(ii) WHEN ENTITLED TO PREFERENTIAL RIGHT.—An out-
fitting and guide concessioner is entitled to a preferential 
right of renewal under this subchapter only if— 
(I) the contract with the outfitting and guide conces-
sioner does not grant the concessioner any interest, in-
cluding any leasehold surrender interest or possessory in-
terest, in capital improvements on land owned by the 
United States within a System unit, other than a capital 
improvement constructed by a concessioner pursuant to 
the terms of a concession contract prior to November 13, 
1998, or constructed or owned by a concessioner or the 
concessioner’s predecessor before the subject land was 
incorporated into the System; 
(II) the Secretary determines that the concessioner 
has operated satisfactorily during the term of the con-
tract (including any extension); and 
(III) the concessioner has submitted a responsive pro-
posal for a proposed new concession contract that satis-
fies the minimum requirements established by the Sec-
retary pursuant to paragraph (4). 
(C) CONTRACT
WITH
ESTIMATED
GROSS
RECEIPTS
OF
LESS 
THAN $500,000.—A concessioner that holds a concession contract 
that the Secretary estimates will result in gross annual receipts of 
less than $500,000 if renewed shall be entitled to a preferential 
right of renewal under this subchapter if— 
(i) the Secretary has determined that the concessioner has 
operated satisfactorily during the term of the contract (in-
cluding any extension); and 
(ii) the concessioner has submitted a responsive proposal 
for a proposed new concession contract that satisfies the min-
imum requirements established by the Secretary pursuant to 
paragraph (4). 
(9) NEW OR ADDITIONAL SERVICES.—The Secretary shall not grant 
a preferential right to a concessioner to provide new or additional serv-
ices in a System unit. 
(10) AUTHORITY OF SECRETARY NOT LIMITED.—Nothing in this 
subchapter shall be construed as limiting the authority of the Secretary 
to determine whether to issue a concession contract or to establish its 
terms and conditions in furtherance of the policies expressed in this 
subchapter. 
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(11) EXCEPTIONS.—Notwithstanding this section, the Secretary may 
award, without public solicitation, the following: 
(A) TEMPORARY CONTRACT.—To avoid interruption of services 
to the public at a System unit, the Secretary may award a tem-
porary concession contract or an extension of an existing conces-
sions contract for a term not to exceed 3 year, except that prior 
to making the award, the Secretary shall take all reasonable and 
appropriate steps to consider alternatives to avoid the interruption. 
(B) CONTRACT IN EXTRAORDINARY CIRCUMSTANCES.—The Sec-
retary may award a concession contract in extraordinary cir-
cumstances where compelling and equitable considerations require 
the award of a concession contract to a particular party in the 
public interest. Award of a concession contract under this subpara-
graph shall not be made by the Secretary until at least 30 days 
after— 
(i) publication in the Federal Register of notice of the Sec-
retary’s intention to award the contract and the reasons for 
the action; and 
(ii) submission of notice to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Nat-
ural Resources of the House of Representatives. 
§ 101914. Term of concession contracts 
A concession contract entered into pursuant to this subchapter shall gen-
erally be awarded for a term of 10 years or less. The Secretary may award 
a contract for a term of up to 20 years if the Secretary determines that 
the contract terms and conditions, including the required construction of 
capital improvements, warrant a longer term. 
§ 101915. Protection of concessioner investment 
(a) DEFINITIONS.—In this section: 
(1) CAPITAL
IMPROVEMENT.—The term ‘‘capital improvement’’ 
means a structure, a fixture, or nonremovable equipment provided by 
a concessioner pursuant to the terms of a concession contract and lo-
cated on land of the United States within a System unit. 
(2) CONSUMER PRICE INDEX.—The term ‘‘Consumer Price Index’’ 
means— 
(A) the ‘‘Consumer Price Index—All Urban Consumers’’ pub-
lished by the Bureau of Labor Statistics of the Department of 
Labor; or 
(B) if the Index is not published, another regularly published 
cost-of-living index approximating the Consumer Price Index. 
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(b) LEASEHOLD SURRENDER INTEREST IN CAPITAL IMPROVEMENTS.— 
A concessioner that constructs a capital improvement on land owned by the 
United States within a System unit pursuant to a concession contract shall 
have a leasehold surrender interest in the capital improvement subject to 
the following terms and conditions: 
(1) IN GENERAL.—A concessioner shall have a leasehold surrender 
interest in each capital improvement constructed by a concessioner 
under a concession contract, consisting solely of a right to compensa-
tion for the capital improvement to the extent of the value of the con-
cessioner’s leasehold surrender interest in the capital improvement. 
(2) PLEDGE, TRANSFER, RELINQUISHMENT, AND WAIVER OF INTER-
EST; INTEREST NOT TO BE EXTINGUISHED; WHEN INTEREST MAY BE 
TAKEN FOR PUBLIC USE.—A leasehold surrender interest— 
(A) may be pledged as security for financing of a capital im-
provement or the acquisition of a concession contract when ap-
proved by the Secretary pursuant to this subchapter; 
(B) shall be transferred by the concessioner in connection with 
any transfer of the concession contract and may be relinquished 
or waived by the concessioner; and 
(C) shall not be extinguished by the expiration or other termi-
nation of a concession contract and may not be taken for public 
use except on payment of just compensation. 
(3) VALUE OF INTEREST.—The value of a leasehold surrender inter-
est in a capital improvement shall be an amount equal to the initial 
value (construction cost of the capital improvement), increased (or de-
creased) by the same percentage increase (or decrease) as the percent-
age increase (or decrease) in the Consumer Price Index, from the date 
of making the investment in the capital improvement by the conces-
sioner to the date of payment of the value of the leasehold surrender 
interest, less depreciation of the capital improvement as evidenced by 
the condition and prospective serviceability in comparison with a new 
unit of like kind. 
(4) VALUE
OF
INTEREST
IN
CERTAIN
NEW
CONCESSION
CON-
TRACTS.— 
(A) HOW VALUE IS DETERMINED.—The Secretary may provide, 
in any new concession contract that the Secretary estimates will 
have a leasehold surrender interest of more than $10,000,000, 
that the value of any leasehold surrender interest in a capital im-
provement shall be based on— 
(i) a reduction on an annual basis, in equal portions, over 
the same number of years as the time period associated with 
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the straight line depreciation of the initial value (construction 
cost of the capital improvement), as provided by applicable 
Federal income tax laws and regulations in effect on Novem-
ber 12, 1998; or 
(ii) an alternative formula that is consistent with the objec-
tives of this subchapter. 
(B) WHEN ALTERNATIVE FORMULA MAY BE USED.—The Sec-
retary may use an alternative formula only if the Secretary deter-
mines, after scrutiny of the financial and other circumstances in-
volved in the particular concession contract (including providing 
notice in the Federal Register and opportunity for comment), that 
the alternative formula is, compared to the standard method of de-
termining value provided for in paragraph (3), necessary to pro-
vide a fair return to the Federal Government and to foster com-
petition for the new contract by providing a reasonable oppor-
tunity to make a profit under the new contract. If no responsive 
offers are received in response to a solicitation that includes the 
alternative formula, the concession opportunity shall be resolicited 
with the leasehold surrender interest value as described in para-
graph (3). 
(5) INCREASE IN VALUE OF INTEREST.—Where a concessioner, pur-
suant to the terms of a concession contract, makes a capital improve-
ment to an existing capital improvement in which the concessioner has 
a leasehold surrender interest, the cost of the additional capital im-
provement shall be added to the then-current value of the conces-
sioner’s leasehold surrender interest. 
(c) SPECIAL RULE FOR POSSESSORY INTEREST EXISTING BEFORE NO-
VEMBER 13, 1998.— 
(1) IN GENERAL.—A concessioner that has obtained a possessory in-
terest (as defined pursuant to the Act of October 9, 1965 (known as 
the National Park Service Concessions Policy Act; Public Law 89–249, 
79 Stat. 969), as in effect on November 12, 1998) under the terms 
of a concession contract entered into before November 13, 1998, shall, 
on the expiration or termination of the concession contract, be entitled 
to receive compensation for the possessory interest improvements in the 
amount and manner as described by the concession contract. Where 
that possessory interest is not described in the existing concession con-
tract, compensation of possessory interest shall be determined in ac-
cordance with the laws in effect on November 12, 1998. 
(2) EXISTING CONCESSIONER AWARDED A NEW CONTRACT.—A con-
cessioner awarded a new concession contract to replace an existing con-
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