[Congressional Record Volume 151, Number 71 (Wednesday, May 25, 2005)]
[Senate]
[Pages S5931-S5932]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KYL (for himself and Mr. McCain):
  S. 1122. A bill to authorize and direct the exchange and conveyance 
of certain National Forest land and other land in southeast Arizona; to 
the Committee on Energy and Natural Resources.
  Mr. KYL. Mr. President, today I am pleased to join with Senator 
McCain to introduce the Southeast Arizona Land Exchange and 
Conservation Act of 2005. This bill, which facilitates an important 
land exchange in Arizona, is the product of months of discussion 
between the United States Forest Service, Bureau of Land Management, 
State and local officials, community groups, recreational and 
conservation groups, and other stakeholders. It will allow for the 
protection of some of the most environmentally sensitive lands in 
Arizona while providing a much needed economic engine for the people of 
Superior, AZ and the surrounding communities. An identical companion 
bill is being introduced today in the House of Representatives by 
Representative Renzi.
  The exchange conveys approximately 3,025 acres of land controlled by 
the Forest Service to Resolution Copper Company. The acreage to be 
traded to Resolution Copper will facilitate future exploration, and 
possible development, of what may be one of the largest deposits of 
copper ore ever discovered in North America. The 3,025 acres are 
intermingled with, or lie next to, private lands already owned by 
Resolution Copper, and are located south and

[[Page S5932]]

east of Resolution's existing underground Magma copper mine. 
Approximately 75 percent of the 3,025 acre Federal parcel is already 
blanketed by federally authorized mining claims owned by Resolution 
Copper that give Resolution the right to explore and develop mineral 
deposits on it. Given the intermingled ownership, the public safety 
issues that may be associated with mining activities, and the 
significant financial investment Resolution Copper must make to even 
determine whether development of a mine is feasible, it makes sense, 
for Resolution Copper to own the entire mining area.
  However, we also recognize that there is public resource value 
associated with the Federal land that would come into private ownership 
and, to the extent we can, we should protect and or replace these 
resources. The Apache Leap Escarpment, a spectacular cliff area 
comprising approximately 562 acres on the western side of the federal 
parcel, is an area deserving of protection. To protect the surface of 
this area from mining and development, the bill requires that a 
permanent conservation easement be placed on this area. In addition, 
the bill sets up a process to determine whether additional or enhanced 
public access should be provided to Apache Leap and, if so, provides 
that Resolution Copper will pay up to $250,000 to provide such access.
  The bill also requires replacement sites for the Oak Flat Campground 
and the climbing area that are located on the Federal parcel that will 
be traded to Resolution Copper. The process to locate replacement sites 
is already under way, and I am told it is going well. Access to these 
public areas will not immediately terminate on enactment of this 
legislation: The bill allows continued public use of the Oak Flat 
Campground for two years after the enactment and it allows for 
continued rock climbing use for two years after, and use of the land 
for the annual ``Boulder Blast'' rock climbing competition for five 
years after enactment. Replacement sites will be designed and developed 
largely with funding provided by Resolution Copper.
  I am also working with Resolution Copper and community groups to 
determine whether there may be additional climbing areas within the 
Federal parcel that could continue to be accessible to the public 
without compromising public safety or the mining operation. I have 
included a placeholder in the bill for such additional climbing 
provisions if agreed to.
  In return for conveying the Federal land parcel to Resolution Copper, 
the Forest Service and Bureau of Land Management will receive six 
parcels of private land, totaling 4,814 acres. These parcels have been 
identified, and are strongly endorsed for public acquisition, by the 
Forest Service, BLM, Arizona Audubon Society, Nature Conservancy, 
Sonoran Institute, Arizona Game and Fish Department, and numerous 
others.
  The largest of the six parcels is the Seven B Ranch located near 
Mammoth. It runs for 6.8 miles along both sides of the lower San Pedro 
River--one of the few remaining undammed rivers in the southwestern 
United States. The parcel also has: one of the largest, and possibly 
oldest, mesquite bosques in Arizona; a high volume spring that flows 
year round; and potential recovery habitat for several endangered 
species, including the southwestern willow flycatcher. It lies on an 
internationally recognized migratory bird flyway, with roughly half the 
number of known breeding bird species in North America passing through 
the corridor. Public acquisition of this parcel will greatly enhance 
efforts by Federal and State agencies to preserve for future 
generations the San Pedro River and its wildlife and bird habitat.
  A second major parcel is the Appleton Ranch, consisting of 10 private 
inholdings intermingled with the Appleton-Whittell Research Ranch, 
adjacent to the Las Cienegas National Conservation Area southeast of 
Tucson. This acquisition will facilitate and protect the study of 
southwestern grassland ecology and unique aquatic wildlife and habitat.
  Finally, the Forest Service will acquire four inholdings in the Tonto 
National Forest that possess valuable riparian and wetland habitat, 
water resources, historic and cultural resources, and habitat for 
numerous plant, wildlife and bird species, including the endangered 
Arizona hedgehog cactus.
  Although the focus of this bill is the land exchange between 
Resolution Copper and the United States, it also includes provisions 
allowing for the conveyance of Federal lands to the Town of Superior, 
if it so requests. These lands include the town cemetery, lands around 
the town airport, and a Federal reversionary interest that exists at 
its airport site. These lands are included in the proposed exchange to 
assist the town in providing for its municipal needs and expanding its 
economic development.
  Though I have described the many benefits of this exchange, you may 
be asking why we are legislating this land exchange. Why not use the 
existing administrative land exchange process? The answer is that this 
exchange can only be accomplished legislatively because the Forest 
Service does not have the authority to convey away federal lands in 
order to acquire other lands outside the boundaries of the National 
Forest System, no matter how ecologically valuable.
  Of primary importance to me is that the exchange have procedural 
safeguards and conditions that ensure it is an equal value exchange 
that is in the public interest.
  I will highlight some of the safeguards in this legislation: First, 
it requires that all appraisals of the lands must follow standard 
Federal practice and be performed in accordance with appraisal 
standards promulgated by the U.S. Department of Justice. All appraisals 
must also be formally reviewed, and approved, by the Secretary of 
Agriculture. Second, to ensure the Federal Government gets full value 
for the Federal parcel it is giving up, the Federal parcel will be 
appraised to include the minerals and appraised as if unencumbered by 
the private mining claims that detract from the fair market value of 
the land. These are important provisions not required by Federal law. 
They are especially significant given that over 75 percent of the 
Federal parcel is covered by mining claims owned by Resolution Copper 
and the bulk of the value of the Federal parcel is expected to be the 
minerals. Third, it requires that the Apache Leap conservation easement 
not be considered in determining the fair market value of the Federal 
land parcel. I believe by following standard appraisal practices and 
including these additional safeguards in the valuation process, the 
United States, and ultimately the taxpayer, will receive full fair 
market value for both the land and the minerals it contains.
  In summary, with this land exchange we can preserve lands that 
advance the important public objectives of protecting wildlife habitat, 
cultural resources, the watershed, and aesthetic values, while 
generating economic and employment opportunities for State and local 
residents. I hope we approve the legislation at the earliest possible 
date. It is a winning scenario for our environment, our economy, and 
our posterity.
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