Short title

This Act may be cited as the

Southeast Arizona Land Exchange and Conservation Act of 2008

Purposes

The purposes of this Act are— (1)to advance the public interest by authorizing, directing, facilitating, and expediting the conveyance and exchange of land between the United States and Resolution Copper Mining, LLC; and (2)to provide for the permanent protection of cultural and other resources and uses of the Apache Leap escarpment located in close proximity to the town of Superior, Arizona.

Definitions

In this Act: (1)

Apache Leap

The term Apache Leap means the approximately 695 acres of land referred to as the Apache Leap Conservation Easement Area on the map entitled Apache Leap Conservation Easement Area, dated November 2006. (2)

Federal land

The term Federal land means the approximately 3,025 acres of land located in Pinal County, Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2005—Federal Parcel—Oak Flat, dated January 2005. (3)

Grantee

The term grantee means the 1 or more entities that are granted the permanent conservation easement under section 6(a). (4)

Non-Federal land

The term non-Federal land means the land described in section 4(b)(1). (5)

Oak Flat Campground

The term Oak Flat Campground means the campground that is— (A)comprised of approximately 16 developed campsites (including the approximately 75 acres adjacent to the campsites); and (B)generally depicted on the map entitled Oak Flat Campground, dated May 2008. (6)

Resolution copper

The term Resolution Copper means— (A)Resolution Copper Mining, LLC, a Delaware limited liability company; and (B)any successor, assign, affiliate, member, or joint venturer of Resolution Copper Mining, LLC. (7)

Secretary

The term Secretary means the Secretary of Agriculture. (8)

Town

The term Town means the Town of Superior, Arizona, which is an incorporated municipality.

Land conveyances and exchanges.

(a)

In general

On receipt from Resolution Copper of a written offer to convey to the United States all right, title, and interest of Resolution Copper in and to the non-Federal land that is acceptable to the Secretary or the Secretary of the Interior, as appropriate, and that conforms to the title approval standards of the Attorney General applicable to Federal land acquisitions, the Secretary shall— (1)accept the offer; and (2)convey to Resolution Copper all right, title, and interest of the United States in and to the Federal land, subject to any valid existing right or title reservation, easement, or other exception required by law or agreed to by the Secretary and Resolution Copper. (b)

Conveyance of land

On receipt of title to the Federal land under subsection (a), Resolution Copper shall simultaneously convey— (1)to the Secretary, all right, title, and interest that the Secretary determines to be acceptable in and to— (A)the approximately 147 acres of land located in Gila County, Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2005—Non-Federal Parcel—Turkey Creek, dated January 2005; (B)the approximately 148 acres of land located in Yavapai County Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2005—Non-Federal Parcel—Tangle Creek, dated January 2005; (C)the approximately 149 acres of land located in Maricopa County, Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2005—Non-Federal Parcel—Cave Creek, dated January 2005; (D)the approximately 266 acres of land located in Pinal County, Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2005—Non-Federal Parcel—JI Ranch, dated January 2005; (E)the approximately 640 acres of land located in Coconino County, Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2005—Non-Federal Parcel—East Clear Creek, dated August 2005; and (F)the approximately 95 acres of land located in Pinal County, Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2008—Non-Federal Parcel—The Pond, dated May 2008; and (2)to the Secretary of the Interior, all right, title, and interest that the Secretary of the Interior determines to be acceptable in and to— (A)the approximately 3,073 acres of land located in Pinal County, Arizona, depicted on the map entitled Lower San Pedro River Parcel, dated May 31, 2006; (B)the approximately 160 acres of land located in Gila and Pinal Counties, Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2005—Non-Federal Parcel—Dripping Springs, dated August 2005; and (C)the approximately 956 acres of land located in Santa Cruz County, Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2008—Non-Federal Parcel—Appleton Ranch, dated May 2008. (c)

Conveyance of land to town

(1)

In general

Subject to paragraph (2), not later than 90 days after the date on which the exchange under subsection (b) is completed, on receipt of a request from the Town for any parcel of land described in paragraph (2), the Secretary shall convey to the Town, for a price equal to market value, as appraised under section 5 and subject to any credit under section 5(b)(3), each parcel of land that the Town requests. (2)

Eligible parcels

The Town may request— (A)the approximately 30 acres of land located in Pinal County, Arizona, occupied on the date of enactment of this Act by the Fairview Cemetery and depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2005—Federal Parcel—Fairview Cemetery, dated January 2005; (B)the reversionary interest, and any reserved mineral interest, of the United States in the approximately 265 acres of land located in Pinal County, Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2005—Federal Reversionary Interest—Superior Airport, dated January 2005; and (C)the approximately 181 acres of land located in Pinal County, Arizona, depicted on the map entitled Southeast Arizona Land Exchange and Conservation Act of 2005—Federal Parcel—Superior Airport Contiguous Parcel, dated June 2005. (3)

Condition of conveyance

Any conveyance of land under paragraph (1) shall be carried out in a manner that provides the United States manageable boundaries on any parcel retained by the Secretary, to the maximum extent practicable. (d)

Timing of exchange

It is the intent of Congress that the land exchange directed by subsection (b) should be completed not later than 1 year after the date of enactment of this Act. (e)

Costs of conveyances and exchanges

In accordance with sections 254.4 and 254.7 of title 36, Code of Federal Regulations (or successor regulations), Resolution Copper shall assume responsibility for— (1)hiring any contractors determined by the Secretary to be necessary for carrying out an exchange or conveyance under subsection (a), (b), or (c); and (2)paying, without compensation— (A)the costs of each appraisal relating to the exchange or conveyance under subsection (a), (b), or (c), including any reasonable reimbursements to the Secretary on request of the Secretary for the cost of reviewing and approving an appraisal; (B)the costs of any hazardous materials survey, mitigation requirement, clearance, or land survey, including any necessary land surveys conducted by the Bureau of Land Management Cadastral Survey; and (C)any other cost agreed to by Resolution Copper and the Secretary. (f)

Contractor work and approvals

(1)

In general

Any work relating to the exchange or conveyance of land that is performed by a contractor shall be subject to the mutual agreement of the Secretary and Resolution Copper, including any agreement with respect to— (A)the selection of the contractor; and (B)the scope of work performed by the contractor. (2)

Review and approval

Any required review and approval of work by a contractor shall be performed by the Secretary in accordance with applicable law (including regulations). (3)

Lead actor

The Secretary and the Secretary of the Interior may mutually agree to designate the Secretary as the lead actor for any action under this subsection. (g)

Pre-exchange processing

Before completing the land exchange under subsection (b), the Secretary or the Secretary of the Interior, as appropriate, shall complete— (1)any necessary land survey; and (2)any required clearance, review, mitigation activity, or approval relating to any threatened and endangered species, cultural or historic resource, wetlands and floodplains, or hazardous material. (h)

Post-exchange processing

Before commencing production in commercial quantities of any valuable mineral from the Federal land conveyed to Resolution Copper pursuant to subsection (a)(2) (except for any such production from any exploration and mine development shafts, adits, and tunnels needed to determine feasibility and pilot plant testing of commercial production or to access the ore body and tailings deposition areas), the Secretary shall publish an environmental impact statement in accordance with section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C.4322(2)(C)) regarding any Federal agency action carried out relating to the commercial production, including an analysis of the impacts of the production.

Valuation of land exchanged or conveyed

(a)

Exchange valuation

(1)

In general

The value of the land exchanged or conveyed under subsection (a), (b), or (c) of section 4 (including any reversionary interest) shall be determined by the Secretary through 1 or more appraisals conducted in accordance with paragraph (2). (2)

Appraisals

(A)

In general

An appraisal under this section shall be— (i)performed by an appraiser mutually agreed to by the Secretary and Resolution Copper; (ii)performed in accordance with— (I)the Uniform Appraisal Standards for Federal Land Acquisitions (Department of Justice, 5th Edition, December 20, 2000); (II)the Uniform Standards of Professional Appraisal Practice; and (III)Forest Service appraisal instructions; and (iii)submitted to the Secretary for review and approval. (B)

Reappraisals and updated appraised values

After the final appraised value of a parcel is determined and approved under subparagraph (A), the Secretary shall not be required to reappraise or update the final appraised value— (i)for a period of 3 years after the approval by the Secretary of the final appraised value under subparagraph (A)(iii); or (ii)at all, after an exchange agreement is entered into by Resolution Copper and the Secretary. (C)

Public review

Before carrying out a land exchange under section 4, the Secretary shall make available for public review a summary of the appraisals of the land to be exchanged. (3)

Failure to agree

If the Secretary and Resolution Copper fail to agree on the value of a parcel to be exchanged, the final value of the parcel shall be determined in accordance with section 206(d) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1716(d)). (4)

Federal land appraisal

(A)

Treatment as unencumbered

(i)

In general

Subject to clause (ii), the value of the Federal land shall be determined as if the land is unencumbered by any unpatented mining claims of Resolution Copper. (ii)

Effect

Nothing in this Act affects the validity of any unpatented mining claim or right of Resolution Copper. (B)

Appraisal information

To provide any information necessary to calculate a value adjustment payment for purposes of section 10, the appraisal under this paragraph shall include a detailed royalty income approach analysis, in accordance with the Uniform Appraisal Standards for Federal Land Acquisition, of the market value of the Federal land, regardless of whether that analysis does not reflect the appraisal approach relied on by the appraiser to determine the final market value of the Federal land. (b)

Equalization of value-surplus of Federal land value

(1)

In general

If the final appraised value of the Federal land exceeds the value of the non-Federal land, Resolution Copper shall make a cash equalization payment to the Secretary to equalize the values of the Federal land and non-Federal land. (2)

Amount of payment

Notwithstanding section 206(b) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1716(b)), the Secretary may accept a cash equalization payment under paragraph (1) in an amount that is greater than 25 percent of the value of the Federal land. (3)

Disposition and use of proceeds

A cash equalization payment received by the Secretary under paragraph (1) shall— (A)without further appropriation, be deposited in the Federal Land Disposal Account established by section 206(a) of the Federal Land Transaction Facilitation Act (43 U.S.C. 2305(a)); and (B)regardless of whether that account is terminated, remain available to the Secretary and the Secretary of the Interior, as jointly determined to be appropriate, for— (i)the acquisition from willing sellers, during the 2-year period beginning on the date on which the payment is deposited in the Federal Land Disposal Account, of land or interests in land within the hydrographic boundary of the San Pedro River (including tributaries) in the State of Arizona; or (ii)the management and protection of endangered species and other sensitive land or environmental values in the San Pedro Riparian National Conservation Area established by section 101 of the Arizona-Idaho Conservation Act of 1988 (16 U.S.C. 460xx), including management under any applicable cooperative agreement between the Secretary of the Interior and an appropriate State or local agency or qualified organization under section 103(c) of that Act (16 U.S.C. 460xx–2(c)). (c)

Surplus of non-Federal land value

If the final appraised value of the non-Federal land exceeds the value of the Federal land involved in the exchange under section 4— (1)the Secretary shall not make a payment to Resolution Copper to equalize the values of the land; and (2)the surplus value of the non-Federal consideration shall be considered a donation by Resolution Copper to the United States. (d)

Payment for land conveyed to town

(1)

In general

The Town shall pay the Secretary market value for any land acquired by the Town from the Secretary under section 4(c), as determined by the Secretary through an appraisal conducted in accordance with subsection (a)(2). (2)

Credit

If the final appraised value of the non-Federal land exceeds the value of the Federal land in the exchange under section 4, the obligation of the Town to pay the United States under paragraph (1) shall be reduced by an amount equal to the excess value of the non-Federal consideration. (3)

Deposits

The Secretary shall deposit any amounts received from the Town under this subsection in the fund established under Public Law 90–171 (commonly known as the Sisk Act) (16 U.S.C. 484a). (4)

Use of funds

Amounts deposited under paragraph (3) shall be available to the Secretary until expended, without further appropriation, for the acquisition of land or interests in land in the National Forest System in the State of Arizona. (e)

Conforming amendment

Section 103(c) of the Arizona-Idaho Conservation Act of 1988 (16 U.S.C. 460xx–2(c)) is amended by inserting or qualified organizations (as defined in section 170(h) of the Internal Revenue Code of l986) after State and local agencies.

Apache Leap natural and cultural resource conservation easement

(a)

In general

To protect the scenic, cultural, historic, educational, and natural resource values of the Apache Leap escarpment, as a condition of the land exchange under section 4, Resolution Copper shall deliver to the Secretary an executed document granting a permanent conservation easement for the easement area to an entity that is— (1)a qualified unit of government or Indian tribe; or (2)a land trust or other qualified organization as defined in section 170(h) of the Internal Revenue Code of 1986. (b)

Easement area

The area of the conservation easement under this section shall be the surface estate of Apache Leap. (c)

Terms

The conservation easement under this section— (1)shall— (A)prohibit surface development of the easement area by Resolution Copper, except for a fence, sign, monitoring device, or other improvement for an administrative, public health and safety, or other appropriate purpose, as determined by Resolution Copper and any grantee of the conservation easement; (B)prohibit commercial mineral extraction under the easement area; and (C)provide for appropriate nonmotorized public access to and use of the easement area, as determined by Resolution Copper and any grantee of the conservation easement; and (2)may contain such other terms and conditions as the grantor or grantee of the conservation easement, in consultation with the Town, interested Indian tribes, and any other interested parties, determines to be appropriate to conserve, protect, enhance, and manage the cultural and historic resources and traditional uses of the easement area. (d)

Endowment

As a condition of the conveyance under section 4(a), Resolution Copper shall pay to the grantee of the conservation easement under this section $250,000, to be used by the grantee of the conservation easement— (1)to monitor the easement; (2)to enforce the borders of the easement; (3)to carry out any administrative activity relating to the easement; and (4)to provide such additional protections, access, or alternative access as may be determined appropriate pursuant to subsection (f). (e)

Role of Secretary

(1)

In general

The Secretary— (A)may be consulted during the preparation and drafting of the executed document granting a permanent conservation easement to the easement area under subsection (a); but (B)unless otherwise agreed to by the Secretary and Resolution Copper, shall not be— (i)a party to the conservation easement under this section; or (ii)required to carry out any activity relating to the monitoring or enforcement of the conservation easement under this section. (2)

Additional management

The Secretary may manage the Notch area labeled and depicted on the map referred to in section 3(1) in accordance with the terms of the conservation easement under this section. (f)

Additional protections and access

Not later than 3 years after the date of the conveyance of the Federal land, Resolution Copper and the grantee, in consultation with the Town, interested Indian tribes, and other interested parties, shall determine whether the area covered by the conservation easement should be managed to establish— (1)additional cultural and historical resource protections or measures, including permanent or seasonal closures of any portion of the easement area to protect cultural or archeological resources; or (2)additional or alternative public access routes, trails, and trailheads to Apache Leap. (g)

Easement and appraisal

(1)

In general

The requirement that Resolution Copper grant the conservation easement under this section shall not be considered in determining, or result in any diminution in, the market value of the Federal land for purposes of an appraisal under section 5. (2)

Effect

The market value of the conservation easement and any amount paid by Resolution Copper under subsection (d) shall be considered to be a donation by Resolution Copper to the United States. (h)

Mining activities

Except as provided in subsection (c) and other Federal law (including regulations) relating to mining activities on private land, the conservation easement shall not impose any additional restrictions on mining activities carried out by Resolution Copper outside of the easement area after the date of the conveyance under section 4(a).

Incorporation, management, and status of acquired land

(a)

Land acquired by the Secretary

(1)

In general

Land acquired by the Secretary under this Act, including any land or interest in land acquired by the Secretary under section 4(b) shall— (A)become part of the National Forest within which the land is located; and (B)be administered in accordance with the laws (including regulations) applicable to the National Forest System. (2)

Boundaries

For purposes of section 7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 4601 et seq.), the boundaries of a National Forest in which land acquired by the Secretary is located shall be deemed to be the boundaries of that forest as in existence on January 1, 1965. (3)

Management of JI ranch

(A)

In general

On the date on which the Secretary acquires the JI Ranch parcel described in section 4(b)(1)(A)(iv), the Secretary shall manage the land to allow Yavapai and Apache Indian tribes— (i)to access the land; and (ii)to undertake traditional activities relating to the gathering of acorns. (B)

Authority of Secretary

On receipt of a request from the Yavapai or Apache Indian tribe, the Secretary may temporarily or seasonally close to the public any portion of the land described in section 4(b)(1) during the period in which the Yavapai or Apache Indian tribe undertakes any activity described in subparagraph (A)(ii). (b)

Land acquired by the Secretary of the interior

(1)

In general

Land acquired by the Secretary of the Interior under this Act shall— (A)become part of the administrative unit (including the national conservation area, if applicable) or other area within which the land is located; and (B)be managed in accordance with the laws (including regulations) applicable to the administrative unit, national conservation area, or other area within which the land is located. (2)

Lower San Pedro River land

To preserve and enhance the natural character and conservation value of the land described in section 4(b)(1)(B)(i), on acquisition of the land by the Secretary of the Interior, the land shall be— (A)incorporated in, and administered as part of, the San Pedro Riparian National Conservation Area established by section 101 of the Arizona-Idaho Conservation Act of 1988 (16 U.S.C. 460xx); and (B)managed to preserve or enhance the conservation values of the Conservation Area in accordance with that Act. (c)

Withdrawal

On acquisition by the United States of any land under this Act, subject to valid existing rights and without further action by the Secretary, the acquired land is permanently withdrawn from all forms of entry and appropriation under— (1)the public land laws (including the mining and mineral leasing laws); and (2)the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.).

Public uses of Federal land

(a)

Replacement campground

(1)

In general

Not later than 4 years after the date of enactment of this Act, the Secretary, in consultation with Resolution Copper, the Town, and other interested parties, shall design and construct in the Globe Ranger District of the Tonto National Forest 1 or more replacement campgrounds for the Oak Flat Campground (including appropriate access routes to any replacement campgrounds). (2)

Public facilities

Any replacement campgrounds under this subsection shall be designed and constructed in a manner that adequately (as determined in the sole discretion of the Secretary) replaces, or improves on, the facilities, functions, and amenities available to the public at the Oak Flat Campground. (3)

Costs of replacement

Resolution Copper shall pay the actual cost to the Secretary of designing, constructing, and providing access to any replacement campgrounds under this subsection, not to exceed $ 1,000,000. (b)

Interim oak flat campground access

(1)

In general

The document conveying the Federal land to Resolution Copper under section 4(a) shall specify that— (A)during the 4-year period beginning on the date of enactment of this Act, the Secretary shall retain title to, operate, and maintain the Oak Flat Campground; and (B)at the end of that 4-year period— (i)the withdrawal of the Oak Flat Campground shall be revoked; and (ii)title to the Oak Flat Campground shall be simultaneously conveyed to Resolution Copper. (2)

Liability

During the interim period described in paragraph (1)(A), Resolution Copper shall not be liable for any public use of the Oak Flat Campground. (c)

Mineral exploration

During the 4-year period described in subsection (b)(1)(A)— (1)the Oak Flat campground shall remain withdrawn from all forms of entry and appropriation under the public land laws (including the mining and mineral leasing laws); but (2)Resolution Copper shall have the right to explore for minerals under the Oak Flat Campground by directional drilling or any other method that does not disturb the land surface of the Oak Flat Campground. (d)

BoulderBlast competition

During 5-year period beginning on the date of enactment of this Act, the Secretary, in consultation with Resolution Copper, may issue not more than 1 special use permit per calendar year to provide public access to the bouldering area on the Federal land for purposes of the annual BoulderBlast competition. (e)

Liability

Resolution Copper shall not be liable for any public use of the Federal land under subsection (c) or (d).

Miscellaneous provisions

(a)

Revocation of orders; withdrawal

(1)

Revocation of orders

Any public land order that withdraws the Federal land from appropriation or disposal under a public land law shall be revoked to the extent necessary to permit disposal of the land. (2)

Withdrawal

On the date of enactment of this Act, if the Federal land and any non-Federal land required to be exchanged under this Act are not withdrawn or segregated from entry and appropriation under a public land law (including mining and mineral leasing laws and the Geothermal Steam Act of l970 (30 U.S.C. 1001 et seq.)), the land shall be withdrawn from entry and appropriation, subject to any right of Resolution Copper, until the date of the conveyance of Federal land under section 4(a). (b)

Maps, estimates, and descriptions

(1)

Minor errors

The Secretary and Resolution Copper, may by mutual agreement correct any minor errors in any map, acreage estimate, or description of any land conveyed or exchanged under this Act. (2)

Conflict

If there is a conflict between a map, an acreage estimate, or a description of land under this Act, the map shall control unless the Secretary and Resolution Copper mutually agree otherwise. (3)

Availability

On the date of enactment of this Act, the Secretary shall file and make available for public inspection in the Office of the Supervisor, Tonto National Forest, any map referred to in this Act.

10.

Value adjustment payment

(a)

Annual production reporting

(1)

In general

Beginning on February 15 of the calendar year beginning after the date of commencement of production of valuable locatable minerals in commercial quantities from the Federal land, and annually thereafter, Resolution Copper shall submit to the Secretary of the Interior a report describing the quantity of locatable minerals in commercial quantities produced from the Federal land during the period covered by the report. (2)

Requirements

Each annual report under paragraph (1) shall be prepared in accordance with applicable Federal recordkeeping and reporting requirements relating to the production of valuable locatable minerals in commercial quantities on Federal land during the period covered by the report. (b)

Payment on production

(1)

In general

If and when the cumulative production of valuable locatable minerals in commercial quantities produced from the Federal land exceeds the quantity of production of locatable minerals used in the royalty income approach analysis under the Uniform Appraisal Standards for Federal Land Acquisitions prepared under section 5(a)(4)(B), Resolution Copper shall pay to the United States, on or before March 15 of the following calendar year, a value adjustment payment at a rate equal to— (A)the Federal royalty rate, if any, in effect for the production of valuable locatable minerals from Federal land before December 31, 2012; or (B)if such a Federal royalty rate is not in effect before December 31, 2012, the royalty rate used for purposes of the royalty income approach analysis prepared under section 5(a)(4)(B). (2)

Use of funds

Any funds paid to the United States under paragraph (1) shall— (A)be deposited in a special account in the Treasury of the United States; and (B)remain available, without further appropriation, to the Secretary and the Secretary of the Interior, as may jointly determined to be appropriate, for the acquisition from willing sellers of land or interests in land in the State of Arizona. (c)

No effect on State law

Nothing in this Act modifies, expands, diminishes, amends, or otherwise affects any provision of State law (including regulations), including any law or regulations relating to the imposition, application, timing, or collection of a State excise or severance tax under Arizona Revised Statutes 42–5201–5206.