[House Report 105-714]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-714
_______________________________________________________________________


 
   DUTCH JOHN FEDERAL PROPERTY DISPOSITION AND ASSISTANCE ACT OF 1998

_______________________________________________________________________


 September 15, 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. 2108]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2108) to dispose of certain Federal properties located in 
Dutch John, Utah, and to assist the local government in the 
interim delivery of basic services to the Dutch John community, 
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; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Dutch John Federal 
Property Disposition and Assistance Act of 1998''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Disposition of certain lands and properties.
Sec. 5. Revocation of withdrawals.
Sec. 6. Transfers of jurisdiction.
Sec. 7. Surveys.
Sec. 8. Planning.
Sec. 9. Appraisals.
Sec. 10. Disposal of properties.
Sec. 11. Valid existing rights.
Sec. 12. Cultural resources.
Sec. 13. Transition of services to local government control.
Sec. 14. Authorization of appropriations.

SEC. 2. FINDINGS AND PURPOSES.

  (a) Findings.--Congress finds that--
          (1)(A) Dutch John, Utah, was founded by the Secretary of the 
        Interior in 1958 on Bureau of Reclamation land as a community 
        to house personnel, administrative offices, and equipment for 
        project construction and operation of the Flaming Gorge Dam and 
        Reservoir as authorized by the Act of April 11, 1956 (70 Stat. 
        105, chapter 203; 43 U.S.C. 620 et seq.); and
          (B) permanent structures (including houses, administrative 
        offices, equipment storage and maintenance buildings, and other 
        public buildings and facilities) were constructed and continue 
        to be owned and maintained by the Secretary of the Interior;
          (2)(A) Bureau of Reclamation land surrounding the Flaming 
        Gorge Reservoir (including the Dutch John community) was 
        included within the boundaries of the Flaming Gorge National 
        Recreation Area in 1968 under Public Law 90-540 (16 U.S.C. 460v 
        et seq.);
          (B) Public Law 90-540 assigned responsibility for 
        administration, protection, and development of the Flaming 
        Gorge National Recreation Area to the Secretary of Agriculture 
        and provided that lands and waters needed or used for the 
        Colorado River Storage Project would continue to be 
        administered by the Secretary of the Interior; and
          (C) most structures within the Dutch John community 
        (including the schools and public buildings within the 
        community) occupy lands administered by the Secretary of 
        Agriculture;
          (3)(A) the Secretary of Agriculture and the Secretary of the 
        Interior are unnecessarily burdened with the cost of continuing 
        to provide basic services and facilities and building 
        maintenance and with the administrative costs of operating the 
        Dutch John community; and
          (B) certain structures and lands are no longer essential to 
        management of the Colorado River Storage Project or to 
        management of the Flaming Gorge National Recreation Area;
          (4)(A) residents of the community are interested in 
        purchasing the homes they currently rent from the Secretary of 
        the Interior and the land on which the homes are located;
          (B) Daggett County, Utah, is interested in reducing the 
        financial burden the County experiences in providing local 
        government support services to a community that produces little 
        direct tax revenue because of Federal ownership; and
          (C) a withdrawal of the role of the Federal Government in 
        providing basic direct community services to Dutch John would 
        require local government to provide the services at a 
        substantial cost;
          (5)(A) residents of the Dutch John community are interested 
        in self-government of the community; and
          (B) with growing demands for additional commercial recreation 
        services for visitors to the Flaming Gorge National Recreation 
        Area and Ashley National Forest, there are opportunities for 
        private economic development, but few private lands are 
        available for the services; and
          (6) the privatization and disposal to local government of 
        certain lands in and surrounding Dutch John would be in the 
        public interest.
  (b) Purposes.--The purposes of this Act are--
          (1) to privatize certain lands in and surrounding Dutch John, 
        Utah;
          (2) to transfer jurisdiction of certain Federal property 
        between the Secretary of Agriculture and the Secretary of the 
        Interior;
          (3) to improve the Flaming Gorge National Recreation Area;
          (4) to dispose of certain residential units, public 
        buildings, and facilities;
          (5) to provide interim financial assistance to local 
        government to defray the cost of providing basic governmental 
        services;
          (6) to achieve efficiencies in operation of the Flaming Gorge 
        Dam and Reservoir and the Flaming Gorge National Recreation 
        Area;
          (7) to reduce long-term Federal outlays; and
          (8) to serve the interests of the residents of Dutch John and 
        Daggett County, Utah, and the general public.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Secretary of agriculture.--The term ``Secretary of 
        Agriculture'' means the Secretary of Agriculture, acting 
        through the Chief of the Forest Service.
          (2) Secretary of the interior.--The term ``Secretary of the 
        Interior'' means the Secretary of the Interior, acting through 
        the Commissioner of the Bureau of Reclamation.

SEC. 4. DISPOSITION OF CERTAIN LANDS AND PROPERTIES.

  (a) In General.--Lands, structures, and community infrastructure 
facilities within or associated with Dutch John, Utah, that have been 
identified by the Secretary of Agriculture or the Secretary of the 
Interior as unnecessary for support of the agency of the respective 
Secretary shall be transferred or disposed of in accordance with this 
Act.
  (b) Land Description.--Except as provided in subsection (e), the 
Secretary of Agriculture and the Secretary of the Interior shall 
dispose of (in accordance with this Act) approximately 2,450 acres 
within or associated with the Dutch John, Utah, community in the NW\1/
4\ NW\1/4\, S\1/2\ NW\1/4\, and S\1/2\ of Section 1, the S\1/2\ of 
Section 2, 10 acres more or less within the NE\1/4\ SW\1/4\ of Section 
3, Sections 11 and 12, the N\1/2\ of Section 13, and the E\1/2\ NE\1/4\ 
of Section 14 of Township 2 North, Range 22 East, Salt Lake Base and 
Meridian, that have been determined to be available for transfer by the 
Secretary of Agriculture and the Secretary of the Interior, 
respectively.
  (c) Infrastructure Facilities and Land.--Except as provided in 
subsection (e), the Secretary of the Interior shall dispose of (in 
accordance with this Act) community infrastructure facilities and land 
that have been determined to be available for transfer by the Secretary 
of the Interior, including the following:
          (1) The fire station, sewer systems, sewage lagoons, water 
        systems (except as provided in subsection (e)(3)), old post 
        office, electrical and natural gas distribution systems, 
        hospital building, streets, street lighting, alleys, sidewalks, 
        parks, and community buildings located within or serving Dutch 
        John, including fixtures, equipment, land, easements, rights-
        of-way, or other property primarily used for the operation, 
        maintenance, replacement, or repair of a facility referred to 
        in this paragraph.
          (2) The Dutch John Airport, comprising approximately 25 
        acres, including runways, roads, rights-of-way, and 
        appurtenances to the Airport, subject to such monitoring and 
        remedial action by the United States as is necessary.
          (3) The lands on which are located the Dutch John public 
        schools, which comprise approximately 10 acres.
  (d) Other Properties and Facilities.--The Secretary of Agriculture 
and the Secretary of the Interior shall dispose of (in accordance with 
this Act) the other properties and facilities that have been determined 
to be available for transfer or disposal by the Secretary of 
Agriculture and the Secretary of the Interior, respectively, including 
the following:
          (1) Certain residential units occupied on the date of 
        enactment of this Act, as determined by the Secretary of the 
        Interior.
          (2) Certain residential units unoccupied on the date of 
        enactment of this Act, as determined by the Secretary of the 
        Interior.
          (3) Lots within the Dutch John community that are occupied on 
        the date of enactment of this Act by privately owned modular 
        homes under lease agreements with the Secretary of the 
        Interior.
          (4) Unoccupied platted lots within the Dutch John community.
          (5) The land, comprising approximately 3.8 acres, on which is 
        located the Church of Jesus Christ of Latter Day Saints, within 
        Block 9, of the Dutch John community.
          (6) The lands for which special use permits, easements, or 
        rights-of-way for commercial uses have been issued by the 
        Forest Service.
          (7) The lands on which are located the offices, 3 employee 
        residences, warehouses, and facilities of the Utah Division of 
        Wildlife Resources, as described in the survey required under 
        section 7, including yards and land defined by fences in 
        existence on the date of enactment of this Act.
          (8) The Dutch John landfill site, subject to such monitoring 
        and remedial action by the United States as is necessary, with 
        responsibility for monitoring and remediation being shared by 
        the Secretary of Agriculture and the Secretary of the Interior 
        proportionate to their historical use of the site.
          (9) Such fixtures and furnishing in existence and in place on 
        the date of enactment of this Act as are mutually determined by 
        Daggett County, the Secretary of Agriculture, and the Secretary 
        of the Interior to be necessary for the full use of properties 
        or facilities disposed of under this Act.
          (10) Such other properties or facilities at Dutch John that 
        the Secretary of Agriculture or the Secretary of the Interior 
        determines are not necessary to achieve the mission of the 
        respective Secretary and the disposal of which would be 
        consistent with this Act.
  (e) Retained Properties.--Except to the extent the following 
properties are determined by the Secretary of Agriculture or the 
Secretary of the Interior to be available for disposal, the Secretary 
of Agriculture and the Secretary of the Interior shall retain for their 
respective use the following:
          (1) All buildings and improvements located within the 
        industrial complex of the Bureau of Reclamation, including the 
        maintenance shop, 40 industrial garages, 2 warehouses, the 
        equipment storage building, the flammable equipment storage 
        building, the hazardous waste storage facility, and the 
        property on which the buildings and improvements are located.
          (2) 17 residences under the jurisdiction of the Secretary of 
        the Interior and the Secretary of Agriculture, of which--
                  (A) 15 residences shall remain under the jurisdiction 
                of the Secretary of the Interior; and
                  (B) 2 residences shall remain under the jurisdiction 
                of the Secretary of Agriculture.
          (3) The Dutch John water system raw water supply line and 
        return line between the power plant and the water treatment 
        plant, pumps and pumping equipment, and any appurtenances and 
        rights-of-way to the line and other facilities, with the 
        retained facilities to be operated and maintained by the United 
        States with pumping costs and operation and maintenance costs 
        of the pumps to be included as a cost to Daggett County in a 
        water service contract.
          (4) The heliport and associated real estate, consisting of 
        approximately 20 acres, which shall remain under the 
        jurisdiction of the Secretary of Agriculture.
          (5) The Forest Service warehouse complex and associated real 
        estate, consisting of approximately 2 acres, which shall remain 
        under the jurisdiction of the Secretary of Agriculture.
          (6) The Forest Service office complex and associated real 
        estate, which shall remain under the jurisdiction of the 
        Secretary of Agriculture.
          (7) The United States Post Office, pursuant to Forest Service 
        Special Use Permit No. 1073, which shall be transferred to the 
        jurisdiction of the United States Postal Service pursuant to 
        section 6(d).

SEC. 5. REVOCATION OF WITHDRAWALS.

  In the case of lands and properties transferred under section 4, 
effective on the date of transfer to the Secretary of the Interior (if 
applicable) or conveyance by quitclaim deed out of Federal ownership, 
authorization for each of the following withdrawals is revoked:
          (1) The Public Water Reserve No. 16, Utah No. 7, dated March 
        9, 1914.
          (2) The Secretary of the Interior Order dated October 20, 
        1952.
          (3) The Secretary of the Interior Order dated July 2, 1956, 
        No. 71676.
          (4) The Flaming Gorge National Recreation Area, dated October 
        1, 1968, established under Public Law 90-540 (16 U.S.C. 460v et 
        seq.), as to lands described in section 4(b).
          (5) The Dutch John Administrative Site, dated December 12, 
        1951 (PLO 769, U-0611).

SEC. 6. TRANSFERS OF JURISDICTION.

  (a) Transfers From the Secretary of Agriculture.--Except for 
properties retained under section 4(e), all lands designated under 
section 4 for disposal shall be--
          (1) transferred from the jurisdiction of the Secretary of 
        Agriculture to the Secretary of the Interior and, if 
        appropriate, the United States Postal Service; and
          (2) removed from inclusion in the Ashley National Forest and 
        the Flaming Gorge National Recreation Area.
  (b) Exchange of Jurisdiction Between Interior and Agriculture.--
          (1) Transfer to secretary of agriculture.--The Secretary of 
        the Interior shall transfer to the Secretary of Agriculture 
        administrative jurisdiction over certain lands and interests in 
        lands, consisting of approximately 2,167 acres in Duchesne and 
        Wasatch Counties, Utah, which were acquired by theSecretary of 
the Interior for the Central Utah Project, as depicted on the following 
maps:
                  (A) The map entitled ``The Dutch John Townsite, 
                Ashley National Forest, Lower Stillwater'', dated 
                February 1997.
                  (B) The map entitled ``The Dutch John Townsite, 
                Ashley National Forest, Red Hollow (Diamond 
                Properties)'', dated February 1997.
                  (C) The map entitled ``The Dutch John Townsite, 
                Ashley National Forest, Coal Hollow (Current Creek 
                Reservoir)'', dated February 1997.
          (2) Transfer to secretary of the interior.--The Secretary of 
        Agriculture shall transfer to the Secretary of the Interior 
        administrative jurisdiction over certain lands and interests in 
        lands, consisting of approximately 2,450 acres in the Ashley 
        National Forest, as depicted on the map entitled ``Ashley 
        National Forest, Lands to be Transferred to the Bureau of 
        Reclamation (BOR) from the Forest Service'', dated February 
        1997.
          (3) Effect of exchange.--
                  (A) National forests.--The lands and interests in 
                land transferred to the Secretary of Agriculture under 
                paragraph (1) shall become part of the Ashley or Uinta 
                National Forest, as appropriate. The boundaries of each 
                of the National Forests are hereby adjusted as 
                appropriate to reflect the transfers of administrative 
                jurisdiction.
                  (B) Management.--The Secretary of Agriculture shall 
                manage the lands and interests in land transferred to 
                the Secretary of Agriculture under paragraph (1) in 
                accordance with the Act of March 1, 1911 (commonly 
                known as the ``Weeks Law'') (36 Stat. 962, chapter 186; 
                16 U.S.C. 515 et seq.), and other laws (including rules 
                and regulations) applicable to the National Forest 
                System.
                  (C) Wildlife mitigation.--As of the date of the 
                transfer under paragraph (1), the wildlife mitigation 
                requirements of section 8 of the Act of April 11, 1956 
                (43 U.S.C. 620g), shall be deemed to be met.
                  (D) Adjustment of boundaries.--This paragraph does 
                not limit the authority of the Secretary of Agriculture 
                to adjust the boundaries of the Ashley or Uinta 
                National Forest pursuant to section 11 of the Act of 
                March 1, 1911 (commonly known as the ``Weeks Law'') (36 
                Stat. 963, chapter 186; 16 U.S.C. 521).
          (4) Land and water conservation fund.--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 Ashley and Uinta 
        National Forests, as adjusted under this section, shall be 
        considered to be the boundaries of the Forests as of January 1, 
        1965.
  (c) Federal Improvements.--The Secretary of the Interior shall 
transfer to the Secretary of Agriculture jurisdiction over Federal 
improvements on the lands transferred to the Secretary of Agriculture 
under this section.
  (d) Transfer to United States Postal Service.--The Secretary of 
Agriculture shall transfer to the United States Postal Service 
administrative jurisdiction over certain lands and interests in land 
subject to Forest Service Special Use Permit No. 1073, containing 
approximately 0.34 acres.
  (e) Withdrawals.--Notwithstanding subsection (a), lands retained by 
the Federal Government under this Act shall continue to be withdrawn 
from mineral entry under the United States mining laws.

SEC. 7. SURVEYS.

  The Secretary of the Interior shall survey or resurvey all or 
portions of the Dutch John community as necessary--
          (1) to accurately describe parcels identified under this Act 
        for transfer among agencies, for Federal disposal, or for 
        retention by the United States; and
          (2) to facilitate future recordation of title.

SEC. 8. PLANNING.

  (a) Responsibility.--In cooperation with the residents of Dutch John, 
the Secretary of Agriculture, and the Secretary of the Interior, 
Daggett County, Utah, shall be responsible for developing a land use 
plan that is consistent with maintenance of the values of the land that 
is adjacent to land that remains under the jurisdiction of the 
Secretary of Agriculture or Secretary of the Interior under this Act.
  (b) Cooperation.--The Secretary of Agriculture and the Secretary of 
the Interior shall cooperate with Daggett County in ensuring that 
disposal processes are consistent with the land use plan developed 
under subsection (a) and with this Act.

SEC. 9. APPRAISALS.

  (a) Requirements.--
          (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of the Interior shall 
        conduct appraisals to determine the fair market value of 
        properties designated for disposal under paragraphs (1), (2), 
        (3), (5), and (7) of section 4(d).
          (2) Unoccupied platted lots.--Not later than 90 days after 
        the date of receipt by the Secretary of the Interior from an 
        eligible purchaser of a written notice of intent to purchase an 
        unoccupied platted lot referred to in section 4(d)(4), the 
        Secretary of the Interior shall conduct an appraisal of the 
        lot.
          (3) Special use permits.--
                  (A) In general.--Not later than 90 days after the 
                date of receipt by the Secretary of the Interior from a 
                permit holder of a written notice of intent to purchase 
                a property described in section 10(g), the Secretary of 
                the Interior shall conduct an appraisal of the 
                property.
                  (B) Improvements and alternative land.--An appraisal 
                to carry out subparagraph (A) may include an appraisal 
                of the value of permit holder improvements and 
                alternative land in order to conduct an in-lieu land 
                sale.
          (4) Occupied parcels.--In the case of an occupied parcel, an 
        appraisal under this subsection shall include an appraisal of 
        the full fee value of the occupied lot or land parcel and the 
        value of residences, structures, facilities, and existing, in-
        place federally owned fixtures and furnishings necessary for 
        full use of the property.
          (5) Unoccupied parcels.--In the case of an unoccupied parcel, 
        an appraisal under this subsection shall consider potential 
        future uses of the parcel that are consistent with the land use 
        plan developed under section 8(a) (including the land use map 
        of the plan) and with subsection (c).
          (6) Funding.--Funds for appraisals conducted under this 
        section shall be derived from the Upper Colorado River Basin 
        Fund authorized by section 5 of the Act of April 11, 1956 (70 
        Stat. 107, chapter 203; 43 U.S.C. 620d).
  (b) Reductions for Improvements.--An appraisal of a residence or a 
structure or facility leased for private use under this section shall 
deduct the contributory value of improvements made by the current 
occupant or lessee if the occupant or lessee provides reasonable 
evidence of expenditure of money or materials in making the 
improvements.
  (c) Current Use.--An appraisal under this section shall consider the 
current use of a property (including the use of housing as a community 
residence) and avoid uncertain speculation as to potential future use.
  (d) Review.--
          (1) In general.--The Secretary of the Interior shall make an 
        appraisal under this section available for review by a current 
        occupant or lessee.
          (2) Additional information or appeal.--
                  (A) In general.--The current occupant or lessee may 
                provide additional information, or appeal the findings 
                of the appraisal in writing, to the Upper Colorado 
                Regional Director of the Bureau of Reclamation.
                  (B) Action by secretary of the interior.--The 
                Secretary of the Interior--
                          (i) shall consider the additional information 
                        or appeal; and
                          (ii) may conduct a second appraisal if the 
                        Secretary determines that a second appraisal is 
                        necessary.
  (e) Inspection.--The Secretary of the Interior shall provide 
opportunities for other qualified, interested purchasers to inspect 
completed appraisals under this section.

SEC. 10. DISPOSAL OF PROPERTIES.

  (a) Conveyances.--
          (1) Patents.--The Secretary of the Interior shall dispose of 
        properties identified for disposal under section 4, other than 
        properties retained under section 4(e), without regard to law 
        governing patents.
          (2) Condition and land.--Except as otherwise provided in this 
        Act, conveyance of a building, structure, or facility under 
        this Act shall be in its current condition and shall include 
        the land parcel on which the building, structure, or facility 
        is situated.
          (3) Fixtures and furnishings.--An existing and in-place 
        fixture or furnishing necessary for the full use of a property 
        or facility under this Act shall be conveyed along with the 
        property.
          (4) Maintenance.--
                  (A) Before conveyance.--Before property is conveyed 
                under this Act, the Secretary of the Interior shall 
                ensure reasonable and prudent maintenance and proper 
                care of the property.
                  (B) After conveyance.--After property is conveyed to 
                a recipient under this Act, the recipient shall be 
                responsible for--
                          (i) maintenance and proper care of the 
                        property; and
                          (ii) any contamination of the property.
  (b) Infrastructure Facilities and Land.--Infrastructure facilities 
and land described in paragraphs (1) and (2) of section 4(c) shall be 
conveyed, without consideration, to Daggett County, Utah.
  (c) School.--The lands on which are located the Dutch John public 
schools described in section 4(c)(3) shall be conveyed, without 
consideration, to the Daggett County School District.
  (d) Utah Division of Wildlife Resources.--Lands on which are located 
the offices, 3 employee residences, warehouses, and facilities of the 
Utah Division of Wildlife Resources described in section 4(d)(7) shall 
be conveyed, without consideration, to the Division.
  (e) Residences and Lots.--
          (1) In general.--
                  (A) Fair market value.--A residence and occupied 
                residential lot to be disposed of under this Act shall 
                be sold for the appraised fair market value.
                  (B) Notice.--The Secretary of the Interior shall 
                provide local general public notice, and written notice 
                to lessees and to current occupants of residences and 
                of occupied residential lots for disposal, of the 
                intent to sell properties under this Act.
          (2) Purchase of residences or lots by lessees.--
                  (A) In general.--Subject to subparagraph (B), the 
                Secretary of the Interior shall provide a holder of a 
                current lease from the Secretary for a residence to be 
                sold under paragraph (1) or (2) of section 4(d) or for 
                a residential lot occupied by a privately owned 
                dwelling described in section 4(d)(3) a period of 180 
                days beginning on the date of the written notice of the 
                Secretary of intent of the Secretary to sell the 
                residence or lot, to execute a contract with the 
                Secretary of the Interior to purchase the residence or 
                lot for the appraised fair market value.
                  (B) Notice of intent to purchase.--To obtain the 
                protection of subparagraph (A), the lessee shall, 
                during the 30-day period beginning on the date of 
                receipt of the notice referred to in subparagraph (A), 
                notify the Secretary in writing of the intent of the 
                lessee to purchase the residence or lot.
                  (C) No notice or purchase contract.--If no written 
                notification of intent to purchase is received by the 
                Secretary in accordance with subparagraph (B) or if a 
                purchase contract has not been executed in accordance 
                with subparagraph (A), the residence or lot shall 
                become available for purchase by other persons under 
                paragraph (3).
          (3) Purchase of residences or lots by other persons.--
                  (A) Eligibility.--If a residence or lot becomes 
                available for purchase under paragraph (2)(C), the 
                Secretary of the Interior shall make the residence or 
                lot available for purchase by--
                          (i) a current authorized occupant of the 
                        residence to be sold;
                          (ii) a holder of a current reclamation lease 
                        for a residence within Dutch John;
                          (iii) an employee of the Bureau of 
                        Reclamation or the Forest Service who resides 
                        in Dutch John; or
                          (iv) a Federal or non-Federal employee in 
                        support of a Federal agency who resides in 
                        Dutch John.
                  (B) Priority.--
                          (i) Seniority.--Priority for purchase of 
                        properties available for purchase under this 
                        paragraph shall be by seniority of reclamation 
                        lease or residency in Dutch John.
                          (ii) Priority list.--The Secretary of the 
                        Interior shall compile a priority list of 
                        eligible potential purchasers that is based on 
                        the length of continuous residency in Dutch 
                        John or the length of a continuous residence 
                        lease issued by the Bureau of Reclamation in 
                        Dutch John, with the highest priority provided 
                        for purchasers with the longest continuous 
                        residency or lease.
                          (iii) Interruptions.--If a continuous 
                        residency or lease was interrupted, the 
                        Secretary shall consider only that most recent 
                        continuous residency or lease.
                          (iv) Other factors.--In preparing the 
                        priority list, the Secretary shall not consider 
                        a factor (including agency employment or 
                        position) other than the length of the current 
                        residency or lease.
                          (v) Disputes.--A potential purchaser may file 
                        a written appeal over a dispute involving 
                        eligibility or ranking on the priority list 
                        with the Secretary of the Interior, acting 
                        through the Upper Colorado Regional Director of 
                        the Bureau of Reclamation. The Secretary, 
                        acting through the Regional Director, shall 
                        consider the appeal and resolve the dispute.
                  (C) Notice.--The Secretary of the Interior shall 
                provide general public notice and written notice by 
                certified mail to eligible purchasers that specifies--
                          (i) properties available for purchase under 
                        this paragraph;
                          (ii) the appraised fair market value of the 
                        properties;
                          (iii) instructions for potential eligible 
                        purchasers; and
                          (iv) any purchase contract requirements.
                  (D) Notice of intent to purchase.--An eligible 
                purchaser under this paragraph shall have a period of 
                90 days after receipt of written notification to submit 
                to the Secretary of the Interior a written notice of 
                intent to purchase a specific available property at the 
                listed appraised fair market value.
                  (E) Notice of eligibility of highest eligible 
                purchaser to purchase property.--The Secretary of the 
                Interior shall provide notice to the potential 
                purchaser with the highest eligible purchaser priority 
                for each property that the purchaser will have the 
                first opportunity to execute a sales contract and 
                purchase the property.
                  (F) Availability to other purchasers on priority 
                list.--If no purchase contract is executed for a 
                property by the highest priority purchaser within the 
                180 days after receipt of notice under subparagraph 
                (E), the Secretary of the Interior shall make the 
                property available to other purchasers listed on the 
                priority list.
                  (G) Limitation on number of properties.--No household 
                may purchase more than 1 residential property under 
                this paragraph.
          (4) Residual property to county.--If a residence or lot to be 
        disposed of under this Act is not purchased in accordance with 
        paragraph (2) or (3) within 2 years after providing the first 
        notice of intent to sell under paragraph (1)(B), the Secretary 
        of the Interior shall convey the residence or lot to Daggett 
        County without consideration.
          (5) Advisory committee.--The Secretary of the Interior, 
        acting through the Upper Colorado Regional Director of the 
        Bureau of Reclamation, may appoint a nonfunded Advisory 
        Committee comprised of 1 representative from each of the Bureau 
        of Reclamation, Daggett County, and the Dutch John community to 
        review and provide advice to the Secretary on the resolution of 
        disputes arising under this subsection and subsection (f).
          (6) Financing.--The Secretary of the Interior shall provide 
        advice to potential purchasers under this subsection and 
        subsection (f) in obtaining appropriate and reasonable 
        financing for the purchase of a residence or lot.
  (f) Unoccupied Platted Lots.--
          (1) In general.--Except as provided in paragraph (2), the 
        Secretary of the Interior shall make an unoccupied platted lot 
        described in section 4(d)(4) available for sale to eligible 
        purchasers for the appraised fair market value of the lot.
          (2) Conveyance for public purpose.--On request from Daggett 
        County, the Secretary of the Interior may convey directly to 
        the County without consideration a lot referred to in paragraph 
        (1) that will be used for a public use purpose that is 
        consistent with the land use plan developed under section 8(a).
          (3) Administration.--The procedures established under 
        subsection (e) shall apply to this subsection to the maximum 
        extent practicable, as determined by the Secretary of the 
        Interior.
          (4) Land-use designation.--For each lot sold under this 
        subsection, the Secretary of the Interior shall include in the 
        notice of intent to sell the lot provided under this subsection 
        the land-use designation of the lot established under the land 
        use plan developed under section 8(a).
          (5) Limitation on number of lots.--No household may purchase 
        more than 1 residential lot under this subsection.
          (6) Limitation on purchase of additional lots.--No household 
        purchasing an existing residence under this section may 
        purchase an additional single home, residential lot.
          (7) Residual lots to county.--If a lot described in paragraph 
        (1) is not purchased in accordance with paragraphs (1) through 
        (6) within 2 years after providing the first notice of intent 
        to sell under this subsection, the Secretary of the Interior 
        shall convey the lot to Daggett County without consideration.
  (g) Special Use Permits.--
          (1) Sale.--Lands on which Forest Service special use permits 
        are issued to holders numbered 4054 and 9303, Ashley National 
        Forest, comprising approximately 15.3 acres and 1 acre, 
        respectively, may be sold at appraised fair market value to the 
        holder of the permit.
          (2) Administration of permits.--On transfer of jurisdiction 
        of the land to the Secretary of the Interior pursuant to 
        section 6, the Secretary of the Interior shall administer the 
        permits under the terms and conditions of the permits.
          (3) Notice of availability for purchase.--The Secretary of 
        the Interior shall notify the respective permit holders in 
        writing of the availability of the land for purchase.
          (4) Appraisals.--The Secretary of the Interior shall not 
        conduct an appraisal of the land unless the Secretary receives 
        a written notice of intent to purchase the land within 2 years 
        after providing notice under paragraph (3).
          (5) Alternative parcels.--On request by permit holder number 
        9303, the Secretary of the Interior, in consultation with 
        Daggett County, may--
                  (A) consider sale of a parcel within the Daggett 
                County community of similar size and appraised value in 
                lieu of the land under permit on the date of enactment 
                of this Act; and
                  (B) provide the holder credit toward the purchase or 
                other negotiated compensation for the appraised value 
                of improvements of the permittee to land under permit 
                on the date of enactment of this Act.
          (6) Residual land to county.--If land described in paragraph 
        (1) is not purchased in accordance with paragraphs (1) through 
        (5) within 2 years after providing the first notice of intent 
        to sell under this subsection, the Secretary of the Interior 
        shall convey the land to Daggett County without consideration.
  (h) Transfers to County.--Other land occupied by authorization of a 
special use permit, easement, or right-of-way to be disposed of under 
this Act shall be transferred to Daggett County if the holder of the 
authorization and the County, prior to transfer of the lands to the 
County--
          (1) agree to and execute a legal document that grants the 
        holder the rights and privileges provided in the existing 
        authorization; or
          (2) enter into another arrangement that is mutually 
        satisfactory to the holder and the County.
  (i) Church Land.--
          (1) In general.--The Secretary of the Interior shall offer to 
        sell land to be disposed of under this Act on which is located 
        an established church to the parent entity of the church at the 
        appraised fair market value.
          (2) Notice.--The Secretary of the Interior shall notify the 
        church in writing of the availability of the land for purchase.
          (3) Residual land to county.--If land described in paragraph 
        (1) is not purchased in accordance with paragraphs (1) and (2) 
        within 2 years after providing the first notice of intent to 
        sell under this subsection, the Secretary of the Interior shall 
        convey the land to Daggett County without consideration.
  (j) Residual Properties to County.--The Secretary of the Interior 
shall convey all lands, buildings, or facilities designated for 
disposal under this Act that are not conveyed in accordance with 
subsections (a) through (i) to Daggett County without consideration.
  (k) Water Rights.--
          (1) In general.--Subject to the other provisions of this 
        subsection, the Secretary of the Interior shall transfer all 
        water rights the Secretary holds that are applicable to the 
        Dutch John municipal water system to Daggett County.
          (2) Water service contract.--
                  (A) In general.--Transfer of rights under paragraph 
                (1) is contingent on Daggett County entering into a 
                water service contract with the Secretary of the 
                Interior covering payment for and delivery of untreated 
                water to Daggett County pursuant to the Act of April 
                11, 1956 (70 Stat. 105, chapter 203; 43 U.S.C. 620 et 
                seq.).
                  (B) Delivered water.--The contract shall require 
                payment only for water actually delivered.
          (3) Existing rights.--Existing rights for transfer to Daggett 
        County under this subsection include--
                  (A) Utah Water Right 41-2942 (A30557, Cert. No. 5903) 
                for 0.08 cubic feet per second from a water well; and
                  (B) Utah Water Right 41-3470 (A30414b), an unapproved 
                application to segregate 12,000 acre-feet per year of 
                water from the original approved Flaming Gorge water 
                right (41-2963) for municipal use in the town of Dutch 
                John and surrounding areas.
          (4) Culinary water supplies.--The transfer of water rights 
        under this subsection is conditioned on the agreement of 
        Daggett County to provide culinary water supplies to Forest 
        Service campgrounds served (on the date of enactment of this 
        Act) by the water supply system and to Forest Service and 
        Bureau of Reclamation facilities, at a rate equivalent to other 
        similar uses.
          (5) Maintenance.--The Secretary of Agriculture and the 
        Secretary of the Interior shall be responsible for maintenance 
        of their respective water systems from the point of the 
        distribution lines of the systems.
  (l) Shoreline Access.--On receipt of an acceptable application, the 
Secretary of Agriculture shall consider issuance of a special use 
permit affording Flaming Gorge Reservoir public shoreline access and 
use within the vicinity of Dutch John in conjunction with commercial 
visitor facilities provided and maintained under such a permit.
  (m) Revenues.--
          (1) In general.--Except as provided in paragraph (2), all 
        revenues derived from the sale of properties as authorized by 
        this Act shall temporarily be deposited in a segregated 
        interest-bearing trust account in the Treasury with the moneys 
        on hand in the account paid to Daggett County semiannually to 
        be used by the County for purposes associated with the 
        provision of governmental and community services to the Dutch 
        John community.
          (2) Deposit in the general fund.--Of the revenues described 
        in paragraph (1), 15.1 percent shall be deposited in the 
        general fund of the Treasury.

SEC. 11. VALID EXISTING RIGHTS.

  (a) Agreements.--
          (1) In general.--If any lease, permit, right-of-way, 
        easement, or other valid existing right is appurtenant to land 
        conveyed to Daggett County, Utah, under this Act, the County 
        shall honor and enforce the right through a legal agreement 
        entered into by the County and the holder before the date of 
        conveyance.
          (2) Extension or termination.--The County may extend or 
        terminate an agreement under paragraph (1) at the end of the 
        term of the agreement.
  (b) Use of Revenues.--During such period as the County is enforcing a 
right described in subsection (a)(1) through a legal agreement between 
the County and the holder of the right under subsection (a), the County 
shall collect and retain any revenues due the Federal Government under 
the terms of the right.
  (c) Extinguishment of Rights.--If a right described in subsection 
(a)(1) with respect to certain land has been extinguished or otherwise 
protected, the County may dispose of the land.

SEC. 12. CULTURAL RESOURCES.

  (a) Memoranda of Agreement.--Before transfer and disposal under this 
Act of any land that contains cultural resources and that may be 
eligible for listing on the National Register of Historic Places, the 
Secretary of Agriculture, in consultation with the Secretary of the 
Interior, the Utah Historic Preservation Office, and Daggett County, 
Utah, shall prepare a memorandum of agreement, for review and approval 
by the Utah Office of Historical Preservation and the Advisory Council 
on Historic Preservation established by title II of the National 
Historic Preservation Act (16 U.S.C. 470i et seq.), that contains a 
strategy for protecting or mitigating adverse effects on cultural 
resources on the land.
  (b) Interim Protection.--Until such time as a memorandum of agreement 
has been approved, or until lands are disposed of under this Act, the 
Secretary of Agriculture shall provide clearance or protection for the 
resources.
  (c) Transfer Subject to Agreement.--On completion of actions required 
under the memorandum of agreement for certain land, the Secretary of 
the Interior shall provide for the conveyance of the land to Daggett 
County, Utah, subject to the memorandum of agreement.

SEC. 13. TRANSITION OF SERVICES TO LOCAL GOVERNMENT CONTROL.

  (a) Assistance.--
          (1) In general.--The Secretary of the Interior shall provide 
        training and transitional operating assistance to personnel 
        designated by Daggett County, Utah, as successors to the 
        operators for the Secretary of the infrastructure facilities 
        described in section 4(c).
          (2) Duration of training.--With respect to an infrastructure 
        facility, training under paragraph (1) shall continue for such 
        period as is necessary for the designated personnel to 
        demonstrate reasonable capability to safely and efficiently 
        operate the facility, but not to exceed 2 years.
          (3) Continuing assistance.--The Secretary shall remain 
        available to assist with resolving questions about the original 
        design and installation, operating and maintenance needs, or 
        other aspects of the infrastructure facilities.
  (b) Transition Costs.--For the purpose of defraying costs of 
transition in administration and provision of basic community services, 
an annual payment of $300,000 (as adjusted by the Secretary for changes 
in the Consumer Price Index for all-urban consumers published by the 
Department of Labor) shall be provided from the Upper Colorado River 
Basin Fund authorized by section 5 of the Act of April 11, 1956 (70 
Stat. 107, chapter 203; 43 U.S.C. 620d), to Daggett County, Utah, or, 
in accordance with subsection (c), to Dutch John, Utah, for a period 
not to exceed 15 years beginning the first January 1 that occurs after 
the date of enactment of this Act.
  (c) Division of Payment.--If Dutch John becomes incorporated and 
become responsible for operating any of the infrastructure facilities 
referred to in subsection (a)(1) or for providing other basic local 
governmental services, the payment amount for the year of incorporation 
and each following year shall be proportionately divided between 
Daggett County and Dutch John based on the respective costs paid by 
each government for the previous year to provide the services.
  (d) Electric Power.--
          (1) Availability.--The United States shall make available 
        electric power and associated energy from the Colorado River 
        Storage Project for the Dutch John community.
          (2) Amount.--The amount of electric power and associated 
        energy made available under paragraph (1) shall not exceed 
        1,000,000 kilowatt-hours per year.
          (3) Rates.--The rates for power and associated energy shall 
        be the firm capacity and energy rates of the Salt Lake City 
        Area/Integrated Projects.

SEC. 14. AUTHORIZATION OF APPROPRIATIONS.

  (a) Resource Recovery and Mitigation.--There are authorized to be 
appropriated to the Secretary of Agriculture, out of nonpower revenues 
to the Federal Government from land transferred under this Act, such 
sums as are necessary to implement such habitat, sensitive resource, or 
cultural resource recovery, mitigation, or replacement strategies as 
are developed with respect to land transferred under this Act, except 
that the strategies may not include acquisition of privately owned 
lands in Daggett County.
  (b) Other Sums.--In addition to sums made available under subsection 
(a), there are authorized to be appropriated such sums as are necessary 
to carry out this Act.

                          purpose of the bill

    The purpose of H.R. 2108 is to dispose of certain Federal 
properties located in Dutch John, Utah, and to assist the local 
government in the interim delivery of basic services to the 
Dutch John community, and for other purposes.

                  background and need for legislation

    Dutch John was established in 1958 by the Bureau of 
Reclamation to provide housing and serve project construction 
needs for the construction of Flaming Gorge Dam. Permanent 
structures for housing, administrative offices, maintenance and 
other public purposes continue to be owned and maintained by 
the Bureau of Reclamation. During construction of the dam, more 
than 2,000 people were housed in the town. Now, Dutch John 
serves as the residence of approximately 175 people. The Bureau 
of Reclamation and U.S. Forest Service, responsible for land 
management at Dutch John and surrounding Flaming Gorge National 
Recreation Area, continue to provide basic services and 
facilities for the town. However, these services are no longer 
essential for those agencies.
    Basic services for Dutch John, as well as the operating and 
administrative costs for the town, have been financed by the 
Bureau of Reclamation and the U.S. Forest Service, and then 
reimbursed by annual power sales revenue. The cost of providing 
the full range of community facilities and services in Dutch 
John has substantially risen over the years, approaching $1 
million annually. In comparison, the total operating budget for 
surrounding Daggett County is about $1 million annually. As the 
federal government ceases to provide basic community services 
in Dutch John (such as roads, water and sewer), local 
government would be required to assume these responsibilities. 
To offset the costs of transition while a traditional community 
tax base is created in Dutch John, Daggett County would receive 
an annual subsidy for 15 years from public power revenues. In 
that time commercial development is anticipated that would help 
finance local services.
    By disposing of Dutch John, it is anticipated that the 
federal government will initially reduce cost outlays and 
corresponding power revenues by more than $500,000 annually, 
and after 15 years, the $300,000 subsidy to Daggett County will 
be eliminated. Dutch John will then be a self-sustaining 
community, contributing to Daggett County management of the 2 
million people that visit the flaming Gorge National Recreation 
Area each year.
    The process of privatizing Dutch John started in the mid-
1980s. Then, an initial proposal by the federal agencies was to 
solicit an exchange where a private applicant would acquire the 
land in Dutch John in exchange for land of comparable value 
desired by the Forest Service. After several years of effort, 
the Bureau of Reclamation and the Forest Service concluded that 
the process could not be completed administratively.
    In 1994, having concluded that legislation was necessary 
for Dutch John's privatization, the federal agencies began a 
series of workshops with interested parties to formulate a 
legislative proposal that would address the issues associated 
with privatization. These included: (1) authorization to the 
federal agencies for the conveyance; (2) protection of 
residents' housing and the interests of lessees and permittees 
affected by any privatization; (3) provision of resources for 
the community during the transition; (4) transfer of government 
utilities to local entities; (5) handling of environmental 
issues; and (6) the transition to local government control of 
the town. After more than a year, draft legislation was 
prepared.

                            committee action

    H.R. 2108 was introduced on July 8, 1997, by Congressman 
Chris Cannon (R-UT). The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
Water and Power and the Subcommittee on Forests and Forests 
Health. The Subcommittee on Water and Power held a legislative 
hearing on the bill on June 18, 1998. On August 5, 1998, the 
Full Resources Committee met to consider H.R. 2108. At that 
time, the Subcommittee on Water and Power and the Subcommittee 
on Forests and Forests Health were discharged from further 
consideration of the bill. Congressman Cannon offered an 
amendment in the nature of a substitute to the bill that 
represented an agreement between Daggett County and the Bureau 
of Reclamation on how to account for properties sold at Dutch 
John. Under the agreement, Daggett County will receive 84.9 
percent of the proceeds of the properties sold in Dutch John, 
rather than 100 percent. The amendment was adopted by voice 
vote 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. 2108.

                        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. 2108. 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. 
2108 does not contain any new budget authority, credit 
authority, or an increase or decrease in tax expenditures. 
According to the Congressional Budget Office, enactment of H.R. 
2108 would require new spending subject to appropriation of 
about $30,000 annually over the 1999-2003 time period (the 1998 
appropriated level was approximately $170,000). The bill would 
also reduce direct spending by $544,000 over the same period.
    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. 2108.
    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. 
2108 from the Director of the Congressional Budget Office.

               congressional budget office cost estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 12, 1998.
Hon. Don Young,
Chairman, Committee on Resources,
U.S. House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2108, the Dutch 
John Federal Property Disposition and Assistance Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Gary Brown 
(for federal costs), and Marjorie Miller (for the state and 
local impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 2108--Dutch John Federal Property Disposition and Assistance Act 
        of 1998

    Summary: H.R. 2108 would direct the Secretary of the 
Interior and the Secretary of Agriculture to dispose of certain 
lands, structures, and community facilities within or 
associated with Dutch John, Utah, and transfer responsibility 
for delivering basic services to the town to Daggett County, 
Utah. Examples of services that would be transferred include 
street maintenance and fire-fighting. The secretaries would 
retain land, structures, and facilities necessary for 
supporting their agencies and the Secretary of the Interior 
would temporarily assist the local government in delivering 
services.
    CBO estimates that implementing the bill would require new 
spending subject to appropriation of about $150,000 over the 
1999-2003 period. H.R. 2108 would affect direct spending and 
receipts; therefore, pay-as-you-go procedures would apply. CBO 
estimates that enacting H.R. 2108 would yield a net decrease in 
direct spending of $544,000 over the 1999-2003 period. The 
legislation 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.
    Dutch John was founded by the Secretary of the Interior in 
1958 to house personnel, administrative offices, and equipment 
for constructing and operating the Flaming Gorge Dam and 
Reservoir. The town is part of the Flaming Gorge National 
Recreation Area and Ashley National Forest, which are in the 
jurisdiction of the Secretary of Agriculture. Because land and 
waters in and around Dutch John are also used for managing the 
Colorado River Storage Project, the Secretary of the Interior 
administers this area.
    The bill would direct that the Secretary of Agriculture 
remove Dutch John from the Flaming Gorge National Recreation 
Area and Ashley National Forest and transfer jurisdiction of 
the land in and around Dutch John, Utah, to the Secretary of 
the Interior. Other provisions of the bill are summarized 
below.
    Assets: The Secretary of the Interior would appraise 
specified residential units and lots in Dutch John and offer 
them at market value to current lease holders or other eligible 
parties. About 15 percent of all revenues from the sale of 
property would be deposited in the general fund of the 
Treasury. All other revenues would be deposited in an interest-
bearing account in the Treasury and would be paid to the county 
semiannually. (Certain buildings and land would be conveyed 
without consideration to the county, as would all land and 
properties that remain unsold for two years.)
    Permits: After disposing of land under H.R. 2108, the 
Secretary of the Interior could not collect any fees from 
existing special use permits, easements, or rights-of-way.
    Services: The Secretary of the Interior would convey 
specified lands and facilities to the county, including 
streets, sidewalks, the fire station, and sewer systems, and 
would make annual payments of $300,000 (adjusted for inflation) 
from the Upper Colorado River Basin Fund to defray the county's 
costs of providing services to Dutch John. Payments would 
continue for 15 years.
    Wildlife, natural, and cultural resources: The Secretary of 
the Interior would transfer administrative jurisdiction over 
specified lands to the Secretary of Agriculture. These lands 
would be added to the Ashley or Uinta National Forests as 
appropriate. The bill would authorize the appropriation of such 
sums as necessary to implement habitat, resource, or cultural 
resource recovery, mitigation, or replacement strategies for 
all transferred lands.
    Estimated cost to the Federal Government: CBO estimates 
that implementing H.R. 2108 would require new net spending 
subject to appropriation of about $30,000 a year over the 1999-
2003 period. The 1998 appropriated level was about $170,000. 
CBO estimates that enacting the bill would result in a net 
decrease in mandatory spending of about $296,000 in each of 
fiscal years 1999 and 2000, and a net increase in mandatory 
spending of about $16,000 a year thereafter. The costs of this 
legislation fall within budget function 300 (natural resources 
and environment).
    Basis of estimate: CBO assumes that H.R. 2108 is enacted by 
September 30, 1998, and that all amounts estimated to be 
authorized by the bill would be appropriated for each year.

Direct spending

    Asset sales: CBO estimates that the sales would yield 
proceeds of about $2 million for residences and lots and about 
$3 million for undeveloped land. Our estimate of total sale 
proceeds was derived by assuming that most of the eligible 
residences and lots and about a quarter of the undeveloped land 
specified for sale under the bill would be sold and that values 
for land and property in Dutch John would be similar to those 
in a comparable, neighboring community. Roughly 30 residences, 
20 lots, and 2,000 acres of undeveloped land would be available 
for sale under the bill. The bill would require that 15 percent 
of all proceeds be deposited in the general fund of the 
Treasury and that 85 percent of all proceeds be paid to Daggett 
County semiannually.
    CBO anticipates that sale proceeds would be counted for 
pay-as-you-go purposes. Under the 1997 Balanced Budget Act, 
proceeds from nonroutine asset sales (sales that are not 
authorized under current law) may be counted for pay-as-you-go 
scorekeeping only if the sale would entail no financial cost to 
the government. Based on information provided by the Bureau of 
Reclamation, CBO estimates that the federal government pays 
more for maintaining these properties than it collects in 
rental and permit payments; therefore, selling these assets 
would result in a net savings.
    We estimate that, after paying the county, the net impact 
on the federal budget of the asset sale provisions in H.R. 2108 
would be a reduction in direct spending of about $312,000 in 
each of fiscal years 1999 and 2000. This is based on our 
estimating total proceeds from land and property at about $5 
million over the 1999-2000 period, that these sales revenues 
would accrue at a constant level over this two-year period, 
that 15 percent or about $750,000 of these amounts are 
deposited in the general fund of the Treasury, that the balance 
earns interest at an annual rate of 6.2 percent, and that the 
balance, including interest, is paid to the county 
semiannually.
    Permits: CBO estimates that enacting the proposal would 
also increase direct spending by causing a loss of offsetting 
receipts from outstanding permits totaling about $16,000 
annually beginning in 1999. The Forest Service administers four 
permits yielding revenues of about $16,000 a year for land that 
would be conveyed or sold under the bill. Currently, the annual 
proceeds from those permits are not available for spending.
    Permit holders that receive or purchase the land for which 
their permit was issued would no longer pay for use of the 
land. The bill would transfer unpurchased land to the county 
under certain conditions and the county would collect and 
retain any revenues due the federal government under any lease, 
permit, right-of-way, easement, or other valid existing right. 
The Secretary of the Interior would administer outstanding 
Forest Service permits prior to disposing of the land. Based on 
information provided by the Bureau of Reclamation, CBO assumes 
that permit fees that the secretary collects prior to disposal 
would be deposited in the Upper Colorado River Basin Fund and 
would be available for spending without appropriation.

Spending subject to appropriation

    Services: Based on information provided by the U.S. Forest 
Service and U.S. Bureau of Reclamation, CBO estimates that 
enacting the bill would require no new spending subject to 
appropriation to deliver services to Dutch John, Utah. The 1998 
appropriated level is $120,000; therefore, this change would 
save discretionary costs, relative to current practices.
    Other costs associated with providing services and paying 
for federal activities in Dutch John, about $900,000 annually, 
are paid out of funds that are not subject to appropriation. 
These funds include fees collected for providing services and 
receipts derived from selling water and power delivered by the 
Colorado River Storage Project. CBO estimates that, if H.R. 
2108 were enacted, gross spending would decline to about 
$800,000 beginning in 2000 and that collections would decline 
commensurately. The net impact on the budget would be zero. The 
estimate of gross spending reflects the cost of remaining 
services and federal activities and, as required under the 
bill, a mandatory annual payment to the county of $300,000 for 
the 15-year period following enactment.
    Wildlife, natural, and cultural resources: Based on 
information provided by the Forest Service, CBO estimates that 
enacting the bill would require new spending subject to 
appropriation of about $30,000 a year to mitigate losses of 
wildlife, natural and cultural resources or less than $500,000 
total over the 1999-2003 period. By comparison, the 1998 
appropriated level is slightly more than $50,000.
    At the request of the Utah Division of Wildlife Resources, 
the Forest Service has indicated that it would likely conduct 
wildlife and natural resource mitigation on roughly 2,500 acres 
over the five- to ten-year period following enactment of the 
bill. (This is an area roughly equal to the size of Dutch 
John). The purpose of this mitigation activity would be to 
offset losses of habitat that may occur after land in Dutch 
John is sold or conveyed. The total cost of these activities 
would be about $80 per acre or about $200,000 in total, and the 
annual cost over a five- to ten-year period would likely 
average about $30,000. Based on information provided by the 
Forest Service, CBO estimates that the 1998 funding level for 
administering wildlife and natural resources in Dutch John was 
about $1 per acre or about $2,500 in total.
    The bill would require that before any land containing 
culturing resources is transferred or disposed of under the 
bill, the Secretary of Agriculture prepare a memorandum of 
agreement for review and approval by the Utah Office of 
Historical Preservation and the Advisory Council on Historic 
Preservation that contains a plan for protecting or mitigating 
effects on these resources. The bill also would authorize 
appropriations for implementing the plan. The Forest Service is 
already cataloging significant sites and preparing a mitigation 
plan under current law. Based on information provided by the 
Forest Service, CBO estimates that the costs of implementing 
the plan would be about $50,000 and that these costs would be 
paid out of existing funds.
    Pay-as-you-go-considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. CBO 
estimates that enacting H.R. 2108 would affect direct spending 
but that there would be no significant impact in any year. 
Enacting the legislation would not affect governmental 
receipts.
    Estimated impacts on State, local, and tribal governments: 
H.R. 2108 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments. CBO expects that Daggett County would assume 
responsibility for providing various services to the Dutch John 
community as a result of this bill, but this would be a 
voluntary action. The bill would direct that certain land and 
community facilities be conveyed to the county and the school 
at no cost, including a fire station, sewer and water systems, 
the Dutch John Airport, and the site of the public schools. In 
addition, any other federal property identified for disposal 
that could not be sold would be conveyed to the county.
    Daggett County would also receive various payments from the 
federal government and from permit-holders, as described in the 
federal estimate. The bill would provide for annual payments to 
the county of $300,000 for up to 15 years, which would roughly 
offset its costs to provide community services. In addition, 
the county would receive most of the revenues from the sale of 
federal property. CBO estimates that the county's share would 
total about $4.4 million over fiscal years 1999 and 2000. The 
county would also receive a small amount from existing permit 
fees now paid to the federal government.
    Estimated impact on the private sector: This bill would 
impose no new private-sector mandates as defined in UMRA.
    Previous CBO estimates: On July 9, 1998, CBO prepared an 
estimate for S. 890, as ordered reported by the Senate 
Committee on Energy and Natural Resources on June 24, 1998. 
That bill is nearly identical to H.R. 2108, and the estimated 
costs of the two bills are the same.
    On May 26, 1998, CBO prepared an estimate for S. 890, as 
introduced on June 12, 1997. CBO estimated that enacting the 
bill would increase direct spending by about $260,000 over the 
1999-2003 period. That estimate contrasts with CBO's estimate 
of a net decrease in direct spending of $544,000 for H.R. 2108. 
The difference results from a change regarding the disposition 
of asset sale proceeds. The introduced version of S. 890 would 
direct the Secretary of the Interior to pay all proceeds from 
the sale of property to Daggett County. In H.R. 2108, 15 
percent of the proceeds would be deposited in the Treasury and 
85 percent would be paid to the county. Other provisions of the 
two bills are similar.
    Estimate prepared by: Federal Costs: Gary Brown. Impact on 
State, Local, and Tribal Governments: Marjorie Miller.
    Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                    compliance with public law 104-4

    H.R. 2108 contains no unfunded mandates.

                        changes in existing law

    If enacted, H.R. 2108 would make no changes in existing 
law.

                                
