San Juan County Settlement Implementation Act of 2016

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``San Juan County Settlement 
Implementation Act of 2016''.

SEC. 2. EXCHANGE OF COAL PREFERENCE RIGHT LEASE APPLICATIONS.

    (a) Definitions.--In this section:
            (1) Bidding right.--The term ``bidding right'' means an 
        appropriate legal instrument or other written documentation, 
        including an entry in an account managed by the Secretary, 
        issued or created under subpart 3435 of title 43, Code of 
        Federal Regulations, that may be used--
                    (A) in lieu of a monetary payment for a bonus bid 
                for a coal lease sale under the Mineral Leasing Act (30 
                U.S.C. 181 et seq.); or
                    (B) as a monetary credit against any rental or 
                royalty payments due under any Federal coal lease.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
    (b) Authorization.--The Secretary may retire any coal preference 
right lease application for which the Secretary has made an affirmative 
commercial quantities determination--
            (1) by issuing bidding rights in exchange for 
        relinquishment of the coal preference right lease application; 
        and
            (2) notwithstanding any other provision of law, by making a 
        payment to the relevant State in an amount equal to 50 percent 
        of the dollar amount of any bidding right subsequently used in 
        lieu of any monetary payment of a bonus in a coal lease sale or 
        of rental or royalty under a Federal coal lease.
    (c) Source of Payments.--The Secretary shall make payments under 
subsection (b) from amounts that would otherwise be deposited in the 
Treasury as miscellaneous receipts under section 35(a) of the Mineral 
Leasing Act (30 U.S.C. 191(a)).
    (d) Treatment of Payments.--A payment to a State under this section 
shall be treated as a payment under section 35(a) of the Mineral 
Leasing Act (30 U.S.C. 191(a)).
    (e) Transferability; Limitation.--
            (1) Transferability.--A bidding right issued under this 
        section shall be fully transferable to any other person.
            (2) Notification of secretary.--A person who transfers a 
        bidding right shall notify the Secretary of the transfer by any 
        method determined to be appropriate by the Secretary.
            (3) Effective period.--
                    (A) In general.--A bidding right issued under this 
                section shall terminate on the expiration of the 5-year 
                period beginning on the date the bidding right is 
                issued.
                    (B) Tolling of period.--The 5-year period described 
                in subparagraph (A) shall be tolled during any period 
                in which exercise of the bidding right is precluded by 
                temporary injunctive relief granted under, or 
                administrative, legislative, or judicial suspension of, 
                the Federal coal leasing program.

SEC. 3. CERTAIN LAND SELECTIONS OF THE NAVAJO NATION.

    (a) Cancellation of Certain Selections.--The land selections made 
by the Navajo Nation pursuant to Public Law 93-531 (commonly known as 
the ``Navajo-Hopi Land Settlement Act of 1974'') (25 U.S.C. 640d et 
seq.) that are depicted on the map entitled ``Navajo-Hopi Land 
Settlement Act Selected Lands'' and dated April 2, 2015, are canceled.
    (b) Authorization for New Selection.--
            (1) In general.--Subject to paragraphs (2) and (3), the 
        Navajo Nation may make new land selections in accordance with 
        the Act referred to in subsection (a) to replace the land 
        selections canceled under that subsection.
            (2) Exclusions.--The following land shall not be eligible 
        for selection under paragraph (1):
                    (A) Land within a unit of the National Landscape 
                Conservation System.
                    (B) Land within--
                            (i) the Glade Run Recreation Area;
                            (ii) the Fossil Forest Research Natural 
                        Area;
                            (iii) the North Road Area of Critical 
                        Environmental Concern;
                            (iv) the Pierre's Site Area of Critical 
                        Environmental Concern; or
                            (v) the Ah-shi-sle-pah Road Area of 
                        Critical Environmental Concern.
                    (C) Any land subject to a lease or contract under 
                the Mineral Leasing Act (30 U.S.C. 181 et seq.) or the 
                Act of July 31, 1947 (commonly known as the ``Materials 
                Act of 1947'') (30 U.S.C. 601 et seq.), as of the date 
                of the selection.
            (3) Equal value.--
                    (A) In general.--Notwithstanding the acreage 
                limitation in the second proviso of section 11(c) of 
                Public Law 93-531 (commonly known as the ``Navajo-Hopi 
                Land Settlement Act of 1974'') (25 U.S.C. 640d-10(c)), 
                the value of the land selected under paragraph (1) and 
                the land subject to selections cancellation under 
                subsection (a) shall be equal, based on appraisals 
                conducted under subparagraph (B).
                    (B) Appraisal.--The value of the land selected 
                under paragraph (1) and the land subject to selections 
                canceled under subsection (a) shall be determined by an 
                appraisal conducted in accordance with--
                            (i) the Uniform Appraisal Standards for 
                        Federal Land Acquisitions; and
                            (ii) the Uniform Standards of Professional 
                        Appraisal Practice.
            (4) Withdrawal.--Any land selected by the Navajo Nation 
        under paragraph (1) shall be withdrawn from disposal, leasing, 
        and development until the date on which the selected land is 
        placed into trust for the Navajo Nation.
    (c) Boundary.--For purposes of this section and the Act referred to 
in subsection (a), the present boundary of the Navajo Reservation is 
depicted on the map entitled ``Navajo Nation Boundary'' and dated 
November 16, 2015.

SEC. 4. DESIGNATION OF AH-SHI-SLE-PAH WILDERNESS.

    (a) In General.--In accordance with the Wilderness Act (16 U.S.C. 
1131 et seq.), the approximately 7,242 acres of land as generally 
depicted on the map entitled ``San Juan County Wilderness 
Designations'' and dated April 2, 2015, is designated as wilderness and 
as a component of the National Wilderness Preservation System, which 
shall be known as the ``Ah-shi-sle-pah Wilderness'' (referred to in 
this section as the ``Wilderness'').
    (b) Management.--
            (1) In general.--Subject to valid existing rights, the 
        Wilderness shall be administered by the Director of the Bureau 
        of Land Management in accordance with this section and the 
        Wilderness Act (16 U.S.C. 1131 et seq.), except that any 
        reference in that Act to the effective date of that Act shall 
        be considered to be a reference to the date of enactment of 
        this Act.
            (2) Adjacent management.--
                    (A) In general.--Congress does not intend for the 
                designation of the Wilderness to create a protective 
                perimeter or buffer zone around the Wilderness.
                    (B) Nonwilderness activities.--The fact that 
                nonwilderness activities or uses can be seen or heard 
                from areas within the Wilderness shall not preclude the 
                conduct of the activities or uses outside the boundary 
                of the Wilderness.
            (3) Incorporation of acquired land and interests in land.--
        Any land or interest in land that is within the boundary of the 
        Wilderness that is acquired by the United States shall--
                    (A) become part of the Wilderness; and
                    (B) be managed in accordance with--
                            (i) the Wilderness Act (16 U.S.C. 1131 et 
                        seq.);
                            (ii) this section; and
                            (iii) any other applicable laws.
            (4) Grazing.--Grazing of livestock in the Wilderness, where 
        established before the date of enactment of this Act, shall be 
        allowed to continue in accordance with--
                    (A) section 4(d)(4) of the Wilderness Act (16 
                U.S.C. 1133(d)(4)); and
                    (B) the guidelines set forth in the report of the 
                Committee on Interior and Insular Affairs of the House 
                of Representatives accompanying H.R. 5487 of the 96th 
                Congress (H. Rept. 96-617).
    (c) Release of Wilderness Study Areas.--Congress finds that, for 
the purposes of section 603(c) of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1782(c)), the land within the Ah-shi-
sle-pah Wilderness Study Area not designated as wilderness by this 
section has been adequately studied for wilderness designation and is 
no longer subject to section 603(c) of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1782(c)).

SEC. 5. EXPANSION OF BISTI/DE-NA-ZIN WILDERNESS.

    (a) In General.--There is designated as wilderness and as a 
component of the National Wilderness Preservation System certain 
Federal land comprising approximately 2,250 acres, as generally 
depicted on the map entitled ``San Juan County Wilderness 
Designations'' and dated April 2, 2015, which is incorporated in and 
shall be considered to be a part of the Bisti/De-Na-Zin Wilderness.
    (b) Administration.--Subject to valid existing rights, the land 
designated as wilderness by subsection (a) shall be administered by the 
Director of the Bureau of Land Management (referred to in this section 
as the ``Director''), in accordance with--
            (1) the Wilderness Act (16 U.S.C. 1131 et seq.), except 
        that any reference in that Act to the effective date of that 
        Act shall be considered to be a reference to the date of 
        enactment of this Act; and
            (2) the San Juan Basin Wilderness Protection Act of 1984 
        (Public Law 98-603; 98 Stat. 3155; 110 Stat. 4211).
    (c) Adjacent Management.--
            (1) In general.--Congress does not intend for the 
        designation of the land as wilderness by subsection (a) to 
        create a protective perimeter or buffer zone around that land.
            (2) Nonwilderness activities.--The fact that nonwilderness 
        activities or uses can be seen or heard from areas within the 
        land designated as wilderness by subsection (a) shall not 
        preclude the conduct of the activities or uses outside the 
        boundary of that land.
    (d) Incorporation of Acquired Land and Interests in Land.--Any land 
or interest in land that is within the boundary of the land designated 
as wilderness by subsection (a) that is acquired by the United States 
shall--
            (1) become part of the Bisti/De-Na-Zin Wilderness; and
            (2) be managed in accordance with--
                    (A) the Wilderness Act (16 U.S.C. 1131 et seq.);
                    (B) the San Juan Basin Wilderness Protection Act of 
                1984 (Public Law 98-603; 98 Stat. 3155; 110 Stat. 
                4211);
                    (C) this section; and
                    (D) any other applicable laws.
    (e) Grazing.--Grazing of livestock in the land designated as 
wilderness by subsection (a), where established before the date of 
enactment of this Act, shall be allowed to continue in accordance 
with--
            (1) section 4(d)(4) of the Wilderness Act (16 U.S.C. 
        1133(d)(4)); and
            (2) the guidelines set forth in the report of the Committee 
        on Interior and Insular Affairs of the House of Representatives 
        accompanying H.R. 5487 of the 96th Congress (H. Rept. 96-617).

Summary: San Juan County Settlement Implementation Act of 2016 This bill authorizes the Department of the Interior to retire any coal preference right lease application for which it has made an affirmative commercial quantities determination by:  issuing bidding rights in exchange for relinquishment of the application, and making a payment to the relevant state of 50% of the dollar amount of any bidding right subsequently used in lieu of any monetary bonus in a coal lease sale or of rental or royalty under a federal coal lease.   Interior shall make such payments from amounts that would otherwise be deposited in the Treasury as miscellaneous receipts under the Mineral Leasing Act. The bill declares such bidding rights fully transferable to any other person.  The bill cancels specified land selections made by the Navajo Nation pursuant to the Navajo-Hopi Land Settlement Act of 1974. Subject to specified exclusions, the Navajo Nation may make new land selections to replace those canceled. The bill designates approximately 7,242 acres of land as the Ah-shi-sle-pah Wilderness and incorporates approximately 2,250 acres of specified federal land into the Bisti/De-Na-Zin Wilderness.