1.This Act may be cited as the
Soledad Canyon High Desert, California
Public Lands Conservation and Management Act of
2011
.
2.
(a)The
Congress finds the following:
(1)
(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)
(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)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.
3.In this Act:
(1)The term City of Santa Clarita means the
City of Santa Clarita, California.
(2)The term City of Victorville means the
City of Victorville, California.
(3)The term County of San Bernardino means
the County of San Bernardino, California.
(4)The
term Contracts means the Bureau of Land Management mineral
contracts numbered CA–20139 and CA–22901.
(5)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)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 landThe 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)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)The
term Secretary means the Secretary of the Interior.
(10)The term special account means the account
in the Treasury of the United States established under section 5(h).
4.Cancellation of
the contracts; compensation to contract holder
(a)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)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)The full faith and credit of the United States is hereby
pledged to the payment of the compensation provided for in subsection
(b).
(2)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)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)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 cancellationFor 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 valueThe 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 describedThe 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)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)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)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)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)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).
5.Sale of land near
Victorville, California
(a)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)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)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)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)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)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 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)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)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)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)
(1)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)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)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 requirementsLand 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)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)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)
(1)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)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)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 compensationNo 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
disbursementsNotwithstanding
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)
(i)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)Nothing in this paragraph reduces the
amount of the compensation payable to the Contract Holder under section
4(b)(4).
(6)Investment of
special accountAny 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)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.
6.
(a)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)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)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 valueThe 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.