SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Soledad Canyon Settle-
ment Act’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) CITY OF SANTA CLARITA.—The term ‘‘City 
of Santa Clarita’’ means the City of Santa Clarita, 
California. 
(2) CITY OF VICTORVILLE.—The term ‘‘City of 
Victorville’’ means the City of Victorville, California. 
(3) CONTRACTS.—The term ‘‘contracts’’ means 
the Bureau of Land Management mineral contracts 
numbered CA–20139 and CA–22901. 
(4) CONTRACT HOLDER.—The term ‘‘contract 
holder’’ means the private party to the contracts, 
and any successors that hold legal interests in the 
contracts. 
(5) COUNTY OF SAN BERNARDINO.—The term 
‘‘County of San Bernardino’’ means the County of 
San Bernardino, California. 
(6) MAP.—The term ‘‘Map’’ means the map en-
titled ‘‘Victorville disposal area, California’’ and 
dated March 2011. 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior.
(8) VICTORVILLE DISPOSAL AREA.—The term 
‘‘Victorville disposal area’’ means the 10,206.05 
acres of land identified for disposal in the West Mo-
jave Land Management Plan (2006) of the Bureau 
of Land Management and depicted on the Map. 
SEC. 3. APPRAISAL; COMPENSATION TO CONTRACT HOLD-
ER. 
(a) APPRAISALS.— 
(1) CONTRACT APPRAISAL.— 
(A) IN GENERAL.—Not later than 90 days 
after the date of enactment of this Act, the Sec-
retary shall determine by mineral appraisal, 
using the discounted cash flow method of ap-
praisal (in accordance with the appraisal guide-
lines for appraisals of large quantities of min-
eral materials contained in section IV(E) of 
BLM Mineral Material Appraisal Handbook H– 
3630)— 
(i) the fair market value of the con-
tracts; and 
(ii) the amount of royalties the Fed-
eral Government would receive under the 
contracts over the 10-year period begin-
ning on the date of enactment of this Act.
(B) CONSIDERATIONS.—In making the de-
termination under subparagraph (A), the Sec-
retary shall assume that— 
(i) the contract holder has obtained 
all the permits and entitlements necessary 
to mine, produce, and sell sand and gravel 
under the contract; and 
(ii) mining operations under the con-
tract have commenced at the time of the 
determination, with maximum annual pro-
duction volumes that— 
(I) are based on the projected 
supply and demand outlook at the 
time of determination; and 
(II) reflect depletion of the re-
serves that are subject to the contract 
within the effective periods of the con-
tract. 
(C) DONATION.—The Secretary shall pro-
vide to the contract holder and the City of 
Santa Clarita a list of approved appraisers from 
which the parties shall select and provide the 
funding to cover the costs of the appraisal 
under subparagraph (A). 
(2) LAND APPRAISAL.—
(A) IN GENERAL.—Not later than 90 days 
after the date of enactment of this Act, the Sec-
retary shall determine by appraisal standards 
under existing laws and regulations, the fair 
market value of the Victorville disposal area on 
a net present value basis. 
(B) DONATION.—The Secretary shall pro-
vide to the contract holder and the City of 
Santa Clarita a list of approved appraisers from 
which the parties shall select and provide the 
funding to cover the costs of the appraisal 
under subparagraph (A). 
(b) COMPENSATION.— 
(1) IN GENERAL.—Subject to paragraph (2), 
not later than 30 days after completion of the ap-
praisals under subsection (a), the Secretary shall 
offer the contract holder compensation for the can-
cellation of the contracts. 
(2) CONDITIONS ON OFFER.—An offer made by 
the Secretary under paragraph (1) shall be subject 
to the following conditions: 
(A) The cancellation of the contracts and 
the provision of compensation shall be contin-
gent on the availability of funds from the sale 
of the Victorville disposal area under section 4,
and any additional compensation provided 
under subparagraph (D), as determined nec-
essary by the Secretary. 
(B) The amount of compensation offered 
by the Secretary under this subsection shall be 
equal to or less than the fair market value of 
the contracts, as determined under subsection 
(a)(1)(A)(i). 
(C) The amount of compensation offered 
by the Secretary under this subsection shall be 
equal to or less than the projected revenues 
generated by the sale of the Victorville disposal 
area under section 4, less the projected lost roy-
alties to the Federal Government over the 10- 
year period beginning on the date of enactment 
of this Act, as determined under subsection 
(a)(1)(A)(ii). 
(D) If the amount of projected revenues 
described in subparagraph (C) is less than the 
fair market value determined under subsection 
(a)(1)(A)(i), the Secretary shall, not later than 
60 days after the date on which the Director of 
the Bureau of Land Management determines 
the projected revenues under subparagraph (C), 
negotiate an agreement with the contract holder
and the City of Santa Clarita to provide to the 
Secretary amounts equal to the difference, in 
the form of— 
(i) compensation to be received by the 
contract holder; and 
(ii) compensation in a form acceptable 
to the Secretary to be provided by the City 
of Santa Clarita. 
(3) ACCEPTANCE OF OFFER.— 
(A) IN
GENERAL.—The contract holder 
shall have 60 days from the later of the date on 
which the Secretary makes the offer under 
paragraph (1) or an agreement is negotiated 
under paragraph (2)(D) to accept the offer or 
agreement. 
(B) FAILURE TO ACCEPT OFFER.—If the 
contract holder does not accept the offer under 
paragraph (1) or if an agreement is not nego-
tiated under paragraph (2)(D) within the time 
period described in subparagraph (A), the con-
tracts shall remain in effect and no further ac-
tions shall taken be taken pursuant to this Act. 
SEC. 4. SALE OF LAND NEAR VICTORVILLE, CALIFORNIA. 
(a) IN GENERAL.—Notwithstanding sections 202 and 
203 of the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1712, 1713) and subject to subsections 
(b) through (f), not later than 2 years after the date of 
enactment of this Act, the Secretary shall place on the 
market and offer for sale by competitive bidding and in 
a manner designed to obtain the highest price possible, 
all right, title, and interest of the United States in and 
to the Victorville disposal area. 
(b) AVAILABILITY
OF MAP.—The Secretary shall 
keep the Map on file and available for public inspection 
in— 
(1) the office of the Director of the Bureau of 
Land Management; and 
(2) the district office of the Bureau of Land 
Management located in Barstow, California. 
(c) RIGHT OF LOCAL LAND USE AUTHORITY TO 
PURCHASE CERTAIN LAND.— 
(1) IN GENERAL.—Before a sale of land under 
subsection (a), the Secretary shall provide to the ap-
plicable local land use authority an exclusive pre-
emptive right, as determined under State law, to 
purchase any right, title, or interest of the United 
States in and to any portion of the parcels of land 
identified as ‘‘Area A’’ and ‘‘Area B’’ on the Map 
that is located within the jurisdiction of the local 
land use authority.
(2) TIMING.—A preemptive right under para-
graph (1) shall be in effect for a period of 30 days 
before the land is sold under subsection (a). 
(3) AUTHORITY.—During the period described 
in paragraph (2), the local land use authority may 
purchase some or all of the right, title, and interest 
of the United States, as provided in subsection (a), 
in and to the land to be offered for sale at fair mar-
ket value, as determined by an appraisal conducted 
by the Secretary. 
(4) EXERCISING RIGHT.—If the local land use 
authority exercises the preemptive right under para-
graph (1), the Secretary shall convey the land to the 
local land use authority immediately on payment by 
the local land use authority of the entire purchase 
price of the applicable parcel of land. 
(5) FAILURE
TO
PAY.—Failure by the local 
land use authority to purchase and pay for the right, 
title, and interest of the United States in and to the 
land described in paragraph (1) within the time pe-
riod described in paragraph (2) and to comply with 
any other terms and conditions as the Secretary may 
require shall terminate the preemptive right of the 
local land use authority with respect to the right, 
title, and interest offered for sale.
(d) WITHDRAWAL AND RESERVATION.— 
(1) WITHDRAWAL.—Subject to valid existing 
rights, the land described in subsection (a) is with-
drawn from— 
(A) entry, appropriation, or disposal under 
the public land laws; 
(B) location, entry, and patent under the 
mining laws; and 
(C) operation of the mineral leasing, min-
eral materials, and geothermal leasing laws. 
(2) RESERVATION.—In any sale or other dis-
posal of land under this section, there shall be re-
served by the United States the right of the United 
States to prospect for, mine, and remove minerals 
from the conveyed land. 
(e) CONSULTATION.—In addition to any consultation 
otherwise required by law, before initiating efforts to dis-
pose of land under this section, the Secretary shall consult 
with the City of Victorville, the County of San Bernardino, 
and surface owners in the jurisdiction in which the land 
is located regarding the potential impact of the disposal 
and other appropriate aspects of the disposal. 
(f) ACCOUNT.—The gross proceeds of a sale of land 
under subsection (a) shall be deposited in an account ac-
ceptable to the Secretary and available only for the pur-
poses of carrying out this Act. 
SEC. 5. CANCELLATION OF CONTRACTS. 
(a) IN GENERAL.—On completion of the compensa-
tion to the contract holder for the value of each contract 
in accordance with subsection (b), the Secretary shall can-
cel the contracts and withdraw those areas that were sub-
ject to the contracts from further mineral entry under all 
mineral leasing and sales authorities available to the Sec-
retary. 
(b) COMPENSATION; CANCELLATION; RETENTION OF 
FUNDS.— 
(1) IN GENERAL.—Subject to paragraph (3), 
the Secretary shall provide to the contract holder the 
compensation agreed to under section 3(b) by dis-
bursement of amounts from the account, in 4 equal 
payments, as funds are available; 
(2) CANCELLATION.— 
(A) CONTRACT CA–20139.—On completion 
of the first 2 payments to the contract holder 
under paragraph (1), the Secretary shall cancel 
contract CA–20139. 
(B) CONTRACT CA–22901.—On completion 
of the remaining 2 payments to the contract
holder under paragraph (1), the Secretary shall 
cancel contract CA–22901. 
(3) RETENTION
OF
FUNDS.—The Secretary 
shall retain sufficient funds to cover the projected 
lost 
royalties 
determined 
under 
section 
3(a)(1)(A)(ii). 
(c) RELEASE AND WAIVER.—Upon acceptance and 
receipt of compensation under subsection (b), the contract 
holder shall waive all claims against the United States 
arising out of, or relating to, the cancellation of the con-
tracts. 
Passed the House of Representatives December 11, 
2014. 
Attest: 
Clerk.
113TH CONGRESS 
2D SESSION 
H. R. 5742 
AN ACT 
To provide to the Secretary of the Interior a mech-
anism to cancel contracts for the sale of mate-
rials CA–20139 and CA–22901, and for other 
purposes.