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(2) AVAILABILITY OF MAP.—The map shall be on 
file and available for inspection in the Office of the 
Chief of the Forest Service. 
(c) TAX INCENTIVE FOR SALE OF EXISTING MINERAL 
AND GEOTHERMAL RIGHTS TO TAX-EXEMPT ENTITIES.—
(1) EXCLUSION.—For purposes of the Internal 
Revenue Code of 1986, gross income shall not include 
25 percent of the qualifying gain from a conservation 
sale of a qualifying mineral or geothermal interest. 
(2) QUALIFYING GAIN.—For purposes of this sub-
section, the term ‘‘qualifying gain’’ means any gain 
which would be recognized as long-term capital gain 
under such Code. 
(3) CONSERVATION SALE.—For purposes of this 
subsection, the term ‘‘conservation sale’’ means a sale 
which meets the following requirements: 
(A) TRANSFEREE
IS
AN
ELIGIBLE
ENTI-
TY.—The transferee of the qualifying mineral or 
geothermal interest is an eligible entity. 
(B) QUALIFYING
LETTER
OF
INTENT
RE-
QUIRED.—At the time of the sale, such transferee 
provides the taxpayer with a qualifying letter of 
intent.
329
(C) NONAPPLICATION TO CERTAIN SALES.—
The sale is not made pursuant to an order of 
condemnation or eminent domain. 
(4) QUALIFYING MINERAL OR GEOTHERMAL IN-
TEREST.—For purposes of this subsection—
(A) IN
GENERAL.—The term ‘‘qualifying 
mineral or geothermal interest’’ means an inter-
est in any mineral or geothermal deposit located 
on eligible Federal land which constitutes a tax-
payer’s entire interest in such deposit. 
(B) ENTIRE
INTEREST.—For purposes of 
subparagraph (A)—
(i) an interest in any mineral or geo-
thermal deposit is not a taxpayer’s entire 
interest if such interest in such mineral or 
geothermal deposit was divided in order to 
avoid the requirements of such subpara-
graph or section 170(f)(3)(A) of such Code, 
and 
(ii) a taxpayer’s entire interest in such 
deposit does not fail to satisfy such sub-
paragraph solely because the taxpayer has 
retained an interest in other deposits, even 
if the other deposits are contiguous with 
such certain deposit and were acquired by
330
the taxpayer along with such certain de-
posit in a single conveyance. 
(5) OTHER DEFINITIONS.—For purposes of this 
subsection—
(A) ELIGIBLE ENTITY.—The term ‘‘eligible 
entity’’ means—
(i) a governmental unit referred to in 
section 170(c)(1) of such Code, or an agency 
or department thereof operated primarily 
for 1 or more of the conservation purposes 
specified in clause (i), (ii), or (iii) of sec-
tion 170(h)(4)(A) of such Code, or 
(ii) an entity which is—
(I) 
described 
in 
section 
170(b)(1)(A)(vi) 
or 
section 
170(h)(3)(B) of such Code, and 
(II) organized and at all times 
operated primarily for 1 or more of the 
conservation 
purposes 
specified 
in 
clause (i), (ii), or (iii) of section 
170(h)(4)(A) of such Code. 
(B) QUALIFYING LETTER OF INTENT.—The 
term ‘‘qualifying letter of intent’’ means a writ-
ten letter of intent which includes the following 
statement: ‘‘The transferee’s intent is that this
331
acquisition will serve 1 or more of the conserva-
tion purposes specified in clause (i), (ii), or (iii) 
of section 170(h)(4)(A) of the Internal Revenue 
Code of 1986, that the transferee’s use of the de-
posits so acquired will be consistent with section 
170(h)(5) of such Code, and that the use of the 
deposits will continue to be consistent with such 
section, even if ownership or possession of such 
deposits is subsequently transferred to another 
person.’’. 
(6) TAX ON SUBSEQUENT TRANSFERS.—
(A) IN GENERAL.—A tax is hereby imposed 
on any subsequent transfer by an eligible entity 
of ownership or possession, whether by sale, ex-
change, or lease, of an interest acquired directly 
or indirectly in—
(i) a conservation sale described in 
paragraph (1), or 
(ii) a transfer described in clause (i), 
(ii), or (iii) of subparagraph (D). 
(B) AMOUNT OF TAX.—The amount of tax 
imposed by subparagraph (A) on any transfer 
shall be equal to the sum of—
(i) 20 percent of the fair market value 
(determined at the time of the transfer) of
332
the interest the ownership or possession of 
which is transferred, plus 
(ii) the product of—
(I) the highest rate of tax specified 
in section 11 of such Code, times 
(II) any gain or income realized 
by the transferor as a result of the 
transfer. 
(C) LIABILITY.—The tax imposed by sub-
paragraph (A) shall be paid by the transferor. 
(D) RELIEF FROM LIABILITY.—The person 
(otherwise liable for any tax imposed by sub-
paragraph (A)) shall be relieved of liability for 
the tax imposed by subparagraph (A) with re-
spect to any transfer if—
(i) the transferee is an eligible entity 
which provides such person, at the time of 
transfer, a qualifying letter of intent, 
(ii) in any case where the transferee is 
not an eligible entity, it is established to the 
satisfaction of the Secretary of the Treas-
ury, that the transfer of ownership or pos-
session, as the case may be, will be con-
sistent with section 170(h)(5) of such Code, 
and the transferee provides such person, at
333
the time of transfer, a qualifying letter of 
intent, or 
(iii) tax has previously been paid 
under this paragraph as a result of a prior 
transfer of ownership or possession of the 
same interest. 
(E) 
ADMINISTRATIVE
PROVISIONS.—For 
purposes of subtitle F of such Code, the taxes im-
posed by this paragraph shall be treated as excise 
taxes with respect to which the deficiency proce-
dures of such subtitle apply. 
(7) REPORTING.—The Secretary of the Treasury 
may require such reporting as may be necessary or 
appropriate to further the purpose under this sub-
section that any conservation use be in perpetuity. 
(d) EFFECTIVE DATES.—
(1) MORATORIUM.—Subsection (b) shall take ef-
fect on the date of the enactment of this Act. 
(2) TAX INCENTIVE.—Subsection (c) shall apply 
to sales occurring on or after the date of the enact-
ment of this Act.