[Senate Report 104-268]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 403
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-268
_______________________________________________________________________


 
              ARKANSAS-OKLAHOMA LAND EXCHANGE ACT OF 1996

                                _______


                  May 13, 1996.--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 S. 1025]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1025) to provide for the exchange of 
certain federally-owned lands and mineral interests therein, 
and for other purposes, 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 PURPOSE.

    (a) Findings.--Congress finds that:
          (1) the Weyerhaeuser Company has offered to the United States 
        Government an exchange of lands under which Weyerhaeuser would 
        receive approximately 48,000 acres of Federal land in Arkansas 
        and Oklahoma and all mineral interests and oil and gas 
        interests pertaining to these exchanged lands in which the 
        United States Government has an interest in return for 
        conveying to the United States lands owned by Weyerhaeuser 
        consisting of approximately 181,000 acres of forested wetlands 
        and other forest land of public interest in Arkansas and 
        Oklahoma and all mineral interests and all oil and gas 
        interests pertaining to 48,000 acres of these 181,000 acres of 
        exchanged lands in which Weyerhaeuser has an interest, 
        consisting of:
                  (A) certain lands in Arkansas (Arkansas Ouachita 
                lands) located near Poteau Mountain, Caney Creek 
                Wilderness, Lake Ouachita, Little Missouri Wild and 
                Scenic River, Flatside Wilderness, and the Ouachita 
                National Forest;
                  (B) certain lands in Oklahoma (Oklahoma lands) 
                located near the McCurtain County Wilderness, the 
                Broken Bow Reservoir, and Glover River, and the 
                Ouachita National Forest; and
                  (C) certain lands in Arkansas (Arkansas Cossatot 
                lands) located on the Little and Cossatot Rivers and 
                identified as the ``Pond Creek Bottoms'' in the Lower 
                Mississippi River Delta section of the North American 
                Waterfowl Management Plan;
          (2) acquisition of the Arkansas Cossatot lands by the United 
        States will remove the lands in the heart of a critical wetland 
        ecosystem from sustained timber production and other 
        development;
          (3) the acquisition of the Arkansas Ouachita lands and the 
        Oklahoma lands by the United States for administration by the 
        Forest Service will provide an opportunity for enhancement of 
        ecosystem management of the National Forest System lands and 
        resources;
          (4) the Arkansas Ouachita lands and the Oklahoma lands have 
        outstanding wildlife habitat and important recreational values 
        and should continue to be made available for activities such as 
        public hunting, fishing, trapping, nature observation, 
        enjoyment, education, and timber management whenever these 
        activities are consistent with applicable Federal laws and land 
        and resource management plans; these lands, especially in the 
        riparian zones, also harbor endangered, threatened, and 
        sensitive plants and animals and the conservation of these 
        areas are important to the recreational and educational public 
        uses and will represent a valuable ecological resource which 
        should be conserved;
          (5) the private use of the lands the United States will 
        convey to Weyerhaeuser will not conflict with established 
        management objectives on adjacent Federal lands;
          (6) the lands the United States will convey to Weyerhaeuser 
        as part of the exchange described in paragraph (1) do not 
        contain comparable fish, wildlife, or wetland values;
          (7) the values of all lands, mineral interests, and oil and 
        gas interests to be exchanged between the United States and 
        Weyerhaeuser are approximately equal in value; and
          (8) the exchange of lands, mineral interests, and oil and gas 
        interest between Weyerhaeuser and the United States is in the 
        public interest.
    (b) Purpose.--The purpose of this Act is to authorize and direct 
the Secretary of the Interior and the Secretary of Agriculture, subject 
to the terms of this Act, to complete, as expeditiously as possible, an 
exchange of lands, mineral interests, and oil and gas interests with 
Weyerhaeuser that will provide environmental, land management, 
recreational, and economic benefits to the States of Arkansas and 
Oklahoma and to the United States.

SEC. 2. DEFINITIONS.

    As used in this Act:
    (a) Land.--The terms ``land'' or ``lands'' mean the surface estate 
and any other interests therein except for mineral interests and oil 
and gas interests.
    (b) Mineral Interests.--The term ``mineral interests'' means 
geothermal steam and heat and all metals, ores, and minerals of any 
nature whatsoever, except oil and gas interests, in or upon lands 
subject to this Act including, but not limited to, coal, lignite, peat, 
rock, sand, gravel, and quartz.
    (c) Oil and Gas Interests.--The term ``oil and gas interests'' 
means all oil and gas of any nature, including carbon dioxide, helium, 
and gas taken from coal seams (collectively ``oil and gas'').
    (d) Secretaries.--The term ``Secretaries'' means the Secretary of 
the Interior and the Secretary of Agriculture.
    (e) Weyerhaeuser.--The term ``Weyerhaeuser'' means Weyerhaeuser 
Company, a company incorporated in the State of Washington.

SEC. 3. EXCHANGE.

    (a) Exchange of Lands and Mineral Interests.--
          (1) In general.--Subject to paragraph (a)(2) and 
        notwithstanding any other provision of law, within 90 days 
        after the date of the enactment of this Act, the Secretaries 
        shall convey to Weyerhaeuser, subject to any valid existing 
        rights, approximately 20,000 acres of Federal lands and mineral 
        interests in the State of Arkansas and approximately 28,000 
        acres of Federal lands and mineral interests in the State of 
        Oklahoma as depicted on maps entitled ``Arkansas-Oklahoma Land 
        Exchange--Federal Arkansas and Oklahoma Lands,'' dated February 
        1996 and available for public inspection in appropriate offices 
        of the Secretaries.
          (2) Offer and acceptance of lands.--The Secretary of 
        Agriculture shall make the conveyance to Weyerhaeuser if 
        Weyerhaeuser conveys deeds of title to the United States, 
        subject to limitations and the reservation described in 
        subsection (b) and which are acceptable to and approved by the 
        Secretary of Agriculture to the following:
                  (A) approximately 120,000 acres of lands and mineral 
                interests in the State of Oklahoma, as depicted on a 
                map entitled ``Arkansas-Oklahoma Land Exchange--
                Weyerhaeuser Oklahoma Lands,'' dated February 1996 and 
                available for public inspection in appropriate offices 
                of the Secretaries;
                  (B) approximately 41,000 acres of lands and mineral 
                interests in the State of Arkansas, as depicted on a 
                map entitled ``Arkansas-Oklahoma Land Exchange--
                Weyerhaeuser Arkansas Ouachita Lands,'' dated February 
                1996 and available for public inspection in appropriate 
                officers of the Secretaries; and
                  (C) approximately 25,000 acres of lands and mineral 
                interests in the State of Arkansas, as depicted on a 
                map entitled ``Arkansas-Oklahoma Land Exchange--
                Weyerhaeuser Arkansas Cossatot Lands,'' dated February 
                1996 and available for public inspection in appropriate 
                offices of the Secretaries.
    (b) Exchange of Oil and Gas Interests.--
          (1) In general.--Subject to paragraph (b)(2) and 
        notwithstanding any other provision of law, at the same time as 
        the exchange for land and mineral interests is carried out 
        pursaunt to this section, the Secretary of Agriculture shall 
        exchange all Federal oil and gas interests, including existing 
        leases and other agreements, in the lands described in 
        paragraph (a)(1) for equivalent oil and gas interests, 
        including existing leases and other agreements, owned by 
        Weyerhaeuser in the lands described in paragraph (a)(2).
          (2) Reservation.--In addition to the exchange of oil and gas 
        interests pursuant to paragraph (b)(1), Weyerhaeuser shall 
        reserve oil and gas interests in and under the lands depicted 
        for reservation upon a map entitled ``Arkansas-Oklahoma Land 
        Exchange--Weyerhaeuser Oil and Gas Interest Reservation 
        Lands,'' dated February 1996 and available for public 
        inspection in appropriate offices of the Secretaries. Such 
        reservation shall be subject to the provisions of this Act and 
        the form of such reservation shall comply with the jointly 
        agreed to Memorandum of Understanding between the Forest 
        Service and Weyerhaeuser dated March 27, 1996 and on file with 
        the Office of the Chief of the Forest Service in Washington, 
        D.C.
    (c) General Provisions.--
          (1) Maps controlling.--The acreage cites in this Act is 
        approximate. In the case of a discrepancy between the 
        description of lands, mineral interests, or oil and gas 
        interests to be exchanged pursuant to subsection (a) and (b) 
        and the lands, mineral interests, or oil and gas interests 
        depicted on a map referred to in such subsection, the map shall 
        control. Subject to the notification required by paragraph (3), 
        the maps referenced in this Act shall be subject to such minor 
        corrections as may be agreed upon by the Secretaries and 
        Weyerhaeuser.
          (2) Final maps.--Not later than 180 days after the conclusion 
        of the exchange required by subsections (a) and (b), the 
        Secretaries shall transmit maps accurately depicting the lands 
        and mineral interests conveyed and transferred pursuant to this 
        Act and the acreage and boundary descriptions of such lands and 
        mineral interests to the Committees on Energy and Natural 
        Resources of the Senate and the Committee on Resources of the 
        House of Representatives.
          (3) Cancellation.--If, before the exchange has been carried 
        out pursuant to subsections (a) and (b), Weyerhaeuser provides 
        written notification to the Secretaries that Weyerhaeuser no 
        longer intends to complete the exchange, with respect to the 
        lands, mineral interests, and oil and gas interests that would 
        otherwise be subject to the exchange, the status of such lands, 
        mineral interests, and oil and gas interests shall revert to 
        the status of such lands, mineral interests, and oil and gas 
        interests as of the day before the date of enactment of this 
        Act and shall be managed in accordance with applicable law and 
        management plans.
          (4) Withdrawal.--Subject to valid existing rights, the lands 
        and interests therein depicted for conveyance to Weyerhaeuser 
        on the maps referenced in subsection (a) and (b) are withdrawn 
        from all forms of entry and appropriation under the public land 
        laws (including the mining laws) and from the operation of 
        mineral leasing and geothermal steam leasing laws effective 
        upon the date of the enactment of this Act. Such withdrawal 
        shall terminate 45 days after completion of the exchange 
        provided for in subsections (a) and (b) or on the date of 
        notification by Weyerhaeuser of a decision not to complete the 
        exchange.

SEC. 4. DESIGNATION AND USE OF LANDS ACQUIRED BY THE UNITED STATES.

    (a) National Forest System.--
          (1) Addition to the system.--Upon approval and acceptance of 
        title by the Secretary of Agriculture, the 155,000 acres of 
        land conveyed to the United States pursuant to section 
        3(a)(2)(A) and (B) of this Act shall be subject to the Act of 
        March 1, 1911 (commonly known as the ``Weeks Law'') (36 Stat. 
        961, as amended), and shall be administered by the Secretary of 
        Agriculture in accordance with the laws and regulations 
        pertaining to the National Forest System.
          (2) Plan amendments.--No later than 12 months after the 
        completion of the exchange required by the Act, the Secretary 
        of Agriculture shall begin the process to amend applicable land 
        and resource management plans with public involvement pursuant 
        to section 6 of the Forest and Rangeland Renewable Resources 
        Planning Act of 1974, as amended by the National Forest 
        Management Act of 1976 (16 U.S.C. 1604).
    (b) Other.--
          (1) Addition to the national wildlife refuge system.--Once 
        acquired by the United States, the 25,000 acres of land 
        identified in section 3(a)(2)(C), the Arkansas Cossatot lands, 
        shall be managed by the Secretary of the Interior as a 
        component of the Cossatot National Wildlife Refuge in 
        accordance with the National Wildlife Refuge System 
        Administration Act of 1966 (16 U.S.C. 668dd-668ee).
          (2) Plan preparation.--Within 24 months after the completion 
        of the exchange required by this Act, the Secretary of the 
        Interior shall prepare and implement a single refugee 
        management plan for the Cossatot National Wildlife Refuge, as 
        expanded by this Act. Such plan shall recognize the important 
        public purposes served by the nonconsumptive activities, other 
        recreational activities, and wildlife-related public use, 
        including hunting, fishing, and trapping. The plan shall 
        permit, to the maximum extent practicable, compatible uses to 
        the extent that they are consistent with sound wildlife 
        management and in accordance with the National Wildlife Refuge 
        System Administration Act of 1966 (16 U.S.C. 668dd-668ee) and 
        other applicable laws. Any regulations promulgated by the 
        Secretary of the Interior with respect to hunting, fishing, and 
        trapping on those lands shall, to the extent practicable, be 
        consistent with State fish and wildlife laws and regulations. 
        In preparing the management plan and regulations, the Secretary 
        of the Interior shall consult with the Arkansas Game and Fish 
        Commission.
          (3) Interim use of lands.--
                  (A) In general.--Except as provided in paragraph (2), 
                during the period beginning on the date of the 
                completion of the exchange of lands required by this 
                Act and ending on the first date of the implementation 
                of the plan prepared under paragraph (2), the Secretary 
                of the Interior shall administer all lands added to the 
                Cossatot National Wildlife Refuge pursuant to this Act 
                in accordance with the National Wildlife Refuge System 
                Administration Act of 1966 (16 U.S.C. 668dd-668ee) and 
                other applicable laws.
                  (B) Hunting seasons.--During the period described in 
                subparagraph (A), the duration of any hunting season on 
                the lands described in subsection (1) shall comport 
                with the applicable State law.

SEC. 5. OUACHITA NATIONAL FOREST BOUNDARY ADJUSTMENT.

    (a) In General.--Upon acceptance of title by the Secretary of 
Agriculture of the lands conveyed to the United States pursuant to 
Section 3(a)(2) (A) and (B), the boundaries of the Ouachita National 
Forest shall be adjusted to encompass those lands conveyed to the 
United States generally depicted on the appropriate maps referred to in 
Section 3(a). Nothing in this section shall limit the authority of the 
Secretary of Agriculture to adjust the boundary pursuant to section 11 
of the Weeks Law of March 1, 1911. For the purposes of section 7 of the 
Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-9), the 
boundaries of the Ouachita National Forest, as adjusted by this Act, 
shall be considered to be the boundaries of the Forest as of January 1, 
1965.
    (b) Maps and Boundary Descriptions.--Not later than 180 days after 
the date of enactment of this Act, the Secretary of Agriculture shall 
prepare a boundary description of the lands depicted on the map(s) 
referred to in section 3(a)(2) (A) and (B). Such map(s) and boundary 
description shall have the same force and effect as if included in this 
Act, except that the Secretary of Agriculture may correct clerical and 
typographical errors.

                         purpose of the measure

    The purpose of S. 1025 is to authorize and direct the 
Secretary of the Interior and the Secretary of Agriculture to 
complete an equal value exchange of approximately 48,000 acres 
of Federal lands and mineral interests in the States of 
Arkansas and Oklahoma for approximately 181,000 acres of 
private lands and mineral interests owned by Weyerhaeuser 
Company in the States of Arkansas and Oklahoma.

                          background and need

A. Background

    S. 1025 provides a mechanism to achieve important public 
and private goals. The proposed exchange presents an 
opportunity to increase greatly the net value of upland forest, 
wildlife, riverine, and watershed resources and recreational 
opportunities on the Ouachita National Forest; secure public 
ownership with management by the U.S. Fish and Wildlife Service 
for an extensive area of bottomland hardwood forest in 
southwestern Arkansas; and consolidate public and private 
ownership patterns in both Arkansas and Oklahoma.
    The lands proposed for the exchange, both coming into 
public ownership and going from public ownership to private 
ownership have a higher value for recreational, wildlife, and 
scenic purposes than for commercial timber production. On the 
other hand, the lands leaving public ownership are more 
valuable for commercial timber production. Notwithstanding 
these differences, the Forest Service has supplied the 
Committee with an analysis that shows the exchange will not 
negatively affect the allowable sales quantity of timber from 
the Ouachita National Forest.
    Most of the lands that the Forest Service will transfer to 
Weyerhaeuser pursuant to the proposed exchange have been 
scheduled for disposal in Forest Resource Management Plans 
since the mid-1980s. S. 1025 provides a mechanism for the 
public to acquire important natural and recreational resources 
that, in times of tightening agency budgets, could not 
otherwise be acquired.

B. Equal value exchange

    S. 1025 provides for an equal value exchange of lands, 
mineral interests, and oil and gas interests. Weyerhaeuser will 
convey approximately 181,000 acres of lands and mineral 
interests to the United States. In return, the United States 
will convey approximately 48,000 acres of lands and mineral 
interests to Weyerhaeuser. In addition, S. 1025 provides for an 
exchange of equivalent oil and gas interests between 
Weyerhaeuser and the United States--i.e., an equal exchange of 
oil & gas interests pertaining to 48,000 acres. The assets to 
be exchanged are summarized in the following table:





    The lands that the public would receive would be managed by 
the Forest Service and the Fish and Wildlife Service. These 
lands would provide outdoor recreation related opportunities 
and significant opportunities for wildlife habitat 
improvements.
    In Arkansas, the Fish and Wildlife Service will gain 
approximately 25,000 acres of lands to add to the Cossatot 
National Wildlife Refuge. This unique bottomland forest--called 
Pond Creek--is located in the floodplain between the Cassatot 
River and the Little River. These lands, which include a large 
functioning forested wetland with deep swaps and cypress-lined 
oxbow lakes, are extremely rich and diverse in wetland habitat 
for wading birds, resident and migratory waterfowl, small 
mammals, deer, fish, alligators, and other wildlife. In short, 
this exchange will provide protection for an important wetland 
habitat for resident wildlife species and migratory waterfowl.
    Also in Arkansas, the Forest Service will acquire lands 
that will complement Lake Ouachita, the Little Missouri Wild 
and Scenic River, Flatside Wilderness, and parts of the 
Ouachita National Forest. The exchange also will protect lands 
adjacent to and through which the Ouachita National Recreation 
Trail passes. Accordingly, the land exchange will enhance 
recreational opportunities for hiking, rock climbing, mountain 
biking, and other activities.
    In addition, part of Forked Mountain and several large 
tracts that surround the mountain will be transferred to the 
Forest Service, placing this prominent natural feature on the 
west end of the 
Flatside Wilderness Area entirely under Forest Service 
stewardship. Similarly, several thousand acres within view of 
or on Lake Ouachita and several of its large tributaries will 
also come under Forest Service ecosystem management. The land 
exchange will transfer lands within the Lake Winner watershed--
the city of Little Rock's water supply--to Forest Service 
management and thereby protect this watershed.
    In Oklahoma, the exchange will add more than 100,000 acres 
to the Ouachita National Forest near Lake Broken Bow. This will 
provide greater protection for the Broken Bow Lake area 
ecosystem, McCurtain County Wilderness Area (which is managed 
by the Oklahoma Department of Wildlife Conservation), Beech and 
Cucumber Creeks, and the Glover River.
    The land exchange also will help block up ownership that 
currently is intermingled between Weyerhaeuser Company and the 
Forest Service so that both parties can manage their lands more 
effectively.
    Finally, the Committee received substantial testimony that 
the exchange will benefit the tourism industry and local rural 
economies. Their protection could encourage growth in the 
second largest industry in Arkansas, creating new outdoor 
recreation and tourism related businesses and employment 
opportunities in nearby rural areas.

C. Ecological assessment

    In late 1995, the Arkansas Nature Conservancy completed a 
thirteen month independent Ecological Assessment of the 
Weyerhaeuser lands that will come into public ownership. This 
scientific assessment, which included field evaluations, 
concluded that the proposed exchange was environmentally sound 
and that the exchange would provide valuable environmental 
benefits to the public:

      The Weyerhaeuser Company lands covered by this assessment 
contain the ecological values found in the Ouachitas; including 
rugged ridges with diverse plant communities and old forests; 
clear creeks and rivers that contain an endemic aquatic biota 
found nowhere else in the world; and habitat for 127 sensitive 
species of plants and animals. Also included is a large, 
functioning forested wetland on the Gulf Coastal Plain and its 
associated ecological values.
      The significance of these lands is increased by the size 
and configuration of the contiguous forested areas and the 
concentration and patterns of the diversity of life found on 
them. More important in the long run is that the creation of 
new land ownership patterns will allow for the conservation and 
restoration of scale-dependent ecosystem processes and 
functions such as the large blocks of contiguous forested land 
needed by neotropical migratory birds; natural hydrologic 
regimes that continually create and maintain riparian and 
riverine habitats; and fire of an extent and pattern that 
imitates natural processes.

See The Nature Conservancy, ``Ecological Assessment: Forest 
Lands In Arkansas and Oklahoma Proposed For Inclusion Into the 
Ouachita National Forest And Cossatot National Wildlife 
Refuge,'' at 1 (Aug. 1995).
    In addition, at the request of Senator James Inhofe of 
Oklahoma and Representative Jay Dickey or Arkansas, an 
independent panel of forestry experts consisting of professors 
from Clemson University, Auburn University, and North Carolina 
State University conducted a review of the proposed exchange. 
The Independent Review Panel conducted on site visits of the 
lands proposed for exchange and analyzed the proposed exchange.
    The Independent Review Panel unanimously concluded that, 
based on economic considerations, the proposed exchange is an 
equal value transaction. The Independent Review Panel also 
unanimously concluded that, if the other intangible and 
ecological benefits of the exchange are considered, the 
proposed exchange is ``hugely in favor of the American 
public.''

    The exchange of lands includes numerous values and 
amenities not covered or considered in the market valuation of 
land and timber. The Panel finds that the exchange furthers the 
mission of all organizations and agencies involved by 
transferring to public ownership areas containing unique biotic 
communities, areas supporting critical or sensitive species, 
and areas that can, because of consolidated ownership, be 
managed on a landscape scale basis. Recreational opportunities 
will also be enhanced for the future by more acres coming to 
government ownership than are leaving it.
    Considering the nature of the respective properties and the 
3.8-to-1 acreage exchange ratio in favor of the Forest Service, 
the Panel believes that the balance of intangible benefits the 
proposed ``value-for-value'' exchange is hugely in favor of the 
American public.

See Edwin J. Jones, Charles F. Raper, & William A. Shain, 
``Proposed Weyerhaeuser Company, USDA Forest Service, USDI Fish 
and Wildlife Service, Two-State Land Exchange: A Report From 
the Independent Reviews Panel'' at 1 (executive summary) 
(November 19, 1995).
    The Ouachita National Forest are prepared a review of the 
proposed land exchange (See Ouachita National Forest, 
``Proposed Land Exchange Between USDA Forest Service and USDI 
Fish and Wildlife Service and Weyerhaeuser Company in Arkansas 
and Oklahoma'' (August 1995)). The Ouachita National Forest's 
analysis, which was made available for public review and 
comment, provided a detailed consideration and examination of 
various environmental, economic, and social factors pertaining 
to the proposed exchange.
    The Ouachita National Forest's analysis concluded that the 
proposed exchange would achieve several public purposes, 
including, among other benefits: (1) protecting a significant 
area of bottomland hardwood forests and wetlands; (2) securing 
additional protection for water quality and scenic quality; (3) 
enhancing tourism and recreation related economic 
opportunities; (4) complementing and enhancing the values of 
McCurtain County Wilderness Area, Broken Bow Lake, Hochatown 
State Park, and Beavers Bend State Park; (5) reducing 
fragmented National Forests (and watershed) patterns and 
associated management conflicts resulting in significant cost 
savings for the public; and (6) securing additional protection 
for numerous sensitive, threatened, and endangered species as 
well as increasing chances for long-term reduction of threats 
to such species.
    Finally, there has been an additional opportunity for 
public reviews and comment. Pursuant to the Endangered Species 
Act, Weyerhaeuser has applied for an incidental take permit 
from the Fish and Wildlife Service. The permit would authorize 
the take of the American Burying Beetle (Nicrophorus ameicanus) 
in Little River County, Arkansas, and McCurtain County, 
Oklahoma, resulting from normal forestry and other operational 
and management practices performed on Weyerhaeuser's lands. 
Weyerhaeuser has prepared and, under the terms of the 
Endangered Species Act, made available for public review and 
comment, a habitat conservation plan (HCP) for the American 
Burying Beetle. In addition, the Fish and Wildlife Service has 
prepared and made available for public review and comment an 
environmental assessment (See 60 Federal Register 63,054 (Dec. 
8, 1995)).

D. S. 1025 is wildely supported

    Over the past year, there have been opportunities for 
public comment on the reports pertaining to the proposed 
exchange as well as in the hearings conducted on S. 1025 and 
all concerns have had an opportunity to be heard. The Committee 
has received statements of support from, among others, the 
Forest Service, the Fish and Wildlife Service, and the States 
of Arkansas and Oklahoma, the National Wildlife Federation, the 
Arkansas Nature Conservancy, the Oklahoma Wildlife Federation, 
and the International Association of Machinists and Aerospace 
Workers.

                          legislative history

    S. 1025, the Arkansas-Oklahoma Land Exchange Act, was 
introduced by Senator Bumpers on July 12, 1995. Senators 
Nickles, Pryor, and Inhofe joined Senator Bumpers as 
cosponsors.
    The Subcommittee on Forests and Public Land Management held 
a field hearing on February 15, 1996, in Hot Springs, Arkansas.
    At the business meeting on April 24, 1996, the Committee on 
Energy and Natural Resources ordered S. 1025, favorably 
reported as amended.
    Representative Brewster introduced H.R. 3088, a companion 
measure to S. 1025, on March 14, 1996. Representatives Dickey 
and Hutchinson joined Representative Brewster as cosponsors. 
H.R. 3088 was referred jointly to the House Agriculture 
Committee and the House Resources Committee.

           committee recommendations and tabulation of votes

    The Committee on Energy and Natural Resources, in open 
business session on April 24, 1996, by a unanimous vote of a 
quorum present, recommends that the Senate pass S. 1025, if 
amended as described herein.
    The rollcall vote on reporting the measure was 20 yeas, 0 
nay, as follows:
        YEAS--20                      NAYS--0
Mr. Murkowski
Mr. Hatfield \1\
Mr. Domenici \1\
Mr. Nickles
Mr. Craig
Mr. Campbell
Mr. Thomas
Mr. Kyl \1\
Mr. Grams
Mr. Jeffords \1\
Mr. Burns \1\
Mr. Johnston
Mr. Bumpers
Mr. Ford \1\
Mr. Bradley
Mr. Bingaman
Mr. Akaka
Mr. Wellstone
Mr. Heflin \1\
Mr. Dorgan \1\

    \1\ Indicates voted by proxy.

                          committee amendments

    During consideration of S. 1025, the Committee on Energy 
and Natural Resources adopted an amendment in the nature of a 
substitute. In addition to several technical, clarifying, and 
conforming changes to S. 1025, the substitute amendment makes 
two substantive changes. First, the acreage transferred to the 
federal government was increased to ensure that the exchange 
would be one of equal value. Second, in light of a Memorandum 
of Understanding entered into between the United States Forest 
Service and Weyerhaeuser Company (attached to this Report as 
Appendix A) regarding disposition of oil and gas interests 
pertaining to the exchanged lands, the substitute amendment 
deletes language regarding oil and gas interests that was in S. 
1025 as introduced.

                      section-by-section analysis

Section 1. Findings and purpose

    Section 1(a) sets forth eight findings.
    Section 1(b) states the purpose of the bill, which is to 
authorize and direct the Secretary of the Interior and the 
Secretary of Agriculture to complete, as expeditiously as 
possible, an exchange of lands, mineral interests, and oil and 
gas interests that will provide environmental, land management, 
recreational, and economic benefit Arkansas and Oklahoma and 
the Nation.

Section 2. Definitions

    Section 2 defines the following terms used in the bill: 
land, mineral interests, oil and gas interests, Secretaries, 
and Weyerhaeuser.

Section 3. Exchange

    Section 3(a)(1) provides that, subject to Section 3(a)(3) 
and notwithstanding any other provision of law, within 90 days 
after the date of the enactment of this Act, the Secretaries 
shall convey to Weyerhaeuser, subject to any valid existing 
rights, approximately 20,000 acres of Federal lands and mineral 
interest in Arkansas and approximately 28,000 acres of Federal 
lands and mineral interest in Oklahoma as depicted on maps 
entitled ``Arkansas-Oklahoma Land Exchange--Federal Arkansas 
and Oklahoma Lands,'' dated February 1996 and available for 
public inspection in appropriation offices of the Secretaries.
    Section 3(a)(2) provides that the Secretary of Agriculture 
shall make the conveyance of lands and mineral interests 
referenced in section 3(a)(1) to Weyerhaeuser if Weyerhaeuser 
conveys deeds of title to the United States subject to 
limitations and the reservation described in subsection (b) and 
which are acceptable to and approved by the Secretary of 
Agriculture to: (A) approximately 120,000 acres of lands and 
mineral interests in the State of Oklahoma, as depicted on a 
map entitled ``Arkansas-Oklahoma Land Exchange--Weyerhaeuser 
Oklahoma Lands.'' dated February 1996; (B) approximately 41,000 
acres of lands and mineral interests in the State of Arkansas, 
as depicted on a map entitled ``Arkansas-Oklahoma Land 
Exchange--Weyerhaeuser Arkansas Ouachita. Lands,'' dated 
February 1996; and (C) approximately 25,000 acres of lands and 
mineral interests in the State of Arkansas, as depicted on a 
map entitled ``Arkansas-Oklahoma Land Exchange--Weyerhaeuser 
Arkansas Cossatot Lands,'' dated February 1996. All of the maps 
are available for public inspection in appropriation office of 
the Secretaries. It is the view of the Committee that the 
studies and analyses completed earlier (discussed in some 
detail in the ``Background and Need'' section of this report) 
provide sufficient information to meet the objectives of the 
National Environmental Policy Act with regard to the possible 
environmental impacts and effects.
    Section 3(b)(1) provides that, subject to section 3(b)(2) 
and notwithstanding any other provision of law, at the same 
time as the exchange for land and mineral interests is carried 
out pursuant to section 3, the Secretary of Agriculture shall 
exchange all Federal oil and gas interests, including existing 
leases and other agreements, in the lands described in section 
3(a)(1) for equivalent oil and gas interests, including 
existing leases and other agreements, owned by Weyerhaeuser in 
the lands described in section 3(a)(2).
    Section 3(b)(2) provides that, in addition to the exchange 
of oil and gas interests pursuant to section 3(b)(1), 
Weyerhaeuser shall reserve oil and gas interests in and under 
the lands depicted for reservation upon a map entitled 
``Arkansas-Oklahoma Land Exchange--Weyerhaeuser Oil and Gas 
Interest Reservation Lands,'' dated February 1996 and available 
for public inspection in appropriate offices of the 
Secretaries. Such reservation shall be subject to the 
provisions of this Act and the form of such reservation shall 
comply with the jointly agreed to Memorandum of Understanding 
between the Forest Service and Weyerhaeuser dated March 27, 
1996 and on file with the Office of the Chief of the Forest 
Service in Washington, D.C. (attached as Appendix A).
    Under this provision, and in accordance with the Memorandum 
of Understanding, Weyerhaeuser will retain a term reservation 
for oil and gas interests on a portion of its lands that are 
being transferred to the United States together with the right, 
subject to federal regulations promulgated by the Secretary of 
Agriculture, to enter upon these lands to remove oil and gas 
until December 31, 2041, and for so long thereafter that oil 
and gas is produced or capable of being produced in paying 
quantities therefrom. The United States will have the right to 
verify production capability. After December 31, 2041, the term 
reservation will expire as to all sections of the lands except 
those sections on which there is oil and gas production or 
drilling. The term reservation may be extended if there is an 
approved delay of more than 135 days or if an act of God causes 
a suspension for more than 30 days. Beginning January 1, 2042, 
Weyerhaeuser will retain a proportionately reduced 6.25% 
overriding royalty interest in any oil and gas produced from 
wells within any governmental section adjacent to or cornering 
a section in which oil and gas is being produced at the 
expiration of the term reservation. The overriding royalty will 
continue until either the producing well ceases production or 
until all federally leased wells to which the overriding 
royalty applies cease production, whichever is later.
    Section 3(c)(1) provides that any conflict between acreage 
figures cited and the map(s) referenced shall be resolved in 
favor of the maps.
    Section 3(c)(2) contains standard language with regard to 
filing of maps.
    Section 3(c)(3) provides that prior to implementation of 
the exchange, if Weyerhaeuser notifies the Secretaries in 
writing that it no longer intends to complete the exchange, the 
lands, mineral interests, and oil and gas interests that would 
otherwise be subject to the exchange shall revert to their 
status as of the day before enactment of this measure and be 
managed in accordance with applicable management plans.
    Section 3(c)(4) provides that, subject to valid existing 
rights, the lands depicted for conveyance to Weyerhaeuser 
(i.e., the Federal Arkansas and Oklahoma lands) are withdrawn 
from all forms of entry and appropriation under the public land 
laws (including the mining laws) and from the operation of 
mineral leasing and geothermal steam leasing laws effective 
upon the date of the enactment of this measure. Such withdrawal 
shall terminate 45 days after completion of the exchange 
provided for in sections 3 (a) and (b) or on the date of 
notification by Weyerhaeuser of a decision not to complete the 
exchange.

Section 4. Designation and use of lands acquired by the United States

    Section 4(a) provides that the 155,000 acres of lands 
conveyed to the United States by section 3(a)(2) (A) and (B) 
(i.e., the Arkansas Ouachita lands and the Oklahoma lands) will 
be subject to the Weeks Law and that the Secretary of 
Agriculture will administer these lands in accordance with the 
laws and regulations pertaining to the National Forest System.
    Section 4(a)(2) provides that no later than twelve months 
after completion of the exchange, the Secretary of Agriculture 
shall begin a public process to amend applicable land and 
resource management plans pursuant to section 6 of the Forest 
and Rangeland Renewable Resources Planning Act of 1974, as 
amended by the National Forest Management Act of 1976.
    Section 4(b)(1) provides that the Secretary of the Interior 
will add the 25,000 acres of land to be conveyed to the United 
States pursuant to section 3(a)(2)(C) (i.e., the Arkansas 
Cossatot lands) to the Cossatot National Wildlife Refuge and 
that the Secretary will manage the lands in accordance with the 
provisions of the National Wildlife Refuge System 
Administration Act of 1966.
    Section 4(b)(2) provides that, within 24 months after the 
completion of the exchange, the Secretary of the Interior shall 
prepare and implement a single refuge management plan for the 
Cossatot National Wildlife Refuge, as expanded by this 
exchange. Such plan shall recognize the important public 
purposes served by the nonconsumptive activities, other 
recreational activities, and wildlife-related public use, 
including hunting, fishing, and trapping. The plan shall 
permit, to the maximum extent practicable, compatible uses to 
the extent that they are consistent with sound wildlife 
management and in accordance with the National Wildlife Refuge 
System Administration Act of 1966 and other applicable laws. 
Any regulations promulgated by the Secretary of the Interior 
with respect to hunting, fishing, and trapping on those lands 
shall, to the extent practicable, be consistent with state fish 
and wildlife laws and regulations. In preparing the management 
plan and regulations, the Secretary of the Interior shall 
consult with the Arkansas Game and Fish Commission.
    Section 4(b)(3) provides that, prior to the implementation 
of the management plan, the duration of any hunting season on 
the lands added to the Cossatot Wildlife Refuge shall comport 
with state law. In all other respects, administration of the 
lands shall be in accordance with the National Wildlife Refuge 
System Administration Act of 1966 and other applicable laws.

Section 5. Ouachita National Forest boundary adjustment

    Section 5 expands the boundaries of the Ouachita National 
Forest to encompass the lands conveyed to the United States for 
management by the Forest Service (i.e., the Arkansas Ouachita 
lands and the Oklahoma lands) and requires the Secretary of 
Agriculture to prepare a boundary description for such lands.

                   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, May 10, 1996.

Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed S. 1025, a bill to provide for the exchange of certain 
federally owned lands and mineral interests therein, and for 
other purposes, as ordered reported by the Senate Committee on 
Energy and Natural Resources on April 24, 1996. CBO estimates 
that enacting S. 1025 would increase discretionary outlays by 
less than $100,000 a year, assuming appropriations of the 
necessary amounts. S. 1025 would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply 
to the bill.
    S. 1025 would direct the Secretary of Agriculture to convey 
to Weyerhaeuser Company, subject to any valid existing rights, 
about 48,000 acres of federal land and mineral interests in 
Arkansas and Oklahoma, in exchange for acquiring about 180,000 
acres of land currently owned by Weyerhaeuser.
    The bill provides that 155,000 acres of the land acquired 
from Weyerhaeuser would be administered by the Secretary of 
Agriculture as part of the Ouachita National Forest. Based on 
information from the U.S. Forest Service, we estimate that 
implementing this provision could increase administrative 
costs, but that any such costs would be negligible.
    The bill provides that 25,000 acres of Arkansas Cossatot 
lands acquired from Weyerhaeuser would be managed by the U.S. 
Fish and Wildlife Service (USFWS) as part of the Cossatot 
National Wildlife Refuge. The USFWA would prepare a refuge 
management plan for the newly expanded refuge within two years 
of the exchange. Based on information provided by the agency, 
we estimate that the federal government would spend less than 
$100,000 over the next two years to complete the required 
management plan and to carry out acquisition-related activities 
such as mapping. In addition, once the exchange is completed, 
the agency would spend about $100,000 annually for ongoing 
expenses such as payments to local governments under the Refuge 
Revenue Sharing Act. For purposes of this estimate we assume 
that the entire amounts needed for up-front costs and annual 
expenses would be appropriated as needed.
    S. 1025 contains no new private sector or intergovernmental 
mandates as defined in Public Law 104-4 and would impose no 
direct costs on state, local, or tribal governments.
    If you wish further details on this estimates, we would be 
pleased to provide them. The CBO staff contacts for federal 
costs are Victoria V. Heid and Deborah Reis, and for the state 
and local impact, Majorie Miller.
            Sincerely,
                                         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 our S. 1025. The bill is not a regulatory measure in 
the sense of imposing Government established standards or 
significant economic responsibilities on private individuals 
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 S. 1025 as ordered reported.

                        executive communications

    The Committee requested on February 15 legislative reports 
from the Department of Agriculture and the Office of Management 
and Budget setting forth agency recommendations on S. 1025. The 
report of the Department of Agriculture follows:

                          Department of Agriculture
                                   Office of the Secretary,
                                     Washington, DC April 23, 1996.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: This is in reply to your request for a 
report on S. 1025, a bill ``to provide for the exchange of 
certain Federally owned lands and mineral interests therein, 
and for other purposes.''
    The Department of Agriculture (USDA) recommended that S. 
1025 be enacted if amended as suggested herein. We have 
enclosed a version of S. 1025 that contains USDA's proposed 
amendments.
    The purpose of this bill is to authorize and direct the 
Secretary of Agriculture and the Secretary of the Interior to 
enter into an exchange of lands, mineral interests, and oil and 
gas interests in Weyerhauser Company to provide environmental, 
land management, recreational, and economic benefits to the 
States of Arkansas and Oklahoma and to the United States.
    USDA recognizes that land exchanges are an effective means 
of consolidating ownership patters and improving management 
efficiency. Because exiting authority does not provide for an 
administration exchange of land across State boundaries, 
legislation is necessary. The approximately equal value 
exchange authorized and directed by S. 1025 is in the public 
interest and is supported by USDA. This legislative exchange 
would consolidate land ownership holdings and bring additional 
acreage into both the National Forest System and the National 
Wildlife Refuge System.
    Some technical amendments to the bill are needed to reflect 
the value of the lands to be exchanged, to correct the acreage 
of the particular tracts of land and related interests to be 
conveyed, and to clarify the bill's intent and the authorities 
of the Secretary over the lands to be acquired.
    We also recommend amending section 3(b) of the bill 
relating to exchange of oil and gas interests. Since 
introduction of the bill, the Forest Service and Weyerhauser 
Company have entered into a memorandum, of understanding (MOU) 
that will govern the terms of the oil and gas reservation. Our 
proposed amendments reflect this MOU.
    The Office of Management and Budget advises that there is 
no objection to the presentation of this report from the 
standpoint of the Administration's program.
            Sincerely,
                                           Dan Clickman, Secretary.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rule of the Senate, the Committee notes that no 
changes in exiting law are made by the bill, S. 1025 as 
reported.


                           A P P E N D I X  A

                      Memorandum of Understanding

Sec. I. Introduction

    As part of the land exchange between the United States and 
Weyerhaeuser Company under consideration by the United States 
Congress, the United States Forest Service and Weyerhaeuser 
Company agree that Weyerhaeuser Company will reserve certain 
oil and gas interests. Such oil and gas interests shall be 
reserved through an Oil & Gas Interest Deed Reservation in the 
deeds pertaining to those lands for which such interests are 
reserved. The terms of the Oil & Gas Interest Deed Reservation 
are set forth below in Section II.

Sec. II. Form of oil & gas interest deed reservation

    The following shall be used as the oil and gas interest 
deed reservation:

                  oil & gas interest deed reservation

    Weyerhaeuser Company (``Grantor'') reserves for itself, its 
successors and assigns, all oil and gas, including carbon 
dioxide, helium, and gas taken from coal seams (``oil or 
gas''), in and under the above-described property 
(``property'') until December 31, 2041 and for so long 
thereafter that oil or gas is produced from the property 
(``term reservation''), together with the right to (1) enter 
upon the property for the purpose of exploring, prospecting, 
drilling, producing, transporting, treating, owning and 
removing oil or gas, and (2) occupy and make use of as much of 
the surface as is reasonably necessary for such purposes, 
subject to the regulations of the Secretary of Agriculture set 
forth in 36 C.F.R. Sec. 251.15, attached hereto and made a part 
hereof. Commencing January 1, 2042, Grantor reserves for 
itself, its successors and assigns, a proportionately reduced 
6.25 percent of 8/8's overriding royalty interest in all oil 
and gas produced from any well in any governmental section 
``section'') adjacent to or cornering a section in which oil 
and gas is being produced from the property at the expiration 
of the term reservation (``overriding royalty''). Such 
overriding royalty shall be payable to Grantor under the same 
terms and conditions provided for in a federal oil and gas 
lease in effect at the time the production occurs; Provided 
that, subject to the cessation of operations provision in the 
following paragraph, the overriding royalty will expire either 
after the producing well (a well producing on December 31, 
2041) ceases production or after all federally leased wells on 
the adjacent or cornering sections to which the overriding 
royalty applies cease production, whichever is later.
    For the purposes of these reservations, any reference to 
oil or gas production means a well or wells which are producing 
or capable of producing oil or gas in paying quantities. The 
United States has the right to verify the production capability 
of any well at reasonable intervals to insure it has remained 
capable of production. After December 31, 2041, the term 
reservation will expire as to any portion of the property 
located within a section in which there is no oil or gas 
production; provided that if on December 31, 2041, a well is 
being drilled on the property, the term reservation shall 
remain in effect as to the property in said section containing 
the drilling well for so long as drilling operations are 
diligently pursued and for so long thereafter as oil or gas is 
produced therefrom. If, after December 31, 2041, any producing 
well ceases to produce, the term reservation will expire as to 
that portion of the property located within the section 
containing said well, unless within one hundred and eighty 
(180) days from the date said production ceased, operations are 
commenced for the drilling of a new well or wells or reworking 
of an existing well, in which case the term reservation shall 
remain in effect for so long as drilling or reworking 
operations are diligently pursued and for so long thereafter as 
oil or gas is produced therefrom. Also provided that with 
respect to the aforementioned regulations of the Secretary of 
Agriculture, in the event that more than one hundred and 
thirty-five (135) days are required to obtain approval for any 
proposed operation for the purposes set forth herein, the 
December 31, 2041 term reservation expiration date shall 
automatically be extended as to any portion of the property 
located within a section that is within eight (8) miles of the 
section boundary for which approval for any proposed operation 
has not been obtained for that amount of time exceeding the one 
hundred and thirty-five (135) day period. Furthermore, if, 
despite the exercise of due care and diligence, the operations 
of Grantor, its successors or assigns are suspended by an Act 
of God for more than thirty (30) days, the December 31, 2041 
term reservation expiration date shall automatically be 
extended as to any portion of the property located within a 
section that is within eight (8) miles of the section boundary 
on which Grantor's operations have been suspended for that 
amount of time exceeding the thirty (30) day period.
    Dated this 27 day of March, 1996.

                                   United States Forest Service.
                                   Weyerhaeuser Company.
                                ------                                


        United States Department of Agriculture, Forest Service

conditions, rules and regulations to govern exercise of mineral rights 
              reserved in conveyances to the united states

Code of Federal Regulations--Title 36, chapter II, section 251.15

    (a) Except as otherwise provided in paragraphs (b) and (c) 
of this section, in conveyances of lands to the United States 
under authorized programs of the Forest Service, where owners 
reserve the right to enter upon the conveyed lands and to 
prospect for, mine and remove minerals, oil, gas, or other 
inorganic substances, said reservations shall be subject to the 
following conditions, rules and regulations which shall be 
expressed in and made a part of the deed of conveyance to the 
United States and such reservations shall be exercised 
thereunder and in obedience thereto:
    (1) Whoever undertakes to exercise the reserved rights 
shall give prior written notice to the Forest Service and shall 
submit satisfactory evidence of authority to exercise such 
rights. Only so much of the surface of the lands shall be 
occupied, used, or disturbed as is necessary in bona fide 
prospecting for, drilling, mining (including the milling or 
concentration of ores), and removal of the reserved minerals, 
oil, gas, or other inorganic substances.
    (2)(i) None of the lands in which minerals are reserved 
shall be so used, occupied, or disturbed as to preclude their 
full use for authorized programs of the Forest Service until 
the record owner of the reserved rights, or the successors, 
assigns, or lessees thereof, shall have applied for and 
received a permit authorizing such use, occupancy, or 
disturbance of those specifically described parts of the lands 
as may reasonably be necessary to exercise the reserved rights.
    (ii) Said permit shall be issued upon agreement as to 
conditions necessary to protect the interest of the United 
States including such conditions deemed necessary to provide 
for the safety of the public and other users of the land, and 
upon initial payment of the annual fee, which shall be at the 
rate of $2 per acre or fraction of acre included in the permit.
    (iii) The permit shall also provide that the record owner 
of the reserved right or the successors, assigns, or lessees 
thereof, will repair or replace any improvements damaged or 
destroyed by the mining operations and restore the land to a 
condition safe and reasonably serviceable for authorized 
programs of the Forest Service, and shall provide for a bond in 
sufficient amount as determined necessary by the Forest Service 
to guarantee such repair, replacement or restoration.
    (iv) Failure to comply with the terms and conditions of the 
aforesaid permit shall be cause for termination of all rights 
to use, occupy, or disturb the surface of the lands covered 
thereby, but in event of such termination a new permit shall be 
issued upon application when the causes for termination of the 
preceding permit have been satisfactorily remedied and the 
United States reimbursed for any resultant damage to it.
    (3) All structures, other improvements, and materials shall 
be removed from the lands within one year after date of 
termination of the aforementioned permit. Should the holder of 
the permit fail to do so within the specified time, the Forest 
Service may remove, destroy or otherwise dispose of said 
structures, other improvements, and materials at the 
permittee's expense, or in lieu thereof, may upon written 
notice to the permittee, assume title thereto in the name of 
the United States.
    (4) Timber and/or young growth cut or destroyed in 
connection with exercise of the reserved right shall be paid 
for at rates determined by the Forest Service to be fair and 
equitable for comparable timber and/or young growth in the 
locality. All slash resulting from cutting or destruction of 
timber or young growth shall be disposed of as required by the 
Forest Service.
    (5) In the prospecting for, mining, and removal of reserved 
minerals, oil, gas, or other inorganic substances all 
reasonable provisions shall be made for the disposal of 
tailings, dumpage, and other deleterious materials or 
substances in such manner as to prevent obstruction, pollution, 
or deterioration of water resources.
    (6) Nothing herein contained shall be construed to exempt 
operators or the mining operations from any requirements of 
applicable State laws nor from compliance with or conformity to 
any requirement of any law which later may be enacted and which 
otherwise would be applicable.
    (7) While any activities and/or operations incident to the 
exercise of the reserved rights are in progress, the operators, 
contractors, subcontractors, and any employees thereof shall 
use due diligence in the prevention and suppression of fires, 
and shall comply with all rules and regulations applicable to 
the land.
    (b) The conditions, rules and regulations set forth in 
subparagraphs (1) through (7) of paragraph (a) of this section 
shall not apply to reservations contained in conveyances of 
lands to the United States under the Act of March 3, 1925, as 
amended (43 Stat. 1133, 64 Stat. 82; 16 U.S.C. 555).
    (c) In cases where a State, or an agency, or a political 
subdivision thereof, reserves minerals, oil, gas, or other 
inorganic substances, in the conveyance of land to the United 
States under authorized programs of the Forest Service and 
there are provisions in the laws of such State or in 
conditions, rules and regulations promulgated by such State, 
agency, or political subdivision thereof, which the Chief, 
Forest Service, determines are adequate to protect the interest 
of the United States in the event of the exercise of such 
reservation, the Chief, Forest Service, is hereby authorized, 
in his discretion, to subject the exercise of the reservation 
to such statutory provisions or such conditions, rules and 
regulations in lieu of the conditions, rules and regulations 
set forth in subparagraph (1) through (7) of paragraph (a) of 
this section. In that event, such statutory provisions or such 
conditions, rules and regulations shall be expressed in and 
made a part of the deed of conveyance to the United States and 
the reservation shall be exercised thereunder and in obedience 
thereto.
    All regulations heretofore issued by the Secretary of 
Agriculture to govern the exercise of mineral rights reserved 
in conveyances of lands to the United States under authorized 
programs of the Forest Service shall continue to be effective 
in the cases to which they are applicable, but are hereby 
superseded as to mineral rights hereafter reserved in 
conveyances under such programs.

                                
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