[Congressional Record Volume 140, Number 44 (Wednesday, April 20, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 20, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. AKAKA (for himself and Mr. Inouye):
  S. 2032. A bill to amend the Energy Policy and Conservation Act with 
respect to purchases from the Strategic Petroleum Reserve by entities 
in the insular areas of the United States, and for other purposes; to 
the Committee on Energy and Natural Resources.


                     emergency petroleum supply act

  Mr. AKAKA. Mr. President, today I am introducing the Emergency 
Petroleum Supply Act, a bill to ensure that insular areas of the United 
States have guaranteed access to the strategic petroleum reserve during 
an oil supply disruption. Senator Inouye has joined me in cosponsoring 
this legislation.
  Hawaii relies on oil for 90 percent of its energy needs, all of which 
arrives by ocean tanker. We are the most oil-dependent State in the 
Nation. That is why access to oil reserves during an energy emergency 
is so important to the people of Hawaii. An oil supply disruption could 
stifle our economy and cripple our largest employer the visitor 
industry.
  The legislation I am introducing today will safeguard Hawaii from the 
harsh economic consequences of an oil emergency. The Emergency 
Petroleum Supply Act is good energy policy and good economic policy for 
the State of Hawaii.
  The cold war may be over, but the world continues to be a dangerous 
place because of regional tension and conflict. The Middle East, which 
controls 65 percent of the world's oil supply, has seen its share of 
turmoil and will face instability in the years to come. Last week's 
tragic friendly fire incident, in which 26 American soldiers, U.N. 
peacekeepers, and Kurdish civilians were killed, serves as a grim 
reminder that Iraq, the country with the world's second largest proven 
oil reserves, is still a war zone.
  Three years ago, Iraq was the site of the largest United States 
military engagement since the Vietnam war. While we are all pleased the 
attempted occupation of Kuwait was unsuccessful, Iraq's aggression is a 
stark reminder of just how vulnerable we are to a cutoff of oil 
supplies.
  The thought of what Iraq could have achieved had its occupation of 
Kuwait been successful remains a frightening prospect. The combined oil 
reserves of Iraq and Kuwait total 260 billion barrels. Had these oil 
fields come under unified control, they would constitute one-fifth of 
the world's oil reserves. It is a sobering thought to imagine so vast 
an energy resource under the control of a despot like Saddam Hussein.
  The gulf war was not the first time in recent memory that we faced a 
major oil supply disruption, however. The invasion of Kuwait triggered 
the third disruption of world oil supplies in the past 20 years.
  Fortunately, we have a resource in place to insulate U.S. consumers 
from energy price shocks. When an oil crisis hits, we turn to the 
strategic petroleum reserve. This emergency reserve, located in 
Louisiana and Texas, currently holds 580 million barrels of crude.
  During the gulf crisis, our emergency reserves were called into 
action for the first time. On January 16, 1991, the day Operation 
Desert Storm was launched, the President authorized the first emergency 
drawdown of the petroleum reserve. Fortunately, the war with Iraq was 
short-lived and the SPR drawdown was limited.
  Had we been hit by a more severe oil supply disruption, these 
emergency reserves would certainly have protected the continental 
United States from serious economic harm. Hawaii and the territories 
would not have been so fortunate, however. Hawaii's only means of 
access to the strategic petroleum reserve is by tanker delivery from 
the Gulf of Mexico through the Panama Canal. Unlike the mainland, which 
has access to oil transported by pipeline, rail, and highway, all of 
Hawaii's crude oil and refined products arrive by ocean tanker. A total 
reliance on ocean deliveries makes Hawaii exceptionally vulnerable to a 
cutoff of oil supplies.
  As any grade school geography student can tell you, Hawaii is a long 
way from the Gulf of Mexico, especially when you have to transit the 
Panama Canal. The distance between the strategic petroleum reserve 
loading docks and Honolulu, by way of the canal, is 7,000 miles--more 
than one-quarter of the distance around the globe. The problems of the 
other Pacific territories are even more acute. American Samoa is 8,000 
miles by ship from the SPR facilities, and Guam is over 10,000 miles 
distant from these reserves. Puerto Rico and the Virgin Islands face a 
similar predicament.
  But distance alone is not the issue. When you add together the time 
between the decision to drawdown the reserves and the time for oil from 
the reserves to actually reach our shores, the seriousness of the 
problem emerges. it takes time to solicit and accept bids for SPR oil, 
time to locate and position tankers, time for tankers to wait in line 
to gain access to SPR loading docks, and more time to transit the canal 
to Hawaii. Obviously, Hawaii is at the end of a very, very long supply 
line. People overlook the fact that insular areas have a limited supply 
of petroleum products on hand at any one time. While Hawaii waits for 
emergency supplies to arrive, oil inventories could run dry and our 
economy would grind to a halt.
  An oil supply disruption is Hawaii's greatest nightmare. Studies 
commissioned by the State of Hawaii have determined that the delivery 
time for strategic petroleum reserve oil to Hawaii from the Gulf of 
Mexico would be as much as 53 days. This exceeds the State's average 
commercial working inventory by 23 days.
  As I have said before, when the Middle East sneezes, the mainland may 
catch a cold, but Hawaii comes down with double pneumonia. We have good 
reason to be concerned about the ability of the strategic petroleum 
reserve to serve Hawaii in a crisis. That is why I am introducing this 
legislation today.
  A study recently completed for the Department of Energy by the East-
West Center provides strong justification for granting Hawaii and the 
territories special access to SPR oil during an energy emergency. The 
East-West Center study concluded that a major oil supply disruption 
would have a much more severe impact on the Pacific islands than the 
rest of the United States. Although all of Asia would experience 
inflation and recession, the small economies of the insular areas would 
be virtually unprotected from volatile economic forces. While the rest 
of the United States does not have to rely on ocean transport from 
other nations for goods and services that are an essential part of 
daily living, the economies of Hawaii and the Pacific islands are 
heavily dependent on ocean-borne trade and international tourism.
  The East-West Center study thoroughly analyzed the effect of a major 
oil supply disruption on the economies of these islands. It found that 
although an oil price shock would be traumatic, the aftereffects would 
be even more severe. An oil shortage would lead to recession, which 
would trigger a decline in tourism and produce a continuing downward 
spiral for the island economies. Finally, the date indicate that such a 
downward spiral would last longer in island economies than in the much 
larger, broadly integrated mainland economy.
  According to the East-West Center, a secondary impact of a severe oil 
supply disruption would be significant price hikes, with a doubling or 
even tripling of prices as a likely outcome, and a corresponding 
increase in inflation. Tourism could fall by as much as 50 percent, 
causing a 5-percent job loss in the U.S. Pacific islands, or roughly 
28,000 jobs in Hawaii. A recession would likely follow, producing a 
much more severe downturn that could easily double the effects of the 
crisis. In other words, a severe oil supply disruption would create 
adverse downstream effects that would not be felt for several months, 
yet would continue for several years. The study paints a bleak portrait 
of the economic consequences of an oil emergency in Hawaii.
  The East-West Center study also provided an analysis of my proposed 
legislation. After examining the overall oil supply and demand 
situation within the Pacific basin, the inability of refineries to 
accept crude from nontraditional suppliers, and the full range of 
consequences that would result from a major oil supply disruption, the 
report concluded that the bill I am introducing today is ``an excellent 
proposal which would greatly reassure the islands that their basic 
needs would be maintained.''
  The objective of my bill can be summed up in one word: access. Hawaii 
and the territories, because of their tremendous distance from the Gulf 
Coast, need guaranteed access to the strategic petroleum reserve as 
well as priority access to the SPR loading docks.
  My bill addresses both these concerns. First, it provides a mechanism 
to guarantee an award of SPR oil. Companies serving insular areas would 
be able to submit binding offers for a fixed quantity of oil at a price 
equal to the average of all successful bids. This concept is modeled 
after the way the Federal Government sells Treasury bills. It would 
ensure that Hawaii and the territories have ready access to emergency 
supplies of oil at a price that is fair to the Government. Without this 
change, Hawaii's energy companies, and the population they serve, face 
the risk that their bid for SPR oil would be rejected and that oil 
inventories would run dry.
  The second component of my bill addresses the problems of delay. It 
grants ships delivering petroleum to Hawaii and the territories 
expedited access to strategic petroleum reserve loading docks. It would 
be a terrible misfortune if deliveries to Hawaii or some other oil-
starved territory were further delayed because the ship scheduled to 
carry emergency supplies was moored in the Gulf of Mexico, waiting in 
line for access to the SPR loading docks.
  As the East-West Center study demonstrates, energy security is an 
important economic issue for the Pacific islands. Hawaii may be the 
50th State, but we deserve the same degree of energy security that the 
rest of the Nation enjoys. It's simply a matter of equity. Hawaii's tax 
dollars help fill and maintain the strategic petroleum reserve, but 
Hawaii doesn't benefit from the energy security the reserve provides. 
That's not fair. And it's not right.
  I ask unanimous consent that the text of the bill and relevant 
portions of the East-West Center study be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2032

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Emergency Petroleum Supply 
     Act''.

     SEC. 2. PURCHASES FROM THE STRATEGIC PETROLEUM RESERVE BY 
                   ENTITIES IN THE INSULAR AREAS OF THE UNITED 
                   STATES.

       (a) General Provisions.--Section 161 of the Energy Policy 
     and Conservation Act (42 U.S.C. 6241) is amended by adding at 
     the end the following new subsection:
       ``(j)(1) With respect to each offering of a quantity of 
     petroleum product during a drawdown of the Strategic 
     Petroleum Reserve:
       ``(A) A purchaser located in an eligible insular area of 
     the United States, in addition to having the opportunity to 
     submit a competitive bid, may submit (at the time bids are 
     due) a binding offer, and shall on submission of the bid be 
     entitled to purchase a category of a petroleum product 
     specified in a notice of sale at a price equal to the average 
     of the successful bids made for the remaining quantity of 
     petroleum product within the category that is the subject of 
     the offering.
       ``(B) A vessel that arrives at a delivery line of the 
     Strategic Petroleum Reserve to take on a petroleum product 
     for delivery to a purchaser located in an eligible insular 
     area of the United States shall be loaded ahead of other 
     vessels waiting for delivery if the Governor or other chief 
     executive officer of the eligible insular area of the United 
     States certifies that delivery must be expedited to avert a 
     critical supply shortage in the eligible insular area of the 
     United States.
       ``(2)(A) In administering this subsection, and with regard 
     to each offering, the Secretary may impose the limitation 
     described in subparagraph (B) or (C) that results in the 
     purchase of the lesser quantity of petroleum product.
       ``(B) The Secretary may limit the quantity that any one 
     purchaser may purchase through a binding offer at any one 
     offering of \1/12\ of the total quantity of petroleum 
     products that the purchaser imported during the previous 
     year.
       ``(C)(i) Subject to clause (ii), the Secretary may limit 
     the quantity that may be purchased through binding offers at 
     any one offering to 3 percent of the offering.
       ``(ii) If the Secretary imposes the limitation stated in 
     clause (i), the Secretary shall prorate the quantity among 
     the purchasers who submitted binding offers.
       ``(3) In administering this subsection, and with regard to 
     each offering, the Secretary shall, at the request of a 
     purchaser--
       ``(A) if the quantity is less than 50 percent of 1 full 
     tanker load less than a whole-number increment of a full 
     tanker load of a petroleum product, adjust upward, to the 
     next whole-number increment of a full tanker load, the 
     quantity to be sold to the purchaser; or
       ``(B) if the quantity is 50 percent of 1 full tanker load 
     more than a whole-number increment of a full tanker load of a 
     petroleum product, adjust downward, to the next whole-number 
     increment of a full tanker load, the quantity to be sold to 
     the purchaser.
       ``(4)(A) Except as provided in subparagraph (B), petroleum 
     products purchased through binding offers pursuant to this 
     subsection shall be delivered to the eligible insular area of 
     the United States.
       ``(B) Purchasers may enter into exchange or processing 
     agreements that require delivery to other locations.
       ``(5) As used in this subsection:
       ``(A) The term `eligible insular area of the United States' 
     means the State of Hawaii, the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(B) The term `offering' means a solicitation for bids to 
     be submitted not later than any specified day for a quantity 
     or quantities of crude oil or petroleum product from a 
     delivery line of the Strategic Petroleum Reserve.''.
       (b) Effective Dates.--The amendments made by subsection (a) 
     shall remain in effect until such time as the Secretary 
     promulgates and implements regulations pursuant to section 3.

     SEC. 3. REGULATIONS.

       (a) Definitions.--For the purposes of this section--
       (1) the term ``insular area'' means the State of Hawaii, 
     the Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
     American Samoa, and the Commonwealth of the Northern Mariana 
     Islands; and
       (2) the term ``eligible purchaser'' means--
       (A) an insular area government; or
       (B) a person who owns a refinery that--
       (i) is located in an insular area; or
       (ii) has supplied refined petroleum product to an insular 
     area within the year immediately preceding the sale, or 
     within another period the Secretary determines to be 
     representative of recent imports to the insular area.
       (b) In General.--The Secretary shall issue regulations that 
     provide benefits for insular areas during the sale of 
     petroleum product withdrawn from the Strategic Petroleum 
     Reserve.
       (c) Content.--The regulations issued under subsection (a)--
       (1) shall permit an eligible purchaser to purchase 
     petroleum product--
       (A) at a price equal to the average price of comparable 
     quality petroleum product sold at the contemporaneous 
     competitive sale of petroleum product withdrawn from the 
     Strategic Petroleum Reserve; or
       (B) if no comparable quality petroleum product sold at the 
     contemporaneous competitive sale, at a price estimated by the 
     Secretary to be equivalent to the price described in 
     subparagraph (A);
       (2) shall provide for priority cargo lifting of petroleum 
     product purchased by an eligible purchaser at a competitive 
     sale or under paragraph (1);
       (3) may limit the amount of petroleum product that may be 
     purchased under paragraph (1) during a sales period--
       (A) by an eligible purchaser, to no less than \1/12\ of the 
     total amount of petroleum product that the purchaser brought 
     into an insular area during the year immediately preceding 
     the sale or during another period the Secretary determines to 
     be representative of recent imports to the insular area; or
       (B) by all eligible purchasers, to no less than 3 percent 
     of the amount of petroleum product offered for sale during 
     the sales period prorated among the eligible purchasers;
       (4) may provide that, at the request of a purchaser, the 
     quantity of petroleum product to be sold to the purchaser may 
     be adjusted upward or downward, to the next whole-number 
     increment of a full tanker load, if the quantity that 
     otherwise would be sold is less than a whole-number 
     increment;
       (5) may establish procedures for qualifying an entity as an 
     eligible person before a sale of petroleum product withdrawn 
     from the Strategic Petroleum Reserve;
       (6) may require an eligible purchaser to comply with 
     financial and performance responsibility requirements applied 
     to offerors in competitive sale;
       (7) except as otherwise provided by this subsection, may 
     require an eligible purchaser who purchases petroleum product 
     under paragraph (1) to comply with standard contract 
     provisions applied to purchasers at competitive sales;
       (8) may ensure, to the extent practicable, that an eligible 
     purchaser who receives benefits under paragraph (1) or (2) 
     passes on the benefits to an insular area;
       (9) may require an eligible purchaser who receives benefits 
     under paragraph (1) or (2) to furnish the Secretary with 
     documents and other appropriate information to determine 
     compliance with this subsection; and
       (10) may establish procedures for imposing sanctions on an 
     eligible purchaser who receives benefits under paragraph (1) 
     or (2) and who does not comply with the requirements of this 
     subsection.
       (d) Plan Amendments.--No amendment of the Strategic 
     Petroleum Reserve Plan or the Distribution Plan contained in 
     the Strategic Petroleum Reserve Plan is required for any 
     action taken under this subsection if the Secretary 
     determines that an amendment to the plan is necessary to 
     carry out this section.
       (e) Administrative Procedure.--Regulations issued to carry 
     out this subsection shall not be subject to the requirements 
     of section 523 of the Energy Policy and Conservation Act (42 
     U.S.C. 6393) or of section 501 of the Department of Energy 
     Organization Act (42 U.S.C. 7191).
                                  ____


      Energy Vulnerability Assessment for the U.S. Pacific Islands


        Oil Supply Disruption Scenarios For the Pacific Islands

       The following sections describe the potential oil supply 
     disruptions scenarios provided by the USDOE for this report, 
     the likely impacts of these supply disruptions on the island 
     economies, and selected response issues. The discussions 
     parallel those in chapters 4 to 7, which also discuss 
     vulnerability response options for the individual island 
     entities. The response issues which are discussed below 
     reflect the larger economies of scale which can be gained by 
     linking Guam, the CNMI, Palau, and American Samoa. Hawaii and 
     the Federated States of Micronesia and the Repubic of the 
     Marshall Islands should be included in any regional groupings 
     because they are also part of the same oil supply system. 
     Unfortunately, the terms of reference for this report did not 
     allow for assessment of these island entities.
       Three oil supply disruption scenarios for the Pacific 
     islands are discussed below and evaluated with respect to 
     their potential impacts. Figures 2.16, 2.17, and 2.18 provide 
     the basis for the assessment. The three scenarios are all 
     estimated to last six months and include:
       Scenario I: Major disruption caused by major political 
     turmoil affecting Middle Eastern and Asian producers with a 
     net loss of 4.5 MMBD (9.0 MMBD production loss minus 4.5 MMBD 
     drawdown of global strategic petroleum reserve).
       Scenario II: Medium-scale disruption caused by simultaneous 
     upheaval in West African and Latin American producers with a 
     net loss 4.5 MMBD (production loss of 6.0 MMBD minus SPR 
     drawdown of 1.5 MMBD).
       Scenario III: Minor disruption based on limited upheaval in 
     the Middle East with a loss of 2.0 MMBD (production loss of 
     4.3 MMBD minus production increase by other countries of 2.3 
     MMBD).
       Before discussing the specific scenarios, several 
     historical reference points should be noted. First, the Asian 
     market is a net importer of oil sourced largely from the 
     Middle East. Second, during previous oil crises, Asian 
     producers such as Indonesia and Malaysia have not diverted 
     supplies. Instead, Asian producers have generally given 
     preference to traditional markets, including Singapore, for 
     their products. Third, most Asian refineries such as those in 
     Singapore are configured to process Middle Eastern crudes and 
     are not as well adapted to refining the lighter, sweeter West 
     African crudes and the heavier, more sour Latin American 
     crudes. In other words, Asia's refining capacity is geared 
     towards supplies from the Middle East, and substitutes are 
     not readily available or easily incorporated. The scenarios 
     are discussed below beginning in reverse order.

                     Scenario III: Minor disruption

       Under Scenario III, there would be no redirection of Asian 
     oil supplies. Impact on U.S. West Coast supplies would be 
     negligible. However, there would be a drop of 10 percent in 
     supplies for Singapore (approximately 100 to 150 MBD), and a 
     similar reduction in Australian and New Zealand crude 
     imports. The result is an anticipated shortfall of 
     approximately 10 percent for the Pacific islands region.
       The effects of this 10 percent shortfall are considered 
     minimal. Oil price rises would be very modest and there 
     should be no appreciable negative secondary effects for the 
     islands region such as a major decline in tourism.
       No official response measures would need to be instituted. 
     However, it is recommended that monitoring of supplies and 
     prices should be carried out. It is also recommended that 
     utilities, the oil industry, and governments promote energy 
     conservation programs, including voluntary measures by the 
     population to reduce consumption of electricity and gasoline.

                     Scenario II: Medium disruption

       Although the volume of oil lost to the market is 
     considerable (4.5 MMBD), because the West African and Latin 
     American producers are linked to other markets, the Asia-
     Pacific region would be only slightly affected. There would 
     be some redirection of Middle Eastern supplies, but it is 
     anticipated that the net effect would lead to only a 10 
     percent decrease in supplies for Singapore, Australia and New 
     Zealand. Similarly, the effect on the U.S. West Coast would 
     be minimal.
       The results and response measures for Scenario II are 
     identical to those described above for Scenario III.

                      Scenario I: Major disruption

       A global net loss of 4.5 MMBD based on major political 
     upheaval in the Middle East and Asia and includes a total 
     loss of 2.5 MMBD from Asia oil producers would affect various 
     Pacific Rim markets very differently. The direct impact on 
     U.S. West Coast supplies would be fairly limited (e.g., 5 
     percent or less) because imports have only a small role in 
     that market. The direct and indirect effects on supplies to 
     Australia and New Zealand should be relatively modest, 
     approximating a 10 percent decline. The Singapore refiners, 
     however, would be severely affected.
       In this scenario, Singapore would experience a 30 percent 
     loss in Asian supplies. The cutback in Middle Eastern 
     production would result in an additional 20 percent decrease. 
     The combined loss of 50 percent would greatly affect the 
     islands region both directly and indirectly.
       Directly, the islands region would lose at-least 50 percent 
     of its supplies from Singapore. Australia would be able to 
     provide some additional supplies, but it would also have to 
     compensate for its own loss of supplies. The net loss to the 
     islands region could well be in the range of 25 to 50 
     percent.
       A secondary impact would be significant price hikes. Under 
     Scenario I, spot prices on the Singapore market would soar. 
     Price doubling and even tripling would be likely outcomes. In 
     the 1979/80 period, the crisis centered on Iran led to an 
     additional 20 percent increase in prices. The short-term 
     consequences of the 1979 oil price rise lead to inflation 
     rates of 7.5 percent in Japan, 11 percent in Australia, 15 
     percent in Fiji and nearly 30 percent in Tonga and Vanuatu. 
     In other words, inflation rates in some of the islands nearly 
     doubled. If the 1979 experience is applied, it would be 
     reasonable to anticipate a near doubling of inflation rates 
     for Guam, the CNMI and Palau.
       Compounding the direct supply and price effects of Scenario 
     I, the political complications of the oil supply disruption 
     have to be considered. Following the onset of the recent 
     Persian Gulf War, the Iraqi President threatened to attack 
     U.S. territory and economic interests throughout the world, 
     and there had been several reports of terrorist activity by 
     Iraqis in Asia which heightened concern. As a result, Guam, 
     the CNMI, and Hawaii experienced a downturn in tourism 
     immediately following the outbreak of the 1991 Gulf War 
     because tourists were frightened to fly to U.S. territory. 
     Whether fact or only perception, people reduce their 
     international travel even to relatively ``safe'' destinations 
     during crisis periods: if there is political upheaval in a 
     major Middle Eastern or Asian nation, international business 
     and tourist travel will be restricted in order to reduce the 
     vulnerability to terrorist attacks.
       Interestingly, the number of tourists to Guam and the CNMI 
     began to revive soon after the Gulf War and by early 1992 
     tourist arrivals were at record levels. However, in September 
     1992, Typhoon Omar struck Guam and the CNMI and was followed 
     by several other typhoons. The result was a drop of nearly 45 
     percent in the level of Guam's tourist arrivals, a loss of 
     1,500 jobs, and a substantial decline in tax revenues, all of 
     which have been greatly compounded by the continuing slump in 
     the Japanese economy.
       These effects would probably be similar to the effects of 
     an oil supply disruption under Scenario I. Although difficult 
     to predict with any level of certainty, tourist arrivals 
     could fall sharply (by as much as 50 percent) if a political 
     upheaval in Asia elevated fears of international terrorist 
     activity and/or resulted in higher travel costs. The near-
     term effects would be a loss of jobs by roughly 5 percent and 
     a fall in tax revenues by a similar level. However, if a 
     recession were to follow, and this would be a likely outcome, 
     then the downturn would be much more severe and could easily 
     double the effects of the crisis.
       With Scenario I, it is very likely that in addition to oil 
     supply shortfalls, oil price increases, inflation, and 
     reduced levels of international tourism resulting from the 
     political upheaval causing the oil supply disruption, a 
     recessionary period in the major economies would ensue. The 
     effects of a major recession would again greatly affect the 
     island economies through reduced levels of tourism and 
     reduced demand for their exports, mainly fresh and canned 
     seafoods. As an example, the 1973/74 oil price rise led to 
     global recession, including a severe downturn in Australia 
     which greatly reduced the levels of Australian tourists to 
     Fiji. In other words, a severe oil supply disruption creates 
     downstream effects which are not felt for several months yet 
     may continue for several years.
       Two key questions emerge under Scenario I. The first is 
     whether the islands would experience more severe impacts than 
     the rest of the United States. Although all of Asia would 
     experience inflation and recession, the islands' small open 
     economies would be virtually unprotected from the global 
     market: nearly all food and all medicine are imported. The 
     economies are nearly totally dependent on off-island trade 
     and international tourism; with the exception of Hawaii, the 
     rest of the United States does not have to rely on ocean 
     transport and other nations for essential goods and 
     services. In sum, there would be no territory of the 
     United States more severely affected by a major Asian oil 
     supply disruption than the Pacific islands.
       The second question is how to respond with short-term 
     measures to meet basic demands for petroleum. Oil price and 
     supply monitoring and voluntary conservation programs would 
     be insufficient responses to a disruption of this magnitude. 
     With respect to the oil supply, the U.S. West Coast could 
     divert some of its supplies to the islands. The Australian 
     arrangement for the South Pacific islands may provide a 
     useful guide. In the event of an oil supply disruption which 
     results in a net market loss of crude oil or petroleum 
     products of 7 percent of the total International Energy 
     Agency (IEA) market, the IEA member may elect to activate the 
     Emergency Oil Sharing System, the objective of which is to 
     ensure fair sharing of available supplies among the IEA group 
     of countries (the OECD minus France). As a member of the IEA, 
     Australia is committed to take certain demand restraint 
     measures should the IEA Emergency Oil Sharing Scheme go into 
     effect. The demand restraint is measured as a percentage 
     decrease in total consumption, including traditional exports. 
     This means that if a 10 percent demand restraint measure is 
     instituted, then Australia has to cut its combined own 
     consumption and traditional exports by 10 percent.
       The Australian arrangement covers the independent island 
     nations sourced from Australia. It does not cover American 
     Samoa or any of the North Pacific nations and territories 
     sourced via Guam, including the Federated States of 
     Micronesia and the Republic of the Marshall Islands. These 
     nations and territories either have to secure emergency 
     supplies via Singapore or from a nontraditional supplier, the 
     United States.
       The United States via its military infrastructure has 
     considerable levels of stocks in the Asia-Pacific region as 
     well as the shipping capacity to deliver supplies. However, 
     as Figure 3.2 shows, the military is cutting back on its 
     commercially leased storage capacity and is also shutting 
     down some of its own storage facilities in certain locations.
       Another potential source of crude petroleum is Papua New 
     Guinea whose oil production is now at 135,000 b/d. Currently 
     refined throughout the Asia Pacific region, this crude 
     resource could provide a substantial margin of safety for the 
     Pacific islands. A 30,000 b/d refinery has been approved by 
     the government and could be operating in 1996.
       Through the supply capacities of the oil companies 
     operating in the region, other regional suppliers, and the 
     U.S. government (Strategic Petroleum Reserve and the 
     military), the Pacific islands should be able to receive 
     emergency supplies. It is possible that some type of formal 
     assurance to the island governments is required. Currently 
     being considered for legislation in the U.S. Congress is a 
     proposal which would guarantee the U.S. Pacific islands 
     including Hawaii a percentage drawdown of the national SPR if 
     emergency measures were placed in effect. This guarantee 
     would ensure access to oil supplies for the islands. Market 
     prices would have to be paid, but basic services could be 
     maintained. Not guaranteed is transport for the oil supplies. 
     However, preliminary indications are that tankers could be 
     acquired, albeit at market rates which would be high during 
     crisis periods. This is an excellent proposal which would 
     greatly reassure the islands that their basic needs would be 
     maintained.
                                 ______

      By Mr. BAUCUS (for himself and Mr. Burns):
  S. 2033. A bill to provide for the exchange of certain lands within 
the State of Montana; to the Committee on Energy and Natural Resources.


                  LOST CREEK LAND EXCHANGE ACT OF 1994

 Mr. BAUCUS. Mr. President, I am introducing the Lost Creek 
Land Exchange Act of 1994. This legislation exchanges 10,800 acres in 
the Deerlodge and Gallatin National Forests and the opportunity to 
harvest approximately 3.5 million boardfeet of timber in the Deerlodge 
National Forest for 18,300 acres of land that is currently owned by 
Brand S. Lumber Co., of Livingston, MT.
  This legislation is of real benefit to Montanans and the millions of 
Americans who visit our national forest system each year. Specifically, 
this legislation accomplishes three very important objects.
  First, it brings into public ownership the 14,500 acre Lost Creek 
Reserve. Located north of Anaconda in the Deerlodge National Forest, 
the Lost Creek Reserve is an outstanding place. The Lost Creek Reserve 
is home to Rocky Mountain Bighorn sheep, mountain goats, elk, moose, 
and deer, and it is literally right out the backdoor for the community 
of Anaconda. Acquiring this property means convenient public access to 
some of the best wildlife habitat and hunting in the Rocky Mountains.
  Second, this legislation completes consolidation of lands in the 
Gallatin Range Wilderness study area, Gallatin National Forest. The 
Gallatin National Forest surrounds Yellowstone National Park, and 
serves as critical habitat for Yellowstone's elk, deer, moose, and 
grizzly bear. Our best trout streams like the Yellowstone and Gallatin 
Rivers are fed by streams that originate high in the Gallatin Range. 
The outstanding scenery and wildlife opportunities in the Gallatin are 
not lost on the public--the Gallatin has the highest visitor use of any 
forest in Montana.
  Congress has already taken two very important steps to consolidate 
public ownership in the Gallatin Range. In 1989-90, Congress 
appropriated a total of $7 million to purchase lands in the Gallatin 
National Forest that are critical winter range for Yellowstone's elk 
herds. This last Congress, President Clinton signed into law the 
Gallatin Range Consolidation and Protection Act. Under this act, the 
Forest Service will acquire over 70,000 acres of land in the Gallatin 
Range.
  The Lost Creek Land Exchange Act completes what has been a concerted 
effort by many groups over many decades. The Forest Service will 
acquire 4,485 acres of land in the Gallatin Range, of which, 3,205 is 
within the boundaries of the Gallatin Wilderness study area.
  Third, this legislation creates jobs by making timber available for 
Brand S Lumber Co. to harvest in an environmentally responsible manner. 
Brand S has gained a good deal of respect in Montana for their 
dedication to responsible timber management. In this legislation, the 
land and timber rights that Brand S will receive are specifically 
governed by Best Management Practices developed by the Forest Service. 
Additionally, Brand S has agreed to work with the Nature Conservancy 
and place conservation easements on the lands that they acquire in the 
Gallatin National Forest to protect against future commercial 
development.
  This legislation is the product of considerable work by Brand S 
Lumber Co., local sportsmen, conservationists, the Montana Department 
of Fish, Wildlife and Parks, and the U.S. Forest Service. In the end, 
these groups pulled together and came up with a land exchange that 
makes everyone a winner. Time is short, however, and the Congress must 
act as quickly as possible to ensure that these important lands are 
brought into public ownership. I urge my colleagues to recognize the 
positive nature of this legislation and work with me to pass it into 
law in short order.
  Mr. President, I ask unanimous consent that land exchange 
specifications and the full text of the bill be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2033

       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 ``Lost Creek Land Exchange Act 
     of 1994.''

     SEC. 2. LAND EXCHANGE.

       (a) General.--Notwithstanding any other provisions of law, 
     the Secretary of Agriculture (referred to in this Act as the 
     ``Secretary'') is authorized and directed to acquire by 
     exchange certain lands and interests in lands owned by the 
     Brand S Corporation, its successors and assigns, (referred to 
     in this Act as the ``Corporation''), located in the Lost 
     Creek area of in Deerlodge National Forest and within the 
     Gallatin National Forest.
       (b) Offer and Acceptance of Land.--
       (1) Non-federal land.--If the Corporation offers fee title 
     that is acceptable to the United States to approximately 
     18,300 acres of land owned by the Corporation and available 
     for exchange, as depicted on the map entitled ``Brand S/
     Forest Service Land Exchange Proposal,'' dated March 1994, 
     and described in the ``Land Exchange Specifications'' 
     document pursuant to paragraph (b)(3), the Secretary shall 
     accept a warranty deed to the land.
       (2) Federal land--Upon acceptance by the Secretary of title 
     to the Corporation's lands pursuant to paragraph (b)(1), and 
     subject to reservations and valid existing rights, the 
     Secretary of the Interior shall convey, by patent, the fee 
     title to approximately 10,800 acres on the Deerlodge and 
     Gallatin National Forests, and by timber deed, the right to 
     harvest approximately 3.5 million board feet of timber on 
     certain Deerlodge National Forest lands, as depicted on the 
     map referenced in paragraph (b)(1) and further defined by the 
     document referenced in paragraph (b)(3).
       (3) Agreement.--The document entitled ``Brand S/Forest 
     Service Land Exchange Specifications'' which was jointly 
     developed and agreed to by both parties and defines the non-
     Federal and Federal lands involved in this exchange, and 
     includes legal descriptions of exchange lands and 
     interests, an Access Resolution Agreement and other 
     agreements is hereby incorporated by reference.
       (c) Title.
       (1) Review of title.--Within 60 days of receipt of title 
     documents from the Corporation, the Secretary shall review 
     the title for the non-Federal lands described in paragraph 
     (b) and determine whether.--
       (A) the applicable title standards for Federal land 
     acquisition have been satisfied or the quality of title is 
     otherwise acceptable to the Secretary;
       (B) all draft conveyances and closing documents have been 
     received and approved; and
       (C) a current title commitment verifying compliance with 
     applicable title standards has been issued to the Secretary.
       (2) Conveyance of title.--In the event the quality of title 
     does not meet Federal standards or is otherwise unacceptable 
     to the Secretary, the Secretary shall advise the Corporation 
     regarding corrective actions necessary to make an affirmative 
     determination. The Secretary, acting through the Secretary of 
     the Interior, shall affect the conveyance of lands described 
     in paragraph (b)(2) not later than 90 days after the 
     Secretary has made an affirmative determination.
       (d) Resolution of Public Access.--In accordance with the 
     terms of the Access Resolution Agreement referenced in 
     paragraph (b)(3), the Secretary shall secure legal pubic road 
     access to Gallatin National Forest System lands in: (1) the 
     Eightmile Creek area and (2) the Miller Gulch-Fridley Creek-
     Dry Creek area.

     SEC. 3. GENERAL PROVISIONS.

       (a) Maps and Documents.--The maps referred to in section 2 
     are subject to such minor corrections as may be agreed upon 
     by the Secretary and the Corporation. The Secretary shall 
     notify the Committee on Energy and Natural Resources of the 
     United States Senate and the Committee on Natural Resources 
     of the United States House of Representatives of any 
     corrections made pursuant to this paragraph. The maps and 
     documents described in section 2(b)(1) and (3) shall be on 
     file and available for public inspection in the office of 
     Chief, Forest Service, USDA.
       (b) National Forest System Lands.--
       (1) In general.--All lands conveyed to the United States 
     under this Act shall be added to and administered as part of 
     the Deerlodge or Galatin National Forests, as appropriate, of 
     the National Forest System by the Secretary in accordance 
     with the laws and regulations pertaining to the National 
     Forest System.
       (2) Wilderness study area acquisitions.--Lands acquired 
     within the Hyalite-Porcupine-Buffalo Horn Wilderness Study 
     Area shall be managed to maintain their wilderness character 
     and potential for inclusion in the National Wilderness 
     Preservation System in accordance with the Montana Wilderness 
     Study Act of 1977 (16 U.S.C. 1132 note). Subject to valid 
     existing rights, lands acquired within the Hyalite-Porcupine-
     Buffalo Horn Wilderness Study Area shall not be available for 
     entry, appropriation, or disposal under the public land laws; 
     for location, entry, and patent under the mining laws; or for 
     disposition under the mineral and geothermal leasing laws, 
     including all amendments thereto, until such time as the 
     Congress decides on the wilderness status.
       (c) Valuation.--The values of the lands and interests in 
     lands to be exchanged under this Act and described in section 
     2(b) are deemed to be of approximately equal value.
       (d) Hazardous Material Liability.--The United States of 
     America, including its departments, agencies, and employees, 
     shall not be liable under the Comprehensive Environmental 
     Response, Compensation and Liability Act, as amended (herein 
     referred to as CERCLA), 42 USC 9601 et seq., or the Clean 
     Water Act, 33 USC 1251, et seq., or any other Federal, State 
     or local law, solely as a result of acquiring an interest in 
     the Lost Creek Tract or due to circumstances or events 
     occurring before acquisition, including any release or threat 
     of release of hazardous substances.
                                  ____


  Draft--Brand-S/Forest Service Land Exchange Specifications--Brand-S 
                       Land Exchange Act of 1994


                                 part i

       Property that Brand S Corporation will offer conveyance to 
     the United States: Principal Meridian--Montana.

                              Deerlodge NF

Lost Creek Tract:
  T. 5 N., R. 11 W:
    Sec. 6, all fractional.......................................638.69
    Sec. 7, Lots 1-10 inclusive, E\1/2\NE\1/4\, NW\1/4\NE\1/4\, 
      NE\1/4\NW\1/4\, SE\1/4\SW\1/4\ NE\1/4\SE\1/4\..............573.82
    Sec. 8, SW\1/4\NE\1/4\, W\1/2\, SE\1/4\......................520.00
    Sec. 9, lots 6, 7, NW\1/4\SW\1/4\, S\1/2\SW\1/4\ (includes MS 
      4170)......................................................239.56
    Sec. 16, all fractional (excludes HES 80, includes portions of 
      MS 6542 & MS 6577..........................................630.28
    Sec. 17, all fractional (includes portions of MS 6542 & MS 65634.86
    Sec. 18, Lots 1-8 inclusive, NE\1/4\NE\1/4\, S\1/2\NE\1/4\, E\1/
      2\NW\1/4\NE\1/4\SW\1/4\N\1/2\SE\1/4\.......................630.49
    Sec. 20, lot 1, NW\1/4\NE\1/4\, S\1/2\NE\1/4\, SE\1/4\ (includes 
      portion of MS 6577)........................................320.00
    Sec. 21, lot 1, NE\1/4\, NE\1/4\NW\1/4\, SW\1/4\NW\1/4\, N\1/
      2\SE\1/4\NW\1/4\, SW\1/4\SE\1/4\NW\1/4\, NW\1/4\NE\1/4\SW\1/
      4\, W\1/2\SW\1/4\, SE\1/4\ (includes portion of MS 6577)...560.00
    Sec. 22, lots 1-8 inclusive, NW\1/4\NE\1/4\, S\1/2\NE\1/4\, W\1/
      2\W\1/2\...................................................563.48
      T. 5 N., R. 12 W:.............................................
    Sec. 1, all fractional.......................................640.08
    Sec. 2, Lots 1-4 inclusive, S\1/2\N\1/2\, S\1/2\ less MS 5023633.04
    Sec. 3, lots 1, 2, S\1/2\NE\1/4\, SE\1/4\....................320.07
    Sec. 11, all.................................................640.00
    Sec. 12, all.................................................640.00
    Sec. 13, E\1/2\..............................................320.00
    Sec. 14, lots 10, 11, W\1/2\NW\1/4\, SW\1/4\, MS 9040........330.06
  T. 6 N., R. 11 W:
    Sec. 30, lots 3, 4, E\1/2\SW\1/4\, SE\1/4\...................314.32
    Sec. 31, all fractional......................................628.56
  T. 6 N., R. 12 W:
    Sec. 22, SE\1/4\NE\1/4\, E\1/2\SE\1/4\.......................120.00
    Sec. 23, SW\1/4\NW\1/4\, SW\1/4\, SW\1/4\ SE\1/4\............240.00
    Sec. 25, SW\1/4\NE\1/4\, NW\1/4\NW\1/4\, S\1/2\NW\1/4\, S\1/2480.00
    Sec. 26, all.................................................640.00
    Sec. 27, all.................................................640.00
    Sec. 34, all.................................................640.00
    Sec. 35, all less MS 5023....................................630.44
    Sec. 36, all.................................................640.00
                                                             __________

      Subtotal to Deerlodge NF................................13,807.75
                                                               ==========
_______________________________________________________________________


                              Gallatin NF

West Pine Tract:
  T. 4 S., R. 7 E:
    Sec. 1, all fractional.......................................629.53
    Sec. 11, all.................................................640.00
    Sec. 13, all fractional......................................642.64
  T. 4 S., R. 8 E:
    Sec. 7, all..................................................640.00
Mud Lake Tract:
  T. 5 S., R. 7 E:
    Sec. 5, all fractional.......................................654.44
    Sec. 7, all fractional.......................................630.20
    Sec. 9, all..................................................640.00
                                                             __________

      Subtotal to Gallatin NF..................................4,476.81
                                                               ==========
_______________________________________________________________________


       Comprising 18,284.56 acres, more or less
       Land reservations of Brand S Corporation and exceptions to 
     title:


                              reservations

       Reserving to Brand S Corporation, its successors and 
     assigns, until five (5) years from the date legislation is 
     enacted, the right to harvest and remove up to 60% of the 
     existing merchantable timber from sections 1 and 7 of the 
     West Pine Tract. This is more specifically defined as a right 
     to harvest up to a total of 1383 thousand board feet (MBF) 
     from section 1, T.4 S., R.7 E. and section 7, T.4 S., R.8 E. 
     Exercise of these rights is subject to the Secretary's Rules 
     and Regulations in 36 CFR 251.14 and the Timber Harvest 
     Guidelines (Exhibit A).


                           outstanding rights

       1. The rights of the United States and third parties 
     recited in the patents from the United States.
       2. An undivided one-fourth of all minerals, including oil 
     and gas as contained in deed to Edward Mott and June Mott 
     dated March 28, 1961, recorded February 17, 1965 in Volume 
     107, pages 481-482, records of Park County, MT. Affects all 
     lands in T. 4 S., Rs. 7 and 8 E.
       3. All mineral rights and mineral interest whatsoever which 
     were owned of record by George E. Lefgren and Fern Lefgren on 
     September 20, 1968 as contained in Contract for Deed dated 
     September 20, 1968, recorded February 1, 1984 in Roll 46, 
     pages 134-137, records of Park County, MT. Affects all lands 
     in T. 5 S., R. 7 E.
       4. Provisions as contained in deed to Mt. Haggin Livestock, 
     Inc. recorded in Book 41, page 390, Granite County, MT. 
     Affects all lands in T. 6 N., R. 12 W.
       5. An easement for road purposes as contained in deed to 
     Story Ranch Corporation, recorded January 3, 1975 on Roll 10, 
     pages 1331-1333, Park County, MT. Affects section 9, T. 5 S., 
     R. 7 E.
       6. Right of adjacent landowners to water portions of the 
     premises as an incident to their irrigation processes as 
     contained in deed to YVR Partnership recorded June 7, 1978 on 
     Roll 22, pages 1054-1058, Park County, MT. Affects all lands 
     in T. 4 S., Rs.7 E. and 8, E; T. 5 S., R. 7 E.
       7. Easement for a public road granted to the State of 
     Montana recorded in Book 42, page 187, Deer Lodge County, MT. 
     Affects section 9, T. 5 N. R. 11 W.
       8. Easement for a public road granted to the State of 
     Montana recorded in Book 42, page 169, Deer Lodge County, MT. 
     Affects section 9, T. 5 N., R. 11 W.
       9. Lack of legal access.


                           other encumbrances

       1. Unrecorded Consent for Access to EPA, including its 
     contractors, for purposes of obtaining a hazardous materials 
     inventory.
       Consent for access will be terminated and an authorization 
     for access will be issued by the Forest Service to EPA, 
     including its contractors, at closing.
       2. Grazing authorization (unwritten).
       Disposition?
       3. Improvements.
       Brand S Corporation will remove from the involved non-
     Federal lands, all structures and improvements located on two 
     sites in the SW\1/4\NE\1/4\ of Sec. 36, T. 6 N., R. 12 W. and 
     in the SW\1/4\SW\1/4\ of sec. 2, T. 5 N., R. 12 W. Such 
     removal shall occur prior to acceptance of title by the 
     Secretary.
       4. Water right.
       (1) Source: Unnamed Trib., Crystal Creek, Water Rights No. 
     43B-W-194420-00, T. 5 S., R. 7 E, Sec. 9.
       (2) Source: W. Pine Creek, Water Rights No. 43B-E-085045-
     00, T. 4 S., R. 7 E., Sec. 13.
       Need disposition from Mike Atwood.
       6. Delinquent general county taxes for second half of 1992, 
     1993, 1994 and 1996, if applicable.
       Appropriate arrangements will be made to insure payment of 
     these taxes.
       6. Mortgage to secure an indebtedness recorded June 8, 1992 
     in Book 85, page 253, Mortgagor. Brand S. Corporation; 
     Mortgagee: United States National Bank of Oregon. Affects all 
     lands in Deer Lodge County, MT.
       This item will be satisfied and the mortgage released.
       7. Mortgage to secure an indebtedness recorded April 20, 
     1993 on Roll 92, pages 874-875. Mortgagor: Brand S 
     Corporation; Mortgagee: Bridge Mountain Trails, Inc. Affects 
     all lands in Park County, MT.
       This item will be satisfied and the mortgage released.
       8. Mortgage to secure an indebtedness recorded June 8, 1992 
     on Roll 33, page 987. Mortgagor: Brand S Corporation; 
     Mortgagee: United States National Bank of Oregon. Affects all 
     lands in Granite County, MT.
       This item will be satisfied and the mortgage released.
       9. Financing Statement converting all timber filed June 8, 
     1992 as NO. 7601. Affects all lands in Deer Lodge County, MT.
       This item will be released and removed from title.
       10. Financing Statement filed June 8, 1992 as No. 23793. 
     Affects all lands in Granite County, MT.
       This item will be released and removed from title.
       11. Contract for deed recorded May 30, 1975 on Roll 12, 
     pages 48-52. Seller: Springhill Ranch; Buyer John S. Brandis, 
     Jr. and Evelyn Fosse Brandis. Buyer's interest conveyed as 
     contained in Bargain and Sale Deeds recorded January 2, 1992 
     on Roll 85, pages 28-31 and on Roll 85, pages 32-35. Affects 
     all lands in Park County, MT.
       These items will be removed from the title.


                                part ii

       Property that the United States will offer for conveyance 
     to Brand S Corporation: Principal Meridian--Montana.

                              Deerlodge NF

Elk Park Tract:
T. 4 N., R. 7 W:
    Sec. 2, lots 1-7 inclusive, SW\1/4\NE\1/4\, SE\1/4\NW\1/4\, E\1/
      2\SW\1/4\, NW\1/4\SE\1/4\..................................501.99
    Sec. 11, lots 7, 8, W\1/2\NW\1/4\, SE\1/4\NW\1/4\, SW\1/4\SW\1/
      4\.........................................................220.29
    Sec. 14, lots 2 and 3.........................................74.41
Rumsey Tract:
  T. 6 N., R. 13 W:
    Sec. 5, part of lot 1 (2 acres approx), lots 2-7 inclusive, 
      SW\1/4\NW\1/4\ (estimated)\1\..............................221.44
    Sec. 6, lots 1-12 inclusive, E\1/2\SW\1/4\, W\1/2\SE\1/4\....556.29
    Sec. 8, lot 1.................................................50.16
    Sec. 18, all fractional......................................636.72
Marshall Creek Tract:
  T. 7 N., R. 15 W:
    Sec. 1, lots 1-4 inclusive, S\1/2\N\1/2\, S\1/2\.............641.20
  T. 7 N., R. 14 W:
    Sec. 6, lots 1-5 inclusive, SE\1/4\NE\1/4\, NE\1/4\SE\1/4\...273.50
Maywood Ridge Tract:
  T. 8 N., R. 13 W:
    Sec. 2, S\1/2\SE\1/4\NE\1/4\, S\1/2\NW\1/4\, S\1/2\..........420.00
      Subtotal Deerlodge NF (estimated).........................3606.00

\1\Survey (supplemental plat) will be required.

       Together with the right to harvest timber subject to the 
     Timber Harvest Guidelines, as set forth in Exhibit A of this 
     document, on the following lands:
Highlands Tract:                                                    MBF
  T. 1 S. R. 7 W: Sec. 6, all fractional...........................1200
Prison Tract:
  T. 8 N., R. 10 W:
    Sec. 30, all fractional........................................1685
  T. 7 N., R. 10 W:
    Sec. 6, all fractional..........................................564
                                                             __________

      Total estimated volume.......................................3449


                              reservations

       1. Excepting and reserving to the United States a right-of-
     way thereon for ditches or canals constructed by the 
     authority of the United States (Act of August 30, 1890, 26 
     Stat. 391; 43 U.S.C. 945).
       2. Excepting and reserving to the United States and its 
     assigns from the lands so granted, an exclusive perpetual 
     easement, including all right, title and interest for 
     existing roads as shown approximately on attached Exhibits * 
     and more particularly identified and described herein, and 
     all appurtenances thereto, over, upon, or under the land so 
     granted, together with such reasonable rights of temporary 
     use of lands immediately adjacent to said right-of-way as may 
     be necessary for the maintenance and/or repair of said roads.
       Said easements shall be sixty (60) feet in width, thirty 
     (30) feet on each side of the centerline with such additional 
     width as required for adequate protection of cuts and fills.
       The centerline of the roads lying approximately as follows:
       (a) Forest Road No. 1537 (existing): Beginning 
     approximately 400 ft. south of the northwest corner of Sec. 
     2, T.4 N., R.7 W., over and across Sec. 2 in a northerly 
     direction, and ending approximately 200 ft. south of the 
     northwest corner. Approximate length of segment is 200 ft. 
     Affects NW\1/4\ of Sec. 2, T.4 N., R.7 W., P.M.MT. (Elk Part 
     Tract).
       (b) Forest Road No. 442--Segment 1 (existing): Beginning in 
     the southeast corner of Lot 8 of Sec. 11, T.4 N., R.7 W., 
     which is approximately 1,850 ft. northeast of the southwest 
     corner of Sec. 11. Over and across Sec. 11 in a north, 
     northeasterly direction for approximately \1/2\ mile to a 
     point on the north line of the SE\1/4\NW\1/4\ of Sec. 11, 
     which is approximately 2,400 ft. southeast of the northwest 
     corner of Sec. 11. Affects SE\1/4\NW\1/4\ and NE\1/4\SW\1/4\ 
     of Sec. 11, T.4 N., R.7 W., P.M.MT. (Elk Part Tract).
       (c) Forest Road No. 442--Segment 2 (existing): Beginning on 
     the east line of the NW\1/4\NW\1/4\ of Sec. 11, which is 
     approximately 1,400 ft. southeast of the northwest corner of 
     Sec. 11 and traversing over and across Sec. 11 in a 
     northwesterly direction for approximately .20 miles to the 
     north section line of Sec. 11, which is approximately 425 ft. 
     east of the northeast corner of Sec. 11. Affects NW\1/
     4\NW\1/4\ of Sec. 11, T.4N., R.7W., P.M.MT. (Elk Park 
     Tract).
       (d) Forest Road No. 9427 (existing): Beginning on Road No. 
     442, approximately 900 ft. southeast of the northwest corner 
     of Sec. 11, T.4N., R.7W., thence traversing over and across 
     the W\1/2\NW\1/4\ of Sec. 11 in a southwesterly direction for 
     approximately .30 mile, ending on the west line of Sec. 11, 
     approximately 1,450 ft. south of the northwest corner of Sec. 
     11. Affects NW\1/4\NW\1/4\ of Sec. 11, T. 4N., R. 7W., 
     P.M.MT. (Elk Park Tract).
       (e) Forest Road No. 1567 (existing): Beginning on the west 
     line of Lot 1 of Sec. 8, T. 6N., R. 13W., approximately 1,500 
     ft. south of the northwest corner of Sec. 8, thence 
     traversing over and across Lot 1 of Sec. 8 in an easterly 
     direction for approximately .10 mile to the east line of Lot 
     1. Affects Lot 1 of Sec. 8, T.6N., R.13W., P.M.MT. (Rumsey 
     Tract).
       (f) Forest Road No. 1578 (existing): Beginning on the west 
     line of Sec. 18, T. 6N., R. 13W., approximately 350 ft. south 
     of the northwest corner of Sec. 18, thence traversing over 
     and across the W\1/2\ of Sec. 18 in a southeasterly to west 
     direction for approximately 1.25 miles and ending on the 
     south line of Sec. 18 approximately 150 ft. east of the 
     southwest corner. Affects W\1/2\ of Sec. 18, T.6N., R.13W., 
     P.M.MT. (Rumsey Tract).
       (g) Forest Road No. 78350 (existing): Beginning on Forest 
     Road No. 1578 in the SW\1/4\SW\1/4\of Sec. 18, T. 6N., 
     R.13W., approximately 700 ft. northeast of the southwest 
     corner of Sec. 18, thence traversing over and across the S\1/
     2\SW\1/4\SW\1/4\ in a southeasterly direction for 
     approximately .19 mile, and ending on the south line of Sec. 
     18 approximately 1,000 ft. east of the southwest corner of 
     Sec. 18. Affects S\1/2\SW\1/4\SW\1/4\ of Sec. 18, T.6N, 
     R.13W., P.M.MT. (Rumsey Tract).
       (h) Forest Road No. 1528 (existing): Beginning in the NW\1/
     4\NW\1/4\ of Sec. 6, T.7N., R.14W., approximately 750 ft. 
     east of the northwest corner of Sec. 6, thence traversing 
     over and across the NW\1/4\NW\1/4\NW\1/4\ in a southwesterly 
     direction for approximately .15 mile, and ending on the west 
     line of Sec. 6 approximately 200 ft. south of the northwest 
     corner of Sec. 6. Affects NW\1/4\NW\1/4\NW\1/4\ of Sec. 6, 
     T.7N., R.14W., P.M.MT. (Marshall Creek Tract);
       Also, beginning in the NW\1/4\NE\1/4\ of Sec. 1, T.7N., 
     R.15W., approximately 200 ft south of the northeast corner of 
     Sec. 1, thence traversing over and across the NE\1/4\NE\1/4\ 
     in a northwesterly direction for approximately .33 mile, and 
     ending on the north line of Sec. 1 approximately 1,200 ft. 
     west of the northeast corner of Sec. 1. Affects NE\1/4\NE\1/
     4\ of Sec. 1, T.7N., R. 15W., P.M.MT. (Marshall Creek Tract).
       (i) Forest Road No. 8402 (existing): Beginning on the north 
     line of the SE\1/4\NW\1/4\ of Sec. 2, T.8N., R. 13W., 
     approximately 2,600 ft. southeast of the northwest corner of 
     Sec. 2, thence traversing over and across the SE\1/4\NW\1/4\ 
     in a southeast direction for approximately .21 mile and 
     ending on the east line of the SE\1/4\NW\1/4\ approximately 
     2,650 ft. south of the north \1/4\ corner of Sec. 2. Affects 
     the SE\1/4\NW\1/4\ of Sec. 2, T.8N., R. 13W., P.M.MT. 
     (Maywood Ridge Tract)
       Also, beginning on the north line of the NW\1/4\SE\1/4\ of 
     Sec. 2, T. 8N., R.13W., approximately 2,500 ft. west of the 
     east \1/4\ corner of Sec. 2, thence traversing over 
     and across the W\1/2\SE\1/4\ in a southerly direction for 
     approximately .50 mile and ending on the south line of the 
     SW\1/4\SW\1/4\SE\1/4\ approximately 2,100 ft. west of the 
     southeast corner of Sec. 2. Affects the W\1/2\SE\1/4\ of 
     Sec. 2, T. 8 N., R. 13 W., P.M.MT. (Maywood Ridge Tract)
       Also, beginning on the south line of the SE\1/4\SW\1/4\ of 
     Sec. 2, T. 8 N., R. 13 W., approximately 400 ft west of the 
     south \1/4\ corner of Sec. 2, thence traversing northwest and 
     thence back southeast through the SE\1/4\SW\1/4\ for 
     approximately .55 mile and ending on the south line of the 
     SE\1/4\SW\1/4\ approximately 700 ft. west of the south \1/4\ 
     corner of Sec. 2. Affects the SE\1/4\SW\1/4\ of Sec. 2, T. 8 
     N., R. 13 W., P.M.MT. (Maywood Ridge Tract)
       (j) Forest Road No. 5123 (existing): Beginning at its 
     junction with Forest Road No. 8402 on the north line of the 
     SE\1/4\SW\1/4\, Sec. 2, T. 8 N., R. 13 W., approximately 
     1,600 ft. northwest of the south \1/4\ corner of Sec. 2, 
     thence traversing over and across the S\1/2\SW\1/4\ in a 
     southwesterly direction for approximately .47 mile and ending 
     on the south line of the SW\1/4\SW\1/4\ approximately 50 ft. 
     east of the SW\1/4\ corner of Sec. 2. Affects the S\1/2\SW\1/
     4\ of Sec. 2, T. 8 N., R. 13 W., P.M.MT. (Maywood Ridge 
     Tract)
       (k) Forest Road No. 78488 (existing): Beginning at its 
     junction with Forest Road No. 8402, which is approximately 30 
     ft. north of the south line of Sec. 2, T. 8 N., 13 W., thence 
     traversing over and across the SE\1/4\SE\1/4\SW\1/4\ in a 
     southeasterly direction for approximately .06 mile and ending 
     on the south line of the SE\1/4\SW\1/4\ approximately 550 ft. 
     east of the south \1/4\ corner of Sec. 2. Affects the SE\1/
     4\SW\1/4\ of Sec. 2, T. 8 N., R. 13 W., P.M.MT. (Maywood 
     Ridge Tract)
       Provided, that if the Regional Forester determines that the 
     roads, or any segment thereof, is no longer needed for the 
     purposes reserved, the easement shall terminate. The 
     termination shall be evidenced by a statement in recordable 
     form furnished by the Forest Supervisor to the Landowner, or 
     its successors or assigns in interest.


                 outstanding rights and authorized uses

       1. Existing Contract/Agreements/Memoranda of Understanding: 
     None, except as identified herein.
       2. Existing public roads: None.
       3. Special use authorizations: Telephone and telegraph 
     permit (underground phone line) T. 4 N., R. 7 W., Sec. 11 
     (Elk Park Tract), James Harrington, Permit expiration date: 
     December 31, 2001. Authorized by the Federal Land Policy and 
     Management Act of 1976.
       Transmission line: T. & N., R.13 W., Sec. 2 (Maywood Ridge 
     Tract), Montana Power Company (33 ft. wide R/W; Brooklyn-
     Princeton Line).
       These special use permits will terminate upon conveyance of 
     the involved federal lands. The Forest Service will notify 
     the permit holders in advance. The Forest Service will assist 
     this permit holders in making new arrangements with the non-
     Federal party.
       Land use area permit: T.7., R.15 W., Sec. 6 (Marshall Creek 
     Tract), Mary Kelley.
       This permit will be terminated. Permit holder will acquire 
     this area from Brand S Corporation.
       4. Road Easements: None.
       5. Grazing permits:
       Lowland Allotment: T.4 N., R.7 W., Secs. 2, 11 and 14 (Elk 
     Park Tract), Miles and Dale Carpenter, Henry Cerise, Ester 
     and William Francone.
       Parini Allotment: T.4 N., R.7 W., Sec. 2 (Elk Park Tract), 
     Rudolph Parini.
       Spring Park Ranch Allotment: T.6 N., R.13 W., Sec. 18 
     (Rumsey Tract), Steve Grange.
       Marshall Creek Allotment: T.7 N., R.14 W., Sec. 6 (Marshall 
     Creek Tract), Black Pine Ranch and Linda Yardley.
       Gird Creek Allotment: T.8 N., R.13 W., Sec. 2 (Maywood 
     Ridge Tract), Alan Boomer and Allen Morson.
       As provided by section 402(g) of the Federal Land Policy 
     Management Act of 1976, no permit or lease shall be canceled 
     without two years' prior notification. The permittees may 
     elect to waive this right. The Forest Service will notify 
     each permittee of the proposed exchange. If applicable, the 
     grazing use will be reserved in the patent for the duration 
     of the two year notification period.
       6. Mining claims: None.
       7. Oil & Gas Leases: None.
       8. Withdrawals: None.
       9. Water Rights: None.
       10. Phosphate Lease: Legal Description--T.8 N., R.13 W., 
     Sec. 2. Lease No. MTM 055657. Lease Holder: Cominco.
       The Forest Service will request the lease holder to 
     relinquish or modify its lease to exclude the lands involved 
     in this exchange. If the lease holder opts not to relinquish 
     or modify its lease, the phosphate estate will be reserved by 
     the United States in the patent until termination or 
     relinquishment of the lease. Upon termination or 
     relinquishment of the said lease all the rights and interest 
     to the phosphate deposit shall automatically vest in the 
     patentee, its successors in interest or assigns.
       11. Other Encumbrances: Subject to the interest, if any, 
     created by an existing powerline (affects lots 1-4 and the 
     NE\1/4\NW\1/4\ of sec. 18. T. 6 N., R. 13 W.) (Rumsey Tract).

                              Gallatin NF

Wineglass tract:
  T. 3 S, R. 8 E.:
    Sec. 2, lots 1-4 inclusive, S\1/2\N\1/2\.....................336.48
    Sec. 10, E\1/2\..............................................320.00
    Sec. 12, lots 1-4 inclusive, W\1/2\E\1/2\, N\1/2\NW\1/4\, SE\1/
      4\NW\1/4\, SE\1/4\SW\1/4\..................................481.08
  T. 3 S, R. 9 E.:
    Sec. 6, all fractional.......................................614.75
    Sec. 8, all..................................................640.00
Pole Gulch tract:
  T. 5 S., R. 7 E.:
    Sec. 2, all fractional.......................................641.81
    Sec. 10, all fractional......................................620.16
    Sec. 12, all.................................................640.00
    Sec. 14, all.................................................640.00
    Sec. 24, N\1/2\NE\1/4\, SW\1/4\NE\1/4\, N\1/2\SE\1/4\NE\1/4\, 
      NW\1/4\, N\1/2\SW\1/4\, SW\1/4\SW\1/4\, S\1/2\SE\1/4\SW\1/4\, 
      NW\1/4\SE\1/4\.............................................480.00
  T. 5 S., R. 8 E.:
    Sec. 6, all fractional.......................................643.62
    Sec. 18, all fractional......................................637.76
Little Donahue tract:
  T. 6 S., R. 7 E.:
    Sec. 30, lots 1-4 inclusive, E\1/2\E\1/2\, NW\1/4\NE\1/4\, E\1/
      2\W\1/2\, SW\1/4\SE\1/4\...................................533.92
                                                             __________

        Subtotal Gallatin NF...................................7,229.57

       Comprising in total 10,835.57 acres, more or less.


                              reservations

       1. Excepting and reserving to the United States a right-of-
     way thereon for ditches or canals constructed by the 
     authority of the United States (Act of August 30, 1980, 26 
     Stat. 391; 43 U.S.C. 945).
       2. Road and trail reservations: As provided within the 
     Access Resolution Agreement (Exhibit B), the Forest Service 
     will reserve in the patents/deeds those trail and road 
     segments that may be needed after exchange for access to 
     adjoining National Forest System (NFS) lands.
       a. Road reservations: Excepting and reserving to the United 
     States and its assigns from the lands so granted, an 
     exclusive perpetual easement, including all right, title and 
     interest for existing roads as shown approximately on 
     attached Exhibits and more particularly identified and 
     described herein, and all appurtenances thereto, over, upon, 
     or under the land so granted, together with such reasonable 
     rights of temporary use of lands immediately adjacent to said 
     rights-of-way as may be necessary for the maintenance and/or 
     repair of said roads.
       Said easements shall be sixty (60) feet in width, thirty 
     (30) feet on each side of the centerline, with such 
     additional width as required for adequate protection of cuts 
     and fills.
       The centerline of each road lying approximately as follows:
       (i) Eightmile Creek Road No. 2553 (existing): Beginning at 
     a point on the east property line of NE\1/4\NE\1/4\ of 
     Section 6, T5S, R8E, P.M., MT.; Thence over and across said 
     NE\1/4\NE\1/4\ of Section 6 in a west-northwesterly direction 
     approximately 0.2 mile; and ending at a point on the north 
     line of the NE\1/4\NE\1/4\ of said Section 6; and including 
     additional area for vehicle parking along the south side of 
     the road in said NE\1/4\NE\1/4\ of Section 6. The parking 
     area measures approximately fifty (50) feet in width (north-
     south) by one hundred twenty (120) feet in length (east-
     west), which is in addition to and located outside the road 
     right-of-way limits.
       (ii) Miller Creek Road No. 1769 (existing): Beginning at a 
     point on the east property line of SE\1/4\SE\1/4\SE\1/4\ of 
     Section 10, T5S, R7E, P.M., MT; Thence over and across said 
     SE\1/4\SE\1/4\SE\1/4\ of Section 10 in a southwesterly 
     direction approximately 0.1 mile; and ending at a point on 
     the south line of said SE\1/4\SE\1/4\SE\1/4\ of Section 10.
       It is agreed that the Landowner, its successors and 
     assigns, shall have the right to use the existing roads 
     described above for all purposes deemed necessary or 
     desirable in connection with the protection, administration, 
     management, and utilization of Landowner lands or resources, 
     subject, however, to traffic-control regulations under 36 CFR 
     261.12, and the bearing of road maintenance costs 
     proportionate to use as provided in 36 CFR 212.7(d).
       Provided, that if the Regional Forester determines that the 
     roads, or any segment thereof, is no longer needed for the 
     purposes reserved, the easement shall terminate. The 
     termination shall be evidenced by a statement in recordable 
     form furnished by the Forest Supervisor to the Landowner, or 
     its successors or assigns in interest.
       b. Trail reservation: Also, excepting and reserving to the 
     United States and its assigns from the lands so granted, an 
     exclusive perpetual easement, including all right, title and 
     interest for an existing trail as shown approximately on 
     attached Exhibit and more particularly identified and 
     described herein, and all appurtenances thereto, over, upon, 
     or under the land so granted, together with such reasonable 
     rights of temporary use of lands immediately adjacent to said 
     right-of way as may be necessary for the maintenance and/or 
     repair of said trail.
       Said trail easement shall be twenty (20) feet in width, ten 
     (10) feet on each side of the centerline, with such 
     additional width as required for adequate protection of cuts 
     and fills.
       The centerline of the trail lying approximately as follows:
       (i) South Fork Eightmile Trail No. 146 (existing): 
     Beginning at a point on the west property line of Section 10, 
     T5S, R7E, P.M., MT. near the west 1/4 corner of said Section 
     10; THENCE over and across the S1/2 of said Section 10 in a 
     southeasterly direction approximately 1.2 miles; and Ending 
     at a point on the east line of the SE1/4SE1/4 of said Section 
     10.
       Provided, that if the Forest Supervisor determines that the 
     trails, or any segment thereof, is no longer needed for the 
     purposes reserved, the easement shall terminate. The 
     termination shall be evidenced by a statement in recordable 
     form furnished by the Forest Supervisor to the Landowner, or 
     its successors or assigns in interest.


                 outstanding rights and authorized uses

       1. Existing Contracts/Agreements/Memoranda of 
     Understanding: None, except as identified herein.
       2. Existing public roads: None.
       3. Special use authorizations:
       James L. and Gayle E. Murphy--FLPMA permit in T.6S., R.7E. 
     Section 30. Permit is for access to private lands within the 
     Gallatin National Forest boundary for the purpose of 
     harvesting timber, and expires and terminates December 31, 
     1995.
       Wineglass Joint Venture--FLPMA permit for access to private 
     lands. Lands covered by the permit are located in T.3.S., 
     R.9E., Section 8, NE1/4. This permit expires and terminates 
     on December 31, 2003.
       Montana Land and Cattle Company--Special Use Permit for a 
     water transmission pipeline across T.5S., R.7E., Section 12, 
     NE1/4. This permit expires and terminates on December 31, 
     2001.
       These special use permits will terminate upon conveyance of 
     the involved federal lands. The Forest Service will notify 
     the permit holders in advance and assist these permit holders 
     in making new arrangements with the non-Federal party.
       4. Road Easements: None.
       5. Grazing Allotments: Wineglass Allotment includes lands 
     in the following sections: T.3S., R.8E., Sec. 2, portion; 
     T.3S., R.9E., Sec. 6, portion, and Sec. 8, portion;
       Wineglass allotment has been vacant since 1986.
       Coke Allotment includes lands in the following sections:
       T.3S., R.8E., Sec. 2, portions of section not in Wineglass 
     Allotment, and Sec. 10 and 12, portions (160 acres is owned 
     by Peterson).
       T.3S., R.9E., Sec. 6 and Sec. 8, portions of sections that 
     are not in Wineglass Allotment are in the Coke allotment.
       The following hold permits in Coke Allotment: Brawner Ranch 
     Co., Quenton Brawner, Depuy Enterprises, O'Hair Ranch 
     Company, Hilda Peterson.
       Pole Gulch Allotment includes lands in the following 
     sections: T.5S., R.7E., Sec. 2 all, Sec. 10 portion, Sec. 12 
     all, Sec. 14 portion and Sec. 24 portion; T.5S., R.8E., Sec. 
     6 and Sec. 18, all:
       The following hold permits in Pole Gulch Allotment: John 
     S., Jr. and Evelyn F. Brandis.
       Fridley Creek Allotment includes lands in the following 
     sections: T.5S., R.7E., Sec. 10, 14 and 24, portions that are 
     not included in the Pole Gulch Allotment.
       The following hold permits on Fridley Creek Allotment: Dan 
     Brutger, Story Ranch Company.
       Big Creek Allotment includes lands in the following 
     sections: T.6S., R.7E., Sec. 30.
       The following individuals hold permits on the Big Creek 
     Allotment: James L. and Gayle E. Murphy.
       As provided by section 402(g) of the Federal Land Policy 
     Management Act, no permit or lease shall be canceled without 
     two years' prior notification. The permittees may elect to 
     waive this right in writing. The Forest Service will notify 
     each permittee of the proposed exchange. If applicable, the 
     grazing use will be reserved in the patent for the duration 
     of the two year notification period.
       6. Mining claims: None.
       7. Oil and Gas Leases:
       Legal Description, Lease No., and Lease Holder:
       T.3S., R.8E., Sec. 2; M32847; Equitable Resources Energy 
     Co.
       T.3S., R.8E., Sec. 10; M34549; Wolverine Exploration Co., 
     Texaco Exploration & Production.
       T.3S., R.9E., Sec. 6; M32848; Equitable Resources Energy 
     Co.
       T.5S., R.7E., Sec. 2; M36455; Conoco, Inc.
       T.5 S., R.7 E., Sec. 10, 12 & 14; M36454; Conoco, Inc.
       T.5 S., R.7 E., Sec. 24; M36453; Conoco, Inc.
       T.5 S., R.7 E., Sec. 6 & 18; M36451; Conoco, Inc.
       T.6 S., R.7 E., Sec. 30; M36456; Conoco, Inc.
       The above leases have been suspended by the BLM under the 
     Ninth Circuit Court of Appeals Ruling in Connor vs. Burford.
       The Forest Service will request each of the lease holders 
     to relinquish or modify their leases to exclude the lands 
     involved in this exchange. If the lease holders opt not to 
     relinquish or modify their leases, the oil/gas estates will 
     be reserved by the United States in the patent until 
     termination or relinquishment of the leases. Upon termination 
     or relinquishment of the said lease all the rights and 
     interests to the oil and gas deposits shall automatically 
     vest in the patentee, its successors in interest or assigns.
       8. Withdrawals: None.
       9. Water Rights:
       (1) Source: Unnamed Trib., Strickland Creek, Water Right 
     No. 43B-W-059905-00, T. 3 S., R. 8 E., Sec. 12.
       (2) Source: Strickland Creek, Water Right No. 43B-W-059963-
     00, T. 3 S., R. 8 E., Sec. 12.
       The Forest Service will transfer these water rights to 
     Brand-S, provided that Brand-S shall allow existing (stock 
     water) uses to continue until the involved grazing permits 
     terminate (within two years from the date of notification).
       10. Other Encumbrances: None.


                      PART III--GENERAL AGREEMENTS

       1. Upon conveyance of the timber on the Highlands and 
     Prison Tracts, Brand-S Corporation agrees to implement and 
     abide by the Timber Harvest Guidelines (Exhibit A) as 
     developed and mutually agreed upon between the parties.
       2. Both parties agree to the provisions in the Access 
     Resolution Agreement (Exhibit B) which pertain to access on 
     the Gallatin NF and it is hereby made a part of this 
     document.
       3. Upon completion of the land exchange, Jack Brandis, 
     owner of Brand S Corporation, has pledged to donate, and The 
     Nature Conservancy has agreed to accept, conservation 
     easements (in the form of permanent deed restrictions) on the 
     lands that Brandis will receive in the Pole Gulch, Little 
     Donahue and Wineglass Tracts (excepting the E\1/2\ of sec. 
     10, T. 3 S., R. 8 E.). Brandis has also pledged to include in 
     the grant of conservation easement the additional contiguous 
     acreage that he owns in the Pole Gulch area. The voluntary 
     decision by Brandis to convey these permanent conservation 
     easements to the Conservancy will ensure that future 
     subdivision and development are limited, and that forestry 
     and range management activities are conducted in a manner 
     consistent with the conservation of wildlife habitat, 
     watershed and open-space characteristics.
       4. Brand S Corporation, its transferees and assigns, or 
     other successors in interest, agree that these provisions 
     shall be a covenant running with the subject property, and 
     that they shall indemnify, defend and hold the United States 
     of America, its various agencies and/or employees, harmless 
     from any damage, loss, claims, liability and costs resulting 
     in any way from the United States' ownership, and/or any and 
     all activities, operations (including but not limited to the 
     storing, handling, and dumping of hazardous materials or 
     substances), or other acts conducted by Brand S Corporation 
     or its licensees, employees, agents, successors or assigns on 
     the Lost Creek Tract, whether such activities, operations or 
     other acts occurred prior to, on, or after the enactment of 
     the Brand S Land Exchange Act of 1994. This covenant shall be 
     enforceable by the United States in a Court of competent 
     jurisdiction.
       5. Both parties agree that these Land Exchange 
     Specifications may be amended at any time by mutual 
     agreement. Any such amendment(s) must be in writing and 
     signed by the parties hereto. Any such amendment(s) shall be 
     provided by the Forest Service to the Energy Committee of the 
     United States Senate and by the Interior Committee of the 
     United States House of Representatives. Minor technical 
     changes mutually agreeable to both parties, but not subject 
     to Committee notice, shall be documented, signed, and made 
     part of these Specifications.
       In witness whereof, the Landowner and the Regional 
     Forester, acting for and on behalf of the Forest Service have 
     executed these Specifications. The Specifications shall be 
     effective on the last date signed.
       Landowner: Brand S Corporation, An Oregon Corporation.
       Name, Title, and Date.
       (Corporate Seal.)
       Attest:
       Title.
       United States of America, USDA, Forest Service.
       David F. Jolly, Regional Forester and Date.
                                  ____


                Exhibit Draft Timber Harvest Guidelines

       The objective of Brand S will be to sustain and enhance the 
     forest resources through effective use of conservation 
     forestry practices. Timber harvest will be directed to 
     maintain sustainability of all forest resources, and 
     diversity of forest types, ages and stand structure, and to 
     emulate the historical range of variability and vegetative 
     patterns.
       Brand S and the U.S. Forest Service agree that general 
     Timber Harvest Guidelines contained in Part I of this text 
     will apply to timber reserved by Brand S in the West Pine 
     Tract on the Gallatin National Forest of this exchange. The 
     parties further agree that the Timber Harvest Guidelines 
     contained in Part II of this text will apply to the Prison 
     and Highlands Tracts on the Deerlodge NF lands where timber 
     only is to be conveyed to Brand S.


                                  Part

       The parties agree that these guidelines will apply to 
     Gallatin NF lands where timber is reserved by Brand S on the 
     West Pine Tract.
       The following guidelines will not preclude Brand S from 
     harvesting timber volumes to meet timber valuation contained 
     in the exchange.
       Brand S will consult and coordinate with the appropriate 
     public agencies (U.S. Forest Service-Gallatin National 
     Forest, State Department of Lands, and Montana Department of 
     Fish, Wildlife, and Parks (MDFWP)) in design, implementation 
     and monitoring of resource management decisions.
       Brand S will meet with a review team comprised of U.S. 
     Forest Service, Montana Department of State Lands, and MDFWP 
     annually to assess harvesting plans and discuss future 
     practices as they relate to general guidelines contained in 
     this text.
       Brand S will adhere to all laws pertaining to timber 
     harvest activities including but not limited to the 
     Streamside Management Act, Forestry Best Management Practices 
     (BMP) recognized by the Montana State Department of Lands, 
     Federal Agencies, and the State Legislature as the foundation 
     for timber harvest practices and for fire prevention.
       In accordance with the provisions of the Customs and Trade 
     Act of 1990, Title IV--Forest Resource Conservation and 
     Shortage Relief Act of 1990, unprocessed logs originating 
     from reserved timber on the West Pine Tract will not be 
     exported or substituted for other logs that are or will be 
     exported.
       The following criteria will be used for project planning 
     and implementation:


                  A. specific Resource considerations

                             visual quality

       1. The ``Modification'' Visual Quality Objective (VQO), as 
     defined in the Forest Service Visual Management System will 
     be used as a guide to mitigate visual impacts of timber 
     harvesting. Brand S and Gallatin National Forest will design 
     harvests to emulate natural openings present on the 
     landscape avoiding straight lines and abrupt edges.


                       wildlife and fish habitat

       1. Adequate forest cover will be retained as much as 
     possible to protect big game and other species.
       Elk habitat potential will be maintained where possible by 
     retention of 30% of the total land area in suitable elk cover 
     (cover that hides 90% of an elk at 200 feet). Elk habitat 
     effectiveness will be maintained by managing roads so there 
     is generally less than one mile of open road per section 
     following harvest. It is understood that lands conveyed to 
     Brand S in the Wineglass Tract are exempt due to surrounding 
     existing vegetative conditions and human development which 
     would preclude harvest.
       The existing main access road in the Pole Gulch Management 
     Unit (Sections 1, 3, 10, 11, 12, 13, 14 and 24 in T. 5 S., R. 
     7 E. and Section 18 in T. 5 S., R. 8 E.) will be exempt and 
     remain open at the landowner's discretion.
       2. Key habitat components including riparian areas, licks, 
     caves, cliffs, wallows, meadows and parks will be identified 
     and protected in timber harvest and road planning.
       3. In harvested areas, an average of at least 3 to 6 snags 
     and an equal number of replacement residual green trees per 
     acre will be retained. The residual trees and snags can be 
     left in a random manner (example, groups, patches and 
     corridors) or uniformly distributed. In proposed harvest 
     areas, the review process will develop prescribed slash plans 
     to meet landowner objectives and to maintain site 
     productivity and wildlife habitat (erosion control, nutrient 
     and organic recycling and animal habitat.
       4. Brand S will manage these lands to meet State water 
     quality standards and to maintain fish habitat were 
     applicable.
       5. Lands will be managed to retain and enhance aspen and 
     other deciduous trees and shrubs, especially in riparian and 
     wet areas.


                            water and soils

       1. Best Management Practices (BMP) will be used in the 
     planning and implementation of harvest and road construction 
     activities. Reference ``Montana Forestry Best Management 
     Practices''; 1992 and the 1991 Streamside Management Act.


                             Noxious weeds

       1. All harvesting equipment likely to be operated off of 
     road systems will be power washed of weed seeds before 
     entering these lands.
       2. Brand S will treat noxious weeds on lands disturbed by 
     their operations during the period of project activities. The 
     total time period will not exceed the five years which Brand 
     S will be permitted to operate on these lands.


                           b. timber harvest

       1. The appropriate even-aged or uneven-aged silvicultural 
     system will be used for each stand. Brand S and Gallatin 
     National Forest will agree on the appropriate silvicultural 
     systems and standards for different forest types, to achieve 
     desired vegetative conditions. To the extent possible; 
     silvicultural systems will be designed for natural 
     regeneration.
       In general, partial cutting harvest systems that emulate 
     historical vegetative patterns will be utilized. In the 
     Douglas-fir types, partial cutting systems, including 
     shelterwood, group or individual tree selection, and 
     commercial thinning may be used as appropriate to meet 
     management objectives including old growth characteristics. 
     In the lodgepole pine types, age, insect and disease 
     conditions and individual stand conditions will determine 
     silvicultural systems. Clearcutting will be used only where 
     it is the optimum system. Where clearcut harvest is used, 
     reserve patches of advance reproduction and other small 
     diameter trees (lodgepole pine, subalpine fir, Douglas-fir 
     and spruce) and snags will be protected.
       2. Harvest openings, location, size and shape will utilize 
     the principles of landscape design as described in the Forest 
     Service Visual Management System, and the principles of 
     wildlife habitat for protection of cover, edge effect, travel 
     linkages and concentrated use areas. Harvest openings created 
     by even-aged silviculture will normally be 40 acres or less. 
     Any larger openings will be as a result of prescribed harvest 
     to meet historic vegetation variation or as a result of 
     catastrophic fire or insect and disease.
       3. Brand S will formulate and implement harvest activity 
     fuel treatment according to Montana State Hazard Reduction 
     Laws.


                        c. transportation system

       1. Roads will generally be designed to achieve a minimum 
     distance of 1,000 feet apart except as they approach 
     junctions with other roads. Design features will be utilized 
     as outlined in the Montana Forestry BMP. Secondary roads 
     constructed or used by Brand S will be closed and stabilized, 
     including revegetation and erosion control in an effort to 
     promote wildlife habitat effectiveness and watershed 
     stability.
       2. To avoid excessive soil compaction, skid trails will be 
     designed to minimize compaction and generally be located 75 
     feet apart. Line harvest systems are generally applled for 
     slopes greater than 40%. Soil conditions and topographic 
     features will direct system application.
       3. The Forest Service agrees to grant to Brand S 
     appropriate road access and use rights as needed to access, 
     harvest and transport the reserved timber by Brand S in this 
     exchange. Specific road locations and haul routes will be 
     identified by mutual agreement between the Forest Service and 
     Brand S. In a timely manner, the Forest Service will grant 
     road access and use rights appropriate for each access 
     facility, through FLPMA (special use permits) and/or FRTA 
     (commercial road use permits) authorities. The parties agree 
     to cooperate to ensure timely completion of any needed road 
     location, survey, design, exhibit preparation and permit 
     authorization work. This agreement will not obligate Brand S 
     to convey public access in any form in the Pole Gulch 
     management unit.


                            d. field layout

                          timber harvest units

       1. All units will be flagged in blue ribbon for field 
     review purposes. Following approval, all boundaries will be 
     marked with intervisible, vertical stripes of blue paint on 
     trees at eye level.


                            tree designation

       1. Cut trees will be marked just above ground level on the 
     downhill side with a stump spot and at eye level with a 
     horizontal band of orange paint.
       2. Leave trees will be marked with blue paint in the same 
     manner as for cut trees.
       3. Designation of cut or leave trees may also be by a 
     combination of species and/or diameter.


                          volume determination

       Brand S and Gallatin National Forest will agree on the unit 
     layout, harvest prescriptions and cruise for the tract of 
     land, described below, where 1.383 MMBF of timber is reserved 
     to Brand S for the harvest.


       West Pine Tract (Section 1 T4S R7E and Section 7 T4S R8E)

       1. Volume determination shall be done in accordance with 
     2409.12 Timber Cruising Handbook and applicable Region 1 
     supplements. Cruise standards for Tree Measurement Sales 
     shall apply. Minimum standards shall be a tree 7 inches or 
     greater at diameter breast height which contains a 16 foot 
     log to a 5.6 top that is at least 33\1/3\ sound. 
     Brand S and Gallatin National Forest will work together on 
     volume determination. Volume determination shall include all 
     phases of the cruise process including cruise design, 
     traversing when necessary, field measurements and check 
     cruising. Check cruising will be accomplished by a Forest 
     Service Certified Check Cruiser. If the results of the check 
     cruise fail to meet regional standards, an additional check 
     shall be run and combined with the first. If results are 
     still unsatisfactory, 25% of the original samples shall be 
     checked and the cruise adjusted by the difference between the 
     check and the original work.
       2. Brand S and Gallatin National Forest will collect cruise 
     information using Forest Service data forms. The information 
     will be run on the Forest Service computer system. Brand S 
     shall be furnished a copy of all input and output data and be 
     able to review the results and check for any errors that 
     would affect the volume. Any input or calculation errors 
     detected shall be corrected.
       3. If small cutting units are employed on portions of the 
     area they shall be combined using the subdivision/unit 
     concept for minimum unit sampling error. These units shall be 
     agreed to by the Forest Service and Brand S at the time the 
     cruise is designed.


                       e. project implementation

       1. Timber harvest and postsale activities will be completed 
     within five (5) years after the date that legislation is 
     enacted. Extensions of time shall only be granted for causes 
     beyond the control of either party such as extensive periods 
     of moist soils or restrictions due to fire seasons. Brand S 
     will annually develop a schedule of planned activities so 
     that work can be coordinated and completed in a workman-like 
     manner. Brand S will notify the Gallatin National Forest when 
     all timber reservation activities are completed. Agreement on 
     that finding will be reached by both parties.
       2. Brand S will formally designate a field representative 
     who will administer the project according to the preapproved 
     conceptual plan.
       The Gallatin National Forest will formally designate a 
     project coordinator who will monitor progress and compliance 
     with the preapproved plan.


                                part ii

       The parties agree that these guidelines will apply to the 
     Prison and Highlands Tracts on the Deerlodge National Forest 
     lands where timber only is conveyed to Brand S:
       Brand S will adhere to all laws pertaining to forest 
     management activities recognized by the Federal Agencies and 
     the State Legislature as the foundation for sound timber 
     harvest practices and for fire prevention.
       In accordance with the provisions of the Customs and Trade 
     Act of 1990, Title IV--Forest Resource Conservation and 
     Shortage Relief Act of 1990, unprocessed logs originating 
     from Deerlodge National Forest lands will not be exported or 
     substituted for other logs that are or will be exported.
       The project will be based on the Deerlodge Forest Plan 
     Standards and Management Area direction. However, the 
     standards and direction will not preclude Brand S from 
     harvesting timber volumes to meet timber valuation as defined 
     in the exchange.
       The following criteria will be used for project planning 
     and implementation:


                  a. specific resource considerations

                             visual quality

       1. The ``modification'' visual quality objective (VQO), as 
     defined in the Forest Service Visual Management System, will 
     guide design of timber harvesting.


                                wildlife

       1. Adequate forest cover will be retained as much as 
     possible to protect big game and other species.
       Elk habitat potential will be maintained where possible by 
     retention of 30% of the total land area in suitable elk cover 
     (cover that hides 90% of an elk at 200 feet). Elk habitat 
     effectiveness will be maintained by managing roads so there 
     is generally less than one mile of open road per section 
     following harvest.


                       water, soils and riparian

       1. Montana State Streamside Zone Rules and Montana Forestry 
     Best Management Practices will be used in the planning and 
     implementation of road construction, harvest and postsale 
     activities.


                             noxious weeds

       1. All harvesting equipment likely to be operated off road 
     systems will be power washed of weed seeds prior to entering 
     these lands.
       2. Brand S will treat noxious weeds on lands disturbed by 
     their activities during the period of project activities. The 
     Forest Service will be responsible for treatment at the 
     conclusion of project activities and for other lands not 
     disturbed by Brand S.


                               recreation

       1. To minimize impact to recreational activities, the 
     following timing restrictions will apply: In section 30, T8N, 
     R10W, and Section 6, T7N, R10W road construction, logging and 
     post sale activities will be limited to the periods of June 
     16th through October 14th.


                      unique and critical habitats

       1. Key habitat components including riparian areas, licks, 
     caves, cliffs, wallows, meadows and parks will be identified 
     and protected during project activities.


                           b. timber harvest

       1. Brand S and Deerlodge National Forest will agree on the 
     appropriate even-aged or uneven-aged silvicultural system to 
     achieve desired vegetative conditions. The desired conditions 
     will be based on target stands and silvicultural 
     prescriptions supplied by the Deerlodge National Forest. To 
     the maximum extent possible, silvicultural systems will be 
     designed for natural regeneration.
       In general, partial cutting harvest systems that emulate 
     historical vegetative patterns will be utilized. In the 
     Douglas-fir type, this will include shelterwood, group 
     selection, individual tree selection, and commercial thinning 
     may be used as appropriate to meet management objectives 
     including old growth characteristics. In the lodgepole and 
     spruce-alpine fir types, age, insect and disease conditions 
     and individual stand conditions will determine the 
     appropriate system to use. Clearcutting will be used only 
     where it is the optimum system. Where clearcutting is used, 
     some snags and reserve patches of advance reproduction and 
     other small diameter trees will be protected.
       2. Harvest openings location, size and shape will utilize 
     the principles of landscape design as described in the Forest 
     Service Visual Management System, and the principles of 
     wildlife habitat for protection of cover, edge effect, travel 
     linkages and concentrated use areas. Harvest openings created 
     by even-aged silviculture will normally be 40 acres or less. 
     Any larger openings will be as a result of harvest 
     prescriptions to meet historic vegetation variation or as a 
     result of catastrophic fire or insect and disease damage.
       3. Stand diagnosis will include a narrative and map display 
     of all proposed logging. The description of stands proposed 
     for logging will include vegetative objectives and field 
     inventory information on species, tree sizes, habitat types, 
     harvest methods, logging methods and post-treatment needs.
       4. Brand S will implement fuel treatments (including 
     burning of landings and dozer piles) according to target 
     stand objectives. Broadcast burning will not be considered 
     for this project.


                         c. transportation plan

       1. Roads will generally be designed to achieve a minimum 
     distance of 1000 feet apart except as they approach junctions 
     with other roads. Designs will incorporate Montana Forestry 
     BMP. Upon completion of use, roads will be closed and 
     stabilized, including revegetation and erosion control, in an 
     effort to promote wildlife habitat effectiveness and 
     watershed stability.
       2. Soil conditions and topographic features will direct 
     systems applications. Operations will only be conducted on 
     slopes over 40% when they can safely be accomplished with 
     dozers or rubber-tired skidders. Operations will be suspended 
     during moist, soil conditions when rutting (tracks greater 
     than 3'' deep for more than 10 continuous feet) or excessive 
     soil disturbance is occurring. In soil types that are subject 
     to soil compaction, skidding equipment may be required to 
     operate from skid trails that are generally located at least 
     75 feet apart.
       3. The Forest Service agrees to grant to Brand-S 
     appropriate road access and use rights as needed to access, 
     harvest and transport the national forest timber to be 
     conveyed to Brand-S in this exchange. Specific road locations 
     and haul routes will be identified by mutual agreement 
     between Forest Service and Brand-S. In a timely manner. 
     Forest Service will grant road access and use rights 
     appropriate for each access facility, through FLPMA (special 
     use permits) and/or FRTA (commercial road use permits) 
     authorities. The parties agree to cooperate to ensure timely 
     completion of any needed road location, survey, design, 
     exhibit preparation and permit authorization work.


                         d. project development

       Brand S will take the lead and Deerlodge National Forest 
     will assist and provide guidance to develop the conceptual 
     plan through field layout of harvest activities. The primary 
     method of achieving project approval and monitoring will be 
     through reviews conducted jointly by Brand S and the 
     Deerlodge National Forest. The minimum schedule of office/
     field reviews will be:
       Office review of conceptual paper design and agreement on 
     unit costs of post harvest treatments.
       Cruise plan to be reviewed by Forest Service certified 
     cruiser.
       Field review when field layout is approximately 50% 
     complete.
       Office/field review when field layout is complete and 
     before any ground disturbing activities occur.
       On-going road construction, log removal and post sale work 
     will be monitored currently by Forest Service coordinator. A 
     staff field review will be conducted at completion of field 
     activities and as requested by Forest Service coordinator. 
     The intent is to have at least one review during field 
     operations and one at the conclusion of field operations.


                            e. field layout

                          timber harvest units

       1. All units will be flagged in blue ribbon for field 
     review purposes. Following approval, all boundaries will be 
     marked with the intervisible, vertical stripes of blue paint 
     on trees at eye level.


                            tree designation

       1. Cut trees will be marked just above ground level on the 
     downhill side with a stump spot and at eye level with a 
     horizontal band of orange paint.
       2. Leave trees will be marked with blue paint in the same 
     manner as for cut trees.
       3. Designation of cut or leave trees may also be by a 
     combination of species and/or diameter.


                      timber volume determination

       The project will consist of the removal of about 3.5 
     million board feet of timber and associated temporary road 
     construction and postsale activities. The volume identified 
     for harvest is located on the lands described as follows:
       Highlands Tract--sec. 6, T. 1 S., R. 7 W.
       Prison Tract--sec. 30, T. 8 N., R. 10 W. and sec. 6, T. 7 
     N., r. 10 W.
       1. Volume determination shall be done in accordance with 
     2409.12 Timber Cruising Handbook and applicable Region 1 
     supplements. Cruise standards for Tree Measurement Sales 
     shall apply. Minimum tree standards shall be at tree 7 inches 
     or greater at diameter breast height which contains a 16 foot 
     log to a 5.6'' to that is at least 33\1/3\ sound. Volume 
     determination shall include all phases of the cruise process 
     including cruise design, traversing when necessary, field 
     measurements and check cruising. Check cruising will be 
     accomplished by Forest Service Certified Check Cruiser and 
     Brand S representative may accompany the Forest Service Check 
     Cruiser. If the results of the check cruise fail to meet 
     regional standards, an additional check shall be run and 
     combined with the first. If results are still unsatisfactory, 
     25% of the original samples shall be checked and the cruise 
     adjusted by the difference between the check and the original 
     work.
       2. Brand S will collect cruise information using Forest 
     Service data forms. The information will be run on the Forest 
     Service computer system. Brand S shall be furnished a copy of 
     all input and output data and be able to review the results 
     and check for any errors that would affect the volume. Any 
     errors detected shall be corrected.
       3. Cruising shall be by an acceptable method to the Forest 
     Service and Brand S which will accomplish results in the most 
     economical fashion. If small cutting units are employed on 
     portions of the area they shall be combined using the payment 
     unit concept for minimum unit sampling error. These units 
     shall be agreed to by the Forest Service and Brand S at the 
     time the cruise is designed.


                                 roads

       1. Road locations will be flagged with orange ribbon prior 
     to field review.


                       f. project implementation

       Timber harvest and postsale activities will be completed 
     within five (5) years after conveyance of the timber (by 
     timber deed) to Brand S. Extensions of time shall only be 
     granted for conditions beyond the control of either party 
     such as extensive periods of moist soils or restrictions due 
     to fire seasons. Brand S will annually develop a schedule of 
     planned activities so that work can be coordinated and 
     completed in a workman-like manner.
       Brand S will post a performance bond equal to 75% of the 
     cost of post sale treatment needs. The Forest Service and 
     Brand S agree that harvest prescriptions will be designed to 
     achieve natural tree regeneration to the maximum extent 
     possible. However, planting might be necessary to meet 
     requirements for tree regeneration under the National Forest 
     Management Act in some situations. The post harvest work will 
     include an estimate of the direct cost of planting that might 
     be necessary. The prescriptions agreed to at the conceptual 
     stage will dictate the type of reforestation and necessary 
     steps to achieve adequate regeneration to stock the harvest 
     areas. Brand S will not be liable for any additional 
     reforestation costs if the terms of the prescription are met. 
     The bond can be reduced in proportion to, but not less than 
     the amount of post sale work remaining to be completed. The 
     amount based on reforestation needs shall be finalized with 
     the results of the reforestation surveys conducted at the end 
     of the 3rd growing season following site preparation.
       Brand S will formally designate a field representative who 
     will administer the project according to the preapproved 
     conceptual plan.
       The Deerlodge National Forest will formally designate a 
     project coordinator who will monitor progress and compliance 
     with the preapproved plan.
       Project activities will progress in a workman-like manner 
     as generally defined in the Annual Schedule of Planned 
     Activities. Examples are:
       1. A unit or group of units will be completed prior to 
     beginning logging operations in unlogged units.
       2. Erosion control measures will be accomplished 
     immediately after the facility is no longer needed.
       3. Required post harvest treatment (dozer pilling, 
     trampling, site preparation and burning of landings and dozer 
     piles) will be done on a unit within one season after logging 
     has been completed.
       The cost of fire suppression will be borne by Brand S when 
     caused by their operations.
       The Deerlodge National Forest shall be responsible for 
     conducting reforestation surveys and implementing any 
     artificial reforestation activities that might be necessary. 
     However, Brand S shall have the option of doing any required 
     artificial reforestation in lie of making deposits. They will 
     use and pay for stock provided by the Deerlodge National 
     Forest.
       In the event that Brand S elects to offer for sale any of 
     the timber conveyed in Part II, Brand S agrees to fully 
     comply with existing Forest Service small business program 
     procedures. Brand S will set minimum bid rates in accordance 
     with Forest Service transaction evidence procedures. In the 
     event that no qualified small business entity shall meet the 
     minimum bid, Brand S shall have the right to offer said 
     timber to large business.
       Brand S and the Forest Service agree that conceptual 
     designs and unit layout will avoid or mitigate impact to any 
     known cultural resource or Threatened, Endangered or 
     Sensitive species. In the event that new sites are discovered 
     during operations and impacts cannot be mitigated by standard 
     measures, then an equal volume of timber within the same 
     market area will be provided to replace the affected timber. 
     All rights, title and interest in and to any conveyed timber 
     shall remain with the Forest Service until the timber 
     designated for removal has been cut and removed form National 
     Forest System lands. The Forest Service will not be liable 
     for replacing any timber lost or destroyed due to Brand S's 
     operations.
                                  ____


Exhibit C--Draft Access Resolution Agreement--Forest Service and Brand-
       S/Diamond-B Ranch Land Exchange, Gallatin National Forest


                              Introduction

       In 1993, Brand-S/Diamond B Ranch (BS/DB) initiated a 
     proposal to exchange National Forest System (NFS) and private 
     lands on the Gallatin and Deerlodge National Forest (FS). 
     Brand-S developed ITS initial proposal to achieve two stated 
     goals:
       (1) Place ITS Lost Creek lands in public ownership.
       (2) Secure a supply of timber by acquiring equal-valued NF 
     timberlands within operating distance of the Brand-S mill in 
     Livingston.
       In the ensuing months, BS/DB staff met with staff of the 
     two Forests, and with Bozeman/Livingston and Butte/Anaconda 
     conservation and sportsman groups, the Governor's office, 
     Montana Department of Fish Wildlife and Parks (MT FWP) and 
     others to discuss the proposal. Through this process BS/DB 
     gained some support, and also identified concerns about 
     certain aspects of ITS proposal. In a series of meetings, FS 
     and BS/DB staff made substantive modifications to develop a 
     more workable exchange package that addresses the agency and 
     public concerns.


                            the access issue

       Within the proposal, BS/DB would acquire approx. 4,300 
     acres (seven parcels) of Gallatin NF lands in the Pole Gulch/
     Eightmile area on the west side of Yellowstone Valley. These 
     public lands are intermixed with BS/DB Ranch lands.
       This particular area of the Forest has no legal access from 
     public roads to the NF boundary. Access is controlled by 
     several private landowners, including BS/DB Ranch. In fact, 
     no legal Forest access exists between West Pine Road on the 
     north and Big Creek Road on the south, a distance of about 30 
     miles. The Gallatin Forest Plan contains direction to secure 
     five public access facilities in this area (linking public 
     roads to the Forest boundary in the north Dry Creek, 
     Eightmile, Pole Gulch, Fridley, and south Dry Creek 
     drainages). Once inside the Forest boundary, a network of 
     system trails exists, facilitating travel to alternating 
     sections of public lands.
       Early on, and consistently throughout the exchange 
     discussions, the FS informed BS/DB staff that to consider 
     exchanging the identified NFS lands in the Pole Gulch/
     Eightmile area, the issue of public access to surrounding NFS 
     lands must be addressed. The FS, MT FWP, Public Lands Access 
     Association, Inc. (PLAAI) and local sportsman/wildlife groups 
     recognize and agree that this proposal must not cause a loss 
     or deterioration of public access in the Pole Gulch/
     Eightmile/Fridley area, particularly because existing access 
     is so limited. An exchange that fails to protect access would 
     be inconsistent with Forest Plan direction, and would also 
     conflict with ongoing efforts to protect trail access across 
     intermingled private lands in the Yellowstone Valley (e.g. 
     Donahue Trail).


                           access resolution

       In the exchange proposal, BS/DB would exchange four 
     sections of land IT recently purchased in West Pine to the 
     FS. This public acquisition would improve access in the West 
     Pine area. However, until late July 1993, BS/DB and the FS 
     were unable to reach agreement on resolution of access in the 
     Eightmile/Pole Gulch/Fridley area. Several options were 
     identified by the FS to help resolve this issue. BS/DB has 
     been unwilling to accept any of these options. Without 
     resolving this matter, the FS could not support the exchange 
     proposal. Through discussions between BS/DB and the FS, 
     agreement was reached on provisions to resolve access in the 
     Eightmile/Pole Gulch/Fridley area, within the exchange 
     package and ensuring legislation.
       These provisions are as follows:
       (1) Existing Trails and Roads: The FS has evaluated the 
     existing NF trail system and road system on the NFS lands 
     identified for exchange, and on the existing BS/DB lands in 
     the Pole Gulch, and has identified:
       (a) Those existing NF trails and roads that are needed for 
     public access to adjoining NFS lands after the exchange.
       (b) Those existing NF trails and roads that are no longer 
     needed after the exchange.
       The identified trails and roads to be reserved and those 
     that are no longer needed are shown on the attached map. The 
     identified trails and roads to be reserved are more 
     specifically described in Part II of Land Exchange 
     Specifications.
       The FS will reserve in the patent the identified needed 
     trail and road segments on the NFS lands to be exchanged to 
     BS/DB. Minor relocation of trail and road segments will be 
     considered where more logical locations exist, provided 
     relocation is mutually acceptable to the FS and BS/DB.
       The FS agrees:
       (a) Not to reserve any rights in trails and roads 
     identified as no longer needed on the NFS lands to be 
     exchanged to BS/DB.
       (b) To relinquish trails and roads identified as no longer 
     needed BS/DB lands in Pole Gulch.
       (2) Legislative Provision to Secure Access: Any exchange 
     legislation must contain specific Congressional direction as 
     follows:
       The Forest Service shall secure legal public road accesses 
     to Gallatin National Forest System lands in: 1) the Eightmile 
     Creek area, and 2) the Miller Gulch-Fridley Creek-Dry Creek 
     area.
       The Forest Service and Brand-S/Diamond B agree that this 
     provision shall be included in the legislation. It is 
     anticipated that the Montana delegation, MT FWP, recreation 
     and conservation groups will endorse this provision.

 Mr. BURNS. Mr. President, I join my colleague from Montana in 
introducing the Lost Creek land exchange.
  Early last year negotiations began on this delicate land exchange 
called the Lost Creek Exchange. The exchange involve lands in the Deer 
Lodge and Gallatin National Forests and privately owned lands. One 
particular piece of private land that will become publicly owned is the 
pristine Lost Creek area in the Anaconda Pintlers. This property was 
purchased for timber harvest, but immediately local citizens and 
conservation groups began looking for some avenue by which the public 
could acquire the land.
  The result of this local grassroots effort, we have before us today. 
Our children and grandchildren will be the beneficiaries of this 
landmark exchange. We have just completed a series of public meetings 
to determine the level of support this exchange has across the affected 
areas and I was pleased to see universal support from conservation 
groups, sportsmen associations, private landowners and local 
communities. The acquisition of the prime big horn sheep and mountain 
goat habitat, plus the acquisition of key wilderness areas on the 
Gallatin National Forest are accomplishments that will benefit the 
State of Montana for future generations.
  In addition, this exchange will mean the harvesting of timber by the 
Brand S lumber company in Livingston. And that's good news to the 
community where good family paying jobs are needed.
  Legislative time is short, but I look forward to this bill moving 
forward and being sent to the President for his signature.
                                 ______

      By Ms. MOSELEY-BRAUN:
  S. 2034. A bill to improve the quality of public elementary and 
secondary school libraries, media centers, and facilities in order to 
help meet the National Education Goals; to the Committee on Labor and 
Human Resources.


                 educational infrastructure act of 1994

  Ms. MOSELEY-BRAUN. Mr. President, I rise today to introduce the 
Education Infrastructure Act of 1994, legislation designed to help 
local school districts finance the repair, renovation, alteration, and 
construction of public elementary and secondary school facilities.
  The American system of public education has historically given local 
school boards primary responsibility for maintaining our Nation's 
education infrastructure.
  For a long time, local school boards were able to meet that 
responsibility. They built the school buildings in America. However, 
the ability of local school boards to continue to meet that 
responsibility has steadily declined. As a result, our schools are 
aging. Thirty one percent of our nation's schools were constructed 
before world war II, and 43 percent during the fifties and sixties to 
augment the existing education infrastructure in order to meet baby 
boom needs.
  Less than 25 percent of existing schools were built during the 
1970's, the 1980's, and the 1990's.
  To build schools, local school boards rely on local property taxes. 
And, as we all know, school boards in every State in the country are 
finding it increasingly difficult to support their academic programs, 
much less their school facilities, with local property taxes.
  Mr. President, local property taxes are an inadequate source of 
funding for public education because they make the quality of public 
education dependent upon the local property wealth.
  Two districts in Illinois illustrate the gross disparities created by 
our current school financing system.
  In 1990, the owner of a $100,000 home in a prosperous community paid 
$2,103 in local property taxes. This community spent an average of 
$10,085 on its public school students. On the other hand, the owner of 
a $100,000 home in a low- and moderate-income community paid $4,139, 
almost twice as much, even though that community was able to spend only 
$3,483 on each of their public schools students--less than one-third of 
the money the more prosperous community was spending.
  In 1992, 57 percent of voters in Illinois voted to address the 
problems created by our system's reliance on local property taxes by 
directing the State to increase its share of public education funding.
  The voters of Michigan also voted recently to shift funding for 
public education away from the local property taxes to more equitable 
sources of funding.
  The Education Infrastructure Act would not infringe upon local 
control over public education in any way. Rather, this legislation is 
designed to help local school boards support the repair, renovation, 
alteration, and construction of our Nation's public elementary and 
secondary school facilities.
  By providing assistance for the schoolhouses, we will assist local 
school boards in their efforts to fund badly needed instructional 
services inside the schoolhouse.
  By providing an environment conducive to learning, we will help our 
children learn.
  By providing this needed and long overdue support, we will begin to 
address our failure to adequately engage Federal resources in behalf of 
preparing our children for competition in this global economy and 
securing the future of our democratic institutions. This is in our 
children's interest; this is in our the national interest.
  Mr. President, several recent studies have found that the problems 
facing our Nation's education infrastructure have reached crisis 
proportions.
  In a recent survey of State educational agencies, the Education 
Writers Association found that our Nation's education infrastructure 
needs are about $125 billion: $84 billion for new construction and $41 
billion for maintenance and repairs.
  In fact, the EWA survey also reported that, while 42 percent of our 
Nation's school facilities are in good condition, 33 percent are only 
adequate, and 25 percent are shoddy places for learning.
  More specifically, this survey found that 61 percent of our Nation's 
inadequate school facilities needed major repairs; 43 percent were 
obsolete; 42 percent were environmentally hazardous; 25 percent were 
overcrowded; and 13 percent were structurally unsound.
  Other studies have shown that our Nation's education infrastructure 
is falling apart in both rural and urban school districts alike.
  The Council of Great City Schools, for example, recently reported 
that New York City, Los Angeles, Detroit, and Chicago need more than $1 
billion each to repair old school buildings and build new ones.
  Several education researchers have also concluded that one-half of 
all rural school buildings in the United States are unsafe, inadequate, 
and inaccessible to disabled students.
  In 1992, the Illinois State Board of Education found that its local 
school districts needed more than $542 million for repairs and over 
$468 million to meet State and Federal disability and energy 
conservation laws.
  The Illinois State Board of Education also found that one-third of 
Illinois' public schools were over 50 years old.
  Nonetheless, the Federal Government, as well as most States continue 
to force local school districts to rely increasingly on local property 
taxes for public education in general, and for school repair and 
construction projects in particular.
  In Illinois, for example, the local share of public education funding 
increased from 48 percent during the 1980-81 school year to 58 percent 
during the 1992-93 school year, while the State's share, the larger 
pie, fell from 43 percent to 34 percent in the same period. At the same 
time, State support for repair, renovation, alteration, and 
construction of public school facilities has fallen even more 
dramatically in Illinois, one of at least 23 States, Mr. President, 
which provides little or no funding for school facilities projects.
  Although the Illinois General Assembly created the Capital Assistance 
Program in the early 1970's to help local school districts finance 
school repair and construction projects, support for this program has 
diminished rapidly. During fiscal years 1985 through 1990, the State of 
Illinois only appropriated $18 million for local school repair and 
construction projects, and then only on an individual direct-grant 
basis.
  In most cases, individual schools are finding it increasingly 
difficult to support routine maintenance and repairs within their 
tightening school budgets. In fact, the Council of Great City Schools 
reported in 1987 that the percentage of local school budgets devoted to 
building maintenance has steadily declined from 12.7 percent in 1939 to 
3.3 percent in 1986. Again, that is in the context of an aging school 
facility sample.
  Mr. President, in his book ``Savage Inequalities,'' Jonathan Kozol 
used a series of interviews and personal observations to highlight the 
negative effects that inadequate school facilities have on our Nation's 
children. Mr. Kozol quoted in that book a 1989 St. Louis Post Dispatch 
story relating the following:

       The Martin Luther King Junior School in East St. Louis, 
     Illinois was evacuated Friday afternoon after sewage flowed 
     into the kitchen, the gym, and the parking lot.

  Mr. Kozol then encourages his readers to see the school crisis 
through the eyes of a young girl who said:

       We have a school in East St. Louis named for Dr. King. The 
     school is full of sewer water, and the doors are locked with 
     chains. Every student in the school is black. It is like a 
     terrible joke on history.

  Mr. Kozol also quoted another student who was so frustrated with her 
school environment she stated:

       I don't go to physics class, because my lab has no 
     equipment. I don't even use the toilets. If I do, I come back 
     into class feeling dirty.

  The Federal Government must accept a share of the blame in failing to 
provide students in East St. Louis and throughout this country with 
school environments which are conducive to learning
  In the last decade alone, the Federal Government's share of public 
education funding has dropped from 9.8 percent to 6.1 percent
  Yet, what most Americans do not know is that out of the $12.9 billion 
that we spent or invested in elementary and secondary education during 
the 1989-90 school year, only $12 million of that, or about one-one-
thousandth of that amount, was devoted to our Nation's education 
infrastructure, and then only in school districts negatively impacted 
by Federal activities.
  Nationwide, Federal support for elementary and secondary education 
was only 6.2 percent during the 1990-91 school year. What is compelling 
is that of that minuscule amount, only, again, one-one-thousandth of 
that amount goes to the facility, the environment in which learning is 
expected to take place. This hardly comports with our stated support 
for education.
  In her research at Georgetown University, Maureen Edwards found that 
students in poor school facilities can be expected to fall 5.5 
percentage points below those at schools in fair condition and 11 
percentage points below those in schools in excellent condition. And so 
the learning environment is directly related to educational performance 
in school.
  Mr. President, up to this point, the Federal Government has addressed 
the problems facing our Nation's public schools by passing currently 
unfunded Federal mandates, like section 504 of the Rehabilitation Act 
of 1973, the Asbestos Hazard Emergency Response Act of 1986, and the 
Americans With Disabilities Act of 1990. While these mandates have 
laudable goals, and I support them, they have the effect, as a 
practical matter, of passing on even greater unfunded costs to already 
overburdened school districts.
  The Education Infrastructure Act of 1994 challenges Congress to take 
the first important step toward making elementary and secondary 
education the kind of financial priority that it should be.
  This legislation would authorize the Secretary of Education to 
allocate $600 million directly to local school districts throughout 
this country for the repair, renovation, alteration, and construction 
of public elementary and secondary schools, school libraries, media 
centers, and facilities used for academic or vocational instruction.
  The Secretary of Education would be authorized to distribute those 
funds to local school districts, including, by the way, those with 
large numbers of or percentages of disadvantaged students, which can 
demonstrate urgent repair, renovation, alteration, or construction 
needs. I underscore ``urgent'' because $600 million just begins to 
address this problem. More specifically, the Education Infrastructure 
Act would help local school districts: First, inspect their facility; 
second, repair the facilities that pose a health or safety risk to 
students; third, upgrade their facilities to accommodate new 
instructional technologies; fourth, install school security and 
communications systems; fifth, conserve energy; and sixth, build new 
schools to replace old ones that are most cost effectively torn down.
  The bill would help local school districts meet important yet 
currently unfunded Federal mandates, including section 504 of the 
Rehabilitation Act of 1973, the Asbestos Hazard Emergency Response Act 
of 1986, and the Americans With Disabilities Act of 1990.
  Mr. President, like most of my colleagues, I voted for the crime bill 
last year because it makes an important investment in the safety and 
security of our communities.
  I firmly believe that if the Senate can make the tough choices 
necessary to invest $600 million in each of the next 5 years for the 
construction of regional prisons, we can--no, we must--work together in 
a bipartisan effort to begin making the necessary investments in our 
Nation's public schools.
  the Corrections Yearbook estimated that the average cost of 
constructing a new maximum security prison was over $74,000 per 
prisoner in 1993, while, at the same time, the American School and 
University Magazine found that the average cost of constructing a new 
elementary, middle, or high school was less than $14,000 per student in 
1993. We can clearly invest a little in schools to save a lot in jails. 
We can build classrooms instead of prison cells and enhance our 
society's return on its investment a thousand-fold.
  Mr. President, these savings do not even take into account the 
savings in welfare, drug addiction, and crime programs created by 
investing in public schools as opposed to Federal prisons.
  Nevertheless, I recognize the fact that some of my colleagues may not 
yet know that the problems facing our education infrastructure have 
reached crisis proportions. Therefore, I want to take this opportunity 
to show my colleagues some of the very disturbing pictures I have 
received of the current condition of our Nation's public schools.
  The first picture is of a science lab, and I will not describe where 
the schools are. This is by way of demonstration, because we have 
demonstrative evidence from all over this country, and it is currently 
being collected. I hope, at some point, to be able to provide every 
Member of this Senate with specific information regarding the schools 
in their State. But this first picture is of a science lab in a high 
school. You will notice that there is no equipment, no electrical 
outlets, missing floor tiles, and it is in a general deteriorated 
condition.
  Small wonder that you cannot do much scientific research or learning 
in an atmosphere like that.
  The second picture is another science lab. This one again has no 
equipment, no electrical outlets, missing floor tiles, a generally 
deteriorated condition overall.
  The third picture is the ceiling in a classroom. This is actually a 
classroom, Mr. President. Leaking water has knocked the plaster down, 
and it clearly poses a safety hazard for any youngster who thought he 
or she was going to learn anything in that environment.
  The fourth picture, Mr. President, is a ceiling in a classroom in a 
high school. Here you see the lathing falling apart, the plaster gone, 
the wood lath half gone. This is a function of termites eating at 
plaster, and the school district did not have the money to provide for 
the reconstruction of this facility.
  The fifth picture I have here is a portable classroom. You can 
remember particularly during the post-war years a number of school 
districts put up portable classrooms. This one is over 40 years old 
now. It is no longer obviously considered temporary. It was put up as a 
temporary classroom 40 years ago. It is no longer temporary. You see 
the lighting is such that it is almost impossible to learn or to read 
even in that environment.
  The sixth picture is again another school classroom. Again the 
physical condition is falling apart. There is no money in this school 
district for new paint or, for that matter, even for new chairs.
  This next picture, Mr. President, is again another safety hazard. 
This is exposed deteriorated electrical wiring in a high school. This 
is clearly a safety hazard and would require extensive and costly 
renovation that the school district is just not able to put together.
  Picture 8 is a deteriorating school roof. This school was 115 years 
old, and the school roof is too expensive to replace with modern-day 
costs. So again this is another urgent renovation and repair or 
reconstruction need.
  In this next picture, and everybody who has been at school lately 
will recognize the disgusting school bathroom, nonfunctioning drain 
pipes, no money to correct the drainage, problem graffiti on the walls. 
This is part and parcel of the school facility problem we are facing 
now.
  The next picture is rusting lockers. This is a class of school that 
is decades old. These lockers are decades old, and there is no money to 
replace them. They do not lock. But again that is the condition of our 
schools today.
  The eleventh picture is an outside stairwell, and this is a little 
hard to see. This is a stairwell in a high school. There are actually 
holes in the floor. The rust has eaten through to the risers, and this 
again is a safety hazard that has not yet been cured.
  The next picture is an attic stairwell in an elementary school. Now 
the reason this looks like a junky stairwell is the fact this is a 
special education classroom, Mr. President. This is what the school 
board did to respond to our mandate that we provide educational 
opportunity to handicapped youngsters. This, it seems to me, is 
disgraceful, but this was what they were forced to do because of the 
lack of facilities.
  The next picture here is one as we talk about our competition in the 
global economy. This is a school library, deteriorating book shelf in 
the school library, lack of adequate books. Most school library books, 
and this is reported by the American Libraries Association, are 25 
years old. I daresay that in 25 years an awful lot has happened in the 
world that we want our youngsters to get in the course of an education.

  The next picture is one of windows in a high school entrance. As you 
can see the lighting is terrible. There is no other lighting in the 
hallway, and these replacement windows have been there for years and 
they have not been replaced.
  So I show these pictures, Mr. President, to make the point if it has 
not been made already how desperately and urgently needed investment in 
our school facilities has become.
  Mr. President, I am one of the original cosponsors of the Goals 2000 
legislation which we recently passed, which was a signal event and very 
important legislative initiative by this Congress. The Educate America 
Act was signed by President Clinton into law on March 31 of this year.
  I support Goals 2000 because it promises to create a coherent 
national framework for education reform founded on the national 
education goals.
  One essential building block of reform is better school facilities. I 
am pleased, therefore, that Goals 2000 included an amendment that 
directs the National Education Standards and Improvement Council to 
develop voluntary national opportunity-to-learn standards which address 
the condition of school facilities.
  However, Mr. President, more needs to be done, and that is why the 
Education Infrastructure Act is so very necessary.
  Local school boards need more than model standards in order to be 
able to provide their students with environments which are conducive to 
learning. Local school boards need Federal financial assistance to 
address the problems now facing our Nation's public school facilities.
  This act, the Education Infrastructure Act, is endorsed by the 
national PTA, the National Education Association, the National 
Association of School Boards, the American Association of School 
Administrators, the Council of Great City Schools, the National 
Committee for Adequate School Housing, the City University of New York, 
the AFL-CIO Building and Trades Commission, the Military Impacted 
Schools Association, the American Library Association, the American 
Federation of Teachers, the National Association of Federal Education 
Program Administrators, ASPIRA, the Council of Education Facilities 
Planners International, and the American Federation of School 
Administrators.
  As much to the point, Mr. President, a 1991 poll taken among 
America's high school students found that their No. 1 priority, one of 
their priorities--it was the No. 1 priority among high school students 
for investment--would be additional educational dollars invested in 
improved maintenance and construction of the schools. The young people 
know that school construction renovation and repair is vitally 
necessary and a long-neglected responsibility.
  Mr. President, I would like to conclude my remarks by urging my 
colleagues to support the Education Infrastructure Act and ask for 
their support and assistance.
  Again, I look forward to visiting with Members on the relative 
committees and with Members of this body to provide whatever 
information may be helpful with regard to the specifics in their State. 
But I submit to you, Mr. President, this is a national problem, this is 
a national crisis, and our national interest is involved in providing 
an atmosphere and environment in which our young people can learn.
  Mr. President, I ask unanimous consent that a copy of the bill and a 
summary of its provisions be printed at this point in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2034

       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 ``Education Infrastructure Act 
     of 1994''.

     SEC. 2. FINDINGS.

       The Congress finds that--
       (1) improving the quality of public elementary and 
     secondary school libraries, media centers, and facilities 
     will help our Nation meet the National Education Goals;
       (2) Federal, State, and local funding for the repair, 
     renovation, alteration and construction of public elementary 
     and secondary school libraries, media centers, and facilities 
     has not adequately reflected need; and
       (3) the challenges facing our Nation's public elementary 
     and secondary schools require the concerted and collaborative 
     efforts of all levels of government and all sectors of the 
     community.

     SEC. 3. PURPOSE.

       It is the purpose of this Act to help our Nation meet the 
     National Education Goals through the repair, renovation, 
     alteration and construction of public elementary and 
     secondary school libraries, media centers, and facilities, 
     used for academic or vocational instruction.

     SEC. 4. DEFINITIONS.

       For purposes of this Act--
       (1) the term ``alteration'' refers to any change to an 
     existing property for use for a different purpose or 
     function;
       (2) the term ``construction'' refers to the erection of a 
     building, structure, or facility, including the concurrent 
     installation of equipment, site preparation, associated 
     roads, parking, and utilities, which provides area or cubage 
     not previously available, including--
       (A) freestanding structures, additional wings, or floors, 
     enclosed courtyards or entryways, and any other means to 
     provide usable program space that did not previously exist; 
     and
       (B) the complete replacement of an existing facility;
       (3) the term ``eligible local educational agency'' means a 
     local educational agency, as such term is defined in section 
     1471 of the Elementary and Secondary Education Act of 1965, 
     which demonstrates in the application submitted under section 
     7 that such agency--
       (A) has urgent repair, renovation, alteration and 
     construction needs for its public elementary or secondary 
     school libraries, media centers, and facilities, used for 
     academic or vocational instruction; and
       (B) serves large numbers or percentages of disadvantaged 
     students;
       (4) the term ``renovation'' refers to any change to an 
     existing property to allow its more efficient use within such 
     property's designated purpose;
       (5) the term ``repair'' refers to the restoration of a 
     failed or failing real property facility, component, or a 
     building system to such a condition that such facility, 
     component, or system may be used effectively for its 
     designated purpose, if, due to the nature or extent of the 
     deterioration or damage to such facility, component, or 
     system, such deterioration or damage cannot be corrected 
     through normal maintenance; and
       (6) the term ``Secretary'', unless otherwise specified, 
     means the Secretary of Education.

     SEC. 5. IMPROVEMENT OF PUBLIC ELEMENTARY AND SECONDARY 
                   EDUCATION FACILITIES PROGRAM AUTHORIZED.

       (a) Program Authority.--From amounts appropriated pursuant 
     to the authority of subsection (b) in any fiscal year, the 
     Secretary shall award grants to eligible local educational 
     agencies having applications approved under section 6 to 
     carry out the authorized activities described in section 7.
       (b) Authorization of Appropriations.--There are to be 
     appropriated $600,000,000 for fiscal year 1995, and such sums 
     as may be necessary for each of the fiscal years 1996 through 
     2004, to carry out this Act.

     SEC. 6. APPLICATIONS.

       Each eligible local educational agency desiring to receive 
     a grant under this Act shall submit an application to the 
     Secretary. Each such application shall--
       (1) contain an assurance that such application was 
     developed in consultation with parents and classroom 
     teachers; and
       (2) include--
       (A) a description of each architectural, civil, structural, 
     mechanical, electrical, or telephone line, deficiency to be 
     corrected with funds provided under this Act, including the 
     priority for the repair of the deficiency;
       (B) a description of the corrective action to be supported 
     with funds provided under this Act;
       (C) a cost estimate of the proposed corrective action;
       (D) an identification of the total amount and percentage of 
     such agency's budget used in the preceding fiscal year for 
     the maintenance, repair, renovation, alteration, and 
     construction of public elementary and secondary school 
     libraries, media centers, and facilities;
       (E) a description of how such agency plans to maintain the 
     repair, renovation, alteration, or construction supported 
     with funds provided under this Act;
       (F) a description of the extent to which the repair, 
     renovation, alteration, or construction will help the 
     Secretary meet the goals described in section 9(1)(A); and
       (G) such other information as the Secretary may reasonably 
     require.

     SEC. 7. AUTHORIZED ACTIVITIES.

       Each eligible local educational agency receiving a grant 
     under this Act shall use such grant funds to help our Nation 
     meet the National Education Goals through the repair, 
     renovation, alteration, and construction of a public 
     elementary or secondary school library, media center, or 
     facility, used for academic or vocational instruction, 
     including--
       (1) inspection of such library, center, or facility;
       (2) repairing such library, center, or facility that poses 
     a health or safety risk to students;
       (3) upgrading of and alteration to such library, center, or 
     facility in order to accommodate new instructional 
     technology;
       (4) meeting the requirements of section 504 of the 
     Rehabilitation Act of 1973 and the Americans with 
     Disabilities Act of 1990;
       (5) removal or containment of severely hazardous material 
     such as asbestos, lead, and radon using a cost-effective 
     method;
       (6) installation or upgrading of school security and 
     communications systems;
       (7) energy conservation;
       (8) meeting Federal, State, or local codes related to fire, 
     air, light, noise, waste disposal, building height, or other 
     codes passed since the initial construction of such library, 
     center, or facility; and
       (9) replacing an old such library, center, or facility that 
     is most cost-effectively torn down rather than renovated.

     SEC. 8. REQUIREMENTS.

       (a) Special Rules.--
       (1) Maintenance of effort.--An eligible local educational 
     agency may receive a grant under this Act for any fiscal year 
     only if the Secretary finds that either the combined fiscal 
     effort per student or the aggregate expenditures of that 
     agency and the State with respect to the provision of free 
     public education by such local educational agency for the 
     preceding fiscal year was not less than 90 percent of such 
     combined fiscal effort or aggregate expenditures for the 
     fiscal year for which the determination is made.
       (2) Supplement not supplant.--An eligible local educational 
     agency shall use funds received under this Act only to 
     supplement the amount of funds that would, in the absence of 
     such Federal funds, be made available from non-Federal 
     sources for the repair and construction of school facilities 
     used for educational purposes, and not to supplant such 
     funds.
       (b) General Limitations.--
       (1) Real property.--No part of any grant funds under this 
     Act shall be used for the acquisition of any interest in real 
     property.
       (2) Maintenance.--Nothing in this Act shall be construed to 
     authorize the payment of maintenance costs in connection with 
     any projects constructed in whole or in part with Federal 
     funds provided under this Act.
       (3) Environmental safeguards.--All projects carried out 
     with Federal funds provided under this Act shall comply with 
     all relevant Federal, State, and local environmental laws and 
     regulations.
       (4) Applicability of laws regarding individuals with 
     disabilities.--Sections 504 and 505 of the Rehabilitation Act 
     of 1973 and the Americans with Disabilities Act of 1990 shall 
     apply to projects carried out with Federal funds provided 
     under this Act.

     SEC. 9. CONTRACTS.

       If a project assisted under this Act will be carried out 
     pursuant to a contract, the following limitations shall 
     apply:
       (1) Minority participation.--The Secretary shall 
     establish--
       (A) goals for the participation of small business concerns 
     as contractors or subcontractors that meet or exceed the 
     governmentwide goals established pursuant to section 15(g)(1) 
     of the Small Business Act (15 U.S.C. 644(g)(1)) for the 
     participation of such concerns in contracts supported with 
     funds under this Act (and subcontracts under such contracts); 
     and
       (B) an evaluation process for such participation that gives 
     significant weight to the goals described in subparagraph 
     (A).
       (2) Davis-bacon.--All laborers and mechanics employed by 
     contractors or subcontractors in the performance of any 
     contract and subcontract for the repair, renovation, 
     alteration, or construction, including painting and 
     decorating, of any building or work that is financed in whole 
     or in part by a grant under this Act, shall be paid wages not 
     less than those determined by the Secretary of Labor in 
     accordance with the Act of March 3, 1931 (commonly known as 
     the Davis-Bacon Act); as amended (40 U.S.C. 276a-276a-5). The 
     Secretary of Labor shall have the authority and functions set 
     forth in reorganization plan of No. 14 of 1950 (15 FR 3176; 
     64 Stat. 1267) and section 2 of the Act of June 1, 1934 
     (commonly known as the Copeland Anti-Kickback Act) as amended 
     (40 U.S.C. 276c, 48 Stat. 948).

     SEC. 10. TECHNICAL ASSISTANCE.

       The comprehensive regional centers established under 
     section 2203 of the Elementary and Secondary Education Act of 
     1965 may provide assistance in the repair, renovation, 
     alteration, and construction of public elementary or 
     secondary school libraries, media centers, or facilities to 
     eligible local educational agencies receiving assistance 
     under this Act.

     SEC. 11. FEDERAL ASSESSMENT.

       The Secretary shall reserve not more than 1 percent of 
     funds appropriated pursuant to the authority of section 
     5(b)--
       (1) to collect such data as the Secretary determines 
     necessary at the school, local, and State levels; and
       (2) to conduct studies and evaluations, including national 
     studies and evaluations, in order to--
       (A) monitor the progress of projects supported with funds 
     provided under this Act; and
       (B) evaluate the state of American public elementary and 
     secondary school libraries, media centers, and facilities; 
     and
       (3) to report to the Congress by July 1, 1997, regarding 
     the findings of the studies and evaluations described in 
     paragraph (2).
                                  ____


                      Section-by-Section Analysis


                               section 1

       Short title: ``The Education Infrastructure Act of 1994.''


                               section 2

       Congressional findings.


                               section 3

       Purpose: ``To help our nation meet the national education 
     goals through the repair, renovation, alteration, and 
     construction of public elementary and secondary school 
     libraries, media centers, and facilities used for academic or 
     vocational instruction''.


                               section 4

       Definitions:
       Alteration: Any change to an existing property for use for 
     a different purpose or functions.
       Construction: the erection of a building structure, or 
     facility, including the concurrent installation of equipment, 
     site preparation, associated roads, parking and utilities, 
     which provides area or cubage not previously available, 
     including--
       (A) freestanding structures, additional wings, or floors, 
     enclosed courtyards, or entryways, and any other means to 
     provide usable program space that did not previously exist; 
     and
       (B) the complete replacement if an existing facility;
       Eligible Local Educational Agency: a local educational 
     agency, as such term is defined in section 1471 of the 
     Elementary and Secondary Education Act of 1965, which 
     demonstrates in the application submitted under section 7 
     that such agency--
       (A) has urgent repair, renovation, alteration and 
     construction needs for its public elementary or secondary 
     school libraries, media centers, and facilities, used for 
     academic or vocational instruction; and
       (B) serves large numbers or percentages of disadvantaged 
     students;
       Renovation: any change to an existing property to allow its 
     more efficient use within such property's designated 
     purposes;
       Repair: the restoration of a failed or failing real 
     property facility, component, or a building system to such a 
     condition that such facility, component, or system may be 
     used effectively for its designated purpose, if, due to the 
     nature or extent of the deterioration or damage cannot be 
     corrected through normal maintenance; and
       Secretary: the Secretary of Education.


                               section 5

       Authorization: $600,000,000 in fiscal year 1995 and such 
     sums as may be necessary in fiscal years 1996 through 2004 to 
     carry out the purpose of this act.


                               section 6

       Applciations: Each eligible local educational agency 
     desiring to receive a grant under this Act shall submit an 
     application to the Secretary. Each such application shall--
       (1) contain an assurance that such application was 
     developed in consultation with parents and classroom 
     teachers; and
       (2) include:
       (A) a description of each architectural, civil, structural, 
     mechanical, electrical, or telephone line deficiency to be 
     corrected with funds under this Act, including the priority 
     for the repair of the deficiency;
       (B) a description of the corrective action to be supported 
     with funds under this Act;
       (C) a cost estimate of the proposed corrective action;
       (D) an identification of the total amount and percentage of 
     such agency's budget used in the preceding fiscal year for 
     the maintenance, repair, renovation, alteration, and 
     construction of public elementary and secondary school 
     libraries, media centers, and facilities;
       (E) a description of how such agency plans to maintain the 
     repair, renovation, alteration, or construction supported 
     with funds under this Act;
       (F) a description of the extent to which the repair, 
     renovation, alteration, or construction will help the 
     Secretary meet the goals described in section 9(1)(A); and
       (G) such other information as the Secretary may reasonably 
     require.


                               section 7

       Authorized Activities: Each eligible local educational 
     agency receiving a grant under this Act shall use such grant 
     funds to help our Nation meet the National Education Goals 
     through the repair, renovation, alteration, and construction 
     of a public elementary or secondary school library, media 
     center, or facility, used for academic or vocational 
     instruction, including--
       (1) inspection of such library, center, or facility:
       (2) repairing such library, center, or facility that poses 
     a health or safety risk to student;
       (3) upgrading of and alterations to such library, center, 
     or facility, to accommodate new instructional technology;
       (4) meeting the requirements of Section 504 of the 
     Rehabilitation Act of 1973 and the Americans with 
     Disabilities Act;
       (5) removal or containment of severely hazardous material 
     such as asbestos, lead, and radon using a cost effective 
     method;
       (6) installation or upgrading of school security and 
     communications systems;
       (7) energy conservation;
       (8) meeting local, state of federal codes related to fire, 
     air, light, noise waste disposal, building height, or other 
     codes passed since the initial construction of the library, 
     center, or facility; and
       (9) replacing an old such library, center, or facility that 
     is most cost-effectively torn down rather than renovated''.


                               section 8

       Requirements.


                               section 9

       Contracts.


                               section 10

       Technical Assistance: ``The comprehensive regional centers 
     established under section 2203 of the Elementary and 
     Secondary Education Act of 1965 may provide assistance in the 
     repair, renovation, alteration, and construction of public 
     elementary or secondary school libraries, media centers, or 
     facilities to eligible local educational agencies receiving 
     assistance under this Act.


                               section 11

       Federal Assessment: The Secretary shall reserve not more 
     than 1 percent of funds appropriated pursuant to the 
     authority of section 5(b)--
       (1) to collect such data as the Secretary determines 
     necessary at the school, local, and State levels; and
       (2) to conduct studies and evaluations, including national 
     studies and evaluations, in order to--
       (A) monitor the progress of projects supported with funds 
     under this Act;
       (B) evaluate the state of American public elementary and 
     secondary school libraries, media centers, and facilities; 
     and
       (3) to report to Congress by July 1, 1997, regarding the 
     findings of the studies and evaluations described in 
     paragraph (2).
                                 ______

      By Mr. BUMPERS:
  S. 2035. A bill to withdraw certain lands located in the Mark Twain 
National Forest from the mining and mineral leasing laws of the United 
States, and for other purposes; to the Committee on Energy and Natural 
Resources.


                  ozark rivers protection act of 1994

 Mr. BUMPERS. Mr. President, I rise today to introduce the 
Ozark Rivers Protection Act of 1994. This legislation will withdraw 
certain lands within the Mark Twain National Forest from the mining and 
mineral leasing laws of the United States in order to protect several 
environmentally sensitive waterways located near the forest and the 
area's drinking water supply.
  The Eleven Point River, located within the 3-million-acre Mark Twain 
National Forest in Missouri, is one of the eight original Wild and 
Scenic Rivers designated by Congress in 1968. The Eleven Point River is 
part of the habitat of the federally endangered bald eagle and State 
endangered Swainson's Warbler, while nearby caves harbor two federally 
endangered bat species--Gray and Indiana. The natural and recreational 
opportunities attract 4 million visitors annually to this wild area. 
American Rivers recently designated the Eleven Point River as one of 
the 20 most threatened rivers in the country due to the potential of 
lead mining in the Eleven Point District of the Mark Twain National 
Forest.
  In addition, the Current and Jacks Fork Rivers in the area make up 
the Ozark National Scenic Riverways, which were the first National 
Rivers designated by Congress in 1964. The National Park Service, which 
oversees the Ozark National Scenic Riverways, has called for the 
prohibition of mining in the Eleven Point District because of the high 
likelihood mining activity in the area would have of contaminating the 
Ozark Scenic Riverways.
  In 1992, the Bureau of Land Management authorized the Doe Run Co. to 
perform exploratory drilling in the Eleven Point District of the Mark 
Twain Forest to determine the extent of lead deposits located in the 
forest. If sufficient deposits are found, Doe Run will undoubtedly seek 
permission to mine in the area, which is located 1.5 miles from the 
Eleven Point River and within the subsurface watershed of the Ozark 
National Scenic Riverways. There is great potential damage for these 
nationally recognized watersheds if mining is permitted to occur. The 
karst terrain of the underlying rock is characterized by easily 
dissolved bedrock, numerous springs, caves, losing streams, and sink 
holes. The nature of the area makes it impossible to contain mining or 
milling effluents on the surface or subsurface. In addition, the 
aquifer located beneath the forest is the primary source of water for 
20,000 residents in southeast Missouri and northeast Arkansas. In order 
to mine any lead located in the area, Doe Run would have to bore 
through two area aquifers.
  Mr. President, I am sure there is no need to extensively address the 
long litany of health problems associated with lead. According to the 
American Academy of Pediatrics, between 2 and 4 million American 
children have sufficient lead in their blood to diminish their IQ, 
reduce physical stature, damage hearing, decrease hand-eye coordination 
and impair their ability to pay attention in school. The Department of 
Health and Human Services has called lead poisoning ``the most 
important environmental health problem facing young children.'' We must 
act to prevent the water supply in northeast Arkansas and southeast 
Missouri from being contaminated with lead, thereby threatening our 
children.

  The Ozark Rivers Protection Act would prohibit mining in the Eleven 
Point District of the Mark Twain National Forest from the application 
of the mining and mineral leasing laws. This legislation does nothing 
more than protect an especially environmentally sensitive area. Given 
the fact that the Bureau of Mines estimates that we currently have a 
60-year supply of lead, it would not impact our national security 
interests. I urge my colleagues to support the bill.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2035

       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 ``Ozark Rivers Protection Act 
     of 1994.''

     SEC. 2. WITHDRAWAL OF LANDS WITHIN MARK TWAIN NATIONAL 
                   FOREST.

       Subject to valid existing rights, after the date of 
     enactment of this Act, all federal lands within the Eleven 
     Point District of the Mark Twain National Forest are 
     withdrawn from entry, location, or patent under the general 
     mining laws, the operation of the mineral and geothermal 
     leasing laws and the mineral material disposal laws.
                                 ______

      By Mr. McCAIN (for himself and Mr. Inouye):
  S. 2036. A bill to specify the terms of contracts entered into by the 
United States and Indian tribal organizations under the Indian Self-
Determination and Education Assistance Act, and for other purposes; to 
the Committee on Indian Affairs.


         indian self-determination contract reform act of 1994

  Mr. McCAIN. Mr. President, today I am introducing the Indian Self-
Determination Contract Reform Act of 1994. I am pleased that Senator 
Inouye, the chairman of the Committee on Indian Affairs, has joined 
with me as a cosponsor of this legislation.
  I am introducing this bill to stimulate discussion and debate about 
the implementation of the Indian Self-Determination and Education 
Assistance Act. This legislation would prohibit the Secretary of the 
Interior and the Secretary of Health and Human Services from 
promulgating regulations under the Self-Determination Act. It 
prescribes the terms and conditions which must be used in any contract 
between an Indian tribe and the Bureau of Indian Affairs [BIA] or the 
Indian Health Service [IHS]. No modifications could be made to any 
contract which is entered into under the authority of the Self-
Determination Act without the written consent of the Secretary and the 
tribe.
  The policy of self-determination has proven to be very successful in 
terms of promoting tribal operation of Federal programs and services 
administered by the BIA and IHS. The policy has its origins in 
President Nixon's 1970 ``Special Message to the Congress on Indian 
Affairs'' which stated:

       For years we have talked about encouraging Indians to 
     exercise greater self-determination, but our progress has 
     never been commensurate with our promises. Part of the reason 
     for this situation has been the threat of termination. But 
     another reason is the fact that when a decision is made as to 
     whether a Federal program will be turned over to Indian 
     administration, it is the federal authorities and not the 
     Indian people who finally make the decision.
       This situation should be reversed. In my judgment, it 
     should be up to the Indian tribe to determine whether it is 
     willing to assume administrative responsibility for a service 
     program which is presently administered by a federal agency.

  In response to President Nixon, the Congress passed the Indian Self-
Determination and Education Assistance Act in 1974 and it was signed 
into law by President Ford on January 4, 1975. Major amendments were 
enacted in 1988 in an effort to improve the implementation of the Act. 
Today, approximately $531 million of the funds appropriated to the BIA 
are administered by tribal governments under self-determination 
contracts. There are over 400 contracts between Indian tribes and the 
IHS involving about $497 million annually. Indian tribes contract with 
the IHS for the operation of 8 fully accredited hospitals, 347 health 
centers, and 70 service units.

  Despite these successes, the implementation of the act has 
consistently been plagued by an oppressive Federal bureaucracy. During 
the consideration of the 1988 amendments, the Senate Committee on 
Indian Affairs noted that the act had failed to meet its goal of 
reducing the Federal bureaucracy and ending the Federal domination of 
Indian programs. In fact, there had been no reduction in the Federal 
bureaucracy. Instead the act had spawned an increase in Federal 
officials who were employed to monitor self-determination contracts. 
The Committee found that Federal bureaucrats had imposed administrative 
and reporting requirements on Indian tribes which were more stringent 
than the standards which would apply to direct Federal operation of the 
programs, activities, and services that the tribes were contracting to 
provide under the act. So many layers of bureaucracy and rules had been 
imposed that the contract approval process required an average of 6 
months rather than the 60 days mandated by the act.
  The committee found that the original goal of ensuring maximum tribal 
participation in the planning and administration of Federal services, 
programs and activities intended for the benefit of Indians had been 
undermined by excessive bureaucracy and unnecessary contract 
requirements. The 1988 amendments were intended to ``* * * remove many 
of the administrative and practical barriers that seem to persist * * * 
under the act. The amendments required new regulations to be developed 
by BIA and IHS with the participation of Indian tribes. Senate Report 
100-274, which accompanied the amendments, stated:

       The regulations regarding contracts under the Indian Self-
     Determination Act should be relatively simple, 
     straightforward, and free of unnecessary requirements or 
     procedures. The Committee intends * * * [the] regulations to 
     become effective prior to the beginning of the first Fiscal 
     Year following enactment of this amendment.

  Mr. President, it has now been nearly 6 years since the 1988 
amendments were enacted. During those years there have been at least 
three oversight hearings to determine why the required regulations had 
not been developed and implemented. On January 20, 1994, the BIA and 
IHS finally published proposed regulations in the Federal Register. 
Despite the fact that the regulations were supposed to be relatively 
simple, straightforward, and free of unnecessary requirements or 
procedures, the new regulations are 83 pages long and contain hundreds 
of new requirements. As one commentator noted: ``* * * in numerous 
instances the proposed regulations are more restrictive than existing 
regulations and raise new obstacles and burdens for Indian tribes 
seeking the opportunities for effective tribal self-government promised 
by the act.''
  I find the conduct of the BIA and the IHS to be outrageous. The 
Congress passed and the President signed a law calling for exactly the 
opposite result. In addition, this administration like its predecessor, 
is committed to reducing Federal regulatory burdens. I can think of no 
better place to start to reduce the crippling effect of regulations 
than in the area of Indian self-determination. It is time that the BIA 
and IHS get the message. Self-determination is not simply another 
Federal program and it is not an excuse for Federal officials to 
continue seeking domination over the affairs of tribal governments. In 
this instance, the BIA and the IHS suffer from the delusion that tribal 
programs can only be operated in the way that the BIA or IHS have 
operated them. To the contrary, self-determination requires a 
diminishment of the Federal presence in tribal affairs. This includes 
reducing the Federal work force and minimizing regulatory interference. 
Since the BIA and IHS seem unable or unwilling to accomplish these 
goals, I believe it has become necessary to repeal their authority to 
promulgate regulations under the Self-Determination Act.
  It is entirely possible that regulations will be required in certain 
areas to effectuate the purposes of the act. However, the burden of 
proof should be on the Federal agencies or any other interested party 
to justify to the Congress and to the tribes the need for such 
regulations. In any case, I believe self-determination regulations 
should be kept to a minimum.
  When the Committee on Indian Affairs conducted hearings on this 
legislation, I invite the Federal agencies and other interested parties 
to identify any provisions in the recently proposed regulations which 
are necessary to effectuate the purposes of the act. In addition, I 
invite the BIA and IHS to document the personnel reductions which have 
occurred since 1975 as the act has been implemented. I am hopeful that 
this legislation will finally lead to full compliance with the letter 
and spirit of the Indian Self-Determination and Education Assistance 
Act.
  I ask unanimous consent that the bill and a section-by-section 
summary be printed in the Record immediately following my remarks.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2036

       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 ``Indian Self-Determination 
     Contract Reform Act of 1994''.

     SEC. 2 CONTRACT SPECIFICATIONS.

       Section 105 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450j) is amended to read as 
     follows:

     ``SEC. 105. CONTRACT OR GRANT SPECIFICATIONS.

       ``Each contract or grant entered into under this Act, 
     except an agreement entered into pursuant to title III (25 
     U.S.C. 450f note), shall contain, or incorporate by 
     reference, the following provisions, with modifications where 
     indicated and the blanks appropriately filled:
       ``(a) Authority and Purpose.--
       ``(1) Authority.--This agreement, denoted a Contract of 
     Self-Determination (hereinafter referred to as the 
     `Contract'), is entered into by the Secretary of the Interior 
     (or the Secretary of Health and Human Services) (hereinafter 
     referred to as the `Secretary'), for and on behalf of the 
     United States pursuant to the Indian Self-Determination and 
     Education Assistance Act and by the authority of the          
           tribal government. Unless otherwise provided in this 
     agreement, all of the provisions of the Indian Self-
     Determination and Education Assistance Act are incorporated 
     herein.
       (2) Purpose.--This Contract shall be liberally construed to 
     transfer the funding, functions, and activities for the 
     following programs from the Federal Government to the         
            tribal government: [List functions, activities, and 
     programs.]
       ``(3) Tribal law and forums.--The laws of the               
      tribal government shall be applied in the execution of this 
     Contract and the powers and decisions of the Tribal Court 
     shall be respected to the extent that Federal law, construed 
     in accordance with the applicable canons of construction and 
     the Indian Self-Determination and Education Assistance Act, 
     is not inconsistent.
       ``(b) Terms, Provisions and Conditions.--
       ``(1) Term.--The term of this Contract shall not exceed 3 
     years, unless the Secretary and the tribe agree on a longer 
     period pursuant to section 106 of the Indian Self-
     Determination and Education Assistance Act. The calendar year 
     is the basis for contracts under this Act, unless the 
     Secretary and the tribe agree on a different period.
       ``(2) Effective date.--This Contract shall become effective 
     upon approval and execution by the tribe and the Secretary, 
     unless otherwise provided by law.
       ``(3) Funding amount.--Subject to the appropriation of 
     funds by Congress, the Secretary shall make available to the 
     tribe the total amount specified in the annual agreement 
     incorporated by reference in subsection (f)(2).
       ``(4) Payment.--
       ``(A) In general.--Payments shall be made as expeditiously 
     as possible in compliance with applicable Treasury Department 
     regulations and shall include financial arrangements to cover 
     funding during periods under continuing resolutions to the 
     extent permitted by such resolutions.
       ``(B) Quarterly payments.--To the extent authorized by law, 
     for each fiscal year covered by this Contract, the Secretary 
     shall make available the funds specified for the fiscal year 
     under the annual agreement by paying to the tribe on a 
     quarterly basis one-quarter of the total amount provided for 
     in the annual agreement for that fiscal year, or by using an 
     instrument such as a letter of credit, or other method 
     authorized by law, as may be specified in the annual 
     agreement. To the extent applicable, each quarterly payment 
     shall be made on the first day of each quarter of the fiscal 
     year except for the first quarter, for which the quarterly 
     payment shall be made not later than the date that is 10 
     calendar days after the date on which the Office of 
     Management and Budget apportions the appropriations for the 
     fiscal year for the programs, services, function, and 
     activities subject to the Contract.
       ``(5) Records.--(A) Except for previously provided copies 
     of tribal records that the Secretary demonstrates are clearly 
     required to be maintained as part of the recordkeeping system 
     of the Department of the Interior, tribal records shall not 
     be considered Federal records for purposes of chapter 5 of 
     title 5, United States Code.
       ``(B) The tribe shall maintain a recordkeeping system, and 
     provide reasonable access to records to the Secretary that 
     permits the Department of the Interior to meet its minimum 
     legal recordkeeping program requirements under chapter 31 of 
     title 44, United States Code.
       ``(6) Property.--(A) At the request of the tribe, the 
     Secretary shall make available to the tribe reasonably 
     divisible real property, facilities, equipment, and personal 
     property that the Department had previously utilized to 
     provide the programs, services, functions, and activities now 
     consolidated by the tribe pursuant to subsection (c)(1) of 
     this Contract. A mutually agreed upon list specifying the 
     property, facilities, and equipment so made available shall 
     also be prepared and periodically revised.
       ``(B) Subject to the agreement of the General Services 
     Administration, the Secretary shall delegate to the tribe the 
     authority to acquire such `excess' property as may be 
     appropriate in the judgment of the tribe to support the 
     programs, services, functions, and activities consolidated 
     under subsection (c)(1) of this Contract. The Secretary 
     agrees to make best efforts to assist the tribe in obtaining 
     such confiscated or excess property as may become available 
     to tribes or local governments. Subject to the agreement of 
     the General Services Administration, a screener 
     identification card (General Services Administration form 
     2946) shall be issued to the tribe not later than the 
     effective date of this Contract. The designated official 
     shall, upon request, assist the tribe in securing the use of 
     the card.
       ``(C) The tribe shall, upon acquisition of excess United 
     States Government property, provide adequate documentation to 
     the Secretary to facilitate recordation of the property in 
     the Bureau of Indian Affairs Property Inventory.
       ``(D) The tribe shall determine what capital equipment, 
     leases, rentals, property, or services it shall require to 
     perform its obligations under this subsection, and shall 
     acquire and maintain records of such capital equipment, 
     property rentals, leases, property, or services through 
     tribal procurement procedures.
       ``(7) Savings.--Notwithstanding any other provision of law, 
     any funds appropriated pursuant to the Act of November 2, 
     1921 (42 Stat. 208, chapter 115; 25 U.S.C. 13) shall remain 
     available until expended.
       ``(8) Transportation.--
       ``(A) Use of motor vehicles.--Subject to the agreement of 
     the General Services Administration, the Secretary hereby 
     authorizes the tribe to obtain interagency motor pool 
     vehicles and related services, if available, for performance 
     of any activities under this Contract.
       ``(B) Use of other transportation services.--The Secretary 
     shall make best efforts to obtain the concurrence of the 
     General Services Administration to provide the tribe and its 
     employees with eligibility for services and supplies pursuant 
     to General Services Administration programs and contracts 
     with private entities, including airlines and other 
     transportation carriers.
       ``(9) Regulatory authority.--The tribe is not required to 
     abide by Federal program guidelines, manuals, or policy 
     directives unless otherwise agreed to by the tribe and the 
     Secretary.
       ``(10) Disputes.--(A) Obligations of the United States 
     under this Contract shall be considered to be `duties' under 
     section 110 of the Indian Self-Determination and Education 
     Assistance Act.
       ``(B) Section 110 of the Indian Self-Determination and 
     Education Act shall apply to disputes under this Contract.
       ``(C) In addition or as an alternative to remedies and 
     procedures prescribed by section 110 of the Indian Self-
     Determination and Education Assistance Act the parties may 
     jointly--
       ``(i) submit disputes under this Contract to third-party 
     mediation, which for purposes of this section means that the 
     Secretary and the tribe nominate a third party who together 
     choose a third party mediator (`third-party' means a person 
     not employed by a significantly involved with either the 
     tribe, the Secretary, or the Department of the Interior);
       ``(ii) submit the dispute to the Court of the tribe; or
       ``(iii) submit the dispute to mediation processes provided 
     for under the law of the tribe.
       ``(D) The Secretary shall accept decisions reached by 
     mediation processes or the tribal court, but shall not be 
     bound by an decision that might be in conflict with the 
     interests of the Indians or the United States.
       ``(11) Tribal administrative procedures.--Tribal law and 
     tribal forums shall provide for administrative due process 
     with respect to programs, services, functions, and activities 
     that are provided by the tribe pursuant to this Contract and 
     pursuant to the Indian Civil Rights Act of 1968 (25 U.S.C. 
     1301 et seq.).
       ``(12) Successor annual agreement.--Negotiations for a 
     successor annual agreement, as provided for in subsection 
     (f)(2), shall begin not later than 120 days prior to the 
     conclusion of the preceding annual agreement. The tribe is 
     hereby assured that future funding of successor annual 
     agreements shall only be reduced pursuant to section 106(b) 
     of the Indian Self-Determination and Education Assistance 
     Act. The Secretary agrees to prepare and supply relevant 
     information, and to promptly comply with any request by the 
     tribe for information reasonably needed to determine the 
     funds that may be available for a successor annual agreement 
     as provided for in subsection (f)(2) of this Contract.
       ``(13) Secretarial approval.--(A) Except as provided in 
     subparagraph (B), for the term of the Contract, section 2103 
     of the Revised Statutes (25 U.S.C. 81) and section 16 of the 
     Act of June 18, 1934 (25 U.S.C. 476), shall not apply to any 
     contract entered into by the tribe in connection with this 
     Contract.
       ``(B) Each contract entered into by the tribe shall--
       ``(i) be in writing;
       ``(ii) identify the interested parties, their authorities, 
     and purposes;
       ``(iii) state the work to be performed; and
       ``(iv) state the basis for any claim, the payments to be 
     made, and the terms of the contract, which shall be fixed.
       ``(c) Obligation of the Tribe.--
       ``(1) Consolidation.--Except as provided in subsection 
     (d)(2), the Tribally Controlled Community College Assistance 
     Act of 1978 (25 U.S.C. 1801 et seq.), and title XI of the 
     Education Amendments of 1978 (25 U.S.C. 2001 et seq.), the 
     tribe shall perform the programs, services, functions, and 
     activities as provided in the annual agreement under 
     subsection (f)(2) of this Contract.
       ``(2) Amount of funds.--The total amount of funds covered 
     by the Contract provided for in paragraph (1) that the 
     Secretary shall make available to the            Indian tribe 
     shall be determined in an annual agreement between the 
     Secretary and the tribe, which shall be incorporated in its 
     entirety into this Contract and attached as provided in 
     subsection (f)(2).
       ``(3) Tribal programs.--The tribe agrees to provide the 
     programs, services, functions, and activities identified in 
     the annual agreement. The tribe pledges to practice good 
     faith in upholding its responsibility to provide such 
     programs, services, functions, and activities.
       ``(4) Trust services for individual indians.--To the extent 
     that the annual agreement endeavors to provide trust services 
     to individual Indians that were formerly provided by the 
     Secretary, the tribe shall maintain at least the same level 
     of service as was previously provided by the Secretary, 
     subject to the availability of appropriated funds for such 
     services. The tribe pledges to practice good faith in 
     upholding its responsibility to provide such service. Trust 
     services for individual Indians means only services that 
     pertain to land or financial management connected to 
     individually held allotments.
       ``(d) Obligation of the United States.--
       ``(1) Trust responsibility.--The United States reaffirms 
     its trust responsibility to the            Indian tribe of 
     the            Indian Reservation to protect and conserve the 
     trust resources of the            Indian tribe and of 
     individual Indians of the            Indian Reservation. 
     Nothing in this Contract is intended to, nor shall be 
     construed, to terminate, waive, modify, or reduce the trust 
     responsibility of the United States to the tribe or 
     individual Indians. The Secretary pledges to practice good 
     faith in upholding said trust responsibility.
       ``(2) Programs retained.--As specified in the annual 
     agreement, the United States hereby retains the programs, 
     services, functions, and activities with respect to the tribe 
     that are not specially assumed by the tribe in the annual 
     agreement.
       ``(e) Other Provisions.--
       ``(1) Designated officials.--On or before the effective 
     date of this Contract, both the United States and the tribe 
     shall provide each other with a written designation of a 
     senior official as its representative for notices, proposed 
     amendments to the Contract and other purposes for this 
     Contract.
       ``(2) Indian preference in employment, contracting, and 
     subcontracting.--Tribal law shall govern the provision of 
     Indian preference in employment, contracting, and 
     subcontracting pursuant to this Contract. Section 5 of the 
     Indian Self-Determination and Education Assistance Act shall 
     apply to individuals who leave Federal employment for tribal 
     employment pursuant to this contract.
       ``(3) Contract modifications or amendments.--To be 
     effective any modifications of this Contract shall be in the 
     form of a written amendment to the Contract, and shall 
     require the written consent of the tribe and the Secretary.
       ``(4) Officials not to benefit.--No Member of Congress, or 
     resident commissioner, shall be admitted to any share or part 
     of any contract executed pursuant to this Contract, or to any 
     benefit that may arise therefrom; but this provision shall 
     not be construed to extend to any contract under this 
     contract if made with a corporation for its general benefit.
       ``(5) Covenant against contingent fees.--The parties 
     warrant that no person or selling agency has been employed or 
     retained to solicit or secure any contract executed pursuant 
     to this Contract upon an agreement or understand for a 
     commission, percentage, brokerage, or contingent fee, 
     excepting bona fide employees or bona fide established 
     commercial or selling agencies maintained by the contractor 
     for the purpose of securing business. For breach or violation 
     of this warranty the Government shall have the right to annul 
     any contract without liability or, in its discretion, to 
     deduct from the Contract price or consideration, or otherwise 
     recover, the full amount of such commission, percentage, 
     brokerage, or contingent fee.
       ``(f) Attachments.--
       ``(1) Approval of contract.--The resolution of the           
      Indian tribe approving this Contract is attached hereto as 
     attachment 1.
       ``(2) Annual agreement.--The negotiated and duly approved 
     annual agreement with respect to the            Indian tribe 
     which shall only contain terms that identify the programs, 
     services, functions, and activities to be performed, the 
     general budget category assigned, the funds to be provided, 
     the time and method of payment, and a requirement that all 
     modifications or amendments shall be written and signed by 
     both parties, is hereby incorporated in its entirety in this 
     Contract and attached hereto as attachment 2.''.

     SEC. 3. REGULATIONS.

       (a) In General.--The Secretary of the Interior and the 
     Secretary of Health and Human Services shall not promulgate 
     any regulation relating to grants, contracts, or cooperative 
     agreements entered into pursuant to the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450 et 
     seq.).
       (b) Existing Regulations.--The provisions of this Act shall 
     supersede any conflicting provisions of law or regulation in 
     existence on the date of enactment of this Act.

     SEC. 4. REPEAL.

       (A) In General.--Section 107 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450k) 
     is repealed.
       (b) Conforming Amendments.--
       (1) Section 104(b) of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450h(b)) is amended by 
     striking ``, in accordance with regulations adopted pursuant 
     to section 107,''.
       (2) Section 106(h) of such Act (25 U.S.C. 450j(h)) is 
     amended by striking ``and the rules and regulations adopted 
     by the Secretaries of the Interior and Health and Human 
     Services pursuant to section 107''.
                                  ____


                       section-by-section summary

       Section 1. Short Title. This section provides that the Act 
     may be cited as the ``Indian Self-Determination Contract 
     Reform Act of 1994''.
       Section 2. Contract Specifications. This Section amends 
     section 105 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450j) to require every grant or 
     contract, except self-governance compacts, entered into under 
     the Act to contain the following provisions:
       (a)(1) Authority. This subsection provides that the 
     contract is entered into pursuant to the Indian Self-
     Determination and Education Assistance Act and incorporates 
     all of the provisions of that Act.
       (a)(2) Purpose. This subsection provides that the contract 
     shall be liberally construed to transfer funding, functions 
     and activities for specific federal programs from the Federal 
     government to a tribal government.
       (a)(3) Tribal Law and Forums. This subsection provides that 
     tribal law shall be applied to the execution of the contract 
     to the extent that such law is not inconsistent with Federal 
     law.
       (b)(1) Term. This subsection limits the term of the 
     contract to three years unless the provisions of section 106 
     of the Act are applicable and the Secretary and the Indian 
     tribe agree to a longer term. This subsection also provides 
     that the basis for the contract is the calendar year unless 
     the Secretary and the tribe agree to a different period.
       (b)(2) Effective Date. This subsection provides that the 
     contract shall become effective upon its execution by the 
     parties or on such date as the parties may specify.
       (b)(3) Funding Amount. This subsection requires the 
     Secretary to make available to the tribe the amount specified 
     in the annual agreement pursuant to subsection (f)(2) and 
     subject to the availability of appropriations.
       (b)(4)(A) Payment.-In General. This subsection requires 
     payment under the contract to be made as expeditiously as 
     possible in compliance with applicable Treasury Department 
     regulations.
       (b)(4)(B) Quarterly Payments. This subsection requires the 
     Secretary to make quarterly payments if authorized by law and 
     to do so on the first day of each quarter of the fiscal year 
     except for the first quarter when such payment shall be made 
     within ten days after the office of Management and Budget 
     apportions the applicable appropriations.
       (b)(5) (A), (B) Records. These subsections provide that 
     unless the Secretary determines that tribal records are 
     required as part of the record keeping system of the 
     Department of the Interior, tribal records shall not be 
     considered to be Federal records under Title 5 of the United 
     States Code. The tribe is required to maintain and ensure 
     access to a record keeping system which will enable the 
     Secretary to comply with the record keeping requirements of 
     chapter 31 of Title 44 of the Untied States Code.
       (b)(6) (A), (B), (C) & (D) Property. These subsections 
     authorize the Secretary to make available to the tribe the 
     real and personal property, facilities and equipment which 
     have previously been used to provide the programs, services, 
     functions and activities transferred to the tribe under the 
     contract. Subject to the agreement of the General Services 
     Administration, the tribe is also authorized to acquire 
     excess or confiscated property which may be appropriate to 
     support the tribe's activities under the contract. All such 
     excess property shall be recorded in the Bureau of Indian 
     Affairs' property inventory. The tribe is required to keep 
     records of all capital equipment, property rentals, leases or 
     services which it determines are necessary to perform its 
     obligations under this subsection.
       (b)(7) Savings. This subsection provides that any funds 
     appropriated pursuant to the Snyder Act, 25 U.S.C. 13, shall 
     remain available until expended.
       (b)(8) (A) & (B) Transportation. Subject to the agreement 
     of the General Services Administration, these subsections 
     authorize Indian tribes to obtain interagency motor pool 
     vehicles and other transportation services and supplies.
       (b)(9) Regulatory Authority. This subsection exempts the 
     tribe from Federal program guidelines, manuals or policy 
     directives except as may be otherwise provided by agreement 
     of the parties under this subsection.
       (b)(10) (A), (B), (C) & (D) Disputes. These subsections 
     provide that obligations of the United States under the 
     contract shall be construed as duties under section 110 of 
     the Act and that section 110 will govern dispute resolution 
     unless the parties agree to submit disputes to mediation or 
     to the tribal court. The Secretary is required to accept 
     decisions made through mediation or by a tribal court unless 
     such decisions are in conflict with the interests of the 
     Indian tribe or the United States.
       (b)(11) Tribal Administrative Procedures. This subsection 
     requires the tribe to provide due process of law pursuant to 
     the Indian Civil Rights Act with respect to all programs, 
     services, functions and activities carried out under the 
     contract.
       (b)(12) Successor Annual Agreement. This subsection 
     provides that negotiations for a new annual agreement shall 
     begin not later than 120 days prior to the conclusion of 
     the current annual agreement and that funding levels will 
     only be reduced in the event that appropriations are 
     reduced.
       (b)13)(A) & (B) Secretarial Approval. These subsections 
     provide that 25 U.S.C. 81 and 476 shall not apply to the 
     tribe with respect to any contract entered into in connection 
     with this contract, but all such contracts must be in writing 
     and clearly specify the parties, their duties and the 
     payments to be made.
       (c)(1) Obligation of the Tribe-Consolidation. This 
     subsection provides that the tribe will perform all of the 
     programs, services, functions and activities, except for 
     certain education programs, as provided in the annual funding 
     agreement.
       (c)(2) Amount of Funds. This subsection provides that the 
     total funding available to the tribe shall be determined by 
     the annual funding agreement which is expressly incorporated 
     into this contract.
       (c)(3) Tribal Programs. This subsection obligates the tribe 
     to make a good faith effort to provide the programs, 
     services, functions and activities identified in the annual 
     funding agreement.
       (c)(4) Trust Services for Individual Indians. This 
     subsection requires the tribe to provide the same trust 
     services to individuals as were formerly provided by the 
     Secretary, subject to the availability of appropriated funds.
       (d)(1) Obligation of the United States-Trust 
     Responsibility. This subsection provides that the United 
     States reaffirms its trust responsibility and that nothing in 
     this contract shall be construed to terminate, waive, modify 
     or reduce the Federal trust responsibility.
       (d)(2) Programs Retained. This subsection provides that the 
     United States retains all programs, services, functions and 
     activities that are not specifically assumed by the tribe 
     under the annual funding agreement.
       (e)(1) Other Provisions-Designated Officials. This 
     subsection requires the parties to designate officials to 
     receive notices and proposed amendments to the contract.
       (e)2) Indian Preference In Employment, Contracting and 
     Subcontracting. This subsection provides that tribal law 
     governs Indian preference in employment, contracting and 
     subcontracting under the contract and that section 5 of the 
     Act applies to individuals who leave federal employment for 
     tribal employment under the contract.
       (e)(3) Contract Modifications or Amendments. This 
     subsection requires all modifications to the contract to be 
     in the form of a written amendment to the contract and to 
     have the consent of the Secretary and the tribe.
       (e)(4) Officials Not to Benefit. This subsection prohibits 
     federal officials from sharing in or benefiting from the 
     contract.
       (e)(5) Covenant Against Contingent Fees. This subsection 
     requires the parties to warrant that no one has been employed 
     or retained to secure this contract in return for a 
     percentage or contingent fee.
       (f)(1) Attachments-Approval of Contract. This subsection 
     references the resolution of the tribe which approves the 
     contract.
       (f)(2) Annual Agreement. This subsection incorporates the 
     annual funding agreement into the contract and limits its 
     terms to identification of the programs, services, functions 
     and activities to be performed, the budget category, the 
     funds provided, the time and method of payment and a 
     requirement that all modifications or amendments must be 
     written and signed by both parties.
       Section 3. Regulations. This section prohibits the 
     Secretary of the Interior and the Secretary of Health and 
     Human Services from promulgating any regulations relating to 
     the Indian Self-Determination and Education Assistance Act 
     and provides that the provisions of the Indian Self-
     Determination Contract Reform Act supersede any conflicting 
     regulations or provisions of law.
       Section 4. Repeal. This section repeals the provisions of 
     the Indian Self-Determination and Education Assistance Act 
     which authorized the Secretary of the Interior and the 
     Secretary of Health and Human Services to promulgate 
     regulations to implement the Act.
                                 ______

      By Mr. JOHNSTON (for himself and Mr. Breaux):
  S.J. Res. 182. A joint resolution to designate the year 1995 as 
``Jazz Centennial Year''; to the Committee on the Judiciary.


                          jazz centennial year

 Mr. JOHNSTON. Mr. President, I am pleased to introduce 
legislation to request the President to designate 1995 as the ``Jazz 
Centennial Year.''
  Jazz is the United States most widely recognized indigenous art form 
and was designated as a ``rare and valuable national treasure'' in 1987 
by Concurrent Resolution 57.
  The Louisiana Music Commission, an organization funded by the State 
of Louisiana to promote the awareness and development of the State's 
abundant music resources, has convened a prominent group of music 
historians, players, and supporters to create the New Orleans' Jazz 
Centennial Celebration [NOJCC] and has chosen 1995 to mark the 
centennial of jazz. They based this on a general benchmark relating to 
the formation of the Buddy Bolden band, and the New Orelans' 
celebration of the 50th anniversary of jazz in 1945.
  Mr. President, NOJCC planners are hoping to make this a global 
celebration. Many believe a Mexican brass band that played at the New 
Orleans Cotton Exposition of 1885 was an early influence on jazz and 
Mexico will play a role in the celebration. No doubt, many other cities 
in America and throughout the world also lay claims to contributing to 
the evolution of jazz. All are welcome to join in the commemoration, 
which will only be limited by the imagination of people around the 
world.
  Since Jazz owes its formation to a variety of styles and cultures, 
and epitomizes the American experiment, the passage of this bill would 
mark an important step in recognizing the importance of Jazz and impact 
it has had all around the world. I hope many of my colleagues will join 
me in this effort. I ask unanimous consent that the text of this 
resolution be printed in the Record.

  There being no objection, the joint resolution was ordered to be 
printed in the Record, as follows:

                             S.J. Res. 182

       Whereas jazz is the most widely recognized indigenous art 
     form in the United States and was designated as a rare and 
     valuable national treasure by the Congress in 1987;
       Whereas New Orleans, Louisiana is widely recognized as the 
     birthplace of jazz and continues as a center for the 
     employment, performance, preservation, development, and 
     progression of jazz;
       Whereas the Louisiana Music Commission, an organization 
     funded by the State of Louisiana to promote the awareness and 
     development of the State's abundant music resources, has 
     convened a prominent group of music historians, players, and 
     supporters to create the New Orleans Jazz Centennial 
     Celebration;
       Whereas the Louisiana Music Commission has chosen 1995 as 
     the centennial of jazz, based on a general benchmark relating 
     to the formation of the Buddy Bolden band; and
       Whereas the chairman of the Louisiana Music Commission 
     announced to the International Association of Jazz Educators 
     that a year-long commemoration of the centennial of jazz will 
     take place throughout 1995: Now, therefore, be it
       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled, That the year 
     1995 is hereby designated as ``Jazz Centennial Year''. The 
     President is authorized and requested to issue a proclamation 
     calling upon the people of the United States to observe this 
     year with appropriate ceremonies and activities that promote 
     a better understanding and awareness of--
       (1) jazz as a rare and valuable national treasure;
       (2) the appropriate means by which all Americans may learn 
     about our Nation's most widely recognized indigenous art 
     form; and
       (3) how this national treasure can be preserved and 
     promoted for the enjoyment of future generations.

 Mr. BREAUX. Mr. President, it is indeed an honor to join my 
colleague and friend, Senator J. Bennett Johnston, the senior Senator 
of my State, the great State of Louisiana, in introducing a resolution 
that would designate the year 1995 as ``Jazz Centennial Year.''
  There is uncertainty, Mr. President, about the exact year of the 
birth of jazz. I expect, though, that most music historians will agree 
with the New Harvard Dictionary of Music's finding that as this unique 
American music creation began to ``emerge in the 1890's through 1910, 
the great majority of its most original players resided in New Orleans, 
Louisiana.'' Mr. President, in the early decades of the 20th century 
these great black American musicians include among others, Buddy 
Bolden, Papa Jack Laine, Freddie Keppard, King Oliver, and Louis 
Armstrong.
  Accordingly, Mr. President, the Louisiana Music Commission, under the 
chairmanship of Ellis Marsalis, states, and I quote:

       In 1995, Louisiana will be staging a yearlong celebration 
     of 100 years of jazz called the New Orleans Centennial 
     Celebration (NOJCC). In choosing 1995, the NOJCC is relying 
     on a general benchmark relating to the formation of the Buddy 
     Bolden band, and the city's celebration of the 50th 
     anniversary of jazz in 1945.
       Owing its formation to a variety of styles and cultures, 
     Jazz epitomizes the American experiment, and like America, 
     continues to influence the world. However, it was the special 
     blend of cultures in the Deep South--particularly in 
     Louisiana--that gave rise to this music as a clearly defined 
     style. Thus Louisiana lays claim to being the most musical 
     place on Earth--Jazz, Blues, Gospel, Rhythm & Blues, Country, 
     Rock & Roll, Cajun, Zydeco, and many other styles of music 
     all continue to grow in the fertile souls of Louisiana.

  Mr. President, clearly it is fitting and proper that Louisiana lead 
this Nation and the world in this celebration of Jazz, America's rich 
and extraordinary musical gift to the world. It is equally fitting that 
the celebration of Jazz begin with a joint resolution of the Congress 
of the American people, which will proclaim and honor the founding of 
this national and world treasure by designating the year 1995 as ``Jazz 
Centennial Year.'' I urge my colleagues to join Senator Johnston and 
myself in passing this obviously worthy resolution.

                          ____________________