas, respectively, in 
2005 dollars; and 
(C) shall apply only to production of oil or 
gas occurring— 
(i) in any calendar year in which the 
arithmetic average of the daily closing 
prices for light sweet crude oil on the New 
York Mercantile Exchange (NYMEX) ex-
ceeds $34.73 per barrel for oil and $4.34 per 
million Btu for gas in 2005 dollars; and 
(ii) on or after October 1, 2006. 
(3) NONPRODUCING LEASE FEE TERMS.—The fee 
under paragraph (1)(B)— 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
(A) subject to subparagraph (C), shall apply 
to leases that are nonproducing leases; 
(B) shall be set at $3.75 per acre per year 
in 2005 dollars; and 
(C) shall apply on and after October 1, 
2006. 
(4) TREATMENT
OF
RECEIPTS.—Amounts re-
ceived by the United States as fees under this sub-
section shall be treated as offsetting receipts. 
(b) COVERED LEASE DEFINED.—In this section the 
term ‘‘covered lease’’ means a lease for oil or gas production 
in the Gulf of Mexico that is— 
(1) in existence on the date of enactment of this 
Act; 
(2) issued by the Department of the Interior 
under section 304 of the Outer Continental Shelf Deep 
Water Royalty Relief Act (43 U.S.C. 1337 note; Pub-
lic Law 104–58); and 
(3) not subject to limitations on royalty relief 
based on market price that are equal to or less than 
the price thresholds described in clauses (v) through 
(vii) of section 8(a)(3)(C) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). 
(c) ROYALTY SUSPENSION PROVISIONS.—The Sec-
retary of the Interior shall agree to a request by any lessee 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6203
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
to amend any lease issued for Central and Western Gulf 
of Mexico tracts during the period of January 1, 1998, 
through December 31, 1999, to incorporate price thresholds 
applicable to royalty suspension provisions, or amend exist-
ing price thresholds, in the amount of $34.73 per barrel 
(2005 dollars) for oil and for natural gas of $4.34 per mil-
lion Btu (2005 dollars). 
SEC. 6. SENSE OF CONGRESS ON DISTRIBUTION OF SECURE 
RURAL SCHOOLS TRANSITION PAYMENTS TO 
ELIGIBLE COUNTIES. 
It is the sense of Congress that amounts made available 
by a State to an eligible county under section 6908 of title 
31, United States Code, as added by section 3 of this Act, 
or under section 4 of this Act to support public schools in 
that county should be in addition to, and not in lieu of, 
general funds of the State made available to support public 
schools in that county, and that the State should not adjust 
education funding allocations to reflect the receipt of 
amounts under such section 6908 or section 4. 
Amend the title so as to read: ‘‘A Bill to amend 
chapter 69 of title 31, United States Code, to provide for 
the transition to full payments under such chapter to 
units of general local government in which entitlement 
land is located, to provide transitional payments during 
fiscal years 2008 through 2011 to those States and coun-
ties previously entitled to payments under the Secure 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
Rural Schools and Community Self-Determination Act of 
2000, and for other purposes.’’. 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS
Union Calendar No. 310 
110TH CONGRESS 
2D SESSION 
H. R. 3058 
[Report No. 110–505, Part I] 
A BILL 
To amend chapter 69 of title 31, United States 
Code, to provide full payments under such chap-
ter to units of general local government in which 
entitlement land is located, to provide transi-
tional payments during fiscal years 2008 through 
2012 to those States and counties previously en-
titled to payments under the Secure Rural 
Schools and Community Self-Determination Act 
of 2000, and for other purposes. 
JANUARY 15, 2008 
Committee on Agriculture discharged; committed to the 
Committee of the Whole House on the State of the 
Union and ordered to be printed 
VerDate Aug 31 2005 
01:27 Jan 18, 2008
Jkt 069200
PO 00000
Frm 00026
Fmt 6651
Sfmt 6651
E:\BILLS\H3058.RH
H3058
smartinez on PRODPC61 with BILLS