[House Report 105-261]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-261
_______________________________________________________________________


 
                   HOOD BAY LAND EXCHANGE ACT OF 1997
_______________________________________________________________________


 September 23, 1997.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1948]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 1948) to provide for the exchange of lands within 
Admiralty Island National Monument, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend 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. SHORT TITLE.

  This Act may be cited as the ``Hood Bay Land Exchange Act of 1997''.

SEC. 2. FINDINGS.

  The Congress makes the following findings:
          (1) The Alaska National Interest Lands Conservation Act 
        established the Admiralty Island National Monument which is 
        managed by the Secretary of Agriculture, by and through the 
        Forest Service.
          (2) The Forest Service has established a policy of 
        encouraging the acquisition of private land inholdings within 
        Admiralty Island National Monument on a willing buyer/willing 
        seller basis. Congress has supported this policy, for example 
        by passage of the Greens Creek Land Exchange Act of 1996 which 
        provided for a land exchange of certain public and private 
        lands in Admiralty Island National Monument.
          (3) Lands owned by Alaska Pulp Corporation, consisting of 54 
        acres, more or less, located in Hood Bay on Admiralty Island 
        within the boundaries of the Kootznoowoo Wilderness are 
        available for transfer to Federal ownership on a willing 
        seller/willing buyer basis. The acquisition of these lands 
        would provide Federal ownership of this valuable land in a 
        critical area of Admiralty Island National Monument.
          (4) The United States is the owner of certain reversionary 
        interests to 143.87 acres, more or less, located adjacent to 
        Silver Bay near Sitka, Alaska, which interests were reserved in 
        patent No. 1213671 issued to the Alaska Pulp Corporation on 
        October 18, 1960. The transfer of the reversionary interests of 
        the United States in such lands adjacent to Silver Bay to the 
        Alaska Pulp Corporation would facilitate future use and 
        development of that land.
          (5) The future acquisition by the United States of the Chaik 
        Bay property on Admiralty Island to be incorporated into the 
        Kootznoowoo Wilderness would be in the public interest.

SEC. 3. DEFINITIONS.

  As used in this Act:
          (1) The term ``ANILCA'' means the Alaska National Interest 
        Lands Conservation Act (16 U.S.C. 3101 et seq.).
          (2) The term ``Company'' means the Alaska Pulp Corporation, 
        an Alaska corporation, its successors, and assigns.
          (3) The term ``Company Property'' means the property depicted 
        on United States Survey Plat 1058 approved March 20, 1917, 
        consisting of approximately 54 acres of land.
          (4) The term ``Federal Property'' means the reversionary 
        interest of the United States described in paragraphs (6) and 
        (7) of the patent dated October 18, 1960, granted by the Bureau 
        of Land Management to Alaska Lumber & Pulp Co., which was 
        recorded at Book 15, Pages 271-273, Sitka Recording District on 
        November 9, 1960. The term ``Federal Property'' does not 
        include the interests described in paragraphs (1) through (5) 
        of the said patent.
          (5) The term ``Monument'' means the Admiralty Island National 
        Monument, which was established by section 503 of ANILCA and 
        which is managed by the Secretary of Agriculture as a unit of 
        the National Forest System.
          (6) The term ``Secretary'' means the Secretary of 
        Agriculture.
          (7) The term ``Sitka'' means the city and borough of Sitka, 
        Alaska, a home-rule borough formed in accordance with the laws 
        of the State of Alaska.
          (8) The term ``Sitka Property'' means the property depicted 
        on the map entitled ``Sitka Lands'', dated August ____, 1997, 
        consisting of approximately 49 acres of land.

SEC. 4. LAND EXCHANGE, TRANSFER, RELINQUISHMENT.

  (a) Exchange of Company and Federal Property.--After the Company 
conveys to the United States, by general warranty deed, all right, 
title, and interest of the Company in and to the Company Property, the 
Secretary shall within 60 days of acceptance of delivery of said deed, 
unconditionally and without limitation except as provided herein, 
relinquish to the Company all right, title, and interest of the United 
States in and to the Federal Property and shall evidence that 
relinquishment by conveying to the Company a quitclaim deed to the 
Federal Property.
  (b) Relinquishment of Property to Sitka.--Upon relinquishment of the 
Federal Property to the Company under subsection (a), the Company shall 
transfer all right, title, and interest of the Company in the Sitka 
Property to Sitka.
  (c) Availability of Maps.--The map referred to in section 3(8) 
depicting the Sitka Property shall be on file and available for public 
inspection in the office of the Manager of the City and Borough of 
Sitka until the conveyance described in subsection (b), at which time 
the map shall be recorded along with the deed.

SEC. 5. PROCESSING OF AND TERMS AND CONDITIONS RELATING TO LAND 
                    EXCHANGE.

  (a) Surveys.--Notwithstanding any other provision of law, the 
Secretary of the Interior may conduct and approve all cadastral surveys 
that are necessary for completion of the exchange. The cost of any 
surveys shall be borne by the Company.
  (b) Equal Value Exchange.--The values of the Federal Property and the 
Company Property are deemed to be of equal value.
  (c) Administration.--The Secretary is directed to implement and 
administer the rights and obligations of the United States under this 
Act.
  (d) Cleanup Obligations.--Nothing in this Act shall impact or alter 
the Company's rights, duties, and obligations regarding investigation, 
remediation, cleanup, and restoration under its September 10, 1995, 
Commitment Agreement with the State of Alaska or other applicable law. 
The Company shall utilize its property consistent with that restrictive 
covenant recorded on September ____, 1997.
  (e) Title Standards.--Title to the Company Property to be conveyed to 
the United States shall be acceptable to the Secretary consistent with 
the title review standard of the Attorney General of the United States.

SEC. 6. GENERAL PROVISIONS.

  (a) Management of Company Property.--Upon acquisition of the Company 
Property by the United States pursuant to this Act, said property shall 
be managed as a part of the Admiralty Island National Monument and the 
Kootznoowoo Wilderness.
  (b) Authorization to Negotiate for Acquisition of Property.--In 
furtherance of the purposes of the Kootznoowoo Wilderness, the 
Secretary, acting through the Forest Service, is authorized to enter 
into negotiations with the owners of private property in Chaik Bay on 
Admiralty Island, with the objective of acquiring such property. The 
Secretary is authorized to enter into an option to purchase or an 
exchange agreement with the owners of such property to be effected 
either through existing administrative mechanisms provided by law and 
regulation, or by subsequent ratification by Act of Congress.

                          PURPOSE OF THE BILL

    The purpose of H.R. 1948 is to provide for the exchange of 
lands within Admiralty Island National Monument and near Sitka, 
Alaska.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 1948 provides for an exchange of land and interests 
between the U.S. Forest Service and the Alaska Pulp Corporation 
(APC), to benefit the City of Sitka, Alaska. In exchange for 
the relinquishment of the federal reversionary interest in 
about 144 acres of land owned by APC, the United States 
acquires a 54-acre inholding owned by APC, and incorporates it 
into the Kootznoowoo Wilderness of Admiralty Island National 
Monument. In addition, the City acquires ownership from APC of 
certain land containing its hydro-electric and water utilities.
    APC constructed a pulp mill on about 144 acres of land it 
was granted by the federal government in 1960. The site was the 
major economic force in Sitka, a community on Baranof Island in 
Southeast Alaska, and employed hundreds of workers. The City 
has an easement to use some of these lands for its water supply 
and hydro-electric power. Under a reverter clause in the 
original patent, ownership of the land granted to APC 
(including land occupied by the City), reverts to the federal 
government if the mill site is not used for timber processing 
for five consecutive years.
    The pulp mill shut down in September 1993, causing economic 
hardship in the City. The closure has raised the question of 
whether the federal government can or should claim ownership of 
these industrial lands through its reversionary interest. 
Sitka's Mayor and Assembly want to put the land back into 
productive use; however, the reverter interest clouds the 
status of these lands.
    To resolve this problem, H.R. 1948 provides for an exchange 
in which the federal government relinquishes its reversionary 
interest in the mill site land, and property owned by APC on 
Admiralty Island is conveyed to the United States. Acquisition 
of this land is a priority for the Forest Service.
    The bill was reported with an amendment authorizing the 
U.S. Forest Service to enter into negotiations for the 
acquisition of a private inholding in Chaik Bay through 
purchase or exchange. Such negotiations would be in accordance 
with current administrative mechanisms. This inholding would 
become part of the Kootznoowoo Wilderness.

                            COMMITTEE ACTION

    H.R. 1948 was introduced on June 17, 1997, by Congressman 
Don Young (R-AK). The bill was referred to the Committee on 
Resources. The Committee held a hearing on H.R. 1948 on July 
30, 1997, where testimony was received from the U.S. Forest 
Service, the Mayor of Sitka, and representatives of the Alaska 
Pulp Corporation and of the Southeast Alaska Conservation 
Council. On September 10, 1997, the Committee met to mark up 
H.R. 1948. An amendment in the nature of a substitute to 
address major concerns raised by the Administration was offered 
by Congressman Young, and adopted by voice vote. The bill as 
amended was then ordered favorably reported to the House of 
Representatives by voice vote.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 1948.

                        COST OF THE LEGISLATION

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 1948. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     COMPLIANCE WITH HOUSE RULE XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
1948 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 1948.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
1948 from the Director of the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                      U.S. Congress
                               Congressional Budget Office,
                                Washington, DC, September 18, 1997.
Hon. Don Young,
Charman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1948, the Hood Bay 
Land Exchange Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts for this 
estimate are Victoria V. Heid (for federal costs) and Marjorie 
Miller (for the impact on state and local governments).
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

H.R. 1948--Hood Bay Land Exchange Act of 1997

    CBO estimates that enacting this bill would not have a 
significant impact on the federal budget. Because H.R. 1948 
would not affect direct spending or receipts, pay-as-you-go 
procedures would not apply.
    H.R. 1948 provides that if the Alaska Pulp Corporation 
(APC) conveys to the United States about 54 acres of land owned 
by APC on Admiralty Island National Monument in southeast 
Alaska, then the Secretary of Agriculture would be directed to 
relinquish to APC certain federal reversionary interests in 
about 144 acres of land at the APC pulp mill site near Sitka, 
Alaska. The bill provides that the APC property acquired by the 
federal government would be managed as part of the Admiralty 
Island National Monument and Kootznoowoo Wilderness, which are 
within the boundaries of the Tongass National Forest. H.R. 1948 
also provides that once the federal government relinquishes to 
APC certain of its reversionary interests in the pulp mill 
site, APC would then transfer ownership of about 49 acres of 
the land to the city and borough of Sitka, Alaska. That acreage 
is currently being used by the city and borough of Sitka for 
hydroelectric operations under a Federal Power Act license.
    H.R. 1948 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 
1995. The city and borough of Sitka would benefit from 
enactment of this bill because they would receive, without 
compensation, title to property as described above. Further, by 
clearing title to the mill site, the bill would facilitate 
future economic development in Sitka. The bill would have no 
other significant impact on the budgets of state, local, or 
tribal governments.
    The CBO staff contacts for this estimate are Victoria V. 
Heid (for federal costs) and Marjorie Miller (for the impact on 
state and local governments). This estimate was approved by 
Robert A. Sunshine, Deputy Assistant Director for Budget 
Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 1948 contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, H.R. 1948 would make no changes in existing 
law.

                                
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