II
Calendar No. 598
105TH CONGRESS
2D SESSION
H. R. 3381
IN THE SENATE OF THE UNITED STATES
SEPTEMBER 24, 1998
Received; read twice and placed on the calendar
AN ACT
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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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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; and
(4) other private property owners are willing to
enter into exchanges that further improve the owner-
ship pattern of the Gallatin National Forest.
SEC. 3. DEFINITIONS.
In this Act:
(1) BLM 
LAND.—The term ‘‘BLM land’’
means approximately 2,000 acres of Bureau of Land
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Management land (including all appurtenances to
the land) that is proposed to be acquired by BSL,
as depicted in Exhibit B to the Option Agreement.
(2) BSL.—The term ‘‘BSL’’ means Big Sky
Lumber Co., an Oregon joint venture, and its suc-
cessors 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 approxi-
mately 29,000 acres of land (including all appur-
tenances to the land) owned by the United States in
the Gallatin National Forest, Flathead National
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Forest, Deerlodge National Forest, Helena National
Forest, Lolo National Forest, and Lewis and Clark
National Forest that is proposed to be acquired by
BSL, as depicted in Exhibit B to the Option Agree-
ment.
(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) an exchange 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—
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(1) if BSL offers title acceptable to the Sec-
retary 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,
subject 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, condi-
tions, 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
Agreement—
(A) the Secretary shall place Federal land
in the Bangtail and Doe Creek areas of the
Gallatin National Forest, as identified in the
Option Agreement, in escrow pending convey-
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ance to the Secretary of the Taylor Fork land,
as identified in the Option Agreement in es-
crow;
(B) the Secretary, subject to the availabil-
ity of funds, shall purchase 71⁄2 sections of BSL
land in the Taylor Fork area held in escrow and
identified in the Option Agreement at a pur-
chase price of $4,150,000; and
(C) the Secretary shall acquire the 4 Tay-
lor 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 forests in the State of Mon-
tana 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 equiva-
lent value of Federal land shall be released
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to the Secretary in accordance with the
terms of the Option Agreement; or
(B) if funds or timber sale receipts are not
provided 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 escrow.
(b) VALUATION.—
(1) IN GENERAL.—The property and other as-
sets 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 con-
veyed by BSL or the United States under subsection
(a) are not approximately equal in value, as deter-
mined by the Secretary, the values shall be equalized
in accordance with methods identified in the Option
Agreement.
(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 (including regulations), judicial deci-
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sions, memoranda of understanding, small business
set-aside rules, 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 pro-
gram 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 Sec-
retary to be commensurate with the preparation
and administration of the identified timber sale
program.
(d) RIGHTS-OF-WAY.—As specified in the Option
Agreement—