[House Report 104-155]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-155
_______________________________________________________________________


 
                    BLM REAUTHORIZATION ACT OF 1995

                                _______


 June 22, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 1077]

      [Including cost estimate of the Congressional Budget Office]
    The Committee on Resources, to whom was referred the bill 
(H.R. 1077) to authorize the Bureau of Land Management, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:
SECTION 1. SHORT TITLE AND STATUTORY REFERENCE.

    (a) Short Title.--This Act may be cited as the ``BLM 
Reauthorization Act of 1995''.
    (b) Statutory Reference.--As used in this Act, the term ``Act'' 
means the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
1701 et seq.).

SEC. 2. AUTHORIZATION AND FUTURE REAUTHORIZATIONS.

    (a) Authorization.--Section 318(a) of the Act (43 U.S.C. 1748(a)) 
is amended by striking out ``October 1, 1978'' and by inserting in lieu 
thereof ``October 1, 2001''.
    (b) Future Reauthorizations.--Section 318(b) of the Act is amended 
by striking ``May 15, 1977, and not later than May 15 of each second 
even-numbered year thereafter'' and by inserting in lieu thereof 
``January 1, 1999, and January 1 of each third odd-numbered year 
thereafter''.
                          Purpose of the Bill

    The purpose of H.R. 1077 is to authorize the Bureau of Land 
Management in the Department of the Interior.

                  Background and Need for Legislation

    The Federal Land Management Policy Act of 1976 (FLPMA) 
required that the Bureau of Land Management BLM) be 
reauthorized by Congress every four years beginning in 1978. 
Pursuant to FLPMA, one quadrennial reauthorization was enacted 
in 1978 and expired in 1982. The BLM is the only 
Congressionally-chartered agency in the Department of the 
Interior that is not permanently authorized. Annual 
appropriations have continued since 1982 only because the House 
of Representatives has adopted rules waiving points of order 
against consideration of appropriations for the unauthorized 
BLM programs.
    In 1989, then-Interior Appropriations Subcommittee Chairman 
Sidney Yates asked Congressman Bruce Vento to attempt to 
reauthorize BLM. Although this effort began initially as a 
``clean'' four-year authorization, it attracted controversial 
proposals from the national preservation movement. Although 
authorization bills passed the House in 1989 and 1991, they 
quickly died in the Senate because of opposition by Republican 
Senators on the Energy and Natural Resources Committee.
    On May 25, 1993, the Subcommittee on National Parks, 
Forests and Public Lands held a hearing on H.R. 1603, a lengthy 
bill that contained very controversial provisions regarding 
buffer zones, RS 2477 right-of-way, biological diversity, and 
national conservation areas. At the hearing, then-Director Baca 
requested that BLM be reauthorized for one year to enable the 
new Clinton Administration to provide more meaningful 
legislative input toward a longer reauthorization bill in the 
future.
    As a result of the hearing, Congressman Vento introduced 
H.R. 2530 on June 24, 1993. The bill amended FLPMA to provide 
for a ``clean'' reauthorization until October 1, 1994. H.R. 
2530 passed the House on September 13, 1993, under Suspension 
of Rules, but was never considered in the Senate.
    The Committee is greatly concerned that funds authorized by 
H.R. 1077 could be used to administer a soda ash leasing 
program with potential deficiencies. The Committee's concern 
relates, in particular, to a proposed soda ash royalty rate 
increase that is now under consideration by BLM and the 
Department of the Interior. The Committee strongly believes 
that the Department has provided no analytical support 
whatsoever for any increase. While the Department has noted 
that a disparity exists between royalty rates currently charged 
on public and private lands in Wyoming, the Committee believes 
that the rate for private lands is the product of monopoly 
power and accordingly cannot be viewed as representing fair 
market value under FLPMA. The Committee also believes that the 
Department has not adequately analyzed the adverse trade 
consequences that would be associated with a rate increase or 
adequately compared these consequences to the impact of an 
increase on the public fisc, which the Committee believes would 
amount to an inconsequentially small increase in revenues or an 
actual revenue loss. Therefore, the Committee directs the 
Department not to proceed with a rate increase until it has 
conducted a study, in consultation with the Department of 
Commerce, the Office of U.S. Trade Representative, and the 
Office of Management and Budget, to determine whether any 
proposed increase would accord with the FLPMA's concept of fair 
market value and whether any benefits to the government 
associated with the increase would justify the corresponding 
costs of the increase. The study should then be submitted to 
the Committee for its review prior to the implementation of any 
increase.

                            Committee Action

    H.R. 1077 was introduced on February 28, 1995, by National 
Parks, Forests and Lands Subcommittee Chairman James V. Hansen. 
The bill was referred to the Committee on Resources, and within 
the Committee to the Subcommittee on National Parks, Forests 
and Lands. On March 9, 1995, the Subcommittee held a hearing on 
H.R. 1077, where Acting Director Dombeck of the BLM testified 
in support. On March 29, 1995, the Subcommittee met to mark up 
H.R. 1077. Congressman Wes Cooley offered an amendment to 
change the bill from a permanent authorization to a six-year 
reauthorization. Congressman Bill Richardson offered an 
amendment to the Cooley amendment to reduce the period of 
reauthorization to four years; this amendment failed by voice 
vote. Congressman Bruce Vento then offered an amendment to the 
Cooley amendment to authorize the Secretary of the Department 
of the Interior to transmit to Congress a report on the 
suitability and feasibility of transferring any portion of the 
public lands administered by the BLM to the States in which the 
lands are located. The Vento amendment failed on a rollcall 
vote of 8 to 12, as follows:
                             recorded votes

    Date: March 29, 1995.
    Bill Number(s): H.R. 1077.
    Amendment Number: 3.
    Yeas: 8; Nays: 12.

----------------------------------------------------------------------------------------------------------------
   Members (Republican)       Yea       Nay     Present      Members (Democrats)       Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Hansen, Chairman.....  ........        X   .........  Mr. Richardson..........        X   ........  ........
Mr. Duncan...............  ........        X   .........  Mr. Rahall..............        X   ........  ........
Mr. Hefley...............  ........        X   .........  Mr. Vento...............        X   ........  ........
Mr. Doolittle............  ........  ........  .........  Mr. Kildee..............        X   ........  ........
Mr. Allard...............  ........        X   .........  Mr. Williams............  ........  ........  ........
Mr. Pombo................  ........        X   .........  Mr. Faleomavaega........        X   ........  ........
Mr. Torkildsen...........  ........        X   .........  Mr. Studds..............        X   ........  ........
Mr. Hayworth.............  ........        X   .........  Mr. Romero-Barcelo......        X   ........  ........
Mr. Cubin................  ........        X   .........  Mr. Deal................  ........  ........  ........
Mr. Cooley...............  ........        X   .........  Mr. Hinchey.............        X   ........  ........
Mrs. Chenoweth...........  ........        X   .........  Mr. Underwood...........        X   ........  ........
Mrs. Smith...............  ........        X                                                                    
Mr. Radanovich...........  ........  ........                                                                   
Mr. Shadegg..............  ........        X                                                                    
----------------------------------------------------------------------------------------------------------------

The Cooley amendment was then adopted by voice vote. The bill, 
as amended, was then ordered favorably reported to the Full 
Committee in the presence of a quorum.
    On May 17, 1995, the Full Resources Committee met to 
consider H.R. 1077. Congressman Bill Richardson offered an 
amendment to provide for a six year reauthorization with 
provisions to begin the future reauthorization process; the 
amendment was adopted by voice vote. Ranking Minority Member 
George Miller offered an amendment to authorize the Secretary 
of the Interior to transmit to Congress a report on the 
suitability and feasibility of transferring any portion of the 
public lands administered by BLM to the States in which the 
lands are located; this amendment failed on voice vote. An 
amendment to require the Secretary of the Interior to consider 
the views of the Department of Commerce and the United States 
Trade Representative regarding export market factors when 
determining ``fair market value'' for royalty rate purposes on 
Federal mineral leases was offered by Congresswoman Cubin and 
withdrawn. The bill as amended was then ordered favorably 
reported to the House of Representatives, in the presence of a 
quorum.

            Committee Oversight Findings and Recommendations

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that the 
enactment of H.R. 1077 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        Cost of the Legislation

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 1077. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     Compliance With House Rule XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
1077 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 1077.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 24, 1995.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1077, the BLM 
Reauthorization Act of 1995.
    Enactment of H.R. 1077 would not affect direct spending or 
receipts. Therefore, pay-as-you-go procedures would not apply 
to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.
               congressional budget office cost estimate

    1. Bill number: H.R. 1077.
    2. Bill title: The BLM Reauthorization Act of 1995.
    3. Bill status: As ordered reported by the House Committee 
on Resources on May 17, 1995.
    4. Bill purpose: H.R. 1077 would authorize the 
appropriation of such sums as may be necessary to carry out the 
activities of the Bureau of Land Management (BLM) for six 
fiscal years--1996 through 2001. The bill also would revise the 
timetable for submission of BLM's budget information to the 
Congress.
    5. Estimated cost to the Federal Government: The following 
table shows estimated authorization levels for all BLM accounts 
authorized by the Federal Land Policy and Management Act of 
1976 (FLPMA). Because the bill does not provide specific 
authorization levels for these accounts, the table shows two 
alternative sets of authorization levels for fiscal years 1996-
2000--the 1995 appropriations without any adjustment for 
inflation and the 1995 appropriations with adjustment for 
inflation. Outlay estimates are based on historical spending 
rates for the affected BLM programs and assume that 
appropriations will be provided before the start of each fiscal 
year.

------------------------------------------------------------------------
                      1995     1996     1997     1998     1999     2000 
------------------------------------------------------------------------
Projected spending                                                      
 under current                                                          
 law:                                                                   
    Budget                                                              
     authority \1\      636        0        0        0        0        0
    Estimated                                                           
     outlays......      653      100        8        0        0        0
                                                                        
Without Adjustment                                                      
   for Inflation                                                        
                                                                        
Proposed changes:                                                       
    Estimated                                                           
     authorization        0      636      636      636      636      636
    Estimated                                                           
     outlays......        0      534      628      636      636      636
Projected spending                                                      
 under H.R. 1077:                                                       
    Estimated                                                           
     authorization      636      636      636      636      636      636
    Estimated                                                           
     outlays......      653      635      636      636      636      636
                                                                        
  With Adjustment                                                       
   for Inflation                                                        
                                                                        
Proposed changes:                                                       
    Estimated                                                           
     authorization        0      663      689      715      742      772
    Estimated                                                           
     outlays......        0      557      676      711      738      767
Projected spending                                                      
 under H.R. 1077:                                                       
    Estimated                                                           
     authorization      636      663      689      715      742      772
    Estimated                                                           
     outlays......      653      658      684      711      738      767
------------------------------------------------------------------------
\1\ The 1995 spending level is the amount actually appropriated for     
  programs authorized by this bill.                                     

    The costs of this bill fall within budget function 300.
    6. Basis of estimate: Under current law, authorizations for 
BLM spending expired in 1982 for the accounts authorized by 
FLPMA. Congress has continued to provide funds to these 
accounts in annual appropriations bills, however. BLM accounts 
authorized by FLPMA are: Management of Lands and Resources; 
Construction and Access; Range Improvements; Service Charges, 
Deposits and Forfeitures; and Miscellaneous Trust Funds. 
Appropriations for these five accounts total $636 million in 
fiscal year 1995. Other BLM accounts not authorized by FLPMA--
and which would not, therefore, be affected by enactment H.R. 
1077-are excluded from this estimate.
    7. Pay-as-you-go considerations: None.
    8. Estimated cost to State and local governments: None.
    9. Estimate comparison: None.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Victoria V. Heid.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.
                          Departmental Reports

    The Committee has received no departmental reports on H.R. 
1077.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

   SECTION 318 OF THE FEDERAL LAND POLICY AND MANAGEMENT ACT OF 1976

                      APPROPRIATION AUTHORIZATION

    Sec. 318. (A) There are hereby authorized to be 
appropriated such sums as are necessary to carry out the 
purposes and provisions of this Act, but no amounts shall be 
appropriated to carry out after [October 1, 1978] October 1, 
2001, any program, function, or activity of the Bureau under 
this or any other Act unless such sums are specifically 
authorized to be appropriated as of the date of approval of 
this Act or are authorized to be appropriated in accordance 
with the provisions of subsection (b) of this section.
    (b) Consistent with section 607 of the Congressional Budget 
Act of 1974, beginning [May 15, 1977, and not later than May 15 
of each second even numbered year therafter] January 1, 1999, 
and January 1 of each third odd-numbered year thereafter, the 
Secretary shall submit to the Speaker of the House of 
Representatives and the President of the Senate a request for 
the authorization of appropriations for all programs, 
functions, and activities of the Bureau to be carried out 
during the four-fiscal-year period beginning on October 1 of 
the calendar year following the calendar year in which such 
request is submitted. The Secretary shall include in his 
request, in addition to the information contained in his budget 
request and justification statement to Office of Management and 
Budget, the funding levels which he determined can be 
efficiently and effectively utilized in the execution of his 
responsibilities for each such program, function, or activity, 
notwithstanding any budget guidelines or limitations imposed by 
any official or agency of the executive branch.
          * * * * * * *
                            DISSENTING VIEWS

    We strongly object to the views expressed by the Majority 
in the report accompanying this bill as they relate to the 
issue of federal royalty rates for trona, or soda ash.
    Rep. Barbara Cubin did offer an amendment on the subject of 
royalty rates for trona, however, she withdrew it upon advice 
from Counsel that it was not germane to H.R. 1077 and would be 
subject to a point of order.
    We are alarmed that the Majority would abuse the 
legislative process by inserting language in a report intended 
to implement an amendment that was not germane to the bill nor 
even discussed during Committee deliberation on the bill. This 
has not been the practice of this Committee in past years under 
Democratic leadership. Moreover, the inclusion of the trona 
royalty language violates the principles established in section 
407 of ``Jefferson's Manual'' which states that a committee 
``can only act when together, and not by separate consultation 
and consent--nothing being the report of the committee but what 
has been agreed to in committee actually assembled.'' This is a 
very disturbing precedent set by those who present themselves 
to the public as reformers of Congress.
    Secondly, the stated concerns expressed in the report 
language are contradicted by testimony taken during an 
oversight hearing held on May 9, 1995, by the Subcommittee on 
Energy and Minerals. Officials from the Department of the 
Interior testified at great length and expressed in no 
uncertain terms that they had been analyzing this issue with 
great care and caution since 1992. So we fail to understand 
where the Majority's assertion that there is ``no analytical 
support whatsoever for any lease'' to justify raising the 
federal royalty rate from five percent to eight percent.
    Indeed, the Assistant Secretary for Land and Minerals of 
the Department of the Interior testified that he was 
considering an increase in the federal royalty rate on trona to 
attain fair market value for the depletion of this public 
resource. Union Pacific Resources, a private entity, collects 
an 8% royalty on leases directly adjacent to federal lands. We 
do not agree with the Majority argument that the private rate 
is ``the product of monopoly power and accordingly cannot be 
viewed as representing fair market value under FLPMA.''
    Land ownership within the Green River Basin in Wyoming is 
divided primarily among by the Federal Government (55.7%), 
Union Pacific Resources (38.1%) and the State of Wyoming 
(6.2%). The railroad's land was granted in a checkerboard 
pattern, approximately \1/2\ mi squares, intermittent with 
federal land along the right-of-way. Consequently, all Wyoming 
trona operations are carried out on a mix of federal, state and 
private lands. And, because the majority of soda ash is made 
synthetically, which is more expensive to manufacture, 
Wyoming's natural soda ash is extremely competitive in world 
markets.
    The Wyoming soda ash industry is thriving and has 
experienced steady growth since 1982. U.S. exports have 
increased by 281 percent since the last royalty increase in 
1962--33 years ago. The trona industry is experiencing a 
growing international market demand accompanied by all time 
highs in production and greater foreign ownership of trona 
producing industries. Foreign investment in U.S. soda ash 
operations has risen from less than 10 percent in 1981 to 46 
percent in 1993.
    One of the top domestic producers recently announced that 
net corporate earnings were up in the first quarter of 1995, 
with industrial minerals, including trona, making a 
particularly hefty contribution to the healthy bottom line. 
And, four of the five largest and most profitable producers 
announced that they will be raising their prices by $15 dollars 
per ton effective July 1, 1995. These facts alone make the case 
for increasing the royalty rate for extraction of this valuable 
mineral from our public lands.
    Raising the federal royalty rate from 5 to 8 percent as 
proposed, amounting to only 90 cents per ton, would increase 
gross federal receipts to about $21 million from $13 million; 
which means that about $10 million would go to the federal 
treasury instead of $6 million. We question how the Majority 
can assert that this is ``an inconsequentially small increase 
in revenues''--especially when the State of Wyoming, which will 
receive one half of the total, is facing a serious budget 
shortfall. In these lean times, we should be applauding the 
Administration's proposal to collect more revenues from an 
extractive industry operating on public lands not attempting to 
thwart their efforts through corrupt and underhanded means.
    As a Nation, we cannot afford to give away the public's 
minerals. Regretfully, we urge the Department to ignore the 
language inserted into the report accompanying this bill and 
instead to impose fair fees on extracting our Nation's mineral 
wealth. The bottom line is fairness. In this context, fairness 
is letting the Department of Interior set the royalty rate 
without Congressional meddling.

                                   George Miller.
                                   Nick Rahall.
                                   Neil Abercrombie.
                                   Bill Richardson.