[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.