[House Report 105-704]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-704
_______________________________________________________________________


 
       MOUNT ST. HELENS NATIONAL VOLCANIC MONUMENT COMPLETION ACT

_______________________________________________________________________


 September 11, 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

                        [To accompany H.R. 1659]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 1659) to provide for the expeditious completion of the 
acquisition of private mineral interests within the Mount St. 
Helens National Volcanic Monument mandated by the 1982 Act that 
established the 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 ``Mount St. Helens National Volcanic 
Monument Completion Act''.

SEC. 2. FINDINGS AND PURPOSE.

  (a) Findings.--Congress finds that--
          (1) the Act entitled ``An Act to designate the Mount St. 
        Helens National Volcanic Monument in the State of Washington, 
        and for other purposes'', approved August 26, 1982 (96 Stat. 
        301; 16 U.S.C. 431 note), required the United States to acquire 
        all land and interests in land in the Mount St. Helens National 
        Volcanic Monument;
          (2) the Act directed the Secretary of Agriculture to acquire 
        the surface interests and the mineral and geothermal interests 
        by separate exchanges and expressed the sense of Congress that 
        the exchanges be completed by November 24, 1982, and August 26, 
        1983, respectively; and
          (3) the surface interests exchange was consummated timely, 
        but the exchange of all mineral and geothermal interests has 
        not yet been completed a decade and a half after the Act's 
        enactment.
  (b) Purpose.--The purpose of this Act is to provide for the 
expeditious completion of the previously mandated Federal acquisition 
of private mineral and geothermal interests within the Mount St. Helens 
National Volcanic Monument.

SEC. 3. ACQUISITION OF MINERAL RIGHTS WITHIN THE NATIONAL VOLCANIC 
                    MONUMENT.

  Section 3 of the Act entitled ``An Act to designate the Mount St. 
Helens National Volcanic Monument in the State of Washington, and for 
other purposes'', approved August 26, 1982 (96 Stat. 302; 16 U.S.C. 431 
note), is amended--
          (1) in subsection (a), by striking ``and except that the 
        Secretary may acquire mineral and geothermal interests only by 
        exchange. It is the sense of the Congress that in the case of 
        mineral and geothermal interests such exchanges should be 
        completed within one year after the date of enactment of this 
        Act''; and
          (2) by adding at the end the following:
  ``(g) Expeditious Completion of Mineral and Geothermal Interests.--
          ``(1) Definition of holder.--In this subsection, the term 
        `holder' means a company, or its successor, referred to in 
        subsection (c).
          ``(2) In general.--Within the period described in paragraph 
        (7), the Secretary of the Interior shall acquire by exchange 
        the mineral and geothermal interests in the Monument of each 
        holder.
          ``(3) Monetary credits.--
                  ``(A) Issuance.--In exchange for the mineral and 
                geothermal interests acquired by the Secretary of the 
                Interior from a holder under paragraph (2), the 
                Secretary of the Interior shall issue to the holder 
                monetary credits that may be exercised by the holder 
                for payment of--
                          ``(i) not more than 50 percent of the bonus 
                        or other payments made by successful bidders in 
                        any sales of mineral, oil, gas, or geothermal 
                        leases under the Mineral Leasing Act (30 U.S.C. 
                        181 et seq.), the Outer Continental Shelf Lands 
                        Act (43 U.S.C. 1331 et seq.), or the Geothermal 
                        Steam Act of 1970 (30 U.S.C. 1001 et seq.); or
                          ``(ii) not more than 50 percent of any 
                        royalty, rental, or advance royalty payment 
                        made to the United States to maintain any 
                        mineral, oil or gas, or geothermal lease issued 
                        under the Acts listed in clause (i).
                  ``(B) Value of credits.--The credits issued under 
                subparagraph (A) shall equal the fair market value of 
                all mineral and geothermal interests conveyed in the 
                exchange as determined under paragraph (4).
                  ``(C) Acceptance of credits.--The Secretary of the 
                Interior shall accept credits issued under subparagraph 
                (A) in the same manner as cash for the payments 
                described in subparagraph (A). The use and exercise of 
                the credits shall be subject to the laws (including 
                regulations) governing such payments, to the extent the 
                laws are consistent with this subsection.
                  ``(D) Treatment of credits for distribution to 
                states.--All amounts in the form of credits accepted by 
                the Secretary of the Interior under subparagraph (C) 
                for the payments described in subparagraph (A) shall be 
                considered to be money received for the purpose of 
                section 35 of the Mineral Leasing Act (30 U.S.C. 191) 
                and section 20 of the Geothermal Steam Act of 1970 (30 
                U.S.C. 1019).
          ``(4) Valuation of interests.--
                  ``(A) In general.--Not later than 120 days after the 
                date of enactment of this subsection, the mineral and 
                geothermal interests to be conveyed by each holder in 
                the exchanges required by paragraph (2) shall be valued 
                by one of the following methods, as selected by the 
                Secretary of the Interior:
                          ``(i) Use of appraisal report.--The 1982 
                        value established by the report of the third 
                        party appraisal completed on September 11, 
                        1991, shall be adjusted to reflect changes in 
                        the consumer price index for all urban 
                        consumers published by the Department of Labor 
                        as of the date on which the exchange is to be 
                        consummated pursuant to paragraph (7), or such 
                        other value as shall be mutually agreed to by 
                        the Secretary of the Interior and the holders 
                        not later than 30 days after the date of 
                        enactment of this subsection.
                          ``(ii) New appraisal.--
                                  ``(I) Selection of appraiser.--Not 
                                later than 30 days after the date of 
                                enactment of this subsection, the 
                                Secretary of the Interior and the 
                                holders shall mutually agree on the 
                                selection of a qualified appraiser to 
                                conduct an appraisal of the mineral and 
                                geothermal interests.
                                  ``(II) No agreement on appraiser.--If 
                                no appraiser is mutually agreed to 
                                under subclause (I), not later than 60 
                                days after the date of enactment of 
                                this subsection--
                                          ``(aa) the Secretary of the 
                                        Interior and the holders shall 
                                        each designate a qualified 
                                        appraiser; and
                                          ``(bb) the two designated 
                                        appraisers shall select a third 
                                        qualified appraiser to perform 
                                        the appraisal with the advice 
                                        and assistance of the 
                                        designated appraisers and in 
                                        accordance with the 
                                        instructions that were mutually 
                                        agreed on for the September 11, 
                                        1991, third part appraisal.
                                  ``(III) Date of valuation.--The value 
                                of the mineral and geothermal interests 
                                to be conveyed by each holder shall be 
                                calculated as of August 26, 1982, 
                                adjusted to reflect changes in the 
                                consumer price index for all urban 
                                consumers published by the Department 
                                of Labor as of the date on which the 
                                exchange is to be consummated pursuant 
                                to paragraph (7).
                                  ``(IV) Costs.--The Secretary of the 
                                Interior shall bear the costs of the 
                                process established by this clause.
                  ``(B) Timely appraisal report.--The appraisal report 
                resulting from subparagraph (A) shall be presented to 
                the Secretary of the Interior timely to permit the 
                Secretary of the Interior to determine the value of the 
                mineral and geothermal interests to be conveyed by each 
                holder. Not later than the date that is 180 days after 
                the date of enactment of this subsection, the Secretary 
                of the Interior shall notify each holder of the 
                determination.
                  ``(C) Failure of process.--If the Secretary of the 
                Interior fails to make a determination under 
                subparagraph (B) by the date that is 180 days after the 
                date of enactment of this subsection or if any holder 
                does not agree with the value determined by the 
                Secretary of the Interior under subparagraph (B), one 
                or more of the holders may petition the United States 
                Court of Federal Claims for a determination of the 
                value of the mineral and geothermal interests to be 
                conveyed by the holders in accordance with this 
                subsection. Subject to the right of appeal, a 
                determination by the Court shall be binding for 
                purposes of this subsection on all parties.
          ``(5) Exchange account.--
                  ``(A) In general.--Notwithstanding any other 
                provision of law, not later than 30 days after the 
                completion of each exchange with a holder required by 
                this subsection, the Secretary of the Interior shall 
                establish, with the Minerals Management Service of the 
                Department of the Interior, an exchange account for the 
                holder for monetary credits described in paragraph (3).
                  ``(B) Initial balance.--The initial balance of 
                credits in each holder's account shall be equal to the 
                value as determined under paragraph (4) of the mineral 
                and geothermal interests conveyed by the holder in the 
                exchange.
                  ``(C) Use of credits.--The balance of credits in a 
                holder's account shall be available to the holder or 
                its assigns for the purposes of paragraph (3). The 
                Secretary of the Interior shall adjust the balance of 
                credits in the account to reflect payments made 
                pursuant to paragraph (3).
                  ``(D) Transfer of credits.--
                          ``(i) In general.--A holder may transfer or 
                        sell any credits in the holder's account to 
                        another person.
                          ``(ii) Use of transferred credits.--Credits 
                        transferred under clause (i) may be used in 
                        accordance with this subsection only by a 
                        person that is qualified to bid on, or that 
                        holds, a mineral, oil, or gas lease under the 
                        Mineral Leasing Act (30 U.S.C. 181 et seq.), 
                        the Outer Continental Shelf Lands Act (43 
                        U.S.C. 1331 et seq.), or the Geothermal Steam 
                        Act of 1970 (30 U.S.C. 1001 et seq.).
                          ``(iii) Notification.--A holder shall notify 
                        the Secretary of the Interior of any transfer 
                        or sale under this subparagraph promptly after 
                        the transfer or sale.
                  ``(E) Time limit on use of credits.--On the date that 
                is 5 years after an account is created under 
                subparagraph (A), the Secretary of the Interior shall 
                terminate the account and any remaining credits in the 
                account shall become unusable.
          ``(6) Title to interests.--On the date of the establishment 
        of an exchange account for a holder under paragraph (5)(A), 
        title to any mineral and geothermal interests that are held by 
        the holder and are to be acquired by the Secretary of the 
        Interior under paragraph (2) shall transfer to the United 
        States.
          ``(7) Completion of exchanges.--The Secretary of the Interior 
        shall complete the exchanges under paragraph (2) not later than 
        180 days after the date of enactment of this subsection or as 
        soon as practicable after completion of the process described 
        in paragraph (4)(C).''.

                          Purpose of The Bill

    The purpose of H.R. 1659 is to provide for the expeditious 
completion of the acquisition of private mineral interests 
within the Mount St. Helens National Volcanic Monument mandated 
by the 1982 Act that established the Monument.

                  Background and Need for Legislation

    H.R. 1659 directs the Secretary of the Interior to fulfill 
a 1982 statutory requirement that the federal government 
acquire the private lands and minerals within the Mount St. 
Helens National Volcanic Monument. It requires the Secretary to 
acquire by exchange the mineral and geothermal interests in the 
Monument that are owned by two private entities, Burlington 
Resources Inc. and Weyerhaeuser Company.
    The bill establishes a new time frame for completion of the 
exchange, including a process to supplement or replace existing 
appraisals. It also directs the Secretary to issue monetary 
credits in exchange for the mineral and geothermal interests. 
The credits may be used toward payment for other mineral, oil, 
gas or geothermal leases. If the credits are not used within 
five years, the unused credits will be terminated.
    The August 26, 1982, Act that established the Mount St. 
Helens National Volcanic Monument required the U.S. to acquire 
all land and interests in land in the Monument, including the 
surface interests and the mineral and geothermal interests, by 
separate exchanges to be completed by November 1982 and August 
1983.
    The exchange of surface interests was completed in 1983, 
and the government and companies began the process to complete 
the mineral exchange. The Forest Service and companies reached 
a tentative agreement for the exchange of mineral rights on an 
acre-for-acre basis. The 1982 Act required the mineral exchange 
to be completed one year after enactment, by August 1983. 
However, this exchange fell apart at the last minute when the 
Bureau of Land Management disagreed over the value of certain 
lands to be exchanged and concerns that some surface management 
conflicts could arise on selected tracts.
    The parties eventually agreed to break the exchange into 
phases, first disposing of those mineral rights where the 
parties agreed on the value, and then having a third party 
appraisal completed for the remainder of the companies' 
geothermal and mineral rights. The first phase of the mineral 
exchange was completed in 1991, eight years after the statutory 
deadline. For the remaining lands, estimates of mineral and 
geothermal values ranged from a low of $250,000 to a high of 
$80 million.
    To complete the balance of the exchange, the parties agreed 
to third party appraisal procedures. An appraisal was completed 
at the end of 1991 after nine months of study and a cost of 
$55,000. Half the cost was paid for by the Forest Service and 
half was shared by the two companies. The appraised value for 
both companies' interests was between $5 million and $7 
million. The companies accepted the appraisal, even though 
outside studies had previously demonstrated much higher mineral 
and geothermal resource values. The government, however, 
rejected the appraisal and returned to its original offer which 
did not recognize any unique value attributable to the 
geothermal resource.
    In November 1997, a new appraisal of the mineral and 
geothermal interests held by Weyerhaeuser and Burlington 
Northern was completed, and after reviewing it for technical 
adequacy the Forest Service approved the appraisal in December 
1997. The Forest Service forwarded the appraisal to the two 
companies and entered negotiations to reach agreement on the 
acquisition of the mineral and geothermal resources.
    The Committee understands that in July 1998, after the 
Committee on Resources ordered H.R. 1659 favorably reported to 
the House of Representatives with amendments, the Forest 
Service and the companies culminated the long and difficult 
negotiation process and reached agreement on the value of the 
geothermal and mineral interests. The Committee understands 
that the companies have agreed to accept the Forest Service's 
valuation of $4.2 million (an amount meeting all applicable 
federal mineral appraisal standards), which sum is to be 
equally divided between the companies, as compensation for 
their remaining mineral and geothermal resources. With such 
agreement, compensation to the companies would be provided by 
monetary credits available for use in federal mineral programs, 
as provided under Section 3 of H.R. 1659. This will enable an 
efficient and timely completion of the exchange at considerable 
cost savings to the federal government. To reflect this 
agreement, the Committee intends to offer an amendment when the 
bill is considered by the House of Representatives inserting 
the agreed-upon value of the credits ($4.2 million) and 
deleting the procedures for determining the value of the 
interests to be exchanged.
    After 15 years, the mineral exchange remains unfinished. 
H.R. 1659 provides an equitable way to complete the exchange, 
originally required by the 1982 Act, by establishing a process 
based on the fair market value of the mineral and geothermal 
holdings within the monument and by utilizing credits for the 
exchange in lieu of finding federal lands with a value equal to 
the private mineral holdings. The credits may be used by the 
holder for payment of not more than 50 percent of any payments 
or royalties made to the United States. Legislation is needed 
to authorize the use of credits for the exchange.

                           Committee Action 

    H.R. 1659 was introduced on May 16, 1997, by Congresswoman 
Linda Smith (R-WA). The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
National Parks and Public Lands and the Subcommittee on Energy 
and Mineral Resources. On June 2, 1997, the bill was rereferred 
to the Subcommittees on Forest and Forest Health and Energy and 
Mineral Resources. On October 28, 1997, the Subcommittee on 
Forests and Forest Health held a hearing on H.R. 1659, where 
the Bureau of Land Management and the Forest Service testified 
on behalf of the Administration. The companies involved in the 
exchange and a geothermal resources consultant also testified. 
The Administration expressed support for the expeditious 
acquisition of the privately held mineral rights and indicated 
it would like to see the issues resolved.
    On November 4, 1997, the Subcommittee on Forest and Forest 
Health met to mark up H.R. 1659. An amendment in the nature of 
a substitute to address procedural concerns raised by the 
Administration was offered by Congressman Helen Chenoweth (R-
ID) and adopted by voice vote. As amended, the bill provides 
that the use of monetary credits do not diminish the share of 
federal mineral lease revenues, otherwise payable to States and 
local governments. It also provides that the Minerals 
Management Service shall be responsible for managing the 
monetary credits, not the Treasury Department, as originally 
specified in the bill. The bill was then ordered favorably 
reported to the Full Committee by voice vote. On June 17, 1998, 
the Full Resources Committee met to consider H.R. 1659. The 
Subcommittee on Energy and Mineral Resources was discharged 
from further consideration of the bill by unanimous consent. No 
further amendments were offered and 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 and Article IV, section 3, of the 
Constitution of the United States grant Congress the authority 
to enact H.R. 1659.

                        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. 1659. 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. 
1659 does not contain any increase or decrease in revenues or 
tax expenditures. According to the Congressional Budget Office, 
enactment of H.R. 1659 would increase direct spending by $10 
million over the 1999-2003 period. However, this level of 
spending would drop to $4.2 million after adoption of the 
proposed Committee amendment by the House of Representatives.
    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. 1659.
    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. 
1659 from the Director of the Congressional Budget Office.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 19, 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. 1659, the Mount 
St. Helens National Volanic Monument Completion Act.
    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. 1659--Mount St. Helens National Volcanic Monument Completion Act

    Summary: H.R. 1659 would specify a process for valuing 
mineral and geothermal interests within the Mount St. Helens 
National Volcanic Monument and require the Secretary of the 
Interior to acquire such interests using monetary credits.
    CBO estimates that enacting H.R. 1659 would result in a net 
increase in direct spending of about $10 million over the 1999-
2003 period. Therefore, pay-as-you-go procedures would apply. 
H.R. 1659 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Description of the bill's major provisions: The Secretary 
of Agriculture manages the Mount St. Helens National Volcanic 
Monument within the boundaries of the Gifford Pinchot National 
Forest. Under current law (Public Law 97-243), the Secretary 
may acquire mineral and geothermal interests within the 
boundary of the monument only by exchange. For several years 
the Forest Service, in cooperation with the Bureau of Land 
Magement (in the Department of the Interior), has negotiated 
with the owners of about 10,750 acres of subsurface estate 
within the monument to complete exchanges, but the parties have 
not yet agreed on the value of the subsurface interests.
    H.R. 1659 would modify the methods used by the government 
to value and acquire these interests. It would specify that the 
valuation be based on market conditions as of August 26, 1982 
(the year the monument was established), adjusted for 
inflation. The agencies could base that valuation on either an 
existing third-party appraisal done in 1991 or a new appraisal. 
If the Secretary of the Interior does not determine the value 
within 180 days of enactment, or if any holder of interests 
disagrees with the value determined by theSecretary, then a 
binding determination would be made by the United States Court of 
Federal Claims.
    Once value is determined, H.R. 1659 would require the 
Secretary of the Interior to pay for the mineral and geothermal 
interests by issuing monetary credits, rather than by exchange 
as under current law. The monetary credits could be used over a 
five-year period to pay bonuses, royalties, or rent for 
mineral, oil and gas, or geothermal leases on federal land, and 
would be transferable. H.R. 1659 provides that credits accepted 
by the Secretary of the Interior for such lease payments be 
considered as money received for the purpose of calculating 
payments to states.
    Estimated cost to the federal government: The estimated 
budgetary impact of H.R. 1659 is shown in the following table. 
The costs of this legislation fall within budget functions 300 
(natural resources and environment) and 800 (general 
government).

----------------------------------------------------------------------------------------------------------------
                                                                        By Fiscal Year, in Millions of Dollars  
                                                                    --------------------------------------------
                                                                       1999     2000     2001     2002     2003 
----------------------------------------------------------------------------------------------------------------
                                                                                                                
                                 Direct spending (including offsetting receipts)                                
                                                                                                                
Spending Under Current Law:                                                                                     
    Estimated Budget Authority.....................................        0      (a)      (a)      (a)      (a)
    Estimated Outlays..............................................        0      (a)      (a)      (a)      (a)
Proposed Changes:                                                                                               
    Estimated Budget Authority.....................................       10      (b)      (b)      (b)      (b)
    Estimated Outlays..............................................       10      (b)      (b)      (b)      (b)
Spending Under H.R. 1659:                                                                                       
    Estimated Budget Authority.....................................       10        0        0        0        0
    Estimated Outlays..............................................       10        0        0        0        0
----------------------------------------------------------------------------------------------------------------
a Costs less than $500,000.                                                                                     
b Savings less than $500,000.                                                                                   
Note: Implementing H.R. 1659 also would increase discretionary spending in 1999, but we estimate the cost would 
  be insignificant.                                                                                             

    Basis of estimate: CBO estimates that enacting H.R. 1659 
would result in a net increase in direct spending of about $10 
million over the 1999-2003 period. We estimate that any 
increase in spending subject to appropriation would be 
insignificant.
    Direct spending: Under current law, the Forest Service has 
appraised the subsurface interests based on current market 
conditions (rather than on their value in 1982, when the 
monument was created) and estimates them to have a fair market 
value ranging from about $2 million to about $4 million. CBO 
assumes that, under current law, the federal government would 
likely acquire these interests through an exchange in which the 
private parties would obtain the rights to other federal 
property of equal value. From a budgetary perspective, such an 
exchange would result in a loss of offsetting receipts from 
royalties and rental payments that otherwise would have been 
collected from leasing the federal interests offered in the 
exchange. Such income usually represents only a fraction of the 
market value, and is collected over the life of the project, 
which can span 10 years or more. We estimate that lost income 
to the government under current law would total less than $1 
million over the 1999-2003 period, net of payments to states.
    Under this bill, the federal government would award 
monetary credits, which are equivalent to cash, for the full 
market value of the property. CBO estimates that, by specifying 
that the value for the interests be determined as of 1982 (and 
adjusted for inflation), H.R. 1659 would raise the cost of the 
property to be acquired. Based on a range of estimated 1982 
values from the private interest holders, and adjusted for 
inflation as provided in the bill, CBO estimates that the 
private interest holders would receive monetary credits valued 
at about $10 million.
    The value of monetary credits counts as direct spending in 
the year they are issued and as receipts in the years in which 
they are redeemed. If the credits displace cash payments that 
otherwise would have been received by the government, the use 
of the credits results in a corresponding loss of receipts. For 
the purposes of this estimate, we assume that the credits would 
be issued in fiscal year 1999 and redeemed within five years. 
CBO estimates that such credits would displace an equal amount 
of cash payments that private parties otherwise would have made 
for federal leases. Hence, we estimate that implementing this 
bill would increase direct spending by $10 million in 1999 and 
would have no significant budgetary impact in subsequent years.
    Spending subject to appropriation: H.R. 1659 provides that 
the Secretary of the Interior pay for any new appraisal. Based 
on information from the Forest Service, CBO estimates that 
conducting a reappraisal would cost less than $50,000 in fiscal 
year 1999.
    Pay-as-you-go considerations. Section 252 of the Balanced 
Budget and Emergency Deficit Control Act sets up pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts. The net changes in outlays that are subject to pay-
as-you-go procedures are shown in the following table. For the 
purposes of enforcing pay-as-you-go procedures, only the 
effects in the current year, the budget year, and the 
succeeding four years are counted. CBO estimates that enacting 
H.R. 1659 would result in a net increase in direct spending 
totaling about $10 million over the 1999-2008 period.

                                                        [By Fiscal Year, in Millions of Dollars]                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   1998    1999    2000    2001    2002    2003    2004    2005    2006    2007    2008 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays                                                     0      10       0       0       0       0       0       0       0       0       0
Changes in receipts                                                                                                                                     
(10) Not applicable                                                                                                                                     
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector: H.R. 1659 contains no 
intergovernmental or private-sector mandates as defined in UMRA 
and would impose no costs on state, local, or tribal 
governments.
    Previous CBO estimate: On June 5, 1998, CBO prepared a cost 
estimate for S. 638, the Mount St. Helens National Volcanic 
Monument Completion Act, as ordered reported by the Senate 
Committee on Energy and Natural Resources on May 13, 1998. This 
version of H.R. 1659 is identical to that bill, and the 
estimated costs are the same.
    Estimate prepared by: Victoria V. Heid.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    H.R. 1659 contains no unfunded mandates.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                         ACT OF AUGUST 26, 1982

AN ACT To designate the Mount St. Helens National Volcanic Monument in 
the State of Washington, and for other purposes

           *       *       *       *       *       *       *


                              acquisition

  Sec. 3. (a) The Secretary shall acquire all lands and 
interests in lands within the boundaries of the Monument by 
donation, exchange in accordance with this Act or other 
provisions of law, or purchase with donated or appropriated 
funds, except as provided in subsection (c) [and except that 
the Secretary may acquire mineral and geothermal interests only 
by exchange. It is the sense of the Congress that in the case 
of mineral and geothermal interests such exchanges should be 
completed within one year after the date of enactment of this 
Act]. Any lands owned by the State of Washington or any 
political subdivision thereof may be acquired only by exchange. 
Those mining claims in the Green River-Polar Star area shall 
not be acquired without the consent of the owner.

           *       *       *       *       *       *       *

  (g) Expeditious Completion of Mineral and Geothermal 
Interests.--
          (1) Definition of holder.--In this subsection, the 
        term ``holder'' means a company, or its successor, 
        referred to in subsection (c).
          (2) In general.--Within the period described in 
        paragraph (7), the Secretary of the Interior shall 
        acquire by exchange the mineral and geothermal 
        interests in the Monument of each holder.
          (3) Monetary credits.--
                  (A) Issuance.--In exchange for the mineral 
                and geothermal interests acquired by the 
                Secretary of the Interior from a holder under 
                paragraph (2), the Secretary of the Interior 
                shall issue to the holder monetary credits that 
                may be exercised by the holder for payment of--
                          (i) not more than 50 percent of the 
                        bonus or other payments made by 
                        successful bidders in any sales of 
                        mineral, oil, gas, or geothermal leases 
                        under the Mineral Leasing Act (30 
                        U.S.C. 181 et seq.), the Outer 
                        Continental Shelf Lands Act (43 U.S.C. 
                        1331 et seq.), or the Geothermal Steam 
                        Act of 1970 (30 U.S.C. 1001 et seq.); 
                        or
                          (ii) not more than 50 percent of any 
                        royalty, rental, or advance royalty 
                        payment made to the United States to 
                        maintain any mineral, oil or gas, or 
                        geothermal lease issued under the Acts 
                        listed in clause (i).
                  (B) Value of credits.--The credits issued 
                under subparagraph (A) shall equal the fair 
                market value of all mineral and geothermal 
                interests conveyed in the exchange as 
                determined under paragraph (4).
                  (C) Acceptance of credits.--The Secretary of 
                the Interior shall accept credits issued under 
                subparagraph (A) in the same manner as cash for 
                the payments described in subparagraph (A). The 
                use and exercise of the credits shall be 
                subject to the laws (including regulations) 
                governing such payments, to the extent the laws 
                are consistent with this subsection.
                  (D) Treatment of credits for distribution to 
                states.--All amounts in the form of credits 
                accepted by the Secretary of the Interior under 
                subparagraph (C) for the payments described in 
                subparagraph (A) shall be considered to be 
                money received for the purpose of section 35 of 
                the Mineral Leasing Act (30 U.S.C. 191) and 
                section 20 of the Geothermal Steam Act of 1970 
                (30 U.S.C. 1019).
          (4) Valuation of interests.--
                  (A) In general.--Not later than 120 days 
                after the date of enactment of this subsection, 
                the mineral and geothermal interests to be 
                conveyed by each holder in the exchanges 
                required by paragraph (2) shall be valued by 
                one of the following methods, as selected by 
                the Secretary of the Interior:
                          (i) Use of appraisal report.--The 
                        1982 value established by the report of 
                        the third party appraisal completed on 
                        September 11, 1991, shall be adjusted 
                        to reflect changes in the consumer 
                        price index for all urban consumers 
                        published by the Department of Labor as 
                        of the date on which the exchange is to 
                        be consummated pursuant to paragraph 
                        (7), or such other value as shall be 
                        mutually agreed to by the Secretary of 
                        the Interior and the holders not later 
                        than 30 days after the date of 
                        enactment of this subsection.
                          (ii) New appraisal.--
                                  (I) Selection of appraiser.--
                                Not later than 30 days after 
                                the date of enactment of this 
                                subsection, the Secretary of 
                                the Interior and the holders 
                                shall mutually agree on the 
                                selection of a qualified 
                                appraiser to conduct an 
                                appraisal of the mineral and 
                                geothermal interests.
                                  (II) No agreement on 
                                appraiser.--If no appraiser is 
                                mutually agreed to under 
                                subclause (I), not later than 
                                60 days after the date of 
                                enactment of this subsection--
                                          (aa) the Secretary of 
                                        the Interior and the 
                                        holders shall each 
                                        designate a qualified 
                                        appraiser; and
                                          (bb) the two 
                                        designated appraisers 
                                        shall select a third 
                                        qualified appraiser to 
                                        perform the appraisal 
                                        with the advice and 
                                        assistance of the 
                                        designated appraisers 
                                        and in accordance with 
                                        the instructions that 
                                        were mutually agreed on 
                                        for the September 11, 
                                        1991, third part 
                                        appraisal.
                                  (III) Date of valuation.--The 
                                value of the mineral and 
                                geothermal interests to be 
                                conveyed by each holder shall 
                                be calculated as of August 26, 
                                1982, adjusted to reflect 
                                changes in the consumer price 
                                index for all urban consumers 
                                published by the Department of 
                                Labor as of the date on which 
                                the exchange is to be 
                                consummated pursuant to 
                                paragraph (7).
                                  (IV) Costs.--The Secretary of 
                                the Interior shall bear the 
                                costs of the process 
                                established by this clause.
                  (B) Timely appraisal report.--The appraisal 
                report resulting from subparagraph (A) shall be 
                presented to the Secretary of the Interior 
                timely to permit the Secretary of the Interior 
                to determine the value of the mineral and 
                geothermal interests to be conveyed by each 
                holder. Not later than the date that is 180 
                days after the date of enactment of this 
                subsection, the Secretary of the Interior shall 
                notify each holder of the determination.
                  (C) Failure of process.--If the Secretary of 
                the Interior fails to make a determination 
                under subparagraph (B) by the date that is 180 
                days after the date of enactment of this 
                subsection or if any holder does not agree with 
                the value determined by the Secretary of the 
                Interior under subparagraph (B), one or more of 
                the holders may petition the United States 
                Court of Federal Claims for a determination of 
                the value of the mineral and geothermal 
                interests to be conveyed by the holders in 
                accordance with this subsection. Subject to the 
                right of appeal, a determination by the Court 
                shall be binding for purposes of this 
                subsection on all parties.
          (5) Exchange account.--
                  (A) In general.--Notwithstanding any other 
                provision of law, not later than 30 days after 
                the completion of each exchange with a holder 
                required by this subsection, the Secretary of 
                the Interior shall establish, with the Minerals 
                Management Service of the Department of the 
                Interior, an exchange account for the holder 
                for monetary credits described in paragraph 
                (3).
                  (B) Initial balance.--The initial balance of 
                credits in each holder's account shall be equal 
                to the value as determined under paragraph (4) 
                of the mineral and geothermal interests 
                conveyed by the holder in the exchange.
                  (C) Use of credits.--The balance of credits 
                in a holder's account shall be available to the 
                holder or its assigns for the purposes of 
                paragraph (3). The Secretary of the Interior 
                shall adjust the balance of credits in the 
                account to reflect payments made pursuant to 
                paragraph (3).
                  (D) Transfer of credits.--
                          (i) In general.--A holder may 
                        transfer or sell any credits in the 
                        holder's account to another person.
                          (ii) Use of transferred credits.--
                        Credits transferred under clause (i) 
                        may be used in accordance with this 
                        subsection only by a person that is 
                        qualified to bid on, or that holds, a 
                        mineral, oil, or gas lease under the 
                        Mineral Leasing Act (30 U.S.C. 181 et 
                        seq.), the Outer Continental Shelf 
                        Lands Act (43 U.S.C. 1331 et seq.), or 
                        the Geothermal Steam Act of 1970 (30 
                        U.S.C. 1001 et seq.).
                          (iii) Notification.--A holder shall 
                        notify the Secretary of the Interior of 
                        any transfer or sale under this 
                        subparagraph promptly after the 
                        transfer or sale.
                  (E) Time limit on use of credits.--On the 
                date that is 5 years after an account is 
                created under subparagraph (A), the Secretary 
                of the Interior shall terminate the account and 
                any remaining credits in the account shall 
                become unusable.
          (6) Title to interests.--On the date of the 
        establishment of an exchange account for a holder under 
        paragraph (5)(A), title to any mineral and geothermal 
        interests that are held by the holder and are to be 
        acquired by the Secretary of the Interior under 
        paragraph (2) shall transfer to the United States.
          (7) Completion of exchanges.--The Secretary of the 
        Interior shall complete the exchanges under paragraph 
        (2) not later than 180 days after the date of enactment 
        of this subsection or as soon as practicable after 
        completion of the process described in paragraph 
        (4)(C).
                                 
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