[House Report 105-471]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-471
_______________________________________________________________________


 
 EXCHANGE OF CERTAIN MINERAL INTERESTS IN BILLINGS COUNTY, NORTH DAKOTA

                                _______
                                

 March 30, 1998.--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

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2574]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 2574) to consolidate certain mineral interests in the 
National Grasslands in Billings county, North Dakota, through 
the exchange of Federal and private mineral interests to 
enhance land management capabilities and environmental and 
wildlife protection, and for other purposes, having considered 
the same, report favorably thereon without amendment and 
recommend that the bill do pass.

                          purpose of the bill

    The purpose of H.R. 2574 is to consolidate certain mineral 
interests in the National Grasslands in Billings County, North 
Dakota, through the exchange of federal and private mineral 
interests to enhance land management capabilities and 
environmental and wildlife protection.

                  background and need for legislation

    For over a decade, the United States Forest Service and 
Burlington Resources Oil & Gas Company (formerly Meridian Oil, 
Inc.) have been considering a possible exchange of oil and gas 
rights in the Bullion Butte and Ponderosa Pine areas of the 
Little Missouri National Grasslands in North Dakota. The land 
ownership pattern in those areas is very fragmented, with both 
federal and privately owned mineral rights and federal surface 
and private subsurface estates. Under North Dakota law, the 
right to develop the subsurface minerals is dominant to the 
right to manage the surface area.
    This lack of unity between the surface and subsurface 
estates and intermixture of public and private mineral rights 
have complicated both effective management of surface resource 
values and efficient extraction of minerals. For the Forest 
Service, an exchange to consolidate mineral ownerships provides 
an opportunity to protect bighorn sheep and their habitat and 
the viewshed of the Little Missouri River corridor. For 
Burlington, an exchange will facilitate exploration for and 
development of oil and gas by reducing the conflict such 
activities would have with other sensitive Grasslands 
resources.
    The Forest Service and Burlington reached an agreement last 
year on an exchange of certain federal and private mineral 
rights and the imposition of certain constraints on Burlington 
oil and gas activities. The Forest Service and Burlington 
entered into a Memorandum of Understanding (MOU), that will 
take effect after the exchange is completed, regarding oil and 
gas exploration and development methods to further increase 
protection of environmentally sensitive Forest Service lands.
    The MOU, adopted by reference in the legislation, obligates 
Burlington to make its best efforts to locate any oil and gas 
facilities and installations outside the \1/4\ mile view 
corridor on either side of the stretch of the Little Missouri 
River being considered for designation as a Wild and Scenic 
River and to access certain other property adjacent to an 
important bighorn sheep lambing area only by directional 
drilling.
    Senator Byron L. Dorgan (D-ND) introduced S. 750 on May 15, 
1997, to implement the agreement. H.R. 2574 is identical to S. 
750 as it was passed by the Senate by unanimous consent on 
October 6, 1997.
    H.R. 2574 directs the Secretary of Agriculture to convey 
8,796 acres of federal oil and gas rights to Burlington 
Resources Oil & Gas Company in exchange for Burlington's 
mineral rights in approximately 9,582 acres, all in Billings 
County, North Dakota, within 45 days of enactment. The 
legislation also authorizes the exchange of any other private 
mineral rights in the same area for federal mineral rights 
within six months of enactment.
    The bill recognizes that the mineral interests to be 
exchanged with Burlington shall be of equal value, and requires 
that the other mineral rights to be transferred shall be of 
approximately equal value; it specifies that all activities of 
Burlington, its successors and assigns, shall be subject to the 
terms of the MOU which was executed by the Forest Service and 
Burlington in November 1995; and it assures that no provision 
of the legislation can be interpreted to limit, restrict, or 
otherwise affect the application of the principle of multiple 
use in any area of the Little Missouri National Grasslands.

                            committee action

    H.R. 2574 was introduced on September 29, 1997, by 
Congressman Earl Pomeroy (D-ND). The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Forests and Forest Health and the Subcommittee 
on Energy and Mineral Resources. On October 28, 1997, the 
Forests and Forest Health Subcommittee held a hearing on H.R. 
2574, where the Administration testified in support of the 
bill. On November 4, 1997, the Forests and Forest Health 
Subcommittee met to mark up H.R. 2574. No amendments were 
offered and the bill was ordered favorably reported to the Full 
Committee by voice vote. On March 11, 1998, the Full Resources 
Committee met to consider H.R. 2574. The Subcommittee on Energy 
and Mineral Resources was discharged from further consideration 
of the bill. No amendments were offered and the bill 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 and Article IV, section 3 of the 
Constitution of the United States grant Congress the authority 
to enact H.R. 2574.

                        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. 2574. 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. 
2574 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in tax 
expenditures. According to the Congressional Budget Office, 
enactment of H.R. 2574 could reduce offsetting receipts to the 
federal government, but these receipts would total less than 
$500,000 a year.
    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. 2574.
    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. 
2574 from the Director of the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 23, 1998.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2574, a bill to 
consolidate certain mineral interests in the National 
Grasslands in Billings County, North Dakota, through the 
exchange of federal and private mineral interests to enhance 
land management capabilities and environmental and wildlife 
protection, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Victoria V. 
Heid.
            Sincerely,
                                           June E. O'Neill,
                                                          Director.
    Enclosure.

H.R. 2574--A bill to consolidate certain mineral interests in the 
        National Grasslands in Billings County, North Dakota, through 
        the exchange of federal and private mineral interests to 
        enhance land management capabilities and environmental and 
        wildlife protection, and for other purposes

    CBO estimates that enacting H.R. 2574 would not have a 
significant impact on the federal budget. Because the bill 
could affect offsetting receipts, pay-as-you-go procedures 
would apply, but we estimate that any such effect would not be 
significant. H.R. 2574 contains no intergovernmental or 
private-sector mandates as defined in the unfunded Mandates 
Reform Act of 1995 and would have no significant impact on the 
budgets of state, local, or tribal governments.
    H.R. 2574 provides for an approximately equal-value 
exchange of mineral interests between the Secretary of 
Agriculture and private owners of subsurface property in 
Billings County, North Dakota. The bill would convey about 
8,800 acres of federally owned subsurface property to 
Burlington Resources Oil & Gas Company and other private owners 
in exchange for those parties conveying about 9,600 acres of 
their subsurface property to the United States. Enacting the 
bill would consolidate the current checkerboard pattern of 
subsurface ownership in the area, protect certain federally 
owned surface areas from the effects of mineral development, 
and allow any such development to proceed more smoothly. The 
Forest Service manages the federal surface areas affected by 
this bill, and the Bureau of Land Management (BLM) manages the 
affected federal subsurface in cooperation with the Forest 
Service.
    H.R. 2574 provides that if Burlington Resources Oil & Gas 
Company conveys title acceptable to the Secretary of 
Agriculture to all oil and gas rights and interests on certain 
lands identified on the map entitled ``Billings County, North 
Dakota, Consolidated Mineral Exchange--November 1995,'' then 
the Secretary is directed to convey to Burlington all federal 
oil and gas rights and interests on lands identified on that 
map. In addition, the bill provides that if Burlington makes 
the above conveyance and, within 180 days of the bill's 
enactment, the owners of the remaining non-oil and gas mineral 
interests on lands identified on the same map convey title 
acceptable to the Secretary, then the Secretary shall convey to 
those owners all remaining non-oil and gas mineral interests in 
National Forest System lands and National Grasslands identified 
on that map by mutual agreement of the Secretary and the owners 
of those interests.
    Enacting H.R. 2574 could reduce offsetting receipts to the 
government, but based on information from BLM and the Forest 
Service, CBO estimates that any forgone receipts would likely 
total less than $500,000 per year. According to the agencies, 
the subsurface property involved in the proposed exchange 
currently has no mineral development on it, but it does have 
the potential for future development. The Forest Service seeks 
to acquire some of the subsurface now owned by Burlington to 
protect certain federal surface land overlying it from 
potential disturbances from mineral development; therefore, the 
federal government is unlikely to lease for future mineral 
development those subsurface areas it would acquire under the 
bill. But because the managing agencies have no plans to lease 
the subsurface now owned by the federal government and proposed 
for conveyance to Burlington under the bill, enacting H.R. 2574 
is unlikely to reduce receipts significantly.
    The CBO staff contact for this estimate is Victoria V. 
Heid. This estimate was approved by Paul N. Van de Water, 
Assistant Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 2574 contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, H.R. 2574 would make no changes in existing 
law.

                            ADDITIONAL VIEWS

    The purpose of this bill is to ratify an exchange of 
mineral assets between the U.S. Forest Service and Burlington 
Resources in order to consolidate federal land holdings in the 
National Grasslands of North Dakota. The exchange is deemed 
desirable because the land and mineral ownership pattern in 
this area is fragmented, with the Forest Service managing the 
surface estate of the lands while Burlington Resources owns 
subsurface mineral rights.
    The Forest Service supports the objectives of the exchange 
in order to protect significant resources values in the 
National Grasslands, including the Kinley Plateau roadless area 
which provides critical habitat for bighorn sheep. The exchange 
will also have the benefit of protecting view-shed lands along 
the scenic Little Missouri River. A Memorandum of Understanding 
between the Forest Service and Burlington Resources concerning 
exploration and development of Burlington's mineral rights is 
also intended to provide additional protection to sensitive 
lands.
    The Administration supports the objectives of this 
exchange, but did raise concerns in hearing testimony about 
procedures in the bill. I would have preferred that the Forest 
Service prepared a legislative environmental impact statement 
for Congress to consider. And I urge the Forest Service to do 
so in the future when requesting that Congress ratify such 
exchange agreements.
    But this appears to be a unique case. The Forest Service 
has engaged in extensive public outreach in negotiating this 
exchange. Major stakeholders in North Dakota, including 
environmental groups, support the exchange and the bill as 
drafted by the congressional delegation. There appears nothing 
to be gained by undue delay in its implementation.

                                                     George Miller.

                                
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