(5) the term ‘‘Secretary’’ means the Secretary
of the Interior.
SEC. 204. AUTHORIZATION OF ACQUISITION.
(a) IN GENERAL.—(1) Upon and subject to the terms
and conditions of this title, the Secretary shall acquire
from the Owners the lands comprising approximately
4,700 acres, as generally depicted on the map entitled
‘‘Headwaters Forest Addition—Proposed’’.
(2) Upon the acquisition of the Headwaters Forest
Addition, the Secretary shall—
(A) refrain from designating any other
timberland owned by the Owners in Humboldt
County, California, as critical habitat under the
Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.), unless payment is made to the
Owners to adequately compensate the Owners
for any additional restrictions resulting from
the designation on otherwise lawful use of the
Owner’s property; and
(2) give the Owners credit for the habitat
value of the Headwaters Forest Addition when
issuing incidental take permits under that Act.
(3) The designation of the Headwaters Forest Addi-
tion as wilderness under section 208 shall be taken into
account for the purposes of planning for Federal lands in
Humboldt County, California, under the Forest and
Rangeland Renewable Resources Planning Act of 1974
and the National Environmental Policy Act of 1969.
(4) Nothing in this title is intended or shall be con-
strued to evidence any intention by the Congress to au-
thorize future acquisition of lands by the Secretary for the
purpose of providing additional buffer area for the Head-
waters Forest or Headwaters Forest Addition.
(b) CERTAIN CONSENTS.—Lands and interests in
lands within the Headwaters Forest Addition may not be
acquired by the Secretary pursuant to this title without
the consent of the Owners.
(c) DONATIONS.—Notwithstanding any other provi-
sion of law, the Secretary may accept and expend dona-
tions of funds, property, or services from the State of Cali-
fornia for the purpose of acquiring the Headwaters Forest
Addition under this title.
SEC. 205. MANNER OF ACQUISITION.
(a) IN GENERAL.—The Secretary shall forthwith
enter into negotiations with the Owners for a written
agreement providing for the acquisition of the Headwaters
Forest Addition at its appraised fair market value in ex-
change for—
(1) the land containing harvestable timber and
the marketable timber harvesting rights referred to
in subsections (b) and (c) of section 206; and
(2) the other property referred to in section
206(d), but only to the extent the appraised fair
market value of the Headwaters Forest Addition ex-
ceeds the appraised fair market value of the land
containing harvestable timber and the marketable
timber harvesting rights referred to in subsections
(b) and (c) of section 206.
(b) EXPEDITED CONSIDERATION OF COURT CHAL-
LENGES.—Any court challenge to the execution and deliv-
ery of the Acquisition Agreement by the Secretary, the ap-
praisals and determinations made under this title, or the
performance of such Acquisition Agreement by the Sec-
retary in accordance with its terms shall be advanced on
the docket of the court in which the challenge is brought
and expedited to the greatest extent practical. The court
shall require the plaintiffs to post a bond providing for
compensation to the Owners for losses incurred if the
plaintiffs do not prevail. The court is also authorized to
award reasonable attorneys’ fees to the prevailing party.
(c) DEADLINE
FOR REACHING AGREEMENT.—(1)
The authority of the Secretary to acquire lands or inter-
ests in lands pursuant to this title shall expire with respect
to any portion of the Headwaters Forest Addition the ac-
quisition of which is not consummated within 36 months
following the date of the enactment of this Act, unless ex-
tended by Court order.
(2) If the exchange is not consummated before the
deadline specified in paragraph (1), nothing in this title
shall be construed as limiting any activity taken by the
Owners in the Headwaters Forest otherwise permitted
under Federal or State law.
(3) Until the Headwaters Forest Addition is acquired
pursuant to this title within the time specified in para-
graph (1) (including any extension under paragraph (1)),
the Owners and their designees shall be entitled to the
full and lawful use and enjoyment thereof and nothing in
this title shall be construed—
(A) to impose any limitation upon any other-
wise lawful use of such lands;
(B) as authority to defer the submission, re-
view, approval, or implementation of any timber har-
vest or similar plan with respect to any portion of
such lands; or
(C) to grant a cause of action against all or any
of the Owners thereof or their designees for engag-
ing in the lawful use of such lands.
(d) SPECIAL RULES.—The following rules shall apply
with respect to the negotiation, execution, delivery and
consummation of the Acquisition Agreement pursuant to
this title:
(1) The ‘‘appraised fair market values’’ of the
Headwaters Forest Addition and of the land con-
taining harvestable timber referred to in section
206(b) and the marketable timber harvesting rights
referred to in section 206(c) shall be determined as
of the date of the enactment of this Act by inde-
pendent appraisers, each of whom shall be qualified
and experienced in appraising timberland. The Sec-
retary and the Owners shall each appoint one such
appraiser within 30 days after the date of the enact-
ment of this Act and the two appraisers so selected
shall mutually select the third appraiser within 30
days thereafter. If the fair market values of any
property or right as determined by the three ap-
praisers are not the same, the appraised fair market
value of such property or right shall be deemed to
be equal to the average of the appraisals.
(2) The ‘‘fair market values’’ of the Headwaters
Forest Addition, and of the land containing harvest-
able timber referred to in section 206(b) and the
marketable timber harvesting rights referred to in
section 206(c), shall, as set forth in the Uniform
Standards for Federal Land Acquisitions, be equal
to the amount of cash, or in terms reasonably equiv-
alent to cash, for which in all probability the prop-
erty or rights would be sold by a knowledgeable
owner who is willing but not obligated to sell to a
knowledgeable purchaser who is willing but not obli-
gated to buy. The fair market value of any property
referred to in section 206(d) shall be as mutually
determined by the Secretary and the Owners. If they
cannot agree, they shall utilize an appraisal process
similar to that described in paragraph (1).
(3) The authority of the Secretary to acquire
lands and interests in lands pursuant to this title is
expressly limited to the 4,700 acres comprising the
Headwaters Forest Addition, and, to reduce the cost
of acquisition, the Secretary may, in his sole discre-
tion—
(A) decline to purchase any portion of the
1,700 additional acres surrounding the Head-
waters Forest; and
(B) allow legal uses to be undertaken or
continued on such 1,700 acres,
if the Secretary determines that such failure to pur-
chase or use, as the case may be, will not result in
significant ecological damage to the Headwaters
Forest.
(4) The Acquisition Agreement shall give the
Secretary adequate assurances of reasonable and
perpetual access by the United States, its designated
representatives, and the public to the Headwaters
Forest through other lands of the Owners, upon rea-
sonable terms and conditions as detailed in the Ac-
quisition Agreement. Such reasonable access shall
not interfere with the established legal uses or busi-
ness operations of the Owners and others on lands
not acquired by the United States pursuant to this
title.
(5) The Acquisition Agreement shall allow for
the Owners’ continued access to and commercial op-
eration of two gravel quarries in the 1,700 acres,
unless the Owners are adequately compensated for
forgoing such access and commercial operation.
(6) The Acquisition Agreement shall allow for
the orderly termination of operations on lands ac-
quired by the United States pursuant to this title
and for the removal by the Owners and others of
their equipment, facilities, and personal property
therefrom.
quisition Agreement is submitted to the com-
mittees specified in paragraph (8); and
(B) for termination of the Secretary’s obli-
gations under the Acquisition Agreement if leg-
islation disapproving the Acquisition Agreement
is enacted on or before the date on which the
transactions contemplated by the Acquisition
Agreement are consummated.
SEC. 206. PROPERTY TO BE RECEIVED BY OWNERS.
(a) IN GENERAL.—Effective upon and simultaneous
with the acquisition of the Headwaters Forest by the Sec-
retary pursuant to this title, there shall be vested in the
Owners the land containing harvestable timber, the mar-
ketable timber harvesting rights, and the other property
to which the Owners are entitled under the Acquisition
Agreement.
(b) AREA OF PRIORITY.—(1) In determining which
property and property rights to transfer to the Owners
under this title, the Secretary shall give priority to land
containing harvestable timber held by the Secretary lo-
cated in Humboldt County, California, and north of the
baseline of Township 3 South, but excluding any portion
of the King Range National Recreation Area.
(2) The rights described in subsection (c) of this sec-
tion and the other property described in subsection (d) of
this section shall only be transferred to the extent that
the value of the Headwaters Forest Addition exceeds the
value of land described in this subsection.
(c) MARKETABLE TIMBER HARVESTING RIGHTS.—
(1) There shall be transferred to the Owners such timber
harvesting rights on lands administered by the Bureau of
Land Management in California as the Secretary deter-
mines, within 60 days following the date of the enactment
of this Act, to be appropriate. In making the determina-
tion required by the preceding sentence, the Secretary
shall reserve appropriate areas for logging by persons
other than the Owners.
(2) In no event shall the Secretary designate for
transfer any land under subsection (b) of this section or
rights under this subsection unless the Secretary deter-
mines after reasonable inquiry that the harvesting of the
timber represented by such rights will be neither denied
nor delayed by reason of any law or rule of law, or any
judicial or administrative interpretation thereof, of the
United States, the State of California or any subdivision
thereof with respect to habitat, endangered species, or
similar matters and so certifies in writing to the Owners.
In addition, the Secretary shall take steps to assure the
Owners have right of access to the land.
(3) Any timber harvesting rights transferred to the
Owners pursuant to this subsection shall be in such form
as the Owners may reasonably request to permit the Own-
ers to sell or otherwise transfer such rights upon their re-
ceipt.
(d) OTHER PROPERTY.—(1) To the extent the
amount of the appraised fair market value of the Head-
waters Forest Addition exceeds the amount of the ap-
praised fair market value of the land containing harvest-
able timber and the marketable timber harvesting rights
referred to in subsections (b) and (c), as are actually re-
ceived by the Owners, there shall be transferred to the
Owners such other property of the United States deter-
mined by the Secretary and the Owners to be both suitable
for inclusion in the exchange and to have a fair market
value at least equal to the amount of such excess.
(2) To facilitate consummation of the exchanges con-
templated by this title, the Secretary shall, within 60 days
after the date of the enactment of this Act, provide to the
Owners a list of the properties from which the Secretary
will select any properties ultimately to be transferred to
the Owners pursuant to this subsection. Such properties
shall in no event be limited to properties under the admin-
istrative jurisdiction of the Secretary on the date of the
enactment of this Act.
(3) In selecting properties actually to be transferred
to the Owners pursuant to this subsection, the Secretary
shall give priority to those properties designated by the
Owners within 60 days following the receipt by the Owners
of the list of properties compiled by the Secretary pursu-
ant to this subsection.
(e) SPECIAL RULE FOR FEDERAL TRANSFERS.—For
purposes of making an exchange under this title, property
under the jurisdiction of any other department, agency,
or instrumentality of the United States may be trans-
ferred, subject to any advance approval of the transfer
otherwise required by law, to the administrative jurisdic-
tion of the Secretary if the Secretary identifies the prop-
erty as suitable for use in making such exchange. To facili-
tate approval of a transfer of property under this sub-
section, the Secretary shall promptly submit to the Com-
mittees referred to in section 205(d)(8) proposed legisla-
tion providing for the approvals otherwise required in con-
nection with any such proposed transfer. The transfer of
any property under this subsection shall be made without
compensation to the transferring department, agency, or
instrumentality.
SEC. 207. PAYMENTS TO LOCAL GOVERNMENTS.
(a) PAYMENT IN LIEU OF TAXES.—Solely for pur-
poses of payments made pursuant to chapter 69 of title
31 of the United States Code, all lands comprising Head-
waters Forest Addition to which the Secretary takes own-
ership pursuant to this title shall be deemed to have been
acquired for the purposes specified in section 6904(a) of
such title 31.
(b) 10-YEAR PAYMENT.—(1) Subject to annual ap-
propriations and the provisions of subsection (c), for a pe-
riod of 10 years after acquisition by the United States of
lands acquired by the Secretary pursuant to this title, the
Secretary, with respect to such acquired lands, shall make
annual payments to Humboldt County in the State of
California in an amount equal to the State of California
Timber Yield Tax revenues payable under the California
Revenue and Taxation Code (sec. 38101 et seq.) in effect
as of the date of enactment of this Act that would have
been paid with respect to such lands if the lands had not
been acquired by the United States, as determined by the
Secretary pursuant to this subsection.
(2) The Secretary, in consultation with the Humboldt
County, California, assessor, shall determine the amounts
to be paid pursuant to paragraph (1) of this subsection
based on consideration of a variety of factors including,
but not limited to—
(A) timber actually sold in the subject year
from comparable commercial forest lands of similar
soil type, slope and such determination of appro-
priate timber harvest levels,
(B) comparable timber size class, age, and qual-
ity,
(C) market conditions,
(D) all applicable Federal, State, and local laws
and regulations, and
(E) the goal of sustainable, even-flow harvest or
renewable timber resources.
(c) CALIFORNIA TIMBER YIELD TAX.—The amount
of State of California Timber Yield Tax payments paid
to Humboldt County in any year pursuant to the laws of
California for timber sold from lands acquired under this
title shall be deducted from the sums to be paid to Hum-
boldt County in that year under subsection (b).
SEC. 208. WILDERNESS DESIGNATION.
(a) DESIGNATION.—In furtherance of the purposes of
the Wilderness Act (16 U.S.C. 1131–1136), effective upon
acquisition under section 204, lands in the State of Cali-
fornia which are within the areas generally depicted on
the map referred to in section 204(a)(1) as the ‘‘Head-
waters Forest Wilderness—Proposed’’ are designated as
wilderness and therefore as a component of the National
Wilderness Preservation System. Such lands shall be
known as the Headwaters Forest Wilderness.
(b) MAP AND DESCRIPTION.—As soon as practicable
after the inclusion of any lands in the Headwaters Forest
Wilderness, the Secretary shall file a map and a legal de-
scription of the area so included with the Committee on
Resources of the House of Representatives and with the
Committee on Energy and Natural Resources of the Sen-
ate. The Secretary may correct clerical and typographical
errors in such legal description and such map. Such map
and legal description shall be on file and available for pub-
lic inspection in the offices of the California State Director
of the Bureau of Land Management, and in the offices
of the Ukiah District Manager of the Bureau of Land
Management.
(c) ADMINISTRATION.—Subject to valid existing
rights, the Secretary, acting through the Director of the
Bureau of Land Management, shall administer the lands
designated as wilderness under subsection (a) in accord-
ance with the provisions of the Wilderness Act governing
areas designated by that Act as wilderness, except that
any reference in such provisions to the effective date of
the Wilderness Act (or any similar reference) shall be
deemed to be a reference to the date of acquisition of such
lands under section 204 of this Act.
(d) STATE AUTHORITY OVER FISH
AND WILD-
LIFE.—As provided in section 4(d)(7) of the Wilderness
Act (16 U.S.C. 1133(d)(7)), nothing in this Act shall be
construed as affecting the jurisdiction or responsibilities
of the State of California with respect to wildlife and fish
in any areas designated by this Act as wilderness.
SEC. 209. MISCELLANEOUS PROVISIONS.
(a) DONATED PROPERTY.—The Secretary is author-
ized to accept donations of property for use pursuant to
section 205 in acquiring the Headwaters Forest Addition.
Notwithstanding any other provision of law, the Secretary
may convey such property to the Owners and such prop-
erty shall be available for such purposes without further
appropriation and without fiscal year limitation.
(b) BUFFER ZONES.—(1) The Congress does not in-
tend that designation of any area as wilderness under sec-
tion 208 lead to the creation of protective perimeters or
buffer zones around the wilderness area. The fact that
nonwilderness activities or uses can be seen or heard from
areas within a wilderness shall not, of itself, preclude such
activities or uses up to the boundary of the wilderness
area.
(2) Nothing in this title shall lead to or result in the
creation of protective perimeters or buffer zones in pri-
vately owned timberlands around or adjacent to the Head-
waters Forest Addition which are not acquired pursuant
to this title.
(c) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to defray the costs of the United States in par-
ticipating in the transactions authorized by this title.
TITLE III—SMITH RIVER
NATIONAL RECREATION AREA
SEC. 301. AVAILABILITY OF TIMBER FOR HARVEST IN PRE-
SCRIBED TIMBER MANAGEMENT AREA.
(a) ANNUAL SALE AMOUNTS.—In the case of the
Smith River National Recreation Area established by sec-
tion 4 of the Smith River National Recreation Area Act
(16 U.S.C. 460bbb–2), the amount of timber offered for
sale each year from the prescribed timber management
area identified in section 5(b)(2)(G) of such Act (16
U.S.C. 460bbb–3(b)(2)(G)) shall be between 2,000,000
and 5,000,000 board feet.
(b) EFFECT
OF INSUFFICIENT AVAILABLE TIM-
BER.—In any year in which the Supervisor of the Six Riv-
ers National Forest determines that insufficient timber is
available in the prescribed timber management area to
maintain sustained yield levels to meet the target specified
in subsection (a), the Supervisor may offer additional tim-
ber for sale from other areas of the Smith River National
Recreation Area so as to meet the target, except that any
such sale must be otherwise consistent with the Smith
River National Recreation Area Act.
(c) PROTECTION OF SPECIES HABITAT.—Adminis-
tration of the other seven management areas of the Smith
River National Recreation Area, as identified in section
5(b)(2) of the Smith River National Recreation Area Act
(16 U.S.C. 460bbb–3(b)(2)), in a manner consistent with
the land and resource management plan for the Six Rivers
National Forest shall be deemed to be sufficient protection
of species habitat for the purposes of the Forest and
Rangeland Renewable Resources Planning Act of 1974
(16 U.S.C. 1600 et seq.) and the Endangered Species Act
of 1973 (16 U.S.C. 1531 et seq.).
TITLE 
IV—CONTRACTING 
OUT
AND ADAPTIVE MANAGEMENT
DEMONSTRATION
SEC. 401. DEMONSTRATION PROGRAM AT SIX RIVERS NA-
TIONAL FOREST.
(a) DEMONSTRATION PROGRAM REQUIRED.—During
the 5-year period beginning on the date of the enactment
of this Act, the Secretary of Agriculture, using funds spec-
ified in subsection (d), shall conduct a demonstration pro-
gram at the Six Rivers National Forest in the State of
California regarding the contracting out to the private sec-
tor of certain resource management activities and other
activities described in subsection (b).
(b) ELEMENTS
OF DEMONSTRATION PROGRAM.—
The demonstration program conducted by the Secretary
shall contain the following elements:
(1) Contracting out to the private sector certain
resource management activities, both separately and
on a turnkey basis, including preparation of analyses
required under Option 9 of the Final Supplemental
Environmental Impact Statement on Management of
Habitat for Late Successional and Old Growth For-
ests Related Species within the Range of the North-
ern Spotted Owl, preparation of environmental and
watershed assessments in connection with timber
sales in the Six Rivers National Forest, performance
of resource field work, and performance of forest
plan implementation monitoring. In contracting out
such activities, to the greatest extent practicable, the
Secretary shall endeavor to utilize private sector
skills in communities adversely affected by reduc-
tions in the timber sale program for the National
Forest System.
(2) Development and implementation of a re-
search plan in the Six Rivers National Forest in the
area identified as the Adaptive Management Area
under Option 9 of the Final Supplemental Environ-
mental Impact Statement on Management of Habi-
tat for Late Successional and Old Growth Forests
Related Species within the Range of the Northern
Spotted Owl, including supporting environmental
documents and monitoring, that provides for the im-
plementation and evaluation of controlled silvicul-
tural treatments in late successional and old growth
timber stands in the Six Rivers National Forest for
the purpose of testing the effect of partial-cut har-
vesting of late successional and old growth timber on
old growth dependent species. To facilitate imple-
mentation of the plan, administrators of the Six Riv-
ers National Forest may work cooperatively with
other units of the National Forest System.
(c) ANNUAL REPORT.—During each year of the dem-
onstration program, the Secretary shall submit to Con-
gress an annual report and evaluation of the demonstra-
tion program.
(d) SOURCE OF FUNDS.—Twenty-five percent of the
funds generated from the sale of forest products in the
Six Rivers National Forest, after payment of any amounts
due to local governments, shall be deposited in the special
fund established under section 3 of the Act of June 9,
1930 (16 U.S.C. 576b; commonly known as the Knutson-
Vandenberg Act). Activities under subsections (b) and (c)
of this section shall qualify for funding under such section
3 of the Act of June 9, 1930.
Æ