[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1562 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1562

 To authorize an exchange of land between the Secretary of Agriculture 
          and Secretary of the Interior and Big Sky Lumber Co.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 13, 1997

  Mr. Baucus introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To authorize an exchange of land between the Secretary of Agriculture 
          and Secretary of the Interior and Big Sky Lumber Co.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION. 1. SHORT TITLE.

    This Act may be cited as the ``Gallatin Land Consolidation Act of 
1998''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the land north of Yellowstone National Park possesses 
        outstanding natural characteristics and wildlife habitats that 
        would make the land a highly valuable addition to the National 
        Forest System;
            (2) it is in the interest of the United States for the 
        Secretary of Agriculture to enter into an Option Agreement for 
        the acquisition of land owned by Big Sky Lumber Co.; and
            (3) it is in the interest of the United States to--
                    (A) establish a logical and effective ownership 
                pattern for the Gallatin National Forest, substantially 
                reducing long-term costs for taxpayers; and
                    (B) consolidate the Gallatin National Forest in a 
                manner that will enable the public to have access to 
                and enjoy the many recreational uses of the land.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) BSL.--The term ``BSL'' means Big Sky Lumber Co., an 
        Oregon joint venture, and its successors and assigns, and any 
        other entities having a property interest in the BSL land.
            (2) BSL land.--The term ``BSL land'' means the up to 
        approximately 55,000 acres of land owned by BSL that is to be 
        acquired by the Secretary of Agriculture, as depicted in 
        Exhibit A to the Option Agreement.
            (3) Exchange agreement.--The term ``Exchange Agreement'' 
        means the agreement entered into between BSL and the Secretary 
        of Agriculture under section 4(e).
            (4) Option agreement.--The term ``Option Agreement'' means 
        the agreement dated ________ and entitled ``Option Agreement 
        for the Acquisition of Big Sky Lumber Co. Lands Pursuant to the 
        Gallatin Range Consolidation and Protection Act of 1993'' and 
        the exhibits and maps attached to the agreement.

SEC. 4. GALLATIN LAND CONSOLIDATION COMPLETION.

    (a) In General.--If BSL offers fee title to the BSL land, including 
mineral interests, that is acceptable to the United States--
            (1) the Secretary of Agriculture shall accept a warranty 
        deed to the BSL land;
            (2) the Secretary of Agriculture shall convey to BSL, 
        subject to valid existing rights and to such other terms, 
        conditions, reservations, and exceptions as may be agreed on by 
        the Secretary of Agriculture and BSL, fee title to up to 
        approximately 25,000 acres of National Forest System land and 
        appurtenances thereto as depicted in Exhibit B to the Option 
        Agreement;
            (3) the Secretary of Agriculture shall grant to BSL timber 
        harvest rights to up to approximately 50,000,000 board feet of 
        timber in accordance with subsection (c) and as described in 
        Exhibit C to the Option Agreement;
            (4) subject to availability of funds, the Secretary of 
        Agriculture shall purchase land belonging to BSL in the Taylor 
        Fork area, as depicted in Exhibit D, at a purchase price of not 
        more than $6,500,000; and
            (5) the Secretary of the Interior shall convey to BSL, by 
        patent or otherwise, subject to valid existing rights and to 
        such other terms, conditions, reservations, and exceptions as 
        may be agreed to by the Secretary of the Interior and BSL, fee 
        title to approximately 1,860 acres of Bureau of Land Management 
        land, as depicted in Exhibit B to the Option Agreement.
    (b) Valuation.--The property and other assets exchanged by BSL and 
the United States under subsection (a) shall be approximately equal in 
value, as determined by the Secretary of Agriculture.
    (c) Timber Harvest Rights.--
            (1) In general.--The Secretary of Agriculture shall 
        prepare, grant to BSL, and administer the timber harvest rights 
        identified in Exhibit C to the Option Agreement, over a period 
        of 5 consecutive years after the date of enactment of this Act.
            (2) Entire timber sale program of the gallatin national 
        forest.--Timber harvest volume shall constitute the timber sale 
        program for the Gallatin National Forest for that 5-year 
        period.
            (3) Substitution.--If exceptional circumstances, such as 
        natural catastrophe, changes in law or policy, or extraordinary 
        environmental or financial circumstances prevent the Secretary 
        of Agriculture from conveying the timber harvest rights 
        identified in Exhibit C to the Option Agreement, the Secretary 
        of Agriculture shall replace the value of the diminished 
        harvest rights by--
                    (A) substituting equivalent timber harvest rights 
                volume from the same market area;
                    (B) conveying national forest lands containing 
                merchantable timber within the Gallatin National 
                Forest; or
                    (C) making a payment from funds made available to 
                the Secretary of Agriculture out of the Land and Water 
                Conservation Fund.
            (4) Procedures.--
                    (A) In general.--The following procedures shall 
                apply to all national forest timber harvest rights 
                identified for exchange under subsection (a):
                            (i) Identification of timber.--The 
                        Secretary of Agriculture shall designate 
                        Federal timber, as depicted in Exhibit C to the 
                        Option Agreement, for exchange to BSL.
                            (ii) Harvest schedule.--The Secretary of 
                        Agriculture and BSL shall mutually develop and 
                        agree upon schedules for all national forest 
                        timber to be conveyed to BSL in the exchange.
                            (iii) Open market.--All timber harvest 
                        rights granted to BSL in the exchange shall be 
                        offered for sale by BSL through the competitive 
                        bid process.
                            (iv) Small business.--All timber harvest 
                        rights granted to BSL in the exchange shall be 
                        subject to compliance by BSL with Forest 
                        Service small business program procedures in 
                        effect as of the date of enactment of this Act, 
                        including contractual provisions for payment 
                        schedules, harvest schedules, and bonds.
                            (v) Compliance with option and exchange 
                        agreements.--All timber harvest rights granted 
                        to BSL in the exchange and all timber harvested 
                        under the exchange shall comply with the terms 
                        of the Option Agreement and the Exchange 
                        Agreement.
                    (B) Binding effect.--The procedures under 
                subparagraph (A) shall be binding on BSL and its 
                assigns, contractors, and successors in interest.
    (d) Exchange Agreement.--
            (1) In general.--The Secretary of Agriculture shall offer 
        to enter into an Exchange Agreement with BSL that--
                    (A) describes the non-Federal and Federal land and 
                interests in lands to be exchanged;
                    (B) identifies the terms, conditions, reservations, 
                exceptions, and rights-of-way conveyances; and
                    (C) describes the terms for the harvest rights of 
                timber granted under subsection (a)(3).
            (2) Consistency.--The Exchange Agreement shall be 
        consistent with this Act and the Option Agreement.
            (3) Submission to congress.--
                    (A) In general.--On completion of the Exchange 
                Agreement, the Secretary of Agriculture shall submit 
                the Exchange Agreement to the Committee on Energy and 
                Natural Resources of the Senate, the Committee on 
                Resources of the House of Representatives, and each 
                member of the Montana congressional delegation; and
                    (B) Delayed effectiveness.--The Exchange Agreement 
                shall not take effect until 30 days after the date on 
                which the Exchange Agreement is submitted in accordance 
                with subparagraph (A).
    (e) Rights-of-Way.--As part of the exchange under subsection (a)--
            (1) the Secretary of Agriculture, under the authority of 
        the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
        1701 et seq.), shall convey to BSL such easements in or other 
        rights-of-way over National Forest System land as may be 
agreed to by the Secretary of Agriculture and BSL in the Exchange 
Agreement; and
            (2) BSL shall convey to the United States such easements in 
        or rights-of-way over land owned by BSL as may be agreed to by 
        the Secretary of Agriculture and BSL in the Exchange Agreement.
    (f) Quality of Title.--
            (1) Determination.--The Secretary of Agriculture shall 
        review the title for the BSL land described in subsection (a) 
        and, within 60 days after receipt of all applicable title 
        documents from BSL, determine whether--
                    (A) the applicable title standards for Federal land 
                acquisition have been satisfied or the quality of the 
                title is otherwise acceptable to the Secretary of 
                Agriculture;
                    (B) all draft conveyances and closing documents 
                have been received and approved;
                    (C) a current title commitment verifying compliance 
                with applicable title standards has been issued to the 
                Secretary of Agriculture; and
                    (D) except as provided in section 8(b) (i)-(iii) of 
                the Gallatin Range Consolidation and Protection Act of 
                1993 (107 Stat. 992), the title includes both the 
                surface and subsurface estates without reservation or 
                exception (except by the United States or the State of 
                Montana, by patent) including--
                            (i) minerals, mineral rights, and mineral 
                        interests;
                            (ii) timber, timber rights, and timber 
                        interests;
                            (iii) water, water rights, and ditch 
                        conveyances; and
                            (iv) any other interest in the property.
            (2) Conveyance of title.--If the quality of title does not 
        meet Federal standards or is otherwise determined to be 
        unacceptable to the Secretary of Agriculture, the Secretary of 
        Agriculture shall advise BSL regarding corrective actions 
        necessary to make an affirmative determination under 
        subparagraph (1).
    (g) Timing of Implementation.--
            (1) Exchange agreement.--The Exchange Agreement shall be 
        completed and executed not later than 60 days after the date of 
        enactment of this Act.
            (2) Land-for-land exchange.--The Secretary of Agriculture 
        shall accept the conveyance of land described in subsection (a) 
        not later than 60 days after the Secretary of Agriculture has 
        entered into the Exchange Agreement and made an affirmative 
        determination of quality of title.
            (3) Land-for-timber exchange.--The Secretary of Agriculture 
        shall make the timber harvest rights described in subsection 
        (a)(3) available over 5 consecutive years following the date of 
        enactment of this Act. Specific procedures for execution of the 
        harvest rights shall be specified in the Exchange Agreement.
            (4) Purchase.--The Secretary of Agriculture shall complete 
        the purchase of BSL land under subsection (a)(4) not later than 
        60 days after the date on which appropriated funds are made 
        available and an affirmative determination of quality of title 
        is made with respect to the BSL land.

SEC. 5. GENERAL PROVISIONS.

    (a) Minor Corrections.--
            (1) In general.--The Option Agreement and the Exchange 
        Agreement shall be subject to such minor corrections as may be 
        agreed to by the Secretary of Agriculture and BSL.
            (2) Notification.--The Secretary of Agriculture shall 
        notify the Committee on Energy and Natural Resources of the 
        Senate, the Committee on Resources of the House of 
        Representatives, and each member of the Montana congressional 
        delegation of any changes made pursuant to this subsection.
    (b) Public Availability.--The Option Agreement and Exchange 
Agreement shall be filed with the county clerks for Gallatin County, 
Park County, Madison County, and Granite County, Montana, and shall be 
on file and available for public inspection in the appropriate offices 
of the Forest Service.
    (c) Status of Land.--All land conveyed to the United States under 
this Act shall be added to and administered as part of the Gallatin 
National Forest and Deerlodge National Forest, as appropriate, in 
accordance with the Act of March 1, 1911 (commonly known as the ``Weeks 
Act'') (36 Stat. 961, chapter 186), and other laws (including 
regulations) pertaining to the National Forest System.
    (d) Implementation.--The Secretary of Agriculture shall ensure that 
sufficient funds are made available to the Gallatin National Forest to 
carry out this Act.
                                 <all>