[Senate Report 105-264]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 494
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-264
_______________________________________________________________________


 
   DUTCH JOHN FEDERAL PROPERTY DISPOSITION AND ASSISTANCE ACT OF 1997

                                _______
                                

                 July 27, 1998.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 890]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 890) to dispose of certain Federal 
properties located in Dutch John, Utah, 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, reports favorable 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. SHORT TITLE.

  This Act may be cited as the ``Dutch John Federal Property 
Disposition and Assistance Act of 1998''.

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. TRANSFER 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) Transfers From the Secretary of the Interior.--
          (1) In general.--The Secretary of the Interior shall transfer 
        to the Secretary of Agriculture administrative jurisdiction 
        over certain lands and interests in land described in paragraph 
        (2), containing approximately 2,167 acres located in Duchesne 
        and Wasatch Counties, Utah, acquired by the Secretary of the 
        Interior for the Central Utah Project.
          (2) Land description.--The lands referred to in paragraph (1) 
        are lands indicated on the maps generally depicting--
                  (A) the Dutch John transfer of the Ashley National 
                Forest to the State of Utah, dated February 1997;
                  (B) the Dutch John transfer of the Uinta National 
                Forest to the State of Utah, dated February 1997;
                  (C) lands to be transferred to the Forest Service: 
                Lower Stillwater Properties;
                  (D) lands to be transferred to the Forest Service: 
                Red Hollow (Diamond Properties); and
                  (E) lands to be transferred to the Forest Service: 
                Coal Mine Hollow (Current Creek Reservoir).
          (3) Status of lands.--
                  (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 Secretary of 
                Agriculture shall adjust the boundaries of each of the 
                National Forests to reflect the additional lands.
                  (B) Management.--The transferred lands shall be 
                managed 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 to the lands transferred under this section.
  (d) Transfers From the Secretary of Agriculture.--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 ofagreement 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

    S. 890, as ordered reported, would dispose of certain 
Federal properties located in Dutch John, Utah, assist the 
local government in the interim delivery of services to the 
local community, and reduce long-term Federal outlays.

                          background and need

    Dutch John in Daggett County is a northeast Utah community 
of approximately 175 persons. Dutch John was created by the 
Federal Government as a construction town for the construction 
of Flaming Gorge Dam on the Green River almost forty years ago. 
For the past twenty-five years, Dutch John has served as the 
home of Federal employees working at the dam, or with related 
responsibilities at Flaming Gorge National Recreation Area and 
along the Green River below the dam.
    Dutch John is located in one of the most remote parts of 
Utah. The total Daggett County population is 750. Electricity 
did not arrive in Daggett County until the Civilian 
Conservation Corps installed it in the 1930's. A year-round 
road did not access the county until after World War II. The 
county has undergone dramatic changes with the development of 
Flaming Gorge Dam and the recreational uses associated with the 
reservoir. Today, more than 2,000,000 people visit the Flaming 
Gorge National Recreation Area each year, with attendant 
demands for emergency services.
    The costs to the Federal Government of providing the full 
range of community facilities (including roads, water, sewer) 
and serving as the landlord for the town have been an 
increasing financial burden--now approaching $1 million a year. 
The Bureau of Reclamation owns many of the buildings, including 
the homes in Dutch John. The U.S. Forest Service manages the 
underlying land for the United States. By transferring 
ownership out of Federal hands to local government, the Federal 
agencies will be able to devote decreasing budgets to their 
primary missions, while maintaining their needed facilities for 
Federal operations.
    The process of privatizing Dutch John started in the mid-
1980's. Then, an initial proposal by the Federal agencies was 
to solicit an exchange whereby a private applicant would be 
selected to 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.

                          legislative history

    S. 890 was introduced on June 12, 1997, by Senator Bennett 
and Senator Hatch, and referred to the Committee on Energy and 
Natural Resources. H.R. 2108, a companion measure, was 
introduced by Representative Cannon on July 8, 1997. The 
Subcommittee on Forests and Public Land Management held a 
hearing on S. 890 on March 25, 1998. At a business meeting on 
June 24, 1998, the Committee on Energy and Natural Resources 
ordered S. 890, as amended, favorably reported.

            committee recommendation and tabulation of votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on June 24, 1998, by unanimous vote of a 
quorum present recommends that the Senate pass S. 890, if 
amended as described herein.
    The rollcall vote on reporting the measure was 20 yeas, no 
nays as follows:
        YEAS                          NAYS
Mr. Murkowski
Mr. Domenici\1\
Mr. Nickles \1\
Mr. Craig
Mr. Campbell
Mr. Thomas
Mr. Kyl \1\
Mr. Grams
Mr. Smith
Mr. Gorton
Mr. Burns
Mr. Bumpers \1\
Mr. Ford
Mr. Bingaman \1\
Mr. Akaka \1\
Mr. Dorgan
Mr. Graham \1\
Mr. Wyden \1\
Mr. Johnson
Ms. Landrieu

    \1\ Indicates vote by proxy.

                          committee amendment

    During consideration of S. 890, the Committee adopted an 
amendment in the nature of a substitute. The amendment 
addresses concerns raised by the Administration with S. 890 as 
introduced. These changes include: (1) clarifying that the 
wildlife mitigation requirements of the Central Utah 
Development Act are deemed fulfilled upon transfer of lands 
from the Bureau of Reclamation to the Forest Service; (2) 
outlining the responsibilities of the Secretary of the 
Interior, the Secretary of Agriculture, Daggett County, and the 
town of Dutch John for developing a management plan for 
conveyed lands that are adjacent to land which remains under 
Federal ownership; and (3) splitting the proceeds from the sale 
of property between Daggett County and the federal government.

                      section-by-section analysis

Section 1. Short title

    Dutch John Federal Property Disposition and Assistance Act 
of 1998.

Sec. 2. Findings and purposes

    The findings in subsection 2(a) provide the context for the 
legislation.
    The purposes in subsection 2(b) are to privatize certain 
lands at Dutch John, transfer jurisdiction between Federal 
agencies, complement the Flaming Gorge National Recreation 
Area, convey facilities no longer needed by the Federal 
Government, provide transitional financial assistance to 
Daggett County to defray costs of providing basic governmental 
services, reduce Federal expenditures, and serve the residents 
of Dutch John and the public.

Sec. 3. Definitions

    This section defines the terms ``Secretary of the 
Interior'' and ``Secretary of Agriculture.''

Sec. 4. Disposition of certain lands and properties

    Legal descriptions of the land to be transferred from 
Federal ownership are described in subsection 4(b). The 
facilities to be transferred are described in subsection 4(c). 
This section describes in specific terms the lands 
(approximately 2,450 acres) and facilities that would be 
conveyed by the Federal Government transferring among Federal 
agencies, or retained in Federal ownership, including land, 
community facilities, residential, commercial and industrial 
facilities, and civil facilities.
    Subsection 4(c)(2) describes the Dutch John airport land 
for transfer, and makes that transfer subject ``to such 
monitoring and remedial action by the United States, as is 
necessary.'' This provision is intended to affirm existing 
Federal law which places responsibility for hazardous waste 
remediation with the owner of the property at the time of the 
hazardous waste occurrence. The airport contains underground 
storage tanks, and has been the site of many activities over 
the years of Federal ownership. Should it later be discovered 
that hazardous wastes requiring cleanup exist on the property 
as a result of activities during the time of Federal ownership, 
this provision is intended to clarify that the Federal 
Government would assume responsibility for remedial action. The 
provision is not intended to impose responsibility for 
activities that occur after transfer of ownership out of 
Federal control. A similar provision applies to the landfill, 
which would be transferred out of Federal ownership in 
accordance with subsection (4)(d)(8).
    Properties retained in Federal ownership are described in 
subsection 4(e). Upon enactment, the Federal Government would 
retain 17 residences. The Committee understands that the Bureau 
of Reclamation and the Forest Service may not need all of these 
residences in the future, and may want to convey additional 
residences in the future. It is the Committee's intent that a 
transfer of jurisdiction of additional residences could occur, 
at the discretion of the Federal agencies, upon the 
determination that the residences are no longer needed for 
Federal purposes, and it is in the public interest to convey 
the property. Should a later conveyance take place, the process 
provided by the Act would be followed.

Sec. 5. Revocation of withdrawals

    This section addresses necessary revocation of withdrawals 
on United States lands to allow for conveyance of these lands.

Sec. 6. Transfer of jurisdiction

    Because multiple agencies are involved, and the Act 
provides for conveyance by the Bureau of Reclamation, this 
section directs jurisdictional transfers to place jurisdiction 
in appropriate hands for actions during and after Federal 
conveyance.
    Subsection 6(b) described lands to be transferred from the 
Secretary of the Interior to the Secretary of Agriculture. This 
transfer will ensure that the Forest Service will not lose 
acreage as a result of the conveyance of Forest Service land at 
Dutch John. These lands to be transferred under this subsection 
were part of the wildlife mitigation effort for the Central 
Utah Project. The Forest Service's existing mandates to protect 
wildlife on National Forest System lands are deemed 
satisfactory to protect the wildlife interests reflected in the 
deed restrictions for these lands.

Sec. 7. Surveys

    To facilitate future title recordation, a survey is 
directed.

Sec. 8. Planning

    The Secretary of the Interior, Secretary of Agriculture, 
and Daggett County are directed to prepare a community plan for 
Dutch John in cooperation with the residents of Dutch John.

Sec. 9. Appraisals

    The Secretary of the Interior is directed to conduct 
appraisals to determine the fair market value of properties for 
conveyance. The Committee anticipates that all Federal 
guidelines will be followed in the appraisal process to assure 
that fair market value is received for the properties sold 
under the process established in this Act. Existing residents 
are concerned that the lack of available private property could 
drive up the values of the land at the time of conveyance. 
Subsection 9(c) provides guidelines that uncertain speculative 
value is to be avoided in the appraisal process. A right to 
administratively appeal appraisal results is provided to 
potential purchasers to alleviate the need for litigation, 
should disputes arise on land valuation.

Sec. 10. Disposal of properties

    This Section provides for the conveyance of specified lands 
and facilities to public and private entities, without 
consideration. Community facilities are to be conveyed to 
Daggett County, the public facilities are to be transferred to 
public entities, the school is to be transferred to the Daggett 
County School District, and facilities used by the Utah 
Division of Wildlife Resources (DWR) are transferred to DWR.
    Property transferred to private parties is authorized to be 
conveyed for its appraised, fair market value. Residences are 
to be conveyed at fair market value, with a preference to 
existing Dutch John residents through a process specified in 
this section. This process establishes a priority system based 
upon seniority as a Dutch John resident. Subsections 10(f)(5) 
and (6) provide that no resident of Dutch John may purchase 
more than one lot. In accordance with subsection 10(g), Forest 
Service special use permittees may purchase the land underlying 
their permits for fair market value. Under subsection 10(h), 
Forest Service permittees who do not acquire an easement or 
right-of-way from the Federal Government, would enter into an 
agreement with Daggett County for a continuation of their use 
of the property prior to transfer of those underlying lands to 
the county. Under subsection 10(i), land underlying a church 
shall be sold at appraised fair market value to the church.
    Subsection 10(j) provides that lands and properties 
remaining in the Dutch John privatization area will be 
transferred without consideration to Daggett County at the end 
of the initial sales period. Subsection 10(k) provides that 
specified water rights to support Dutch John and uses in the 
area would be transferred to Daggett County.
    Because Dutch John does not have direct water access 
through private or local ownership of the shoreline of Flaming 
Gorge National Recreation Area, subsection 10(l) acknowledges 
and anticipates the need for community and private purposes 
along the shoreline. The overriding Federal interest in the 
management of Flaming Gorge National Recreation Area dictates 
careful Forest Service control over shoreline uses.
    Subsection 10(m) provides that revenues from the sale of 
Federal properties under the Act will be shared between Daggett 
County and the U.S. Treasury. The U.S. Treasury will receive 
15.1 percent from the property sales, and Daggett County will 
receive 84.9 percent.

Sec. 11. Valid existing rights

    Valid existing rights not otherwise addressed in this Act 
are preserved in a transfer of lands from the Federal 
Government in Daggett County.

Sec. 12. Cultural resources

    This section establishes a process involving the Forest 
Service, Bureau of Reclamation, and Daggett County for the 
protection of cultural resources at Dutch John. The Forest 
Service has already completed a Memorandum of Agreement with 
the State Historic Preservation Officer, and mitigation 
measures are underway for cultural resources. The Committee 
anticipates that necessary mitigation will be completed in 
1999.

Sec. 13. Transition of services to local government control

    This section establishes training and transitional 
operating assistance for a two-year period. To defray costs of 
transition, and to assist in providing basic community services 
while Dutch John becomes financially viable, an annual payment 
of $300,000 for 15 years is provided from the Upper Colorado 
River Basin Fund to Daggett County. An allocation of electric 
power is provided from the dam.

Sec. 14. Authorization of appropriations

    An authorization is established to assist, as necessary 
for: (1) implementation of Dutch John privatization; (2) 
wildlife mitigation; (3) and cultural resource recovery. An 
environmental assessment already in preparation will describe 
necessary mitigation measures. The Act specifically excludes 
land acquisition as part of the mitigation strategy.

                   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, July 9, 1998.
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. 890, the Dutch John 
Federal Property Disposition and Assistance Act of 1998, as 
ordered reported by the Senate Committee on Energy and Natural 
Resources on June 24, 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,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

S. 890--Dutch John Federal Property Disposition and Assistance Act of 
        1998

    Summary: S. 890 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 firefighting. 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. S. 890 would affect direct spending and 
receipts; therefore, pay-as-you-go procedures would apply. CBO 
estimates that enacting S. 890 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 S. 890, 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 S. 890 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 S. 890 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 asset sale provisions in S. 890 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 S. 890 
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 costover 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 also 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: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 sets up pay-
as-you-go procedures for legislation affecting direct spending 
or receipts. CBO estimates that enacting S. 890 would affect 
direct spending but that there would be no significant impact 
in any year. Enacting the legislation would not affect 
governmental receipts.
    Estimated impact on state, local, and tribal governments: 
S. 890 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 
system 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 estimate: 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 the bill as ordered reported by the 
Senate Committee on Energy and Natural Resources. The 
difference results from a change in the bill regarding the 
disposition of asset sale proceeds. As introduced, S. 890 would 
direct the Secretary of the Interior to pay all proceeds from 
the sale of property to Daggett County. In the committee-
approved version, 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 and the estimated 
costs are the same.
    Estimate prepared by: Federal costs--Gary Brown; impact on 
state, local, and tribal governments--Marjorie Miller.
    Estimate approved by: Paul N. Van deWater, 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. 890.
    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 be no impact on personal 
privacy.
    Little if any additional paperwork would result from 
enactment of S. 890.

                        executive communications

    Legislative reports from the Department of Agriculture, 
Department of the Interior, and Office of Management and Budget 
setting forth executive agency recommendations on S. 890 were 
unavailable at the time the report on S. 890 was filed. When 
the reports become available, the Chairman will request that 
they be printed in the Congressional Record for the advice of 
the Senate. The testimony provided by the Bureau of Reclamation 
at the Subcommittee hearings follows:

    Statement of Eleanor Towns, Forest Service, U.S. Department of 
                              Agriculture

    Mr. Chairman and members of the subcommittee, thank you for 
the opportunity to present the Administration's view on S. 809. 
The Administration supports S. 890 with amendments.
    S. 890 would provide for an intricate series of conveyances 
to privatize the community of Dutch John, Utah which was 
developed in 1958 to providing housing and services for workers 
constructing and operating the Colorado River Storage Project 
administered by the Bureau of Reclamation (BOR).
    The bill would direct a transfer of lands between the 
Departmant of the Interior and the Department of Agriculture so 
that all properties involved in the Dutch John conveyances with 
Daggett County, Utah and others would be under the jurisdiction 
by the Secretary of the Interior. The bill would also transfer 
certain lands from the jurisdiction of the Department of the 
Interior to the Secretary of Agriculture. The Secretary of 
Agriculture would manage the scattered lands transferred to 
USDA jurisdiction as part of mitigation purposes pursuant to 
existing Memoranda of Agreement with the Secretary of the 
Interior. The bill further describes the properties that would 
be retained by the Federal government, revocation of 
withdrawals, appraisal and disposal standards, conditions and 
requirements of the subsequent transfers between BOR, Daggett 
County, the Dutch John community, and property occupants.
    The Forest Service testified on an earlier version of this 
bill in July, 1996, and we are appreciative of the improvements 
in the proposal since that time. We urge the Committee to adopt 
additional amendments to address issues concerning the land 
being transferred to the Forest Service. The first amendment 
would include language in the bill that would state that the 
BOR has met their mitigation requirements under the Central 
Utah Project Act for the 2,167 acres located in Duchesne and 
Wasatch counties to be transferred to the Secretary of 
Agriculture. The second amendment would direct the Secretary of 
Agriculture to manage the lands conveyed to USDA's jurisdiction 
under the National Forest Management Act consistent with forest 
plans (Supplemental Statement A). These amendments would ensure 
that lands conveyed for management by the Forest Service will 
not be conveyed with special management requirements but can be 
managed similar to existing adjacent National Forest System 
lands.
    The Department of Agriculture would defer to the Department 
of the Interior and the Bureau of Reclamation concerning the 
conveyances to Daggett County and others, as well as issues 
raised in the Bureau of Reclamation's testimony.

                        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 to existing law are made by the bill S. 890, as ordered 
reported.

                                
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