[House Report 104-305]
[From the U.S. Government Publishing Office]
104th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 104-305
_______________________________________________________________________
EXCHANGE OF CERTAIN LANDS IN GILPIN COUNTY, COLORADO
_______________________________________________________________________
November 6, 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
[To accompany H.R. 2437]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 2437) to provide for the exchange of certain lands in
Gilpin County, Colorado, having considered the same, reports
favorably thereon with an amendment and recommends 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. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds and declares that--
(1) certain scattered parcels of Federal land located within
Gilpin County, Colorado, are currently administered by the
Secretary of the Interior as part of the Royal Gorge Resource
Area, Canon City District, United States Bureau of Land
Management;
(2) these land parcels, which comprise approximately 133
separate tracts of land, and range in size from approximately
38 acres to much less than an acre have been identified as
suitable for disposal by the Bureau of Land Management through
its resource management planning process and are appropriate
for disposal; and
(3) even though the Federal land parcels in Gilpin County,
Colorado, are scattered and small in size, they nevertheless by
virtue of their proximity to existing communities appear to
have a fair market value which may be used by the Federal
Government to exchange for lands which will better lend
themselves to Federal management and have higher values for
future public access, use and enjoyment, recreation, the
protection and enhancement of fish and wildlife and fish and
wildlife habitat, and the protection of riparian lands,
wetlands, scenic beauty and other public values.
(b) Purpose.--It is the purpose of this Act to authorize, direct,
facilitate and expedite the land exchange set forth herein in order to
further the public interest by disposing of Federal lands with limited
public utility and acquire in exchange therefor lands with important
values for permanent public management and protection.
SEC. 2. LAND EXCHANGE.
(a) In General.--The exchange directed by this Act shall be
consummated if within 90 days after enactment of this Act, Lake Gulch,
Inc., a Colorado Corporation (as defined in section 4 of this Act)
offers to transfer to the United States pursuant to the provisions of
this Act the offered lands or interests in land described herein.
(b) Conveyance by Lake Gulch.--Subject to the provisions of section 3
of this Act, Lake Gulch shall convey to the Secretary of the Interior
all right, title, and interest in and to the following offered lands--
(1) certain lands comprising approximately 40 acres with
improvements thereon located in Larimer County, Colorado, and
lying within the boundaries of Rocky Mountain National Park as
generally depicted on a map entitled ``Circle C Church Camp'',
dated August 1994, which shall upon their acquisition by the
United States and without further action by the Secretary of
the Interior be incorporated into Rocky Mountain National Park
and thereafter be administered in accordance with the laws,
rules and regulations generally applicable to the National Park
System and Rocky Mountain National Park;
(2) certain lands located within and adjacent to the United
States Bureau of Land Management San Luis Resource Area in
Conejos County, Colorado, which comprise approximately 3,993
acres and are generally depicted on a map entitled ``Quinlan
Ranches Tract'', dated August 1994; and
(3) certain lands located within the United States Bureau of
Land Management Royal Gorge Resource Area in Huerfano County,
Colorado, which comprise approximately 4,700 acres and are
generally depicted on a map entitled ``Bonham Ranch-Cucharas
Canyon'', dated June 1995: Provided, however, That it is the
intention of Congress that such lands may remain available for
the grazing of livestock as determined appropriate by the
Secretary in accordance with applicable laws, rules, and
regulations: Provided further, That if the Secretary determines
that certain of the lands acquired adjacent to Cucharas Canyon
hereunder are not needed for public purposes they may be sold
in accordance with the provisions of section 203 of the Federal
Land Policy and Management Act of 1976 and other applicable
law.
(c) Substitution of Lands.--If one or more of the precise offered
land parcels identified above is unable to be conveyed to the United
States due to appraisal or other problems, Lake Gulch and the Secretary
may mutually agree to substitute therefor alternative offered lands
acceptable to the Secretary.
(d) Conveyance by the United States.--(1) Upon receipt of title to
the lands identified in subsection (a) the Secretary shall
simultaneously convey to Lake Gulch all right, title, and interest of
the United States, subject to valid existing rights, in and to the
following selected lands--
(A) certain surveyed lands located in Gilpin County,
Colorado, Township 3 South, Range 72 West, Sixth Principal
Meridian, Section 18, Lots 118-220, which comprise
approximately 195 acres and are intended to include all
federally owned lands in section 18, as generally depicted on a
map entitled ``Lake Gulch Selected Lands'', dated July 1994;
(B) certain surveyed lands located in Gilpin County,
Colorado, Township 3 South, Range 72 West, Sixth Principal
Meridian, Section 17, Lots 37, 38, 39, 40, 52, 53, and 54,
which comprise approximately 96 acres, as generally depicted on
a map entitled ``Lake Gulch Selected Lands'', dated July 1994;
and
(C) certain unsurveyed lands located in Gilpin County,
Colorado, Township 3 South, Range 73 West, Sixth Principal
Meridian, Section 13, which comprise approximately 11 acres,
and are generally depicted as parcels 302-304, 306 and 308-326
on a map entitled ``Lake Gulch Selected Lands'', dated July
1994: Provided, however, That a parcel or parcels of land in
section 13 shall not be transferred to Lake Gulch if at the
time of the proposed transfer the parcel or parcels are under
formal application for transfer to a qualified unit of local
government. Due to the small and unsurveyed nature of such
parcels proposed for transfer to Lake Gulch in section 13, and
the high cost of surveying such small parcels, the Secretary is
authorized to transfer such section 13 lands to Lake Gulch
without survey based on such legal or other description as the
Secretary determines appropriate to carry out the basic intent
of the map cited in this subparagraph.
(2) If the Secretary and Lake Gulch mutually agree, and the Secretary
determines it is in the public interest, the Secretary may utilize the
authority and direction of this Act to transfer to Lake Gulch lands in
sections 17 and 13 that are in addition to those precise selected lands
shown on the map cited herein, and which are not under formal
application for transfer to a qualified unit of local government, upon
transfer to the Secretary of additional offered lands acceptable to the
Secretary or upon payment to the Secretary by Lake Gulch of cash
equalization money amounting to the full appraised fair market value of
any such additional lands. If any such additional lands are located in
section 13 they may be transferred to Lake Gulch without survey based
on such legal or other description as the Secretary determines
appropriate as long as the Secretary determines that the boundaries of
any adjacent lands not owned by Lake Gulch can be properly identified
so as to avoid possible future boundary conflicts or disputes. If the
Secretary determines surveys are necessary to convey any such
additional lands to Lake Gulch, the costs of such surveys shall be paid
by Lake Gulch but shall not be eligible for any adjustment in the value
of such additional lands pursuant to section 206(f)(2) of the Federal
Land Policy and Management Act of 1976 (as amended by the Federal Land
Exchange Facilitation Act of 1988) (43 U.S.C. 1716(f)(2)).
(3) Prior to transferring out of public ownership pursuant to this
Act or other authority of law any lands which are contiguous to North
Clear Creek southeast of the City of Black Hawk, Colorado in the County
of Gilpin, Colorado, the Secretary shall notify and consult with the
County and City and afford such units of local government an
opportunity to acquire or reserve pursuant to the Federal Land Policy
and Management Act of 1976 or other applicable law, such easements or
rights-of-way parallel to North Clear Creek as may be necessary to
serve public utility line or recreation path needs: Provided, however,
That any survey or other costs associated with the acquisition or
reservation of such easements or rights-of-way shall be paid for by the
unit or units of local government concerned.
SEC. 3. TERMS AND CONDITIONS OF EXCHANGE.
(a) Equalization of Values.--(1) The values of the lands to be
exchanged pursuant to this Act shall be equal as determined by the
Secretary of the Interior utilizing comparable sales of surface and
subsurface property and nationally recognized appraisal standards,
including, to the extent appropriate, the Uniform Standards for Federal
Land Acquisition, the Uniform Standards of Professional Appraisal
Practice, the provisions of section 206(d) of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1716(d)), and other applicable
law.
(2) In the event any cash equalization or land sale moneys are
received by the United States pursuant to this Act, any such moneys
shall be retained by the Secretary of the Interior and may be utilized
by the Secretary until fully expended to purchase from willing sellers
land or water rights, or a combination thereof, to augment wildlife
habitat and protect and restore wetlands in the Bureau of Land
Management's Blanca Wetlands, Alamosa County, Colorado.
(3) Any water rights acquired by the United States pursuant to this
section shall be obtained by the Secretary of the Interior in
accordance with all applicable provisions of Colorado law, including
the requirement to change the time, place, and type of use of said
water rights through the appropriate State legal proceedings and to
comply with any terms, conditions, or other provisions contained in an
applicable decree of the Colorado Water Court. The use of any water
rights acquired pursuant to this section shall be limited to water that
can be used or exchanged for water that can be used on the Blanca
Wetlands. Any requirement or proposal to utilize facilities of the San
Luis Valley Project, Closed Basin Diversion, in order to effectuate the
use of any such water rights shall be subject to prior approval of the
Rio Grande Water Conservation District.
(b) Restrictions on Selected Lands.--(1) Conveyance of the selected
lands to Lake Gulch pursuant to this Act shall be contingent upon Lake
Gulch executing an agreement with the United States prior to such
conveyance, the terms of which are acceptable to the Secretary of the
Interior, and which--
(A) grant the United States a covenant that none of the
selected lands (which currently lie outside the legally
approved gaming area) shall ever be used for purposes of gaming
should the current legal gaming area ever be expanded by the
State of Colorado; and
(B) permanently hold the United States harmless for liability
and indemnify the United States against all costs arising from
any activities, operations (including the storing, handling,
and dumping of hazardous materials or substances) or other acts
conducted by Lake Gulch or its employees, agents, successors or
assigns on the selected lands after their transfer to Lake
Gulch: Provided, however, That nothing in this Act shall be
construed as either diminishing or increasing any
responsibility or liability of the United States based on the
condition of the selected lands prior to or on the date of
their transfer to Lake Gulch.
(2) Conveyance of the selected lands to Lake Gulch pursuant to this
Act shall be subject to the existing easement for Gilpin County Road 6.
(3) The above terms and restrictions of this subsection shall not be
considered in determining, or result in any diminution in, the fair
market value of the selected land for purposes of the appraisals of the
selected land required pursuant to section 3 of this Act.
(c) Revocation of Withdrawal.--The Public Water Reserve established
by Executive order dated April 17, 1926 (Public Water Reserve 107),
Serial Number Colorado 17321, is hereby revoked insofar as it affects
the NW\1/4\ SW\1/4\ of Section 17, Township 3 South, Range 72 West,
Sixth Principal Meridian, which covers a portion of the selected lands
identified in this Act.
SEC. 4. MISCELLANEOUS PROVISIONS.
(a) Definitions.--As used in this Act:
(1) The term ``Secretary'' means the Secretary of the
Interior.
(2) The term ``Lake Gulch'' means Lake Gulch, Inc., a
Colorado corporation, or its successors, heirs or assigns.
(3) The term ``offered land'' means lands to be conveyed to
the United States pursuant to this Act.
(4) The term ``selected land'' means lands to be transferred
to Lake Gulch, Inc., or its successors, heirs or assigns
pursuant to this Act.
(5) The term ``Blanca Wetlands'' means an area of land
comprising approximately 9,290 acres, as generally depicted on
a map entitled ``Blanca Wetlands'', dated August 1994, or such
land as the Secretary may add thereto by purchase from willing
sellers after the date of enactment of this Act utilizing funds
provided by this Act or such other moneys as Congress may
appropriate.
(b) Time Requirement for Completing Transfer.--It is the intent of
Congress that unless the Secretary and Lake Gulch mutually agree
otherwise the exchange of lands authorized and directed by this Act
shall be completed not later than 6 months after the date of enactment
of this Act. In the event the exchange cannot be consummated within
such 6-month-time period, the Secretary, upon application by Lake
Gulch, is directed to sell to Lake Gulch at appraised fair market value
any or all of the parcels (comprising a total of approximately 11
acres) identified in section 2(d)(1)(C) of this Act as long as the
parcel or parcels applied for are not under formal application for
transfer to a qualified unit of local government.
(c) Administration of Lands Acquired by United States.--In accordance
with the provisions of section 206(c) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1716(c)), all lands acquired by the
United States pursuant to this Act shall upon acceptance of title by
the United States and without further action by the Secretary concerned
become part of and be managed as part of the administrative unit or
area within which they are located.
purpose of the bill
The purpose of H.R. 2437 is to provide for the exchange of
certain lands in Gilpin County, Colorado.
background and need for legislation
H.R. 2437 would authorize an equal-value exchange under
which the United States would transfer approximately 300 acres
of Bureau of Land Management (BLM) managed public lands near
the city of Black Hawk, in Gilpin County, Colorado, to a named
company, which would transfer to the United States specified
lands, amounting to approximately 8,739 acres, elsewhere in
Colorado.
The Gilpin County lands are 133 parcels, ranging from 38
acres to 0.01 acre; 90 are less than one acre. They were
originally acquired by the United States from France in the
Louisiana Purchase. From extensive gold discoveries, the area
is crisscrossed with patented mining claims; the 133 parcels
are intermingled fragments that are essentially unmanageable,
and have been identified as suitable for disposal by BLM.
However, the United States cannot readily realize their fair-
market value through normal BLM disposal procedures because of
the high costs of surveys and other necessary administrative
expenses. H.R. 2437 is intended to enable the United States to
realize the fair market value by the acquisition of designated
lands.
The lands identified for acquisition by the United States
include about 40 acres within the Rocky Mountain National Park,
nearly 4,000 acres in Conejos County, and about 4,700 acres
(known as Bonham Ranch) intermingled with BLM-managed lands
along Cucharas Canyon in Huerfano County, Colorado.
committee action
Congressman Scott McInnis introduced H.R. 2423 on September
29, 1995. The bill was referred to the Committee on Resources,
and within the Committee, to the Subcommittee on National
Parks, Forests and Lands. On July 20, 1995, the Subcommittee
held a hearing on various lands exchange bills, including H.R.
1922, whose text is identical to H.R. 2437.
Consideration and mark-up of H.R. 2437 was held in the
Subcommittee on October 17, 1995. During Subcommittee
consideration, Congressman James V. Hansen offered an amendment
to H.R. 2437 that was accepted by unanimous consent. The
amendment was requested by BLM to insure that appraisal of the
selected lands shall be based on comparable sales of surface
and subsurface lands. H.R. 2437, as amended, was ordered
favorably reported to the Full Committee by voice vote.
Full Committee consideration and mark-up was held on
October 25, 1995. The bill, as amended, was ordered reported to
the House of Representatives by unanimous consent.
section-by-section analysis
Section 1. Findings and purposes
This section contains the findings and purposes of the
bill.
Sec. 2. Land exchange
The exchange directed in H.R. 2437 shall be consummated
within 90 days after enactment. Lake Gulch shall convey to the
Secretary of the Interior all right, title, and interest in all
lands described in H.R. 2437. If one or more of the lands
offered is unable to be conveyed to the United States due to
appraisal or other problems, Lake Gulch and the Secretary may
mutually agree to substitute alternative lands. Upon receipt of
title to the lands identified in H.R. 2437, the Secretary shall
simultaneously convey to Lake Gulch all right, title and
interest of the United States to the selected lands described
in the bill.
Sec. 3. Terms and conditions of exchange
The values of the lands to be exchanged pursuant to this
bill shall be equal. The mineral values of the selected lands
should not be separately appraised. Mineral values on such
small tracts of land would be nearly impossible to appraise
separately from the land itself, and comparable sales of
surface and subsurface lands are therefore the appropriate
barometer of fair market value. Further, there are many
comparable sales of land in the Central City/Black Hawk area on
which to base an appraisal. Any cash received by the United
States under this bill may be used by the Secretary of the
Interior to purchase from willing sellers land or water rights
to benefit Blanca Wetlands, Alamosa County, Colorado. Any water
rights must be acquired under Colorado State law.
Conveyance of the selected lands to Lake Gulch shall be
contingent upon Lake Gulch executing an agreement with the
United States which: (1) grants the United States a covenant
that none of the selected lands shall ever be used for
gambling; and (2) holds the United States harmless for
liability and indemnifies the United States for costs arising
from any activities, operations or acts conducted by Lake Gulch
or its employees on lands transferred to the company. In
addition, the conveyance is subject to an existing road
easement.
Under subsection (c), the Public Water Reserve established
by Executive order dated April 17, 1926, Serial Number Colorado
17321, is revoked as it affects selected lands covered by the
bill.
Sec. 4. Miscellaneous provisions
Subsection (a) defines terms used in the bill.
Subsection (b) expresses the intent of Congress that the
land exchange be completed no later than six months after the
date of enactment of this bill. If the exchange cannot be
completed by that time, the Secretary is directed to sell a
portion of the lands identified in the bill, to Lake Gulch for
fair market value.
Under subsection (c), the acquired lands shall be managed
as part of the administrative unit or area which they are
located after acceptance of title by the United States.
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 Subcommittee on National Parks, Forests and Lands held a
hearing on July 20, 1995, on H.R. 1922 (an identical bill to
H.R. 2437), and 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. 2437 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. 2437. 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 requirements 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.
2437 does not contain any new budget authority, spending
authority, credit authority, or a 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. 2437.
3. With respect to the requirement of clause 2(l)(3)(C) of
rule XI of the Rules of the House of Representatives and
section 403 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
2437 from the Director of the Congressional Budget Office.
congressional budget office cost estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 2, 1995.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
reviewed H.R. 2437, a bill to provide for the exchange of
certain lands in Gilpin County, Colorado, as ordered reported
by the House Committee on Resources on October 25, 1995. CBO
estimates that enacting H.R. 2437 would not significantly
affect the federal budget. Since the bill could affect
offsetting receipts, pay-as-you-go procedures would apply.
However, we estimate that any increase in offsetting receipts
would be less than $500,000 annually. Enacting H.R. 2437 also
would have no significant effect on the budgets of state and
local governments.
H.R. 2437 would authorize the Department of the Interior's
Bureau of Land Management (BLM) to transfer approximately 300
acres of land in Gilpin County in exchange for about 8,730
acres in Larimer County, Conejos County, and Huerfano County,
Colorado. The exchanges are to be of equal value. According to
BLM, the parcels of federal land to be transferred are
intermingled with private property and have no significant
value for grazing, mineral development, or recreation. In
exchange, BLM would receive parcels located within the Rocky
Mountain National Park, within and adjacent to BLM's San Luis
Resource Area, and within BLM's Royal Gorge Resource Area. The
agency expects no significant increase in offsetting receipts
as a result of acquiring this land.
Based on information from BLM, we estimate no significant
increase in discretionary costs to manage the additional
acreage after the transfer because the currently held land has
incurred significant costs from occupancy trespasses on the
parcels. Thus, the agency expects lower per acre management
costs on the land to be acquired with no significant effect
overall on discretionary spending. The bill could affect
payments in lieu of taxes, which are discretionary costs based
in part on the number of federally owned acres in a county, but
we expect no significant impact on such payments as a result of
enacting this bill.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Victoria V.
Heid.
Sincerely,
James L. Blum
(For June E. O'Neill, Director).
changes in existing law
If enacted, H.R. 2437 would make no changes in existing
law.
departmental reports
The Committee has received no departmental reports on H.R.
2437.