[Senate Report 105-125]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 239
105th Congress                                                   Report
                                 SENATE

 1st Session                                                    105-125
_______________________________________________________________________


 
                         STEFFENS FAMILY ESTATE

                                _______
                                

                October 30, 1997.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 799]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 799) to direct the Secretary of the 
Interior to transfer to the personal representative of the 
estate of Fred Steffens of Big Horn County, Wyoming, certain 
land comprising the Steffens family property, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. TRANSFER OF STEFFENS FAMILY PROPERTY.

    (a) Conveyance.--Subject to valid existing rights, the Secretary of 
the Interior is directed to issue, without consideration, a quitclaim 
deed to Marie Wambeke of Big Horn County, Wyoming, the personal 
representative of the estate of Fred Steffens, to the land described in 
subsection (b): Provided, That all minerals underlying such land are 
hereby reserved to the United States.
    (b) Land Description.--The land referred to in subsection (a) is 
the approximately 80-acre parcel known as ``Farm Unit C'' in the E\1/
2\NW\1/4\ of Section 27 in Township 57 North, Range 97 West, 6th 
Principal Meridian, Wyoming.
    (c) Revocation of Withdrawal.--The Bureau of Reclamation withdrawal 
for the Shoshone Reclamation Project under Secretarial Order dated 
October 21, 1913 is hereby revoked with respect to the lands described 
in subsection (b).

                                purpose

    The purpose of S. 799 is to direct the Secretary of the 
Interior to transfer to the estate of Mr. Fred Steffens certain 
lands in Big Horn County, Wyoming.

                          background and need

    The 80-acre parcel of land affected by this legislation was 
purchased by Fred Steffens in 1928 from Mr. Frank McKenny. 
However, McKenny did not have either title to the property or 
an assignable right of entry. Research into the history of the 
property indicated that in 1913 the lands in question had been 
withdrawn by the Bureau of Reclamation for the Shoshone 
Reclamation Project. While this withdrawal did not preclude 
homesteading, it did make entry subject to regulation under the 
Reclamation Act. According to records, a homestead entry for 
the property was legally filed in 1918. This entry, however, 
was canceled by the Bureau of Reclamation in 1926 for McKinny's 
failure to comply with all the homesteading requirements 
contained within the Act. Notwithstanding the cancellation, Mr. 
Steffens received a warranty deed with release of Homestead 
from McKinny and proceeded to use the property as a family farm 
until his death in 1995. According to the Big Horn County 
Assessor's office, the family has paid taxes on the land since 
the date of purchase in 1928.
    Upon Mr. Steffens' death, and the attempt to settle his 
estate, it was discovered that a legal patent had never been 
issued for these lands. In an attempt to remedy this situation, 
Ms. Marie Wambeke, Mr. Steffens sister and representative of 
the estate, filed a Color of Title Claim with the Bureau of 
Land Management's Wyoming State Office. This application was 
rejected, however, because the lands at issue were, and 
continue to be, withdrawn by the Bureau of Reclamation for the 
Shoshone Reclamation Project. Regulations specifically preclude 
claims under the Color of Title Act when the lands are 
withdrawn for Federal purposes.
    The Bureau of Land Management in coordination with the 
Bureau of Reclamation have both agreed that the only options to 
clear up the issue are either legislation or revocation of the 
withdrawal and sale of the property at current market value. 
The Bureau of Reclamation has indicated that it was willing to 
relinquish the withdrawal of the lands in question and would 
not object to the transfer of title to the Steffens estate. The 
Bureau of Land Management testified that as long as the mineral 
estate was retained, they support transfer of the surface 
estate to the family.

                          legislative history

    S. 799 was introduced by Senators Craig Thomas and Mike 
Enzi on May 23, 1997. On September 25, 1997 the Subcommittee of 
Forests and Public land Management held a hearing on the 
legislation.

            committee recommendation and tabulation of votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on October 22, 1997, by voice vote of a 
quorum present, recommends that the Senate pass S. 799, if 
amended as described herein.

                          committee amendment

    During the consideration of S. 799, the Committee adopted 
an amendment in the nature of a substitute. The amendment makes 
clarifying changes and adds language reserving all minerals 
underlying the land to the United States.

                           summary of s. 799

    Section 1(a) directs the Secretary of the Interior to issue 
a quitclaim deed to the personal representative of the Fred 
Steffens estate for the land described in Subsection (b) with a 
provision that the minerals underlying the land are reserved to 
the United States.
    Subsection (b) describes the land to be transferred.
    Subsection (c) revokes the Bureau of Reclamation withdrawal 
on the lands described in Subsection (b).

                   cost and budgetary considerations

    The following estimate of the cost of this measure has been 
provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 23, 1997.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy, and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 799, a bill to 
direct the Secretary of the Interior to transfer to the 
personal representative of the estate of Fred Steffens of Big 
Horn County, Wyoming, certain land comprising the Steffens 
family property.
    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.

S. 799--A bill to direct the Secretary of the Interior to transfer to 
        the personal representative of the estate of Fred Steffens of 
        Big Horn County, Wyoming, certain land comprising the Steffens 
        family property

    S. 799 would direct the Secretary of the Interior, acting 
through the Bureau of Land Management, to transfer without 
consideration about 80 acres of land in Big Horn County, 
Wyoming, to the representative of the estate of Mr. Fred 
Steffens. The federal government would retain the mineral 
interests in the land.
    CBO estimates that enacting this bill would have no 
significant impact on the federal budget. Because S. 799 would 
not affect direct spending or receipts, pay-as-you-go 
procedures would not apply S. 799 contains no intergovernmental 
or private-sector mandates as defined in the Unfunded Mandates 
Reform Act of 1995 and would have no significant impact on the 
budgets of state, local, or tribal governments.
    The CBO staff contact for this estimate is Victoria V. 
Heid. This estimate was approved by Paul N. Van de Water, 
Assistant Director for Budget Analysis.

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 799. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would no impact on personal 
privacy.
    Little, if any, additional paperwork would result from 
enactment of S. 799, as ordered reported.

                        executive communications

    The legislative report received by the Committee from the 
Department of the Interior setting forth Executive agency 
recommendations relating to S. 799 is set forth below:

                   U.S. Department of the Interior,
                                   Office of the Secretary,
                                  Washington, DC, October 21, 1997.
Hon. Frank Murkowski,
Chairman, Senate Committee on Energy and Natural Resources,
Washington, DC.
    Dear Mr. Chairman: Thank you for the opportunity to present 
the views of the Department of the Interior (Interior) on S. 
799, a bill to transfer eighty acres of public land in Big Horn 
County, Wyoming to the estate of Mr. Fred Steffens. Interior 
testified on this bill before the Subcommittee on Forests and 
Public Lands Management on September 25, 1997.
    Interior supports the transfer of eighty acres of public 
land to the estate of Mr. Fred Steffens. This property has been 
continuously used as a family farm by the Steffens' family 
since Mr. Steffens purchased the land in 1928. Mr. Steffens was 
issued a warranty deed to the property by Mr. Frank McKinney, 
predecessor in interest. Unfortunately, Mr. McKinney knowingly 
had neither title to the property nor an assignable right of 
entry. However, the fact that Mr. McKinney did not own the land 
did not stop him from selling the property or issuing the 
warranty deed. In good faith, Mr. Steffens purchased the 
property and, according to the Big Horn County Assessor's 
office, paid taxes since the date of purchase in 1928.
    Upon Mr. Steffens' death, and in the attempt to settle his 
estate, it was discovered that a patent had never been issued 
for these lands. In an attempt to remedy this situation, Ms. 
Marie Wambeke, Mr. Steffens' sister and representative of the 
estate, filed a Color of Title application with the Bureau of 
Land Management's (BLM) Wyoming State Office. This application 
was rejected, however, because the lands at issue were, and 
continue to be, withdrawn by the Bureau of Reclamation (BOR) 
for the Shoshone Reclamation Project. Regulations specifically 
preclude claims under the Color of Title Act when lands are 
withdrawn for Federal purposes.
    Our BLM field office has coordinated with the BOR and both 
agencies agree the only options to clear up this issue are 
either Congressional action or revocation of the withdrawal and 
sale of the property at current market value. The BOR is 
willing to relinquish the withdrawal of these lands and does 
not object to the transfer of title to the Steffens' estate. 
The record shows the Steffens family occupied this land in good 
faith.
    The BLM supports the transfer of the right, title, and 
interest of the United States in and to the surface estate to 
the family. We would request, however, that the legislation be 
modified to allow the United States to reserve the mineral 
estate, as the lands are valuable for oil and gas. Such 
reservation would occur if title was transformed under the 
Color of Title Act. Additionally, the legislation should be 
modified to revoke the withdrawal as it relates to the lands in 
this bill.
    The Committee's majority staff provided a copy of a 
substitute amendment that is intended for introduction at the 
markup. It appears upon review of this substitute that the 
Department's concerns have been addressed and suggestions for 
modification taken. We would therefore support the reporting 
out of this bill from your Committee.
    The Office of Management and Budget has advised that there 
is no objection to the presentation of this report from the 
standpoint of the President's program.
            Sincerely,
                                     Bob Armstrong,
                           Assistant Secretary for Land and
                                               Minerals Management.

                  ADDITIONAL VIEWS OF SENATOR BUMPERS

    S. 799 would direct the Secretary of the Interior to convey 
a quitclaim deed in order to correct a previous fraudulent 
conveyance of Federal land from one individual to another. 
While the Committee has on many occasions considered and 
favorably reported private relief legislation to correct a 
problem in the title to an individual's property, as far as I 
am aware, this is the first time we have reported such a bill 
where the United States will make whole the estate of an 
individual who was willfully defrauded by another, and where 
the Federal government had no role in causing the error in 
title.
    Generally, the Congress has considered private relief bills 
when there has been an error in an earlier survey, or as is the 
case of S. 814, another bill considered by the Committee today, 
where there has been an error in recording the legal 
description to the property. I voted to report S. 799 only 
because Mr. Steffens was an unwilling victim of the fraudulent 
conveyance, and lived on the property in question for almost 60 
years with no objection ever raised by the Bureau of 
Reclamation or the Bureau of Land Management. To not clear 
title at this date would be extremely unfair to Mr. Steffens' 
estate, and I agree that enactment of this bill is the 
appropriate means of resolving this issue.
    However, I believe this is a very rare case where the 
United States is not at fault, but that conveyance of title is 
nonetheless the appropriate remedy. I would not support 
transfer of Federal lands in a less compelling instance.
                                                      Dale Bumpers.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill S. 799, as ordered 
reported.

                                
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