[Congressional Record (Bound Edition), Volume 160 (2014), Part 13]
[House]
[Pages 17777-17780]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     SOLEDAD CANYON SETTLEMENT ACT

  Mr. HASTINGS of Washington. Mr. Speaker, I move to suspend the rules 
and pass the bill (H.R. 5742) to provide to the Secretary of the 
Interior a mechanism to cancel contracts for the sale of materials CA-
20139 and CA-22901, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5742

       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 ``Soledad Canyon Settlement 
     Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) City of santa clarita.--The term ``City of Santa 
     Clarita'' means the City of Santa Clarita, California.
       (2) City of victorville.--The term ``City of Victorville'' 
     means the City of Victorville, California.
       (3) Contracts.--The term ``contracts'' means the Bureau of 
     Land Management mineral contracts numbered CA-20139 and CA-
     22901.
       (4) Contract holder.--The term ``contract holder'' means 
     the private party to the contracts, and any successors that 
     hold legal interests in the contracts.
       (5) County of san bernardino.--The term ``County of San 
     Bernardino'' means the County of San Bernardino, California.
       (6) Map.--The term ``Map'' means the map entitled 
     ``Victorville disposal area, California'' and dated March 
     2011.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (8) Victorville disposal area.--The term ``Victorville 
     disposal area'' means the 10,206.05 acres of land identified 
     for disposal in the West Mojave Land Management Plan (2006) 
     of the Bureau of Land Management and depicted on the Map.

     SEC. 3. APPRAISAL; COMPENSATION TO CONTRACT HOLDER.

       (a) Appraisals.--
       (1) Contract appraisal.--
       (A) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall determine by 
     mineral appraisal, using the discounted cash flow method of 
     appraisal (in accordance with the appraisal guidelines for 
     appraisals of large quantities of mineral materials contained 
     in section IV(E) of BLM Mineral Material Appraisal Handbook 
     H-3630)--
       (i) the fair market value of the contracts; and
       (ii) the amount of royalties the Federal Government would 
     receive under the contracts over the 10-year period beginning 
     on the date of enactment of this Act.
       (B) Considerations.--In making the determination under 
     subparagraph (A), the Secretary shall assume that--
       (i) the contract holder has obtained all the permits and 
     entitlements necessary to mine, produce, and sell sand and 
     gravel under the contract; and
       (ii) mining operations under the contract have commenced at 
     the time of the determination, with maximum annual production 
     volumes that--

       (I) are based on the projected supply and demand outlook at 
     the time of determination; and
       (II) reflect depletion of the reserves that are subject to 
     the contract within the effective periods of the contract.

       (C) Donation.--The Secretary shall provide to the contract 
     holder and the City of Santa Clarita a list of approved 
     appraisers from which the parties shall select and provide 
     the funding to cover the costs of the appraisal under 
     subparagraph (A).
       (2) Land appraisal.--
       (A) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall determine by 
     appraisal standards under existing laws and regulations, the 
     fair market value of the Victorville disposal area on a net 
     present value basis.
       (B) Donation.--The Secretary shall provide to the contract 
     holder and the City of Santa Clarita a list of approved 
     appraisers from which the parties shall select and provide 
     the funding to cover the costs of the appraisal under 
     subparagraph (A).
       (b) Compensation.--
       (1) In general.--Subject to paragraph (2), not later than 
     30 days after completion of the appraisals under subsection 
     (a), the Secretary shall offer the contract holder 
     compensation for the cancellation of the contracts.
       (2) Conditions on offer.--An offer made by the Secretary 
     under paragraph (1) shall be subject to the following 
     conditions:
       (A) The cancellation of the contracts and the provision of 
     compensation shall be contingent on the availability of funds 
     from the sale of the Victorville disposal area under section 
     4, and any additional compensation provided under 
     subparagraph (D), as determined necessary by the Secretary.
       (B) The amount of compensation offered by the Secretary 
     under this subsection shall be equal to or less than the fair 
     market value of

[[Page 17778]]

     the contracts, as determined under subsection (a)(1)(A)(i).
       (C) The amount of compensation offered by the Secretary 
     under this subsection shall be equal to or less than the 
     projected revenues generated by the sale of the Victorville 
     disposal area under section 4, less the projected lost 
     royalties to the Federal Government over the 10-year period 
     beginning on the date of enactment of this Act, as determined 
     under subsection (a)(1)(A)(ii).
       (D) If the amount of projected revenues described in 
     subparagraph (C) is less than the fair market value 
     determined under subsection (a)(1)(A)(i), the Secretary 
     shall, not later than 60 days after the date on which the 
     Director of the Bureau of Land Management determines the 
     projected revenues under subparagraph (C), negotiate an 
     agreement with the contract holder and the City of Santa 
     Clarita to provide to the Secretary amounts equal to the 
     difference, in the form of--
       (i) compensation to be received by the contract holder; and
       (ii) compensation in a form acceptable to the Secretary to 
     be provided by the City of Santa Clarita.
       (3) Acceptance of offer.--
       (A) In general.--The contract holder shall have 60 days 
     from the later of the date on which the Secretary makes the 
     offer under paragraph (1) or an agreement is negotiated under 
     paragraph (2)(D) to accept the offer or agreement.
       (B) Failure to accept offer.--If the contract holder does 
     not accept the offer under paragraph (1) or if an agreement 
     is not negotiated under paragraph (2)(D) within the time 
     period described in subparagraph (A), the contracts shall 
     remain in effect and no further actions shall taken be taken 
     pursuant to this Act.

     SEC. 4. SALE OF LAND NEAR VICTORVILLE, CALIFORNIA.

       (a) In General.--Notwithstanding sections 202 and 203 of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1712, 1713) and subject to subsections (b) through (f), not 
     later than 2 years after the date of enactment of this Act, 
     the Secretary shall place on the market and offer for sale by 
     competitive bidding and in a manner designed to obtain the 
     highest price possible, all right, title, and interest of the 
     United States in and to the Victorville disposal area.
       (b) Availability of Map.--The Secretary shall keep the Map 
     on file and available for public inspection in--
       (1) the office of the Director of the Bureau of Land 
     Management; and
       (2) the district office of the Bureau of Land Management 
     located in Barstow, California.
       (c) Right of Local Land Use Authority To Purchase Certain 
     Land.--
       (1) In general.--Before a sale of land under subsection 
     (a), the Secretary shall provide to the applicable local land 
     use authority an exclusive preemptive right, as determined 
     under State law, to purchase any right, title, or interest of 
     the United States in and to any portion of the parcels of 
     land identified as ``Area A'' and ``Area B'' on the Map that 
     is located within the jurisdiction of the local land use 
     authority.
       (2) Timing.--A preemptive right under paragraph (1) shall 
     be in effect for a period of 30 days before the land is sold 
     under subsection (a).
       (3) Authority.--During the period described in paragraph 
     (2), the local land use authority may purchase some or all of 
     the right, title, and interest of the United States, as 
     provided in subsection (a), in and to the land to be offered 
     for sale at fair market value, as determined by an appraisal 
     conducted by the Secretary.
       (4) Exercising right.--If the local land use authority 
     exercises the preemptive right under paragraph (1), the 
     Secretary shall convey the land to the local land use 
     authority immediately on payment by the local land use 
     authority of the entire purchase price of the applicable 
     parcel of land.
       (5) Failure to pay.--Failure by the local land use 
     authority to purchase and pay for the right, title, and 
     interest of the United States in and to the land described in 
     paragraph (1) within the time period described in paragraph 
     (2) and to comply with any other terms and conditions as the 
     Secretary may require shall terminate the preemptive right of 
     the local land use authority with respect to the right, 
     title, and interest offered for sale.
       (d) Withdrawal and Reservation.--
       (1) Withdrawal.--Subject to valid existing rights, the land 
     described in subsection (a) is withdrawn from--
       (A) entry, appropriation, or disposal under the public land 
     laws;
       (B) location, entry, and patent under the mining laws; and
       (C) operation of the mineral leasing, mineral materials, 
     and geothermal leasing laws.
       (2) Reservation.--In any sale or other disposal of land 
     under this section, there shall be reserved by the United 
     States the right of the United States to prospect for, mine, 
     and remove minerals from the conveyed land.
       (e) Consultation.--In addition to any consultation 
     otherwise required by law, before initiating efforts to 
     dispose of land under this section, the Secretary shall 
     consult with the City of Victorville, the County of San 
     Bernardino, and surface owners in the jurisdiction in which 
     the land is located regarding the potential impact of the 
     disposal and other appropriate aspects of the disposal.
       (f) Account.--The gross proceeds of a sale of land under 
     subsection (a) shall be deposited in an account acceptable to 
     the Secretary and available only for the purposes of carrying 
     out this Act.

     SEC. 5. CANCELLATION OF CONTRACTS.

       (a) In General.--On completion of the compensation to the 
     contract holder for the value of each contract in accordance 
     with subsection (b), the Secretary shall cancel the contracts 
     and withdraw those areas that were subject to the contracts 
     from further mineral entry under all mineral leasing and 
     sales authorities available to the Secretary.
       (b) Compensation; Cancellation; Retention of Funds.--
       (1) In general.--Subject to paragraph (3), the Secretary 
     shall provide to the contract holder the compensation agreed 
     to under section 3(b) by disbursement of amounts from the 
     account, in 4 equal payments, as funds are available;
       (2) Cancellation.--
       (A) Contract ca-20139.--On completion of the first 2 
     payments to the contract holder under paragraph (1), the 
     Secretary shall cancel contract CA-20139.
       (B) Contract ca-22901.--On completion of the remaining 2 
     payments to the contract holder under paragraph (1), the 
     Secretary shall cancel contract CA-22901.
       (3) Retention of funds.--The Secretary shall retain 
     sufficient funds to cover the projected lost royalties 
     determined under section 3(a)(1)(A)(ii).
       (c) Release and Waiver.--Upon acceptance and receipt of 
     compensation under subsection (b), the contract holder shall 
     waive all claims against the United States arising out of, or 
     relating to, the cancellation of the contracts.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Washington (Mr. Hastings) and the gentleman from California (Mr. 
Sherman) each will control 20 minutes.
  The Chair recognizes the gentleman from Washington.


                             General Leave

  Mr. HASTINGS of Washington. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days to revise and extend their 
remarks and include extraneous materials on the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Washington?
  There was no objection.
  Mr. HASTINGS of Washington. I yield myself as much time as I may 
consume.
  Mr. Speaker, we are here today to address the Soledad Canyon 
Settlement Act, H.R. 5742, as introduced by our colleague from 
California (Mr. McKeon). This bipartisan bill will solve a longstanding 
controversy surrounding a pair of sand and gravel leases located near 
the community of Santa Clarita, California.
  In 1990, the Bureau of Land Management, or BLM, issued two leases for 
sand and gravel mines to CEMEX. At the time, this area was much more 
remote than it is today. As CEMEX was preparing a plan of operation, it 
became clear to all parties involved that local community development 
had made the project incompatible with the local community. Local 
community leaders, the region's congressional delegation, and the 
company have all worked for more than a decade to find a legislative 
solution to make the company and Federal Government whole while 
returning the lease to the Federal Government.
  As a result, we are here today to move forward with a plan to cancel 
these leases while at the same time making both the contract holder and 
the Federal Government whole. This legislation has the strong support 
of State and local communities, the contract holder, and the regional 
congressional delegation.
  Now while this bill has just recently been introduced, it is the 
product of years of hard work and careful communication and review by 
the committee. The gentleman from California (Mr. McKeon) has been a 
tireless advocate on behalf of his local communities. He has 
demonstrated patience and diligence in pursuing a workable solution 
that the Congress can successfully act upon. I am confident that the 
community of Santa Clarita already knows just how fortunate they have 
been to have had Mr. McKeon as their Congressman for 11 terms.
  Now, it is also my understanding, Mr. Speaker, that the gentlewoman 
from

[[Page 17779]]

California, Senator Boxer, shares Mr. McKeon's commitment to this 
legislation, and I hope that she will be able to follow his lead before 
the end of this Congress by shepherding this bill through the Senate. 
This bill deserves the support of both the House and the Senate.
  With that, I reserve the balance of my time.
  Mr. SHERMAN. Mr. Speaker, I rise in support of the bill and would 
like to hear from the gentleman from California (Mr. McKeon), so I will 
reserve the balance of my time.
  Mr. HASTINGS of Washington. Mr. Speaker, I am very pleased to yield 
such time as he may consume to the gentleman from California (Mr. 
McKeon), the author of this legislation, the chairman of the Armed 
Services Committee.
  Mr. McKEON. I thank Chairman Hastings for yielding.
  Mr. Speaker, it is a great privilege to speak on my bill, H.R. 5742, 
the Soledad Canyon Settlement Act. I appreciate the opportunity to 
appear before the House, and I want to thank Speaker Boehner, Majority 
Leader McCarthy, and Chairman Hastings for their steadfast support of 
this legislation. Without their support, we wouldn't be standing here 
today on the floor with this bill.
  I would also like to thank the gentlewoman from California, Senator 
Boxer, for her efforts in finding an agreeable solution for the 
inclusion of language that brought the score of the bill to zero. And I 
second the remarks of Chairman Hastings and hope that she will be able 
to bring this to a conclusion in the final days that the Senate is in 
session. One of the things that Senator Boxer added to this bill was 
introducing legislation that brought the cost of this bill to zero. 
Crossing that hurdle has moved us to this point now in solving this 
intractable issue.
  Finally, I would like to thank the gentleman from California, 
Congressman Sherman, for his support of my legislation. I continue to 
believe in bipartisanship as the way to address critical issues for our 
constituents, and we have shown time and again that we can find common 
ground if we try.
  Mr. Speaker, the Soledad Canyon mine, operated by CEMEX, is located 
just outside the city of Santa Clarita, California, in the 25th 
Congressional District that I have had the opportunity to represent now 
for the last 22 years. Under two current contracts held by CEMEX, they 
are authorized to extract approximately 56 million tons of sand and 
gravel over a 20-year period, with two 10-year contracts.
  Residents of my congressional district and city leaders have been 
expressing their concerns for the past 24 years about a large mine 
operating in close proximity to where they live. And, as the chairman 
mentioned, this has become much closer over the years. They fear the 
effects of pollution, increased truck traffic, and environmental health 
issues on their families and the community. Throughout my 22 years in 
Congress, I have worked endlessly to find a solution. I have engaged 
with civic leaders, residents of my district, environmental leaders, 
the county of Los Angeles, CEMEX, BLM, the Department of the Interior, 
Chairman Hastings, and the leadership of our conference.
  Mr. Speaker, allow me to give just a bit of background on the 
situation that has arisen in my district. In 1990, two privately held 
valid Federal contracts were awarded to Transit Mixed Concrete. 
Southdown, the parent company of Transit Mixed Concrete, was acquired 
by CEMEX in 2000, resulting in CEMEX holding the Federal contracts.
  The Bureau of Land Management approved a mining plan of operations 
and prepared a draft environmental impact statement with respect to the 
Soledad Canyon mine, which was released on May 6, 1999. The 
environmental impact statement was subsequently modified to address the 
growing concerns among Santa Clarita residents about the impact that 
mining operations in Soledad Canyon have on air quality and health, 
truck traffic, and declining property values in Santa Clarita. The 
final environmental impact statement was released to the public on June 
2, 2000, with a list of eight alternatives for mining the Soledad 
Canyon site.
  Under the California Environmental Quality Act, the county of Los 
Angeles completed the environmental impact report in 2001 and 
subsequently voted in 2002 to deny the permit, citing the right and 
responsibility of the county to impose reasonable environmental and 
resource protection and regulation on mining in Soledad Canyon.
  Numerous lawsuits were filed between 2002 and 2004 involving the city 
of Santa Clarita, the county of Los Angeles, the Center for Biological 
Diversity, and CEMEX. A consent degree resulted from the settlement of 
CEMEX, Inc. v. County of Los Angeles in 2004. The consent decree 
contains the mitigation agreement between CEMEX and the county of Los 
Angeles, which lists 40 conditions that CEMEX is required to meet in 
order to mitigate the environmental, health, traffic, endangered 
species, and safety concerns raised by the county, local residents, and 
the city of Santa Clarita.
  Mr. Speaker, as I mentioned before, I have worked throughout my 
entire congressional career to bring all parties together to work out a 
deal that is mutually beneficial. I have introduced eight bills on this 
issue over the years, each of which took a different approach to 
dealing with the mine as new issues arose.
  In the 106th Congress, I introduced H.R. 3060, which would have 
withdrawn specified lands from the operation of Federal mining and 
mineral leasing laws and would have nullified any existing permits 
issued on those lands. The same bill was introduced as H.R. 679 in the 
107th Congress. In the 108th Congress, I introduced H.R. 3529, the 
Soledad Canyon Mine Lease Cancellation Act. This legislation would have 
canceled the two mining permits for the Soledad Canyon mine and would 
have prohibited the Secretary of the Interior from issuing permits for 
mining above historical levels in Soledad Canyon.
  In the 109th Congress, I introduced H.R. 5471, the Soledad Canyon 
Mine Leases Adjustment Act. This legislation would have canceled the 
two mining permits for the Soledad Canyon mine, directed the Secretary 
of the Interior to provide additional financial and mineral production 
opportunities in exchange for the economic value invested to that date 
on the two permits, and would have prohibited the Secretary of the 
Interior from issuing permits for mining above historical levels in 
Soledad Canyon.
  In the 110th Congress, I introduced H.R. 5887, the Soledad Canyon 
Mine Act. This legislation would have authorized the Secretary of the 
Interior to cancel the two mining contracts, prohibited future mining 
in Soledad Canyon, provided a means for CEMEX to recover just 
compensation for the cancelation of the contracts, provided the Bureau 
of Land Management with the necessary tools to verify the expenses 
incurred by CEMEX, provided relief to CEMEX for such expenses, and 
provided for a dispute resolution process.

                              {time}  0930

  In the 111th Congress, I introduced H.R. 4332, the Soledad Canyon 
High Desert, California Public Lands Conservation and Management Act of 
2009. This legislation had a similar set of actions as H.R. 5887, but 
added two notable ones: it provided a mechanism to offer for sale, by 
competitive bidding, lands identified for disposition near Victorville, 
California; and to acquire environmentally-sensitive land and collect 
the proceeds of the sale of lands near Victorville, California.
  Finally, in the 112th Congress, I introduced H.R. 6469, the Soledad 
Canyon Mine Mitigation and Relocation Act of 2012. This legislation 
would have begun a study of the legal and administrative steps--
including obtaining sufficient funding--necessary to carry out the 
goals of the Soledad Canyon High Desert, California Public Lands 
Conservation and Management Act of 2009, H.R. 4332.
  I mention each of these in order to illustrate how the tug and pull 
of all parties influenced the legislative process. Each party gave 
ideas to further perfect legislation that would finally

[[Page 17780]]

solve this vexing issue that affects the residents of my district.
  I believe because of all our joint efforts, we have reached a 
critical mass on this issue. It is time for a solution once and for 
all. I am looking forward to the full House acting on H.R. 5742 today, 
a solution that would take the mine out of commission and lift this two 
decades' long burden off the backs of my constituents.
  This is a solution borne from the great compromise between the city 
of Santa Clarita and CEMEX, who each offered to put up the difference 
in cost to bring the cost of the bill to zero. This zero score is 
critical to the bill's success and couldn't have been achieved without 
the partnership that has developed over the many years of action on 
this matter.
  The bill achieves all the aims of my previous legislation, 
particularly H.R. 4332, with the solution to the vexing issue of how to 
ensure there is no cost to the Federal Government.
  Mr. Speaker, I urge my colleagues to support this legislation. I 
thank the gentleman again for allowing me the time to explain this 
critical issue in my district and thanks again to our House leadership 
and Chairman Hastings for bringing this legislation to the floor.
  Mr. SHERMAN. Mr. Speaker, I yield myself as much time as I may 
consume.
  Mr. Speaker, I rise in support of the Soledad Canyon Settlement Act. 
This act is a testament to bipartisanship, fiscal responsibility, 
environmental stewardship, local consensus building, and tireless 
tenacity for the public good.
  Bipartisanship: Here in this House, the bill is introduced, carried, 
and written by our colleague, Buck McKeon. In the Senate, the same 
language has been introduced by Senator Barbara Boxer and is supported 
by Senator Feinstein. You can't get any more bipartisan than that.
  Fiscal responsibility: CBO says this bill costs the government zero 
dollars and zero cents. You can't get a lower cost estimate on a bill 
than that.
  Environmental stewardship: this bill is supported by the Sierra Club, 
and this land will become the gateway to the new San Gabriel Mountains 
National Monument.
  Local consensus building: this bill has the support of local leaders 
and legislators, Governor Jerry Brown, CEMEX, the local lease owner, 
and virtually everyone involved in public life in Santa Clarita, which 
is Los Angeles County's third largest city.
  Tireless tenacity: Mr. Speaker, tireless tenacity for the public good 
is exemplified by our friend, Buck McKeon, 22 years in Congress and I 
believe 22 years focused on this problem, and now, on what may very 
well be his last legislative day, we have a chance to solve this 
problem in a way that I think exemplifies what we should be trying to 
do here in Congress.
  In addition to Buck's tireless tenacity, I want to commend the city 
leaders of Santa Clarita, many-time Mayor Laurene Weste, who I believe 
is now a city council member and has been mayor of that city so often; 
Bob Keller, now the mayor pro tem; Ken Striplin, the city manager; and 
hundreds and thousands of people in Santa Clarita and the immediate 
area.
  Mr. Speaker, this is a bill that is needed because it will stop the 
mining of 56 million tons of sand and gravel, which is now incompatible 
with a city that has grown to more than double its size when the 
project was originally planned, and now constitutes an area of well 
more than a quarter million people.
  This sand and gravel mining operation is incompatible with the new 
population of the area, and it is also incompatible with the roads and 
traffic which is busy not only at rush hour, but throughout the day.
  I want to commend the gentleman from Santa Clarita for his decades of 
work for his district, and all the people of California.
  Mr. Speaker, I urge an ``aye'' vote on the Soledad Canyon Settlement 
Act, and I yield back the balance of my time.
  Mr. HASTINGS of Washington. Mr. Speaker, I yield myself the balance 
of the time.
  Mr. Speaker, as Mr. McKeon pointed out, this has been a long process 
for a vexing problem in Santa Clarita, and Mr. Sherman pointed out very 
well that Mr. McKeon is to be commended for this, and this would be 
kind of the capstone on the career that he has.
  All that is left if this House adopts this measure is very simply for 
the other body to take it up, and with the interests that Senator Boxer 
has shown on this issue, I hope that she can move this legislation 
through the Senate.
  With that, Mr. Speaker, I urge adoption, and I yield back the balance 
of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Washington (Mr. Hastings) that the House suspend the 
rules and pass the bill, H.R. 5742.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________