[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 759 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 759

To provide to the Secretary of Interior a mechanism to cancel contracts 
    for the sale of materials CA-20139 and CA-22901, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 7 (legislative day, April 5), 2011

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

_______________________________________________________________________

                                 A BILL


 
To provide to the Secretary of Interior a mechanism to cancel contracts 
    for the sale of materials CA-20139 and CA-22901, and for other 
                               purposes.

    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 ``Soledad Canyon High Desert, 
California Public Lands Conservation and Management Act of 2011''.

SEC. 2. FINDING AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) Soledad canyon area.--
                    (A) Two valid Federal contracts, privately held, 
                numbered CA-20139 and CA-22901, and issued under the 
                Materials Act of 1947, authorize extraction of 
                approximately 56,000,000 tons of sand and gravel from 
                the Federal mineral estate in lands located in Soledad 
                Canyon adjacent to the City of Santa Clarita, 
                California.
                    (B) It is in the best interest of the citizens of 
                California and the Federal Government to cancel the 
                Contracts and prohibit future mining in the area that 
                was subject to the two Federal Contracts in the Soledad 
                Canyon area of California.
                    (C) The holder of the Contracts should receive, as 
                compensation for such cancellation, the fair market 
                value of the Contracts and all costs, fees, and covered 
                liabilities incurred by the Contract Holder in good 
                faith in its efforts to develop the Contracts.
                    (D) A site-specific solution that is fair to the 
                Contract Holder and that seeks to protect the 
                environment and minimize impacts on local 
                transportation systems is in the best interest of the 
                Nation.
                    (E) Considerable sums of money have been expended 
                by the Contract Holder and the City of Santa Clarita on 
                legal and other services in trying to ensure their 
                interests are protected with respect to the Contracts 
                CA-20139 and CA-22901.
                    (F) Facilitation of an open-space corridor between 
                the two arms of the Angeles National Forest that 
                enhances environmental and wildlife values is in the 
                national interest.
            (2) Victorville area.--
                    (A) The Bureau of Land Management has extensive 
                land ownership in small and large parcels interspersed 
                with or adjacent to private land in and around 
                Victorville, California, making many of these parcels 
                difficult to manage and appropriate for disposal.
                    (B) Certain public lands near Victorville, 
                California, have been previously identified for 
                disposal as a result of the Bureau of Land Management's 
                West Mojave Land Management Plan which was approved in 
                2006 with public involvement and participation.
                    (C) In order to promote responsible and orderly 
                economic development, certain public lands should be 
                sold at fair market value to the City of Victorville or 
                the County of San Bernardino; both located in 
                California.
    (b) Purposes.--The purposes of this Act are the following:
            (1) To provide to the Bureau of Land Management the 
        authority to cancel Contracts CA-20139 and CA-22901 and 
        prohibit future mining in the area that was subject to the two 
        Federal Contracts in the Soledad Canyon area of California.
            (2) To provide a means for the Contract Holder to recover 
        for the cancellation of the Contracts, the fair market value of 
        the Contracts and the Contract Holder's expenditures and 
        covered liabilities incurred pursuing the development of the 
        Contracts.
            (3) To provide the Bureau of Land Management tools to 
        verify expenses incurred by the Contract Holder and provide 
        relief.
            (4) To provide timelines for the verification of costs 
        incurred by the Contract Holder and the determination of 
        compensation and to provide a dispute resolution process.
            (5) To provide for the orderly disposal of certain Federal 
        lands in San Bernardino County, California, and to provide for 
        the acquisition of environmentally sensitive lands in the State 
        of California.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) City of santa clarita.--The term ``City of Santa 
        Clarita'' means the City of Santa Clarita, California.
            (2) City of victorville.--The term ``City of Victorville'' 
        means the City of Victorville, California.
            (3) County of san bernardino.--The term ``County of San 
        Bernardino'' means the County of San Bernardino, California.
            (4) Contracts.--The term ``Contracts'' means the Bureau of 
        Land Management mineral contracts numbered CA-20139 and CA-
        22901.
            (5) Contract holder.--The term ``Contract Holder'' means 
        the private party to the Contracts CA-20139 and CA-22901, and 
        its successors that hold legal interests in such Contracts.
            (6) Covered liabilities.--The term ``covered liabilities'' 
        includes any court-ordered or court-approved payment, 
        settlement, or other liability on the part of the Contract 
        Holder for damages, costs, compensation, or reimbursement to 
        any third party for agreements entered into by the Contract 
        Holder in good faith prior to January 1, 2008, in order to 
        exercise rights under the Contracts.
            (7) Environmentally sensitive land.--The term 
        ``environmentally sensitive land'' means land or an interest in 
        land, the acquisition of which by the United States would, in 
        the judgment of the Secretary or the Secretary of Agriculture--
                    (A) promote the preservation of natural, 
                scientific, aesthetic, historical, cultural, watershed, 
                wildlife, and other values contributing to public 
                enjoyment and biological diversity;
                    (B) enhance recreational opportunities and public 
                access;
                    (C) provide the opportunity to achieve better 
                management of public land through consolidation of 
                Federal ownership; or
                    (D) otherwise serve the public interest.
            (8) Materials act of 1947.--The term ``Materials Act of 
        1947'' means the Act of July 31, 1947 (chapter 406; 61 Stat. 
        681; 30 U.S.C. 601-604).
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (10) Special account.--The term ``special account'' means 
        the account in the Treasury of the United States established 
        under section 5(h).

SEC. 4. CANCELLATION OF THE CONTRACTS; COMPENSATION TO CONTRACT HOLDER.

    (a) Contract Cancellations.--The Secretary shall cancel Bureau of 
Land Management mineral Contracts CA-20139 and CA-22901 and withdraw 
those areas that were subject to the Contracts from further mineral 
entry under all mineral leasing and sales authorities available to the 
Secretary, effective on the date of the enactment of this Act.
    (b) Compensation.--As compensation for the cancellation of the 
Contracts, the Contract Holder shall receive the following amounts, 
whether determined by agreed negotiated value or awarded by judgment of 
the United States Court of Federal Claims in accordance with the 
referral provisions of subsection (g)--
            (1) the fair market value of the cancelled Contracts, 
        determined in accordance with subsection (e);
            (2) the Contract Holder's expenditures in trying to bring 
        the Contracts into commercial production, as described in 
        subsection (f);
            (3) interest on the compensation provided for in paragraphs 
        (1), (2), and (4) from the date of the enactment of this Act 
        until the last day of the month preceding the date on which 
        payment is made, compounded quarterly and computed at the rate 
        applicable to marketable obligations of the United States of 
        three year maturity for the period involved; and
            (4) covered liabilities incurred in trying to bring the 
        Contracts into commercial production, as described in 
        subsection (f); provided, however, that compensation for 
        covered liabilities may be paid to Contract Holder under this 
        section for up to 15 years following the effective date of this 
        Act.
    (c) Means of Payment; Assurances of Payment.--
            (1) Full faith and credit.--The full faith and credit of 
        the United States is hereby pledged to the payment of the 
        compensation provided for in subsection (b).
            (2) Means of payment.--Compensation paid to Contract Holder 
        under this Act shall be paid by means of disbursement of funds 
        from the special account created in the Treasury of the United 
        States pursuant to section 5(h) except as otherwise provided in 
        paragraph (3).
            (3) Payment by deadline.--Notwithstanding paragraph (2) or 
        any other provision of this Act, in the event that the Contract 
        Holder has not received all of the compensation provided for in 
        this section on or before the third anniversary of the 
        enactment of this Act, all compensation then remaining to be 
        paid to Contract Holder shall be paid from the permanent 
        judgment appropriation established pursuant to section 1304 of 
        title 31, United States Code.
            (4) Negotiated agreement.--Any negotiated agreement between 
        the Secretary and the Contract Holder as to the amount of 
        compensation described in subsection (b) shall be deemed to be 
        a compromise settlement of imminent litigation within the 
        meaning of section 1304 of title 31, United States Code, and 
        section 2414 of title 28, United States Code, and, 
        notwithstanding anything to the contrary contained in any other 
        provision of law, including section 2517 of title 28, United 
        States Code, any final judgment by the United States Court of 
        Federal Claims determining the fair market value of Contracts 
        CA-20139 and CA-22901 in accordance with the referral 
        provisions of subsection (g) shall be deemed to be a final 
        judgment and award within the meaning of section 1304 of title 
        31, United States Code.
    (d) Increase in Adjusted Basis of Contract Upon Cancellation.--For 
purposes of the Internal Revenue Code of 1986, the adjusted basis of 
any Contract to which subsection (a) applies shall be increased 
(immediately before the cancellation of such Contract under such 
section) by the excess (if any) of--
            (1) the fair market value of such Contract (determined 
        immediately before such cancellation), over
            (2) the adjusted basis of such Contract (as determined 
        immediately before the application of this section).
    (e) Determination of Fair Market Value.--The Secretary shall, 
within six months after the date of enactment of this Act, determine by 
mineral appraisal, utilizing the discounted cash flow method of 
appraisal (in accordance with the appraisal guidelines for appraisals 
of large quantities of mineral materials contained in section IV(E) of 
BLM Mineral Material Appraisal Handbook H-3630), the fair market value 
of the Contracts and notify the Contract Holder of those 
determinations. In determining the fair market value of the Contracts, 
the Secretary shall assume that--
            (1) the Contract Holder has obtained all the permits and 
        entitlements necessary to mine, produce, and sell sand and 
        gravel under the Contract; and
            (2) mining operations under the Contract have commenced at 
        the time of the determination, with maximum annual production 
        volumes that--
                    (A) are based on the projected supply and demand 
                outlook at the time of determination; and
                    (B) reflect depletion of the reserves that are 
                subject to the Contract within the effective periods of 
                the Contract.
    (f) Expenditures and Covered Liabilities Described.--The 
compensation provided for in subsection (b)(2) is equal to the sum of 
the following:
            (1) All amounts paid to the United States by Contract 
        Holder with respect to the cancelled Contract as bonus bids or 
        other prepayments.
            (2) Interest on amounts referred to in paragraph (1), from 
        the date of payment of such amounts to the United States, at a 
        rate determined by the Secretary.
            (3) Amounts expended by the Contract Holder in securing the 
        Contract and trying to bring it into production, including--
                    (A) all actual costs, including fees, associated 
                with the engineering and environmental studies and 
                permitting proceedings that were incurred in good faith 
                in the Contract Holder's efforts to exercise rights 
                granted under the Contract terms; and
                    (B) all actual legal costs, including fees and 
                covered liabilities, incurred in good faith in the 
                Contract Holder's efforts to exercise rights granted in 
                the Contract including all fees and costs associated 
                with securing permits and entitlements, litigation to 
                compel, secure, or defend permits or entitlements, and 
                litigation in connection with disputes relating to 
                mineral and surface estate rights to the property that 
                is the subject of the Contract.
    (g) Referral to the United States Court of Federal Claims.--
            (1) Referral.--If within 12 months after the date of 
        enactment of this Act, the Secretary and the Contract Holder do 
        not reach agreed negotiated value under subsection (b) 
        regarding the fair market value of Contracts CA-20139 and CA-
        22901, the Contract Holder shall have 3 months thereafter to 
        notify the Secretary that it disagrees with the Secretary's 
        determination of such value. In the event of such notification, 
        the Secretary shall refer the issue of fair market value to the 
        United States Court of Federal Claims for determination.
            (2) Resolution by court.--In any referral under this 
        subsection, the court shall determine de novo the fair market 
        value of Contracts CA-20139 and CA-22901.
    (h) Submission of Expenses Incurred.--
            (1) In general.--To assist in the verification of the 
        amounts expended referred to in subsection (f)(3), the Contract 
        Holder shall submit to the Secretary within 60 days after the 
        date of enactment of this Act an itemized list of such amounts, 
        with enough detail and supporting documentation so the 
        Secretary can determine that the expenses are associated with 
        the Contracts.
            (2) Arbitration.--The Secretary shall issue the 
        determination of the amounts expended referred to in paragraph 
        (f)(3) within 60 days after receipt of the itemized list 
        required under paragraph (1). If the Secretary disapproves such 
        list, the Secretary shall, upon the request of the Contract 
        Holder, determine such amounts through arbitration in 
        accordance with subchapter IV of chapter 5 of title 5, United 
        States Code.
    (i) Assignment.--The Contract Holder may at any time assign its 
rights or entitlement under this Act to all or any part of the 
compensation provided for in paragraphs (1) and (2) of subsection (b).

SEC. 5. SALE OF LAND NEAR VICTORVILLE, CALIFORNIA.

    (a) In General.--Notwithstanding sections 202 and 203 of the 
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712, 1713) 
and subject to subsections (c), (d), and (e), the Secretary shall offer 
for sale by competitive bidding and for a minimum price of not less 
than fair market value, as determined by an appraisal conducted under 
subsection (g), all right, title, and interest of the United States in 
and to the land identified for disposition on the map entitled 
``Victorville disposal area, California'' and dated March 2011.
    (b) Availability of Map.--The Secretary shall keep the map 
described in subsection (a) on file and available for public inspection 
in--
            (1) the office of the Director of the Bureau of Land 
        Management; and
            (2) the district office of the Bureau of Land Management 
        located in Barstow, California.
    (c) Right of Local Land Use Authority To Purchase Certain Land.--
            (1) In general.--Before a sale of land under subsection 
        (a), the Secretary shall provide the applicable local land use 
        authority an exclusive preemptive right, as determined under 
        State law, to purchase any right, title, or interest of the 
        United States in and to any portion of the parcels of land 
        identified as ``Area A'' and ``Area B'' on the map described in 
        subsection (a) that is located within the jurisdiction of the 
        local land use authority.
            (2) Timing.--A preemptive right under paragraph (1) shall 
        be in effect for a period of 30 days before any phased sale of 
        the land described in paragraph (1) is to be conducted under 
        subsection (f).
            (3) Authority.--During the period described in paragraph 
        (2), the local land use authority may purchase some or all of 
        the right, title, and interest of the United States, as 
        provided in subsection (a), in and to the land to be offered 
        for sale at fair market value, as determined by an appraisal 
        conducted by the Secretary.
            (4) Exercising right.--The preemptive right under paragraph 
        (1) shall be exercised on the immediate payment by the local 
        land use authority of the entire purchase price of the 
        applicable parcel of land.
            (5) Failure to pay.--Failure by the local land use 
        authority to purchase and pay for the right, title, and 
        interest of the United States in and to the land described in 
        paragraph (1) within the time period described in paragraph (2) 
        and to comply with any other terms and conditions as the 
        Secretary may require--
                    (A) shall terminate the preemptive right of the 
                local land use authority with respect to the right, 
                title, and interest offered for sale during that phase; 
                but
                    (B) shall not terminate the preemptive right of the 
                local land use authority with respect to subsequent 
                phased offers of the remaining right, title, and 
                interest in and to the land described in paragraph (1).
    (d) Withdrawal and Reservation.--
            (1) Withdrawal.--Subject to valid existing rights, the land 
        described in subsection (a) is withdrawn from--
                    (A) entry, appropriation, or disposal under the 
                public land laws;
                    (B) location, entry, and patent under the mining 
                laws; and
                    (C) operation of the mineral leasing, mineral 
                materials, and geothermal leasing laws.
            (2) Reservation.--In any sale or other disposal of land 
        under this section, there shall be reserved by the United 
        States the right of the United States to prospect for, mine, 
        and remove minerals from the conveyed land.
    (e) Consultation.--In addition to any consultation otherwise 
required by law, before initiating efforts to dispose of land under 
this section, the Secretary shall consult with the City of Victorville, 
the County of San Bernardino, and surface owners in the jurisdiction in 
which the land is located regarding the potential impact of the 
disposal and other appropriate aspects of the disposal.
    (f) Phasing of Sales.--
            (1) Area a land.--Not later than 1 year after the date of 
        enactment of this Act and subject to the preemptive right under 
        subsection (c), the Secretary shall offer for sale under 
        subsection (a) the land depicted as ``Area A'' on the map 
        described in subsection (a).
            (2) Area b land.--Not later than 2 years after the date of 
        enactment of this Act and subject to the preemptive right under 
        subsection (c), the Secretary shall offer for sale under 
        subsection (a) the land depicted as ``Area B'' on the map 
        described in subsection (a).
            (3) Remaining land.--After consulting with the City of 
        Victorville and the County of San Bernardino, the Secretary 
        may, not later than 20 years after the date of enactment of 
        this Act, offer for sale under subsection (a) the remaining 
        land identified for disposal in the West Mojave Land Management 
        Plan of 2006, except the land depicted as an ``Area of Critical 
        Environmental Concern'' in the map described in subsection (a).
            (4) Compliance with environmental requirements.--Land 
        disposal activities of the Secretary under this subsection 
        shall be consistent with all applicable environmental laws 
        (including regulations).
    (g) Determination of Fair Market Value.--
            (1) Area a land.--The fair market value of the land 
        described in subsection (f)(1) shall be based on an appraisal 
        of the fair market value of the land as of the date of 
        enactment of this Act, to be completed not later than 180 days 
        after the date of enactment of this Act.
            (2) Area b land.--The fair market value of the land 
        described in subsection (f)(2) shall be based on an appraisal 
        of the fair market value of the land as of the date that is 
        approximately 180 days before the date on which the land is 
        offered for sale in accordance with subsection (f)(2), to be 
        completed not later than 180 days before the date on which the 
        land is to be offered for sale.
    (h) Special Account.--
            (1) Establishment.--The gross proceeds of a sale of land 
        under subsection (a) shall be deposited in a special account 
        established in the Treasury, to be used in accordance with 
        paragraph (3).
            (2) Availability.--Amounts in the special account 
        established under paragraph (1) shall be available, without 
        appropriation and until expended--
                    (A) to the Secretary for purposes of subparagraphs 
                (A) through (E) of paragraph (3); and
                    (B) to the Secretary of Agriculture for purposes of 
                subparagraphs (B) and (C) of paragraph (3).
            (3) Disposition of proceeds.--Proceeds from a sale of land 
        described in subsection (a) shall be disbursed by the Secretary 
        in the following order of priority:
                    (A) As compensation to the Contract Holder under 
                section 4(b) for cancellation of the Contracts by the 
                Secretary.
                    (B) For the acquisition of private inholdings and 
                land interests in the Mojave National Preserve.
                    (C) For the acquisition of holdings and land 
                interests from willing sellers contained within the 
                Conceptual Area Protection Plan as identified in the 
                East Santa Clarita Land Conservation Concept Plan and 
                Implementation Strategy.
                    (D) For the acquisition of environmentally 
                sensitive land in the State of California in accordance 
                with section 6.
                    (E) For the reimbursement of costs incurred by the 
                California State Office and the Barstow Field Office of 
                the Bureau of Land Management for preparing for the 
                conveyance of land described in subsection (a), 
                including the costs of--
                            (i) surveys and appraisals;
                            (ii) complying with the National 
                        Environmental Policy Act of 1969 (42 U.S.C. 
                        4321); and
                            (iii) except as otherwise provided in 
                        subsection (a), complying with sections 202 and 
                        203 of the Federal Land Policy and Management 
                        Act of 1976 (43 U.S.C. 1712, 1713).
            (4) Limitation on use other than for compensation.--No 
        funds may be expended under this subsection for purposes of 
        subparagraphs (B) through (E) of paragraph (3) until the date 
        on which the Secretary has paid to the Contract Holder all 
        compensation provided for under section 4(b) for cancellation 
        of the Contracts by the Secretary.
            (5) Special account reserve for contract holder.--
                    (A) Limitation on disbursements.--Notwithstanding 
                paragraphs (3) and (4), amounts in the special account 
                established under paragraph (1) may be expended for the 
                purposes described in subparagraphs (B) through (E) of 
                paragraph (3) after compensation has been paid by the 
                Secretary to the Contract Holder as provided in 
                paragraphs (1), (2), and (3) of section 4(b), but 
                before the date on which the compensation required 
                under section 4(b)(4) has been paid to the Contract 
                Holder, if the amount agreed to under subparagraph (B) 
                is held as a reserve for payment to the Contract Holder 
                under section 4(b)(4).
                    (B) Determination of reserve.--
                            (i) In general.--For purposes of 
                        calculating the reserve amount referred to in 
                        subparagraph (A), the value of the compensation 
                        provided for in section 4(b)(4) is considered 
                        to be the amount agreed to by the Secretary and 
                        the Contract Holder, subject to the conditions 
                        that--
                                    (I) the amount shall not be less 
                                than 15 percent of the sum of the value 
                                of the elements of compensation 
                                described in paragraphs (1) through (3) 
                                of section 4(b); and
                                    (II) an agreement as to the amount 
                                of the reserve in subclause (I) shall 
                                be made before the disbursement of any 
                                funds from the special account for any 
                                matter other than compensation to the 
                                Contract Holder.
                            (ii) Effect.--Nothing in this paragraph 
                        reduces the amount of the compensation payable 
                        to the Contract Holder under section 4(b)(4).
            (6) Investment of special account.--Any amounts deposited 
        in the special account established under paragraph (1) shall--
                    (A) earn interest in an amount determined by the 
                Secretary of the Treasury on the basis of the current 
                average market yield on outstanding marketable 
                obligations of the United States with a maturity of 3 
                years; and
                    (B) be expended according to the provisions of this 
                section.
            (7) Procedures.--Except with respect to the disbursement of 
        funds as compensation to the Contract Holder for cancellation 
        of the Contracts, the Secretary shall coordinate the use of the 
        special account with the Secretary of Agriculture, the State of 
        California, units of local government, and other interested 
        persons, to ensure accountability and demonstrated results.

SEC. 6. ACQUISITIONS.

    (a) In General.--After the consultation process has been completed 
in accordance with subsection (b), the Secretary may acquire with the 
proceeds of the special account referred to in section 5(h) 
environmentally sensitive land and interests in environmentally 
sensitive land. Lands may not be acquired under this section without 
the consent of the owner thereof. Funds made available from the special 
account may be used for this purpose with any other funds made 
available under any other provision of law.
    (b) Consultation.--Before initiating efforts to acquire land under 
this section, the Secretary or the Secretary of Agriculture shall 
consult with the State of California and with counties and cities 
affected by such acquisition, including appropriate planning and 
regulatory agencies, and with other interested persons, concerning the 
necessity of making the acquisition, the potential impacts on State and 
local government, and other appropriate aspects of the acquisition. 
Consultation under this subsection is in addition to any other 
consultation required by law.
    (c) Administration.--On acceptance of title by the United States, 
land and interests in land acquired under this section that is within 
the boundaries of a unit of the National Forest System, National Park 
System, National Wildlife Refuge System, National Wild and Scenic 
Rivers System, National Trails System, National Wilderness Preservation 
System, or any other system established by Act of Congress, or any 
national conservation or national recreation area established by Act of 
Congress--
            (1) shall, notwithstanding any other provision of law, 
        become part of the unit or area without further action by the 
        Secretary or Secretary of Agriculture; and
            (2) shall be managed in accordance with all laws and 
        regulations and land use plans applicable to the unit or area.
    (d) Determination of Fair Market Value.--The fair market value of 
land or an interest in land to be acquired by the Secretary or the 
Secretary of Agriculture under this section shall be determined under 
section 206 of the Federal Land Policy and Management Act of 1976 (16 
U.S.C. 1716) and shall be consistent with other applicable requirements 
and standards.
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