I
104TH CONGRESS
1ST SESSION
H. R. 1527
To amend the National Forest Ski Area Permit Act of 1986 to clarify
the authorities and duties of the Secretary of Agriculture in issuing
ski area permits on National Forest System lands and to withdraw
lands within ski area permit boundaries from the operation of the mining
and mineral leasing laws.
IN THE HOUSE OF REPRESENTATIVES
MAY 1, 1995
Mr. YOUNG of Alaska introduced the following bill; which was referred to the
Committee on Resources, and in addition to the Committee on Agri-
culture, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To amend the National Forest Ski Area Permit Act of 1986
to clarify the authorities and duties of the Secretary
of Agriculture in issuing ski area permits on National
Forest System lands and to withdraw lands within ski
area permit boundaries from the operation of the mining
and mineral leasing laws.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds the following:
(1) Although ski areas occupy less than one-
twentieth of one percent of National Forest System
lands nationwide, in many rural areas of the United
States, ski areas and investments by ski area per-
mittees on National Forest System lands form the
backbone of the local economy and a preponderance
of the employment base.
(2) Ski area operations and their attendant
communities provide revenues to the United States
in the form of permit fees, income taxes, and other
revenues which are extremely significant in propor-
tion to the limited Federal acreage and Forest Serv-
ice administration and contractual obligations re-
quired to support such operations.
(3) In addition to alpine skiing, many ski area
permittees provide multiseason facilities and en-
hanced access to National Forest System lands that
result in greater public use and enjoyment of such
lands than would otherwise occur.
(4) Unlike many other private sector users of
Federal lands, ski areas in almost all cases assume
the risk to finance, construct, maintain, and market
all recreational facilities and improvements on such
lands.
(5) Many ski areas on National Forest System
lands operate in an extremely competitive environ-
ment with similar facilities located on private or
State lands, which requires ski area permittees to
maintain a high level of capital investment to up-
grade existing facilities and install new facilities
(such as lifts, trails, snowmaking and trail grooming
equipment, restaurants, and day care centers) to
serve the public.
(6) Despite an outward appearance of economic
well-being resulting from an intensive capital infra-
structure, many ski area operations are marginally
profitable due to the competition and capital invest-
ments referred to in paragraph (5), weather condi-
tions, insurance premiums, the national economy,
and other factors beyond the control of the ski area
permittee.
(7) Because of the contributions of ski areas to
the economies of the United States and the rural
communities in which they are located, and the en-
hanced use and enjoyment of National Forest Sys-
tem lands resulting from ski areas, it is in the na-
tional interest for the United States, where consist-
ent with national forest management objectives, to
take actions to promote the long-term economic
health and stability of ski areas and associated com-
munities.
(8) The National Forest Ski Area Permit Act
of 1986 (16 U.S.C. 497b) has been of assistance to
ski area operations on National Forest System lands
by providing longer term lease tenure and contrac-
tual stability to ski area permittees, but further ad-
justments and policy direction are warranted to ad-
dress problems related to permit fees and fee cal-
culations and conflicts with certain mineral activi-
ties.
(b) PURPOSE.—In light of the findings specified in
subsection (a), it is the purpose of this Act—
(1) to legislate a ski area permit fee that re-
turns fair market value to the United States and at
the same time—
(A) provides ski area permittees and the
United States with a simplified, consistent, pre-
dictable, and equitable fee formula that is com-
mensurate with long-term planning, financing,
and operational needs of ski areas; and
(B) simplifies bookkeeping and other ad-
ministrative burdens on ski area permittees and
Forest Service personnel; and
(2) to prevent future conflicts between ski area
operations and mining and mineral leasing programs
by withdrawing lands within ski area permit bound-
aries from the operation of the mining and mineral
leasing laws.
SEC. 2. SKI AREA PERMIT FEES AND WITHDRAWAL OF SKI
AREAS FROM OPERATION OF MINING LAWS.
The National Forest Ski Area Permit Act of 1986
(16 U.S.C. 497b) is amended by adding at the end the
following new sections:
‘‘SEC. 4. SKI AREA PERMIT FEES.
‘‘(a) SKI AREA PERMIT FEE.—After the date of the
enactment of this section, the fee for all ski area permits
on National Forest System lands shall be calculated,
charged, and paid only as set forth in subsection (b) in
order to—
‘‘(1) return fair market value to the United
States and at the same time provide ski area permit-
tees and the United States with a simplified, consist-
ent, predictable, and equitable permit fee;
‘‘(2) simplify administrative, bookkeeping, and
other requirements currently imposed on the Sec-
retary of Agriculture and ski area permittees on na-
tional forest lands; and
‘‘(3) save costs associated with the calculation
of ski area permit fees.
‘‘(b) METHOD OF CALCULATION.—
‘‘(1) DETERMINATION
OF
ADJUSTED
GROSS
REVENUE SUBJECT TO FEE.—The Secretary of Agri-
culture shall calculate the ski area permit fee
(SAPF) to be charged a ski area permittee by first
determining the permittee’s adjusted gross revenue
(AGR) to be subject to the permit fee. The permit-
tee’s adjusted gross revenue (AGR) is equal to the
sum of the following:
‘‘(A) The permittee’s gross revenues from
alpine lift ticket and alpine season pass sales
plus revenue from alpine ski school operations
(LTA+SSA), with such total multiplied by the
permittee’s slope transport feet percentage
(STFP) on National Forest System lands.
‘‘(B) The permittee’s gross revenues from
nordic ski use pass sales and nordic ski school
operations (LTN+SSN), with such total multi-
plied by the permittee’s percentage (NR) of
nordic trails on National Forest System lands.
‘‘(C) The permittee’s gross revenues from
ancillary facilities (GRAF) physically located on
National Forest System lands, including all per-
mittee or subpermittee lodging, food service,
rental shops, parking, and other ancillary oper-
ations.
‘‘(2) DEPICTION OF FORMULA.—Utilizing the
abbreviations indicated in paragraph (1), the cal-
culation of the adjusted gross revenue (AGR) of a
ski area permittee is illustrated by the following for-
mula:
‘‘AGR = ((LTA + SSA) × STFP) + ((LTN + SSN) × NR)
+ GRAF
‘‘(3) DETERMINATION
OF
SKI
AREA
PERMIT
FEE.—The Secretary shall determine the ski area
permit fee (SAPF) to be charged a ski area permit-
tee by multiplying adjusted gross revenue deter-
mined under paragraph (1) for the permittee by the
following percentages for each revenue bracket and
adding the total for each revenue bracket:
‘‘(A) 1.5 percent of all adjusted gross reve-
nue below $3,000,000.
‘‘(B) 2.5 percent for adjusted gross reve-
nue between $3,000,000 and $15,000,000.
‘‘(C) 2.75 percent for adjusted gross reve-
nue between $15,000,000 and $50,000,000.
‘‘(D) 4.0 percent for the amount of ad-
justed gross revenue that exceeds $50,000,000.
‘‘(4) SLOPE TRANSPORT FEET PERCENTAGE.—
In cases where ski areas are only partially located on
National Forest System lands, the slope transport
feet percentage on national forest land referred to in
paragraph (1) is hereby determined to most accu-
rately reflect the percent of an alpine ski area per-
mittee’s total skier service capacity which is located
on National Forest System land. It shall be cal-
culated as generally described in the Forest Service
Manual in effect as of January 1, 1992.
‘‘(5) ANNUAL
ADJUSTMENT
OF
ADJUSTED
GROSS REVENUE.—In order to insure that the ski
area permit fee set forth in this subsection remains
fair and equitable to both the United States and ski
area permittees, the Secretary shall adjust, on an
annual basis, the adjusted gross revenue figures for
each revenue bracket in subparagraphs (A) through
(D) of paragraph (3) by the percent increase or de-
crease in the national Consumer Price Index for the
preceding calendar year.
‘‘(c) MINIMUM RENTAL FEE.—In cases where an
area of National Forest System land is under a ski area
permit but the permittee does not have revenue or sales
qualifying for fee payment pursuant to subsection (a), the
permittee shall pay an annual minimum rental fee of $2
for each acre of National Forest System land under per-
mit. Rental fees imposed under this subsection shall be
paid at the time specified in subsection (d).
‘‘(d) TIME FOR PAYMENT.—Unless otherwise mutu-
ally agreed to by the ski area permittee and the Secretary,
the ski area permit fee set forth in subsection (b) shall
be paid by the permittee by August 31 of each year and
cover all applicable revenues received during the 12-month
period ending on June 30 of that year. To simplify book-
keeping and fee calculation burdens on the permittee and
the Forest Service, the Secretary shall no later than
March 15 of each year provide each ski area permittee
with a standardized form and worksheets (including an-
nual fee calculation brackets and rates) to be utilized for
fee calculation and submitted with the fee payment.
‘‘(e) EXCLUSION OF REVENUE OBTAINED OUTSIDE
OF NATIONAL FOREST LANDS.—Under no circumstances
shall ski area permittee revenue or subpermittee revenue
(other than lift ticket, area use pass, or ski school sales)
obtained from operations physically located on nonnational
forest land be included in the ski area permit fee calcula-
tion.
‘‘(f) DEFINITIONS.—To simplify bookkeeping and ad-
ministrative burdens on ski area permittees and the For-
est Service, as used in this section, the terms ‘‘revenue’’
and ‘‘sales’’ shall mean actual income from sales. Such
terms shall not include sales of operating equipment, re-
funds, rent paid to the permittee by sublessees, sponsor
contributions to special events or any amounts attrib-
utable to employee gratuities, discounts, complimentary
lift tickets, or other goods or services (except for bartered
goods) for which the permittee does not receive money.
‘‘(g) EFFECTIVE DATE FOR FEES.—The ski area
permit fees required by this section shall become effective
on July 1, 1995 and cover receipts retroactive to July 1,
1994. If a ski area permittee has paid fees for the 12-
month period ending on June 30, 1995, under the grad-
uated rate fee system formula in effect prior to the date
of the enactment of this section, such fees shall be credited
toward the new ski area permit fee due for that period
under this section.
‘‘(h) TRANSITIONAL SKI AREA PERMIT FEES.—
‘‘(1) DETERMINATION OF AVERAGE FEES.—In
order to minimize in any one year the effects of con-
verting individual ski areas from the fee system in
existence on the date of the enactment of this sec-
tion to the ski area permit fee required by sub-
section (a), each ski area permittee subject to the
new fee shall determine the permittee’s average ex-
isting fees (AEF) for each year of the three-year pe-
riod ending on June 30, 1994, and the permittee’s
proforma average ski area permit fee (ASF) under
subsection (a) for each year of that period. Both the
AEF and ASF shall be determined by adding to-
gether the fee payment made by the ski area or the
estimated payment that would have been paid under
subsection (a) for each year of that period and divid-
ing by three.
‘‘(2) 
DETERMINATION
OF
TRANSITIONAL
FEES.—To calculate the ski area permit fee required
by subsection (a) for each year in the five-year pe-
riod ending on June 30, 1999, the Secretary of Ag-
riculture shall divide the ski area permit fee required
by subsection (a) by the ASF and then multiply by
the AEF. The resulting fee shall be called the Ad-
justed Base Fee (ABF). After June 30, 1999, all ski
areas will pay the ski area permit fee required by
subsection (a) without regard to previous fees or
rates paid.
‘‘(3) EFFECT OF LOW ABF.—Should the ABF
be less than the ski area permit fee required by sub-
section (a), the ski area permittee shall pay the less-
er of the fee required by subsection (a) or the ABF,
which shall be adjusted by multiplying the ABF
by—
‘‘(A) 1.1 for the fee required to be paid by
August 31, 1995;
‘‘(B) 1.2 for the fee required to be paid by
August 31, 1996;
‘‘(C) 1.3 for the fee required to be paid by
August 31, 1997;
‘‘(D) 1.4 for the fee required to be paid by
August 31, 1998; and
‘‘(E) 1.5 for the fee required to be paid by
August 31, 1999.
‘‘(3) EFFECT OF HIGH ABF.—Should the ABF
be greater than the ski area permit fee required by
subsection (a), the ski area permittee shall pay the
greater of the fee required by subsection (a) or the
ABF, which shall be adjusted by multiplying the
ABF by—
‘‘(A) 0.9 for the fee required to be paid by
August 31, 1995;
‘‘(B) 0.8 for the fee required to be paid by
August 31, 1996;
‘‘(C) 0.7 for the fee required to be paid by
August 31, 1997;
‘‘(D) 0.6 for the fee required to be paid by
August 31, 1998; and
‘‘(E) 0.5 for the fee required to be paid by
August 31, 1999.
‘‘SEC. 5. WITHDRAWAL OF SKI AREAS FROM OPERATION OF
MINING LAWS.
‘‘Subject to valid existing rights, all lands located
within the boundaries of ski area permits issued prior to,
on, or after the date of the enactment of this section pur-
suant to the authority of the Act of March 4, 1915 (16
U.S.C. 497), the Act of June 4, 1897 (16 U.S.C. 473 et
seq.), or section 3 of this Act are hereby and henceforth
automatically withdrawn from all forms of appropriation
under the mining laws and from disposition under all laws
pertaining to mineral and geothermal leasing and all
amendments to such laws. Such withdrawal shall continue
for the full term of the permit and any modification,
reissuance, or renewal of the permit. Such withdrawal
shall be canceled automatically upon expiration or other
termination of the permit unless, at the request of the Sec-
retary of Agriculture, the Secretary of the Interior deter-
mines to continue the withdrawal. Upon cancellation of the
withdrawal, the land shall be automatically restored to all
appropriation not otherwise restricted under the public
land laws.’’.
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