370
rights monitors of the Organization throughout Cuba and
on-site visits to Cuba by the Inter-American Commission
on Human Rights.
(3) Notwithstanding section 307 of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2227) or any other provi-
sion of law limiting the United States proportionate share
of assistance to Cuba by any international organization,
the President should provide not less than $5,000,000 of
the voluntary contributions of the United States to the
Organization of American States as of the date of the en-
actment of this Act solely for the purposes of the special
fund referred to in paragraph (1).
SEC. 6220. WITHHOLDING OF FOREIGN ASSISTANCE FROM
COUNTRIES SUPPORTING NUCLEAR PLANT
IN CUBA.
(a) FINDINGS.—The Congress makes the following
findings:
(1) President Clinton stated in April 1993 that
‘‘the United States opposes the construction of the
Juragua nuclear power plant because of our con-
cerns about Cuba’s ability to ensure the safe oper-
ation of the facility and because of Cuba’s refusal to
sign the Nuclear Non-Proliferation Treaty or ratify
the Treaty of Tlatelolco.’’.
371
(2) Cuba has not signed the Treaty on the Non-
Proliferation of Nuclear Weapons or ratified the
Treaty of Tlatelolco, the latter of which establishes
Latin America and the Caribbean as a nuclear weap-
ons-free zone.
(3) The State Department, the Nuclear Regu-
latory Commission, and the Department of Energy
have expressed concerns about the construction and
operation of Cuba’s nuclear reactors.
(4) In a September 1992 report to Congress,
the General Accounting Office outlined concerns
among nuclear energy experts about deficiencies in
the nuclear plant project in Juragua, near Cienfue-
gos, Cuba, including—
(A) a lack in Cuba of a nuclear regulatory
structure;
(B) the absence in Cuba of an adequate in-
frastructure to ensure the plant’s safe operation
and requisite maintenance;
(C) the inadequacy of training of plant op-
erators;
(D) reports by a former technician from
Cuba who, by examining with x-rays weld sites
believed to be part of the auxiliary plumbing
372
system for the plant, found that 10 to 15 per-
cent of those sites were defective;
(E) since September 5, 1992, when con-
struction on the plant was halted, the prolonged
exposure to the elements, including corrosive
salt water vapor, of the primary reactor compo-
nents; and
(F) the possible inadequacy of the upper
portion of the reactors’ dome retention capabil-
ity to withstand only 7 pounds of pressure per
square inch, given that normal atmospheric
pressure is 32 pounds per square inch and
United States reactors are designed to accom-
modate pressures of 50 pounds per square inch.
(5) The United States Geological Survey claims
that it had difficulty determining answers to specific
questions regarding earthquake activity in the area
near Cienfuegos because the Cuban Government was
not forthcoming with information.
(6) The Geological Survey has indicated that
the Caribbean plate, a geological formation near the
south coast of Cuba, may pose seismic risks to Cuba
and the site of the power plant, and may produce
large to moderate earthquakes.
373
(7) On May 25, 1992, the Caribbean plate pro-
duced an earthquake numbering 7.0 on the Richter
scale.
(8) According to a study by the National Oce-
anic and Atmospheric Administration, summer
winds could carry radioactive pollutants from a nu-
clear accident at the power plant throughout all of
Florida and parts of the States on the gulf coast as
far as Texas, and northern winds could carry the
pollutants as far northeast as Virginia and Washing-
ton, D.C.
(9) The Cuban Government, under dictator
Fidel Castro, in 1962 advocated the Soviets’ launch-
ing of nuclear missiles to the United States, which
represented a direct and dangerous provocation of
the United States and brought the world to the
brink of a nuclear conflict.
(10) Fidel Castro over the years has consist-
ently issued threats against the United States Gov-
ernment, most recently that he would unleash an-
other perilous mass migration from Cuba upon the
enactment of this Act.
(11) Despite the various concerns about the
plant’s safety and operational problems, a feasibility
study is being conducted that would establish a sup-
374
port group to include Russia, Cuba, and third coun-
tries with the objective of completing and operating
the plant.
(b) WITHHOLDING OF FOREIGN ASSISTANCE.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, the President shall withhold from
assistance allocated, on or after the date of the en-
actment of this Act, for any country an amount
equal to the sum of assistance and credits, if any,
provided on or after such date of enactment by that
country or any entity in that country in support of
the completion of the Cuban nuclear facility at
Juragua, near Cienfuegos, Cuba.
(2) EXCEPTIONS.—The requirement of para-
graph (1) to withhold assistance shall not apply with
respect to—
(A) assistance to meet urgent humani-
tarian needs, including disaster and refugee re-
lief;
(B) democratic political reform and rule of
law activities;
(C) the creation of private sector and non-
governmental organizations that are independ-
ent of government control;
375
(D) the development of a free market eco-
nomic system; and
(E) assistance for the purposes described
in the Cooperative Threat Reduction Act of
1993 (title XII of Public Law 103–160).
(3) DEFINITION.—As used in paragraph (1),
the term ‘‘assistance’’ means assistance under the
Foreign Assistance Act of 1961, credits, sales, and
guarantees of extensions of credit under the Arms
Export Control Act, assistance under titles I and III
of the Agricultural Trade Development and Assist-
ance Act of 1954, assistance under the FREEDOM
Support Act of 1992, and any other program of as-
sistance or credits provided by the United States to
other countries under other provisions of law, except
that the term ‘‘assistance’’ does not include humani-
tarian assistance, including disaster relief assistance.
SEC. 6221. EXPULSION OF CRIMINALS FROM CUBA.
The President shall instruct all United States Gov-
ernment officials who engage in official conduct with the
Cuban Government to raise on a regular basis the extra-
dition of or rendering to the United States all persons re-
siding in Cuba who are sought by the United States De-
partment of Justice for crimes committed in the United
States.
376
PART 2—ASSISTANCE TO A FREE AND
INDEPENDENT CUBA
SEC. 6231. POLICY TOWARD A TRANSITION GOVERNMENT
AND A DEMOCRATICALLY ELECTED GOVERN-
MENT IN CUBA.
The policy of the United States is as follows:
(1) To support the self-determination of the
Cuban people.
(2) To recognize that the self-determination of
the Cuban people is a sovereign and national right
of the citizens of Cuba which must be exercised free
of interference by the government of any other coun-
try.
(3) To encourage the Cuban people to empower
themselves with a government which reflects the self-
determination of the Cuban people.
(4) To recognize the potential for a difficult
transition from the current regime in Cuba that may
result from the initiatives taken by the Cuban people
for self-determination in response to the intran-
sigence of the Castro regime in not allowing any
substantive political or economic reforms, and to be
prepared to provide the Cuban people with humani-
tarian, developmental, and other economic assist-
ance.
377
(5) In solidarity with the Cuban people, to pro-
vide appropriate forms of assistance—
(A) to a transition government in Cuba;
(B) to facilitate the rapid movement from
such a transition government to a democrat-
ically elected government in Cuba that results
from an expression of the self-determination of
the Cuban people; and
(C) to support such a democratically elect-
ed government.
(6) Through such assistance, to facilitate a
peaceful transition to representative democracy and
a market economy in Cuba and to consolidate de-
mocracy in Cuba.
(7) To deliver such assistance to the Cuban
people only through a transition government in
Cuba, through a democratically elected government
in Cuba, through United States Government organi-
zations, or through United States, international, or
indigenous nongovernmental organizations.
(8) To encourage other countries and multilat-
eral organizations to provide similar assistance, and
to work cooperatively with such countries and orga-
nizations to coordinate such assistance.
378
(9) To ensure that appropriate assistance is
rapidly provided and distributed to the people of
Cuba upon the institution of a transition govern-
ment in Cuba.
(10) Not to provide favorable treatment or in-
fluence on behalf of any individual or entity in the
selection by the Cuban people of their future govern-
ment.
(11) To assist a transition government in Cuba
and a democratically elected government in Cuba to
prepare the Cuban military forces for an appropriate
role in a democracy.
(12) To be prepared to enter into negotiations
with a democratically elected government in Cuba ei-
ther to return the United States Naval Base at
Guantanamo to Cuba or to renegotiate the present
agreement under mutually agreeable terms.
(13) To consider the restoration of diplomatic
recognition and support the reintegration of the
Cuban Government into Inter-American organiza-
tions when the President determines that there ex-
ists a democratically elected government in Cuba.
(14) To take steps to remove the economic em-
bargo of Cuba when the President determines that
379
a transition to a democratically elected government
in Cuba has begun.
(15) To assist a democratically elected govern-
ment in Cuba to strengthen and stabilize its national
currency.
(16) To pursue trade relations with a free,
democratic, and independent Cuba.
SEC. 6232. ASSISTANCE FOR THE CUBAN PEOPLE.
(a) AUTHORIZATION.—
(1) IN GENERAL.—The President shall develop
a plan for providing economic assistance to Cuba at
such time as the President determines that a transi-
tion government or a democratically elected govern-
ment in Cuba (as determined under section 6233(c))
is in power.
(2) EFFECT ON OTHER LAWS.—Assistance may
be provided under this section subject to an author-
ization of appropriations and subject to the availabil-
ity of appropriations.
(b) PLAN FOR ASSISTANCE.—
(1) DEVELOPMENT OF PLAN.—The President
shall develop a plan for providing assistance under
this section—
(A) to Cuba when a transition government
in Cuba is in power; and
380
(B) to Cuba when a democratically elected
government in Cuba is in power.
(2) TYPES OF ASSISTANCE.—Assistance under
the plan developed under paragraph (1) may, subject
to an authorization of appropriations and subject to
the availability of appropriations, include the follow-
ing:
(A) TRANSITION
GOVERNMENT.—(i) Ex-
cept as provided in clause (ii), assistance to
Cuba under a transition government shall, sub-
ject to an authorization of appropriations and
subject to the availability of appropriations, be
limited to—
(I) such food, medicine, medical sup-
plies and equipment, and assistance to
meet emergency energy needs, as is nec-
essary to meet the basic human needs of
the Cuban people; and
(II) assistance described in subpara-
graph (C).
(ii) Assistance provided only after the
President certifies to the appropriate congres-
sional committees, in accordance with proce-
dures applicable to reprogramming notifications
under section 634A of the Foreign Assistance
381
Act of 1961, that such assistance is essential to
the successful completion of the transition to
democracy.
(iii) Only after a transition government in
Cuba is in power, remittances by individuals to
their relatives of cash or goods, as well as free-
dom to travel to visit them without any restric-
tions, shall be permitted.
(B) DEMOCRATICALLY ELECTED GOVERN-
MENT.—Assistance to a democratically elected
government in Cuba may, subject to an author-
ization of appropriations and subject to the
availability of appropriations, consist of addi-
tional economic assistance, together with assist-
ance described in subparagraph (C). Such eco-
nomic assistance may include—
(i) assistance under chapter 1 of part
I (relating to development assistance), and
chapter 4 of part II (relating to the eco-
nomic support fund), of the Foreign As-
sistance Act of 1961;
(ii) assistance under the Agricultural
Trade Development and Assistance Act of
1954;
382
(iii) financing, guarantees, and other
forms of assistance provided by the Ex-
port-Import Bank of the United States;
(iv) financial support provided by the
Overseas Private Investment Corporation
for investment projects in Cuba;
(v) assistance provided by the Trade
and Development Agency;
(vi) Peace Corps programs; and
(vii) other appropriate assistance to
carry out the policy of section 6231.
(C) 
MILITARY
ADJUSTMENT
ASSIST-
ANCE.—Assistance to a transition government
in Cuba and to a democratically elected govern-
ment in Cuba shall also include assistance in
preparing the Cuban military forces to adjust
to an appropriate role in a democracy.
(c) STRATEGY FOR DISTRIBUTION.—The plan devel-
oped under subsection (b) shall include a strategy for dis-
tributing assistance under the plan.
(d) DISTRIBUTION.—Assistance under the plan devel-
oped under subsection (b) shall be provided through
United States Government organizations and nongovern-
mental organizations and private and voluntary organiza-
tions, whether within or outside the United States, includ-
383
ing humanitarian, educational, labor, and private sector
organizations.
(e) INTERNATIONAL EFFORTS.—The President shall
take the necessary steps—
(1) to seek to obtain the agreement of other
countries and of international financial institutions
and multilateral organizations to provide to a transi-
tion government in Cuba, and to a democratically
elected government in Cuba, assistance comparable
to that provided by the United States under this
subtitle; and
(2) to work with such countries, institutions,
and organizations to coordinate all such assistance
programs.
(f) COMMUNICATION WITH THE CUBAN PEOPLE.—
The President shall take the necessary steps to commu-
nicate to the Cuban people the plan for assistance devel-
oped under this section.
(g) REPORT TO CONGRESS.—Not later than 180 days
after the date of the enactment of this Act, the President
shall transmit to the appropriate congressional committees
a report describing in detail the plan developed under this
section.
(h) TRADE AND INVESTMENT RELATIONS.—
384
(1) REPORT TO CONGRESS.—The President, fol-
lowing the transmittal to the Congress of a deter-
mination under section 6233(c)(3) that a democrat-
ically elected government in Cuba is in power, shall
submit to the appropriate congressional committees
a report that describes—
(A) acts, policies, and practices that con-
stitute significant barriers to, or distortions of,
United States trade in goods or services or for-
eign direct investment with respect to Cuba;
(B) policy objectives of the United States
regarding trade relations with a democratically
elected government in Cuba, and the reasons
therefor, including possible—
(i) reciprocal extension of nondiscrim-
inatory trade treatment (most-favored-
nation treatment);
(ii) designation of Cuba as a bene-
ficiary developing country under title V of
the Trade Act of 1974 (relating to the
Generalized System of Preferences) or as a
beneficiary country under the Caribbean
Basin Economic Recovery Act, and the im-
plications of such designation with respect
to trade with any other country that is
385
such a beneficiary developing country or
beneficiary country or is a party to the
North American Free Trade Agreement;
and
(iii) negotiations regarding free trade,
including the accession of Cuba to the
North American Free Trade Agreement;
(C) specific trade negotiating objectives of
the United States with respect to Cuba, includ-
ing the objectives described in section 108(b)(5)
of the North American Free Trade Agreement
Implementation Act (19 U.S.C. 3317(b)(5));
and
(D) actions proposed or anticipated to be
undertaken, and any proposed legislation nec-
essary or appropriate, to achieve any of such
policy and negotiating objectives.
(2) CONSULTATIONS.—The President shall con-
sult with the appropriate congressional committees
and shall seek advice from the appropriate advisory
committees established under section 135 of the
Trade Act of 1974 regarding the policy and nego-
tiating objectives and the legislative proposals de-
scribed in paragraph (1).
386
SEC. 6233. COORDINATION OF ASSISTANCE PROGRAM; IM-
PLEMENTATION 
AND 
REPORTS 
TO 
CON-
GRESS; REPROGRAMMING.
(a) COORDINATING OFFICIAL.—The President shall
designate a coordinating official who shall be responsible
for—
(1) implementing the strategy for distributing
assistance described in section 6232(b);
(2) ensuring the speedy and efficient distribu-
tion of such assistance; and
(3) ensuring coordination among, and appro-
priate oversight by, the agencies of the United
States that provide assistance described in section
6232(b), including resolving any disputes among
such agencies.
(b) UNITED STATES-CUBA COUNCIL.—Upon making
a determination under subsection (c)(3) that a democrat-
ically elected government in Cuba is in power, the Presi-
dent, after consultation with the coordinating official, is
authorized to designate a United States-Cuba council—
(1) to ensure coordination between the United
States Government and the private sector in re-
sponding to change in Cuba, and in promoting mar-
ket-based development in Cuba; and
387
(2) to establish periodic meetings between rep-
resentatives of the United States and Cuban private
sectors for the purpose of facilitating bilateral trade.
(c) IMPLEMENTATION OF PLAN; REPORTS TO CON-
GRESS.—
(1) IMPLEMENTATION WITH RESPECT TO TRAN-
SITION GOVERNMENT.—Upon making a determina-
tion that a transition government in Cuba is in
power, the President shall transmit that determina-
tion to the appropriate congressional committees and
shall, subject to an authorization of appropriations
and subject to the availability of appropriations,
commence the delivery and distribution of assistance
to such transition government under the plan devel-
oped under section 6232(b).
(2) REPORTS TO CONGRESS.—(A) The Presi-
dent shall transmit to the appropriate congressional
committees a report setting forth the strategy for
providing assistance described in section 6232(b)(2)
(A) and (C) to the transition government in Cuba
under the plan of assistance developed under section
6232(b), the types of such assistance, and the extent
to which such assistance has been distributed in ac-
cordance with the plan.
388
(B) The President shall transmit the report not
later than 90 days after making the determination
referred to in paragraph (1), except that the Presi-
dent shall transmit the report in preliminary form
not later than 15 days after making that determina-
tion.
(3) 
IMPLEMENTATION
WITH
RESPECT
TO
DEMOCRATICALLY
ELECTED
GOVERNMENT.—The
President shall, upon determining that a democrat-
ically elected government in Cuba is in power, sub-
mit that determination to the appropriate congres-
sional committees and shall, subject to an authoriza-
tion of appropriations and subject to the availability
of appropriations, commence the delivery and dis-
tribution of assistance to such democratically elected
government under the plan developed under section
6232(b).
(4) ANNUAL
REPORTS
TO
CONGRESS.—Not
later than 60 days after the end of each fiscal year,
the President shall transmit to the appropriate con-
gressional committees a report on the assistance
provided under the plan developed under section
6232(b), including a description of each type of as-
sistance, the amounts expended for such assistance,
389
and a description of the assistance to be provided
under the plan in the current fiscal year.
(d) REPROGRAMMING.—Any changes in the assist-
ance to be provided under the plan developed under sec-
tion 6232(b) may not be made unless the President noti-
fies the appropriate congressional committees at least 15
days in advance in accordance with the procedures appli-
cable to reprogramming notifications under section 634A
of the Foreign Assistance Act of 1961 (22 U.S.C. 2394–
1).
SEC. 6234. TERMINATION OF THE ECONOMIC EMBARGO OF
CUBA.
(a) PRESIDENTIAL ACTIONS.—Upon submitting a de-
termination to the appropriate congressional committees
under section 6233(c)(1) that a transition government in
Cuba is in power, the President, after consulting with the
Congress, is authorized to take steps to suspend the eco-
nomic embargo of Cuba to the extent that such action con-
tributes to a stable foundation for a democratically elected
government in Cuba.
(b) SUSPENSION
OF
CERTAIN
PROVISIONS
OF
LAW.—In carrying out subsection (a), the President may
suspend the enforcement of—
(1) section 620(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2370(a));
390
(2) section 620(f) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2370(f)) with regard to the ‘‘Re-
public of Cuba’’;
(3) sections 1704, 1705(d), and 1706 of the
Cuban Democracy Act (22 U.S.C. 6003, 6004(d),
6005);
(4) section 902(c) of the Food Security Act of
1985; and
(5) the prohibitions on transactions described in
part 515 of title 31, Code of Federal Regulations.
(c) ADDITIONAL PRESIDENTIAL ACTIONS.—Upon
submitting a determination to the appropriate congres-
sional committees under section 6233(c)(3) that a demo-
cratically elected government in Cuba is in power, the
President shall take steps to terminate the economic em-
bargo of Cuba.
(d) CONFORMING AMENDMENTS.—On the date on
which the President submits a determination under sec-
tion 6233(c)(3)—
(1) section 620(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2370(a)) is repealed;
(2) section 620(f) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2370(f)) is amended by striking
‘‘Republic of Cuba’’;
391
(3) sections 1704, 1705(d), and 1706 of the
Cuban Democracy Act of 1992 (22 U.S.C. 6003,
6004(d), and 6005) are repealed; and
(4) section 902(c) of the Food Security Act of
1985 is repealed.
(e) REVIEW OF SUSPENSION OF ECONOMIC EMBAR-
GO.—
(1) REVIEW.—If the President takes action
under subsection (a) to suspend the economic em-
bargo of Cuba, the President shall immediately so
notify the Congress. The President shall report to
the Congress no less frequently than every 6 months
thereafter, until he submits a determination under
section 6233(c)(3) that a democratically elected gov-
ernment in Cuba is in power, on the progress being
made by Cuba toward the establishment of such a
democratically elected government. The action of the
President under subsection (a) shall cease to be ef-
fective upon the enactment of a joint resolution de-
scribed in paragraph (2).
(2) JOINT RESOLUTIONS.—For purposes of this
subsection, the term ‘‘joint resolution’’ means only a
joint resolution of the 2 Houses of Congress, the
matter after the resolving clause of which is as fol-
lows: ‘‘That the Congress disapproves the action of
392
the President under section 6234(a) of the Cuban
Liberty and Democratic Solidarity (LIBERTAD)
Act of 1995 to suspend the economic embargo of
Cuba, notice of which was submitted to the Congress
on ll.’’, with the blank space being filled with the
appropriate date.
(3) REFERRAL TO COMMITTEES.—Joint resolu-
tions introduced in the House of Representatives
shall be referred to the Committee on International
Relations and joint resolutions introduced in the
Senate shall be referred to the Committee on For-
eign Relations.
(4) PROCEDURES.—(A) Any joint resolution
shall be considered in the Senate in accordance with
the provisions of section 601(b) of the International
Security Assistance and Arms Export Control Act
of 1976.
(B) For the purpose of expediting the consider-
ation and enactment of joint resolutions, a motion to
proceed to the consideration of any joint resolution
after it has been reported by the appropriate com-
mittee shall be treated as highly privileged in the
House of Representatives.
(C) Not more than 1 joint resolution may be
considered in the House of Representatives and the
393
Senate in the 6-month period beginning on the date
on which the President notifies the Congress under
paragraph (1) of the action taken under subsection
(a), and in each 6-month period thereafter.
SEC. 6235. REQUIREMENTS FOR A TRANSITION GOVERN-
MENT.
For purposes of this subtitle, a transition government
in Cuba is a government in Cuba which—
(1) is demonstrably in transition from com-
munist totalitarian dictatorship to representative de-
mocracy;
(2) has recognized the right to independent po-
litical activity and association;
(3) has released all political prisoners and al-
lowed for investigations of Cuban prisons by appro-
priate international human rights organizations;
(4) has ceased any interference with Radio or
Television Marti broadcasts;
(5) makes public commitments to and is mak-
ing demonstrable progress in—
(A) establishing an independent judiciary;
(B) dissolving the present Department of
State Security in the Cuban Ministry of the In-
terior, including the Committees for the De-
394
fense of the Revolution and the Rapid Response
Brigades;
(C) respecting internationally recognized
human rights and basic freedoms as set forth in
the Universal Declaration of Human Rights, to
which Cuba is a signatory nation;
(D) effectively guaranteeing the rights of
free speech and freedom of the press;
(E) organizing free and fair elections for a
new government—
(i) to be held in a timely manner with-
in a period not to exceed 1 year after the
transition government assumes power;
(ii) with the participation of multiple
independent political parties that have full
access to the media on an equal basis, in-
cluding (in the case of radio, television, or
other telecommunications media) in terms
of allotments of time for such access and
the times of day such allotments are given;
and
(iii) to be conducted under the super-
vision of internationally recognized observ-
ers, such as the Organization of American
395
States, the United Nations, and other elec-
tions monitors;
(F) assuring the right to private property;
(G) taking appropriate steps to return to
United States citizens (and entities which are
50 percent or more beneficially owned by Unit-
ed States citizens) property taken by the Cuban
Government from such citizens and entities on
or after January 1, 1959, or to provide equi-
table compensation to such citizens and entities
for such property;
(H) granting permits to privately owned
telecommunications and media companies to op-
erate in Cuba; and
(I) allowing the establishment of independ-
ent trade unions as set forth in conventions 87
and 98 of the International Labor Organiza-
tion, and allowing the establishment of inde-
pendent social, economic, and political associa-
tions;
(6) does not include Fidel Castro or Raul Cas-
tro;
(7) has given adequate assurances that it will
allow the speedy and efficient distribution of assist-
ance to the Cuban people;
396
(8) permits the deployment throughout Cuba of
independent and unfettered international human
rights monitors; and
(9) has extradited or otherwise rendered to the
United States all persons sought by the United
States Department of Justice for crimes committed
in the United States.
SEC. 
6236. 
REQUIREMENTS 
FOR 
A 
DEMOCRATICALLY
ELECTED GOVERNMENT.
For purposes of this subtitle, a democratically elected
government in Cuba, in addition to continuing to comply
with the requirements of section 6235, is a government
in Cuba which—
(1) results from free and fair elections con-
ducted under the supervision of internationally rec-
ognized observers;
(2) has permitted opposition parties ample time
to organize and campaign for such elections, and has
permitted full access to the media to all candidates
in the elections;
(3) is showing respect for the basic civil lib-
erties and human rights of the citizens of Cuba;
(4) has made demonstrable progress in estab-
lishing an independent judiciary;
397
(5) is substantially moving toward a market-ori-
ented economic system;
(6) is committed to making constitutional
changes that would ensure regular free and fair elec-
tions that meet the requirements of paragraph (2);
and
(7) has made demonstrable progress in return-
ing to United States citizens (and entities which are
50 percent or more beneficially owned by United
States citizens) property taken by the Cuban Gov-
ernment from such citizens and entities on or after
January 1, 1959, or providing full compensation for
such property in accordance with international law
standards and practice.
PART 3—PROTECTION OF PROPERTY RIGHTS OF
UNITED STATES NATIONALS AGAINST CON-
FISCATORY TAKINGS BY THE CASTRO RE-
GIME
SEC. 6251. STATEMENT OF POLICY.
The Congress makes the following findings:
(1) The right of individuals to hold and enjoy
property is a fundamental right recognized by the
United States Constitution and international human
rights law, including the Universal Declaration of
Human Rights.
398
(2) The illegal confiscation or taking of prop-
erty by governments, and the acquiescence of gov-
ernments in the confiscation of property by their
citizens, undermines the comity among nations, the
free flow of commerce, and economic development.
(3) It is in the interest of all nations to respect
equally the property rights of their citizens and na-
tionals of other countries.
(4) Nations that provide an effective mecha-
nism for prompt, adequate, and fair compensation
for the confiscation of private property will continue
to have the support of the United States.
(5) The United States Government has an obli-
gation to its citizens to provide protection against il-
legal confiscation by foreign nations and their citi-
zens, including the provision of private remedies.
(6) Nations that illegally confiscate private
property should not be immune to another nation’s
laws whose purpose is to protect against the
confiscation of lawfully acquired property by its citi-
zens.
(7) Trafficking in illegally acquired property is
a crime under the laws of the United States and
other nations, yet this same activity is allowed under
international law.
399
(8) International law, by not providing effective
remedies, condones the illegal confiscation of prop-
erty and allows for the unjust enrichment from the
use of confiscated property by governments and pri-
vate entities at the expense of those who hold legal
claim to the property.
(9) The development of an international mecha-
nism sanctioning those governments and private en-
tities that confiscate and unjustly use private prop-
erty so confiscated should be a priority objective of
United States foreign policy.
SEC. 6252. LIABILITY FOR TRAFFICKING IN PROPERTY
CONFISCATED FROM UNITED STATES NA-
TIONALS.
(a) CIVIL REMEDY.—
(1) LIABILITY FOR TRAFFICKING.—(A) Except
as provided in paragraphs (3) and (4), any person,
including any agency or instrumentality of a foreign
state in the conduct of a commercial activity, that,
after the end of the 6-month period beginning on the
date of the enactment of this Act, traffics in con-
fiscated property shall be liable to any United States
national who owns the claim to such property for
money damages in an amount equal to the sum of—
(i) the amount which is the greater of—
400
(I) the amount, if any, certified to the
claimant by the Foreign Claims Settlement
Commission 
under 
the 
International
Claims Settlement Act of 1949, plus inter-
est;
(II) the amount determined under sec-
tion 6253(a)(2), plus interest; or
(III) the fair market value of that
property, calculated as being the then cur-
rent value of the property, or the value of
the property when confiscated plus inter-
est, whichever is greater; and
(ii) reasonable costs and attorneys’ fees.
(B) Interest under subparagraph (A)(i) shall be
at the rate set forth in section 1961 of title 28,
United States Code, computed by the court from the
date of the confiscation of the property involved to
the date on which the action is brought under this
subsection.
(2) PRESUMPTION
IN
FAVOR
OF
CERTIFIED
CLAIMS.—There shall be a presumption that the
amount for which a person, including any agency or
instrumentality of a foreign state in the conduct of
a commercial activity, is liable under clause (i) of
paragraph (1)(A) is the amount that is certified
401
under subclause (I) of that clause. The presumption
shall be rebuttable by clear and convincing evidence
that the amount described in subclause (II) or (III)
of that clause is the appropriate amount of liability
under that clause.
(3) INCREASED
LIABILITY
FOR
PRIOR
NO-
TICE.—Except as provided in paragraph (4), any
person, including any agency or instrumentality of a
foreign state in the conduct of a commercial activity,
that traffics in confiscated property after having re-
ceived—
(A) notice of a claim to ownership of the
property by a United States national who owns
a claim to the confiscated property, and
(B) notice of the provisions of this section,
shall be liable to that United States national for
money damages in an amount which is the sum of
the amount equal to the amount determined under
paragraph (1)(A)(ii) plus triple the amount deter-
mined applicable under subclause (I), (II), or (III)
of paragraph (1)(A)(i).
(4) APPLICABILITY.—(A) Except as otherwise
provided in this paragraph, actions may be brought
under paragraph (1) with respect to property con-
402
fiscated before, on, or after the date of the enact-
ment of this Act.
(B) In the case of property confiscated before
the date of the enactment of this Act, no United
States national may bring an action under this sec-
tion unless such national acquired ownership of the
claim to the confiscated property before such date.
(C) In the case of property confiscated on or
after the date of the enactment of this Act, no Unit-
ed States national who acquired ownership of a
claim to confiscated property by assignment for
value after such date of enactment may bring an ac-
tion on the claim under this section.
(5) TREATMENT OF CERTAIN ACTIONS.—(A) In
the case of any action brought under this section by
a United States national who was eligible to file the
underlying claim in the action with the Foreign
Claims Settlement Commission under title V of the
International Claims Settlement Act of 1949 but did
not so file the claim, the court may hear the case
only if the court determines that the United States
national had good cause for not filing the claim.
(B) In the case of any action brought under
this section by a United States national whose claim
in the action was timely filed with the Foreign
403
Claims Settlement Commission under title V of the
International Claims Settlement Act of 1949 but
was denied by the Commission, the court may assess
the basis for the denial and may accept the findings
of the Commission on the claim as conclusive in the
action under this section unless good cause justifies
another result.
(6) INAPPLICABILITY OF ACT OF STATE DOC-
TRINE.—No court of the United States shall decline,
based upon the act of state doctrine, to make a de-
termination on the merits in an action brought
under paragraph (1).
(b) DEFINITION.—As used in this subsection, the
term ‘‘agency or instrumentality of a foreign state’’ has
the meaning given that term in section 1603(b) of title
28, United States Code.
(c) JURISDICTION.—
(1) IN GENERAL.—Chapter 85 of title 28, Unit-
ed States Code, is amended by inserting after sec-
tion 1331 the following new section:
‘‘§ 1331a. Civil actions involving confiscated property
‘‘The district courts shall have exclusive jurisdiction
of any action brought under section 6252 of the Cuban
Liberty and Democratic Solidarity (LIBERTAD) Act of
1995, regardless of the amount in controversy.’’.
404
(2) CONFORMING AMENDMENT.—The table of
sections for chapter 85 of title 28, United States
Code, is amended by inserting after the item relating
to section 1331 the following:
‘‘1331a. Civil actions involving confiscated property.’’.
(d) CERTAIN PROPERTY IMMUNE FROM EXECU-
TION.—Section 1611 of title 28, United States Code, is
amended by adding at the end the following:
‘‘(c) Notwithstanding the provisions of section 1610
of this chapter, the property of a foreign state shall be
immune from attachment and from execution in an action
brought under section 6252 of the Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1995 to the
extent the property is a facility or installation used by an
accredited diplomatic mission for official purposes.’’.
(e) ELECTION OF REMEDIES.—
(1) ELECTION.—Subject to paragraph (2)—
(A) any United States national that brings
an action under this section may not bring any
other civil action or proceeding under the com-
mon law, Federal law, or the law of any of the
several States, the District of Columbia, or any
territory or possession of the United States,
that seeks monetary or nonmonetary compensa-
tion by reason of the same subject matter; and
405
(B) any person who brings, under the com-
mon law or any provision of law other than this
section, a civil action or proceeding for mone-
tary or nonmonetary compensation arising out
of a claim for which an action would otherwise
be cognizable under this section may not bring
an action under this section on that claim.
(2) TREATMENT OF CERTIFIED CLAIMANTS.—
In the case of any United States national that
brings an action under this section based on a claim
certified under title V of the International Claims
Settlement Act of 1949—
(A) if the recovery in the action is equal to
or greater than the amount of the certified
claim, the United States national may not re-
ceive payment on the claim under any agree-
ment entered into between the United States
and Cuba settling claims covered by such title,
and such national shall be deemed to have dis-
charged the United States from any further re-
sponsibility to represent the United States na-
tional with respect to that claim;
(B) if the recovery in the action is less
than the amount of the certified claim, the
United States national may receive payment
406
under a claims agreement described in subpara-
graph (A) but only to the extent of the dif-
ference between the amount of the recovery and
the amount of the certified claim; and
(C) if there is no recovery in the action,
the United States national may receive payment
on the certified claim under a claims agreement
described in subparagraph (A) to the same ex-
tent as any certified claimant who does not
bring an action under this section.
(f) DEPOSIT OF EXCESS PAYMENTS BY CUBA UNDER
CLAIMS AGREEMENT.—Any amounts paid by Cuba under
any agreement entered into between the United States and
Cuba settling certified claims under title V of the Inter-
national Claims Settlement Act of 1949 that are in excess
of the payments made on such certified claims after the
application of subsection (e) shall be deposited into the
United States Treasury.
(g) TERMINATION OF RIGHTS.—
(1) IN GENERAL.—All rights created under this
section to bring an action for money damages with
respect to property confiscated before the date of the
enactment of this Act shall cease upon the transmit-
tal to the Congress of a determination of the Presi-
dent under section 6233(c)(3).
407
(2) PENDING SUITS.—The termination of rights
under paragraph (1) shall not affect suits com-
menced before the date of such termination, and in
all such suits, proceedings shall be had, appeals
taken, and judgments rendered in the same manner
and with the same effect as if this subsection had
not been enacted.
SEC. 6253. DETERMINATION OF CLAIMS TO CONFISCATED
PROPERTY.
(a) EVIDENCE OF OWNERSHIP.—
(1) CONCLUSIVENESS OF CERTIFIED CLAIMS.—
In any action brought under this part, the courts
shall accept as conclusive proof of ownership a cer-
tification of a claim to ownership that has been
made by the Foreign Claims Settlement Commission
pursuant to title V of the International Claims Set-
tlement Act of 1949 (22 U.S.C. 1643 and following).
(2) CLAIMS NOT CERTIFIED.—In the case of a
claim that has not been certified by the Foreign
Claims Settlement Commission before the enactment
of this Act, a court may appoint a special master,
including the Foreign Claims Settlement Commis-
sion, to make determinations regarding the amount
and validity of claims to ownership of confiscated
property. Such determinations are only for evi-
408
dentiary purposes in civil actions brought under this
part and do not constitute certifications pursuant to
title V of the International Claims Settlement Act of
1949.
(3) EFFECT OF DETERMINATIONS OF FOREIGN
ENTITIES.—In determining ownership, courts shall
not accept as conclusive evidence of ownership any
findings, orders, judgments, or decrees from admin-
istrative agencies or courts of foreign countries or
international organizations that invalidate the claim
held by a United States national, unless the invali-
dation was found pursuant to binding international
arbitration to which United States national submit-
ted the claim.
(b) AMENDMENT OF THE INTERNATIONAL CLAIMS
SETTLEMENT ACT OF 1949.—Title V of the International
Claims Settlement Act of 1949 (22 U.S.C. 1643 and fol-
lowing) is amended by adding at the end the following new
section:
‘‘EVALUATION OF OWNERSHIP CLAIMS REFERRED BY
DISTRICT COURTS OF THE UNITED STATES
‘‘SEC. 514. Notwithstanding any other provision of
this title and only for purposes of section 6252 the Cuban
Liberty and Solidarity (LIBERTAD) Act, a United States
district court, for fact-finding purposes, may refer to the
Commission, and the Commission may determine, ques-
409
tions of the amount and ownership of a claim by a United
States national (as defined in section 6204 of the Cuban
Liberty and Solidarity (LIBERTAD) Act) resulting from
the confiscation of property by the Government of Cuba
described in section 503(a), whether or not the United
States national qualified as a national of the United States
(as defined in section 502(1)) at the time of the action
by the Government of Cuba.’’.
(c) RULE OF CONSTRUCTION.—Nothing in this sub-
title or section 514 of the International Claims Settlement
Act of 1949, as added by subsection (b), shall be con-
strued—
(1) to require or otherwise authorize the claims
of Cuban nationals who became United States citi-
zens after their property was confiscated to be in-
cluded in the claims certified to the Secretary of
State by the Foreign Claims Settlement Commission
for purposes of future negotiation and espousal of
claims with a friendly government in Cuba when dip-
lomatic relations are restored; or
(2) as superseding, amending, or otherwise al-
tering certifications that have been made pursuant
to title V of the International Claims Settlement Act
of 1949 before the enactment of this Act.
410
SEC. 6254. EXCLUSIVITY OF FOREIGN CLAIMS SETTLEMENT
COMMISSION CERTIFICATION PROCEDURE.
Title V of the International Claims Settlement Act
of 1949 (22 U.S.C. 1643 and following), as amended by
section 6253, is further amended by adding at the end
the following new section:
‘‘EXCLUSIVITY OF FOREIGN CLAIMS SETTLEMENT
COMMISSION CERTIFICATION PROCEDURE
‘‘SEC. 515. (a) Subject to subsection (b), neither any
national of the United States who was eligible to file a
claim under section 503 but did not timely file such claim
under that section, nor any national of the United States
(on the date of the enactment of this section) who was
not eligible to file a claim under that section, nor any na-
tional of Cuba, including any agency, instrumentality, sub-
division, or enterprise of the Government of Cuba or any
local government of Cuba in place on the date of the enact-
ment of this section, nor any successor thereto, whether
or not recognized by the United States, shall have a claim
to, participate in, or otherwise have an interest in, the
compensation proceeds or other nonmonetary compensa-
tion paid or allocated to a national of the United States
by virtue of a claim certified by the Commission under
section 507, nor shall any court of the United States or
any State court have jurisdiction to adjudicate any such
claim.
411
‘‘(b) Nothing in subsection (a) shall be construed to
detract from or otherwise affect any rights in the shares
of the capital stock of nationals of the United States own-
ing claims certified by the Commission under section
507.’’.
PART 4—EXCLUSION OF CERTAIN ALIENS
SEC. 6271. EXCLUSION FROM THE UNITED STATES OF
ALIENS WHO HAVE CONFISCATED PROPERTY
OF UNITED STATES NATIONALS OR WHO
TRAFFIC IN SUCH PROPERTY.
(a) GROUNDS FOR EXCLUSION.—The Secretary of
State, in consultation with the Attorney General, shall ex-
clude from the United States any alien who the Secretary
of State determines is a person who—
(1) has confiscated, or has directed or overseen
the confiscation of, property a claim to which is
owned by a United States national, or converts or
has converted for personal gain confiscated property,
a claim to which is owned by a United States na-
tional;
(2) traffics in confiscated property, a claim to
which is owned by a United States national;
(3) is a corporate officer, principal, or share-
holder with a controlling interest of an entity which
has been involved in the confiscation of property or
412
trafficking in confiscated property, a claim to which
is owned by a United States national; or
(4) is a spouse, minor child, or agent of a per-
son excludable under paragraph (1), (2), or (3).
(b) DEFINITIONS.—As used in this section, the fol-
lowing terms have the following meanings:
(1) CONFISCATED; CONFISCATION.—The terms
‘‘confiscated’’ and ‘‘confiscation’’ refer to—
(A) the nationalization, expropriation, or
other seizure by foreign governmental authority
of ownership or control of property on or after
January 1, 1959—
(i) without the property having been
returned or adequate and effective com-
pensation provided; or
(ii) without the claim to the property
having been settled pursuant to an inter-
national claims settlement agreement or
other mutually accepted settlement proce-
dure; and
(B) the repudiation by foreign govern-
mental authority of, the default by foreign gov-
ernmental authority on, or the failure by for-
eign governmental authority to pay, on or after
January 1, 1959—
413
(i) a debt of any enterprise which has
been nationalized, expropriated, or other-
wise taken by foreign governmental author-
ity;
(ii) a debt which is a charge on prop-
erty nationalized, expropriated, or other-
wise taken by foreign governmental author-
ity; or
(iii) a debt which was incurred by for-
eign governmental authority in satisfaction
or settlement of a confiscated property
claim.
(2) PROPERTY.—The term ‘‘property’’ does not
include claims arising from a territory in dispute as
a result of war between United Nations member
states in which the ultimate resolution of the dis-
puted territory has not been resolved.
(3) TRAFFICS.—(A) A person or entity ‘‘traf-
fics’’ in property if that person or entity knowingly
and intentionally—
(i) sells, transfers, distributes, dispenses,
brokers, manages, or otherwise disposes of con-
fiscated property, or purchases, leases, receives,
possesses, obtains control of, manages, uses, or
414
otherwise acquires or holds an interest in con-
fiscated property,
(ii) engages in a commercial activity using
or otherwise benefiting from confiscated prop-
erty, or
(iii) causes, directs, participates in, or
profits from, trafficking (as described in clauses
(i) and (ii)) by another person, or otherwise en-
gages in trafficking (as described in clauses (i)
and (ii)) through another person,
without the authorization of the United States na-
tional who holds a claim to the property.
(B) The term ‘‘traffics’’ does not include—
(i) the delivery of international tele-
communication signals to Cuba that are author-
ized by section 1705(e) of the Cuban Democ-
racy Act of 1992 (22 U.S.C. 6004(e)); or
(ii) the trading or holding of securities
publicly traded or held, unless the trading is
with or by a person determined by the Sec-
retary of the Treasury to be a specially des-
ignated national.
(c) NATIONAL INTEREST EXEMPTION.—This section
shall not apply where the Secretary of State finds, on a
case-by-case basis, that making a determination under
415
subsection (a) would be contrary to the national interest
of the United States.
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—This section applies to aliens
seeking to enter the United States on or after the
date of the enactment of this Act.
(2) TRAFFICKING.—This section applies only
with respect to acts within the meaning of ‘‘traffics’’
that occur on or after the date of the enactment of
this Act.
TITLE VII—COMMITTEE ON THE
JUDICIARY
SEC. 7001. PATENT AND TRADEMARK FEES.
Section 10101 of the Omnibus Budget Reconciliation
Act of 1990 (35 U.S.C. 41 note) is amended—
(1) in subsection (a) by striking ‘‘1998’’ and in-
serting ‘‘2002’’;
(2) in subsection (b)(2) by striking ‘‘1998’’ and
inserting ‘‘2002’’; and
(3) in subsection (c)—
(A) by striking ‘‘through 1998’’ and insert-
ing ‘‘through 2002’’; and
(B) by adding at the end the following:
‘‘(9) $119,000,000 in fiscal year 1999.
‘‘(10) $119,000,000 in fiscal year 2000.
416
‘‘(11) $119,000,000 in fiscal year 2001.
‘‘(12) $119,000,000 in fiscal year 2002.’’.
SEC. 7002. CIVIL MONETARY PENALTY SURCHARGE AND
TELECOMMUNICATIONS 
CARRIER 
COMPLI-
ANCE PAYMENTS.
Public Law 103-414 is amended by adding at the end
the following:
‘‘TITLE IV—CIVIL MONETARY PENALTY
SURCHARGE 
AND 
TELECOMMUNI-
CATIONS CARRIER COMPLIANCE PAY-
MENTS
‘‘SEC. 401. CIVIL MONETARY PENALTY SURCHARGE.
‘‘(a) IMPOSITION.—Notwithstanding any other provi-
sion of law, and subject to section 402(c) of this title, a
surcharge of 40 percent of the principal amount of a civil
monetary penalty shall be added to each civil monetary
penalty at the time it is assessed by the United States
or an agency thereof.
‘‘(b) APPLICATION OF PAYMENTS.—Payments relat-
ing to a civil monetary penalty shall be applied in the fol-
lowing order: (1) to costs; (2) to principal; (3) to sur-
charges required by subsection (a) of this section; and (4)
to interest.
‘‘(c) EFFECTIVE DATES.—(1) A surcharge under
subsection (a) of this section shall be added to all civil
417
monetary penalties assessed on or after October 1, 1995,
or the date of enactment of this title, whichever is later.
‘‘(2) The authority to add a surcharge under this sec-
tion shall terminate on October 1, 1998.
‘‘(d) LIMITATION.—The provisions of this section
shall not apply to any civil monetary penalty assessed
under title 26, United States Code.
‘‘SEC. 402. DEPARTMENT OF JUSTICE TELECOMMUNI-
CATIONS CARRIER COMPLIANCE FUND.
‘‘(a) ESTABLISHMENT OF FUND.—There is hereby
established in the United States Treasury a fund to be
known as the Department of Justice Telecommunications
Carrier Compliance Fund (hereinafter referred to as ‘the
Fund’), which shall be available to the Attorney General
to the extent and in the amounts authorized by subsection
(c) of this section to make payments to telecommuni-
cations carriers, as authorized by section 109 of the Com-
munications Assistance for Law Enforcement Act.
‘‘(b) OFFSETTING COLLECTIONS.—Notwithstanding
section 3302 of title 31, United States Code, the Attorney
General may credit surcharges added pursuant to section
401 of this title to the Fund as offsetting collections.
‘‘(c) REQUIREMENTS
FOR APPROPRIATIONS OFF-
SET.—(1) Surcharges added pursuant to section 401 of
418
this title are authorized only to the extent and in the
amounts provided for in advance in appropriations acts.
‘‘(2)(A)(i) Subject to the requirements of this sub-
paragraph, collections credited to the Fund are authorized
to be appropriated in amounts of $56,000,000 for fiscal
year 1996, and $112,000,000 for each of fiscal years 1997
and 1998.
‘‘(ii) Notwithstanding clause (i), the maximum
amount authorized to be appropriated for any such fiscal
year shall equal the amount that the Office of Manage-
ment and Budget estimates will be credited to the Fund
during that year.
‘‘(B) Amounts described in subparagraph (A) of this
paragraph are authorized to be appropriated without fiscal
year limitation.
‘‘(d) TERMINATION.—(1) The Attorney General may
terminate the Fund at such time as the Attorney General
determines that the Fund is no longer necessary.
‘‘(2) Any balance in the Fund at the time of its termi-
nation shall be deposited in the general fund of the Treas-
ury.
‘‘(3) A decision of the Attorney General to terminate
the Fund shall not be subject to judicial review.
419
‘‘SEC. 403. DEFINITIONS.
‘‘For purposes of this title, the terms ‘agency’ and
‘civil monetary penalty’ have the meanings given to them
by section 3 of the Federal Civil Penalties Inflation Ad-
justment Act of 1990, Public Law 101–410, October 5,
1990, 104 Stat. 890 (28 U.S.C. 2461 note).’’.
TITLE VIII—COMMITTEE ON
NATIONAL SECURITY
Subtitle A—Military Retired Pay
SEC. 8001. ELIMINATION OF DISPARITY BETWEEN EFFEC-
TIVE DATES FOR MILITARY AND CIVILIAN RE-
TIREE COST-OF-LIVING ADJUSTMENTS FOR
FISCAL YEARS 1996, 1997, AND 1998.
(a) CONFORMANCE WITH SCHEDULE
FOR CIVIL
SERVICE
COLAS.—Subparagraph 
(B) 
of 
section
1401a(b)(2) of title 10, United States Code, is amended—
(1) by striking out ‘‘THROUGH 1998’’ the first
place it appears and all that follows through ‘‘In the
case of’’ the second place it appears and inserting in
lieu thereof ‘‘THROUGH 1996.—In the case of’’;
(2) by striking ‘‘of 1994, 1995, 1996, or 1997’’
and inserting in lieu thereof ‘‘of 1993, 1994, or
1995’’; and
(3) by striking out ‘‘September’’ and inserting
in lieu thereof ‘‘March’’.
420
(b) REPEAL OF PRIOR CONDITIONAL ENACTMENT.—
Section 8114A(b) of Public Law 103–335 (108 Stat.
2648) is repealed.
Subtitle B—Naval Petroleum
Reserves
SEC. 8011. SALE OF NAVAL PETROLEUM RESERVES.
(a) SALE OF RESERVES REQUIRED.—Chapter 641 of
title 10, United States Code, is amended by inserting after
section 7421 the following new section:
‘‘§ 7421a. Sale of naval petroleum reserves
‘‘(a) SALE REQUIRED.—(1) Notwithstanding any
other provision of this chapter, the Secretary shall sell all
right, title, and interest of the United States in and to
the lands owned or controlled by the United States inside
the naval petroleum and oil shale reserves established by
this chapter. In the case of Naval Petroleum Reserve
Numbered 1, the lands to be sold shall include sections
16 and 36 of township 30 south, range 23 east, Mount
Diablo Principal Meridian, California.
‘‘(2) Not later than September 30, 1996, the Sec-
retary shall enter into one or more contracts for the sale
of all of the interest of the United States in the naval
petroleum reserves.
‘‘(b) TIMING AND ADMINISTRATION OF SALE.—(1)
Not later than January 1, 1996, the Secretary shall retain
421
the services of five independent experts in the valuation
of oil and gas fields to conduct separate assessments, in
a manner consistent with commercial practices, of the fair
market value of the interest of the United States in each
naval petroleum reserve. In making their assessments for
each naval petroleum reserve, the independent experts
shall consider (among other factors) all equipment and fa-
cilities to be included in the sale, the net present value
of the reserve, and the net present value of the anticipated
revenue stream that the Secretary determines the Treas-
ury would receive from the reserve if it were not sold, ad-
justed for any anticipated increases in tax revenues that
would result if it were sold. The independent experts shall
complete their assessments not later than June 1, 1996.
In setting the minimum acceptable price for each naval
petroleum reserve, the Secretary shall consider the average
of the five assessments regarding the reserve or, if more
advantageous to the Government, the average of three as-
sessments after excluding the high and low assessments.
‘‘(2) Not later than March 1, 1996, the Secretary
shall retain the services of an investment banker to inde-
pendently administer, in a manner consistent with com-
mercial practices and in a manner that maximizes sale
proceeds to the Government, the sale of the naval petro-
leum reserves under this section. The Secretary may enter
422
into the contracts required under this paragraph and
paragraph (1) on a noncompetitive basis.
‘‘(3) Not later than June 1, 1996, the sales adminis-
trator selected under paragraph (2) shall complete a draft
contract for the sale of each naval petroleum reserve,
which shall accompany the invitation for bids and describe
the terms and provisions of the sale of the interest of the
United States in the reserve. Each draft contract shall
identify all equipment and facilities to be included in the
sales. Each draft contract, including the terms and provi-
sions of the sale of the interest of the United States in
the naval petroleum reserves, shall be subject to review
and approval by the Secretary, the Secretary of the Treas-
ury, and the Director of the Office of Management and
Budget.
‘‘(4) Not later than July 1, 1996, the Secretary shall
publish an invitation for bids for the purchase of the naval
petroleum reserves.
‘‘(5) Not later than September 1, 1996, the Secretary
shall accept the highest responsible offer for purchase of
the interest of the United States in the naval petroleum
reserves, or a particular reserve, that meets or exceeds the
minimum acceptable price determined under paragraph
(1). The Secretary may accept an offer for only a portion
of a reserve so long as the entire reserve is still sold under
423
this section at a price that meets or exceeds the minimum
acceptable price.
‘‘(c) FUTURE LIABILITIES.—To effectuate the sale of
the interest of the United States in a naval petroleum re-
serve, the Secretary may extend such indemnities and war-
ranties as the Secretary considers reasonable and nec-
essary to protect the purchaser from claims arising from
the ownership in the reserve by the United States.
‘‘(d) SPECIAL RULES PREPARATORY TO SALE OF
NAVAL PETROLEUM RESERVE NUMBERED 1.—(1) Not
later than June 1, 1996, the Secretary shall finalize equity
interests of the known oil and gas zones in Naval Petro-
leum Reserve Numbered 1 in the manner provided by this
subsection.
‘‘(2) The Secretary shall retain the services of an
independent petroleum engineer, mutually acceptable to
the equity owners, who shall prepare a recommendation
on final equity figures. The Secretary may accept the rec-
ommendation of the independent petroleum engineer for
final equity in each known oil and gas zone and establish
final equity interest in the Naval Petroleum Reserve Num-
bered 1 in accordance with such recommendation, or the
Secretary may use such other method to establish final
equity interest in that reserve as the Secretary considers
424
appropriate. The Secretary may enter into the contract re-
quired under this paragraph on a noncompetitive basis.
‘‘(3) If, on the effective date of this section, there
is an ongoing equity redetermination dispute between the
equity owners under section 9(b) of the unit plan contract,
such dispute shall be resolved in the manner provided in
the unit plan contract not later than June 1, 1996. Such
resolution shall be considered final for all purposes under
this section.
‘‘(4) In this section, the term ‘unit plan contract’
means the unit plan contract between equity owners of the
lands within the boundaries of Naval Petroleum Reserve
Numbered 1 (Elk Hills) entered into on June 19, 1944.
‘‘(e) PRODUCTION ALLOCATION REGARDING NAVAL
PETROLEUM RESERVE NUMBERED 1.—(1) As part of the
contract for purchase of Naval Petroleum Reserve Num-
bered 1, the purchaser of the interest of the United States
in that reserve shall agree to make up to 25 percent of
the purchaser’s share of annual petroleum production
from the purchased lands available for sale to small refin-
ers, which do not have their own adequate sources of sup-
ply of petroleum, for processing or use only in their own
refineries. None of the reserved production sold to small
refiners may be resold in kind. The purchaser of that re-
serve may reduce the quantity of petroleum reserved under
425
this subsection in the event of an insufficient number of
qualified bids. The seller of this petroleum production has
the right to refuse bids that are less than the prevailing
market price of comparable oil.
‘‘(2) The purchaser of Naval Petroleum Reserve
Numbered 1 shall also agree to ensure that the terms of
every sale of the purchaser’s share of annual petroleum
production from the purchased lands shall be so struc-
tured as to give full and equal opportunity for the acquisi-
tion of petroleum by all interested persons, including
major and independent oil producers and refiners alike.
‘‘(f) MAINTAINING PRODUCTION PENDING SALE OF
NAVAL PETROLEUM RESERVE NUMBERED 1.—Until the
sale of Naval Petroleum Reserve Numbered 1 is completed
under this section, the Secretary shall continue to produce
that reserve at the maximum daily oil or gas rate from
a reservoir, which will permit maximum economic develop-
ment of the reservoir consistent with sound oil field engi-
neering practices in accordance with section 3 of the unit
plan contract. The definition of maximum efficient rate
in section 7420(6) of this title shall not apply to Naval
Petroleum Reserve Numbered 1.
‘‘(g) EFFECT ON EXISTING CONTRACTS.—(1) In the
case of any contract, in effect on the effective date of this
section, for the purchase of production from any part of
426
the United States’ share of the naval petroleum reserves,
the sale of the interest of the United States in the reserves
shall be subject to the contract for a period of three
months after the closing date of the sale or until termi-
nation of the contract, whichever occurs first. The term
of any contract entered into after the effective date of this
section for the purchase of such production shall not ex-
ceed the anticipated closing date for the sale of the re-
serve.
‘‘(2) In the case of Naval Petroleum Reserve Num-
bered 1, the Secretary shall exercise the termination pro-
cedures provided in the contract between the United
States and Bechtel Petroleum Operation, Inc., Contract
Number DE–ACO1–85FE60520 so that the contract ter-
minates not later than the date of closing of the sale of
that reserve.
‘‘(3) In the case of Naval Petroleum Reserve Num-
bered 1, the Secretary shall exercise the termination pro-
cedures provided in the unit plan contract so that the unit
plan contract terminates not later than the date of closing
of the sale of that reserve.
‘‘(h) OFFER OF SETTLEMENT OF STATE OF CALI-
FORNIA CLAIMS REGARDING NAVAL PETROLEUM RE-
SERVE NUMBERED 1.—(1) In connection with the sale of
Naval Petroleum Reserve Numbered 1, the Secretary shall
427
offer to settle all claims against the United States by the
State of California and the Teachers’ Retirement Fund
of the State of California with respect to lands within that
reserve, including sections 16 and 36 of township 30
south, range 23 east, Mount Diablo Principal Meridian,
California, or production or proceeds of sale from that re-
serve. Subject to paragraph (2), the Secretary shall offer
in settlement of such claims—
‘‘(A) a payment from funds provided for this
purpose in advance in appropriation Acts;
‘‘(B) a grant of land pursuant to sections 2275
and 2276 of the Revised Statutes of the United
States (43 U.S.C. 851 and 852) so long as such
land is not generating revenue for the United States;
‘‘(C) any other option that would not be incon-
sistent with the Congressional Budget Act of 1974
(2 U.S.C. 621 et seq.); or
‘‘(D) any combination of subparagraphs (A),
(B), and (C).
‘‘(2) The value of any payment, grant, or option (or
combination thereof) offered as settlement under para-
graph (1) may not exceed an amount equal to seven per-
cent of the proceeds from the sale of Naval Petroleum Re-
serve Numbered 1, after deducting the costs incurred to
conduct the sale of that reserve.
428
‘‘(3) Acceptance of the settlement offered under para-
graph (1) shall be subject to the condition that all claims
against the United States by the State of California or
the Teachers’ Retirement Fund of the State of California
are released with respect to lands within the Naval Petro-
leum Reserve Numbered 1, including sections 16 and 36
of township 30 south, range 23 east, Mount Diablo Prin-
cipal Meridian, California, or production or proceeds of
sale from that reserve. The Secretary may specify the
manner in which the release of such claims shall be evi-
denced.
‘‘(i) EFFECT ON ANTITRUST LAWS.—Nothing in this
section shall be construed to alter the application of the
antitrust laws of the United States to the purchaser of
a naval petroleum reserve or to the lands in the naval pe-
troleum reserves subject to sale under this section upon
the completion of the sale.
‘‘(j) PRESERVATION OF PRIVATE RIGHT, TITLE, AND
INTEREST.—Nothing in this section shall be construed to
adversely affect the ownership interest of any other entity
having any right, title, and interest in and to lands within
the boundaries of the naval petroleum reserves.
‘‘(k) CONGRESSIONAL NOTIFICATION.—Section 7431
of this title shall not apply to the sale of the naval petro-
leum reserves under this section. However, the Secretary
429
may not enter into a contract for the sale of a naval petro-
leum reserve until the end of the 15-day period beginning
on the date on which the Secretary notifies the Committee
on Armed Services of the Senate and the Committee on
National Security and the Committee on Commerce of the
House of Representatives that the Secretary has accepted
an offer under subsection (b)(5) for the sale of that re-
serve.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 7421 the following new
item:
‘‘7421a. Sale of naval petroleum reserves.’’.
Subtitle C—National Defense
Stockpile
SEC. 8021. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL
DEFENSE STOCKPILE FOR DEFICIT REDUC-
TION.
(a) DISPOSALS REQUIRED.—(1) During fiscal year
1996, the President shall dispose of all cobalt contained
in the National Defense Stockpile that, as of the date of
the enactment of this Act, is authorized for disposal under
any law (other than this Act).
(2) In addition to the disposal of cobalt under para-
graph (1), the President shall dispose of additional quan-
tities of cobalt and quantities of aluminum, ferro colum-
430
bium, germanium, palladium, platinum, and rubber con-
tained in the National Defense Stockpile so as to result
in receipts to the United States in amounts equal to—
(A) $21,000,000 during the fiscal year ending
September 30, 1996;
(B) $338,000,000 during the five-fiscal year pe-
riod ending on September 30, 2000; and
(C) $649,000,000 during the seven-fiscal year
period ending on September 30, 2002.
(3) The President is not required to include the dis-
posal of the materials identified in paragraph (2) in an
annual materials plan for the National Defense Stockpile.
Disposals made under this section may be made without
consideration of the requirements of an annual materials
plan.
(b) LIMITATION ON DISPOSAL QUANTITY.—The total
quantities of materials authorized for disposal by the
President under subsection (a)(2) may not exceed the
amounts set forth in the following table:
Authorized Stockpile Disposals
Material for disposal
Quantity
Aluminum .............................................................................
62,881 short tons
Cobalt ....................................................................................
42,482,323 pounds con-
tained
Ferro Columbium ..................................................................
930,911 pounds contained
Germanium ...........................................................................
68,207 kilograms
Palladium ..............................................................................
1,264,601 troy ounces
Platinum ...............................................................................
452,641 troy ounces
Rubber ..................................................................................
125,138 long tons
431
(c) DEPOSIT OF RECEIPTS.—Notwithstanding sec-
tion 9 of the Strategic and Critical Materials Stock Piling
Act (50 U.S.C. 98h), funds received as a result of the dis-
posal of materials under subsection (a)(2) shall be depos-
ited into the general fund of the Treasury for the purpose
of deficit reduction.
(d) RELATIONSHIP TO OTHER DISPOSAL AUTHOR-
ITY.—The disposal authority provided in subsection (a)(2)
is new disposal authority and is in addition to, and shall
not affect, any other disposal authority provided by law
regarding the materials specified in such subsection.
(e) TERMINATION OF DISPOSAL AUTHORITY.—The
President may not use the disposal authority provided in
subsection (a)(2) after the date on which the total amount
of receipts specified in subparagraph (C) of such sub-
section is achieved.
(f) DEFINITION.—The term ‘‘National Defense
Stockpile’’ means the National Defense Stockpile provided
for in section 4 of the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. 98c).
TITLE IX—COMMITTEE ON
RESOURCES
SEC. 9000. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE IX—COMMITTEE ON RESOURCES
432
Sec. 9000. Table of contents.
Subtitle A—Alaska and Helium Privatization
PART 1—ALASKA
Sec. 9001. Exports of Alaskan North Slope oil.
Sec. 9002. Arctic Coastal Plain leasing and revenue.
Sec. 9003. Alaska Power Administration sale.
PART 2—HELIUM PRIVATIZATION
Sec. 9011. Short title.
Sec. 9012. Amendment of Helium Act.
Sec. 9013. Authority of Secretary.
Sec. 9014. Sale of crude helium.
Sec. 9015. Elimination of stockpile.
Sec. 9016. Repeal of authority to borrow.
Sec. 9017. Reports.
Sec. 9018. Land conveyance in Potter County, Texas.
Subtitle B—Water and Power
PART 1—POWER MARKETING ADMINISTRATIONS
Sec. 9201. Short title.
Sec. 9202. Evaluation of sales of Southeastern, Southwestern, and Western
Area Power Administration facilities.
Sec. 9203. Bonneville Power Administration appropriations refinancing.
PART 2—RECLAMATION
Sec. 9211. Prepayment of certain repayment contracts between the United
States and the Central Utah Water Conservancy District.
Sec. 9212. Treatment of city of Folsom as a Central Valley Project contractor.
Sec. 9213. Sly Park.
Sec. 9214. Hetch Hetchy Dam.
Subtitle C—National Parks, Forests, and Public Lands
PART 1—CONCESSION REFORM
Sec. 9301. Short title.
Sec. 9302. Purpose.
Sec. 9303. Definitions.
Sec. 9304. Nature and types of concession authorizations.
Sec. 9305. Competitive selection process for concession service agreements.
Sec. 9306. Concessioner evaluations.
Sec. 9307. Capital improvements.
Sec. 9308. Duration of concession authorization.
Sec. 9309. Rates and charges to the public.
Sec. 9310. Transferability of concession authorizations.
Sec. 9311. Fees charged by the United States for concession authorizations.
Sec. 9312. Disposition of fees.
Sec. 9313. Dispute resolution.
Sec. 9314. Recordkeeping.
Sec. 9315. Application of general governmental acquisition requirements.
Sec. 9316. Rules of construction.
433
Sec. 9317. Regulations.
Sec. 9318. Relationship to other existing laws.
PART 2—NATIONAL FOREST SKI AREAS
Sec. 9321. Privatization of Forest Service ski areas.
Sec. 9322. Ski area permit fees and withdrawal of ski areas from operation of
mining laws.
PART 3—DOMESTIC LIVESTOCK GRAZING
Sec. 9331. Applicable regulations.
Sec. 9332. Fees and charges.
Sec. 9333. Animal unit month.
Sec. 9334. Term of grazing permits or grazing leases.
Sec. 9335. Conformance with land use plan.
Sec. 9336. Effective date.
PART 4—REGIONAL DISPOSAL FACILITY OF SOUTHWESTERN LOW LEVEL
RADIOACTIVE WASTE DISPOSAL COMPACT
Sec. 9341. Conveyance of property.
Sec. 9342. Conveyance of easements.
Subtitle D—Territories
PART 1—COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
Sec. 9401. Termination of annual direct grant assistance.
PART 2—TERRITORIAL ADMINISTRATIVE CESSATION ACT
Sec. 9421. Short title.
Sec. 9422. Congressional findings.
Sec. 9423. Elimination of Office of Territorial and International Affairs.
Sec. 9424. Certain activities not funded.
Subtitle E—Minerals
PART 1—HARDROCK MINING
Sec. 9501. Findings and purpose.
Sec. 9502. Patents under the general mining law.
Sec. 9503. Royalty under the general mining law.
Sec. 9504. Mineral materials.
Sec. 9505. Claim maintenance requirements.
PART 2—FEDERAL OIL AND GAS ROYALTIES
Sec. 9511. Short title.
Sec. 9512. Definitions.
Sec. 9513. Limitation periods.
Sec. 9514. Adjustment and refunds.
Sec. 9515. Required recordkeeping.
Sec. 9516. Royalty interest, penalties, and payments.
Sec. 9517. Limitation on assessments.
Sec. 9518. Alternatives for marginal properties.
Sec. 9519. Royalty in kind.
434
Sec. 9520. Royalty simplification and cost-effective audit and collection require-
ments.
Sec. 9521. Repeals.
Sec. 9522. Delegation to States.
Sec. 9523. Performance standard.
Sec. 9524. Indian lands.
Sec. 9525. Private lands.
Sec. 9526. Effective date.
Subtitle F—Indian Gaming
Sec. 9601. Indian gaming.
Subtitle G—Consultation
Sec. 9701. Consultation.
Subtitle H—Mapping
Sec. 9801. Short title.
Sec. 9802. Surveying and mapping contracting program.
Sec. 9803. Inventory of activities.
Sec. 9804. Plan to increase use of contracts.
Sec. 9805. Reports.
Sec. 9806. Definitions.
Subtitle A—Alaska and Helium
Privatization
PART 1—ALASKA
SEC. 9001. EXPORTS OF ALASKAN NORTH SLOPE OIL.
(a) AMENDMENT OF MINERAL LEASING ACT.—Sec-
tion 28(s) of the Mineral Leasing Act (30 U.S.C. 185(s))
is amended to read as follows:
‘‘EXPORTS OF ALASKAN NORTH SLOPE OIL
‘‘(s)(1) Subject to paragraphs (2) through (6) of this
subsection and notwithstanding any other provision of this
Act or any other provision of law (including any regula-
tion) applicable to the export of oil transported by pipeline
over right-of-way granted pursuant to section 203 of the
Trans-Alaska Pipeline Authorization Act (43 U.S.C.
435
1652), such oil may be exported unless the President finds
that exportation of this oil is not in the national interest.
The President shall make his national interest determina-
tion within 5 months after the date of enactment of this
subsection. In evaluating whether exports of this oil are
in the national interest, the President shall at a minimum
consider—
‘‘(A) whether exports of this oil would diminish
the total quantity or quality of petroleum available
to the United States;
‘‘(B) the results of an appropriate environ-
mental review, including consideration of appropriate
measures to mitigate any potential adverse effects of
exports of this oil on the environment, which shall
be completed within four months of the date of the
enactment of this subsection; and
‘‘(C) whether exports of this oil are likely to
cause sustained material oil supply shortages or sus-
tained oil prices significantly above world market
levels that would cause sustained material adverse
employment effects in the United States or that
would cause substantial harm to consumers, includ-
ing in noncontiguous States and Pacific territories.
If the President determines that exports of this oil are
in the national interest, he may impose such terms and
436
conditions (other than a volume limitation) as are nec-
essary or appropriate to ensure that such exports are con-
sistent with the national interest.
‘‘(2) Except in the case of oil exported to a country
with which the United States entered into a bilateral inter-
national oil supply agreement before November 26, 1979,
or to a country pursuant to the International Emergency
Oil Sharing Plan of the International Energy Agency, any
oil transported by pipeline over right-of-way granted pur-
suant to section 203 of the Trans-Alaska Pipeline Author-
ization Act (43 U.S.C. 1652) shall, when exported, be
transported by a vessel documented under the laws of the
United States and owned by a citizen of the United States
(as determined in accordance with section 2 of the Ship-
ping Act, 1916 (46 U.S.C. App. 802)).
‘‘(3) Nothing in this subsection shall restrict the au-
thority of the President under the Constitution, the Inter-
national Emergency Economic Powers Act (50 U.S.C.
1701 et seq.), or the National Emergencies Act (50 U.S.C.
1601 et seq.) to prohibit exports of this oil or under Part
B of title II of the Energy Policy and Conservation Act
(42 U.S.C. 6271–76).
‘‘(4) The Secretary of Commerce shall issue any rules
necessary for implementation of the President’s national
interest determination, including any licensing require-
437
ments and conditions, within 30 days of the date of such
determination by the President. The Secretary of Com-
merce shall consult with the Secretary of Energy in ad-
ministering the provisions of this subsection.
‘‘(5) If the Secretary of Commerce finds that export-
ing oil under authority of this subsection has caused sus-
tained material oil supply shortages or sustained oil prices
significantly above world market levels and further finds
that these supply shortages or price increases have caused
or are likely to cause sustained material adverse employ-
ment effects in the United States, the Secretary of Com-
merce, in consultation with the Secretary of Energy, shall
recommend, and the President may take, appropriate ac-
tion concerning exports of this oil, which may include
modifying or revoking authority to export such oil.
‘‘(6) Administrative action under this subsection is
not subject to sections 551 and 553 through 559 of title
5, United States Code.’’.
(b) GAO REPORT.—
(1) REVIEW.—The Comptroller General of the
United States shall conduct a review of energy pro-
duction in California and Alaska and the effects of
Alaskan North Slope oil exports, if any, on consum-
ers, independent refiners, and shipbuilding and ship
repair yards on the West Coast and in Hawaii. The
438
Comptroller General shall commence this review 2
years after the date of enactment of this Act and,
within 6 months after commencing the review, shall
provide a report to the Committee on Resources and
the Committee on Commerce of the House of Rep-
resentatives and the Committee on Energy and Nat-
ural Resources of the Senate.
(2) CONTENTS OF REPORT.—The report shall
contain a statement of the principal findings of the
review and recommendations for Congress and the
President to address job loss in the shipbuilding and
ship repair industry on the West Coast, as well as
adverse impacts on consumers and refiners on the
West Coast and in Hawaii, that the Comptroller
General attributes to Alaska North Slope oil exports.
SEC. 9002. ARCTIC COASTAL PLAIN LEASING AND REVE-
NUE.
(a) PURPOSE.—It is the purpose of this section to
reduce the Federal deficit by an estimated $1,300,000,000
over the next 5 years. This revenue will be derived from
competitive bonus bids for oil and gas leases in the Coastal
Plain area of Alaska’s North Slope.
(b) DEFINITIONS.—For the purposes of this section:
(1) The term ‘‘Secretary’’ means the Secretary
of the Interior.
439
(2) The term ‘‘Coastal Plain’’ means that por-
tion of the Arctic National Wildlife Refuge identified
in section 1002(b)(1) of the Alaska National Inter-
est Lands Conservation Act of 1980 (Public Law
96–487; 16 U.S.C. 3142(b)(1)) consisting of ap-
proximately 1,549,000 acres.
(c) COMPATIBILITY.—Congress hereby determines
that the oil and gas leasing program and activities author-
ized by this section in the Coastal Plain are compatible
with the purposes for which the Arctic National Wildlife
Refuge was established, and that no further findings or
decisions are required to implement this determination.
(d) AUTHORIZATION.—(1) Congress hereby author-
izes and directs the Secretary to establish and promptly
implement a program to assure the expeditious competi-
tive leasing exploration, development, production, and
transportation of the oil and gas resources of the Coastal
Plain. Regulations to implement this program and to gov-
ern oil and gas leasing, exploration, development and pro-
duction shall be promulgated by the Secretary within 6
months of the date of enactment of this section.
(2) The Coastal Plain leasing program required by
paragraph (1) shall include the following:
440
(A) The first lease sale of not less than 200,000
acres shall be conducted within 12 months of the
date of enactment of this section.
(B) The lease sales shall be based upon an in-
dustry nomination process.
(C) The Secretary is directed to grant to the
highest responsible qualified bidder or bidders by
competitive bidding, under regulations promulgated
in advance, any oil and gas lease on unleased Fed-
eral lands within the Coastal Plain. These regula-
tions may provide for the deposit of cash bids in an
interest-bearing account until the Secretary accepts
the bids, with interest earned paid to the General
Treasury for bids that are accepted, and to the un-
successful bidders for bids that are rejected.
(D) Royalty payments shall not be less than
121⁄2 percent, and rental payments shall be pre-
scribed by the Secretary.
(E) The Attorney General of the United States
and the Federal Trade Commission may conduct
such review of lease terms and lease sale activities
as are necessary to ensure compliance with the anti-
trust laws.
(F) The size of lease tracts may be up to
11,520 acres but not less than 2,560 acres, as deter-
441
mined by the Secretary, except that the Secretary
may lease smaller tracts if he determines smaller
tracts are necessary to promote a more competitive
leasing program or are necessary in certain locations
to mitigate reasonably foreseeable impacts on the en-
vironment.
(G) Each lease shall be issued for an initial pe-
riod of up to 10 years and shall be extended as long
as oil or gas is produced in paying quantities from
the lease or unit area to which the lease is commit-
ted or as drilling or reworking operations as ap-
proved by the Secretary are conducted thereon.
(H) The Secretary is authorized and directed to
promulgate regulations and to include terms in
leases to ensure that—
(i) activities are conducted pursuant to an
approved exploration or development plan;
(ii) lessees secure an appropriate perform-
ance bond to cover activities;
(iii) provision is made for the suspension,
cancellation, assignment, relinquishment and
unitization of leases; and
(iv) the Secretary has access to lease infor-
mation and that confidential, privileged or pro-
442
prietary information furnished by lessees is ade-
quately protected.
(e) JUDICIAL REVIEW.—Any complaint filed seeking
judicial review of an action of the Secretary in promulgat-
ing any regulation under this section may be filed only
in the United States Court of Appeals for the District of
Columbia, and such complaint shall be filed within 90 days
from the date of such promulgation, or after such date
if such complaint is based solely on grounds arising after
such 90th day, in which case the complaint must be filed
within 90 days after the complainant knew or reasonably
should have known of the grounds for the complaint. Any
complaint seeking judicial review of any other actions of
the Secretary under this section may be filed in any appro-
priate district court of the United States, and such com-
plaint must be filed within 90 days from the date of the
action being challenged, or after such date if such com-
plaint is based solely on grounds arising after such 90th
day, in which case the complaint must be filed within 90
days after the complainant knew or reasonably should
have known of the grounds for the complaint.
(f) ADMINISTRATION.—(1) Section 1003 of the Alas-
ka National Interest Lands Conservation Act of 1980 (94
Stat. 2452; 16 U.S.C. 3143) is repealed.
443
(2) This section shall be considered the primary land
management authorization for all activities associated
with exploration, development, and production from the
Coastal Plain. No land management review, determina-
tion, or other action shall be required except as specifically
authorized by this section.
(g) PROTECTION
OF FISH
AND WILDLIFE RE-
SOURCES
AND OTHER ENVIRONMENTAL VALUES.—(1)
Before conducting a competitive oil and gas lease sale
under this section, the Secretary shall promulgate, within
6 months, as provided in subsection (d)(1), such rules and
regulations as are necessary to ensure that oil and gas
exploration, development, production, and transportation
activities undertaken in the Coastal Plain achieve the rea-
sonable protection of the fish and wildlife resources, envi-
ronment and subsistence uses of the Coastal Plain.
(2) The Secretary shall administer the provisions of
this section through regulations and lease terms that the
Secretary determines to be necessary to mitigate reason-
ably foreseeable and significantly adverse effects on the
fish and wildlife, surface resources and subsistence re-
sources of the Coastal Plain.
(3)(A) The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, Alaska, and the
North Slope Borough, is authorized to close to leasing and
444
designate up to 30,000 acres of the Coastal Plain as Spe-
cial Areas if the Secretary determines that these lands are
of such unique character and interest so as to require spe-
cial management and regulatory protection. The Secretary
shall notify the Committee on Energy and Natural Re-
sources of the Senate and the Committee on Resources
of the House of Representatives 90 days in advance of
making such designations. The Secretary may permit leas-
ing of all or portions of any lands within the Coastal Plain
designated as Special Areas by setting lease terms that
limit or condition surface use and occupancy by lessees
of such lands but permit the use of horizontal drilling
technology from sites on leases located outside the des-
ignated Special Areas.
(B) Notwithstanding any other provision of law or
any international agreement to which the United States
is a party, the Secretary’s sole authority to close lands
within the Coastal Plain to oil and gas leasing and to ex-
ploration, development, and production as provided for in
this part is set forth in subparagraph (A).
(4) The Secretary shall, in consultation with the
State of Alaska, the city of Kaktovik, Alaska, and the
North Slope Borough, develop guidelines to encourage the
siting of facilities having common use characteristics
(service bases, ports and docks, airports, major pipelines
445
and roads) in a manner which leads to facility consolida-
tion, avoids unnecessary duplication, utilizes existing fa-
cilities, minimizes impacts on fish, wildlife, habitat and the
subsistence activities of residents of Native communities,
and avoids disruption of the lives of the residents of the
Village of Kaktovik and other communities.
(5) Notwithstanding title XI of the Alaska National
Interest Lands Conservation Act of 1980 (94 Stat. 2457;
16 U.S.C. 3161 et seq.), the Secretary is authorized and
directed to grant, under sections 28(a) through (t) and
(v) through (y) of the Mineral Leasing Act (30 U.S.C.
185), rights-of-way and easements across the Coastal
Plain for the purposes of this section, for pipeline con-
struction, and the transportation of oil and gas and relat-
ed purposes.
(6) The Secretary is authorized to close, on a sea-
sonal basis, portions of the Coastal Plain to exploratory
drilling activities as necessary to protect caribou calving
areas and other species of fish and wildlife.
(h) APPLICATION OF ENVIRONMENTAL LAWS.—The
‘‘Final Legislative Environmental Impact Statement’’
(April 1987) prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980
(94 Stat. 2449; 16 U.S.C. 3142) and section 102(2)(C)
of the National Environmental Policy Act of 1969 (89
446
Stat. 424; 42 U.S.C. 4332(2)(C)) is hereby determined
to be adequate and legally sufficient for all actions author-
ized pursuant to this section, including all phases of oil
and gas leasing, exploration, development, production,
transportation and related activities, including the grant-
ing of rights-of-way, use permits and other authorizations.
(i) NEW REVENUES.—(1) Notwithstanding any other
provision of law, all revenues received from competitive
bids, sales, bonuses, royalties, rents, fees, interest or other
income derived from the leasing of oil and gas resources
within the Coastal Plain shall be deposited into the Treas-
ury of the United States: Provided, That 50 percent of
all such Coastal Plain revenues shall be paid by the Sec-
retary of the Treasury semiannually, on March 30th and
on September 30th of each year, to the State of Alaska.
(2) On March 1st of each year following the date of
enactment of this section, the Secretary shall prepare and
submit to the Congress an annual report on the revenues
derived and on the leasing program authorized by this sec-
tion.
(j) CONVEYANCE.—Notwithstanding the provisions of
section 1302(h)(2) of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3192(h)(2)), the Secretary
is authorized and directed to convey (1) to the Kaktovik
Inupiat Corporation the surface estate of the lands de-
447
scribed in paragraph 2 of Public Land Order 6959, to the
extent necessary to fulfill the corporation’s entitlement
under section 12 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1611), and (2) to the Arctic Slope Re-
gional Corporation the subsurface estate beneath such
surface estate pursuant to the August 9, 1983, agreement
between the Arctic Slope Regional Corporation and the
United States of America.
(k) PENALTY.—Any person, including any Federal
official, who fails to comply with any provision or mandate
of this section, a lease term, or a regulation promulgated
under this section, after notice of such failure and expira-
tion of a reasonable period for corrective action, shall be
liable, after hearing, for a civil penalty of not more than
$10,000 for each day of the continuance of such failure.
(l) COMMUNITY ASSISTANCE.—There is hereby estab-
lished a Community Assistance Fund in the Treasury
which shall be maintained at a level of $5,000,000 annu-
ally from the Federal share of Coastal Plain revenues and
shall be available to the Secretary for the purposes of this
section. Organized boroughs, other municipal subdivisions
of the State of Alaska, and recognized Indian Reorganiza-
tion Act entities which are impacted by activities author-
ized under this section shall be eligible, on application to
the Secretary, for local assistance from the Community
448
Assistance Fund for needed social services and to provide
public services and facilities required in connection with
supporting exploration and development of the Coastal
Plain.
(m) EMPLOYMENT AND CONTRACTING.—As a condi-
tion of any leases, permits, or other Federal authorizations
granted or issued pursuant to this section, a recipient of
those leases, permits, or authorizations shall be required
to use its best efforts to assure that the lessee and its
agents and contractors provide a fair share of employment
and contracting for Alaska Natives and Alaska Native
Corporations from throughout the State.
(n) USE OF ANWR REVENUES.—
(1) ESTABLISHMENT OF ENDOWMENT.—There
is hereby established in the general fund of the
Treasury a separate account which shall be known
as the National Endowment for Fish and Wildlife.
(2) CONTENTS.—(A) Except as provided in
subparagraph (B), the Endowment shall consist of
revenues received from the following sources:
(i) Gifts, devises, and bequests to the En-
dowment.
(ii) Amounts appropriated by the Congress
to the Endowment.
449
(iii) Any revenues deposited into the
Treasury of the United States under subsection
(i), from the Federal share of revenues derived
from oil and gas leasing within the Coastal
Plain, that exceed $1,300,000,000.
(B) After the Endowment has reached a level of
$250,000,000 in principal, further payments to the
Endowment shall consist only of the following:
(i) Gifts, devises, and bequests to the En-
dowment.
(ii) Amounts appropriated by the Congress
to the Endowment.
(iii) 5 percent of the Federal royalties de-
rived from commercial production of oil and gas
on Federal leases on the Coastal Plain.
(3) ESTABLISHMENT OF FISH AND WILDLIFE
CONSERVATION COMMISSION.—(A) To carry out the
purposes of this subsection, there is hereby estab-
lished a commission to be known as the Fish and
Wildlife Conservation Commission.
(B) The Commission shall consist of—
(i) the Secretary of the Interior, who shall
be the chairman,
(ii) 3 Members of the Senate selected by
the President of the Senate, and
450
(iii) 3 Members of the House of Represent-
atives selected by the Speaker.
(C) At least 1 member of the Commission se-
lected from each House of Congress shall be a mem-
ber of the minority party in that House.
(D) Any Member of the House of Representa-
tives who is a member of the Commission, if re-
elected to the succeeding Congress, may serve on the
Commission notwithstanding the expiration of a
Congress.
(E) Any vacancy on the Commission shall be
filled in the same manner as the original appoint-
ment.
(4) EXPENDITURES BY COMMISSION.—(A) The
Fish and Wildlife Commission may make expendi-
tures from the Endowment for the following fish and
wildlife conservation purposes:
(i) Acquisition of important habitat lands
for endangered species or threatened species
from owners of private property. Such lands
may be acquired solely on a willing seller basis
and shall be managed by the Secretary of the
Interior for the conservation of such species
pursuant to the terms of section 5 of the En-
451
dangered Species Act of 1973 (16 U.S.C.
1534).
(ii) Provision of funding for purposes au-
thorized under the Endangered Species Act of
1973.
(iii) Provision of funds to the North Amer-
ican Wetlands Conservation Fund pursuant to
the North American Wetlands Conservation Act
(16 U.S.C. 4401 et seq.).
(B) The amount expended under subparagraph
(A)(iii) each fiscal year shall equal or exceed 25 per-
cent of the total expenditures from the Endowment
in that fiscal year.
(C) The Secretary of the Interior may not rec-
ommend any lands or interest in lands for purchase
or other forms of acquisition using funds made
available under the terms of this section unless the
Secretary of the Interior—
(i) has determined that such lands are nec-
essary for the conservation of endangered spe-
cies or other fish and wildlife; and
(ii) has consulted with the county or other
unit of local government in which such lands
are located and with the Governor of the State
concerned.
452
(D) Land or an interest in land may not be ac-
quired with moneys from the Endowment unless—
(i) the acquisition thereof has been ap-
proved by the Governor of the State in which
the land is located; and
(ii) the owner of the land or interest has
offered the land or interest for acquisition
under this subsection and consented to the ac-
quisition.
(5) ANNUAL REPORT.—The Commission shall,
through its chairman, annually report in detail to
the Congress, by not later than the first Monday in
December, regarding the operations of the Commis-
sion during the preceding fiscal year.
(6) STATE LAW.—The jurisdiction of any State,
both civil and criminal, over persons upon areas ac-
quired under this subsection shall not be changed or
otherwise affected by reason of the acquisition and
administration of the areas by the United States as
endangered species habitat. Nothing in this sub-
section is intended to interfere with the operation
of the game laws of the States.
(7) ADMINISTRATION OF AREAS ACQUIRED.—
Areas of lands, waters, or interest therein acquired
or reserved pursuant to this subsection shall, unless
453
otherwise provided by law, be administered by the
Secretary of the Interior under rules and regulations
prescribed by the Secretary to conserve and protect
endangered species in accordance with the Endan-
gered Species Act of 1973, or to restore or develop
adequate wildlife habitat.
(8) DEFINITIONS.—In this subsection:
(A) The term ‘‘Commission’’ means the
Fish and Wildlife Conservation Commission es-
tablished by this subsection.
(B) The term ‘‘Endowment’’ means the
National Endowment for Fish and Wildlife es-
tablished by this subsection.
(9) CONFORMING AMENDMENT.—Section 7 of
the North American Wetlands Conservation Act of
1989 (16 U.S.C. 4406) is amended by adding at the
end the following:
‘‘(e) FISH AND WILDLIFE COMMISSION FUNDING.—
In addition to the amounts made available under sub-
sections (a), (b), and (c) of this section, the Council may
receive funds from the Fish and Wildlife Commission to
carry out the purposes of this Act. Use of such funds shall
not be subject to the cost allocation requirements of sec-
tion 8 of this Act.’’.
454
SEC. 9003. ALASKA POWER ADMINISTRATION SALE.
(a) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘Eklutna assets’’ means the
Eklutna Hydroelectric Project and related assets as
described in section 4 and Exhibit A of the Eklutna
Purchase Agreement.
(2) The term ‘‘Eklutna Purchase Agreement’’
means the August 2, 1989, Eklutna Purchase
Agreement between the Alaska Power Administra-
tion of the Department of Energy and the Eklutna
Purchasers, together with any amendments thereto
which were adopted before the enactment of this sec-
tion.
(3) The term ‘‘Eklutna Purchasers’’ means the
Municipality of Anchorage doing business as Munici-
pal Light and Power, the Chugach Electric Associa-
tion, Inc. and the Matanuska Electric Association,
Inc.
(4) The term ‘‘Secretary’’ means the Secretary
of Energy except where otherwise specified.
(5) The term ‘‘Snettishan assets’’ means the
Snettisham Hydroelectric Project and related assets
as described in section 4 and Exhibit A of the
Snettisham Purchase Agreement.
(6) The term ‘‘Snettisham Purchase Agree-
ment’’ means the February 10, 1989, Snettisham
455
Purchase Agreement between the Alaska Power Ad-
ministration of the Department of Energy and the
Alaska Power Authority and its successors in inter-
est, together with any amendments thereto which
were adopted before the enactment of this section.
(b) SALE OF SNETTISHAM AND EKLUNTA ASSETS.—
(1) SNETTISHAM.—The Secretary is authorized
and directed to sell and transfer the Snettisham as-
sets to the State of Alaska in accordance with the
terms of this section and the Snettisham Purchase
Agreement.
(2) EKLUTNA.—The Secretary is authorized
and directed to sell and transfer the Eklutna assets
to the Eklutna Purchasers in accordance with the
terms of this section and the Eklutna Purchase
Agreement.
(3) COOPERATION
OF
OTHER
AGENCIES.—
Other departments, agencies, and instrumentalities
of the United States shall cooperate with the Sec-
retary in implementing the sales and transfers under
this section.
(4) AUTHORIZATION OF APPROPRIATIONS; CON-
TRIBUTED FUNDS.—(A) There are authorized to be
appropriated such sums as may be necessary to pre-
pare, survey, or acquire Snettisham and Eklutna as-
456
sets for sale and transfer under this section. Such
preparations and acquisitions shall provide sufficient
title in the assets to ensure beneficial use, enjoy-
ment, and occupancy thereof to the purchasers.
(B) Notwithstanding any other provision of law,
the Alaska Power Administration is authorized to re-
ceive, administer, and expend such contributed funds
as may be provided by the Eklutna Purchasers or
customers or the Snettisham Purchasers or cus-
tomers for the purposes of upgrading, improving,
maintaining, 
or 
administering 
Eklutna 
or
Snettisham. Upon the termination of the Alaska
Power Administration required under subsection (d),
the Secretary of Energy shall administer and expend
any remaining balances of such contributed funds
for the purposes intended by the contributors.
(C) The Secretary is directed to use up to
$5,000,000 from unobligated balances available to
the Department of Energy to fund any sale prepara-
tion costs for the sales under this section, and shall
provide an accounting of all sale preparation costs to
the Committee on Resources of the House of Rep-
resentatives and to the Committee on Energy and
Natural Resources of the Senate within 60 days
after completion of the sale.
457
(c) GENERAL PROVISIONS.—
(1) RIGHTS-OF-WAY
AND
OTHER
LANDS
FOR
THE EKLUTNA PROJECT.—With respect to Eklutna
lands described in Exhibit A of the Eklutna Pur-
chase Agreement:
(A) The Secretary of the Interior shall
issue rights-of-way to the Alaska Power Admin-
istration for subsequent reassignment to the
Eklutna Purchasers at no cost to the Eklutna
Purchasers.
(B) Such rights-of-way shall remain effec-
tive for a period equal to the life of the Eklutna
hydroelectric project as extended by improve-
ments, repairs, renewals, or replacements.
(C) Such rights-of-way shall be sufficient
for the operation, maintenance, repair, and re-
placement of, and access to, the facilities of the
Eklutna hydroelectric project located on mili-
tary lands and lands managed by the Bureau of
Land Management, including land selected by,
but not yet conveyed to, the State of Alaska.
(D) If the Eklutna Purchasers subse-
quently sell or transfer the Eklutna hydro-
electric project to private ownership, the Bu-
reau of Land Management may assess reason-
458
able and customary fees for continued use of
the rights-of-way on lands managed by the Bu-
reau of Land Management and military lands
in accordance with applicable law.
(E) The Secretary shall transfer fee title to
lands at Anchorage Substation to the Eklutna
Purchasers at no additional cost if the Sec-
retary of the Interior determines that pending
claims to and selections of those lands are in-
valid or relinquished.
(F) With respect only to the Eklutna lands
identified in Exhibit A of the Eklutna Purchase
Agreement, the State of Alaska may select, and
the Secretary of the Interior shall convey, to the
State, improved lands under the selection enti-
tlements in section 6 of the Alaska Statehood
Act (Public Law 85–508; 72 Stat. 339) and the
North Anchorage Land Agreement of January
31, 1983. The conveyance of such lands is sub-
ject to the rights-of-way provided to the
Eklutna Purchasers under subparagraph (A).
(2) LANDS FOR THE SNETTISHAM PROJECT.—
With respect to the Snettisham lands identified in
Exhibit A of the Snettisham Purchase Agreement,
the State of Alaska may select, and the Secretary of
460
lic Law 85–508; 72 Stat. 339), and other applicable
law.
(4) REPEAL OF ACT OF AUGUST 9, 1955.—The
Act of August 9, 1955 (69 Stat. 618), concerning
water resources investigations in Alaska, is repealed.
(5) TREATMENT OF ASSET SALE.—The sales of
assets under this section shall not be considered a
disposal of Federal surplus property under the Fed-
eral Property and Administrative Services Act of
1949 (40 U.S.C. 484) or the Surplus Property Act
of 1944 (50 U.S.C. App. 1622).
(6) APPLICATION OF CERTAIN LAWS.—(A) The
Act of July 31, 1950 (64 Stat. 382), shall cease to
apply on the date, as determined by the Secretary,
when all Eklutna assets have been conveyed to the
Eklutna Purchasers.
(B) Section 204 of the Flood Control Act of
1962 (Public Law 87–874; 76 Stat. 1193) shall
cease to apply effective on the date, as determined
by the Secretary, when all Snettisham assets have
been conveyed to the State of Alaska.
(d) TERMINATION OF ALASKA POWER ADMINISTRA-
TION.—
(1) 
TERMINATION
OF
ALASKA
POWER
ADMINISTATION.—Not later than one year after both
461
of the sales authorized in this section have occurred,
as measured by the Transaction Dates stipulated in
the Purchase Agreements, the Secretary shall—
(A) complete the business of, and close
out, the Alaska Power Administration;
(B) prepare and submit to Congress a re-
port documenting the sales; and
(C) return unobligated balances of funds
appropriated for the Alaska Power Administra-
tion to the Treasury of the United States.
(2) DOE ORGANIZATION ACT.—Section 302(a)
of the Department of Energy Organization Act (42
U.S.C. 7152(a)) is amended as follows:
(A) In paragraph (1)—
(i) by striking out subparagraph (C);
and
(ii) by redesignating subparagraphs
(D), (E), and (F) as subparagraphs (C),
(D), and (E) respectively.
(B) In paragraph (2), by striking out ‘‘the
Bonneville Power Administration, and the Alas-
ka Power Administration’’ and inserting in lieu
thereof ‘‘and the Bonneville Power Administra-
tion’’.
462
The amendments made by this paragraph shall take
effect on the date on which the Secretary submits
the report referred to in subparagraph (B) of para-
graph (1).
(e) PROCEEDS.—The proceeds from the sale of
Snettisham and Eklutna assets under this section shall be
credited to miscellaneous receipts in the Treasury.
(f) SECTION
147(d) 
OF
INTERNAL
REVENUE
CODE.—For purposes of section 147(d) of the Internal
Revenue Code of 1986, the ‘‘first use’’ of Snettisham shall
be considered to occur pursuant to acquistion of the prop-
erty by or on behalf of the State of Alaska.
PART 2—HELIUM PRIVATIZATION
SEC. 9011. SHORT TITLE.
This part may be cited as the ‘‘Helium Privatization
Act of 1995’’.
SEC. 9012. AMENDMENT OF HELIUM ACT.
Except as otherwise expressly provided, whenever in
this part an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Helium Act (50 U.S.C.
167 to 167n).
SEC. 9013. AUTHORITY OF SECRETARY.
Sections 3, 4, and 5 are amended to read as follows:
463
‘‘SEC. 3. AUTHORITY OF SECRETARY.
‘‘(a) EXTRACTION AND DISPOSAL OF HELIUM ON
FEDERAL LANDS.—(1) The Secretary may enter into
agreements with private parties for the recovery and dis-
posal of helium on Federal lands upon such terms and
conditions as he deems fair, reasonable and necessary. The
Secretary may grant leasehold rights to any such helium.
The Secretary may not enter into any agreement by which
the Secretary sells such helium other than to a private
party with whom the Secretary has an agreement for re-
covery and disposal of helium. Such agreements may be
subject to such rules and regulations as may be prescribed
by the Secretary.
‘‘(2) Any agreement under this subsection shall be
subject to the existing rights of any affected Federal oil
and gas lessee. Each such agreement (and any extension
or renewal thereof) shall contain such terms and condi-
tions as deemed appropriate by the Secretary.
‘‘(3) This subsection shall not in any manner affect
or diminish the rights and obligations of the Secretary and
private parties under agreements to dispose of helium pro-
duced from Federal lands in existence at the enactment
of the Helium Privatization Act of 1995 except to the ex-
tent that such agreements are renewed or extended after
such date.
464
‘‘(b) STORAGE, TRANSPORTATION, AND SALE.—The
Secretary is authorized to store, transport, and sell helium
only in accordance with this Act.
‘‘(c) MONITORING AND REPORTING.—The Secretary
is authorized to monitor helium production and helium re-
serves in the United States and to periodically prepare re-
ports regarding the amounts of helium produced and the
quantity of crude helium in storage in the United States.
‘‘SEC. 4. STORAGE, TRANSPORTATION, AND WITHDRAWAL
OF CRUDE HELIUM.
‘‘(a) STORAGE, TRANSPORTATION, 
AND
WITH-
DRAWAL.—The Secretary is authorized to store and trans-
port crude helium and to maintain and operate existing
crude helium storage at the Bureau of Mines Cliffside
Field, together with related helium transportation and
withdrawal facilities.
‘‘(b) CESSATION OF PRODUCTION, REFINING, AND
MARKETING.—Effective 18 months after the date of en-
actment of the Helium Privatization Act of 1995, the Sec-
retary shall cease producing, refining and marketing re-
fined helium and shall cease carrying out all other activi-
ties relating to helium which the Secretary was authorized
to carry out under this Act before the date of enactment
of the Helium Privatization Act of 1995, except those ac-
tivities described in subsection (a). The amount of helium
465
reserves owned by the United States and stored in the Bu-
reau of Mines Cliffside Field at such date of cessation,
less 600,000,000 cubic feet, shall be the helium reserves
owned by the United States required to be sold pursuant
to section 8(b) hereof.
‘‘(c) DISPOSAL
OF FACILITIES.—(1) Within two
years after the date on which the Secretary ceases produc-
ing, refining and marketing refined helium and ceases all
other activities relating to helium in accordance with sub-
section (b), the Secretary shall dispose of all facilities,
equipment, and other real and personal property, together
with all interests therein, held by the United States for
the purpose of producing, refining and marketing refined
helium. The disposal of such property shall be in accord-
ance with the provisions of law governing the disposal of
excess or surplus properties of the United States.
‘‘(2) All proceeds accruing to the United States by
reason of the sale or other disposal of such property shall
be treated as moneys received under this chapter for pur-
poses of section 6(f). All costs associated with such sale
and disposal (including costs associated with termination
of personnel) and with the cessation of activities under
subsection (b) shall be paid from amounts available in the
helium production fund established under section 6(f).
466
‘‘(3) Paragraph (1) shall not apply to any facilities,
equipment, or other real or personal property, or any in-
terest therein, necessary for the storage and transpor-
tation of crude helium or any equipment needed to main-
tain the purity, quality control, and quality assurance of
helium in the reserve.
‘‘(d) EXISTING CONTRACTS.—All contracts which
were entered into by any person with the Secretary for
the purchase by such person from the Secretary of refined
helium and which are in effect on the date of the enact-
ment of the Helium Privatization Act of 1995 shall remain
in force and effect until the date on which the facilities
referred to in subsection (c) are disposed of. Any costs
associated with the termination of such contracts shall be
paid from the helium production fund established under
section 6(f).
‘‘SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITH-
DRAWAL.
‘‘Whenever the Secretary provides helium storage,
withdrawal, or transportation services to any person, the
Secretary is authorized and directed to impose fees on
such person to reimburse the Secretary for the full costs
of providing such storage, transportation, and withdrawal.
All such fees received by the Secretary shall be treated
467
as moneys received under this Act for purposes of section
6(f).’’.
SEC. 9014. SALE OF CRUDE HELIUM.
Section 6 is amended as follows:
(1) Subsection (a) is amended by striking out
‘‘from the Secretary’’ and inserting ‘‘from persons
who have entered into enforceable contracts to pur-
chase an equivalent amount of crude helium from
the Secretary’’.
(2) Subsection (b) is amended by inserting
‘‘crude’’ before ‘‘helium’’ and by adding the follow-
ing at the end thereof: ‘‘Except as may be required
by reason of subsection (a), the Secretary shall not
make sales of crude helium under this section in
such amounts as will disrupt the market price of
crude helium.’’.
(3) Subsection (c) is amended by inserting
‘‘crude’’ before ‘‘helium’’ the first place it appears
and by striking ‘‘together with interest as provided
in subsection (d) of this section’’ and all that follows
down through the period at the end of such sub-
section and inserting the following:
‘‘all funds required to be repaid to the United States as
of October 1, 1995, under this section (hereinafter re-
ferred to as ‘repayable amounts’). The price at which
468
crude helium is sold by the Secretary shall not be less than
the amount determined by the Secretary as follows:
‘‘(1) Divide the outstanding amount of such re-
payable amounts by the volume (in mcf) of crude he-
lium owned by the United States and stored in the
Bureau of Mines Cliffside Field at the time of the
sale concerned.
‘‘(2) Adjust the amount determined under para-
graph (1) by the Consumer Price Index for years be-
ginning after December 31, 1995.’’.
(4) Subsection (d) is amended to read as fol-
lows:
‘‘(d) EXTRACTION OF HELIUM FROM DEPOSITS ON
FEDERAL LANDS.—All moneys received by the Secretary
from the sale or disposition of helium on Federal lands
shall be paid to the Treasury and credited against the
amounts required to be repaid to the Treasury under sub-
section (c) of this section.’’.
(5) Subsection (e) is repealed.
(6) Subsection (f) is amended by inserting
‘‘(1)’’ after ‘‘(f)’’ and by adding the following at the
end thereof:
‘‘(2) Within 7 days after the commencement of each
fiscal year after the disposal of the facilities referred to
in section 4(c), all amounts in such fund in excess of
469
$2,000,000 (or such lesser sum as the Secretary deems
necessary to carry out this Act during such fiscal year)
shall be paid to the Treasury and credited as provided in
paragraph (1). Upon repayment of all amounts referred
to in subsection (c), the fund established under this sec-
tion shall be terminated and all moneys received under this
Act shall be deposited in the Treasury as General Reve-
nues.’’.
SEC. 9015. ELIMINATION OF STOCKPILE.
Section 8 is amended to read as follows:
‘‘SEC. 8. ELIMINATION OF STOCKPILE.
‘‘(a) REVIEW OF RESERVES.—The Secretary shall re-
view annually the known helium reserves in the United
States and make a determination as to the expected life
of the domestic helium reserves (other than Federally
owned helium stored at the Cliffside Reservoir) at that
time.
‘‘(b) STOCKPILE SALES.—Not later than January 1,
2005, the Secretary shall commence offering for sale crude
helium from helium reserves owned by the United States
in such minimum annual amounts as would be necessary
to dispose of all such helium reserves in excess of
600,000,000 cubic feet (mcf) on a straight-line basis be-
tween such date and January 1, 2015: Provided, That the
minimum price for all such sales, as determined by the
470
Secretary in consultation with the helium industry, shall
be such as will ensure repayment of the amounts required
to be repaid to the Treasury under section 6(c), and pro-
vided further that the minimum annual sales requirement
may be deferred only if, and to the extent that, the Sec-
retary is unable to arrange sales at the minimum price.
The sales shall be at such times during each year and in
such lots as the Secretary determines, in consultation with
the helium industry, are necessary to carry out this sub-
section with minimum market disruption.
‘‘(c) DISCOVERY OF ADDITIONAL RESERVES.—The
discovery of additional helium reserves shall not affect the
duty of the Secretary to make sales of helium as provided
in subsection (b), as the case may be.’’.
SEC. 9016. REPEAL OF AUTHORITY TO BORROW.
Sections 12 and 15 are repealed.
SEC. 9017. REPORTS.
Section 16 is amended by redesignating existing sec-
tion 16 as section 16(a) and inserting the following at the
end thereof:
‘‘(b)(1) The Inspector General of the Department of
the Interior shall cause to be prepared, not later than
March 31 following each fiscal year commencing with the
date of enactment of the Helium Privatization Act of
1995, annual financial statements for the Helium Oper-
471
ations of the Bureau of Mines. The Director of the Bureau
of Mines shall cooperate with the Inspector General in ful-
filling this requirement, and shall provide him with such
personnel and accounting assistance as may be necessary
for that purpose. The financial statements shall be audited
by the General Accounting Office, and a report on such
audit shall be delivered by the General Accounting Office
to the Secretary of the Interior and Congress, not later
than June 30 following the end of the fiscal year for which
they are prepared. The audit shall be prepared in accord-
ance with generally accepted government auditing stand-
ards.
‘‘(2) The financial statements shall be comprised of
the following:
‘‘(A) A balance sheet reflecting the overall fi-
nancial position of the Helium Operations, including
assets and liabilities thereof;
‘‘(B) the Statement of Operations, reflecting
the fiscal period results of the Helium Operations;
‘‘(C) a statement cash flows or changes in fi-
nancial position of the Helium Operations; and
‘‘(D) a reconciliation of budget reports of the
Helium Operations.
‘‘(3) The Statement of Operations shall include but
not be limited to the revenues from, and costs of, sales
472
of crude helium, the storage and transportation of crude
helium, the production, refining and marketing of refined
helium, and the maintenance and operation of helium stor-
age facilities at the Bureau of Mines Cliffside Field. The
term ‘revenues’ for this purpose shall exclude (A) royalties
paid to the United States for production of helium or other
extraction of resources, except to the extent that the He-
lium Operations incur direct costs in connection therewith,
and (B) proceeds from sales of assets other than inven-
tory. The term ‘expenses’ shall include, but not be limited
to (i) all labor costs of the Bureau of Mines Helium Oper-
ations, and of the Department of the Interior in connec-
tion therewith, and (ii) for financial reporting purposes
but not in connection with the determination of sales
prices in section 6(c), all current-period interest on out-
standing repayable amounts (as described in section 6(c))
calculated at the same rates as such interest was cal-
culated prior to the enactment of the Helium Privatization
Act of 1995.
‘‘(4) The balance sheet shall include, but not be lim-
ited to, on the asset side, the present discounted market
value of crude helium reserves; and on the liability side,
the accrued liability for principal and interest on debt to
the United States. For financial reporting purposes but
not in connection with the determination of sales prices
473
in section 6(c), the balance sheet shall also include accrued
but unpaid interest on outstanding repayable amounts (as
described in section 6(c)) through the date of the report,
calculated at the same rates as such interest was cal-
culated prior to the enactment of the Helium Privatization
Act of 1995.’’.
SEC. 9018. LAND CONVEYANCE IN POTTER COUNTY, TEXAS.
(a) IN GENERAL.—The Secretary of the Interior shall
transfer all right, title, and interest of the United States
in and to the parcel of land described in subsection (b)
to the Texas Plains Girl Scout Council for consideration
of $1, reserving to the United States such easements as
may be necessary for pipeline rights-of-way.
(b) LAND DESCRIPTION.—The parcel of land re-
ferred to in subsection (a) is all those certain lots, tracts
or parcels of land lying and being situated in the County
of Potter and State of Texas, and being the East Three
Hundred Thirty-One (E331) acres out of Section Seventy-
eight (78) in Block Nine (9), B.S. & F. Survey, (some-
times known as the G. D. Landis pasture) Potter County,
Texas, located by certificate No. 1/39 and evidenced by
letters patents Nos. 411 and 412 issued by the State of
Texas under date of November 23, 1937, and of record
in Vol. 66A of the Patent Records of the State of Texas.
474
The metes and bounds description of such lands is as fol-
lows:
(1) FIRST TRACT.—One Hundred Seventy-one
(171) acres of land known as the North part of the
East part of said survey Seventy-eight (78) afore-
said, described by metes and bounds as follows:
Beginning at a stone 20 x 12 x 3 inches
marked X, set by W. D. Twichell in 1905, for
the Northeast corner of this survey and the
Northwest corner of Section 59;
Thence, South 0 degrees 12 minutes East with
the West line of said Section 59, 999.4 varas to
the Northeast corner of the South 160 acres of
East half of Section 78;
Thence, North 89 degrees 47 minutes West
with the North line of the South 150 acres of
the East half, 956.8 varas to a point in the
East line of the West half Section 78;
Thence North 0 degrees 10 minutes West with
the East line of the West half 999.4 varas to
a stone 18 x 14 x 3 inches in the middle of the
South line of Section 79;
Thence South 89 degrees 47 minutes East 965
varas to the place of beginning.
475
(2) SECOND TRACT.—One Hundred Sixty (160)
acres of land known as the South part of the East
part of said survey No. Seventy-eight (78) described
by metes and bounds as follows:
Beginning at the Southwest corner of Section
59, a stone marked X and a pile of stones;
Thence North 89 degrees 47 minutes West with
the North line of Section 77, 966.5 varas to the
Southeast corner of the West half of Section
78; Thence North 0 degrees 10 minutes West
with the East line of the West half of Section
78;
Thence South 89 degrees 47 minutes East
965.8 varas to a point in the East line of Sec-
tion 78;
Thence South 0 degrees 12 minutes East 934.6
varas to the place of beginning.
Containing an area of 331 acres, more or less.
Subtitle B—Water and Power
PART 1—POWER MARKETING ADMINISTRATIONS
SEC. 9201. SHORT TITLE.
This part may be cited as the ‘‘Power Administration
Act’’.
476
SEC. 9202. EVALUATION OF SALES OF SOUTHEASTERN,
SOUTHWESTERN, 
AND 
WESTERN 
AREA
POWER ADMINISTRATION FACILITIES.
(a) REPEALS.—The following provisions are repealed:
(1) Section 505 of Public Law 102–377, the
Fiscal Year 1993 Energy and Water Development
Appropriations Act.
(2) Section 208 of Public Law 99–349, the Ur-
gent Supplemental Appropriations Act, 1986.
(3) Section 510 of Public Law 101–514, the
Fiscal Year 1991 Energy and Water Development
appropriations Act.
(b) EVALUATION OF ISSUES.—(1) The Secretary of
Energy, the Secretary of the Interior, and the Secretary
of the Army shall enter into arrangements with an experi-
enced private sector firm to serve as advisor to the Sec-
retaries with respect to the sale of the facilities used to
generate and transmit the electric power marketed by the
Southeastern Power Administration, the Southwestern
Power Administration and the Western Area Power Ad-
ministration, including all transmission and related struc-
tures, equipment, facilities and all real, tangible and intan-
gible property (including rights-of-way) which are used in
connection with, and necessary for, the operation of such
power generation and transmission facilities.
477
(2) Prior to December 31, 1996, the advisor shall
provide to the Secretaries and the Congress a report iden-
tifying all recipients of water and power from such facili-
ties, all relevant contracts, debt obligations, equity inter-
ests, and other binding agreements which apply to the fa-
cilities concerned and to the sale of electric power from
such facilities, all assets tangible or intangible, all applica-
ble requirements relating to environmental mitigation, In-
dian trust responsibilities, land ownership or use rights
relevant to the proposed transfers which could terminate
based on a transfer out of Federal ownership, and naviga-
tional requirements which affect the operation of such fa-
cilities.
(3) In conducting the evaluation, the Secretaries and
the advisor should also recognize that many of the dams
and reservoirs associated with the generation of electric
power marketed by the Power Marketing Administrations
are first and foremost water supply, flood control, or navi-
gation projects. In general, power generation is incidental
to these primary purposes. In addition, there are also sec-
ondary purposes such as recreation and environmental val-
ues which are served by these facilities as well as the
power production. The evaluation should assume that such
facilities will continue to be operated in a manner consist-
ent with their current, primary purposes and the evalua-
478
tion directed by this section shall not assume any changes
in the other current operational objectives of the facilities.
(4) Such evaluation shall also include an evaluation
of the tax consequences, and the revenue impacts of such
consequences for the United States, of possible arrange-
ments for the sale of generation and transmission facilities
to potential transferees identified by the advisor. The re-
port shall also investigate alternative groupings of such
generation and transmission facilities for purposes of sale
in order to determine which groupings would be most de-
sirable for purposes of effectuating such sales. Proposed
transfers should be structured by watershed or by project
unless the advisor can provide satisfactory information to
the Secretaries that another alternative should be used.
Asset groupings shall specifically be designed to avoid the
sale of the most valuable assets while the Federal govern-
ment would be forced to retain the less valuable assets.
SEC. 9203. BONNEVILLE POWER ADMINISTRATION APPRO-
PRIATIONS REFINANCING.
(a) DEFINITIONS.—For the purposes of this section:
(1) The term ‘‘Administrator’’ means the Ad-
ministrator of the Bonneville Power Administration.
(2) The term ‘‘capital investment’’ means a
capitalized cost funded by Federal appropriations
that—
479
(A) is for a project, facility, or separable
unit or feature of a project or facility;
(B) is a cost for which the Administrator
is required by law to establish rates to repay to
the United States Treasury through the sale of
electric power, transmission, or other services;
(C) excludes a Federal irrigation invest-
ment; and
(D) excludes an investment financed by the
current revenues of the Administrator or by
bonds issued and sold, or authorized to be is-
sued and sold, by the Administrator under sec-
tion 13 of the Federal Columbia River Trans-
mission System Act (16 U.S.C. 838(k)).
(3) The term ‘‘new capital investment’’ means
a capital investment for a project, facility, or sepa-
rable unit or feature of a project or facility, placed
in service after September 30, 1995.
(4) The term ‘‘old capital investment’’ means a
capital investment whose capitalized cost—
(A) was incurred, but not repaid, before
October 1, 1995; and
(B) was for a project, facility, or separable
unit or feature of a project or facility, placed in
service before October 1, 1995.
480
(5) The term ‘‘repayment date’’ means the end
of the period within which the Administrator’s rates
are to assure the repayment of the principal amount
of a capital investment.
(6) The term ‘‘Treasury rate’’ means—
(A) for an old capital investment, a rate
determined by the Secretary of the Treasury,
taking into consideration prevailing market
yields, during the month preceding October 1,
1995, on outstanding interest-bearing obliga-
tions of the United States with periods to matu-
rity comparable to the period between October
1, 1995, and the repayment date for the old
capital investment; and
(B) for a new capital investment, a rate
determined by the Secretary of the Treasury,
taking into consideration prevailing market
yields, during the month preceding the begin-
ning of the fiscal year in which the related
project, facility, or separable unit or feature is
placed in service, on outstanding interest-bear-
ing obligations of the United States with peri-
ods to maturity comparable to the period be-
tween the beginning of the fiscal year and the
repayment date for the new capital investment.
481
(b) NEW PRINCIPAL AMOUNTS.—(1) Effective Octo-
ber 1, 1995, an old capital investment shall have a new
principal amount that is the sum of—
(A) the present value of the old payment
amounts for the old capital investment, calculated
using a discount rate equal to the Treasury rate for
the old capital investment; and
(B) an amount equal to $100,000,000 multi-
plied by a fraction whose numerator is the principal
amount of the old payment amounts for the old cap-
ital investment and whose denominator is the sum of
the principal amounts of the old payment amounts
for all old capital investments.
(2) With the approval of the Secretary of the Treas-
ury based solely on consistency with this Act, the Adminis-
trator shall determine the new principal amounts under
paragraph (1) and the assignment of interest rates to the
new principal amounts under subsection (c).
(3) For the purposes of this section, ‘‘old payment
amounts’’ means, for an old capital investment, the annual
interest and principal that the Administrator would have
paid to the United States Treasury from October 1, 1995,
if this section were not enacted, assuming that—
(A) the principal were repaid—
482
(i) on the repayment date the Adminis-
trator assigned before October 1, 1993, to the
old capital investment, or
(ii) with respect to an old capital invest-
ment for which the Administrator has not as-
signed a repayment date before October 1,
1993, on a repayment date the Administrator
shall assign to the old capital investment in ac-
cordance with paragraph 10(d)(1) of the ver-
sion of Department of Energy Order RA
6120.2 in effect on October 1, 1993; and
(B) interest were paid—
(i) at the interest rate the Administrator
assigned before October 1, 1993, to the old cap-
ital investment, or
(ii) with respect to an old capital invest-
ment for which the Administrator has not as-
signed an interest rate before October 1, 1993,
at a rate determined by the Secretary of the
Treasury, taking into consideration prevailing
market yields, during the month preceding the
beginning of the fiscal year in which the related
project, facility, or separable unit or feature is
placed in service, on outstanding interest-bear-
ing obligations of the United States with peri-
483
ods to maturity comparable to the period be-
tween the beginning of the fiscal year and the
repayment date for the old capital investment.
(c) 
INTEREST
RATE
FOR
NEW
PRINCIPAL
AMOUNTS.—As of October 1, 1995, the unpaid balance
on the new principal amount established for an old capital
investment under subsection (b) shall bear interest annu-
ally at the Treasury rate for the old capital investment
until the earlier of the date that the new principal amount
is repaid or the repayment date for the new principal
amount.
(d) REPAYMENT DATES.—As of October 1, 1995, the
repayment date for the new principal amount established
for an old capital investment under subsection (b) shall
be no earlier than the repayment date for the old capital
investment assumed in subsection (b)(3)(A).
(e) PREPAYMENT LIMITATIONS.—During the period
October 1, 1995, through September 30, 2000, the total
new principal amounts of old capital investments, as es-
tablished under subsection (b), that the Administrator
may pay before their respective repayment dates shall not
exceed $100,000,000.
(f) INTEREST RATES FOR NEW CAPITAL INVEST-
MENTS
DURING
CONSTRUCTION.—(1) The principal
amount of a new capital investment includes interest in
484
each fiscal year of construction of the related project, facil-
ity, or separable unit or feature at a rate equal to the
one-year rate for the fiscal year on the sum of—
(A) construction expenditures that were made
from the date construction commenced through the
end of the fiscal year, and
(B) accrued interest during construction.
(2) The Administrator shall not be required to pay,
during construction of the project, facility, or separable
unit or feature, the interest calculated, accrued, and cap-
italized under paragraph (1).
(3) For the purposes of this subsection, ‘‘one-year
rate’’ for a fiscal year means a rate determined by the
Secretary of the Treasury, taking into consideration pre-
vailing market yields, during the month preceding the be-
ginning of the fiscal year, on outstanding interest-bearing
obligations of the United States with periods to maturity
of approximately one year.
(g) INTEREST RATES FOR NEW CAPITAL INVEST-
MENTS.—The unpaid balance on the principal amount of
a new capital investment bears interest at the Treasury
rate for the new capital investment from the date the re-
lated project, facility, or separable unit or feature is placed
in service until the earlier of the date the new capital in-
485
vestment is repaid or the repayment date for the new cap-
ital investment.
(h) CREDITS TO ADMINISTRATOR’S PAYMENTS TO
THE UNITED STATES TREASURY.—The Confederated
Tribe of the Colville Reservation Grand Coulee Dam Set-
tlement Act (Public Law 103–436) is amended by striking
section 6 and inserting the following:
‘‘SEC. 6. CREDITS TO ADMINISTRATOR’S PAYMENTS TO THE
UNITED STATES TREASURY.
‘‘(a) IN GENERAL.—So long as the Adminisatrator
makes annual payments to the tribes under the settlement
agreement, the Administrator shall apply against amounts
otherwise payable by the Administrator to the United
States Treasury a credit that reduces the Administrator’s
payment in the amount and for each fiscal year as follows:
$15,250,000 in fiscal year 1996; $15,860,000 in fiscal
year 1997; $16,490,000 in fiscal year 1998; $17,150,000
in fiscal year 1999; $17,840,000 in fiscal year 2000; and
$4,100,000 in each succeeding fiscal year.
‘‘(b) DEFINITIONS.—For the purposes of this sec-
tion—
‘‘(1) the term ‘settlement agreement’ means
that settlement agreement between the United
States of America and the Confederated Tribes of
the Colville Reservation signed by the Tribes on
486
April 16, 1994, and by the United States of America
on April 21, 1994, which settlement agreement re-
solves claims of the Tribes in Docket 181–D of the
Indian Claims Commission, which docket has been
transferred to the United States Court of Federal
Claims; and
‘‘(2) the term ‘Tribes’ means the Confederated
Tribes of the Colville Reservation, a Federally recog-
nized Indian Tribe.’’.
(i) CONTRACT PROVISIONS.—In each contract of the
Administrator that provides for the Administrator to sell
electric power, transmission, or related services, and that
is in effect after September 30, 1995, the Administrator
shall offer to include, or as the case may be, shall offer
to amend to include, provisions specifying that after Sep-
tember 30, 1995—
(1) the Administrator shall establish rates and
charges on the basis that—
(A) the principal amount of an old capital
investment shall be no greater than the new
principal amount established under subsection
(b);
(B) the interest rate applicable to the un-
paid balance of the new principal amount of an
old capital investment shall be no greater than
487
the interest rate established under subsection
(c);
(C) any payment of principal of an old
capital investment shall reduce the outstanding
principal balance of the old capital investment
in the amount of the payment at the time the
payment is tendered; and
(D) any payment of interest on the unpaid
balance of the new principal amount of an old
capital investment shall be a credit against the
appropriate interest account in the amount of
the payment at the time the payment is ten-
dered;
(2) apart from charges necessary to repay the
new principal amount of an old capital investment as
established under subsection (b), and to pay the in-
terest on the principal amount under subsection (c),
no amount may be charged for return to the United
States Treasury as repayment for or return on an
old capital investment, whether by way of rate, rent,
lease payment, assessment, user charge, or any other
fee;
(3) amounts provided under section 1304 of
title 31, United States Code, shall be available to
pay, and shall be the sole source for payment of, a
488
judgment against or settlement by the Administrator
or the United States on a claim for a breach of the
contract provisions required by this Act; and
(4) the contract provisions specified in this Act
shall not—
(A) preclude the Administrator from recov-
ering, through rates or other means, any tax
that is generally imposed on electric utilities in
the United States, or
(B) affect the Administrator’s authority
under applicable law, including section 7(g) of
the Pacific Northwest Electric Power Planning
and Conservation Act (16 U.S.C. 839e(g)), to—
(i) allocate costs and benefits, includ-
ing but not limited to fish and wildlife
costs, to rates or resources, or
(ii) design rates.
(j) SAVINGS PROVISIONS.—(1) This section does not
affect the obligation of the Administrator to repay the
principal associated with each capital investment, and to
pay interest on the principal, only from the ‘‘Administra-
tor’s net proceeds,’’ as defined in section 13 of the Federal
Columbia River Transmission System Act (16 U.S.C.
838k(b)).
489
(2) Except as provided in subsection (e) of this sec-
tion, this section does not affect the authority of the Ad-
ministrator to pay all or a portion of the principal amount
associated with a capital investment before the repayment
date for the principal amount.
(k) DOE STUDY.—(1) The Administrator shall un-
dertake a study to determine the effect that increases in
the rates for electric power sales made by the Adminis-
trator may have on the customer base of the Bonneville
Power Administration. Such study shall identify other
sources of electric power that may be available to cus-
tomers of the Bonneville Power Administration and shall
estimate the level at which higher rates for power sales
by the Administration may result in the loss of customers
by the Administration.
(2) The Administrator shall undertake a study to de-
termine the total prior costs incurred by the Bonneville
Power Administration for compliance with the provisions
of the Endangered Species Act of 1973 and the total fu-
ture costs anticipated to be incurred by the Administration
for compliance with such provisions.
(3) The Administrator shall submit the results of the
studies undertaken under this section to the Congress
within 180 days after the date of the enactment of this
Act.
490
PART 2—RECLAMATION
SEC. 9211. PREPAYMENT OF CERTAIN REPAYMENT CON-
TRACTS BETWEEN THE UNITED STATES AND
THE CENTRAL UTAH WATER CONSERVANCY
DISTRICT.
The second sentence of section 210 of the Central
Utah Project Completion Act (106 Stat. 4624) is amended
to read as follows: ‘‘The Secretary of the Interior shall
allow for prepayment of the repayment contract between
the United States and the Central Utah Water Conser-
vancy District dated December 28, 1965, and supple-
mented on November 26, 1985, providing for repayment
of the municipal and industrial water delivery facilities for
which repayment is provided pursuant to such contract,
under such terms and conditions as the Secretary deems
appropriate to protect the interest of the United States,
which shall be similar to the terms and conditions con-
tained in the supplemental contract that provided for the
prepayment of the Jordan Aqueduct dated October 28,
1993. The District shall exercise its right to prepayment
pursuant to this section by the end of fiscal year 2002.’’.
SEC. 9212. TREATMENT OF CITY OF FOLSOM AS A CENTRAL
VALLEY PROJECT CONTRACTOR.
For the purposes of being considered eligible to be
a transferee of Central Valley Project water to be used
for municipal and industrial purposes, the city of Folsom,
491
California, shall be treated as a Central Valley Project
contractor as of November 1, 1990.
SEC. 9213. SLY PARK.
(a) SHORT TITLE.—This section may be cited as the
‘‘Sly Park Unit Conveyance Act’’.
(b) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘El Dorado Irrigation District’’
or ‘‘District’’ means a political subdivision of the
State of California duly organized, existing, and act-
ing pursuant to the laws thereof with its principal
place of business in the city of Placerville, El Do-
rado County, California.
(2) The term ‘‘Secretary’’ means the Secretary
of the Interior.
(3) The term ‘‘Sly Park Unit’’ means the Sly
Park Dam and Reservoir, Camp Creek Diversion
Dam and Tunnel and conduits and canals as author-
ized under the American River Act of October 14,
1949 (63 Stat. 852), together with all other facilities
owned by the United States including those used to
convey and store water delivered from Sly Park, as
well as all recreation facilities associated thereto.
(c) SALE OF THE SLY PARK UNIT.—
(1) IN GENERAL.—The Secretary shall, within
one year after the date of enactment of this Act, sell
492
and convey to the El Dorado Irrigation District the
Sly Park Unit. Within such one-year period, the Sec-
retary shall also transfer and assign the water rights
relating to the Sly Park Unit held in trust by the
Secretary for diversion and storage under California
State permits numbered 2631, 5645A, 10473, and
10474 to the El Dorado Irrigation District.
(2) SALE PRICE.—The sale price shall not ex-
ceed—
(A) the construction costs ($30,926,230),
as included in the accounts of the Secretary,
plus
(B) interest on the construction costs allo-
cated to domestic use, at the authorized rate in-
cluded in enactment of the Act of October 14,
1949 (63 Stat. 852), up to an agreed upon
date, less
(C) all revenues to date as collected under
the terms of the contract between the United
States and the El Dorado Irrigation District,
estimated at $9,146,885.
(3) TERMS OF PAYMENT.—The Secretary shall
provide for a payment of the purchase price under
paragraph (2) on terms not to exceed 20 years. The
interest rate to be paid by the District shall be the
493
authorized rate included in the Act of October 14,
1949 (63 Stat. 852). Section 213(c) of the Reclama-
tion Reform Act of 1982 (43 U.S.C. 390mm(c))
shall not apply to the purchase of the Sly Park Unit
under this section.
(4) CONVEYANCE.—Upon signing the agree-
ment to carry out the sale required by this section,
the Secretary shall convey and assign to the El Do-
rado Irrigation District all right, title, and interest
of the United States in and to the Sly Park Unit.
(5) NO
ADDITIONAL
ENVIRONMENTAL
IM-
PACT.—The Congress specifically finds that (A) the
sale, conveyance and assignment of the Sly Park
Unit and water rights under this section involves the
transfer of the ownership and operation of an exist-
ing ongoing water project, (B) the Sly Park Unit op-
eration, facilities and water rights have been, and
after the sale and transfer will continue to be, com-
mitted to maximum reasonable and beneficial use for
existing services, and (C) the sale, conveyance and
assignment of the Sly Park Unit and water rights
does not involve any additional growth or expansion
of the project or other environmental impacts. Con-
sequently, the sale, conveyance and assignment of
the Sly Park Unit and water rights shall not be sub-
494
ject to environmental review pursuant to the Na-
tional Environmental Policy Act of 1969 (42 U.S.C.
4332) or endangered species review or consultation
pursuant to section 7 of the Endangered Species Act
of 1973 (16 U.S.C. 1536).
SEC. 9214. HETCH HETCHY DAM.
Section 7 of the Act of December 19, 1913 (38 Stat.
242), is amended—
(1) by striking ‘‘$30,000’’ in the first sentence
and inserting ‘‘$8,000,000’’, and
(2) by amending the second and third sentences
to read as follows: ‘‘These funds shall be placed in
a separate fund by the United States and, notwith-
standing any other provision of law, shall not be
available for obligation or expenditure until appro-
priated by the Congress. The highest priority use of
the funds shall be for annual operation of Yosemite
National Park, with the remainder of any funds to
be used to fund operations of other national parks
in the State of California.’’.
495
Subtitle C—National Parks,
Forests, and Public Lands
PART 1—CONCESSION REFORM
SEC. 9301. SHORT TITLE.
This part may be cited as the ‘‘Visitor Facilities and
Services Enhancement Act of 1995’’.
SEC. 9302. PURPOSE.
The purpose of this part is to ensure that quality visi-
tor facilities and services are provided by the Federal land
management agencies (Forest Service, United States Fish
and Wildlife Service, National Park Service, Bureau of
Land Management, Bureau of Reclamation and United
States Army Corps of Engineers). Each Federal land
management agency shall implement a program to encour-
age appropriate development and operation of services and
facilities for the accommodation of visitors. The program
implemented by each such agency shall consist of actions
which—
(1) recognize the importance of the private sec-
tor in providing a quality visitor experience on Fed-
eral lands by encouraging private sector investments
for facilities and services on Federal lands under a
fair and competitive process;
(2) establish the basis for an effective relation-
ship between the land management agencies and pri-
496
vate businesses operating on public lands and waters
in efforts to serve the public and to protect the re-
sources of these areas;
(3) measure quality and value of services pro-
vided by concessioners and provide incentives for
consistent excellence.
(4) ensure a fair return to the Federal Govern-
ment; and
(5) are consistent among the various agencies
to the extent practicable in order to increase effi-
ciency of the Federal Government and simplify re-
quirements for concessioners.
SEC. 9303. DEFINITIONS.
For the purposes of this part:
(1) The term ‘‘adjusted gross receipts’’ means
gross receipts less revenue derived from goods and
services provided on other than Federal lands or
conveyed to units of Government for hunting or fish-
ing licenses or for entrance or recreation fees, or
from such other exclusions as the Secretary con-
cerned might apply.
(2) The term ‘‘agency head’’ means the head of
an agency or his or her designated representative.
(3) The term ‘‘concessioner’’ means a person or
other entity acting under a concession authorization
497
which provides public services, facilities, or activities
on Federal lands or waters pursuant to a concession
services agreement or concession license.
(4) The term ‘‘concession license’’ means a
written contract between the agency head and the
concessioner which sets forth the terms and condi-
tions under which the concessioner is authorized to
provide recreation services or activities on a limited
basis as well as the rights and obligations of the
Federal Government.
(5) The term ‘‘concession service agreement’’
means a written contract between the agency head
and the concessioner which sets forth the terms and
conditions under which the concessioner is author-
ized to provide visitor services, facilities, or activities
as well as the rights and obligations of the Federal
Government.
(6) The term ‘‘gross receipts’’ means revenue
from goods or services provided by concession serv-
ices, facilities, or activities on Federal lands and wa-
ters.
(7) The term ‘‘performance incentive’’ means a
credit based on past performance toward the score
awarded by the Secretary to a concessioner’s pro-
498
posal submitted in response to a solicitation for the
reissuance of such contract.
(8) The term ‘‘proposal’’ means the complete
submission for a concession service agreement of-
fered in response to the solicitation for such conces-
sion service agreement.
(9) The term ‘‘prospectus’’ means a document
or documents issued by the Secretary concerned and
included with a solicitation which sets forth the min-
imum requirements for the award of a concession
service agreement.
(10) The term ‘‘Secretary concerned’’ means—
(A) the Secretary of the Interior with re-
spect to the United States Fish and Wildlife
Service, National Park Service, Bureau of Land
Management, and Bureau of Reclamation;
(B) the Secretary of Agriculture with re-
spect to the Forest Service; and
(C) the Secretary of the Army with respect
to the United States Army Corps of Engineers.
(11) The term ‘‘solicitation’’ means a request
by the Secretary concerned for proposals in response
to a prospectus.
499
SEC. 9304. NATURE AND TYPES OF CONCESSION AUTHOR-
IZATIONS.
(a) IN GENERAL.—The Secretary concerned may
enter into concession authorizations, as follows:
(1) CONCESSION
SERVICES
AGREEMENT.—A
concession service agreement shall be entered into
for all concessions where the Secretary concerned
makes a finding that the provision of concession
services is in the interest of the Federal Government
and issues either a competitive offering for conces-
sion services, facilities or activities or a noncompeti-
tive offering for such services, facilities, or activities
based on a finding that due to special circumstances
it is not in the public interest of the United States
to award a concession service agreement on a com-
petitive basis. Where the concessioner develops or
uses fixed facilities on Federal lands, the Secretary
concerned shall issue a lease.
(2) CONCESSION LICENSE.—Whenever the Sec-
retary concerned makes a finding that public enjoy-
ment of Federal lands would be enhanced through
the provision of concession services and that there
exists no need to limit the number of concessioners
providing such services, he shall consider entering
into a concession license with a qualified conces-
sioner. Activities covered under a concession license
500
would typically be one-time, intermittent, or infre-
quently scheduled. The Secretary concerned may not
limit the number of concession licenses issued for
the same types of activities in a particular geo-
graphic area. The Secretary concerned shall monitor
such concession licenses to determine whether issu-
ance of a concession service agreement would be a
more appropriate authorization.
(3) 
LANDS
UNDER
MULTIPLE
JURISDIC-
TIONS.—The Secretaries of the Departments con-
cerned shall designate an agency to be the lead
agency concerning concessions which conduct a sin-
gle operation on lands or waters under the jurisdic-
tion of more than one agency. Unless otherwise
agreed to by each such Secretary concerned, the lead
agency shall be that agency under whose jurisdiction
the concessioner generates the greatest amount of
gross receipts. The agency so designated shall issue
a single authorization and collect a single fee under
paragraphs (1) and (2) for such operation. Such au-
thorization shall provide for use in a manner consist-
ent with the plans and policies for each agency.
(b) LEASES OF AREAS TO STATES AND STATE THIRD
PARTY AGREEMENT NOT COVERED.—This part does not
apply to leases or licenses of entire areas to States or other
501
political subdivisions or to any third party agreement is-
sued by any such State or political subdivisions with re-
spect to such entire area.
SEC. 9305. COMPETITIVE SELECTION PROCESS FOR CON-
CESSION SERVICE AGREEMENTS.
(a) AWARD
TO BEST PROPOSAL.—The Secretary
shall enter into, and reissue, a concession service agree-
ment with the person whom the Secretary determines in
accordance with this section submits the best proposal
through a competitive process as defined in this section.
(b) SOLICITATION
AND
PROSPECTUS.—The Sec-
retary concerned shall prepare a solicitation and prospec-
tus which describes the concession service opportunity and
shall publish, in appropriate locations, announcements of
the availability of the solicitation, prospectus, and the con-
cession service opportunity. The solicitation shall include
(but need not be limited to) the following:
(1) A description of the services and facilities to
be provided by the concessioner.
(2) The level of capital investment required by
the concessioner (if any).
(3) Terms and conditions of the concession
service agreement.
502
(4) Minimum facilities and services to be pro-
vided by the Secretary to the concessioner and the
public.
(5) Minimum fees to the United States.
(c) FACTORS AND MINIMUM STANDARDS IN DETER-
MINING BEST PROPOSAL.—The prospectus shall assign a
weight to each factor indentified therein related to the im-
portance of such factor in the selection process. Points
shall be awarded for each such factor, based on the rel-
ative strength of the proposal concerning that factor. In
determining the best proposal, the Secretary concerned
shall take into consideration (but shall not be limited to)
the following, including whether the proposal meets the
minimum requirements (if any) of the Secretary for each
of the following:
(1) Responsiveness to the prospectus.
(2) Quality of visitor services taking into ac-
count the nature of equipment and facilities to be
provided.
(3) Experience and performance in providing
similar services. This factor shall account for not
less than 20 percent of the maximum points avail-
able under any prospectus. Where the Secretary con-
cerned determines it to be warranted to provide for
a high quality visitor experience, the prospectus for
503
a concession service agreement shall provide greater
weight to this factor based on such aspects of the
concession service agreement as scope or size, com-
plexity, nature of technical skills required, and site-
specific knowledge of the area. The similarity of the
qualifying experience outlined in the proposal to the
nature of the services required under the concession
service agreement and the length of such qualifying
experience shall be the basis for awarding points for
this factor.
(4) Record of resource protection (as appro-
priate for services and activities with potential to im-
pact natural or cultural resources).
(5) Financial capability.
(6) Fees to the United States.
(d) SELECTION PROCESS.—The process for selecting
the best proposal shall consist of the following:
(1) First, the Secretary concerned shall identify
those proposals which meet the minimum standards
(if any) for the factors identified under subsection
(c).
(2) Second, the Secretary concerned shall evalu-
ate all proposals identified under paragraph (1),
considering all factors identified under subsection
(c), as well as performance incentives earned under
504
section 9306(c) and renewal penalties incurred
under section 9306(d).
(3) Third, the Secretary concerned shall offer
the concession service agreement to the best quali-
fied applicant as determined by the evaluation under
paragraph (2).
(e) INAPPLICABILITY OF NEPA TO TEMPORARY EX-
TENSIONS AND SIMILAR REISSUANCE OF CONCESSIONS
AGREEMENTS.—The temporary extension of a concession
authorization, or reissuance of a concession authorization
to provide concession services similar in nature and
amount to concession services provided under the previous
authorization, is hereby determined to be a categorical ex-
clusion as provided for under the National Environmental
Policy Act of 1969 (42 U.S.C. 4331 et seq.).
(f) PROVISION
FOR ADDITIONAL RELATED SERV-
ICES.—The Secretary concerned may modify the conces-
sion service agreement to allow concessioners to provide
services closely related to such agreement, if the Secretary
concerned determines that such changes would enhance
the safety or enjoyment of visitors and would not unduly
restrict the award of future concession service agreements.
SEC. 9306. CONCESSIONER EVALUATIONS.
(a) IN GENERAL.—The Secretary concerned shall de-
velop a program of evaluations of the concessioners oper-
505
ating under a concession service agreement who are pro-
viding visitor services in areas under the jurisdiction of
the Secretary. The evaluations shall be on an annual basis
over the duration of the concession service agreement. In
developing the evaluation program, the Secretary con-
cerned shall seek broad public input from concessioners,
State agencies, and other interested persons. The evalua-
tion program shall—
(1) include the four program areas of: quality
of visitor services provided; resource protection (as
applicable); financial performance; and compliance
with concession service agreement provisions and
pertinent laws and regulations;
(2) define three levels of performance—
(A) good, which shall be defined as a level
of performance which exceeds the requirements
outlined in the prospectus, but which is attain-
able;
(B) satisfactory, which shall be defined as
meeting the requirements as contained in the
prospectus; and
(C) unsatisfactory, which shall be defined
as not meeting the requirements contained in
the prospectus;
(3) be based on criteria which—
506
(A) are objective, measurable, and attain-
able; and
(B) shall include as applicable general
standards for all concession operations, indus-
try-specific standards, and standards developed
by the Secretary concerned in consultation with
the concessioner for each concession service
agreement;
(4) be designed in such a manner that the an-
nual evaluation represents the overall performance of
the concessioner without undue weight to matters of
limited importance; and
(5) take into account factors beyond the control
of the concessioner, such as general market and
other economic fluctuations, as well as weather and
other natural phenomena, so that such factors may
not be used as a justification for denial of perform-
ance incentives.
(b) ANNUAL EVALUATIONS.—
(1) REQUIREMENTS.—The Secretary concerned
shall at least semiannually review the performance of
each concessioner and shall assign an overall rating
for each concessioner for each year. The procedure
for any performance evaluation shall be provided to
the concessioner prior to the beginning of any eval-
507
uation period. Such procedure shall provide for ade-
quate notification of the concessioner prior to any
on-site evaluation and permit a representative of the
concessioner to observe the evaluation. The conces-
sioner shall be entitled to a complete explanation of
any rating given. If the Secretary’s performance
evaluation for any year results in an unsatisfactory
rating of the concessioner, the Secretary concerned
shall so notify the concessioner, in writing. Such no-
tification shall identify the nature of conditions
which require corrective action and shall provide the
concessioner with a list of corrective actions nec-
essary to meet the standards.
(2) SUSPENSION, REVOCATION, AND
TERMI-
NATION
OF
AUTHORIZATION.—The Secretary con-
cerned may suspend, revoke, or terminate a conces-
sion authorization if the concessioner fails to correct
the conditions identified by the Secretary within the
limitations established by the Secretary at the time
notice of the unsatisfactory rating is provided to the
concessioner. The Secretary may immediately sus-
pend or revoke a concession authorization where nec-
essary to protect the public health or welfare.
(c) PERFORMANCE INCENTIVES.—
508
(1) In evaluating the performance of a conces-
sioner, the incumbent concessioner is entitled to a
performance incentive of—
(A) one percent of the maximum points
available under such evaluations for perform-
ance in each year in which the concessioner’s
annual performance is rated good, as specified
in subsection (a)(2)(A), and
(B) a one-time three year merit term ex-
tension upon a finding that a concessioner has
been rated as good in each annual performance
evaluation through the term of the concession
service agreement.
(2) A performance incentive awarded under
paragraph (1)(A) may not exceed 10 percent of the
maximum points available under such evaluations
over the life of the concession service agreement.
(d) RENEWAL PENALTY.—In evaluating the perform-
ance of a concessioner, a concessioner shall be penalized
one percent of the maximum points available under such
evaluation for performance in each year in which the con-
cessioner’s annual performance is found to be unsatisfac-
tory.
509
SEC. 9307. CAPITAL IMPROVEMENTS.
(a) PRIVATE SECTOR DEVELOPMENT.—It is the pol-
icy of the United States to encourage the private sector
to develop, own, and maintain to the extent possible such
public recreation facilities which would enhance public use
and enjoyment of Federal lands as are contained in ap-
proved plans developed by the Secretary concerned. Under
the terms of this part, concessioners may only construct
or finance construction under terms of section 9312 such
public facilities on Federal lands as are to be used by the
concessioner under the terms of their concession service
agreement or facilities which are necessary for the conces-
sioner to administer such public facilities on Federal
lands.
(b) INVESTMENT INTEREST.—
(1) IN GENERAL.—A concessioner, who is re-
quired or authorized under a concession service
agreement pursuant to this part to acquire or con-
struct any structure, improvement, or fixture pursu-
ant to such agreement on Federal lands shall have
an investment interest therein, to the extent pro-
vided by the agreement and this part. Such invest-
ment interest shall not be extinguished by the expi-
ration of such agreement. Such investment interest
may be assigned, transferred, encumbered or relin-
quished.
510
(2) LIMITATION.—Such investment interest
shall not be construed to include or imply any au-
thority, privilege, or right to operate or engage in
any business or other activity, and the use of any
improvement in which the concessioner has an in-
vestment interest shall be wholly subject to the ap-
plicable provisions of the concession service agree-
ment and of laws and regulations relating to the
area.
(3) FEDERAL PROPERTY.—The agreement shall
specify which new improvements required under
terms of the concession service agreement, if any,
shall become the property of the Federal Govern-
ment at the end of the agreement. No concession
service agreement shall provide for a concessioner to
obtain an investment interest in any building which
is wholly owned by the Federal Government. Title to
the land on which such structure, improvement, or
fixture is placed shall remain in the United States.
(c) SALE OF ASSETS.—If the existing concessioner is
not selected as the best qualified applicant at the time of
reissuance of a concession service agreement, the Sec-
retary concerned shall require the new concessioner to buy
the investment interest of the existing concessioner.
511
(d) CLOSURE
OF CONCESSIONER FACILITIES.—In
the event of a decision by the Secretary concerned, that
the public interest, by reason of public and safety consid-
erations or for other reasons beyond the control of the con-
cessioner, requires the discontinuation or closure of facili-
ties in which the concessioner has an investment interest,
the Secretary shall compensate the concessioner in the
amount equal to the value of the investment interest.
(e) DETERMINATION OF VALUE OF INVESTMENT IN-
TEREST.—For purposes of this part, the investment inter-
est of any capital improvement at the end of the conces-
sion service agreement period is the actual cost of con-
struction of such capital improvement adjusted from the
completion of such construction by changes in the
Consumer Price Index (selected in the same manner as
such Index is selected under section 9311(c)(2)) less de-
preciation evidenced by the condition and prospective serv-
iceability in comparison with a new unit of like kind, but
not to exceed fair market value. Such value shall be deter-
mined by appraisal and included in any prospectus.
SEC. 9308. DURATION OF CONCESSION AUTHORIZATION.
(a) CONCESSION SERVICE AGREEMENT.—The stand-
ard term of a concession service agreement shall be ten
years. The Secretary concerned may issue a concession
service agreement for less than ten years if he determines
512
(in his discretion) that the average annual gross receipts
over the life of the concession service agreement would be
less than $100,000. The Secretary concerned may not
issue a concession service agreement for less than five
years. The Secretary concerned shall issue a concession
service agreement for longer than ten years if the Sec-
retary determines (in his discretion) that such longer term
is in the public interest or necessary due to the extent
of investment and associated financing requirements and
to meet the obligations assumed. The term for a conces-
sion service agreement may not exceed 30 years.
(b) CONCESSION LICENSE.—The term for a conces-
sion license may not exceed two years.
(c) TEMPORARY EXTENSION.—The Secretary may
agree to temporary extensions of concession service agree-
ments for up to two years on a noncompetitive basis to
avoid interruption of services to the public.
SEC. 9309. RATES AND CHARGES TO THE PUBLIC.
In general, rates and charges to the public shall be
set by the concessioner. For concession service agreements
only, a concessioner’s rates and charges to the public shall
be subject to the approval of the Secretary concerned in
those instances where the Secretary determines that suffi-
cient competition for such facilities and services does not
exist within or in close proximity to the area in which the
513
concessioner operates. In those instances, the concession
service agreement shall state that the reasonableness of
the concessioner’s rates and charges to the public shall
be reviewed and approved by the Secretary concerned pri-
marily by comparison with those rates and charges for fa-
cilities and services of comparable character under similar
conditions, with due consideration for length of season,
seasonal variations, average percentage of occupancy, ac-
cessibility, availability and costs of labor and materials,
type of patronage, and other factors deemed significant
by the Secretary concerned. Such review shall be com-
pleted within 90 days of receipt of all necessary informa-
tion, or the requirement for the Secretary’s approval shall
be waived and such rates and charges as proposed by the
concessioner considered to be approved for immediate use.
SEC. 9310. TRANSFERABILITY OF CONCESSION AUTHORIZA-
TIONS.
(a) CONCESSION SERVICE AGREEMENTS.—
(1) APPROVAL REQUIRED.—A concession serv-
ice agreement is transferable or assignable only upon
the approval of the Secretary concerned, which ap-
proval may not be unreasonably withheld or delayed.
The Secretary may not approve any such transfer or
assignment if the Secretary determines that the pro-
spective concessioner is or is likely to be unable to
514
completely satisfy all of the material requirements,
terms, and conditions of the agreement or that the
terms of the transfer or assignment would preclude
providing appropriate facilities or services to the
public at reasonable rates.
(2) CONSIDERATION PERIOD.—If the Secretary
fails to approve or disapprove a transfer or assign-
ment under paragraph (1) within 90 days after the
date on which the Secretary receives all necessary
information requested by the Secretary with respect
to such transfer, the transfer or assignment shall be
deemed approved.
(3) NO MODIFICATION OF TERMS AND CONDI-
TIONS.—The terms and conditions of the concessions
service agreement shall not be subject to modifica-
tion by reason of any transfer or assignment under
this section.
(4) PERFORMANCE INCENTIVE.—Upon approval
of the sale or transfer, the prospective concessioner
shall be entitled to the benefit of performance incen-
tives earned by the previous concessioner.
(b) CONCESSION LICENSE.—A concession license
may not be transferred.
515
SEC. 9311. FEES CHARGED BY THE UNITED STATES FOR
CONCESSION AUTHORIZATIONS.
(a) IN GENERAL.—The Secretary concerned shall
charge a fee for the privilege of providing concession serv-
ices pursuant to this part. The fee for any concession serv-
ice agreement may include any of the following:
(1) An annual cash payment for the privilege of
providing concession services.
(2) The amount required for capital improve-
ments required pursuant to section 9307(a).
(3) Fees for rental or lease of Government-
owned facilities or lands occupied by the conces-
sioner.
(4) Expenditures for maintenance of or im-
provements to Government-owned facilities occupied
by the concessioner.
(b) ESTABLISHMENT OF AMOUNT.—
(1) MINIMUM
ACCEPTABLE
FEE.—The Sec-
retary concerned shall establish a minimum fee for
each applicable category specified in paragraphs (1)
through (4) of subsection (a) which is acceptable to
the Secretary under this section and shall include
the minimum fee in the prospectus under section
9305. This fee shall be based on historical data,
where available, as well as industry-specific and
516
other market data available to the Secretary con-
cerned.
(2) FINAL FEE.—Except as provided by para-
graph (3), the final fee shall be the amount bid by
the selected applicant under section 9305.
(3) SUBSTANTIALLY
SIMILAR
SERVICES
IN
A
SPECIFIC GEOGRAPHIC AREA.—Where the Secretary
concerned simultaneously offers authorizations for
more than one river runner, outfitter, or guide con-
cession operation to provide substantially similar
services in a defined geographic area, the concession
fee for all such concessioners shall be specified by
the Secretary concerned in the prospectus. The Sec-
retary concerned shall base the fee on historical
data, where available, as well as on industry-specific
and other market data available to the Secretary
concerned or may establish a charge per user day.
(c) ADJUSTMENT OF FEES.—
(1) IN GENERAL.—The amount of any fee for
the term of the concession service agreement shall be
set at the beginning of the concession authorization
and may only be modified on the basis of inflation,
if the annual payment is not determined by a per-
centage of adjusted gross receipts (as measured by
changes in the Consumer Price Index), to reflect
517
substantial changes from the conditions specified in
the prospectus, or in the event of an unforeseen dis-
aster.
(2) CPI.—For the purposes of adjustments for
inflation under paragraph (1), the Federal agencies
shall select a Consumer Price Index published by the
Bureau of Labor Statistics and shall use such index
in a consistent manner.
(d) CONCESSION LICENSE FEE.—The fee for a con-
cession license shall at least cover the program administra-
tive costs and may not be changed over the term of the
license.
SEC. 9312. DISPOSITION OF FEES.
(a) CONCESSION IMPROVEMENT ACCOUNT.—
(1) IN
GENERAL.—The Secretary concerned
shall, whenever the concession service agreement re-
quires or authorizes the concessioner to make capital
improvements or occupy Government-owned facili-
ties, require the concessioner to establish a conces-
sion improvement account. The concessioner shall
deposit into this account—
(A) all funds for capital improvements as
specified in the concession service agreement;
518
(B) all funds for maintenance of or im-
provements to Government-owned facilities oc-
cupied by the concessioner; and
(C) all amounts received from the Sec-
retary concerned pursuant to subsection (b).
(2) TERMS
AND
CONDITIONS.—The account
shall be maintained by the concessioner in an inter-
est bearing account in a Federally insured financial
institution. The concessioner shall maintain the ac-
count separately from any other funds or accounts
and shall not commingle the monies in the account
with any other moneys. The Secretary concerned
may establish such other terms, conditions, or re-
quirements as the Secretary determines to be nec-
essary to ensure the financial integrity of the ac-
count.
(3) DISBURSEMENTS.—The concessioner shall
make disbursements from the account for improve-
ments and other activities, only as specified in the
concession 
service 
agreement 
and 
subsection
(b)(2)(C).
(4) RECORDS.—The concessioner shall maintain
proper records for all disbursements made from the
account. Such records shall include (but not be lim-
ited to) invoices, bank statements, canceled checks,
519
and such other information as the Secretary con-
cerned determines to be necessary.
(5) ANNUAL
FINANCIAL
STATEMENT.—The
concessioner shall annually submit to the Secretary
concerned a statement reflecting total activity in the
account for the preceding financial year. The state-
ment shall reflect monthly deposits, expenditures by
project, interest earned, and such other information
as the Secretary concerned requires.
(6) TRANSFER
OF
REMAINING
BALANCE.—
Upon the termination of a concession authorization,
or upon the transfer of a concession service agree-
ment, any remaining balance in the account shall be
transferred by the concessioner to the successor con-
cessioner, to be used solely as set forth in this sub-
section. In the event there is no successor conces-
sioner, the account balance shall be deposited in the
Treasury as miscellaneous receipts.
(b) AMOUNTS RECEIVED RELATING TO PRIVILEGE
OF PROVIDING CONCESSION SERVICES AND RENTAL OF
GOVERNMENT-OWNED FACILITIES.—
(1) DEPOSIT INTO TREASURY.—The Secretary
concerned shall deposit into the Treasury of the
United States as miscellaneous receipts amounts re-
ceived for a fiscal year for the privilege of providing
520
concession services and the rental of Government-
owned facilities up to the amount specified in the
table in paragraph (3) for the National Park Service
for that fiscal year. For the other agencies covered
under this part, the Secretary concerned shall de-
velop a schedule of anticipated receipts to be depos-
ited to the Treasury and submit such schedule to the
appropriate Congressional committees within 18
months of the date of enactment of this Act. Noth-
ing in this part shall be construed to modify any
provision of law relating to sharing of Federal re-
ceipts with any other level of Government.
(2) DEPOSIT INTO CONCESSION IMPROVEMENT
ACCOUNTS.—(A) Amounts received by the Secretary
concerned for a fiscal year for the privilege of pro-
viding concession services and the use of Govern-
ment-owned facilities which exceed the amount speci-
fied in the table in paragraph (3) for that fiscal year
shall be available for deposit in the succeeding fiscal
year into concession improvement accounts.
(B) Of the amounts available for deposit into
concession improvement accounts, the Secretary
shall make available to each concessioner a percent-
age of such excess amounts which bears the same
ratio as the amount paid by the concessioner to the
521
Secretary concerned for a fiscal year for the privi-
lege of providing concession services and the use of
Government-owned facilities bears to the total
amount paid to the Secretary concerned by all con-
cessioners for that fiscal year for such privilege on
an agency-wide basis.
(C) Amounts made available to a concessioner
under this paragraph may be used only for expendi-
tures on visitor services and facilities at the area at
which the funds were generated.
(3) DEPOSIT INTO CONCESSION IMPROVEMENT
ACCOUNTS.—The table referred to in paragraph (2),
expressed by fiscal year on an agency basis, is as fol-
lows:
National Park Service
Fiscal year:
Amount:
1997 ...................................................................
$15,800,000
1998 ...................................................................
$21,100,000
1999 ...................................................................
$26,700,000
2000 ...................................................................
$32,300,000
2001 ...................................................................
$38,200,000
2002 ...................................................................
$44,400,000.
(c) AUDIT REQUIREMENT.—Beginning with fiscal
year 1998, the Inspector General of the Department con-
cerned shall conduct a biennial audit of concession fees
generated pursuant to this part. The Inspector General
shall make a determination as to whether concession fees
are being collected and expended in accordance with this
part and shall submit copies of each audit to the Commit-
522
tee on Resources of the House of Representatives and the
Committee on Energy and Natural Resources of the Sen-
ate.
SEC. 9313. DISPUTE RESOLUTION.
(a) BOARD OF CONTRACT APPEALS.—The Board of
Contract Appeals within each Department shall adjudicate
disputes between the Federal Government and conces-
sioners arising under this part, including disputes regard-
ing the revocation, suspension, or termination of a conces-
sion authorization, transfers of concession service agree-
ments, and performance evaluations of concessions. Such
disputes shall be subject to the Contract Disputes Act of
1978 (41 U.S.C. 601 et seq.). The expiration of a conces-
sion authorization shall not be subject to appeal to the
Board.
(b) ADMINISTRATIVE REVIEW.—Appeals of decisions
may be taken to the Board of Contract Appeals after one
level of review of decisions made within an agency.
(c) EXPEDITED PROCEDURE.—Appeals of decisions
to suspend, revoke, or terminate a concession authoriza-
tion shall be considered under an expedited procedure, as
provided by the Secretary concerned by regulation.
(d) JUDICIAL REVIEW.—
(1) IN GENERAL.—A person may seek judicial
review of decisions made by the Board. Such review
523
shall be conducted by the court with jurisdiction on
a de novo basis.
(2) CONCESSION SERVICE AGREEMENTS.—Judi-
cial review of decisions rendered by the Board re-
garding concession service agreements shall be to the
United States Court of Federal Claims in accord-
ance with section 1491 of title 28, United States
Code (commonly referred to as the ‘‘Tucker Act’’).
(3) CONCESSION LICENSES.—Judicial review of
decisions rendered by the Board regarding conces-
sion licenses shall be to the appropriate Federal Dis-
trict Court.
(d) INAPPLICABILITY
OF CERTAIN PROVISIONS.—
Disputes arising under this part shall not be subject to
the jurisdiction of the General Accounting Office to review
bid protests under the Competition in Contracting Act of
1984.
SEC. 9314. RECORDKEEPING.
(a) MAINTENANCE AND ACCESS.—Each concessioner
shall keep such records as the Secretary concerned may
prescribe to enable the Secretary to determine that all
terms of the concession authorization have been and are
being faithfully performed, and the Secretary and his duly
authorized representatives shall, for the purpose of audit
and examination, have access at reasonable times and lo-
524
cations to such records and to other books, documents,
and papers of the concessioner pertinent to the concession
authorization and all the terms and conditions thereof.
(b) ACCESS
BY
COMPTROLLER
GENERAL.—The
Comptroller General of the United States or any of his
duly authorized representatives shall, until the expiration
of five calendar years after the close of the business year
of each concessioner have access to and the right to exam-
ine any pertinent books, documents, papers, and records
of the concessioner related to the concession authorization
involved.
SEC. 9315. APPLICATION OF GENERAL GOVERNMENTAL AC-
QUISITION REQUIREMENTS.
The following laws and regulations shall not apply to
concession service agreements and concession licenses
under this part:
(1) Title III of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 251–
266).
(2) The Office of Federal Procurement Policy
Act (41 U.S.C. 401 et seq.).
(3) The Federal Acquisition Streamlining Act
of 1994 (Public Law 103–355).
(4) The Brooks Automatic Data Processing Act
(40 U.S.C. 759).
525
(5) Chapters 137 and 141 of title 10, United
States Code.
(6) The Federal Acquisition Regulation and any
laws not listed in paragraphs (1) through (5) provid-
ing authority to promulgate regulations in the Fed-
eral Acquisition Regulation.
(7) The Act of June 20, 1936 (20 U.S.C. 107;
commonly referred to as the ‘‘Randolph-Sheppard
Act’’) and the Service Contract Act of 1965 (41
U.S.C. 351 et seq.).
SEC. 9316. RULES OF CONSTRUCTION.
Concession programs of an agency on Federal lands
and waters subject to this part shall be fully consistent
with the agency’s mission and laws applicable to the agen-
cy. Nothing in this part shall be construed as limiting or
restricting any right, title, or interest of the United States
in any land or resources.
SEC. 9317. REGULATIONS.
(a) IN GENERAL.—Pursuant to enactment of this
part, no new concession authorization may be issued, nor
may any existing concession authorization remain in effect
after two years after the date of the enactment of this
Act, unless regulations fully implementing this part are
in effect. During such two-year period, the Secretary may
only extend an existing concession authorization for a pe-
526
riod ending at the end of such two-year period. Such ex-
tensions shall be made in accordance with the applicable
provisions of law specified in section 9318, as such provi-
sions were in effect on the day before the date of the en-
actment of this Act. The Secretary of the Interior, Sec-
retary of Agriculture, and Secretary of the Army shall de-
velop a single set of regulations which specify a uniform
set of recordkeeping requirements for all concessioners
with respect to implementation of this part.
(b) QUALIFICATIONS OF AGENCY PERSONNEL AS-
SIGNED CONCESSION MANAGEMENT DUTIES.—The Sec-
retary, by regulation under subsection (a) and taking into
account the provisions of this part, shall specify the mini-
mum training and qualifications required for agency per-
sonnel assigned predominantly to concession management
duties, including (but not limited to) competency in busi-
ness management, public health and safety, and the deliv-
ery of quality customer services.
SEC. 9318. RELATIONSHIP TO OTHER EXISTING LAWS.
(a) REPEALS.—
(1) The Act entitled ‘‘An Act relating to the es-
tablishment of concession policies in the areas ad-
ministered by the National Park Service and for
other purposes’’ (16 U.S.C. 20–20g) approved Octo-
ber 9, 1965, is repealed.
527
(2) The last paragraph under the heading
‘‘FOREST SERVICE’’ in the Act of March 4, 1915 (38
Stat. 1101), as amended by the Act of July 28,
1956 (chap. 771; 70 Stat. 708) (16 U.S.C. 497), is
repealed.
(3) Section 7 of the Act of April 24, 1950 (16
U.S.C. 580d) is repealed.
(b) SUPERSEDED PROVISIONS.—The provisions of
this part shall supersede the provisions of the following
Acts as they pertain to concessions management:
(1) The Federal Land Policy and Management
Act of 1976 (Oct. 21, 1976).
(2) Public Law 87–714 (16 U.S.C. 460k et
seq.; commonly known as the ‘‘Refuge Recreation
Act’’).
(3) The National Wildlife Refuge System Ad-
ministration Act of 1966 (16 U.S.C. 668dd).
(c) CONFORMING AMENDMENT.—The fourth sen-
tence of section 3 of the Act of August 25, 1916 (16
U.S.C. 3; 39 Stat. 535), is amended by striking all
through ‘‘no natural’’ and inserting in lieu thereof ‘‘No
natural’’.
(d) MODIFIED PROVISIONS.—The second sentence of
section 4 of the Act entitled ‘‘An Act authorizing the con-
struction of certain public works on rivers and harbors for
528
flood control, and for other purposes’’ (16 U.S.C. 460d)
is amended by inserting ‘‘, except for commercial conces-
sions purposes’’ the first place it appears after ‘‘public in-
terest’’.
(e) SAVINGS.—
(1) IN GENERAL.—The repeal of any provision,
the superseding of any provision, and the amend-
ment of any provision, of an Act referred to in sub-
sections (a), (b), or (c) shall not affect the validity
of any authorizations entered into under any such
Act. The provisions of this part shall apply to any
such authorizations, except to the extent such provi-
sions are inconsistent with the express terms and
conditions of such authorizations.
(2) RIGHT OF RENEWAL.—The right of renewal
explicitly provided for by any concession contract
under any such provision shall be preserved for a
single renewal of a contract following the enactment
of, or concession authorization under, this part.
(3) VALUE
OF
CAPITAL
IMPROVEMENTS
OR
POSSESSORY INTEREST.—Nothing in this part shall
be construed to change the value of existing capital
improvements or possessory interest as identified in
concession contracts entered into before the enact-
ment of this Act.
529
(4) ANILCA.—Nothing in this part shall be
construed to amend, supersede or otherwise affect
any provision of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3101 et seq.) relating
to revenue-producing visitor services.
(5) SKI AREA PERMITS.—No provision of this
part shall apply to any ski area permittee operating
on lands administered by the Forest Service.
(6) PROCEDURES FOR CONSIDERING EXISTING
CONCESSIONERS IN REISSUANCE OF CONTRACTS.—
In the case of any concession contract which has ex-
pired prior to the date of the enactment of this Act,
or within five years after the date of the enactment
of this Act, the incumbent concessioner shall be enti-
tled to a one-time bonus of five percent of the maxi-
mum points available in the reissuance of a previous
concession authorization. For any concession con-
tract entered into prior to the date of enactment of
this Act, which is projected to terminate five years
or later after the enactment of this Act, any conces-
sioner shall be entitled to a performance incentive as
outlined in this part. The concessioner shall be enti-
tled to an evaluation for the purposes of section
9306 of good for each year in which the Secretary
530
concerned does not complete an evaluation as pro-
vided for in this part.
PART 2—NATIONAL FOREST SKI AREAS
SEC. 9321. PRIVATIZATION OF FOREST SERVICE SKI AREAS.
(a) AUTHORIZATION TO SELL.—
(1) IN
GENERAL.—Not later than five years
after the date of enactment of this part, the Sec-
retary of Agriculture shall offer to sell not less than
40 ski areas to the qualifying ski area operator. Any
such sale shall provide for continuation of public ac-
cess for diverse recreational uses. The Secretary
shall offer such areas for sale only after consultation
with State and local governments. Any such sale
shall be at fair market value and, subject to valid ex-
isting rights, shall transfer all right, title, and inter-
est of the United States in and to the lands. In any
such sale, the Secretary shall establish the minimum
acceptable bid based on the appraised fair market
value of such lands.
(2) QUALIFYING LANDS.—For the purposes of
subsection (a), lands are qualifying concession lands
if such lands are—
(A) subject to a lease on the date of the
enactment of this Act for use as a ski area with
531
improvements with a fair market value greater
than $2,000,000; and
(B) located either adjacent to the boundary
of the Federal lands or adjacent to other sig-
nificant private inholdings.
(b) APPRAISAL.—
(1) IN GENERAL.—The Secretary shall provide
for an independent appraisal of the lands and inter-
ests therein to be transferred pursuant to subsection
(a). The appraiser shall—
(A) utilize nationally recognized appraisal
standards, including to the extent appropriate
the uniform appraisal standards for Federal
land acquisition; and
(B) not include the value of any improve-
ment placed on the lands by the concessioner.
(2) APPRAISAL REPORT.—The appraiser shall
submit a detailed report to the Secretary.
(c) ADDITIONAL LANDS.—In addition to the national
forest ski area, the Secretary may transfer by sale or ex-
change additional National Forest System lands for the
purpose of adding such lands to and operating them as
part of a ski area sold under subsection (a). The transfer
of additional lands under this subsection shall be in ac-
532
cordance with this part and the laws generally applicable
to the National Forest System.
(d) USE OF PROCEEDS BY THE APPROPRIATE SEC-
RETARY.—The Secretary may retain 50 percent of the
funds generated through sales under this section to ac-
quire other high priority lands identified for acquisition
in any forest land and resource management plan. The
remaining 50 percent of such amount shall be deposited
in the Treasury as miscellaneous receipts.
SEC. 9322. 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.—
‘‘(1) IN
GENERAL.—Except as provided by
paragraph (2), after the date of the enactment of
this section, the fee for all ski area permits on Na-
tional Forest System lands shall be calculated,
charged, and paid only as set forth in subsection (b).
‘‘(2) EXCEPTION.—Paragraph (1) does not
apply to any ski area where the existing permit in
effect on the date of enactment of this section speci-
533
fies a different method to calculate the fee. In any
such situation the terms of such permit shall prevail,
unless the permit holder notifies the Forest Service
that the permit holder agrees to adopt the method
of fee calculation specified in this section. The For-
est Service should encourage such permit holders to
consider adopting the new method of fee calculation
in order to reduce its administrative costs.
‘‘(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 to be
charged a ski area permittee by first determining
the permittee’s adjusted gross revenue to be subject
to the permit fee. The permittee’s adjusted gross
revenue 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,
with such total multiplied by the permittee’s
slope transport feet percentage on National
Forest System lands.
‘‘(B) The permittee’s gross revenues from
nordic ski use pass sales and nordic ski school
operations, with such total multiplied by the
534
permittee’s percentage of nordic trails on Na-
tional Forest System lands.
‘‘(C) The permittee’s gross revenues from
ancillary facilities physically located on National
Forest System lands, including all permittee or
subpermittee lodging, food service, rental shops,
parking, and other ancillary operations.
‘‘(2) DETERMINATION
OF
SKI
AREA
PERMIT
FEE.—The Secretary shall determine the ski area
permit fee to be charged a ski area permittee by
multiplying adjusted gross revenue determined under
paragraph (1) for the permittee by the following per-
centages 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.
‘‘(3) SLOPE TRANSPORT FEET PERCENTAGE.—
In cases where ski areas are only partially located on
National Forest System lands, the slope transport
535
feet percentage on national forest land referred to in
paragraph (1) shall be calculated as generally de-
scribed in the Forest Service Manual in effect as of
January 1, 1992.
‘‘(4) 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 (2) by the percent increase or de-
crease in the national Consumer Price Index for the
preceding calendar year.
‘‘(c) MINIMUM FEE.—In cases where an area of Na-
tional 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 fee of $2 for each acre of
National Forest System land under permit. Rental fees
imposed under this subsection shall be paid at the time
specified in subsection (d).
‘‘(d) TIME FOR PAYMENT.—The fee set forth in sub-
section (b) shall be due on June 1 of each year and shall
be paid or prepaid by the permittee on a monthly, quar-
536
terly, annual, or other schedule as determined appropriate
by the Secretary in consultation with the permittee. It is
the intention of Congress that unless mutually agreed oth-
erwise by the Secretary and the permittee, the payment
or prepayment schedule shall conform to the permittee’s
schedule in effect prior to the enactment of this section.
To simplify bookkeeping and fee calculation burdens on
the permittee and the Forest Service, the Secretary shall
each year provide the permittee with a standardized form
and worksheets (including annual fee calculations brackets
and rates) to be utilized for fee calculation and submitted
with the fee payment. Information provided on such forms
shall be compiled by the Secretary annually and kept in
the Office of the Chief, United States Forest Service.
‘‘(e) 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’ mean actual income from sales. Such terms do
not include sales of operating equipment, refunds, rent
paid to the permittee by sublessees, sponsor contributions
to special events or any amounts attributable to employee
gratuities, discounts, complimentary lift tickets, or other
goods or services (except for bartered goods) for which the
permittee does not receive money.
537
‘‘(f) EFFECTIVE DATE FOR FEES.—The ski area per-
mit fees as provided under this section shall become effec-
tive on July 1, 1996, and cover receipts retroactive to July
1, 1995. If a ski area permittee has paid fees for the 12-
month period ending on June 30, 1996, 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.
‘‘(g) REPORT ON FAIR MARKET VALUE.—No later
than five years after the date of enactment of this section
and every 10 years thereafter, the Secretary shall submit
to the Committee on Energy and Natural Resources of
the United States Senate and the Committees of Agri-
culture and Resources of the United States House of Rep-
resentatives a report analyzing whether the ski area per-
mit fee system legislated by this section is returning a fair
market value rental to the United States together with any
recommendations the Secretary may have for modifica-
tions in the system.
‘‘(h) TRANSITION PERIOD.—Where the new fee pro-
vided for in this section results in an increase in permit
fee greater than one percent of the permittee’s adjusted
gross revenue (as defined in subsection (b)(1)), the new
538
fee shall be phased in over a three year period in a manner
providing for increases of approximately equal increments.
‘‘(i) APPLICABILITY OF NEPA TO REISSUANCE OF
SKI AREA PERMITS.—The reissuance of a ski area permit
to provide activities similar in nature and amount to the
activities provided under the previous permit is hereby de-
termined to be a categorical exclusion as provided for
under the National Environmental Policy Act of 1969 (42
U.S.C. 4331 et seq.).
‘‘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. Such with-
drawal 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 ex-
piration or other termination of the permit unless, at the
request of the Secretary of Agriculture, the Secretary of
539
the Interior determines to continue the withdrawal. Upon
cancellation of the withdrawal, the land shall be automati-
cally restored to all appropriation not otherwise restricted
under the public land laws.’’.
PART 3—DOMESTIC LIVESTOCK GRAZING
SEC. 9331. APPLICABLE REGULATIONS.
(a) BLM LANDS.—Except as otherwise provided by
this part, grazing of domestic livestock on lands adminis-
tered by the Bureau of Land Management shall be in ac-
cordance with part 1780 and part 4100 of title 43, Code
of Federal Regulations, as in effect on January 1, 1995.
(b) FOREST SERVICE LANDS.—Except as otherwise
provided by this part, grazing of domestic livestock on
lands administered by the Forest Service shall, to the ex-
tent possible, be in accordance with regulations, which the
Secretary of Agriculture shall promulgate, which are sub-
stantially similar to the regulations referred to in sub-
section (a). Regulations promulgated under this sub-
section may differ from the regulations referred to in sub-
section (a) to the extent necessary to conform to the laws
governing the National Forest System (other than this
part).
(c) FEDERAL LANDS.—For the purposes of this part,
the term ‘‘Federal lands’’ means lands administered by
540
the Bureau of Land Management and lands administered
by the Forest Service.
SEC. 9332. FEES AND CHARGES.
(a) BASIC FEE.—The basic fee for each animal unit
month in a grazing fee year to be determined by the Bu-
reau of Land Management and the Forest Service shall
be equal to the 3-year average of the total gross value of
production for beef cattle, as compiled by the Economic
Research Service of the Department of Agriculture in ac-
cordance with subsection (b) on the basis of economic data
published by the Service in the Economic Indicators of the
Farm Sector: Cost of Production—Major Field Crops &
Livestock and Dairy for the 3 years preceding the grazing
fee year, multiplied by the 10 year average of the United
States Treasury Securities 6-month bill ‘‘new issue’’ rate
and divided by 12.
(b) CRITERIA.—The Economic Research Service of
the Department of Agriculture shall continue to compile
the gross production value of production of beef cattle as
reported in a dollar per bred cow basis in the ‘‘U.S. Cow-
Calf Production Cash Costs and Returns’’.
(c) SURCHARGE.—
(1) IN GENERAL.—A surcharge shall be added
to the grazing fee billings for authorized grazing of
541
livestock owned by persons other than the permittee
or lessee except where—
(A) such use is made by livestock owned by
a spouse, child, or grandchild or their respective
spouse of the permittee and lessee; or
(B) the permittee or lessee is unable to
make full grazing use, as authorized by a graz-
ing permit or lease, due to the infirmed condi-
tion or death of the permittee or lessee.
(2) TREATMENT
AS
ADDITIONAL
FEE.—The
surcharge shall be over and above any other fees
that may be charged for using public land forage.
(3) PRIOR
PAYMENT
REQUIRED.—Surcharges
shall be paid prior to grazing use.
(4) AMOUNT.—The surcharge for authorized
pasturing of livestock owned by persons other than
the permittee or lessee shall be equal to 25 percent
of the difference between the current year’s Federal
grazing fee and the prior year’s private grazing land
lease rate per AUM for the appropriate State as
compiled by the National Agricultural Statistics
Service.
(5) IN GENERAL.—The Bureau of Land Man-
agement and the Forest Service shall make a deter-
mination under subsection (a) based on the following
542
information gathered by the National Agriculture
Statistics Service of the Department of Agriculture
with respect to the largest single grazing lease of
each grazing operator (in terms of dollars):
(A) Whether the operator charged—
(i) per acre;
(ii) per head per month;
(iii) per pound of gain;
(iv) per hundredweight of gain; or
(v) by another measure, and the rate
charged.
(B)(i) The estimated average pounds
gained per season for the grazing lease.
(ii) The total dollar amount estimated to
be realized from the grazing lease.
(iii) Grazing lease acreage.
(iv) The State and county where the graz-
ing lease is located.
(C) The classes of livestock grazed.
(D) The term of the grazing lease.
(E)(i) Whether grazing lease payments are
paid if no grazing occurred.
(ii) Whether the grazing lease contains a
take or pay provision.