[Senate Report 105-331]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 574
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-331
_______________________________________________________________________


 
              UTAH SCHOOLS AND LANDS EXCHANGE 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 H.R. 3830]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 3830) to provide for the exchange of 
certain lands within the State of Utah, having considered the 
same, reports favorably thereon without amendment and 
recommends that the Act, as amended, do pass.

                         Purpose of the Measure

    H.R. 3830, as ordered reported, would authorize a large 
scale land exchange to trade out a substantial portion of the 
State of Utah's School Trust inholdings within Federal 
conservation units, National Forests and Indian Reservations 
located in the State of Utah for valuable tracts of Federal 
land elsewhere in the State.

                          Background and Need

    When Utah was granted Statehood, the State was deeded lands 
from the public domain for the purpose of providing funds for 
the school children of Utah. Generally the State of Utah was 
granted the second, sixteenth, thirty-second, and thirty-sixth 
sections of each township.
    This system provided a broad sample of all of the lands in 
Utah, thus ensuring that the State would get some valuable 
mineral, agricultural, timber, and commercial lands, along with 
the less valuable lands. This would avoid the long and 
protracted valuation fight over where blocks of State trust 
lands ought to be located. It was anticipated that Utah would 
be like Kansas or Nebraska, where all of the Federal land in 
the area would soon become private. This would give the State 
valuable inholdings that private concerns would quickly 
acquire, thus creating a sizable trust fund for the school 
children.
    As it turned out, homestead settlement in Utah proved to be 
much more difficult than it was in Kansas or Nebraska. Before 
much of the lands could be acquired, the Federal Government 
started a policy shift toward retention of public lands. 
National Parks, National Forests, National Monuments, and 
Indian Reservations were created, effectively eliminating the 
possibility that these public lands would ever pass into 
private ownership. Instead of becoming valuable inholdings in 
developing privately owned areas, the State trust lands became 
small isolated tracts surrounded by lands which were very 
unlikely to ever be used for economic development.
    The school trust lands became a liability to Federal land 
managers and generated very little income for the State school 
trust. Over the years, several proposals to group the school 
trust lands into economically viable blocks have been proposed, 
but almost all have failed. Land exchanges require that swapped 
lands be of equal value; unfortunately, it has proved nearly 
impossible to resolve the valuation of these of lands. 
Valuation debates have gone on for years, and despite the good 
intentions of all parties concerned, very little has been 
solved. No one has benefitted from this deadlock, least of all 
the school children of Utah.
    Against this backdrop, Governor Mike Leavitt of Utah and 
Secretary Bruce Babbitt of the Department of the Interior 
developed a proposal for a sweeping land exchange that would 
trade out a substantial proportion of the State of Utah's 
inholding for valuable tracts of Federal land elsewhere in the 
State.

                          Legislative History

    H.R. 3830 was introduced in the House of Representatives by 
Congressman Hansen on May 12, 1998. A hearing on H.R. 3830 was 
held before the House Resources Committee Subcommittee on 
National Parks and Public Lands on May 19, 1998. The bill was 
favorably reported from the Resources Committee on June 17, 
1998. The House passed H.R. 3830, as reported, by voice vote on 
June 24, 1998.
    H.R. 3830 was referred to the Senate Committee on Energy 
and Natural Resources. The Subcommittee on Forests and Public 
Land Management held a hearing on H.R. 3830, and the Senate 
companion measure, S. 2146, on June 25, 1998.

                        Committee Recommendation

    At its open business meeting on July 29, 1998, the Senate 
Committee on Energy and Natural Resources ordered H.R. 3830 
favorably reported by a voice vote of a quorum present.

                      Section-By-Section Analysis

Section 1. Short title

    Utah Schools and Lands Exchange Act of 1998.

Sec. 2. Findings

    The findings in section 2 provide the context for the 
legislation. Principal among these findings is that the State 
of Utah owns 176,000 acres of surface estate and 24,165 acres 
of mineral interests within the boundaries of the Grand 
Staircase/Escalante National Monument and 200,000 acres of 
surface estate and 76,000 acres of mineral interests within 
units of the National Park System, National Forest System and 
Indian Reservations, and that development of these State 
resources would be incompatible with the purposes of these 
Federal units;
    Additional findings conclude that the United States and the 
State of Utah have reached agreement for the exchange of 
identified state owned inholdings for Federal lands outside 
identified Federal land management units, that the exchange is 
of approximate equal value, and that the exchange would be 
unlikely to trigger significant environmental controversy. 
Because the inholdings the Federal Government would receive are 
contained within conservation units, and become the Utah School 
Trust is required to extract financial benefit from its lands, 
this exchange will assist the Federal Government through the 
resolution of long-standing environmental conflicts and further 
the interests of the school children of Utah by putting revenue 
generating assets in the Trust.

Sec. 3. Ratification of the agreed exchange between the State of Utah 
        and the Department of the Interior

    Subsection 3(a) Agreement--Describes, in general, the scope 
of the Agreement between the United States and the State of 
Utah.
    Under the agreement the Federal Government receives the 
following State lands and interests:(1) approximately 38,500 
acres of land and 9,500 acres in mineral interests within the Navajo 
Indian Reservations; (2) approximately 8,980 acres of land along with 
mineral interest in an additional 480 acres lands within the Goshute 
Indian Reservations of; (3) 2,560 acres within the Alton Coal Field 
Tracts; (4) approximately 70,000 acres of inholdings within the 
National Forest including the: Wasatch-Cache National Forest, Sawtooth 
National Forest, Ashley National Forest, Caribou National Forest, 
Uintah National Forest, Manti-La Sal National Forest, Fishlake National 
Forest, Dixie National Forest, and the Desert Range Experimental 
Station; (5) all State lands within the exterior boundaries of the 
Grand Staircase-Escalante National Monument comprising approximately 
176,699 acres of land along with an additional 24,000 acres of mineral 
holdings; and (6) approximately 80,000 acres of State inholdings within 
units of the National Park System in Utah. Inholdings within the 
following National Parks and Recreation Areas are obtained by the 
Federal Government: Arches National Park, Capitol Reef National Park, 
Dinosaur National Monument, Glen Canyon National Recreation Area and 
Flaming Gorge National Recreation Area. The combined acreage of State 
lands to be acquired total over 376,000 acres, with an additional 
66,000 acres of mineral estate.
    Under the agreement the State of Utah will receive right, 
title, and interest to the following assets: (1) 640 acres of 
the Blue Mountain Telecommunications Site in Uintah County; (2) 
3,000 acres of land in and around Beaver Mountain Ski Resort; 
(3) 1,920 acres in the Warner Valley Tract in Washington 
County; (4) 33,208 acres in the Big Water Tract near Glen 
Canyon; (5) 12,678 acres in the Hatch Parcel within Garfield 
County; (6) mineral interests in coal located in the Cottonwood 
Tract up to the sum of $13,006,105 in royalty and rental 
income; (7) about 881 acres of land within the Westridge Coal 
Tract; (8) 2,600 acres within the Uintah County Tract; (9) 
2,000 acres within the Millard County Tract; (10) 58,000 acres 
within the Ferton Field; (11) 22.3 million tons of coal from 
the Mill Fork Tract; (12) approximately, 2,560 acres within the 
Dugout Canyon Tract in addition to about 2,560 acres in the 
Muddy Tract; (13) the coal underlying 9,600 acres located 
within the National Horn Coal Tract; (14) 4,000 acres of land 
within the Duchesne County Tract, and (15) $50,000,000 in cash. 
Mineral reserves to be conveyed to the State total 
approximately 156 million tons of coal reserves, and 185 
billion cubic feet of coal bed methane.
    General provisions of the Agreement requires that if the 
State disposes of all or any of the natural resources referred 
to in section 3(a) it shall be in done in a competitive basis. 
The State is also required to pay the United States a 
percentage of the bonus bid it receives when issuing leases 
under subparagraph (i) of he agreement, allow for 
administrative costs and direct how that money will be 
deposited.
    In addition, the agreement provides direction for the 
transfer of title between the United States and the State; 
directs that lands acquired by the United States within Federal 
conservation units are to be managed as part of those units; 
states that water rights appurtenant to exchange lands remain 
with those lands; gives direction that all grazing agreements 
in effect on exchanged lands be honored until expiration of 
those agreements; transfers mineral development rights in 
existence at the time of exchange along with the land; and 
specifies that all exchange parties shall remain responsible 
for hazardous waste to the extent it was responsible on the 
date of the exchange.
    Subsection 3(b) Ratification--Incorporates the Agreement 
into this title and ratifies the terms and conditions.

Sec. 4. Legal description

    States that the maps and legal descriptions related to the 
exchange will be on file with the Secretary of the Interior in 
Washington, D.C. and at the Bureau of Land Management State 
Director's office in Salt Lake City, Utah.

Sec. 5. Costs

    Directs all participants in the exchange process to pay for 
their own costs associated with the implementation of the Act.

Sec. 6. Repeal of Public Law 103-93 and Public Law 104-211

    Repeals Public Law 103-93 which contained a process for 
exchanging State inholdings within units of the National Park 
System, National Forest System, and Indian Reservations for 
other Federal lands in Utah, and Public Law 104-211 which 
provided for a land exchange and minor boundary adjustments 
within the Goshute Indian Reservation in Utah (this legislation 
expands on both of these repealed laws).

Sec. 7. Cash payment previously authorized

    As previously authorized in PL 103-93, upon completion of 
the exchanges contained withinthe Agreement, the United States 
shall pay Utah the sum of $50 million.

Sec. 8. Schedule for conveyances

    Sets a 70 day time frame for completing the exchanges 
authorized in the Agreement.

                   Cost and Budgetary Considerations

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

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 30, 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 H.R. 3830, the Utah 
Schools and Lands Exchange 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.

H.R. 3830--Utah Schools and Lands Exchange Act of 1998

    Summary: H.R. 3830 would ratify an agreement between the 
state of Utah and the Department of the Interior (DOI) 
regarding an exchange of certain state and federal lands, 
mineral interests, and a cash payment. The agreement supersedes 
and expands on an exchange provided for under the Utah Schools 
and Lands Improvement Act of 1993 (Public Law 103-93).
    Enacting H.R. 3830 could affect direct spending (including 
offsetting receipts); therefore, pay-as-you-go procedures would 
apply, but the aggregate effect over the next five years is not 
likely to be significant. Because the federal land to be 
offered to Utah does not currently generate significant mineral 
receipts and the extent of future development of that land is 
uncertain, the exchange would probably not result in a 
significant loss of mineral receipts within the next five 
years. Enacting H.R. 3830 would probably shift the timing of 
some payments between the federal government and Utah, but we 
do not expect a net change in payments over the 1999-2003 
period.
    H.R. 3830 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.
    Background: Under current law (Public Law 103-93), the 
Secretary of the Interior is authorized to acquire about 39,480 
acres of surface lands and about 49,460 acres of subsurface 
lands owned by the state, to be made part of the Navajo and 
Goshute Indian Reservations. In addition, the current law 
authorizes the Secretary to acquire about 156,000 acres of 
surface and subsurface land owned by the state within the 
boundaries of national parks and forests in Utah. Inexchange 
for acquiring these state lands, the law authorizes the Secretary to 
offer Utah certain specified coal tracts on federal land, about 3,640 
acres of commercial property, up to $50 million in mineral royalties 
from federal land within Utah, and additional lands as required to 
complete the exchange. This authorized exchange has not yet been 
completed, however, because of disagreements on valuation. Those 
disagreements are currently being contested in court.
    Description of the act's major provisions: H.R. 3830 would 
ratify an agreement entered into by the state of Utah and DOI 
on May 8, 1998, superseding and expanding on the exchanges 
authorized by Public Law 103-93.
    Under the agreement, the state of Utah would convey to the 
federal government about 376,739 surface acres and about 
442,719 subsurface acres of state land within the Grand 
Staircase-Escalante National Monument, the Navajo and Goshute 
Indian Reservations, and several national parks, recreation 
areas, and forests.
    In return, the federal government would convey to Utah 
about 138,647 acres of federal land with potential coal 
resources of roughly 160 million tons; the rights to $13 
million (plus interest) in potential future coal royalties and 
rent from federal coal in a particular tract that is so far 
undeveloped; potential coal bed methane resources of 185 
billion cubic feet; other potential mineral resources such as 
oil, gas, and limestone; commercial properties; and $50 million 
in cash upon completion of the exchange. Any future bonus bids 
generated from the state's sale of the mineral resources on 
federal land would be split equally between the state and the 
federal government, reduced by 50 percent of the state's 
administrative costs.
    Estimated cost to the Federal Government: Based on 
information from DOI and Utah, we do not expect that enacting 
H.R. 3830 would result in any significant costs to the federal 
government over the next five years. CBO expects that enacting 
this legislation would result in discretionary costs to 
implement the exchange (for activities such as revising maps 
and signage), but we estimate that such costs would total less 
than $500,000 per year. CBO expects that enacting H.R. 3830 
would have some effect on offsetting receipts, but we do not 
expect any significant loss of receipts over the next five 
years, and we have no basis for predicting either the magnitude 
or the timing of any such potential effects over the long term. 
The potential effects on direct spending are discussed below.
    Mineral resources.--The agreement would provide that Utah 
received 160 million tons of coal in certain tracts. In 
addition, the state would receive the rights to $13 million 
(plus interest) in potential rent and royalty income from the 
Cottonwood Tract if the state leases that area, whereas under 
the exchange authorized by Public Law 103-93 Utah would receive 
the rights to all unleashed coal in the Cottonwood Tract. None 
of the federal coal resources that would be offered to the 
state under the exchange are now leased or currently producing, 
and DOI cannot predict when such resources might generate 
offsetting receipts in the future, if at all.
    The agreement also would provide that Utah receive 185 
billion cubic feet of potential coal bed methane resources. 
According to DOI, most of those resources are not leased, and 
what is leased generates only a small amount of rent now. DOI 
considers production of these resources speculative and cannot 
estimate when or if they would produce receipts to the Treasury 
under current law.
    Because these federal mineral resources could potentially 
generate offsetting receipts over the 1999-2008 period if they 
remained in federal ownership, enacting this legislation could 
result in forgone receipts to the Treasury. We expect that 
there would be no significant loss over the next five years. 
Because we have no basis for predicting if and when these 
federal resources might be developed under current law, CBO 
cannot estimate any long-term loss of receipts that might occur 
under H.R. 3830.
    The proposed exchange also could increase federal mineral 
receipts relative to current law. One of the federal coal 
tracts authorized for exchange under Public Law 103-93, the 
Quitchupah (Convulsion Canyon) Tract, is now under lease; 
because the exchange under H.R. 3820 would exclude this federal 
tract, it could result in additional receipts to the federal 
government (relative to current law) if the land generates 
royalty receipts in the future. Furthermore, based on 
information provided by the Administration, we understand that 
the parties to the agreement intend that the state would waive 
its share of any receipts generated by the federal government 
on land acquired from Utah. Such a waiver could increase net 
receipts to the Treasury because under current law Utah would 
share in such receipts. However, because CBO has no basis for 
predicting when or if the federal government would develop such 
land, we cannot estimate the amount of any additional receipts.
    $50 million cash payment.--Under H.R. 3830, the federal 
government would pay $50 million to Utah upon completion of the 
exchange. This payment would replace one of the same amount 
authorized by Public Law 103-93. It seems likely that the $50 
million payment to Utah under Public Law 103-93 would 
eventually be made sometime during the 1999-2003 period, either 
under a settlement or pursuant to a court decision, but we 
cannot predict precisely when the payment would occur. Under 
H.R. 3830, the cash payment would likely occur in fiscal year 
1999. Therefore, CBO expects that enacting the legislation 
might result in a shift in the timing of the cash payment, but 
would not change the aggregate amount of cash payments over the 
next five years.
    Federal commercial properties.--Under the agreement, Utah 
would receive about 3,640 acres of federal land on which a ski 
resort and telecommunications site are located. Those 
properties were part of the exchange authorized under Public 
Law 103-93. Because it seems reasonably likely that these 
properties would eventually be exchanged with Utah under 
current law, this part of the exchange would have no budgetary 
effect relative to current law.
    Development properties.--According to DOI, none of the 
potential development properties that would be offered to Utah 
are under lease or generating receipts.
    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. Because 
enacting H.R. 3830 could affect direct spending (including 
offsetting receipts), pay-as-you-go procedures would apply. CBO 
expects that enacting H.R. 3830 would probably shift the timing 
of some payments between the federal government and Utah, and 
could result in some loss of offsetting receipts that would 
otherwise accrue to the government under current law, but we 
have no basis for predicting either the magnitude or the timing 
of any such potential effects.
    Estimated impact on State, local, and tribal governments: 
H.R. 3830 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments. The agreement ratified by this act was entered 
into voluntarily by the State of Utah. All costs and benefits 
accruing to the state would be the result of that agreement.
    Estimated impact on the private sector: This act would 
impose no new private-sector mandates as defined in UMRA.
    Previous CBO estimate: On June 23, 1998, CBO prepared a 
cost estimate for H.R. 3830 as ordered reported by the House 
Committee on Resources on June 17, 1998. The two versions of 
H.R. 3830 are identical, as are the two estimates.
    Estimate prepared by: Federal Costs: Victoria V. Heid; 
Impact on State, Local, and Tribal Governments: Marjorie 
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 H.R. 3830.
    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 H.R. 3830.

                        Executive Communications

    The testimony provided by the Department of the Interior at 
the Subcommittee hearing follows:

 Statement of Bruce Babbitt, Secretary, U.S. Department of the Interior

    Good morning, Mr. Chairman, and thank you for this 
opportunity to appear before you today concerning S. 2146, the 
Utah Schools and Lands Exchange Act of 1998. It has been my 
pleasure to join with Governor Mike Leavitt and the entire Utah 
delegation, both in Utah and here in Washington, to appear in 
support of this recently negotiated, comprehensive land 
exchange agreement between the Interior Department and the 
State of Utah.
    More than a decade ago, a great Utah governor had a vision 
of sweeping realignment of publicly owned land in Utah. Scott 
Matheson told anyone who would listen of the great benefits of 
this realignment for the State, its public schools, and for the 
United States as well. His vision, appropriately named Project 
BOLD, was ahead of its time. But it planted a seed that has 
today burst into flower. Less than two years ago, Governor 
Matheson's widow looked on as the President of the United 
States proclaimed the Grand Staircase-Escalante National 
monument. She heard the President acknowledge that within the 
borders of the Monument were 176,000 acres of State lands and 
heard his promise to work with the State to trade out those 
lands, to ensure that the school children of Utah will benefit 
from, and not be burdened by, the Grand Staircase-Escalante 
National Monument.
    Just a few weeks ago, it was my pleasure to stand with 
Norma Matheson and Mike Leavitt to celebrate the fulfillment of 
President Clinton's promise and the realization of Scott 
Matheson's dream. Many have sought this elusive goal, Mr. 
Chairman, but it took this Governor to make it happen. After 
long controversy and stalemate, Governor Leavitt and I agreed 
that the two of us should work together to break the deadlock 
and find solutions to Utah's inholdings problem.
    We agreed that both of us stood to gain by consolidating 
our lands for better management, and that both of us would be 
better off it we spent our time and money investing in the 
lands and the people instead of litigation and lawyers. We 
pledged to each other that in negotiating this deal, we would 
protect the environment, protect the taxpayers, and make the 
state school trust whole.
    I am pleased to appear before you today, Mr. Chairman, to 
report that we have met those goals. The President's promise 
has been kept, and sooner than most would have expected. In 
fact, the Governor and I have gone well beyond that promise to 
negotiate the resolution of the difficult state trust land 
issues beyond the borders of the Grand Staircase-Escalante 
National Monument.
    Many have noted the historic dimensions associated with 
reaching this agreement. As Governor of Arizona, I helped 
engineer some big, mutually beneficial state-federal land 
trades. But I've never done anything on this scale before. And 
as far as I know no one else has either, at least in the lower 
48 states. Passage and enactment of this legislation would mark 
the end of six decades of controversy over the issue of Utah's 
trust land inholdings within national parks, forests, 
monuments, and reservations.
    If not historic, Mr. Chairman, I think it is at least 
notable that Governor Leavitt and the entire Utah Congressional 
delegation have been joined by trust land administrators, 
environmental groups, and this Secretary of the Interior in a 
common position on the resolution of a major Western public 
lands issue. With this settlement, perhaps we have opened a 
positive new chapter in the federal-state relationship 
concerning public land management in Utah.
    The scope and complexity of the negotiations and the 
agreement itself were and are enormous. The fact that so many 
had tried for so long to no avail was a signal to both of us 
that the idea of going through the standard administrative 
channels, tract by tract, was going to be a prescription for 
further delay, litigation, and expense to both federal and 
state taxpayers. As a result, Governor Leavitt and I agreed 
that all issues would be on the table, and that the two of us 
would commit to negotiating a single, comprehensive, non-
segmentable agreement. We understood that while it would be 
possible to argue over the value of individual tracts, or 
whether one of us got a better deal on one small part of the 
exchange, it was critically important that both of us be able 
to agree at the conclusion of the negotiations that both 
parties were treated fairly and that we had in fact, to the 
satisfaction of both, arrived at an equal value exchange.
    The negotiations were spirited, and both sides fought hard 
for their interests. In my judgment, we succeeded. This is a 
fair deal, for both sides. I'm sure the Governor will speak to 
the important benefits in this agreement for the state 
trustlands administration and the school children of Utah. I would like 
to take a few moments to address the other two components of our 
concern, the environment and the taxpayers.
    I have three observations to make concerning the very 
important environmental considerations and understandings that 
are part of this agreement. First, the Utah State school trust 
lands in this deal include properties within the National Park 
System, the National Forest System, and the Grand Staircase-
Escalate National Monument. Because these are some of the most 
renowned lands in the United States, and because a mission of 
the state trust lands administration is to produce revenues for 
Utah's public schools, we knew that such an exchange would 
resolve many of the longstanding and inherent environmental 
conflicts occurring on these public lands.
    Second, the federal assets we made available for exchange 
with the state were selected with a great sensitivity to 
environmental concerns and a belief and expectation by both 
parties that the federal assets conveyed to the state would be 
highly unlikely to trigger significant environmental 
controversy. We both agreed at the outset of negotiations to 
avoid lands where we knew that any of the following existed or 
could be reasonably foreseen: significant wildlife resources, 
endangered species habitat, significant archaeological 
resources, areas of critical environmental concern, coal 
requiring surface mining, wilderness study areas, significant 
recreational areas, scenic areas, or any other lands known to 
raise significant environmental concerns of any kind.
    And third, we agreed that where the state obtains mineral 
interests as part of this agreement and the federal government 
retains the surface or other interest, any development that 
takes place will not conflict with established federal land and 
environmental management objectives. We further agreed that any 
such development will be fully subject to all of the 
environmental regulation applying to development of non-federal 
minerals on federal lands.
    Mr. Chairman, Governor Leavitt and I also agreed that the 
interest of the American taxpayer must be protected, and I am 
pleased to report that we have done so. This agreement was 
negotiated with the goal of producing a budget-neutral 
document, so that we could assure all Members of Congress that 
the budget we have all worked so hard to contain would not be 
affected. I want to reiterate that when all of the lands, 
interests, and money in the deal are taken into account, we 
have negotiated an approximately equal value exchange. Except 
for the $50 million cash payment, already authorized and scored 
under PL 103-93, the remainder of the properties comprise an 
asset exchange of speculative, commercial, and conservation 
lands. Both sides fought hard for the interests of their 
constituencies, and considerable energy went into guaranteeing 
that neither side was taking advantage of the other, that each 
felt they received a fair and equal deal when negotiations had 
concluded.
    Governor Leavitt and I were not working in a vacuum. 
Through the prior work of this Committee and the Utah 
Congressional delegation, the Governor and I already had the 
template to work from for dealing with the lands outside the 
Monument. This was Public law 103-93, signed by President 
Clinton, which had already identified many of the properties 
and the framework for carrying out such an exchange. Like 
Governor Mathersons' project BOLD, PL 103-93 helped chart the 
course that the two of us followed.
    I would like to similarly salute the School and 
Institutional Trust Lands Administration for developing the 
concept of a like-for-like exchange with the federal 
government, which helped reframe the debate over the Monument 
lands. Members of this Committee encouraged SITLA in the 
formulation of its proposal, which was widely circulated around 
the Congress, the environmental community, and the State of 
Utah.
    The essential elements of this agreement are contained in 
proposals and legislation that have been around for years; 
there is little, if anything new in the agreement. Building on 
these ideas, the governor and I were able to establish a 
connection of mutual trust and commitment to see this process 
through and conclude the long, difficult years of conflict and 
controversy in a way that protected the interests of both sides 
and will in fact benefit both parties.
    I want you to know, Mr. Chairman, that I will stand by this 
deal. However, I must also make it clear, as I have to the 
Governor and the delegation already, that Administration 
support is contingent on the passage of a clean bill, with no 
amendments, riders, or other objectionable legislation 
attached. While I believe this is a good deal for the 
environment, the taxpayers, and the school trust of Utah, I 
will have no hesitation about recommending a veto if any 
objectionable provisions are attached in this Congress. We 
negotiated to the limit of what we believe is acceptable, and 
any attempt to turn this vehicle into a Christmas tree for 
other legislation opposed by the Administration will 
unfortunately result in killing this agreement.
    With that understanding, I stand ready to help however I 
can, Mr. Chairman. The President's promise to negotiate in good 
faith has been kept. It is now up to Congress to deliver the 
legislation without substantive change to the President's desk. 
This concludes my prepared statement. I would be happy to 
answer any questions the Committee may have.

                        Changes in Existing Law

    In compliance with paragraph 11 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the Act H.R. 3830, as ordered reported, are shown as following 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

             UTAH SCHOOLS AND LANDS IMPROVEMENT ACT OF 1993

 AN ACT To provide for the exchange of certain lands with the State of 
                     Utah, and for other purposes.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

[SECTION 1. SHORT TITLE.

    [This Act may be cited as the ``Utah Schools and Lands 
Improvement Act of 1993''.

[SEC. 2. UTAH-NAVAJO LAND EXCHANGE.

    [(a) Additions to Reservation.--For the purpose of securing 
in trust for the Navajo Nation certain lands belonging to the 
State of Utah, which comprise approximately thirty-eight 
thousand five hundred acres of surface and subsurface estate, 
and approximately an additional nine thousand five hundred 
acres of subsurface estate, as generally depicted on the map 
entitled ``Utah-Navajo Land Exchange'', dated May 18, 1992, 
such lands are hereby declared to be part of the Navajo Indian 
Reservation in the State of Utah effective upon the completion 
of conveyance from the State of Utah and acceptance of title by 
the United States.
    [(b) Authorization.--The Secretary of the Interior is 
authorized to acquire through exchange those lands and 
interests in land described in subsection (a) which are owned 
by the State of Utah, subject to valid existing rights.

[SEC. 3. STATE LANDS WITHIN THE GOSHUTE INDIAN RESERVATION.

    [(a) Additions to Reservation.--For the purpose of securing 
in trust for the Goshute Indian Tribe certain lands belonging 
to the State of Utah, which comprise approximately nine hundred 
eighty acres of surface and subsurface estate, and an 
additional four hundred and eighty acres of subsurface estate, 
as generally depicted on the map entitled ``Utah-Goshute Land 
Exchange'', dated May 18, 1992, such lands are here by declared 
to be part of the Goshute Indian Reservation in the State of 
Utah effective upon the completion of conveyance from the State 
of Utah and acceptance of title by the United States.
    [(b) Authorization.--The Secretary of the Interior is 
authorized to acquire through exchange those lands and 
interests in land described in subsection (a) which are owned 
by the State of Utah, subject to valid existing rights.
    [(c) Other Land.--(1) The following tract of Federal land 
located in the State of Nevada, comprising approximately five 
acres more or less, together with all improvements thereon, is 
hereby declared to be part of the Goshute Indian Reservation, 
and shall be held in trust for the Goshute Indian Tribe: 
Township 30 North, Range 69 East, lost 5, 6, 7, 9, 11 and 14 of 
section 34.
    [(2) No part of the lands referred to in paragraph (1) 
shall be used for gaming or any related purpose.

[SEC. 4. IMPLEMENTATION.

    [The exchanges authorized by sections 2 and 3 of this Act 
shall be conducted without cost to the Navajo Nation and the 
Goshute Indian Tribe.

[SEC. 5. STATE LANDS WITHIN THE NATIONAL FOREST SYSTEM.

    [(a) Authorization.--The Secretary of Agriculture is 
authorized to accept on behalf of the United States title to 
the school and institutional trust lands by the State of Utah 
within units of the National Forest System, comprising 
approximately seventy-six thousand acres as depicted on a map 
entitled ``Utah Forest Land Exchange'', dated May 18, 1992.
    [(b) Status.--Any lands acquired by the United States 
pursuant to this section shall become a part of the national 
forest within which such lands are located and shall be subject 
to all the laws and regulations applicable to the National 
Forest System.

[SEC. 6. STATE LANDS WITHIN THE NATIONAL PARK SYSTEM.

    [(a) Authorization.--The Secretary of the Interior is 
hereby authorized to accept on behalf of the United States 
title to all school and institutional trust lands owned by the 
State of Utah located within all units of the National Park 
System, comprising approximately eighty thousand acres, located 
within the State of Utah on the date of enactment of this Act.
    [(b) Status.--Notwithstanding any other provision of law, 
all lands of the State of Utah within units of the National 
Park System that are conveyed to the United States pursuant to 
this section shall become a part of the appropriate unit of the 
National Park System, and shall be subject to all laws and 
regulations applicable to that unit of the National Park 
System.
    [(2) The Secretary of the Interior shall, as a part of the 
exchange process of this Act, compensate the State of Utah for 
the fair market value of five hundred eighty and sixty-four 
one-hundredths acres within Capitol Reef National Park that 
were conveyed by the State of Utah to the United States on July 
2, 1971, for which the State has never been compensated. The 
fair market value of these lands shall be established pursuant 
to section 8 of this Act.

[SEC. 7. OFFER TO STATE.

    [(a) Specific Offers.--Within thirty days after enactment 
of this Act, the Secretary of the Interior shall transmit to 
the State of Utah a list of lands, or interests in lands, 
within the State of Utah for Transfer to the State of Utah in 
exchange for the State lands and interests described in 
sections 2, 3, 5, and 6 of this Act. Such list shall include 
only the following Federal lands, of interests therein:
          [(1) Blue Mountain Telecommunications Site, fee 
        estate, approximately six hundred and forty acres.
          [(2) Beaver Mountain Ski Resort site, fee estate, 
        approximately three thousand acres, as generally 
        depicted on the map entitled ``Beaver Mountain Ski 
        Resort'' dated September 16, 1992.
          [(3) The unleased coal located in the Winter Quarters 
        Tract.
          [(4) The unleased coal located in the Crandall Canyon 
        Tract.
          [(5) All royalties receivable by the United States 
        with respect to coal leases in the Quitchupah 
        (Convulsion Canyon) Tract.
          [(6) The unleased coal located in the Cottonwood 
        Canyon Tract.
          [(7) The unleased coal located in the Soldier Creek 
        Tract.]
    (b) Additional Offers.--(1) In addition to the lands and 
interests specified in subsection (a), the Secretary of the 
Interior shall offer to the State of Utah a portion of the 
royalties receivable by the United States with respect to 
Federal geothermal, oil, gas, or other mineral interests in 
Utah which on December 31, 1992, were under lease and covered 
by an approved permit to drill or plan of development and plan 
of reclamation, were in production, and were not under 
administrative or judicial appeal.
    [(2) No offer under this subsection shall be for royalties 
aggregating more than 50 per centum of the total appraised 
value of the State lands described in sections 2, 3, 5, and 6.]
    (3) The Secretary shall make no offer under this subsection 
which would enable the State of Utah to receive royalties under 
this section exceeding $50,000,000.
    [(4) If the total value of lands and interests therein and 
royalties offered to the State pursuant to subsections (a) and 
(b) is less than the total value of the State lands described 
in sections 2, 3, 5, and 6, the Secretary shall provide the 
State a list of all public lands in Utah that as of December 
31, 1992, the Secretary, in resource management plans prepared 
pursuant to the Federal Land Policy and Management Act of 1976, 
had identified as suitable for disposal by exchange or 
otherwise, and shall offer to transfer to the State any or all 
of such lands, as selected by the State, in partial exchange 
for such State lands, to the extent consistent with other 
applicable laws and regulations.

[SEC. 8. APPRAISAL OF LANDS TO BE EXCHANGED.

    [(a) Equal Value.--All exchanges authorized under this Act 
shall be for equal value. No later than ninety days after 
enactment of this Act, the Secretary of the Interior, the 
Secretary of Agriculture, and the Governor of the State of Utah 
shall provide for an appraisal of the lands or interests 
therein involved in the exchange authorized by this Act. A 
detailed appraisal report shall utilize nationally recognized 
appraisal standards including, to the extent appropriate, the 
uniform appraisal standards for Federal land acquisition.
    [(b) Deadline and Dispute Resolution.--(1) If after two 
years from the date of enactment of this Act, the parties have 
not agreed upon the final terms of some or all of the exchanges 
authorized by this Act, including the value of the lands 
involved in some or all of such exchanges, notwithstanding any 
other provisions of law, any appropriate United States District 
Court, including but not limited to the United States District 
Court for the District of Utah. Central Division, shall have 
jurisdiction to hear, determine, and render judgment on the 
value of any and all lands, or interests therein, involved in 
the exchange.
    [(2) No action provided for in this subsection may be filed 
with the Court sooner than two years and later than five years 
after the date of enactment of this Act. Any decision of a 
District Court under this Act may be appealed in accordance 
with the applicable laws and rules.
    [(c) Adjustment.--If the State shares revenue from the 
selected Federal properties, the value of such properties shall 
be the value otherwise established under this section, less the 
percentage which represents the Federal revenue sharing 
obligation, but such adjust-ment shall not be considered as 
reflecting a property right of the State of Utah.
    [(d) Interest.--Any royalty offer by the Secretary pursuant 
to subsection 7(b) shall be adjusted to reflect net present 
value as of the effective date of the exchange. The State shall 
be entitled to receive a reasonable rate of interest at a rate 
equivalent to a five-year Treasury note on the balance of the 
value owed by the United States from the effective date of the 
exchange until full value is received by the State and mineral 
rights revert to the United States as prescribed by subsection 
9(a)(3).

[SEC. 9. TRANSFER OF TITLE.

    [(a) Terms.--(1) The State of Utah shall be entitled to 
receive so much of those lands or interests in lands and 
additional royalties described in section 7 that are offered by 
the Secretary of the Interior and accepted by the State as are 
equal in value to the State lands and interests described in 
sections 2, 3, 5, and 6.
    [(2) For those properties where fee simple title is to be 
conveyed to the State of Utah, the Secretary of the Interior 
shall convey, subject to valid existing rights, all right, 
title, and interest, subject to the provisions of subsection 
(b). For those properties where less than fee simple is to be 
conveyed to the State of Utah, the Secretary shall reserve to 
the United States all remaining right, title, and interest of 
the United States.
    [(3) All right, title, and interest in any mineral rights 
described in section 7 that are conveyed to the State of Utah 
pursuant to this Act shall revert to the United States upon 
removal of mineral equal in value to the value attributed to 
such rights in connection with an exchange under this Act.
    [(4) If the State of Utah accepts the offers provided for 
in this Act, the State shall convey to the United States, 
subject to valid existing rights, all right, title, and 
interest of the State to all school and institutional trust 
lands described in sections 2, 3, 5, and 6 of this Act. Except 
as provided in section 7(b), conveyance of all lands or 
interests in lands shall take place within sixty days following 
agreement by the Secretary of the Interior and the governor of 
the State of Utah, or entry of an appropriate order of judgment 
by the District Court.
    [(b) Inspections.--Both parties shall inspect all pertinent 
records and shall conduct a physical inspection of the lands to 
be exchanged pursuant to this Act for the presence of any 
hazardous materials as presently defined by applicable law. The 
results of those inspections shall be made available to the 
parties. Responsibility for costs of remedial action related to 
materials identified by such inspections shall be borne by 
those entities responsible under existing law.
    [(c) Conditions.--(1) With respect to the lands and 
interests described in section 7(a), enactment of this Act 
shall be construed as satisfying the provisions of section 
206(a) of the Federal Land Policy and Management Act of 1976 
requiring that exchanges of lands be in the public interest.
    [(2) Development of any mineral interest transferred to the 
State of Utah pursuant to this Act shall be subject to all 
laws, rules, and regulations applicable to development of non-
Federal mineral interests, including, where appropriate, laws, 
rules, and regulationsapplicable to such development within 
National Forests. Extraction of any coal resources described in section 
7(a) shall occur only through underground coal mining operations.
    [(3) Transfer of any mineral interests to the State of Utah 
shall be subject to such conditions as the Secretary shall 
prescribe to ensure due diligence on the part of the State of 
Utah to achieve the timely development of such resources.

[SEC. 10. LEGAL DESCRIPTIONS.

    [(a) In General.--As soon as practicable after the date of 
enactment of this Act, a map and legal description of the lands 
added to the Navajo and Goshute Indian Reservations and all 
lands exchanged under this Act shall be filed by the 
appropriate Secretary with the Committee on Natural Resources 
of the United States House of Representatives and the Committee 
on Energy and Natural Resources of the United States Senate, 
and each such map and description shall have the same force and 
effect as if included in this Act, except that the appropriate 
Secretary may correct clerical and typographical errors in each 
such legal description and map. Each such map and legal 
description shall be on file and available for public 
inspection in the offices of the Secretary of Agriculture and 
the Secretary of the Interior and the Utah offices of the 
appropriate agencies of the Department of the Interior and 
Department of Agriculture.]
    (b) Pilt.--Section 6902(b) of title 31, United States Code, 
is amended by striking ``acquisition.'' and inserting in lieu 
thereof ``acquisition, nor does this subsection apply to 
payments for lands in Utah acquired by the United States if at 
the time of such acquisition units, under applicable State law, 
were entitled to receive payments from the State for such 
lands, but in such case no payment under this chapter with 
respect to such acquired lands shall exceed the payment that 
would have been made under State law if such lands had not been 
acquired.''.
    [(c) Intent.--The lands and interests described in section 
7 are an offer related only to the State lands and interests 
described in this Act, and nothing in this Act shall be 
construed as precluding conveyance of other lands or interests 
to the State of Utah pursuant to other exchanges under 
applicable existing law or subsequent act of Congress. It is 
the intent of Congress that the State should establish a 
funding mechanism, or some other mechanism, to assure that 
counties within the State are treated equitably as a result of 
this exchange.
    [(d) Costs.--The United States and the State of Utah shall 
each bear its own respective costs incurred in the 
implementation of this Act.
    [(e) Definition.--As used in this Act, the term (1) 
``School and Institutional Trust Lands'' means those properties 
granted by the United States in the Utah Enabling Act to the 
State of Utah in trust and other lands which under State law 
must be managed for the benefit of the public school system or 
the institutions of the State which are designated by the Utah 
Enabling Act; and (2) ``Secretary'' means the Secretary of the 
Interior; unless specifically defined otherwise.

[SEC. 11. ADDITIONAL GOSHUTE INDIAN RESERVATION LANDS.

    [(a) Further Additions to Goshute Reservation.--In addition 
to the lands described in section 3, for the purpose of 
securing in trust for the Goshute Indian Tribe certain 
additional public lands and lands belonging to the State of 
Utah, which comprise approximately 8,000 acres of surface and 
subsurface estate, as generally depicted on the map entitled 
`Additional Utah-Goshute Exchange', dated July 1, 1994, such 
public lands and State lands are hereby declared to be part of 
the Goshute Indian Reservation in the State of Utah effective 
upon the completion of conveyance of the State lands from the 
State of Utah and acceptance of title by the United States.
    [(b) Authorization.--The Secretary of the Interior is 
authorized to acquire through exchange those lands and 
interests in land described in subsection (a) which are owned 
by the State of Utah, subject to valid existing rights.
    [(c) Application of Prior Provisions.--(1) Except as 
provided in paragraph (2), the remaining provisions of this Act 
which are applicable to the lands to be transferred to the 
Goshute Indian Tribe pursuant to section 3 shall also apply to 
the lands subject to this section.
    [(2) The Goshute Indian Tribe will be responsible for 
payment of the costs of appraisal of the lands to be acquired 
pursuant to this section, which costs shall be paid prior to 
the transfer of such lands.

[SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    [There are authorized to be appropriated such sums as are 
necessary to carry out this Act.]
                              ----------                              


                         ACT OF OCTOBER 1, 1996

 AN ACT To amend Public Law 103-93 to provide additional lands within 
  the State of Utah for the Goshute Indian Reservation, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

[SECTION 1. ADDITION OF CERTAIN UTAH STATE LANDS TO GOSHUTE INDIAN 
                    RESERVATION.

    [The Utah Schools and Lands Improvement Act of 1993 (107 
Stat. 995) is amended--
          [(1) by redesignating section 11 as section 12; and
          [(2) by inserting from section 10 the following new 
        section:

[``SEC. 11. ADDITIONAL GOSHUTE INDIAN RESERVATION LANDS.

    [``(a) Further Additions to Goshute Reservation.--In 
addition to the lands described in section 3, for the purpose 
of securing in trust for the Goshute Indian Tribe certain 
additional public lands and lands belonging to the State of 
Utah which comprise approximately 8,000 acres of surface and 
subsurface estate, as generally depicted on the map entitled 
`Additional Utah-Goshute Exchange', dated July 1, 1994, such 
public lands and State lands are hereby declared to be part of 
the Goshute Indian Reservation in the State of Utah effective 
upon the completion of conveyance of the State lands from the 
State of Utah and acceptance of title by the United States.
    [``(b) Authorization.--The Secretary of the Interior is 
authorized to acquire through exchange those lands and 
interests in land described in subsection (a) which are owned 
by the State of Utah, subject to valid existing rights.
    [``(c) Application of Prior Provisions.--(1) Except as 
provided in paragraph (2), the remaining provisions of this Act 
which are applicable to the lands to be transferred to the 
Gushute Indian Tribe pursuant to section 3 shall also apply to 
the lands subject to this section.
    [``(2) The Goshute Indian Tribe will be responsible for 
payment of the costs of appraisal of the lands to be acquired 
pursuant to this section, which costs shall be paid prior to 
the transfer of such lands.''.]