Union Calendar No. 416
105TH CONGRESS
2D SESSION
H. R. 3381
[Report No. 105–723, Part I]
A BILL
To direct the Secretary of Agriculture and the Sec-
retary of the Interior to exchange land and other
assets with Big Sky Lumber Co.
SEPTEMBER 16, 1998
Reported from the Committee on Resources with
amendments
SEPTEMBER 16, 1998
Referral to the Committee on Agriculture extended for a
period ending not later than September 16, 1998
SEPTEMBER 16, 1998
Committee on Agriculture discharged; committed to the
Committee of the Whole House on the State of the
Union and ordered to be printed
IB
Union Calendar No. 416
105TH CONGRESS
2D SESSION
H. R. 3381
[Report No. 105–723, Part I]
To direct the Secretary of Agriculture and the Secretary of the Interior
to exchange land and other assets with Big Sky Lumber Co.
IN THE HOUSE OF REPRESENTATIVES
MARCH 5, 1998
Mr. HILL introduced the following bill; which was referred to the Committee
on Resources, and in addition to the Committee on Agriculture, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the commit-
tee concerned
SEPTEMBER 16, 1998
Reported from the Committee on Resources with amendments
[Strike out all after the enacting clause and insert the part printed in italic]
SEPTEMBER 16, 1998
Referral to the Committee on Agriculture extended for a period ending not
later than September 16, 1998
SEPTEMBER 16, 1998
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 March 5, 1998]
A BILL
To direct the Secretary of Agriculture and the Secretary
of the Interior to exchange land and other assets with
Big Sky Lumber Co.
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 the ‘‘Gallatin Land Consoli-
dation Act of 1998’’.
SEC. 2. FINDINGS.
Congress finds that—
(1) the land north of Yellowstone National Park
possesses outstanding natural characteristics and
wildlife habitats that make the land a valuable addi-
tion to the National Forest System;
(2) it is in the interest of the United States to
establish a logical and effective ownership pattern for
the Gallatin National Forest, reducing long-term costs
for taxpayers and increasing and improving public
access to the forest;
(3) it is in the interest of the United States for
the Secretary of Agriculture to enter into an Option
Agreement for the acquisition of land owned by Big
Sky Lumber Co. to accomplish the purposes of this
Act;
(4) other private property owners are willing to
enter into exchanges that further improve the owner-
ship pattern of the Gallatin National Forest; and
(5) BSL, acting in good faith, has shouldered
many aspects of the financial burden of the appraisal
and subsequent option and exchange process.
SEC. 3. DEFINITIONS.
In this Act:
(1) BLM LAND.—The term ‘‘BLM land’’ means
approximately 2,000 acres of Bureau of Land Man-
agement land (including all appurtenances to the
land) that is proposed to be acquired by BSL, as de-
picted in Exhibit B to the Option Agreement.
(2) BSL.—The term ‘‘BSL’’ means Big Sky
Lumber Co., an Oregon joint venture, and its succes-
sors and assigns, and any other entities having a
property interest in the BSL land.
(3) BSL LAND.—The term ‘‘BSL land’’ means
approximately 54,000 acres of land (including all ap-
purtenances to the land except as provided in section
4(e)(1)(D)(i)) owned by BSL that is proposed to be
acquired by the Secretary of Agriculture, as depicted
in Exhibit A to the Option Agreement.
(4) EASTSIDE
NATIONAL
FORESTS.—The term
‘‘Eastside National Forests’’ means national forests
east of the Continental Divide in the State of Mon-
tana, including the Beaverhead National Forest,
Deerlodge National Forest, Helena National Forest,
Custer National Forest, and Lewis and Clark Na-
tional Forest.
(5) NATIONAL FOREST SYSTEM LAND.—The term
‘‘National Forest System land’’ means approximately
29,000 acres of land (including all appurtenances to
the land) owned by the United States in the Gallatin
National Forest, Flathead National Forest, Deerlodge
National Forest, Helena National Forest, Lolo Na-
tional Forest, and Lewis and Clark National Forest
that is proposed to be acquired by BSL, as depicted
in Exhibit B to the Option Agreement.
(6) OPTION
AGREEMENT.—The term ‘‘Option
Agreement’’ means—
(A) the document signed by BSL, dated
July 29, 1998, and entitled ‘‘Option Agreement
for the Acquisition of Big Sky Lumber Co.
Lands Pursuant to the Gallatin Range Consoli-
dation and Protection Act of 1993’’;
(B) the exhibits and maps attached to the
document described in subparagraph (A); and
(C) a negotiated agreement to be entered
into between the Secretary and BSL and made
part of the document described in subparagraph
(A).
(7) SECRETARY.—The ‘‘Secretary’’ means the
Secretary of Agriculture.
SEC. 4. GALLATIN LAND CONSOLIDATION COMPLETION.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, and subject to the terms and conditions of the
Option Agreement—
(1) if BSL offers title acceptable to the Secretary
to the BSL land—
(A) the Secretary shall accept a warranty
deed to the BSL land and a quit claim deed to
agreed to mineral interests in the BSL land;
(B) the Secretary shall convey to BSL, sub-
ject to valid existing rights and to other terms,
conditions, reservations, and exceptions as may
be agreed to by the Secretary and BSL, fee title
to the National Forest System land; and
(C) the Secretary of the Interior shall con-
vey to BSL, by patent or otherwise, subject to
valid existing rights and other terms, conditions,
reservations, and exceptions as may be agreed to
by the Secretary of the Interior and BSL, fee
title to the BLM land;
(2) if BSL places title in escrow acceptable to
the Secretary to 111⁄2 sections of the BSL land in the
Taylor Fork area as set forth in the Option Agree-
ment—
(A) the Secretary shall place Federal land
in the Bangtail and Doe Creek areas of the Gal-
latin National Forest, as identified in the Op-
tion Agreement, in escrow pending conveyance to
the Secretary of the Taylor Fork land, as identi-
fied in the Option Agreement in escrow;
(B) the Secretary, subject to the availability
of funds, shall purchase 71⁄2 sections of BSL land
in the Taylor Fork area held in escrow and iden-
tified in the Option Agreement at a purchase
price of $4,150,000 plus interest at a rate accept-
able to the Secretary; and
(C) the Secretary shall acquire the 4 Taylor
Fork sections identified in the Option Agreement
remaining in escrow, and any of the 6 sections
referred to in subparagraph (B) for which funds
are not available, by providing BSL with timber
sale receipts from timber sales on the Gallatin
National Forest and other eastside national for-
ests in the State of Montana in accordance with
subsection (c); and
(3)(A) as funds or timber sale receipts are re-
ceived by BSL—
(i) the deeds to an equivalent value of BSL
Taylor Fork land held in escrow shall be released
and conveyed to the Secretary; and
(ii) the escrow of deeds to an equivalent
value of Federal land shall be released to the Sec-
retary in accordance with the terms of the Op-
tion Agreement; or
(B) if funds or timber sale receipts are not pro-
vided to BSL as provided in the Option Agreement,
BSL shall be entitled to receive patents and deeds to
an equivalent value of the Federal land held in es-
crow.
(b) VALUATION.—
(1) IN GENERAL.—The property and other assets
exchanged or conveyed by BSL and the United States
under subsection (a) shall be approximately equal in
value, as determined by the Secretary.
(2) DIFFERENCE IN VALUE.—To the extent that
the property and other assets exchanged or conveyed
by BSL or the United States under subsection (a) are
not approximately equal in value, as determined by
the Secretary, the values shall be equalized in accord-
ance with methods identified in the Option Agree-
ment.
(c) TIMBER SALE PROGRAM.—
(1) IN
GENERAL.—The Secretary shall imple-
ment a timber sale program, according to the terms
and conditions identified in the Option Agreement
and subject to compliance with applicable environ-
mental laws, judicial decisions, and acts beyond the
control of the Secretary, to generate sufficient timber
receipts to purchase the portions of the BSL land in
Taylor Fork identified in the Option Agreement.
(2) IMPLEMENTATION.—In implementing the
timber sale program—
(A) the Secretary shall provide BSL with a
proposed annual schedule of timber sales;
(B) as set forth in the Option Agreement,
receipts generated from the timber sale program
shall be deposited by the Secretary in a special
account established by the Secretary and paid by
the Secretary to BSL;
(C) receipts from the Gallatin National
Forest shall not be subject to the Act of May 23,
1908 (16 U.S.C. 500); and
(D) the Secretary shall fund the timber sale
program at levels determined by the Secretary to
be commensurate with the preparation and ad-
ministration of the identified timber sale pro-
gram.
(d) RIGHTS-OF-WAY.—As specified in the Option
Agreement—
(1) the Secretary, under the authority of the Fed-
eral Land Policy and Management Act of 1976 (43
U.S.C. 1701 et seq.), shall convey to BSL such ease-
ments in or other rights-of-way over National Forest
System land for access to the land acquired by BSL
under this Act for all lawful purposes; and
(2) BSL shall convey to the United States such
easements in or other rights-of-way over land owned
by BSL for all lawful purposes, as may be agreed to
by the Secretary and BSL.
(e) QUALITY OF TITLE.—
(1) DETERMINATION.—The Secretary shall re-
view the title for the BSL land described in subsection
(a) and, within 45 days after receipt of all applicable
title documents from BSL, determine whether—
(A) the applicable title standards for Fed-
eral land acquisition have been satisfied and the
quality of the title is otherwise acceptable to the
Secretary of Agriculture;
(B) all draft conveyances and closing docu-
ments have been received and approved;
(C) a current title commitment verifying
compliance with applicable title standards has
been issued to the Secretary; and
(D) the title includes both the surface and
subsurface estates without reservation or excep-
tion (except as specifically provided in this Act),
including—
(i) minerals, mineral rights, and min-
eral interests (including severed oil and gas
surface rights), subject to and excepting
other outstanding or reserved oil and gas
rights;
(ii) timber, timber rights, and timber
interests (except those reserved subject to
section 251.14 of title 36, Code of Federal
Regulations, by BSL and agreed to by the
Secretary);
(iii) water, water rights, ditch, and
ditch rights;
(iv) geothermal rights; and
(v) any other interest in the property.
(2) CONVEYANCE OF TITLE.—
(A) IN
GENERAL.—If the quality of title
does not meet Federal standards or is otherwise
determined to be unacceptable to the Secretary of
Agriculture, the Secretary shall advise BSL re-
garding corrective actions necessary to make an
affirmative determination under paragraph (1).
(B) TITLE TO SUBSURFACE ESTATE.—Title
to the subsurface estate shall be conveyed by BSL
to the Secretary in the same form and content as
that estate is received by BSL from Burlington
Resources Oil & Gas Company Inc. and Glacier
Park Company.
(f) TIMING OF IMPLEMENTATION.—
(1) LAND-FOR-LAND EXCHANGE.—The Secretary
shall accept the conveyance of land described in sub-
section (a) not later than 45 days after the Secretary
has made an affirmative determination of quality of
title.
(2) 
LAND-FOR-TIMBER
SALE
RECEIPT
EX-
CHANGE.—As provided in subsection (c) and the Op-
tion Agreement, the Secretary shall make timber re-
ceipts described in subsection (a)(3) available not
later than December 31 of the fifth full calendar year
that begins after the date of enactment of this Act.
(3) PURCHASE.—The Secretary shall complete
the purchase of BSL land under subsection (a)(2)(B)
not later than 30 days after the date on which funds
are made available for such purchase and an affirma-
tive determination of quality of title is made with re-
spect to the BSL land.
SEC. 5. OTHER FACILITATED EXCHANGES.
(a) AUTHORIZED EXCHANGES.—
(1) IN GENERAL.—The Secretary shall enter into
the following land exchanges if the landowners are
willing:
(A) Wapiti land exchange, as outlined in
the documents entitled ‘‘Non-Federal Lands in
Facilitated Exchanges’’ and ‘‘Federal Lands in
Facilitated Exchanges’’ and dated July 1998.
(B) Eightmile/West Pine land exchange as
outlined in the documents entitled ‘‘Non-Federal
Lands in Facilitated Exchanges’’ and ‘‘Federal
Lands in Facilitated Exchanges’’ and dated July
1998.
(2) EQUAL VALUE.—Before entering into an ex-
change under paragraph (1), the Secretary shall de-
termine that the parcels of land to be exchanged are
of approximately equal value, based on an appraisal.
(b) SECTION 1 OF THE TAYLOR FORK LAND.—
(1) IN GENERAL.—The Secretary is encouraged
to pursue a land exchange with the owner of section
1 of the Taylor Fork land after completing a full pub-
lic process and an appraisal.
(2) REPORT.—The Secretary shall report to Con-
gress on the implementation of paragraph (1) not
later than 180 days after the date of enactment of this
Act.
SEC. 6. GENERAL PROVISIONS.
(a) MINOR CORRECTIONS.—
(1) IN GENERAL.—The Option Agreement shall
be subject to such minor corrections and supplemental
provisions as may be agreed to by the Secretary and
BSL.
(2) NOTIFICATION.—The Secretary shall notify
the Committee on Energy and Natural Resources of
the Senate, the Committee on Resources of the House
of Representatives, and each member of the Montana
congressional delegation of any changes made under
this subsection.
(3) BOUNDARY ADJUSTMENT.—
(A) IN
GENERAL.—The boundary of the
Gallatin National Forest is adjusted in the
Wineglass and North Bridger area, as described
on maps dated July 1998, upon completion of
the conveyances.
(B) NO LIMITATION.—Nothing in this sub-
section limits the authority of the Secretary to
adjust the boundary pursuant to section 11 of
the Act of March 1, 1911 (commonly known as
the ‘‘Weeks Act’’) (16 U.S.C. 521).
(C) ALLOCATION OF LAND AND WATER CON-
SERVATION FUND MONEYS.—For the purposes of
section 7 of the Land and Water Conservation
Fund Act of 1965 (16 U.S.C. 460l–9), bound-
aries of the Gallatin National Forest shall be
considered to be the boundaries of the National
Forest as of January 1, 1965.
(b) PUBLIC AVAILABILITY.—The Option Agreement—
(1) shall be on file and available for public in-
spection in the office of the Supervisor of the Gallatin
National Forest; and
(2) shall be filed with the county clerk of each of
Gallatin County, Park County, Madison County,
Granite County, Broadwater County, Meagher Coun-
ty, Flathead County, and Missoula County, Montana.
(c) COMPLIANCE WITH OPTION AGREEMENT.—The
Secretary, the Secretary of the Interior, and BSL shall com-
ply with the terms and conditions of the Option Agreement
except to the extent that any provision of the Option Agree-
ment conflicts with this Act.
(d) CONVEYANCE OF TIMBER.—After completion of the
land-for-land exchange under section 4(a)(1), the Secretary
shall convey to BSL 1,000,000 board feet of timber from
roaded land in the Gallatin National Forest, which—
(1) shall be treated as reserved timber under sec-
tion 251.14 of title 36, Code of Federal Regulations;
and
(2) shall not be considered as part of the ap-
praisal value of land exchanged under this Act.
(e) STATUS
OF LAND.—All land conveyed to the
United States under this Act shall be added to and adminis-
tered as part of the Gallatin National Forest and Deerlodge
National Forest, as appropriate, in accordance with the Act
of March 1, 1911 (5 U.S.C. 515 et seq.), and other laws
(including regulations) pertaining to the National Forest
System.
(f) MANAGEMENT.—
(1) PUBLIC PROCESS.—Not later than 30 days
after the date of completion of the land-for-land ex-
change under section 4(f)(1), the Secretary shall initi-
ate a public process to amend the Gallatin National
Forest Plan and the Deerlodge National Forest Plan
to integrate the acquired land into the plans.
(2) PROCESS
TIME.—The amendment process
under paragraph (1) shall be completed as soon as
practicable, and in no event later than 540 days after
the date on which the amendment process is initiated.
(3) LIMITATION.—An amended management
plan shall not permit surface occupancy on the ac-
quired land for access to reserved or outstanding oil
and gas rights or for exploration or development of oil
and gas.
(4) INTERIM MANAGEMENT.—Pending completion
of the forest plan amendment process under para-
graph (1), the Secretary shall—
(A) manage the acquired land under the
standards and guidelines in the applicable land
and resource management plans for adjacent
land managed by the Forest Service; and
(B) maintain all existing public access to
the acquired land.
(g) RESTORATION.—
(1) IN
GENERAL.—The Secretary shall imple-
ment a restoration program including reforestation
and watershed enhancements to bring the acquired
land and surrounding national forest land into com-
pliance with Forest Service standards and guidelines.
(2) STATE AND LOCAL CONSERVATION CORPS.—
In implementing the restoration program, the Sec-
retary shall, when practicable, use partnerships with
State and local conservation corps, including the
Montana Conservation Corps, under the Public Lands
Corps Act of 1993 (16 U.S.C. 1721 et seq.).
(h) IMPLEMENTATION.—The Secretary of Agriculture
shall ensure that sufficient funds are made available to the
Gallatin National Forest to carry out this Act.
(i) REVOCATIONS.—Notwithstanding any other provi-
sion of law, any public orders withdrawing lands identified
in the Option Agreement from all forms of appropriation
under the public land laws are revoked upon conveyance
of the lands by the Secretary.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as
are necessary to carry out this Act.
Amend the title so as to read: ‘‘A bill to direct the
Secretary of Agriculture and the Secretary of the Interior
to exchange land and other assets with Big Sky Lumber
Co. and other entities.’’.