[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.

                                
