I 
113TH CONGRESS 
2D SESSION 
H. R. 5742 
To provide to the Secretary of the Interior a mechanism to cancel contracts 
for the sale of materials CA–20139 and CA–22901, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 19, 2014 
Mr. MCKEON introduced the following bill; which was referred to the 
Committee on Natural Resources 
A BILL 
To provide to the Secretary of the Interior a mechanism 
to cancel contracts for the sale of materials CA–20139 
and CA–22901, and for other purposes. 
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 ‘‘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. 
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(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.— 
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(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 
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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 
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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). 
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(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. 
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