[House Document 105-290]
[From the U.S. Government Publishing Office]



105th Congress, 2d Session - - - - - - - - - - - House Document 105-290


 
             ONE PROPOSED RESCISSION OF BUDGETARY RESOURCES

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 A REPORT OF ONE PROPOSED RESCISSION OF BUDGETARY RESOURCES, TOTALING 
              $5.2 MILLION, PURSUANT TO 2 U.S.C. 683(a)(1)





    July 27, 1998.--Message and accompanying papers referred to the 
         Committee on Appropriations and ordered to be printed


To the Congress of the United States:
    In accordance with the Congressional Budget and Impoundment 
Control Act of 1974. I herewith report one proposed rescission 
of budgetary resources, totaling $5.2 million.
    The proposed rescission affects programs of the Department 
of the Interior.

                                                William J. Clinton.
    The White House, July 24, 1998.


                Proposed Rescission of Budget Authority

             Report Pursuant to Section 1012 of P.L. 93-344

    Agency: Department of the Interior.
    Bureau: Bureau of Land Management.
    Account: Mineral leasing and associated payments.
    New budget authority: $5,200,000.
    Other budgetary resources: $0.
    Total budget resources: 5,200,000.
    Amount proposed for rescission: 5,200,000.
    Proposed appropriations language: The budget authority 
provided by section 503 of Public Law 105-83 is hereby 
rescinded.
    Justification: The proposal would rescind $5,200 thousand 
for a conveyance to the State of Montana of Federal mineral 
rights. This amount was canceled under the Line Item Veto Act, 
which the Supreme Court ruled unconstitutional on June 25, 
1998.
    In connection with the Crown Butte/New World Mine 
acquisition (addressed in section 502 of P.L. 105-83), section 
503 provides for the uncompensated conveyance to the State of 
Montana of either $10 million in Federal mineral rights in 
Montana or the Federal mineral rights in Otter Creek Tracts 1, 
2, and 3 (in Montana).
    Section 503 would cause Federal taxpayers to lose their 
share of royalties from Federally-owned lands, which would 
normally be split between the State where the Federally-owned 
lands are located and the U.S. Treasury upon development of 
Federal mineral rights. The Federal share would be $5.2 
million. The section would set a costly, unnecessary precedent 
by requiring the Federal Government to ``compensate'' a State 
for a purchase or exchange of lands between the Federal 
Government and a willing seller. This precedent could, 
therefore, discourage innovative, cost-effective land 
protection solutions in the future.
    This proposed rescission applies to the budget authority 
under each of the alternative conveyances under sections 
503(a)(1) and 503(a)(2).
    This action is taken pursuant to the Antideficiency Act (31 
U.S.C. 1512).
    Estimated programmatic effect: As a result of the proposed 
rescission, net Federal outlays will decrease, as specified 
below. (Note.--The amount of the effect depends on whether 
mineral rights would have been conveyed under section 503(a)(1) 
or under section 503(a)(2). As discussed below, the 
Administration estimates that mineral rights would more likely 
have been conveyed under section 503(a)(1).) This will have a 
commensurate effect on the Federal budget deficit.

Effect on outlays

Outlay changes under rescission of section 503(a)(1):ars]
    1998......................................................    -1,300
    1999......................................................    -1,300
    2000......................................................    -1,300
    2001......................................................    -1,300
    2003................................................................
                    --------------------------------------------------------------
                    ____________________________________________________

      Total...................................................     5,200
                    ==============================================================
                    ____________________________________________________
Outlay changes under rescission of section 503(a)(2):
    1998................................................................
    1999................................................................
    2000................................................................
    2001................................................................
    2003......................................................    -1,352
                    --------------------------------------------------------------
                    ____________________________________________________

      Total...................................................    -1,352
                    ==============================================================
                    ____________________________________________________

    The negotiations requirement in section 503(b), and the 
legislative history of section 503, make clear that the intent 
of the section was that the Secretary of the Interior would 
convey $10 million in Federal mineral rights in the State of 
Montana under section 503(a)(1), rather than all Federal 
mineral rights in Otter Creek Tracts 1, 2, and 3 under section 
503(a)(2), and it is most likely that this is what the 
Secretary would have done.
    The discretionary budget authority in both section 
503(a)(1) and section 503(a)(2) is proposed to be rescinded, 
but because the Secretary could not have made both conveyances, 
and the dollar amount of discretionary budget authority for the 
intended and most likely conveyance under section 503(a)(1) 
exceeds the dollar amount of discretionary budget authority for 
the alternative conveyance under section 503(a)(2) through FY 
2003, the dollar amount of discretionary budget authority 
proposed for rescission above of $5,200,000 is based upon the 
most likely conveyance under section 503(a)(1).

                                
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