[Senate Report 105-329]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 572
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-329
_______________________________________________________________________


 
                GALLATIN LAND CONSOLIDATION ACT OF 1998

                                _______
                                

               September 14, 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. 1719]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1719) to direct the Secretary of 
Agriculture and the Secretary of the Interior to exchange land 
and other assets with Big Sky Lumber Co., having considered the 
same, reports favorably thereon with an amendment and an 
amendment to the title and recommends that the bill, as 
amended, do pass.
    The amendments are as follows:
    1. 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 ``Gallatin Land Consolidation Act of 
1998''.

SEC. 2. FINDINGS.

  Congress finds that--
          (1) the land north of Yellowstone National Park possesses 
        outstanding natural characteristics and wildlife habitats that 
        make the land a valuable addition to the National Forest 
        System;
          (2) it is in the interest of the United States to establish a 
        logical and effective ownership pattern for the Gallatin 
        National Forest, reducing long-term costs for taxpayers and 
        increasing and improving public access to the forest;
          (3) it is in the interest of the United States for the 
        Secretary of Agriculture to enter into an Option Agreement for 
        the acquisition of land owned by Big Sky Lumber Co. to 
        accomplish the purposes of this Act;
          (4) other private property owners are willing to enter into 
        exchanges that further improve the ownership pattern of the 
        Gallatin National Forest; and
          (5) BSL, acting in good faith, has shouldered many aspects of 
        the financial burden of the appraisal and subsequent option and 
        exchange process.

 SEC. 3. DEFINITIONS.

  In this Act:
          (1) BLM land.--The term ``BLM land'' means approximately 
        2,000 acres of Bureau of Land Management land (including all 
        appurtenances to the land) that is proposed to be acquired by 
        BSL, as depicted in Exhibit B to the Option Agreement.
          (2) BSL.--The term ``BSL'' means Big Sky Lumber Co., an 
        Oregon joint venture, and its successors and assigns, and any 
        other entities having a property interest in the BSL land.
          (3) BSL land.--The term ``BSL land'' means approximately 
        54,000 acres of land (including all appurtenances to the land 
        except as provided in section 4(e)(1)(D)(i)) owned by BSL that 
        is proposed to be acquired by the Secretary of Agriculture, as 
        depicted in Exhibit A to the Option Agreement.
          (4) Eastside national forests.--The term ``Eastside National 
        Forests'' means national forests east of the Continental Divide 
        in the State of Montana, including the Beaver Head National 
        Forest, Deer Lodge National Forest, Helena National Forest, 
        Custer National Forest, and Lewis and Clark National Forest.
          (5) National forest system land.--The term ``National Forest 
        System land'' means approximately 29,000 acres of land 
        (including all appurtenances to the land) owned by the United 
        States in the Gallatin National Forest, Flathead National 
        Forest, Deer Lodge National Forest, Helena National Forest, 
        Lolo National Forest, and Lewis and Clark National Forest that 
        is proposed to be acquired by BSL, as depicted in Exhibit B to 
        the Option Agreement.
          (6) Option agreement.--The term ``Option Agreement'' means--
                  (A) the document signed by BSL, dated July 29, 1998 
                and entitled ``Option Agreement for the Acquisition of 
                Big Sky Lumber Co. Lands Pursuant to the Gallatin Range 
                Consolidation and Protection Act of 1993'';
                  (B) the exhibits and maps attached to the document 
                described in subparagraph (A); and
                  (C) an exchange agreement to be entered into between 
                the Secretary and BSL and made part of the document 
                described in subparagraph (A).
          (7) Secretary.--The ``Secretary'' means the Secretary of 
        Agriculture.

 SEC. 4. GALLATIN LAND CONSOLIDATION COMPLETION.

  (a) In General.--Notwithstanding any other provision of law, and 
subject to the terms and conditions of the Option Agreement--
          (1) if BSL offers title acceptable to the Secretary to the 
        BSL land--
                  (A) the Secretary shall accept a warranty deed to the 
                BSL land and a quit claim deed to agreed to mineral 
                interests in the BSL land;
                  (B) the Secretary shall convey to BSL, subject to 
                valid existing rights and to other terms, conditions, 
                reservations, and exceptions as may be agreed to by the 
                Secretary and BSL, fee title to the National Forest 
                System land; and
                  (C) the Secretary of the Interior shall convey to 
                BSL, by patent or otherwise, subject to valid existing 
                rights and other terms, conditions, reservations, and 
                exceptions as may be agreed to by the Secretary of the 
                Interior and BSL, fee title to the BLM land;
          (2) if BSL places title in escrow acceptable to the Secretary 
        to 11\1/2\ sections of the BSL land in the Taylor Fork area as 
        set forth in the Option Agreement--
                  (A) the Secretary shall place Federal land in the 
                Bangtail and Doe Creek areas of the Gallatin National 
                Forest, as identified in the Option Agreement, in 
                escrow pending conveyance to the Secretary of the 
                Taylor Fork land, as identified in the Option Agreement 
                in escrow;
                  (B) the Secretary, subject to the availability of 
                appropriations, shall purchase 7\1/2\ sections of BSL 
                land in the Taylor Fork area held in escrow and 
                identified in the Option Agreement at a purchase price 
                of $4,150,000 plus interest at a rate acceptable to the 
                Secretary; and
                  (C) the Secretary shall acquire the 4 Taylor Fork 
                sections identified in the Option Agreement remaining 
                in escrow, and any of the 6 sections referred to in 
                subparagraph (B) for which appropriations are not 
                available, by providing BSL with timber sale receipts 
                from timber sales on the Gallatin National Forest and 
                other eastside national forests in the State of Montana 
                in accordance with subsection (c); and
          (3)(A) as appropriated funds or timber sale receipts are 
        received by BSL--
                  (i) the deeds to an equivalent value of BSL Taylor 
                Fork land held in escrow shall be released and conveyed 
                to the Secretary; and
                  (ii) the escrow of deeds to an equivalent value of 
                Federal land shall be released to the Secretary in 
                accordance with the terms of the Option Agreement; or
          (B) if appropriated funds or timber sale receipts are not 
        provided to BSL as provided in the Option Agreement, BSL shall 
        be entitled to receive patents and deeds to an equivalent value 
        of the Federal land held in escrow.
  (b) Valuation.--
          (1) In general.--The property and other assets exchanged or 
        conveyed by BSL and the United States under subsection (a) 
        shall be approximately equal in value, as determined by the 
        Secretary.
          (2) Difference in value.--To the extent that the property and 
        other assets exchanged or conveyed by BSL or the United States 
        under subsection (a) are not approximately equal in value, as 
        determined by the Secretary, the values shall be equalized in 
        accordance with methods identified in the Option Agreement.
  (c) Timber Sale Program.--
          (1) In general.--The Secretary shall implement a timber sale 
        program, according to the terms and conditions identified in 
        the Option Agreement and subject to compliance with applicable 
        environmental laws, judicial decisions, and acts beyond the 
        control of the Secretary, to generate sufficient timber 
        receipts to purchase the portions of the BSL land in Taylor 
        Fork identified in the Option Agreement.
          (2) Implementation.--In implementing the timber sale 
        program--
                  (A) the Secretary shall provide BSL with a proposed 
                annual schedule of timber sales;
                  (B) as set forth in the Option Agreement, receipts 
                generated from the timber sale program shall be 
                deposited by the Secretary in a special account 
                established by the Secretary and paid by the Secretary 
                to BSL;
                  (C) receipts from the Gallatin National Forest shall 
                not be subject to the Act of May 23, 1908 (16 U.S.C. 
                500); and
                  (D) the Secretary shall fund the timber sale program 
                at levels determined by the Secretary to be 
                commensurate with the preparation and administration of 
                the identified timber sale program.
  (d) Rights-of-Way.--As specified in the Option Agreement--
          (1) the Secretary, under the authority of the Federal Land 
        Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.), 
        shall convey to BSL such easements in or other rights-of-way 
        over National Forest System land for access to the land 
        acquired by BSL under this Act for all lawful purposes; and
          (2) BSL shall convey to the United States such easements in 
        or other rights-of-way over land owned by BSL for all lawful 
        purposes, as may be agreed to by the Secretary and BSL.
  (e) Quality of Title.--
          (1) Determination.--The Secretary shall review the title for 
        the BSL land described in subsection (a) and, within 45 days 
        after receipt of all applicable title documents from BSL, 
        determine whether--
                  (A) the applicable title standards for Federal land 
                acquisition have been satisfied and the quality of the 
                title is otherwise acceptable to the Secretary of 
                Agriculture;
                  (B) all draft conveyances and closing documents have 
                been received and approved;
                  (C) a current title commitment verifying compliance 
                with applicable title standards has been issued to the 
                Secretary; and
                  (D) the title includes both the surface and 
                subsurface estates without reservation or exception 
                (except as specifically provided in this Act), 
                including--
                          (i) minerals, mineral rights, and mineral 
                        interests (including severed oil and gas 
                        surface rights), subject to and excepting other 
                        outstanding or reserved oil and gas rights;
                          (ii) timber, timber rights, and timber 
                        interests (except those reserved subject to 
                        section 251.14 of title 36, Code of Federal 
                        Regulations, by BSL and agreed to by the 
                        Secretary);
                          (iii) water, water rights, ditch, and ditch 
                        rights;
                          (iv) geothermal rights; and
                          (v) any other interest in the property.
          (2) Conveyance of title.--
                  (A) In general.--If the quality of title does not 
                meet Federal standards or is otherwise determined to be 
                unacceptable to the Secretary of Agriculture, the 
                Secretary shall advise BSL regarding corrective actions 
                necessary to make an affirmative determination under 
                paragraph (1).
                  (B) Title to subsurface estate.--Title to the 
                subsurface estate shall be conveyed by BSL to the 
                Secretary in the same form and content as that estate 
                is received by BSL from Burlington Resources Oil & Gas 
                Company Inc. and Glacier Park Company.
    (f) Timing of Implementation.--
          (1) Land-for-land exchange.--The Secretary shall accept the 
        conveyance of land described in subsection (a) not later than 
        45 days after the Secretary has made an affirmative 
        determination of quality of title.
          (2) Land-for-timber sale receipt exchange.--As provided in 
        subsection (c) and the Option Agreement, the Secretary shall 
        make timber receipts described in subsection (a)(3) available 
        not later than December 31 of the fifth full calendar year that 
        begins after the date of enactment of this Act.
          (3) Purchase.--The Secretary shall complete the purchase of 
        BSL land under subsection (a)(4) not later than 30 days after 
        the date on which appropriated funds are made available and an 
        affirmative determination of quality of title is made with 
        respect to the BSL land.

SEC. 5. OTHER FACILITATED EXCHANGES.

    (a) Authorized Exchanges.--
          (1) In general.--The Secretary shall enter into the following 
        land exchanges if the landowners are willing:
                  (A) Wapiti land exchange, as outlined in the 
                documents entitled ``Non-Federal Lands in Facilitated 
                Exchanges'' and ``Federal Lands in Facilitated 
                Exchanges'' and dated July 1998.
                  (B) Eightmile/West Pine land exchange as outlined in 
                the documents entitled ``Non-Federal Lands in 
                Facilitated Exchanges'' and ``Federal Lands in 
                Facilitated Exchanges'' and dated July 1998.
          (2) Equal value.--Before entering into an exchange under 
        paragraph (1), the Secretary shall determine that the parcels 
        of land to be exchanged are of approximately equal value, based 
        on an appraisal.
    (b) Section 1 of the Taylor Fork Land.--
          (1) In general.--The Secretary is encouraged to pursue a land 
        exchange with the owner of section 1 of the Taylor Fork land 
        after completing a full public process and an appraisal.
          (2) Report.--The Secretary shall report to Congress on the 
        implementation of paragraph (1) not later than 180 days after 
        the date of enactment of this Act.

SEC. 6. GENERAL PROVISIONS.

    (a) Minor Corrections.--
          (1) In general.--The Option Agreement shall be subject to 
        such minor corrections and supplemental provisions as may be 
        agreed to by the Secretary and BSL.
          (2) Notification.--The Secretary shall notify the Committee 
        on Energy and Natural Resources of the Senate, the Committee on 
        Resources of the House of Representatives, and each member of 
        the Montana congressional delegation of any changes made under 
        this subsection.
          (3) Boundary adjustment.--
                  (A) In general.--The boundary of the Gallatin 
                National Forest is adjusted in the Wineglass and North 
                Bridger area, as described on maps dated July 1998, 
                upon completion of the conveyances.
                  (B) No limitation.--Nothing in this subsection limits 
                the authority of the Secretary to adjust the boundary 
                pursuant to section 11 of the Act of March 1, 1911 
                (commonly known as the ``Weeks Act'') (16 U.S.C. 521).
                  (C) Allocation of land and water conservation fund 
                moneys.--For the purposes of section 7 of the Land and 
                Water Conservation Fund Act of 1965 (16 U.S.C. 460l-9), 
                boundaries of the Gallatin National Forest shall be 
                considered to be the boundaries of the National Forest 
                as of January 1, 1965.
    (b) Public Availability.--The Option Agreement--
          (1) shall be on file and available for public inspection in 
        the office of the Supervisor of the Gallatin National Forest; 
        and
          (2) shall be filed with the county clerk of each of Gallatin 
        County, Park County, Madison County, Granite County, Broadwater 
        County, Meagher County, Flathead County, and Missoula County, 
        Montana.
    (c) Compliance With Option Agreement.--The Secretary, the Secretary 
of the Interior, and BSL shall comply with the terms and conditions of 
the Option Agreement except to the extent that any provision of the 
Option Agreement conflicts with this Act.
    (d) Conveyance of Timber.--After completion of the land-for-land 
exchange under section 4(a)(1), the Secretary shall convey to BSL 
1,000,000 board feet of timber from roaded land in the Gallatin 
National Forest, which--
          (1) shall be treated as reserved timber under section 251.14 
        of title 36, Code of Federal Regulations; and
          (2) shall not be considered as part of the appraisal value of 
        land exchanged under this Act.
    (e) Status of Land.--All land conveyed to the United States under 
this Act shall be added to and administered as part of the Gallatin 
National Forest and Deerlodge National Forest, as appropriate, in 
accordance with the Act of March 1, 1911 (5 U.S.C. 515 et seq.), and 
other laws (including regulations) pertaining to the National Forest 
System.
    (f) Management.--
          (1) Public process.--Not later than 30 days after the date of 
        completion of the land-for-land exchange under section 4(f)(1), 
        the Secretary shall initiate a public process to amend the 
        Gallatin National Forest Plan and the Deerlodge National Forest 
        Plan to integrate the acquired land into the plans.
          (2) Process time.--The amendment process under paragraph (1) 
        shall be completed as soon as practicable, and in no event 
        later than 540 days after the date on which the amendment 
        process is initiated.
          (3) Limitation.--An amended management plan shall not permit 
        surface occupancy on the acquired land for access to reserved 
        or outstanding oil and gas rights or for exploration or 
        development of oil and gas.
          (4) Interim management.--Pending completion of the forest 
        plan amendment process under paragraph (1), the Secretary 
        shall--
                  (A) manage the acquired land under the standards and 
                guidelines in the applicable land and resource 
                management plans for adjacent land managed by the 
                Forest Service; and
                  (B) maintain all existing public access to the 
                acquired land.
    (g) Restoration.--
          (1) In general.--The Secretary shall implement a restoration 
        program including reforestation and watershed enhancements to 
        bring the acquired land and surrounding national forest land 
        into compliance with Forest Service standards and guidelines.
          (2) State and local conservation corps.--In implementing the 
        restoration program, the Secretary shall, when practicable, use 
        partnerships with State and local conservation corps, including 
        the Montana Conservation Corps, under the Public Lands Corps 
        Act of 1993 (16 U.S.C. 1721 et seq.).
    (h) Implementation.--The Secretary of Agriculture shall ensure that 
sufficient funds are made available to the Gallatin National Forest to 
carry out this Act.
    (i) Revocations.--Notwithstanding any other provision of law, any 
public orders withdrawing lands identified in the Option Agreement from 
all forms of appropriation under the public land laws are revoked upon 
conveyance of the lands by the Secretary.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this Act.
    2. Amend the title so as to read: ``To direct the Secretary 
of Agriculture and the Secretary of the Interior to exchange 
land and other assets with Big Sky Lumber Co. and other 
entities.''.

                                purpose

    S. 1719, as ordered reported, would authorize the Secretary 
of Agriculture and the Secretary of the Interior to exchange 
land and other assets with the Big Sky Lumber Company and other 
landowners.

                          background and need

    S. 1719 consolidates the checkerboard land ownership on the 
Gallatin National Forest in Montana. Consolidation with 
substantially reduce management costs on the Gallatin National 
Forest. By eliminating the checkerboard ownership pattern, the 
bill will also reduce disputes that currently arise over the 
location of property lines. The bill protects the Gallatin area 
from the threat of sprawling subdivisions. Checkerboard 
development, in which every other section of land is 
subdivided, diminishes pristine vistas as well as wildlife and 
recreation values. By consolidating these lands, S. 1719 
protects recreational opportunities, traditional historical 
uses, wildlife, fisheries, and the area's scenery.
    This legislation uses Federal timber receipts as one of the 
assets for balancing the land values in the exchange. To ensure 
that sufficient timber is available to generate receipts, local 
conservationists and sportsmen have committed to work 
proactively with the Forest Service to review timber sales and 
resolve environmental concerns during the preparation of the 
sale rather, than waiting to file appeals.

                          legislative history

    S. 1719 was introduced on March 6, 1998, by Senators Baucus 
and Burns. The Subcommittee on Forests and Public Land 
Management held a hearing on S. 1719 on March 25, 1998. At the 
business meeting on July 29, 1998, the Committee on Energy and 
Natural Resources ordered S. 1719, as amended, favorably 
reported.

            committee recommendation and tabulation of votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 29, 1998, by unanimous vote of a 
quorum present recommends that the Senate pass S. 1719, if 
amended as described herein.

                          committee amendment

    During consideration of S. 1719, the Committee adopted an 
amendment in the nature of a substitute. The amendment adds two 
findings regard Big Sky Lumber Company (BSL) and other 
landowners and a definition of Eastside National Forests. It 
revises several other definitions. The amendment incorporates 
new provisions for implementing the land exchange, and for 
generating sufficient timber receipts to acquire the identified 
land. It extends the time to acquire the Taylor Fork lands. It 
adds geothermal rights to those to be included in the title 
review. The amendment adds a new section directing the Wapiti 
and Eightmile/West Pine land exchanges and encourages a land 
exchange for section 1 of the Taylor Fork. The amendment also 
adds provisions concerning boundary adjustments, compliance 
with the Option Agreement, conveyance of timber, and 
revocations. Finally, it provides the Secretary additional time 
to complete amendment of the land and resource management 
plans.

                      section-by-section analysis

    Section 1 provides the short title of the bill.
    Section 2 lists the findings of the bill.
    Section 3 contains definitions.
    Section 4(a)(1) states that, notwithstanding any other 
provision of law, and subject to the terms and conditions of 
the Option Agreement, if Big Sky Lumber Company (BSL) offers 
title of approximately 54,000 acres of land to the Secretary, 
the Secretary will accept a warranty deed to the land and a 
quit claim deed to agreed to mineral interests. In addition, 
the Secretary shall convey to BSL fee title to the National 
Forest System land. It also directs the Secretary of the 
Interior to convey to BSL fee title to the BLM land.
    Paragraph (2) states that, if BSL places title to land in 
the Taylor Fork area in escrow acceptable to the Secretary, the 
Secretary shall place identified Federal land in the escrow. 
This paragraph further requires the Secretary to purchase the 
BSL land in the Taylor Fork area for $4.15 million plus 
interest, and to acquire land remaining in escrow with timber 
sale receipts if sufficient appropriated funds are not 
available.
    Paragraph (3) states that, as funds or timber sale receipts 
are received by BSL, deeds of an equivalent value of BSL Taylor 
Fork land held in escrow will be conveyed to the Secretary; and 
that escrow of deeds to an equivalent value of Federal lands 
will be released to the Secretary. This paragraph further 
states that, if funds or receipts are not provided, BSL will 
receive patent and deeds to an equivalent value of the federal 
land held in escrow.
    Subsection (b) requires that the property and other assets 
conveyed by BSL and the United States under subsection (a) be 
approximately equal in value and authorizes the Secretary to 
equalize the values if necessary.
    Subsection (c)(1) directs the Secretary to implement a 
timber sale program to generate sufficient timber receipts to 
purchase certain portions of the BSL land in the Taylor Fork 
area in compliance with applicable laws and Option Agreement.
    Paragraph (2) states that, in implementing the timber sale 
program, the Secretary shall: provide BSL with a proposed 
annual schedule of timber sales; deposit receipts generated in 
a special account; and adequately fund the program. This 
paragraph also states that receipts from the Gallatin National 
Forest shall not be subject to revenue-sharing payments as 
directed by the Act of May 23, 1908 (16 U.S.C. 500).
    Subsection (d)(1) requires the Secretary, pursuant to the 
Federal Land Policy and Management Act of 1976, to convey to 
BSL rights-of-way over National Forest System land for access 
to the land acquired by BSL.
    Paragraph (2) states that BSL shall convey to the United 
States rights-of-way over land owned by BSL.
    Subsection (e)(1) requires the Secretary to: review the 
title for the BSL land described in subsection (a); determine 
whether the applicable title standards have been satisfied; 
ensure that all draft conveyances and closing documents have 
been received and approved; and confirm that a current title 
commitment verifying compliance with applicable title standards 
has been issued. The Secretary must also determine that the 
title includes both the surface and subsurface estates, 
including mineral, timber, water, geothermal, and other 
interests.
    Paragraph (2) states that, if the quality of title does not 
meet Federal standards, the Secretary shall advise BSL 
regarding corrective actions. This paragraph further states 
that title to the subsurface estate will be conveyed by BSL to 
the Secretary in the same form that estate is received by BSL 
from Burlington Resources Oil & Gas Company Inc. and Glacier 
Park Company.
    Subsection (f) directs the Secretary to: accept the 
conveyance of land described in subsection (a) within 45 days 
after verifying quality of title; make timber receipts 
described in subsection (a)(3) available within five years from 
December 31 of the year of enactment, and complete the purchase 
of BSL land within 30 days of the date when funds are made 
available and quality of title verified.
    Subsection 5(a) requires the Secretary to enter into the 
Wapiti and Eightmile/West Pine land exchanges if the Secretary 
determines that the values of the lands to be exchanged are 
equal.
    Subsection (b) encourages the Secretary to pursue a land 
exchange with the owner of section 1 of the Taylor Fork land 
and requires the Secretary to report to Congress on 
implementation within 180 days of enactment.
    Section (6)(a)(1) states that, if the Secretary and BSL 
agree, minor corrections may be made, and supplemental 
provisions may be added to the Option Agreement.
    Paragraph (2) requires the Secretary to notify specified 
Congressional Committees and Members of Congress if changes are 
made to the Option Agreement.
    Paragraph (3) provides for the boundary adjustment of the 
Gallatin National Forest and contains a map reference. It 
states that this subsection does not limit the authority of the 
Secretary under the Weeks Act of 1911 and directs that, for 
purposes of the Land and Water Conservation Act of 1965, the 
boundaries of the Gallatin National Forest are those which 
existed on January 1, 1965.
    Subsection (b) specifies that the Option Agreement will be 
available for public inspection in the office of the Supervisor 
of the Gallatin National Forest and requires it to be filed 
with the county clerk of the specified Montana counties.
    Subsection (c) requires the Secretary of Agriculture, the 
Secretary of the Interior, and BSL to comply with the terms and 
conditions of the Option Agreement unless there is a conflict 
with this legislation.
    Subsection (d) requires the Secretary convey to BSL one 
million board feet of timber from roaded land in the Gallatin 
National Forest. This subsection further states that this 
timber will be treated as reserved timber under Department of 
Agriculture regulations and will not be considered as part of 
the appraisal value of the land exchanged under this Act.
    Subsection (e) states that all land conveyed to the United 
States under this Act shall be added to the Gallatin and 
Deerlodge National Forests.
    Subsection (f) requires the Secretary, within 30 days of 
completing the land-for-land exchange, to initiate a public 
process to amend the Gallatin and Deerlodge National Forest 
plans to integrate the acquired land into the plans and 
complete the amendment process within 540 days. This subsection 
further states that the amended management plan will not permit 
access to oil and gas rights or provide for exploration or 
development of oil and gas. Pending completion of the forest 
plan amendment, this subsection requires the Secretary to 
manage the acquired land under the standards and guidelines in 
the applicable land and resource management plans and maintain 
all existing public access.
    Subsection (g) requires the Secretary to implement a 
program, which includes reforestation and watershed 
enhancements, to bring the acquired land and surrounding 
national forest land into compliance with Forest Service 
standards and guidelines. This subsection also requires the 
Secretary, when practicable, to enter into partnerships with 
state and local conservation crops.
    Subsection (h) requires the Secretary to ensure that 
sufficient funds are made available.
    Subsection (i) states that, notwithstanding other laws, 
public orders withdrawing lands identified in the Option 
Agreement from all forms of appropriation under public land 
laws, are revoked upon conveyance of the lands.
    Section 7 authorizes appropriations.

                   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, September 11, 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. 1719, the Gallatin 
Land Consolidation Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Victoria V. 
Heid (for federal costs) and Marjorie Miller (for the state and 
local impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

S. 1719--Gallatin Land Consolidation Act of 1998

    Summary: S. 1719 would facilitate an exchange of assets 
between the federal government and several private parties 
involving land and timber in the state of Montana, federal 
timber receipts, and other federal cash payments.
    CBO estimates that implementing S. 1719 would increase 
discretionary outlays by about $9 million over the 1999-2003 
period, assuming appropriation of the necessary amounts. 
Because enacting S. 1719 would affect direct spending 
(including offsetting receipts), pay-as-you-go procedures would 
apply to the bill; however, CBO estimates no significant effect 
on direct spending over the 1999-2003 period.
    S. 1719 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
As a result of the authorized exchange, however, the state of 
Montana would lose certain federal payments over the 1999-2003 
period.
    Description of the bill's major provisions: S. 1719 
provides for an exchange of assets between the federal 
government and several private parties. According to the Forest 
Service, the agency has general authority under current law to 
complete such exchanges. However, S. 1719 would:
          Direct the Secretary of Agriculture to complete these 
        specific exchanges;
          Waive the requirement to comply with certain 
        environmental laws with regard to certain land to be 
        exchanged;
          Restrict the mandatory trust fund allocations that 
        could be deducted from certain timber receipts; and
          Reduce payments to the state of Montana from certain 
        receipts from the sale of timber from the Gallatin 
        National Forest otherwise mandated under current law.
            Exchange with Big Sky Lumber Company
    S. 1719 would authorize an exchange of assets between the 
federal government and Big Sky Lumber Company (BSL) involving 
land, timber, federal timber receipts, and other cash payments. 
The land and timber that would be exchanged are located in the 
state of Montana. The terms and conditions of the proposed 
exchange would be governed by an option agreement dated July 
29, 1998, subject to minor corrections and supplemental 
provisions if mutually agreed to by the Secretary of 
Agriculture and BSL.
    Under the proposed exchange, BSL would offer to convey to 
the federal government approximately 54,000 acres, including 
land in the Taylor Fork Area. In exchange, the Secretary would 
be required to convey to BSL about 31,000 acres of federal land 
and cash payments of almost $9 million from a combination of 
federal timber receipts and appropriated funds. The bill 
requires that the receipts from federal timber harvests be made 
available to BSL no later than the end of the fifth full 
calendar year after enactment.
    S. 1719 would specify a process for federal acquisition of 
some of BSL's Taylor Fork lands. Those lands comprise about 
7,360 acres out of the approximately 54,000 total acres to be 
conveyed by BSL to the Secretary. The bill provides that if BSL 
places in escrow title to 11.5 sections (a section consists of 
640 acres) of BSL land in the Taylor Fork area that is 
acceptable to the Secretary, the Secretary would be required to 
place in escrow title to four sections of federal land within 
the Gallatin National Forest.
    Of the BSL's Taylor Fork land in escrow, the bill would 
direct the Secretary to purchase 7.5 sections for about $4 
million using appropriated funds. The option agreement provides 
that any payments made after closing or December 15, 1998, 
whichever is later, shall include an interest payment. 
Discretionary outlays for Taylor Fork lands could not exceed 
$6.5 million.
    The bill would direct the Secretary to purchase the other 
four sections using federal timber receipts from certain 
national forests in Montana. The option agreement specifies 
that the amount of payments from timber receipts would be $4.5 
million. S. 1719 would direct the Secretary to implement a 
timber sale program in the Gallatin National Forest, and 
potentially other national forests in Montana, to generate 
sufficient timber receipts to purchase some of BSL's Taylor 
Fork land. Timber receipts from the sales in the Gallatin 
National Forestdedicated to completing the exchange with BSL 
would not be subject to the normal process of sharing 25 percent of the 
receipts with Montana.
    S. 1719 further provides that if appropriations are not 
available to purchase the BSL's Taylor Fork land put in escrow 
under the bill, the Secretary would be authorized to use timber 
receipts to acquire those lands. Therefore, the Secretary could 
purchase all of BSL's Taylor Fork land using receipts from 
federal timber harvests. If the Forest Service fails to 
generate sufficient timber receipts within five years to 
complete the exchanges, the bill would entitle BSL to receive 
the escrowed federal land and allow the exchange to be 
completed on a land-for-land basis.
    If the land, timber, and other assets exchanged by BSL and 
the United States are not approximately equal in value, as 
determined by the Secretary, the bill would permit the values 
to be equalized using one or more of several methods: 
additional federal appropriations or federal timber receipts to 
acquire BSL's Taylor Fork land, sale of Taylor Fork land to 
conservation groups, conveyance of additional federal land 
identified by the Forest Service, reservation of timber on 
BSL's Gallatin lands that currently have roads, withdrawal of 
BSL parcels from the land to be conveyed to the federal 
government (except for the Taylor Fork lands), and use of other 
public or private funds.
            Other land exchanges
    S. 1719 would direct the Secretary of Agriculture to enter 
into two land exchanges in the Gallatin National Forest if the 
private landowners are willing. The Wapiti land exchange would 
involve the conveyance of about 247 acres of federal land in 
exchange for about 320 acres of nonfederal land. The Eightmile/
West Pine land exchange would involve the conveyance of about 
644 acres of federal land in exchange for about 640 acres of 
nonfederal land.
    In addition, S. 1719 would encourage the Secretary to 
pursue a land exchange with the owner of section 1 of the 
Taylor Fork land, and would require the Secretary to report to 
the Congress on implementation of that exchange.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1719 is shown in the following table. 
The costs of this legislation fall within budget functions 300 
(natural resources and the environment) and 900 (general 
government).

                                    [By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                        1998      1999      2000      2001      2002      2003
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law:
    Budget authority \1\............................         4         0         0         0         0         0
    Estimated outlays...............................         0         4         0         0         0         0
Proposed Changes:
    Estimated authorization level...................         0         8         1         0         0         0
    Estimated outlays...............................         0         2         2         2         2         1
Spending Under S. 1719:
    Estimated authorization level \1\...............         4         8         1         0         0         0
    Estimated outlays...............................         0         6         2         2         2         1
                                           CHANGES IN DIRECT SPENDING
Estimated budget authority..........................         0   ( \2\ )   ( \2\ )   ( \2\ )   ( \2\ )   ( \2\ )
Estimated outlays...................................         0   ( \2\ )   ( \2\ )   ( \2\ )   ( \2\ )  ( \2\ )
----------------------------------------------------------------------------------------------------------------
\1\ The 1998 level is the amount appropriated for that year.
\2\ Less than $500,000.

            Basis of estimate
    Spending Subject to Appropriation. CBO estimates that 
implementing S. 1719 would costs about $9 million over the 
1999-2003 period, subject to appropriation of the necessary 
amounts.
    Restoration of land to be acquired. S. 1719 would require 
the Secretary of Agriculture to make reforestation and 
watershed enhancements on land acquired in the exchange, some 
of which has already been harvested. The Forest Service 
estimates that costs for such restoration work would total 
about $7 million over the next five years. This restoration 
work would not be necessary in the absence of the proposed 
exchange.
    Timber program on the Gallatin National Forest. S. 1719 
would require the Secretary to provide sufficient funds to the 
Gallatin National Forest to implement the bill, including 
operating a timber program that would generate the necessary 
timber receipts to complete the exchange. Based on information 
from the Forest Service, in the absence of this proposed 
exchange the Gallatin National Forest would operate a timber 
program of about 5 million board feet per year (excluding 
timber harvested for personal use). If this proposed exchange 
were implemented, the Forest Service would roughly double the 
timber program in the Gallatin Forest during fiscal years 1999 
and 2000. As a result, discretionary outlays to operate the 
timber sale program in the Gallatin also would increase.
    The Department of the Interior and Related Agencies 
Appropriations Act, 1999 (S. 2237), as approved by the Senate 
Committee on Appropriations, would provide about $700,000 of 
budget authority for the Gallatin National Forest to implement 
the larger timber program that would be necessary to complete 
the exchange with BSL. CBO estimates that an additional 
appropriation of the same amount also would be required in 
fiscal year 2000.
    Amending forest plans. The bill would provide for a public 
process to amend the forest plans for the Gallatin and 
Deerlodge National Forests to integrate the acquired lands, and 
it would require that the amended plans prohibit surface 
occupancy of the acquired lands for exploring or developing oil 
or gas. The Forest Service estimates that discretionary costs 
to amend the plans would total about $120,000 in fiscal year 
1999.
    Acquiring certain of BSL's Taylor Fork lands. The bill 
would direct the Secretary to purchase about 4,800 acres of 
BSL's Taylor Fork land for about $4 million, using appropriated 
funds. The option agreement provides that any payments made 
after closing or December 15, 1998, include an interest 
payment. The option agreement would set the maximum amount of 
such discretionary outlays for Taylor Fork lands at $6.5 
million.
    The fiscal year 1998 appropriation for Forest Service land 
acquisitions included about $1.5 million for land acquisition 
in the Gallatin National Forest. The Forest Service has 
requested permission to allocate another $2.5 million of the 
fiscal year 1998 appropriation for acquisition in the greater 
Yellowstone area. Assuming that $4 million of the fiscal year 
1998 appropriation is made available for this BSL exchange, 
funds would be available before December 15, 1998, and no 
additional appropriations for land acquisition would be 
required to purchase this Taylor Fork acreage. However, if land 
acquisition funds are not allocated to this purpose, if the 
Forest Service cannot generate sufficient timber receipts to 
complete the exchange with BSL, or if the option agreement is 
amended to provide for furtherpurchases of BSL land using 
discretionary funds, additional appropriations would be required.
    Other potential effects on discretionary spending. As 
discussed below, S. 1719 would dedicate to BSL a portion of the 
federal timber receipts that under current law would be 
deducted from gross receipts and spent out of mandatory trust 
funds. Such expenditures are typically for reforestation and 
wildlife projects, preparation for sales of salvage timber, and 
overhead costs. Depending on how the Forest Service chooses to 
manage the area, certain projects and related indirect costs 
could be eliminated. Overhead costs could be paid for out of 
other timber sales, or paid for from additional discretionary 
funding, subject to appropriation action. However, the Forest 
Service does not expect to request additional appropriations 
related to the change in allowable deductions from the timber 
receipts dedicated to the BSL exchange. For purposes of this 
estimate, CBO assumes that the agency would eliminate projects 
other than essential reforestation and cover any other overhead 
costs using existing funds, so that there would be no effect on 
either discretionary or direct spending from changes in forest 
management and related activities. In other words, based on 
information from the Forest Service, CBO expects that the new 
activities required by S. 1719 will be paid for by reducing 
costs for other activities--specifically, by completing fewer 
projects elsewhere on the affected Forest Service lands.
    The land exchange under S. 1719 would consolidate the 
current checkerboard pattern of federal and private land 
ownership in the area. The consolidation could reduce costs to 
administer the area, particularly for fire suppression and 
right-of-way easements. Any overall decrease in discretionary 
spending would depend on how the Forest Service uses 
appropriated funds and on future appropriation action by the 
Congress. But CBO estimates that no significant overall change 
in spending for general management activities would result from 
this consolidation.
            Direct spending (including offsetting receipts)
    S. 1719 would affect direct spending (including offsetting 
receipts) because of provisions affecting the amount of timber 
harvested on federal land, restrictions on receipts allocated 
to mandatory trust funds, and reduced payments to Montana from 
certain federal timber receipts. CBO estimates that these 
changes would have no significant effect on direct spending 
over the 1999-2003 period.
    Federal timber harvests. According to the Forest Service, 
the federal land that would be conveyed to BSL and other 
private parties under S. 1719 includes about $45 million board 
feet that, under current law, would likely be harvested over 
the next 20 years. It is unlikely that any of the timber on the 
land that would be acquired from BSL would be harvested by the 
Forest Service, at least over the next ten years. Therefore, 
enacting S. 1719 would reduce the volume of timber harvested on 
federal land over the next ten years. We estimate that the 
reduction in offsetting receipts from this forgone timber 
harvest would total roughly $2 million over the 1999-2003 
period.
    This change would have little net effect on direct spending 
because such harvests typically do not result in net income to 
the Treasury. That is, most or all of such collections are 
spent, resulting in little or no net budgetary impact. In fact, 
according to the Forest Service, timber sales on the Gallatin 
National Forest and other national forests in Montana often 
result in small net costs to the Treasury under current law. 
Virtually all timber receipts are available to the Forest 
Service and allocated to mandatory trust funds, such as the 
Knutson-Vandenberg reforestation trust fund, out of which the 
agency can spend any deposited receipts without further 
appropriation. In addition to such spending, an amount equal to 
25 percent of gross receipts is paid to Montana and another 10 
percent is allocated to the Roads and Trails Fund. The result 
is often no net receipts to the Treasury. Thus, transferring 
federal land with timber to BSL would probably have no 
significant net effect on direct spending over the 1999-2003 
period.
    Net receipts paid to BSL. S. 1719 provides that $4.5 
million in net receipts from federal timber harvests be paid to 
BSL to complete a portion of the exchange. The option agreement 
identifies timber in the Gallatin National Forest that could be 
used to complete the exchange, and the bill would allow timber 
harvests in certain other national forests in Montana to be 
used as well. The net effect on direct spending would be less 
than $1 million, however, because the payments to BSL would be 
offset by a combination of increased federal receipts from more 
timber sales and a reduction in Forest Service direct spending 
by eliminating certain projects that otherwise would be 
completed under current law.
    The bill would effectively dedicate to BSL that portion of 
federal timber receipts from the Gallatin National Forest that 
the Forest Service would, under current law, allocate to 
mandatory trust funds and spend for items other than essential 
planting. According to the Forest Service, virtually all timber 
receipts in the Gallatin National Forest are currently 
allocated to and later spent from mandatory trust funds, 
whereas under S. 1719, between 10 percent and 20 percent of 
these timber receipts would be set aside for essential 
planting. The remainder would be used to pay BSL.
    The projects other than essential planting that would be 
conducted under current law might be eliminated, paid for from 
other timber sales, or paid for out of additional 
appropriations, depending on how the Forest Service chooses to 
manage the area. In any case, the reductionin direct spending 
from mandatory trust funds would be offset by the payments to BSL to 
complete the exchange.
    S. 1719 would reduce direct spending slightly because it 
provides that no 25-percent payments be made to Montana based 
on timber harvested from the Gallatin National Forest and 
dedicated to the BSL exchange. The amount of forgone payments 
to the state would be no more than $250,000 for each fiscal 
year. CBO estimates the net effect on direct spending of 
enacting S. 1719 would total less than $1 million over the 
1999-2003 period.
    S. 1719 would allow BSL to retain one million board feet of 
timber on the land BSL would convey the federal government. 
This provision would not affect direct spending because the 
federal government would not harvest this privately owned 
timber under current law in any case.
    Pay-as-you-go considerations: The Balanced budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. CBO 
estimates that the net change in direct spending would total 
less than $1 million over the 1999-2003 period and would be 
less than $500,000 each year. The bill would not affect 
governmental receipts.
    Estimated impact on state, local, and tribal governments: 
S. 1719 contains no intergovernmental mandates as defined in 
UMRA. The bill would, however, reduce payments to the state of 
Montana that are based on timber sales within the state. CBO 
estimates that the state would lose payments totaling roughly 
$1 million over the 1999-2003 period. This loss would be 
partially offset by an increase in payments in lieu of taxes 
(PILT) made to the affected Montana counties. Enactment of this 
bill would not, in itself, result in an overall increase in 
PILT, but rather would increase the share of these payments 
going to the affected Montana counties. PILT is a discretionary 
program and the actual amount of PILT received by these 
counties, as well as other jurisdictions, will depend on the 
total amount appropriated by the Congress each year.
    Under current law, states generally receive an amount equal 
to 25 percent of timber harvest receipts from national forests 
within their borders. These receipts are to be used to benefit 
the counties in which the forests are located. Enactment of S. 
1719 would reduce payments to Montana both because national 
forest system lands would be transferred to private ownership 
and because the state would receive no payments from the 
harvests on the Gallatin National Forest dedicated to 
compensating BSL. The formula used to determine each county's 
share of PILT takes into account other federal payments 
benefitting those counties. As a result, the reduced payments 
from timber harvests would trigger an increase in PILT received 
by the affected counties.
    Estimated impact on the private sector: This bill would 
impose no new private-sector mandates as defined in UMRA.
    Comparison with other estimates: On July 28, 1998, the 
Forest Service completed an appraisal of the lands to be 
exchanged with BSL. Based on that appraisal, the value of the 
federal lands to be conveyed to BSL is a little less than $35 
million. The cash payments of a little less than $9 million 
bring the total value of the assets to be conveyed to BSL to a 
little more than $43 million. The value of the BSL lands that 
would be conveyed to the federal government is about $44 
million. According to the Forest Service, the difference of 
about $700,000 is equalized by the provision in the Option 
Agreement allowing BSL to reserve timber on BSL's land in the 
Gallatin Roaded Area that would be conveyed to the federal 
government.
    According to the Forest Service, the value of the lands to 
be exchanged in the Wapiti and Eightmile/West Pine land 
exchanges is approximately equal, with both the federal land 
and the private land that would be exchanged valued at about $2 
million.
    Because the federal budget is on a cash basis, the 
budgetary impact of the proposed exchange is measured by its 
effect on the government's cash flow, such as changes in 
offsetting receipts from timber harvesting and associated 
mandatory payments to states and other spending, discussed 
above.
    Estimate prepared by: Federal costs: Victoria V. Heid; 
impact on state, local, and tribal governments: Majorie Miller.
    Estimate approved by: Robert A. Sunshine, Deputy 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. 1719.
    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 the 
enactment of S. 1719.

                        executive communications

    Legislative reports from the Department of Agriculture and 
the Office of Management and Budget setting forth Executive 
agency recommendations on S. 1719 were unavailable at the time 
the report on S. 1719 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 Forest Service and the BLM at the 
Subcommittee hearing follows:

 Statement of Eleanor Towns, Forest Service, Department of Agriculture

    Mr. Chairman and members of the subcommittee, thank you for 
the opportunity to present the Administration's view on S. 
1719.
S. 1719, to authorize an exchange of land between the Secretary of 
        Agriculture and Secretary of the Interior and Big Sky Lumber 
        Company
    S. 1719 authorizes an exchange of assets between the 
Secretary of Agriculture and the Secretary of the Interior and 
Big Sky Lumber Company within the Gallatin, deerlodge, 
Flathead, Lolo and Lewis and Clark National Forests.
    While the Administration supports the objectives of S. 
1719, that will allow consolidation of lands and other 
interests in the Gallatin National Forest, Montana. We, 
however, cannot support the bill as introduced because of the 
language waiving applicable Federal laws for the land exchange 
components of the conveyance and the prohibition of judicial 
remedies to the public after timber harvest rights are granted.
    Significant public involvement, including ten public 
meetings, and analysis has been completed and documented in the 
``Report to the Montana Congressional Delegation on the 
Proposed Gallatin Land Consolidation between USDA Forest 
Service, USDI Bureau of Land Management, and Big Sky Lumber 
Co., in Montana'' that was provided to the delegation in 
September 1997. This report discusses the proposed conveyance 
along with its potential effects on natural resources, 
recreation, public access, and local economics.
    We also have a number of technical concerns with the 
legislation as drafted. These are addressed in the attached 
Supplemental Statement C. Among our concerns is the inclusion 
of the ``Option Agreement.'' The Option Agreement that is 
incorporated in the bill reflects Big Sky's offer to the United 
States Government but does not reflect the Government's 
response. At this time some provisions of the Option Agreement 
are unacceptable. We would propose that the bill be rewritten 
to reflect a negotiated agreement that should be signed prior 
to any bill becoming law. The negotiated agreement is required 
to assure Administration support if the pubic involvement 
concerns are addressed.
    S. 1719 provides for the full implementation of the 
Gallatin Range Consolidation and Protection Act of 1993 by 
authorizing the exchange of Federal and private land and 
mineral interests to enhance land management capabilities, 
recreational opportunities, and environmental and wildlife 
protection. The 1993 Act directed the Secretary to acquire by 
purchase or exchange certain, primarily checkerboard railroad 
grant, lands owned by Big Sky in the Gallatin Range, Porcupine 
area, Taylor Fork area and Bridger Mountains within the 
Gallatin National Forest.
    S. 1719 employs three distinct methods of land acquisition 
to accomplish its overall goal. First, there is a land-for-land 
exchange component between the Forest Service and Big Sky for 
which approximately 29,000 acres of Federal land would be 
offered. Second, there is a purchase component, whereby the 
Forest Service will acquire up to $6.5 million of Big Sky lands 
utilizing appropriated Land and Water Conservation and other 
funds. Third, there is a timber-for-land component whereby the 
Forest Service would grant up to 20 million board feet of 
Federal timber harvest rights to Big Sky and acquire and equal 
value share of the Big Sky lands in return. The timber values 
that may be granted amount to approximately $3.4 million. OMB 
advises that the bill would have a pay-as-you-go increase of 
this amount net the value of resources on the lands to be 
acquired. Resource value appraisals are still underway and 
shall be completed prior to completion of the negotiated 
agreement.
    Approximately 36,800 acres of land in the Taylor Fork, 
Gallatin Range and Bridger Mountains identified in the 1993 Act 
still remain to be acquired. In addition to these lands, S. 
1719 provides for the acquisition of approximately 17,000 acres 
lands in the Buck Ridge, Spanish Peaks, Bridgers, Bangtail and 
Tobacco Roots areas that also include significant wildlife 
habitats and wetlands, productive lands for future multiple use 
management and a broad spectrum of recreation opportunities. 
Upon full implementation of this Act, a total of approximately 
91,000 acres of public ownership within the Gallatin National 
Forest will have been consolidated. It is important to note 
that the Rocky Mountain Elk Foundation and Montana Fish, 
Wildlife and Parks Department have been key partners, along 
with Big Sky, in these consolidation efforts.
    Much of the land being acquired is within the Greater 
Yellowstone Grizzly Bear Recovery Zone. These lands contain 
resident grizzly bear populations and habitat components of 
over 11,000 acres and are considered essential for the recovery 
of grizzly bear. These lands also provide important habitat for 
elk, moose and mule deer which migrate from Yellowstone 
National Park. The consolidation of these lands would also 
enhance the conservation efforts to restore Westslope Cutthroat 
Trout within the GallatinRiver drainage and improve 
conservation of the Yellowstone Cutthroat Trout populations in the 
Bridger and Bangtail Mountains and Gallatin Range. Recreation 
opportunities, like hunting and fishing, hiking, camping, and 
backpacking are enhanced by improved access to bigger blocks of 
National Forest System lands.
    The Administration appreciates the efforts of the 
delegation in support of this conveyance. We would like to work 
with Congressman Hill, the rest of the Montana delegation, and 
the Committee to facilitate this land exchange while assuring 
that the public is involved in the decision making process.

               Statement of the Bureau of Land Management

    This bill would authorize an exchange of lands among the 
Secretary of Agriculture, Secretary of the Interior, and the 
Big Sky Lumber Company. The Department of the Interior supports 
this bill.
    The bill directs the Secretary of the Interior to convey to 
Big Sky, by patent, subject to valid existing rights and to 
such other terms, conditions, reservations, and exceptions as 
may be agreed to by the Secretary of the Interior and Big Sky, 
fee title to approximately 3,000 acres of public land. We 
provide a correction to this acreage in the Specific Comments 
of this Statement.


                               background


    The 1993 ``Gallatin Range Consolidation and Protection 
Act'' directed the Forest Service (FS) to acquire, by purchase 
and exchange, the Big Sky Lumber Company lands in the Gallatin 
Range, Porcupine, Taylor Fork, and Bridger Mountains. Since 
1993, two phases of land consolidation have been completed. In 
the first phase (Gallatin I), the public acquired by exchange 
about 37,700 acres of Big Sky Lumber Company lands in the 
Gallatin and Absaroka Ranges. In Gallatin II, the public 
acquired another 8,100 acres of Big Sky Lumber Company lands. 
These lands, located in the Porcupine and South Cottonwood 
areas, were acquired in a partnership among the FS, Rocky 
Mountain Elk Foundation, and State of Montana Fish, Wildlife 
and Parks.
    S. 1719, and the companion Bill H.R. 3381, provides for 
additional acquisition to meet the goals of the Gallatin Land 
Consolidation Act. The Big Sky Lumber Company is offering about 
54,200 acres of their lands for public acquisition in the 
Gallatin, Taylor Fork, Buck Ridge, Spanish Peaks, Bridger 
Mountains, and Bangtail Mountains. To complete this 
acquisition, a mixture of federal assets is proposed for 
exchange, including about 24, 144 acres of National Forest 
lands and 1,860 acres of public domain administered by the BLM. 
The FS will make additional compensations, which they can 
address.


                            general comments


    Passage of S. 1719 would:
    1. Eliminate checkerboard ownership throughout the National 
Forests of this region;
    2. Help conserve healthy ecosystems;
    3. Sustain productivity of a variety of resources;
    4. Protect critical habitats, including wetlands, winter 
range and grizzly bear habitat;
    5. Enhance recreation opportunities; and,
    6. Ensure public access on many roads and trails across 
private lands.


                           specific comments


    The BLM supports this legislation, but suggest one change 
to the bill. The acreage figure in the bill under Section 3 
Definitions, should be approximately 1,860 acres rather than 
the 3,000 acres shown. Negotiations are underway to increase 
the public land acres to 2,500 acres through the mutual 
agreement of all parties. The current 1,860 acres are the only 
lands identified to convey as part of this exchange by the 
Secretary of the Interior.


                               conclusion


    The Department of the Interior supports S. 1719, and we 
believe these actions will serve the public well. We support 
the Forest Service's efforts to improve public administration 
of National Forest lands.

                        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. 1719, as 
ordered reported.