[Congressional Record Volume 143, Number 160 (Thursday, November 13, 1997)]
[Senate]
[Pages S12607-S12608]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS:
  S. 1562. A bill to authorize an exchange of land between the 
Secretary of Agriculture and Secretary of the Interior and Big Sky 
Lumber Co; to the Committee on Energy and Natural Resources.


        THE GALLATIN RANGE CONSOLIDATION COMPLETION ACT OF 1997

  Mr. BAUCUS. Mr. President, I rise today to introduce an important 
piece of legislation for Montana. This bill is titled ``the Gallatin 
Range Consolidation Completion Act of 1997.''
  Mr. President, this legislation is similar to a bill introduced 
earlier today by my colleague from Montana. While I am glad he has at 
last staked out a public position in favor of this exchange, I believe 
his approach is too little, too early. So I am introducing a bill which 
more accurately reflects where discussions on this exchange have 
progressed since Senator Burns' earlier involvement.
  Completing the Gallatin Land Exchange is a top priority for me. The 
land considered in this legislation is key wildlife habitat and is 
among some of the most beautiful anywhere. When completed, this 
exchange will result in improved habitat and will improve recreation 
opportunities in the region. But, as with many land exchanges this will 
not be a simple process.
  The company involved, Big Sky Lumber has been pursuing this matter 
for nearly 4 years. The Forest Service has collected public comment and 
has worked to see that concerns of all parties affected, the recreation 
interests, conservation groups, homeowners, and the business owners are 
all addressed. I have been working with these groups drafting 
legislation with the help of the Forest Service.
  I was surprised that Senator Burns introduced a draft bill today 
without notice. Contrary to an agreement among the State's 
congressional delegation that no bill be introduced until we reached 
agreement among ourselves and with other interested groups. The bill I 
am introducing today is an updated version of the earlier draft I gave 
to Senator Burns for his review. I look forward to working with Senator 
Burns and all interested parties to get this process back on track so 
that we can pass a fair and balanced bill soon after we convene the 
next session of Congress.
  Over the next 2 months, my staff and I will be meeting with people 
about this exchange. My goal is to prepare a consensus bill that can be 
introduced by the entire Montana delegation when Congress convenes come 
January. Soon after the introduction of that consensus bill, I will 
hold public hearings in the state to hear what people think about our 
efforts. I am hopeful that in the future the entire Montana delegation 
will work together to protect the Taylor Fork and other important 
Montana lands in the Gallatin.
  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. 1562

       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 ``Gallatin Land Consolidation 
     Act of 1998''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the land north of Yellowstone National Park possesses 
     outstanding natural characteristics and wildlife habitats 
     that would make the land a highly valuable addition to the 
     National Forest System;
       (2) it is in the interest of the United States for the 
     Secretary of Agriculture to enter into an Option Agreement 
     for the acquisition of land owned by Big Sky Lumber Co.; and
       (3) it is in the interest of the United States to--
       (A) establish a logical and effective ownership pattern for 
     the Gallatin National Forest, substantially reducing long-
     term costs for taxpayers; and
       (B) consolidate the Gallatin National Forest in a manner 
     that will enable the public to have access to and enjoy the 
     many recreational uses of the land.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) BSL.--The term ``BSL'' means Big Sky Lumber Co., an 
     Oregon joint venture, and its successors and assigns, and any 
     other entities having a property interest in the BSL land.
       (2) BSL land.--The term ``BSL land'' means the up to 
     approximately 55,000 acres of land owned by BSL that is to be 
     acquired by the Secretary of Agriculture, as depicted in 
     Exhibit A to the Option Agreement.
       (3) Exchange agreement.--The term ``Exchange Agreement'' 
     means the agreement entered into between BSL and the 
     Secretary of Agriculture under section 4(e).
       (4) Option agreement.--The term ``Option Agreement'' means 
     the agreement dated ____ and entitled ``Option Agreement for 
     the Acquisition of Big Sky Lumber Co. Lands Pursuant to the 
     Gallatin Range Consolidation and Protection Act of 1993'' and 
     the exhibits and maps attached to the agreement.

     SEC. 4. GALLATIN LAND CONSOLIDATION COMPLETION.

       (a) In General.--If BSL offers fee title to the BSL land, 
     including mineral interests, that is acceptable to the United 
     States--
       (1) the Secretary of Agriculture shall accept a warranty 
     deed to the BSL land;
       (2) the Secretary of Agriculture shall convey to BSL, 
     subject to valid existing rights and to such other terms, 
     conditions, reservations, and exceptions as may be agreed on 
     by the Secretary of Agriculture and BSL, fee title to up to 
     approximately 25,000 acres of National Forest System land and 
     appurtenances thereto as depicted in Exhibit B to the Option 
     Agreement;
       (3) the Secretary of Agriculture shall grant to BSL timber 
     harvest rights to up to approximately 50,000,000 board feet 
     of timber in accordance with subsection (c) and as described 
     in Exhibit C to the Option Agreement;

[[Page S12608]]

       (4) subject to availability of funds, the Secretary of 
     Agriculture shall purchase land belonging to BSL in the 
     Taylor Fork area, as depicted in Exhibit D, at a purchase 
     price of not more than $6,500,000; and
       (5) the Secretary of the Interior shall convey to BSL, by 
     patent or otherwise, subject to valid existing rights and to 
     such other terms, conditions, reservations, and exceptions as 
     may be agreed to by the Secretary of the Interior and BSL, 
     fee title to approximately 1,860 acres of Bureau of Land 
     Management land, as depicted in Exhibit B to the Option 
     Agreement.
       (b) Valuation.--The property and other assets exchanged by 
     BSL and the United States under subsection (a) shall be 
     approximately equal in value, as determined by the Secretary 
     of Agriculture.
       (c) Timber Harvest Rights.--
       (1) In general.--The Secretary of Agriculture shall 
     prepare, grant to BSL, and administer the timber harvest 
     rights identified in Exhibit C to the Option Agreement, over 
     a period of 5 consecutive years after the date of enactment 
     of this Act.
       (2) Entire timber sale program of the gallatin national 
     forest.--Timber harvest volume shall constitute the timber 
     sale program for the Gallatin National Forest for that 5-year 
     period.
       (3) Substitution.--If exceptional circumstances, such as 
     natural catastrophe, changes in law or policy, or 
     extraordinary environmental or financial circumstances 
     prevent the Secretary of Agriculture from conveying the 
     timber harvest rights identified in Exhibit C to the Option 
     Agreement, the Secretary of Agriculture shall replace the 
     value of the diminished harvest rights by--
       (A) substituting equivalent timber harvest rights volume 
     from the same market area;
       (B) conveying national forest lands containing merchantable 
     timber within the Gallatin National Forest; or
       (C) making a payment from funds made available to the 
     Secretary of Agriculture out of the Land and Water 
     Conservation Fund.
       (4) Procedures.--
       (A) In general.--The following procedures shall apply to 
     all national forest timber harvest rights identified for 
     exchange under subsection (a):
       (i) Identification of timber.--The Secretary of Agriculture 
     shall designate Federal timber, as depicted in Exhibit C to 
     the Option Agreement, for exchange to BSL.
       (ii) Harvest schedule.--The Secretary of Agriculture and 
     BSL shall mutually develop and agree upon schedules for all 
     national forest timber to be conveyed to BSL in the exchange.
       (iii) Open market.--All timber harvest rights granted to 
     BSL in the exchange shall be offered for sale by BSL through 
     the competitive bid process.
       (iv) Small business.--All timber harvest rights granted to 
     BSL in the exchange shall be subject to compliance by BSL 
     with Forest Service small business program procedures in 
     effect as of the date of enactment of this Act, including 
     contractual provisions for payment schedules, harvest 
     schedules, and bonds.
       (v) Compliance with option and exchange agreements.--All 
     timber harvest rights granted to BSL in the exchange and all 
     timber harvested under the exchange shall comply with the 
     terms of the Option Agreement and the Exchange Agreement.
       (B) Binding effect.--The procedures under subparagraph (A) 
     shall be binding on BSL and its assigns, contractors, and 
     successors in interest.
       (d) Exchange Agreement.--
       (1) In general.--The Secretary of Agriculture shall offer 
     to enter into an Exchange Agreement with BSL that--
       (A) describes the non-Federal and Federal land and 
     interests in lands to be exchanged;
       (B) identifies the terms, conditions, reservations, 
     exceptions, and rights-of-way conveyances; and
       (C) describes the terms for the harvest rights of timber 
     granted under subsection (a)(3).
       (2) Consistency.--The Exchange Agreement shall be 
     consistent with this Act and the Option Agreement.
       (3) Submission to congress.--
       (A) In general.--On completion of the Exchange Agreement, 
     the Secretary of Agriculture shall submit the Exchange 
     Agreement to the Committee on Energy and Natural Resources of 
     the Senate, the Committee on Resources of the House of 
     Representatives, and each member of the Montana congressional 
     delegation; and
       (B) Delayed effectiveness.--The Exchange Agreement shall 
     not take effect until 30 days after the date on which the 
     Exchange Agreement is submitted in accordance with 
     subparagraph (A).
       (e) Rights-of-Way.--As part of the exchange under 
     subsection (a)--
       (1) the Secretary of Agriculture, under the authority of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1701 et seq.), shall convey to BSL such easements in or other 
     rights-of-way over National Forest System land as may be 
     agreed to by the Secretary of Agriculture and BSL in the 
     Exchange Agreement; and
       (2) BSL shall convey to the United States such easements in 
     or rights-of-way over land owned by BSL as may be agreed to 
     by the Secretary of Agriculture and BSL in the Exchange 
     Agreement.
       (f) Quality of Title.--
       (1) Determination.--The Secretary of Agriculture shall 
     review the title for the BSL land described in subsection (a) 
     and, within 60 days after receipt of all applicable title 
     documents from BSL, determine whether--
       (A) the applicable title standards for Federal land 
     acquisition have been satisfied or the quality of the title 
     is otherwise acceptable to the Secretary of Agriculture;
       (B) all draft conveyances and closing documents have been 
     received and approved;
       (C) a current title commitment verifying compliance with 
     applicable title standards has been issued to the Secretary 
     of Agriculture; and
       (D) except as provided in section 8(b) (i)-(iii) of the 
     Gallatin Range Consolidation and Protection Act of 1993 (107 
     Stat. 992), the title includes both the surface and 
     subsurface estates without reservation or exception (except 
     by the United States or the State of Montana, by patent) 
     including--
       (i) minerals, mineral rights, and mineral interests;
       (ii) timber, timber rights, and timber interests;
       (iii) water, water rights, and ditch conveyances; and
       (iv) any other interest in the property.
       (2) Conveyance of title.--If the quality of title does not 
     meet Federal standards or is otherwise determined to be 
     unacceptable to the Secretary of Agriculture, the Secretary 
     of Agriculture shall advise BSL regarding corrective actions 
     necessary to make an affirmative determination under 
     subparagraph (1).
       (g) Timing of Implementation.--
       (1) Exchange agreement.--The Exchange Agreement shall be 
     completed and executed not later than 60 days after the date 
     of enactment of this Act.
       (2) Land-for-land exchange.--The Secretary of Agriculture 
     shall accept the conveyance of land described in subsection 
     (a) not later than 60 days after the Secretary of Agriculture 
     has entered into the Exchange Agreement and made an 
     affirmative determination of quality of title.
       (3) Land-for-timber exchange.--The Secretary of Agriculture 
     shall make the timber harvest rights described in subsection 
     (a)(3) available over 5 consecutive years following the date 
     of enactment of this Act. Specific procedures for execution 
     of the harvest rights shall be specified in the Exchange 
     Agreement.
       (4) Purchase.--The Secretary of Agriculture shall complete 
     the purchase of BSL land under subsection (a)(4) not later 
     than 60 days after the date on which appropriated funds are 
     made available and an affirmative determination of quality of 
     title is made with respect to the BSL land.

     SEC. 5. GENERAL PROVISIONS.

       (a) Minor Corrections.--
       (1) In general.--The Option Agreement and the Exchange 
     Agreement shall be subject to such minor corrections as may 
     be agreed to by the Secretary of Agriculture and BSL.
       (2) Notification.--The Secretary of Agriculture shall 
     notify the Committee on Energy and Natural Resources of the 
     Senate, the Committee on Resources of the House of 
     Representatives, and each member of the Montana congressional 
     delegation of any changes made pursuant to this subsection.
       (b) Public Availability.--The Option Agreement and Exchange 
     Agreement shall be filed with the county clerks for Gallatin 
     County, Park County, Madison County, and Granite County, 
     Montana, and shall be on file and available for public 
     inspection in the appropriate offices of the Forest Service.
       (c) Status of Land.--All land conveyed to the United States 
     under this Act shall be added to and administered as part of 
     the Gallatin National Forest and Deerlodge National Forest, 
     as appropriate, in accordance with the Act of March 1, 1911 
     (commonly known as the ``Weeks Act'') (36 Stat. 961, chapter 
     186), and other laws (including regulations) pertaining to 
     the National Forest System.
       (d) Implementation.--The Secretary of Agriculture shall 
     ensure that sufficient funds are made available to the 
     Gallatin National Forest to carry out this Act.
                                 ______