[Senate Report 104-196]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 297
104th Congress                                                   Report
                                 SENATE

 1st Session                                                    104-196
_______________________________________________________________________


 
          EXCHANGE OF CERTAIN LANDS IN GILPIN COUNTY, COLORADO

                                _______


               December 21, 1995.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2437]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 2437) to provide for the exchange of 
certain lands in Gilpin County, Colorado, having considered the 
same, reports favorably thereon without amendment and 
recommends that the Act do pass.

                         PURPOSE OF THE MEASURE

    The purpose of H.R. 2437 is to provide for the exchange of 
certain lands in Gilpin County, Colorado.

                          BACKGROUND AND NEED

    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 parcels 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 designed lands.
    The lands identified for acquisition by the United States 
included 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 Hefano County, Colorado.

                          legislative history

    H.R. 2437 was reported by the House Committee on Resources 
on November 6, 1995. The Senate Subcommittee on Forests and 
Public Land Management held a hearing on November 7, 1995, on 
S. 985, a companion measure to H.R. 2437 introduced by Senator 
Campbell and Senator Brown.
    At the business meeting on November 30, 1995, the Committee 
on Energy and Natural Resources ordered H.R. 2437 reported 
without amendment.

           COMMITTEE RECOMMENDATIONS AND TABULATION OF VOTES

    The Committee on Energy and Natural Resources, in open 
business session on November 30, 1995, by an unanimous voice 
vote of a quorum present, recommends that the Senate pass H.R. 
2437 without amendment.

                   COST AND BUDGETARY CONSIDERATIONS

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

                                     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).

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out H.R. 2437. The Act is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individual and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of H.R. 2437, as ordered reported.

                        executive communications

    On December 11, 1995, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
Agriculture and the Office of Management and Budget setting 
forth executive views on H.R. 2437. These reports had not been 
received at the time the report on H.R. 2437 was filed. When 
these reports become available, the Chairman will request that 
they be printed in the Congressional Record for the advice of 
the Senate. The following was received on S. 985, a companion 
bill to H.R. 2437:

                   U.S. Department of the Interior,
                                   Office of the Secretary,
                                  Washington, DC, November 6, 1995.
Hon. Larry Craig,
Chairman, Senate Subcommittee on Forests and Public Land Management, 
        Energy and Natural Resources Committee, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: We have reviewed S. 985 and offer the 
following comments.
    S. 985 provides for an exchange of land between the Bureau 
of Land Management and Lake Gulch, Inc., a Colorado 
Corporation. Under the bill, the Bureau of Land Management 
would convey over one hundred small parcels of public lands in 
Gilpin County, Colorado to Lake Gulch, Inc. In exchange for 
these public lands, Lake Gulch, Inc., would convey three 
parcels to the Federal Government; 40 acres within Rocky 
Mountain National Park, the Quinlan Ranch in Conejos County, 
Colorado, and the Bonham Ranch in Huerfano County, Colorado.
    The intent of S. 985 is supported by the National Park 
Service, the Bureau of Land Management and the exchange 
proponent, Lake Gulch, Inc. The lands to be acquired by the 
United States offer significant public resource values while 
the lands to be conveyed into non-Federal ownership can be more 
effectively developed and utilized for local community needs.
    This legislation would expedite the proposed exchange by 
allowing the transfer of public lands without survey. We 
generally support current requirements that all lands leaving 
Federal ownership must be surveyed. This case, however, is 
unique in that the public lands to be conveyed consist of 
numerous small and isolated parcels surrounded by private 
lands. Furthermore, the proponent has agreed to accept the 
public lands without survey.
    Present law requires the BLM to deposit into the general 
fund cash equalization payments made by the exchange proponent 
in cases where the Federal land values exceed that of the 
offered non-Federal Lands. S. 985 provides for the use of any 
cash equalization payments received by the BLM as part of this 
transaction to be used to acquire critical interests in the 
Blanca Wetlands in Alamosa County, Colorado. The use of these 
receipts would constitute direct spending under the pay-as-you-
go provisions of the Omnibus Budget Reconciliation Act. 
Consequently this provision should be modified to avoid pay-go 
cost.
    Additionally, the legislation allows the lands acquired 
within Rocky Mountain National Park to become a part of the 
park without additional action to by Administration or the 
Congress.
    Finally, the bill holds the United States harmless for 
subsequent activities conducted by Lake Gulch, Inc., including 
the storing, handling and dumping of hazardous wastes on the 
acquired public lands. We are, however, unclear as to the type 
of liability contemplated and would like to see the bill be 
more specific.
    Although we generally support the concept of S. 985, there 
are two provisions within Section 3 of the bill that need 
revision. Section 3(a) should recognize the value of comparable 
sales especially where lands with mineral potential are 
involved. We suggest adding the words, ``comparable sale of 
surface and subsurface property and'' before the word 
nationally on line 12. We would be glad to work with you on 
that wording.
    Section 3(b) provides for a covenant in the patent to 
eliminate gaming as a future use of public lands conveyed. The 
United States has no interest in controlling gaming on lands in 
Colorado. We suggest that the State and local laws through 
zoning would be more appropriately used to control gaming on 
these lands.
    Thank you for the opportunity to comment on S. 985. Please 
let me know if you need additional information.
            Sincerely,
                                     Bob Armstrong,
                                    Assistant Secretary for
                                      Land and Minerals Management.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the Act H.R. 2437 as 
reported.

                                
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