[Senate Report 105-401]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 623
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-401
_______________________________________________________________________


 
                INTERSTATE 90 LAND EXCHANGE ACT OF 1998

                                _______
                                

  October 9 (legislative day, October 2), 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. 2136]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2136) to provide for the exchange of 
certain land in the State of Washington, having considered the 
same, reports favorably thereon with an amendment and 
recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Interstate 90 Land Exchange Act of 
1998''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
          (1) certain parcels of private land located in central and 
        southwest Washington are intermingled with National Forest 
        System land owned by the United States and administered by the 
        Secretary of Agriculture as parts of the Mt. Baker-Snoqualmie 
        National Forest, Wenatchee National Forest, and Gifford Pinchot 
        National Forest.
          (2) the private land surface estate and some subsurface is 
        owned by the Plum Creek Timber Company, L.P. in an intermingled 
        checkerboard pattern, with the United States or Plum Creek 
        owning alternate square mile sections of land or fractions of 
        square mile sections;
          (3) the checkerboard land ownership pattern in the area has 
        frustrated sound and efficient land management on both private 
        and National Forest lands by complicating fish and wildlife 
        habitat management, watershed protection, recreation use, road 
        construction and timber harvest, boundary administration, and 
        protection and management of threatened and endangered species 
        and old growth forest habitat;
          (4) acquisition by the United States of certain parcels of 
        land that have been offered by Plum Creek for addition to the 
        Mt. Baker-Snoqualmie National Forest and Wenatchee National 
        Forest will serve important public objectives, including--
                  (A) enhancement of public access, aesthetics and 
                recreation opportunities within or near areas of very 
                heavy public recreational use including--
                          (i) the Alpine Lakes Wilderness Area;
                          (ii) the Pacific Crest Trail;
                          (iii) Snoqualmie Pass;
                          (iv) Cle Elum Lake, Kachess Lake and 
                        Keechulus Lake; and
                          (v) other popular recreation areas along the 
                        Interstate 90 corridor east of the Seattle-
                        Tacoma Metropolitan Area;
                  (B) protection and enhancement of old growth forests 
                and habitat for threatened endangered and sensitive 
                species, including a net gain of approximately 28,500 
                acres of habitat for the northern spotted owl;
                  (C) consolidation of National Forest holdings for 
                more efficient administration and to meet a broad array 
                of ecosystem protection and other public land 
                management goals, including net public gains of 
                approximately 283 miles of stream ownership, 14 miles 
                of the route of the Pacific Crest Trail, 20,000 acres 
                of unroaded land, and 7,360 acres of riparian land; and
                  (D) a significant reduction in administrative costs 
                to the United States through--
                          (i) consolidation of Federal land holdingsfor 
more efficient land management and planning;
                          (ii) elimination of approximately 300 miles 
                        of boundary identification and posting;
                          (iii) reduced right-of-way, special use, and 
                        other permit processing and issuance for roads 
                        and other facilities on National Forest System 
                        land; and
                          (iv) other administrative cost savings;
          (5) Plum Creek has selected certain parcels of National 
        Forest system land that are logical for consolidation into Plum 
        Creek ownership utilizing a land exchange because the parcels--
                  (A) are intermingled with parcels owned by Plum 
                Creek; and
                  (B)(i) are generally located in less environmentally 
                sensitive areas than the Plum Creek offered land; and
                  (ii) have lower public recreation and other public 
                values than the Plum Creek offered land;
          (6) time is of the essence in consummating a land exchange 
        because delays may force Plum Creek to road or log the offered 
        land and thereby diminish the public values for which the 
        offered land is to be acquired; and
          (7) it is in the public interest to complete the land 
        exchange at the earliest practicable date so that the offered 
        land can be acquired and preserved by the United States for 
        permanent public management, use, and enjoyment.
    (b) Purpose.--It is the purpose of this Act to further the public 
interest by authorizing, directing, facilitating, and expediting the 
consummation of the Interstate 90 land exchange so as to insure that 
the offered land is expeditiously acquired for permanent public use and 
enjoyment.

SEC. 3. DEFINITIONS.

    In this Act:
          (1) Offered land.--The term ``offered land'' means all right, 
        title and interest in land described in section 4(b) to be 
        conveyed into the public ownership of the United States under 
        this Act.
          (2) Plum creek.--The term ``Plum Creek'' means Plum Creek 
        Timber Company, L.P., a Delaware Limited Partnership, or its 
        successors, heirs, or assigns.
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.
          (4) Selected land.--The term ``selected land'' means all 
        right, title and interest in land described in section 4(c) to 
        be conveyed into the private ownership of Plum Creek under this 
        Act.

SEC. 4. LAND EXCHANGE.

    (a) Condition and Conveyance of Offered Land.--The exchange 
directed by this section shall be consummated if, not later than 270 
days after the date of enactment of this Act, Plum Creek conveys 
acceptable title to the Secretary in and to the following offered land:
          (1) Certain land comprising approximately 8,340 acres and 
        located within the exterior boundaries of the Mt. Baker-
        Snoqualmie National Forest, Washington, as generally depicted 
        on a map entitled ``Interstate 90 Land Exchange'', dated 
        September, 1998; and
          (2) Certain land comprising approximately 53,576 acres and 
        located within or adjacent to the exterior boundaries of the 
        Wenatchee National Forest, Washington, as generally depicted on 
        a map entitled ``Interstate 90 Land Exchange'', dated 
        September, 1998.
    (b) Conveyance of Selected Land by the United States.--Upon receipt 
of acceptable title to the offered land, the Secretary shall 
simultaneously convey to Plum Creek all right, title and interest of 
the United States, subject to valid existing rights, in and to the 
following selected land:
          (1) Certain land administered, as of the date of enactment of 
        this Act, by the Secretary of Agriculture as part of the Mt. 
        Baker-Snoqualmie National Forest, Washington, and comprising 
        approximately 6,137 acres, as generally depicted on a map 
        entitled ``Interstate 90 Land Exchange'', dated September 1998.
          (2) Certain land administered, as of the date of enactment of 
        this Act, by the Secretary of Agriculture as part of the 
        Wenatchee National Forest, Washington, and comprising 
        approximately 5,197 acres, as generally depicted on a map 
        entitled ``Interstate 90 Land Exchange'', dated September, 
        1998.
          (3) Certain land administered, as of the date of enactment of 
        this Act, by the Secretary of Agriculture as part of the 
        Gifford Pinchot National Forest, Washington, and comprising 
        approximately 5,601 acres, as generally depicted on a map 
        entitled ``Interstate 90 Land Exchange'', dated September, 
        1998.

SEC. 5. EXCHANGE VALUATION, APPRAISAL AND EQUALIZATION.

    (a) Equal Value Exchange.--
          (1) In general.--The values of the offered and selected 
        land--
                  (A) shall be equal; or
                  (B) if the values are not equal, shall be equalized 
                as set forth in subsections (e)-(g).
          (2) Appraisals.--The values of the offered land and selected 
        land shall be determined by appraisals utilizing nationally 
        recognized appraisal standards, including applicable provisions 
        of the Uniform Appraisal Standards for Federal Land 
        Acquisitions (1992), the Uniform Standards of Professional 
        Appraisal Practice, and section 206(d) of the Federal Land 
        Policy and Management Act of 1976, as amended (43 U.S.C. 
        1716(d)).
          (3) Approval by the secretary.--The appraisals, if not 
        already completed by the date of enactment of this Act, shall 
        be completed and submitted to the Secretary for approval not 
        later than 180 days after the date of enactment of this Act: 
        Provided, however, That all timber activities cease no later 
        than November 30, 1998.
    (b) Appraisal Assumption.--
          (1) Findings.--Congress finds that--
                  (A) many of the parcels of offered land and selected 
                land are located within areas that have been or may be 
                designated as critical habitat for species determined 
                to be threatened or endangered under the Endangered 
                Species Act of 1973 (16 U.S.C. 1531 et. seq.); and
                  (B) such a designation can make traditional 
                appraisals of land difficult absent specific guidance 
                from Congress due to present and future uncertainties 
                relating to the duration, scope and nature of 
                restrictions that may be imposed on the offered or 
                selected land as a result of such designation with 
                respect tofuture timber harvest and other development 
activities.
          (2) Appraisal at highest and best use value.--In order to 
        ensure the equitable and uniform appraisal of both the offered 
        and selected lands directed for exchange by this Act, all 
        appraisals under subsection (a) shall determine the highest and 
        best use of the offered and selected land. The appraisal of the 
        timber estate shall be in accordance with applicable provisions 
        of the Washington State Forest Practices Act and rules and 
        regulations thereunder, including alternative measures for 
        protecting critical habitat pursuant to a habitat conservation 
        plan as provided in Washington Administrative Code 222-16-080-
        (6).
    (c) Appraisal Period.--After the final appraised values of the 
offered and selected lands, or any portion of the land, has been 
approved by the Secretary or otherwise determined under Section 206(d) 
of the Federal Land Policy and Management Act (43 U.S.C. 1716(d)), the 
value shall not be reappraised or updated before consummation of the 
land exchange, except for any adjustments under subsection 6(g).
    (d) Equalization if Surplus of Offered Land.--
          (1) In general.--If the final appraised value of the offered 
        land exceeds the final appraised value of the selected land, 
        Plum Creek shall delete offered land parcels from the exchange 
        in the exact order each land Section (or offered portion 
        thereof) is listed in paragraph (2) until the values are 
        approximately equal.
          (2) Order of deletion.--Offered land deletions under 
        paragraph (1) shall be made in the following order:
                  (A) Township 22 North, Range 13 East, Section 31, 
                Willamette Median;
                  (B) Township 21 North, Range 11 East, Section 35;
                  (C) Township 19 North, Range 11 East, Section 35;
                  (D) Township 19 North, Range 12 East, Section 1;
                  (E) Township 20 North, Range 11 East, Sections 1 and 
                13;
                  (F) Township 19 North, Range 12 East, Section 15;
                  (G) Township 20 North, Range 11 East, Section 11;
                  (H) Township 21 North, Range 11 East, Section 27;
                  (I) Township 19 North, Range 13 East, Sections 27 and 
                15;
                  (J) Township 21 North, Range 11 East, Sections 21 and 
                25;
                  (K) Township 19 North, Range 11 East, Section 23;
                  (L) Township 19 North, Range 13 East, Sections 21, 9 
                and 35;
                  (M) Township 20 North, Range 12 East, Sections 35 and 
                27;
                  (N) Township 19 North, Range 12 East, Section 11;
                  (O) Township 21 North, Range 11 East, Section 17.
    (e) Equalization if Surplus of Selected Land.--
          (1) In general.--If the final appraised value of the selected 
        land exceeds the final appraised value of the offered land the 
        Secretary shall delete selected land parcels from the exchange 
        in the exact order each land Section (or selected portion 
        thereof) is listed in paragraph (2) until the values are 
        approximately equal.
          (2) Order of deletion.--Selected land deletions under 
        paragraph 1 shall be made in the following listed order:
                  (A) Township 21 North, Range 14 East, Sections 28, 
                22, 36, 26 and 16, Williamette Meridian;
                  (B) Township 18 North, Range 15 East, Sections 13, 12 
                and 2,
                  (C) Township 18 North, Range 15 East, Section 1;
                  (D) Township 18 North, Range 15 East, Section 17;
                  (E) Township 20 North, Range 11 East, Section 30;
                  (F) Township 19 North, Range 11 East, Section 6; and
                  (G) Township 20 North, Range 11 East, Section 32.
    (f) Once the values of the offered and selected lands are equalized 
to the maximum extent practicable under subsection (d) or (e), any 
balance due the Secretary or Plum Creek shall be made throughcash 
equalization payments under subsection 206(b) of the Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 1716(b).
    (g) Use of Proceeds by the Secretary.--The amount of any cash 
equalization payment received by the Secretary under this Section shall 
be retained by the Secretary and shall be used by the Secretary until 
fully expended to purchase land from willing sellers in the State of 
Washington for addition to the National Forest System.

SEC. 6. MISCELLANEOUS PROVISIONS.

    (a) Status of Land After Exchange.--
          (1) Land acquired by the secretary.--
                  (A) In general.--Land acquired by the Secretary under 
                this Act shall become part of the Mt. Baker-Snoqualmie, 
                Gifford Pinchot or Wenatchee National Forests, as 
                appropriate.
                  (B) Modification of boundaries.--If any land acquired 
                by the Secretary lies outside the exterior boundaries 
                of the national forests identified in subparagraph (A), 
                the boundaries of the appropriate national forest are 
                hereby modified to include such land.
                  (C) Management.--Land acquired by the Secretary under 
                this Act shall be managed in accordance with the Act of 
                March 1, 1911 (commonly known as the ``Weeks Law''), 
                and with the other laws, rules, regulations and 
                guidelines applicable to the National Forest System.
          (2) Land acquired by plum creek.--Land acquired by Plum Creek 
        under this Act shall become private land for all purposes of 
        law, unless the deed by which conveyance is made to Plum Creek 
        contains a specific reservation.
    (b) Access to Land Acquired by Plum Creek.--
          (1) Finding.--Congress finds that Plum Creek will generally 
        have adequate post-exchange access to the selected land over 
        existing primary, secondary, or other national forest routes, 
        or over existing Plum Creek roads.
          (2) Intention.--It is the intention of Congress that Plum 
        Creek have immediate access to all lands it acquires under this 
        Act.
                  (A) Access within cost share agreement areas.--Within 
                Cost Share Construction and Use Agreement Areas, the 
                United States shall grant Plum Creek, simultaneous with 
                the transfer of the selected land to Plum Creek, road 
                access easements in accordance with the terms and 
                conditions of said cost share construction and use 
                agreements for the roads identified on the map entitled 
                ``Plum Creek Access Road Needs'', dated September 1998.
                  (B) Access outside cost share agreement areas.--
                Outside of Cost Share Construction and Use Agreement 
                Areas, the United States shall grant Plum Creek, 
                simultaneous with the transfer of the selected land to 
                Plum Creek, road access easements in a form set out in 
                Forest Service Handbook 2709.12, 35, subject to the 
                Secretary's rules and regulations 36 CFR 251, subpart 
                B.
    (c) Access to Lands Acquired by United States.--It is the intent of 
Congress that the Secretary have post-exchange access to the land 
acquired by the United States under this Act. Within Cost Share 
Construction and Use Agreement Areas, Plum Creek shall grant the 
Secretary, simultaneous with the transfer of the offered land, road 
access easements in accordance with the terms and conditions of said 
Cost Share Construction and Use Agreements. Outside of Cost Share 
Construction and Use Agreement Areas, Plum Creek shall grant the 
Secretary, simultaneous with the transfer of the offered land, road 
access easements in a format acceptable to the Secretary.
    (d) Timing.--It is the intent of Congress that the land exchange 
authorized and directed by this Act be consummated no later than 90 
days after the date on which Plum Creek conveys title acceptable to the 
Secretary, unless the Secretary and Plum Creek mutually agree to extend 
the consummation date.
    (e) Withdrawal of Selected Land.--Effective upon the date of 
enactment of this Act, all selected land identified for exchange to 
Plum Creek under Section 4(c) is hereby withdrawn from all forms of 
entry and appropriation under the public land laws (including the 
mining laws) until such time as the exchange is consummated, or until a 
particular parcel or parcels are deleted from the exchange under 
section 5(e).
    (f) Withdrawal of Cle Elum River Lands.--Lands acquired by the 
Secretary under this Act that are located in Township 23 North, Range 
14 East, and Township 22 North, Range 14 East, Willamette Meridian, 
shall upon the date of their acquisition be permanently withdrawn from 
all forms of entry and appropriation under the public land laws, 
including the mineral, mineral leasing and hardrock mining laws.
    (g) Parcels Subject to Historic or Cultural Resource 
Restrictions.--
          (1) Report to plum creek.--No later than 180 days after 
        enactment of this Act, the Secretary shall complete 
        determinations and consultation under the National Historic 
        Preservation Act and submit a report to Plum Creek listing by 
        exact aliquot part description any parcel or parcels of 
        selected land on which use restrictions or mitigation 
        requirements will be imposed. Such report shall include an 
        exact description of each restriction or mitigation action 
        required.
          (2) Plum creek response.--Prior to making an offer to 
        exchange under section 4(a) of this Act, Plum Creek shall 
        notify the Secretary as to: (i) those parcels it will accept 
        subject to the identified use restrictions or mitigation 
        requirements; and (ii) those parcels it will not accept because 
        the restrictions or mitigation requirements are deemed by Plum 
        Creek to be an unacceptable encumbrance on the land.
          (3) Parcel deletion.--The Secretary shall delete from the 
        selected land those parcels identified by Plum Creek as 
        unacceptable for conveyance under paragraph (2).
          (4) Appraisal adjustment.--The fair market value of any 
        parcels deleted under paragraph (3), or any modification in 
        fair market value caused by the use restrictions or mitigation 
        requirements on land accepted by Plum Creek, shall be based on 
        their contributory value to the final approved appraised value 
        of the selected land.

                                purpose

    The purpose of S. 2136, as ordered reported, is to 
authorize, direct, facilitate, and expedite the consummation of 
the Interstate 90 land exchange so as to ensure that the 
private land is expeditiously acquired for permanent public use 
and enjoyment.

                          background and need

    The proposed Interstate 90 land exchange represents the 
culmination of many years of efforts by the U.S. Forest 
Service, the Plum Creek Timber Company (Plum Creek) and 
interested conservation groups to consolidate checkerboard land 
holdings along and near the Interstate 90 corridor east of the 
Seattle-Tacoma Metropolitan Area. The Interstate 90 corridor is 
rich in wildlife, recreation, watershed, scenic, and other 
values. It also receives heavy public visitation.
    Past land management experience by Plum Creek and the 
Forest Service in this area, where the Forest Service and Plum 
Creek own alternate square mile sections of land in a 
``checkerboard'' pattern, can frustrate sound and efficient 
land management. In particular, different goals and logging 
standards applicable to private and Federal lands, requests for 
road access and easements over national forest lands, and other 
potential development activities have resulted in a great deal 
of controversy, appeals, and litigation pertaining to use of 
both the Plum Creek and National Forest lands in the area.
    The above mentioned problems have been exacerbated by the 
fact that popular recreation areas such as Snoqualmie Pass, 
Keechelus, Kachess and Cle Elum Lakes, and the Alpine Lakes 
Wilderness Area all lie either within or near the checkerboard 
lands. In addition, the President's 1993 Northwest Forest Plan 
has identified the I-90 corridor as a critical connective link 
in the north-south movement of the Northern Spotted Owl and 
other species in the Cascade Range. The Northwest Forest Plan 
directed that one goal of future land management is 
preservation and reestablishment of a late-successional forest 
in the area. The goal of preserving or reestablishing a late 
successional (old growth) forest in the area would conflict 
with private checkerboard ownership of land by a timber company 
whose goals are the utilization of its land base for long-term 
timber production and harvest.
    These issues have prompted the effort to achieve 
consolidation of the checkerboard lands. Numerous discussions 
and efforts have occurred over the past several decades to 
achieve a land consolidation. The formal exchange process began 
in May 1995 when the Forest Service and Plum Creek signed a 
Memorandum of Understanding to initiate a land exchange 
feasibility study and enter into a land exchange effort. This 
process resulted in the release of a Draft Environmental Impact 
Statement (DEIS) on the proposed exchange in April 1998.
    The overall goal of the legislated exchange is to insure 
that the land exchange will be completed at the earliest 
possible date by directing its consummation by law. This will 
provide certainty that the exchange will be expeditiously 
completed. The lands contain large amounts of roadless land and 
old growth forest which Plum Creek may be forced to log if an 
exchange cannot be completed in a timely manner.

                          legislative history

    S. 2136 was introduced on June 5, 1998, by Senator Gorton. 
The Subcommittee on Forests and Public Land Management held a 
hearing on S. 2136 on July 22, 1998. At the business meeting on 
September 23, 1998, the Committee on Energy and Natural 
Resources ordered S. 2136, as amended favorably reported.

            committee recommendation and tabulation of votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on September 23, 1998, by unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
2136, if amended as described herein.

                          committee amendment

    During consideration of S.2136, the Committee adopted an 
amendment in the nature of a substitute. The amendment revises 
several findings and definitions and adds language regarding 
conveyance of acceptable title. It adjusts the designated land 
involved in the exchange. The amendment stipulates a date for 
cessation of all Plum Creek timber harvest activities. It 
strikes a provision on dispute resolution regarding valuation 
of the lands. Several clarifying revisions are made to the 
process to be used in conducting appraisals. The order of 
deletion of lands to equalize values is modified. The amendment 
adds provision that allows cash equalization payments. The 
amendment clarifies the status of lands upon completion of the 
exchange. The amendment adds new language regarding access to 
acquired land, withdrawal of land, and parcels subject to 
historic or cultural resource restrictions.

                      section-by-section analysis

    Section 1 entitles the bill the ``Interstate 90 Land 
Exchange Act of 1998''.
    Section 2 contains findings and purposes.
    Section 3 contains definitions.
    Section 4(a) states that the exchange shall be consummated 
if Plum Creek conveys the identified ``offered'' lands to the 
United States within 270 days of enactment of this Act.
    Subsection (b) identifies the lands selected for exchange 
by the Secretary.
    Section 5(a) states that the values of the lands to be 
exchanged must be equal, as determined through traditional 
Federal appraisal procedures as amended.
    Paragraph (3) mandates that the appraisals be completed and 
submitted to the Secretary for approval not later than 180 days 
after the date of enactment of this Act provided that all 
timberharvest ceases on the offered or selected lands not later 
than November 30, 1998.
    Subsection (b) requires that all appraisals determine the 
highest and best use of the offered and selected land. This 
subsection requires that the appraisal of the timber estate be 
in accordance with applicable provisions of the Washington 
State Forest Practices Act.
    Subsection (c) states that, after the appraised values of 
the offered and selected lands have been approved by the Forest 
Service, such values shall not be reappraised or updated prior 
to completion of the exchange. This subsection further states 
that the values may be adjusted to account for deletions or 
restrictions of selected land related to historic or cultural 
resource requirements pursuant to subsection 6(g).
    Subsection (d) provides that, if the value of the Plum 
Creek offered lands exceeds the value of the Forest Service 
lands, certain identified and prioritized offered lands shall 
be deleted from the exchange by Plum Creek.
    Subsection (e) provides that if the value of the Forest 
Service lands to be conveyed to Plum Creek exceeds the value of 
the Plum Creek lands, the Forest Service shall delete 
identified and prioritized selected lands from the exchange 
until the values are approximately equal.
    Subsection (f) provides that after the values of the lands 
to be exchanged have been equalized to the maximum extent 
practicable under subsection (d) or (e), any balance due Plum 
Creek or the Secretary will be made through standard cash 
equalization payments.
    Subsection (g) provides that any cash equalization money 
received by the Secretary will be retained by the Secretary and 
used to purchase land from willing sellers in the State of 
Washington for addition to the National Forest System.
    Section 6(a) provides that lands acquired by the Forest 
Service in the exchange will be managed as National Forest 
System lands in accordance with the Weeks Act and other 
applicable laws, rules, regulations, and guidelines. Subsection 
(a) also provides for automatic modification of forest 
boundaries to include the acquired lands. Lands acquired by 
Plum Creek will become private lands for all purposes of law.
    Subsection (b) recognizes that most lands acquired by Plum 
Creek will have adequate post-exchange access over already 
existing roads, and states Congress' intention that Plum Creek 
have immediate access to all lands it acquires in the exchange.
    Subsection (c) provides for access to all lands acquired by 
the Secretary.
    Subsection (d) states that it is the intent of Congress 
that the land exchange be completed no later than 90 days after 
the date on which Plum Creek conveys acceptable title to the 
Secretary, unless extended by mutual agreement of both the 
Secretary and Plum Creek.
    Subsection (e) withdraws, upon the date of enactment of 
this Act, the lands to be conveyed to Plum Creek from the 
operation of the mining, mineral leasing and other public land 
entry laws.
    Subsection (f) permanently withdraws lands the United 
States will acquire from Plum Creek in two townships from 
future mining or other disposal under the public land laws.
    Subsection (g) establishes a specific procedure for Plum 
Creek to request and obtain deletion of tracts of land that it 
is scheduled to acquire if the company determines historic or 
cultural resource deed restrictions or mitigation requirements 
constitute an unacceptable encumbrance on the land.

                   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 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 S. 2136, the Interstate 
90 Land Exchange Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Victoria V. 
Heid.
            Sincerely,
                                 June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

S. 2136--Interstate 90 Land Exchange Act of 1998

    CBO estimates that implementing S. 2136 would not have a 
significant impact on the federal budget. Because enacting S. 
2136 would affect offsetting receipts (a form of direct 
spending), pay-as-you-go procedures would apply to the bill. 
CBS estimates that completing the proposed land exchange under 
the bill would result in forgone offsetting receipts of less 
than $500,000 a year over the 1999-2000 period. Because a 
similar land exchange is likely to occur under current law, but 
at a later date than the exchange under S. 2136, we estimate 
that S. 2136 would have a negligible impact on receipts after 
fiscal year 2000. S. 2136 contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act and would impose no costs on state, local, or tribal 
governments.
    S. 2136 provides that if Plum Creek Timber Company conveys 
about 62,000 acres of land to the Secretary of Agriculture, 
then the Secretary shall convey to Plum Creek about 17,000 
acres of federal land. The land that would be exchanged is 
within or adjacent to three national forests in the state of 
Washington: Mt. Baker-Snoqualmie, Wenatchee, and Gifford 
Pinchot. The exchange would be completed within one year of 
enactment.
    S. 2136 would require the exchanged land to be of equal 
value, or if not equal that the values would have to be 
equalized through the deletion of federal or private offered 
lands until the values are equal. Once the values are equalized 
to the maximum extent practicable through such deletions, any 
balance due the Secretary or Plum Creek would be made through 
cash payments. The bill would authorize the Secretary to use 
any cash equalization payments received to purchase other land 
in the state of Washington.
    The Forest Service (within the U.S. Department of 
Agriculture) is currently considering a land exchange with Plum 
Creek Timber Company that would be completed administratively. 
The exchange now under consideration would involve about 27,000 
acres of federal land and about 62,000 acres of Plum Creek 
land. The Forest Service expects to publish an environmental 
impact statement on the administrative exchange in October 
1998, but any such exchange under current law is not likely to 
be completed until fiscal year 2000 or later.
    S. 2136 would modify the proposed administrative exchange 
by specifying that about 17,000 acres of federal land be 
conveyed to Plum Creek, rather than 27,000 acres as currently 
planned. According to the Forest Service, the smaller number of 
federal acres in S. 2136 is unlikely to be of sufficient value 
to equal the approximately 62,000 acres of Plum Creek land. In 
that case, completing the exchange under S. 2136 would require 
deleting certain Plum Creek offerings in the order specified by 
the bill. S. 2136 also would be likely to accelerate the 
exchange with Plum Creek by precluding any appeals or other 
delays that might occur in an administrative exchange.
    Based on information from the Forest Service, CBO estimates 
that completing the administrative exchange with Plum Creek 
will likely result in reduced receipts from harvesting timber 
from federal lands. According to the Forest Service, both the 
federal land and the Plum Creek land has harvestable timber on 
it, but the timber on federal land is generally of a higher 
quality than the timber on Plum Creek land. Because the Forest 
Service has been managing federal land in the area primarily 
for wildlife rather than commercial harvesting, the decrease in 
federal offsetting receipts would total less than $500,000 a 
year. Because an exchange with Plum Creek under S. 2136 would 
probably be completed a year or two sooner than an 
administrative exchange under current law, enacting the bill 
would result in forgone receipts beginning in fiscal year 1999. 
However, enacting the bill also would likely result in less 
forgone receipts than the administrative exchange because less 
federal timber is likely to be conveyed to Plum Creek under the 
bill. In any case, CBO estimates that the net change in 
offsetting receipts would total less than $500,000 each year 
over the 1999-2008 period.
    The CBO staff contact is Victoria V. Heid. This estimate 
was approved by Paul N. Van de Water, Assistant Director for 
Budget Analysis.

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2136.
    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. 2136.

                        executive communications

    Legislative reports from the Department of Agriculture and 
the Office of Management and Budget setting forth Executive 
agency recommendations on S. 2136 were unavailable at the time 
the report on S. 2136 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 at the Subcommittee 
hearing follows:

 Statement of Gloria Manning, Associate Deputy Chief, National Forest 
        Systems, Forest Service, U.S. Department of Agriculture

    Mr. Chairman and members of the subcommittee, I am Gloria 
Manning, Associate Deputy Chief for National Forest Systems. I 
am pleased to be here to share the Administration's view on S. 
2136, which would provide for an exchange of lands between the 
Forest Service and the Plum Creek Timber Company.
    Before I address each bill individually, let me summarize 
the Administration's position on all four: The Administration 
opposes S. 2136, Interstate 90 Land Exchange; takes no position 
on S. 2226, Idaho School Land Amendment; supports H.R. 2886, 
Stanislaus National Forest Demonstration Project; and supports 
H.R. 3796, Provision for Conveyance of the Rogue River National 
Forest Administrative Site.


                      s. 2136--i-90 land exchange


    The Administration opposes S. 2136 which provides for the 
exchange of lands with the Plum Creek Timber Company. The 
Administration is committed to this exchange, with continued 
public comment and involvement in public lands decision-making. 
This exchange and associated public processes are already well 
underway administratively; this legislation would circumvent 
that process.
    S. 2136, as introduced, would direct the Secretary to 
exchange lands on the Mt. Baker-Snoqualmie, Wenatchee, and 
Gifford Pinchot National Forests in Washington and adjust the 
boundaries of those forests to encompass 60,390 acres of land 
conveyed to the United States. In return, the Secretary would 
be directed to convey approximately 40,490 acres of national 
forest lands to the Plum Creek Company.
    While we oppose this legislation, we note that there are a 
number of important reasons to complete this land exchange.
    Land ownership in this area is an intermingled checkerboard 
pattern. Plum Creek Timber Company and the United States own 
alternate square mile sections of land or fractions of 
sections, making management on both private and national forest 
lands difficult. The exchange would simplify management of 
threatened endangered species habitat, and watershed and forest 
restoration, and would reduce long-term costs for boundary 
administration.
    Conveyance of the Plum Creek lands would also improve the 
government's ability to manage federal lands to protect old-
growth dependent species. There would be a net gain to the 
United States of about 22,000 acres of critical habitat for the 
northern spotted owl.
    By consolidating ownership, the exchange would improve the 
government's ability to provide recreation in areas such as the 
Alpine Lakes Wilderness, the Pacific Crest Trail, and 
Snoqualmie Pass that are close to the Seattle-Tacoma 
metropolitan area and are heavily used for recreation.
    Consolidation of federal land holdings would improve the 
efficiency of managing these lands, lowering long term 
management costs to the government by eliminating about 300 
miles of boundary identification and posting and decreasing the 
need for special use, right-of-way, and other permits.
    The Administration objects to the bill because it is 
unnecessary, undermines progress we have made completing the 
exchange administratively, and impedes effective completion of 
the National Environmental Policy Act (NEPA) process. The 
parties involved in this administrative exchange have already 
invested close to 10 years work into making this exchange a 
reality. A draft environmental impact statement (EIS) for this 
exchange was published in April, 1998; the comment period has 
closed; and the Forest Service expects to issue a final EIS 
before the end of this calendar year. Through public comment on 
the draft EIS, we have made many improvements to the exchange, 
not reflected in the legislation.
    Public input generated a consensus that lands in and around 
the Kelly Butte roadless area should be in contiguous federal 
ownership and that is reflected in the preferred alternative 
being developed for the final EIS. This change was based on 
public input, is acceptable to Plum Creek, and is an excellent 
example of why the public process is critical to the 
development of an exchange that reflects the best mix of public 
benefits. However, under the legislation as introduced, 
roadless lands in the Kelly Butte area would continue to be in 
checkerboard ownership, with the Plum Creek retaining its lands 
for possible timber harvest.
    The time frames in the bill would not allow public 
involvement to be completed. The bill would provide up to 180 
days from the date of enactment for Plum Creek to offer lands, 
and directs the consummation of the exchange not later than 120 
days from the time of Plum Creek's offer. Despite the fact that 
the NEPA process on the current administrative exchange is well 
underway, and indeed is on a fast track, this is simply not 
enough time to issue the final EIS and a Record of Decision, 
and to resolve administrative appeals.
    In addition to these concerns, the Administration also 
objects to provisions in the bill that:
          Would grant Plum Creek permanent road access 
        easements for no consideration and that require the 
        Secretary to keep national forest roads open for use by 
        Plum Creek or provide Plum Creek alternative access if 
        the road is closed; and
          Do not clearly authorize the Secretary to impose any 
        necessary conditions on any easements granted to Plum 
        Creek.
Although the Administration opposes this legislation, we are 
committed to continuing to work with Plum Creek and the public 
toward the timely completion of this exchange.

                        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. 2136, as 
ordered reported.

                                
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