[Senate Report 106-267]
[From the U.S. Government Publishing Office]
Calendar No. 497
106th Congress Report
SENATE
2d Session 106-267
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VALLES CALDERA PRESERVATION ACT
_______
April 12, 2000.--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. 1892]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1892) to authorize the acquisition of the
Valles Caldera, to provide for an effective land and wildlife
management program for this resource within the Department of
Agriculture, and for other purposes, 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:
TITLE I--VALLES CALDERA NATIONAL PRESERVE AND TRUST
SEC. 101. SHORT TITLE.
This title may be cited as the ``Valles Caldera Preservation Act''.
SEC. 102. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) the Baca ranch comprises most of the Valles Caldera in
central New Mexico, and constitutes a unique land mass, with
significant scientific, cultural, historic, recreational,
ecological, wildlife, fisheries, and productive values;
(2) the Valles Caldera is a large resurgent lava dome with
potential geothermal activity;
(3) the land comprising the Baca ranch was originally granted
to the heirs of Don Luis Maria Cabeza de Vaca in 1860;
(4) historical evidence, in the form of old logging camps and
other artifacts, and the history of territorial New Mexico
indicate the importance of this land over many generations for
domesticated livestock production and timber supply;
(5) the careful husbandry of the Baca ranch by the current
owners, including selective timbering, limited grazing and
hunting, and the use of prescribed fire, have preserved a mix
of healthy range and timber land with significant species
diversity, thereby serving as a model for sustainable land
development and use;
(6) the Baca ranch's natural beauty and abundant resources,
and its proximity to large municipal populations, could provide
numerous recreational opportunities for hiking, fishing,
camping, cross-country skiing, and hunting;
(7) the Forest Service documented the scenic and natural
values of the Baca ranch in its 1993 study entitled ``Report on
the Study of the Baca Location No. 1, Santa Fe National Forest,
New Mexico'', as directed by Public Law 101-556;
(8) the Baca ranch can be protected for current and future
generations by continued operation as a working ranch under a
unique management regime which would protect the land and
resource values of the property and surrounding ecosystem while
allowing and providing for the ranch to eventually become
financially self-sustaining;
(9) the current owners have indicated that they wish to sell
the Baca ranch, creating an opportunity for Federal acquisition
and public access and enjoyment of these lands;
(10) certain features on the Baca ranch have historical and
religious significance to Native Americans which can be
preserved and protected through Federal acquisition of the
property;
(11) the unique nature of the Valles Caldera and the
potential uses of its resources with different resulting
impacts warrants a management regime uniquely capable of
developing an operational program for appropriate preservation
and development of the land and resources of the Baca ranch in
the interest of the public;
(12) an experimental management regime should be provided by
the establishment of a Trust capable of using new methods of
public land management that may prove to be cost-effective and
environmentally sensitive; and
(13) the Secretary may promote more efficient management of
the Valles Caldera and the watershed of the Santa Clara Creek
through the assignment of purchase rights of such watershed to
the Pueblo of Santa Clara.
(b) Purposes.--The purposes of this title are--
(1) to authorize Federal acquisition of the Baca ranch;
(2) to protect and preserve for future generations the
scientific, scenic, historic, and natural values of the Baca
ranch, including rivers and ecosystems and archaeological,
geological, and cultural resources;
(3) to provide opportunities for public recreation;
(4) to establish a demonstration area for an experimental
management regime adapted to this unique property which
incorporates elements of public and private administration in
order to promote long term financial sustainability consistent
with the other purposes enumerated in this subsection; and
(5) to provide for sustained yield management of Baca ranch
for timber production and domesticated livestock grazing
insofar as is consistent with the other purposes stated herein.
SEC. 103. DEFINITIONS.
In this title:
(1) Baca ranch.--The term ``Baca ranch'' means the lands and
facilities described in this section 104(a).
(2) Board of trustees.--The terms ``Board of Trustees'' and
``Board'' mean the Board of Trustees as describe in section
107.
(3) Committees of congress.--The term ``Committees of
Congress'' means the Committee on Energy and Natural Resources
of the Senate and the Committee on Resources of the House of
Representatives.
(4) Financially self-sustaining.--The term ``financially
self-sustaining'' means management and operating expenditures
equal to or less than proceeds derived from fees and other
receipts for resource use and development and interest on
invested funds. Management and operating expenditures shall
include Trustee expenses, salaries and benefits of staff,
administrative and operating expenses, improvements to and
maintenance of lands and facilities of the Preserve, and other
similar expenses. Funds appropriated to the Trust by Congress,
either directly or through the Secretary, for the purposes of
this title shall not be considered.
(5) Multiple use and sustained yield.--The term ``multiple
use and sustained yield'' has the combined meaning of the terms
``multiple use'' and ``sustained yield of the several products
and services'', as defined under the Multiple-Use Sustained-
Yield Act of 1960 (16 U.S.C. 531).
(6) Preserve.--The term ``Preserve'' means the Valles Caldera
National Preserve established under section 105.
(7) Secretary.--Except where otherwise provided, the term
``Secretary'' means the Secretary of Agriculture.
(8) Trust.--The term ``Trust'' means the Valles Caldera Trust
established under section 106.
SEC. 104. ACQUISITION OF LANDS.
(a) Acquisition of Baca Ranch.--
(1) In general.--In compliance with the Act of June 15, 1926
(16 U.S.C. 471a), the Secretary is authorized to acquire all or
part of the rights, title, and interests in and to
approximately 94,761 acres of the Baca ranch, comprising the
lands, facilities, and structures referred to as the Baca
Location No. 1, and generally depicted on a plat entitled
``Independent Resurvey of the Baca Location No. 1'', made by
L.A. Osterhoudt, W.V. Hall, and Charles W. Devendorf, U.S.
Cadastral Engineers, June 30, 1920-August 24, 1921, under
special instructions for Group No. 107 dated February 12, 1920,
in New Mexico.
(2) Source of funds.--The acquisition under paragraph (1) may
be made by purchase through appropriated or donated funds, by
exchange, by contribution, or by donation of land. Funds
appropriated to the Secretary from the Land and Water
Conservation Fund shall be available for this purpose.
(3) Basis of sale.--The acquisition under paragraph (1) shall
be based on an appraisal done in conformity with the Uniform
Appraisal Standards for Federal Land Acquisitions and--
(A) in the case of purchase, such purchase shall be
on a willing seller basis for no more than the fair
market value of the land or interests therein acquired;
and
(B) in the case of exchange, such exchange shall be
for lands, or interests therein, of equal value, in
conformity with the existing exchange authorities of
the Secretary.
(4) Deed.--The conveyance of the offered lands to the United
States under this subsection shall be by general warranty or
other deed acceptable to the Secretary and in conformity with
applicable title standards of the Attorney General.
(b) Addition of Land to Bandelier National Monument.--Upon
acquisition of the Baca ranch under subsection (a), the Secretary of
the Interior shall assume administrative jurisdiction over those lands
within the boundaries of the Bandelier National Monument as modified
under section 3 of Public Law 105-376 (112 Stat. 3389).
(c) Plat and Maps.--
(1) Plat and maps prevail.--In case of any conflict between a
plat or a map and acreages, the plat or map shall prevail.
(2) Minor corrections.--The Secretary and the Secretary of
the Interior may make minor corrections in the boundaries of
the Upper Alamo watershed as depicted on the map referred to in
section 3 of Public Law 105-376 (112 Stat. 3389).
(3) Boundary modification.--Upon the conveyance of any lands
to any entity other than the Secretary, the boundary of the
Preserve shall be modified to exclude such lands.
(4) Final maps.--Within 180 days of the date of acquisition
of the Baca ranch under subsection (a), the Secretary and the
Secretary of the Interior shall submit to the Committees of
Congress a final map of the Preserve and a final map of
Bandelier National Monument, respectively.
(5) Public availability.--The plat and maps referred to in
the subsection shall be kept and made available for public
inspection in the offices of the Chief, Forest Service, and
Director, National Park Service, in Washington, D.C., and
Supervisor, Santa Fe National Forest, and Superintendent,
Bandelier National Monument, in the State of New Mexico.
(d) Watershed Management Report.--The Secretary, acting through the
Forest Service, in cooperation with the Secretary of the Interior,
acting through the National Park Service, shall--
(1) prepare a report of management alternatives which may--
(A) provide more coordinated land management within
the area known as the upper watersheds of Alamo,
Capulin, Medio, and Sanchez Canyons, including the
areas known as the Dome Diversity Unit and the Dome
Wilderness;
(B) allow for improved management of elk and other
wildlife populations ranging between the Santa Fe
National Forest and the Bandelier National Monument;
and
(C) include proposed boundary adjustments between the
Santa Fe National Forest and the Bandelier National
Monument to facilitate the objectives under
subparagraphs (A) and (B); and
(2) submit the report to the Committees of Congress within
120 days of the date of enactment of this title.
(e) Outstanding Mineral Interests.--The acquisition of the Baca ranch
by the Secretary shall be subject to all outstanding valid existing
mineral interests. The Secretary is authorized and directed to
negotiate with the owners of any fractional interest in the subsurface
estate for the acquisition of such fractional interest on a willing
seller basis for not to exceed its fair market value, as determined by
appraisal done in conformity with the Uniform Appraisal Standards for
Federal Land Acquisitions. Any such interests acquired within the
boundaries of the Upper Alamo watershed, as referred to in subsection
(b), shall be administered by the Secretary of the Interior as part of
Bandelier National Monument.
(f) Boundaries of the Baca Ranch.--For purposes of section 7 of the
Land and Water Conservation Fund Act of 1965 (16 U.S.C. 4601-9), the
boundaries of the Baca ranch shall be treated as if they were National
Forest boundaries existing as of January 1, 1965.
(g) Pueblo of Santa Clara.--
(1) In general.--The Secretary may assign to the Pueblo of
Santa Clara rights to acquire for fair market value portions of
the Baca ranch. The portion that may be assigned shall be
determined by mutual agreement between the Pueblo and the
Secretary based on optimal management considerations for the
Preserve including manageable land line locations, public
access, and retention of scenic and natural values. All
appraisals shall be done in conformity with the Uniform
Appraisal Standards for Federal Land Acquisition.
(2) Status of land acquired.--As of the date of acquisition,
the fee title lands, and any mineral estate underlying such
lands, acquired under this subsection by the Pueblo of Santa
Clara are deemed transferred into trust in the name of the
United States for the benefit of the Pueblo of Santa Clara and
such lands and mineral estate are declared to be part of the
existing Santa Clara Indian Reservation.
(3) Mineral estate.--Any mineral estate acquired by the
United States pursuant to section 104(e) underlying fee title
lands acquired by the Pueblo of Santa Clara shall not be
developed without the consent of the Secretary of the Interior
and the Pueblo of Santa Clara.
(4) Savings.--Any reservations, easements, and covenants
contained in an assignment agreement entered into under
paragraph (1) shall not be affected by the acquisition of the
Baca ranch by the United States, the assumption of management
by the Valles Caldera Trust, or the lands acquired by the
Pueblo being taken into trust.
SEC. 105. THE VALLES CALDERA NATIONAL PRESERVE.
(a) Establishment.--Upon the date of acquisition of the Baca ranch
under section 104(a), there is hereby established the Valles Caldera
National Preserve as a unit of the National Forest System which shall
include all Federal lands and interests in land acquired under sections
104(a) and 104(e), except those lands and interests in land
administered or held in trust by the Secretary of the Interior under
sections 104(b) and 104(g), and shall be managed in accordance with the
purposes and requirements of this title.
(b) Purposes.--The purposes for which the Preserve is established are
to protect and preserve the scientific, scenic, geologic, watershed,
fish, wildlife, historic, cultural, and recreational values of the
Preserve, and to provide for multiple use and sustained yield of
renewable resources within the Preserve, consistent with this title.
(c) Management Authority.--Except for the powers of the Secretary
enumerated in this title, the Preserve shall be managed by the Valles
Caldera Trust established by section 106.
(d) Eligibility for Payment in Lieu of Taxes.--Lands acquired by the
United States under section 104(a) shall constitute entitlement lands
for purposes of the Payment in Lieu of Taxes Act (31 U.S.C. 6901-6904).
(e) Withdrawals.--
(1) In general.--Upon acquisition of all interests in
minerals within the boundaries of the Baca ranch under section
104(e), subject to valid existing rights, the lands comprising
the Preserve are thereby withdrawn from disposition under all
laws pertaining to mineral leasing, including geothermal
leasing.
(2) Materials for roads and facilities.--Nothing in this
title shall preclude the Secretary, prior to assumption of
management of the Preserve by the Trust, and the Trust
thereafter, from allowing the utilization of common varieties
of mineral materials such as sand, stone, and gravel as
necessary for construction and maintenance of roads and
facilities within the Preserve.
(f) Fish and Game.--Nothing in this title shall be construed as
affecting the responsibilities of the State of New Mexico with respect
to fish and wildlife, including the regulation of hunting, fishing, and
trapping within the Preserve, except that the Trust may, in
consultation with the Secretary and the State of New Mexico, designate
zones where and establish periods when no hunting, fishing, or trapping
shall be permitted for reasons of public safety, administration, the
protection of nongame species and their habitats, or public use and
enjoyment.
(g) Redondo Peak.--
(1) In general.--For the purposes of preserving the natural,
cultural, religious, and historic resources on Redondo Peak
upon acquisition of the Baca ranch under section 104(a), except
as provided in paragraph (2), within the area of Redondo Peak
above 10,000 feet in elevation--
(A) no roads, structures, or facilities shall be
constructed; and
(B) no motorized access shall be allowed.
(2) Exceptions.--Nothing in this subsection shall preclude--
(A) the use and maintenance of roads and trails
existing as of the date of enactment of this Act;
(B) the construction, use and maintenance of new
trails, and the relocation of existing roads, if
located to avoid Native American religious and cultural
sites; and
(C) motorized access necessary to administer the area
by the Trust (including measures required in
emergencies involving the health or safety of persons
within the area).
SEC. 106. THE VALLES CALDERA TRUST.
(a) Establishment.--There is hereby established a wholly owned
government corporation known as the Valles Caldera Trust which is
empowered to conduct business in the State of New Mexico and elsewhere
in the United States in furtherance of its corporate purposes.
(b) Corporate Purposes.--The purposes of the Trust are--
(1) to provide management and administrative services for the
Preserve;
(2) to establish and implement management policies which will
best achieve the purposes and requirements of this title;
(3) to receive and collect funds from private and public
sources and to make dispositions in support of the management
and administration of the Preserve; and
(4) to cooperate with Federal, State, and local governmental
units, and with Indian tribes and Pueblos, to further the
purposes for which the Preserve was established.
(c) Necessary Powers.--The Trust shall have all necessary and proper
powers for the exercise of the authorities vested in it.
(d) Staff.--
(1) In general.--The Trust is authorized to appoint and fix
the compensation and duties of an executive director and such
other officers and employees as it deems necessary without
regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, and may pay
them without regard to the provisions of chapter 51, and
subchapter III of chapter 53, title 5, United States Code,
relating to classification and General Schedule pay rates. No
employee of the Trust shall be paid at a rate in excess of that
payable to the Supervisor of the Santa Fe National Forest or
the Superintendent of the Bandelier National Monument,
whichever is greater.
(2) Federal employees.--
(A) In general.--Except as provided in this title,
employees of the Trust shall be Federal employees as
defined by title 5, United States Code, and shall be
subject to all rights and obligations applicable
thereto.
(B) Use of federal employees.--At the request of the
Trust, the employees of any Federal agency may be
provided for implementation of this title. Such
employees detailed to the Trust for more than 30 days
shall be provided on a reimbursable basis.
(e) Government Corporation.--
(1) In general.--The Trust shall be a Government Corporation
subject to chapter 91 of title 31, United States Code (commonly
referred to as the Government Corporation Control Act).
Financial statements of the Trust shall be audited annually in
accordance with section 9105 of title 31 of the United States
Code.
(2) Reports.--Not later than January 15 of each year, the
Trust shall submit to the Secretary and the Committees of
Congress a comprehensive and detailed report of its operations,
activities, and accomplishments for the prior year including
information on the status of ecological, cultural, and
financial resources being managed by the Trust, and benefits
provided by the Preserve to local communities. The report shall
also include a section that describes the Trust's goals for the
current year.
(3) Annual budget.--
(A) In general.--The Trust shall prepare an annual
budget with the goal of achieving a financially self-
sustaining operation within 15 full fiscal years after
the date of acquisition of the Baca ranch under section
104(a).
(B) Budget request.--The Secretary shall provide
necessary assistance (including detailees as necessary)
to the Trust for the timely formulation and submission
of the annual budget request for appropriations, as
authorized under section 111(a), to support the
administration, operation, and maintenance of the
Preserve.
(f) Taxes.--The Trust and all properties administered by the Trust
shall be exempt from all taxes and special assessments of every kind by
the State of New Mexico, and its political subdivisions including the
counties of Sandoval and Rio Arriba.
(g) Donations.--The Trust may solicit and accept donations of funds,
property, supplies, or services from individuals, foundations,
corporations, and other private or public entities for the purposes of
carrying out its duties. The Secretary, prior to assumption of
management of the Preserve by the Trust, and the Trust thereafter, may
accept donations from such entities notwithstanding that such donors
may conduct business with the Department of Agriculture or any other
department or agency of the United States.
(h) Proceeds.--
(1) In general.--Notwithstanding sections 1341 and 3302 of
title 31 of the United States Code, all monies received from
donations under subsection (g) or from the management of the
Preserve shall be retained and shall be available, without
further appropriation, for the administration, preservation,
restoration, operation and maintenance, improvement, repair,
and related expenses incurred with respect to properties under
its management jurisdiction.
(2) Fund.--There is hereby established in the Treasury of the
United States a special interest bearing fund entitled ``Valles
Caldera Fund'' which shall be available, without further
appropriation for any purpose consistent with the purposes of
this title. At the option of the Trust, or the Secretary in
accordance with section 110, the Secretary of the Treasury
shall invest excess monies of the Trust in such account, which
shall bear interest at rates determined by the Secretary of the
Treasury taking into consideration the current average market
yield on outstanding marketable obligations of the United
States of comparable maturity.
(i) Restrictions on Disposition of Receipts.--Any funds received by
the Trust, or the Secretary in accordance with section 109(b), from the
management of the Preserve shall not be subject to partial distribution
to the State under--
(1) the Act of May 23, 1908, entitled ``an Act making
appropriations for the Department of Agriculture for the fiscal
year ending June thirtieth, nineteen hundred and nine'' (35
Stat. 260, chapter 192; 16 U.S.C. 500);
(2) section 13 of the Act of March 1, 1911 (36 Stat. 963,
chapter 186; 16 U.S.C. 500); or
(3) any other law.
(j) Suits.--The Trust may sue and be sued in its own name to the same
extent as the Federal Government. For purposes of such suits, the
residence of the Trust shall be the State of New Mexico. The Trust
shall be represented by the Attorney General in any litigation arising
out of the activities of the Trust, except that the Trust may retain
private attorneys to provide advice and counsel.
(k) Bylaws.--The Trust shall adopt necessary bylaws to govern its
activities.
(l) Insurance and Bond.--The Trust shall require that all holders of
leases from, or parties in contract with, the Trust that are authorized
to occupy, use, or develop properties under the management jurisdiction
of the Trust, procure proper insurance against any loss in connection
with such properties, or activities authorized in such lease or
contract, as is reasonable and customary.
(m) Name and Insignia.--The Trust shall have the sole and exclusive
right to use the words ``Valles Caldera Trust'', and any seal, emblem,
or other insignia adopted by the Board of Trustees. Without express
written authority of the Trust, no person may use the words ``Valles
Caldera Trust'' as the name under which that person shall do or purport
to do business, for the purpose of trade, or by way of advertisement,
or in any manner that may falsely suggest any connection with the
Trust.
SEC. 107. BOARD OF TRUSTEES.
(a) In General.--The Trust shall be governed by a 9-member Board of
Trustees consisting of the following:
(1) Voting trustees.--The voting Trustees shall be--
(A) the Supervisor of the Santa Fe National Forest,
United States Forest Service;
(B) the Superintendent of the Bandelier National
Monument, National Park Service; and
(C) 7 individuals, appointed by the President, in
consultation with the congressional delegation from the
State of New Mexico. The 7 individuals shall have
specific expertise or represent an organization or
government entity as follows--
(i) one trustee shall have expertise in
aspects of domesticated livestock management,
production, and marketing, including range
management and livestock business management;
(ii) one trustee shall have expertise in the
management of game and nongame wildlife and
fish populations, including hunting, fishing,
and other recreational activities;
(iii) one trustee shall have expertise in the
sustainable management of forest lands for
commodity and noncommodity purposes;
(iv) one trustee shall be active in a
nonprofit conservation organization concerned
with the activities of the Forest Service;
(v) one trustee shall have expertise in
financial management, budget and program
analysis, and small business operations;
(vi) one trustee shall have expertise in the
cultural and natural history of the region; and
(vii) one trustee shall be active in State or
local government in New Mexico, with expertise
in the customs of the local area.
(2) Qualifications.--Of the trustees appointed by the
President--
(A) none shall be employees of the Federal
Government; and
(B) at least five shall be residents of the State of
New Mexico.
(b) Initial Appointments.--The President shall make the initial
appointments to the Board of Trustees within 90 days after acquisition
of the Baca ranch under section 104(a).
(c) Terms.--
(1) In general.--Appointed trustees shall each serve a term
of 4 years, except that of thetrustees first appointed, 4 shall
serve for a term of 4 years, and 3 shall serve for a term of 2 years.
(2) Vacancies.--Any vacancy among the appointed trustees
shall be filled in the same manner in which the original
appointment was made, and any trustee appointed to fill a
vacancy shall serve for the remainder of that term for which
his or her predecessor was appointed.
(3) Limitations.--No appointed trustee may serve more than 8
years in consecutive terms.
(d) Quorum.--A majority of trustees shall constitute a quorum of the
Board for the conduct of business.
(e) Organization and Compensation.--
(1) In general.--The Board shall organize itself in such a
manner as it deems most appropriate to effectively carry out
the activities of the Trust.
(2) Compensation of trustees.--Trustees shall serve without
pay, but may be reimbursed from the funds of the Trust for the
actual and necessary travel and subsistence expenses incurred
by them in the performance of their duties.
(3) Chair.--Trustees shall select a chair from the membership
of the Board.
(f) Liability of Trustees.--Appointed trustees shall not be
considered Federal employees by virtue of their membership on the
Board, except for purposes of the Federal Tort Claims Act, the Ethics
in Government Act, and the provisions of chapter 11 of title 18, United
States Code.
(g) Meetings.--
(1) Location and timing of meetings.--The Board shall meet in
sessions open to the public at least three times per year in
New Mexico. Upon a majority vote made in open session, and a
public statement of the reasons therefore, the Board may close
any other meetings to the public: Provided, That any final
decision of the Board to adopt or amend the comprehensive
management program under section 108(d) or to approve any
activity related to the management of the land or resources of
the Preserve shall be made in open public session.
(2) Public information.--In addition to other requirements of
applicable law, the Board shall establish procedures for
providing appropriate public information and periodic
opportunities for public comment regarding the management of
the Preserve.
SEC. 108. RESOURCE MANAGEMENT.
(a) Assumption of Management.--The Trust shall assume all authority
provided by this title to manage the Preserve upon a determination by
the Secretary, which to the maximum extent practicable shall be made
within 60 days after the appointment of the Board, that--
(1) the Board is duly appointed, and able to conduct
business; and
(2) provision has been made for essential management
services.
(b) Management Responsibilities.--Upon assumption of management of
the Preserve under subsection (a), the Trust shall manage the land and
resources of the Preserve and the use thereof including, but not
limited to such activities as--
(1) administration of the operations of the Preserve;
(2) preservation and development of the land and resources of
the Preserve;
(3) interpretation of the Preserve and its history for the
public;
(4) management of public use and occupancy of the Preserve;
and
(5) maintenance, rehabilitation, repair, and improvement of
property within the Preserve.
(c) Authorities.--
(1) In general.--The Trust shall develop programs and
activities at the Preserve, and shall have the authority to
negotiate directly and enter into such agreements, leases,
contracts and other arrangements with any person, firm,
association, organization, corporation or governmental entity,
including without limitation, entities of Federal, State, and
local governments, and consultation with Indian tribes and
pueblos, as are necessary and appropriate to carry out its
authorized activities or fulfill the purposes of this title.
Any such agreements may be entered into without regard to
section 321 of the Act of June 30, 1932 (40 U.S.C. 303b).
(2) Procedures.--The Trust shall establish procedures for
entering into lease agreements and other agreements for the use
and occupancy of facilities of the Preserve. The procedures
shall ensure reasonable competition, and set guidelines for
determining reasonable fees, terms, and conditions for such
agreements.
(3) Limitations.--The Trust may not dispose of any real
property in, or convey any water rights appurtenant to the
Preserve. The Trust may not convey any easement, or enter into
any contract, lease, or other agreement related to use and
occupancy of property within the Preserve for a period greater
than 10 years. Any such easement, contract, lease, or other
agreement shall provide that, upontermination of the Trust,
such easement, contract, lease or agreement is terminated.
(4) Application of procurement laws.--
(A) In general.--Notwithstanding any other provision
of law, Federal laws and regulations governing
procurement by Federal agencies shall not apply to the
Trust, with the exception of laws and regulations
related to Federal Government contracts governing
health and safety requirements, wage rates, and civil
rights.
(B) Procedures.--The Trust, in consultation with the
Administrator of Federal Procurement Policy, Office of
Management and Budget, shall establish and adopt
procedures applicable to the Trust's procurement of
goods and services, including the award of contracts on
the basis of contractor qualifications, price,
commercially reasonable buying practices, and
reasonable competition.
(d) Management Program.--Within two years after assumption of
management responsibilities for the Preserve, the Trust shall, in
accordance with subsection (f), develop a comprehensive program for the
management of lands, resources, and facilities within the Preserve to
carry out the purposes under section 105(b). To the extent consistent
with such purposes, such program shall provide for--
(1) operation of the Preserve as a working ranch, consistent
with paragraphs (2) through (4);
(2) the protection and preservation of the scientific,
scenic, geologic, watershed, fish, wildlife, historic, cultural
and recreational values of the Preserve;
(3) multiple use and sustained yield of renewable resources
within the Preserve;
(4) public use of and access to the Preserve for recreation;
(5) renewable resource utilization and management
alternatives that, to the extent practicable--
(A) benefit local communities and small businesses;
(B) enhance coordination of management objectives
with those on surrounding National Forest System land;
and
(C) provide cost savings to the Trust through the
exchange of services, including but not limited to
labor and maintenance of facilities, for resources or
services provided by the Trust; and
(6) optimizing the generation of income based on existing
market conditions, to the extent that it does not unreasonably
diminish the long-term scenic and natural values of the area,
or the multiple use and sustained yield capability of the land.
(e) Public Use and Recreation.--
(1) In general.--The Trust shall give thorough consideration
to the provision of appropriate opportunities for public use
and recreation that are consistent with the other purposes
under section 105(b). The Trust is expressly authorized to
construct and upgrade roads and bridges, and provide other
facilities for activities including, but not limited to camping
and picnicking, hiking, and cross country skiing. Roads,
trails, bridges, and recreational facilities constructed within
the Preserve shall meet public safety standards applicable to
units of the National Forest System and the State of New
Mexico.
(2) Fees.--Notwithstanding any other provision of law, the
Trust is authorized to assess reasonable fees for admission to,
and the use and occupancy of, the Preserve: Provided, That
admission fees and any fees assessed for recreational
activities shall be implemented only after public notice and a
period of not less than 60 days for public comment.
(3) Public access.--Upon the acquisition of the Baca ranch
under section 104(a), and after an interim planning period of
no more than two years, the public shall have reasonable access
to the Preserve for recreation purposes. The Secretary, prior
to assumption of management of the Preserve by the Trust, and
the Trust thereafter, may reasonably limit the number and types
of recreational admissions to the Preserve, or any part
thereof, based on the capability of the land, resources, and
facilities. The use of reservation or lottery systems is
expressly authorized to implement this paragraph.
(f) Applicable Laws.--
(1) In general.--The Trust, and the Secretary in accordance
with section 109(b), shall administer the Preserve in
conformity with this title and all laws pertaining to the
National Forest System, except the Forest and Rangeland
Renewable Resources Planning Act of 1974, as amended (16 U.S.C.
1600 et seq.).
(2) Environmental laws.--The Trust shall be deemed a Federal
agency for the purposes of compliance with Federal
environmental laws.
(3) Criminal laws.--All criminal laws relating to Federal
property shall apply to the same extent as on adjacent units of
the National Forest System.
(4) Reports on applicable rules and regulations.--The Trust
may submit to the Secretary and the Committees of Congress a
compilation of applicable rules and regulations which in the
view of the Trust are inappropriate, incompatible with this
title, or unduly burdensome.
(5) Consultation with tribes and pueblos.--The Trust is
authorized and directed to cooperate and consult with Indian
tribes and pueblos on management policies and practices for the
Preserve which may affect them. The Trust is authorized to
allow the use of lands within the Preserve for religious and
cultural uses by Native Americans and, in so doing, may set
aside places and times of exclusive use consistent with the
American Indian Religious Freedom Act (42 U.S.C. 1996 (note))
and other applicable statutes.
(6) No administrative appeal.--The administrative appeals
regulations of the Secretary shall not apply to activities of
the Trust and decisions of the Board.
(g) Law Enforcement and Fire Management.--The Secretary shall provide
law enforcement services under a cooperative agreement with the Trust
to the extent generally authorized in other units of the National
Forest System. The Trust shall be deemed a Federal agency for purposes
of the law enforcement authorities of the Secretary (within the meaning
of section 15008 of the National Forest System Drug Control Act of 1986
(16 U.S.C. 559g)). At the request of the Trust, the Secretary may
provide fire presuppression, fire suppression, and rehabilitation
services: Provided, That the Trust shall reimburse the Secretary for
salaries and expenses of fire management personnel, commensurate with
services provided.
SEC. 109. AUTHORITIES OF THE SECRETARY.
(a) In General.--Notwithstanding the assumption of management of the
Preserve by the Trust, the Secretary is authorized to--
(1) issue any rights-of-way, as defined in the Federal Land
Policy and Management Act of 1976, of over 10 years duration,
in cooperation with the Trust, including, but not limited to,
road and utility rights-of-way, and communication sites;
(2) issue orders under and enforce prohibitions generally
applicable on other units of the National Forest System, in
cooperation with the Trust;
(3) exercise the authorities of the Secretary under the Wild
and Scenic Rivers Act (16 U.S.C. 1278, et seq.) and the Federal
Power Act (16 U.S.C. 797, et seq.), in cooperation with the
Trust;
(4) acquire the mineral rights referred to in section 104(e);
(5) provide law enforcement and fire management services
under section 108(g);
(6) at the request of the Trust, exchange land or interests
in land within the Preserve under laws generally applicable to
other units of the National Forest System, or otherwise dispose
of land or interests in land within the Preserve under Public
Law 97-465 (16 U.S.C. 521c through 521i);
(7) in consultation with the Trust, refer civil and criminal
cases pertaining to the Preserve to the Department of Justice
for prosecution;
(8) retain title to and control over fossils and
archaeological artifacts found within the Preserve;
(9) at the request of the Trust, construct and operate a
visitors' center in or near the Preserve, subject to the
availability of appropriated funds;
(10) conduct the assessment of the Trust's performance, and,
if the Secretary determines it necessary, recommend to Congress
the termination of the Trust, under section 110(b)(2); and
(11) conduct such other activities for which express
authorization is provided to the Secretary by this title.
(b) Interim Management.--
(1) In general.--The Secretary shall manage the Preserve in
accordance with this title during the interim period from the
date of acquisition of the Baca ranch under section 104(a) to
the date of assumption of management of the Preserve by the
Trust under section 108. The Secretary may enter into any
agreement, lease, contract, or other arrangement on the same
basis as the Trust under section 108(c)(1): Provided, That any
agreement, lease, contract, or other arrangement entered into
by the Secretary shall not exceed two years in duration unless
expressly extended by the Trust upon its assumption of
management of the Preserve.
(2) Use of the fund.--All monies received by the Secretary
from the management of the Preserve during the interim period
under paragraph (1) shall be deposited into the ``Valles
Caldera Fund'' established under section 106(h)(2), and such
monies in the fund shall be available to the Secretary,
withoutfurther appropriation, for the purpose of managing the Preserve
in accordance with the responsibilities and authorities provided to the
Trust under section 108.
(c) Secretarial Authority.--The Secretary retains the authority to
suspend any decision of the Board with respect to the management of the
Preserve if he finds that the decision is clearly inconsistent with
this title. Such authority shall only be exercised personally by the
Secretary, and may not be delegated. Any exercise of this authority
shall be in writing to the Board, and notification of the decision
shall be given to the Committees of Congress. Any suspended decision
shall be referred back to the Board for reconsideration.
(d) Access.--The Secretary shall at all times have access to the
Preserve for administrative purposes.
SEC. 110. TERMINATION OF THE TRUST.
(a) In General.--The Valles Caldera Trust shall terminate at the end
of the twentieth full fiscal year following acquisition of the Baca
ranch under section 104(a).
(b) Recommendations.--
(1) Board.--
(A) If after the fourteenth full fiscal years from
the date of acquisition of the Baca ranch under section
104(a), the Board believes the Trust has met the goals
and objectives of the comprehensive management program
under section 108(d), but has not become financially
self-sustaining, the Board may submit to the Committees
of Congress, a recommendation for authorization of
appropriations beyond that provided under this title.
(B) During the eighteenth full fiscal year from the
date of acquisition of the Baca ranch under section
104(a), the Board shall submit to the Secretary its
recommendation that the Trust be either extended or
terminated including the reasons for such
recommendation.
(2) Secretary.--Within 120 days after receipt of the
recommendation of the Board under paragraph (1)(B), the
Secretary shall submit to the Committees of Congress the
Board's recommendation on extension or termination along with
the recommendation of the Secretary with respect to the same
and stating the reasons for such recommendation.
(c) Effect of Termination.--In the event of termination of the Trust,
the Secretary shall assume all management and administrative functions
over the Preserve, and it shall thereafter be managed as a part of the
Santa Fe National Forest, subject to all laws applicable to the
National Forest System.
(d) Assets.--In the event of termination of the Trust, all assets of
the Trust shall be used to satisfy any outstanding liabilities, and any
funds remaining shall be transferred to the Secretary for use, without
further appropriation, for the management of the Preserve.
(e) Valles Caldera Fund.--In the event of termination, the Secretary
shall assume the powers of the Trust over funds under section 106(h),
and the Valles Caldera Fund shall not terminate. Any balances remaining
in the fund shall be available to the Secretary, without further
appropriation, for any purpose consistent with the purposes of this
title.
SEC. 111. LIMITATIONS ON FUNDING.
(a) Authorization of Appropriations.--There is hereby authorized to
be appropriated to the Secretary and the Trust such funds as are
necessary for them to carry out the purposes of this title for each of
the 15 full fiscal years after the date of acquisition of the Baca
ranch under section 104(a).
(b) Schedule of Appropriations.--Within two years after the first
meeting of the Board, the Trust shall submit to Congress a plan which
includes a schedule of annual decreasing appropriated funds that will
achieve, at a minimum, the financially self-sustained operation of the
Trust within 15 full fiscal years after the date of acquisition of the
Baca ranch under section 104(a).
SEC. 112. GENERAL ACCOUNTING OFFICE STUDY.
(a) Initial Study.--Three years after the assumption of management by
the Trust, the General Accounting Office shall conduct an interim study
of the activities of the Trust and shall report the results of the
study to the Committees of Congress. The study shall include, but shall
not be limited to, details of programs and activities operated by the
Trust and whether it met its obligations under this title.
(b) Second Study.--Seven years after the assumption of management by
the Trust, the General Accounting Office shall conduct a study of the
activities of the Trust and shall report the results of the study to
the Committees of Congress. The study shall provide an assessment of
any failure to meet obligations that may be identified under subsection
(a), and further evaluation on the ability of the Trust to meet its
obligations under this title.
TITLE II--FEDERAL LAND TRANSACTION FACILITATION
SEC. 201. SHORT TITLE.
This title may be cited as the ``Federal Land Transaction
Facilitation Act''.
SEC. 202. FINDINGS.
Congress finds that--
(1) the Bureau of Land Management has authority under the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701
et seq.) to sell land identified for disposal under its land
use planning;
(2) the Bureau of Land Management has authority under that
Act to exchange Federal land for non-Federal land if the
exchange would be in the public interest;
(3) through land use planning under that Act, the Bureau of
Land Management has identified certain tracts of public land
for disposal;
(4) the Federal land management agencies of the Departments
of the Interior and Agriculture have authority under existing
law to acquire land consistent with the mission of each agency;
(5) the sale or exchange of land identified for disposal and
the acquisition of certain non-Federal land from willing
landowners would--
(A) allow for the reconfiguration of land ownership
patterns to better facilitate resource management;
(B) contribute to administrative efficiency within
Federal land management units; and
(C) allow for increased effectiveness of the
allocation of fiscal and human resources within the
Federal land management agencies;
(6) a more expeditious process for disposal and acquisition
of land, established to facilitate a more effective
configuration of land ownership patterns, would benefit the
public interest;
(7) many private individuals own land within the boundaries
of Federal land management units and desire to sell the land to
the Federal Government;
(8) such land lies within national parks, national monuments,
national wildlife refuges, national forests, and other areas
designated for special management;
(9) Federal land management agencies are facing increased
workloads from rapidly growing public demand for the use of
public land, making it difficult for Federal managers to
address problems created by the existence of inholdings in many
areas;
(10) in many cases, inholders and the Federal Government
would mutually benefit from Federal acquisition of the land on
a priority basis;
(11) proceeds generated from the disposal of public land may
be properly dedicated to the acquisition of inholdings and
other land that will improve the resource management ability of
the Federal land management agencies and adjoining landowners;
(12) using proceeds generated from the disposal of public
land to purchase inholdings and other such land from willing
sellers would enhance the ability of the Federal land
management agencies to--
(A) work cooperatively with private landowners and
State and local governments; and
(B) promote consolidation of the ownership of public
and private land in a manner that would allow for
better overall resource management;
(13) in certain locations, the sale of public land that has
been identified for disposal is the best way for the public to
receive fair market value for the land; and
(14) to allow for the least disruption of existing land and
resource management programs, the Bureau of Land Management may
use non-Federal entities to prepare appraisal documents for
agency review and approval consistent with applicable
provisions of the Uniform Standards for Federal Land
Acquisition.
SEC. 203. DEFINITIONS.
In this title:
(1) Exceptional resource.--The term ``exceptional resource''
means a resource of scientific, natural, historic, cultural, or
recreational value that has been documented by a Federal,
State, or local governmental authority, and for which there is
a compelling need for conservation and protection under the
jurisdiction of a Federal agency in order to maintain the
resource for the benefit of the public.
(2) Federally designated area.--The term ``federally
designated area'' means land in Alaska and the eleven
contiguous Western States (as defined in section 103(o) of the
Federal Land Policy and Management Act of 1976 (43 U.S.C.
1702(o))) that on the date of enactment of this Act was within
the boundary of--
(A) a national monument, area of critical
environmental concern, national conservation area,
national riparian conservation area, national
recreation area, national scenic area, research natural
area, national outstanding natural area, or a national
natural landmark managed by the Bureau of Land
Management;
(B) a unit of the National Park System;
(C) a unit of the National Wildlife Refuge System;
(D) an area of the National Forest System designated
for special management by an Act of Congress; or
(E) an area within which the Secretary or the
Secretary of Agriculture is otherwise authorized by law
to acquire lands or interests therein that is
designated as--
(i) wilderness under the Wilderness Act (16
U.S.C. 1131 et seq.);
(ii) a wilderness study area;
(iii) a component of the Wild and Scenic
Rivers System under the Wild and Scenic Rivers
Act (16 U.S.C. 1271 et seq.); or
(iv) a component of the National Trails
System under the National Trails System Act (16
U.S.C. 1241 et seq.).
(3) Inholding.--The term ``inholding'' means any right,
title, or interest, held by a non-Federal entity, in or to a
tract of land that lies within the boundary of a federally
designated area.
(4) Public land.--The term ``public land'' means public lands
(as defined in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)).
(5) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
SEC. 204. IDENTIFICATION OF INHOLDINGS.
(a) In General.--The Secretary and the Secretary of Agriculture shall
establish a procedure to--
(1) identify, by State, inholdings for which the landowner
has indicated a desire to sell the land or interest therein to
the United States; and
(2) prioritize the acquisition of inholdings in accordance
with section 206(c)(3).
(b) Public Notice.--As soon as practicable after the date of
enactment of this title and periodically thereafter, the Secretary and
the Secretary of Agriculture shall provide public notice of the
procedures referred to in subsection (a), including any information
necessary for the consideration of an inholding under section 206. Such
notice shall include publication in the Federal Register and by such
other means as the Secretary and the Secretary of Agriculture determine
to be appropriate.
(c) Identification.--An inholding--
(1) shall be considered for identification under this section
only if the Secretary or the Secretary of Agriculture receive
notification of a desire to sell from the landowner in response
to public notice given under subsection (b); and
(2) shall be deemed to have been established as of the later
of--
(A) the earlier of--
(i) the date on which the land was withdrawn
from the public domain; or
(ii) the date on which the land was
established or designated for special
management; or
(B) the date on which the inholding was acquired by
the current owner.
(d) No Obligation To Convey or Acquire.--The identification of an
inholding under this section creates no obligation on the part of a
landowner to convey the inholding or any obligation on the part of the
United States to acquire the inholding.
SEC. 205. DISPOSAL OF PUBLIC LAND.
(a) In General.--The Secretary shall establish a program, using funds
made available under section 206, to complete appraisals and satisfy
other legal requirements for the sale or exchange of public land
identified for disposal under approved land use plans (as in effect on
the date of enactment of this Act) under section 202of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1712).
(b) Sale of Public Land.--
(1) In general.--The sale of public land so identified shall
be conducted in accordance with sections 203 and 209 of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1713,
1719).
(2) Exceptions to competitive bidding requirements.--The
exceptions to competitive bidding requirements under section
203(f) of the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1713(f)) shall apply to this section in cases in
which the Secretary determines it to be necessary.
(c) Report in Public Land Statistics.--The Secretary shall provide in
the annual publication of Public Land Statistics, a report of
activities under this section.
(d) Termination of Authority.--The authority provided under this
section shall terminate 10 years after the date of enactment of this
Act.
SEC. 206. FEDERAL LAND DISPOSAL ACCOUNT.
(a) Deposit of Proceeds.--Notwithstanding any other law (except a law
that specifically provides for a proportion of the proceeds to be
distributed to any trust funds of any States), the gross proceeds of
the sale or exchange of public land under this Act shall be deposited
in a separate account in the Treasury of the United States to be known
as the ``Federal Land Disposal Account''.
(b) Availability.--Amounts in the Federal Land Disposal Account shall
be available to the Secretary and the Secretary of Agriculture, without
further Act of appropriation, to carry out this title.
(c) Use of the Federal Land Disposal Account.--
(1) In general.--Funds in the Federal Land Disposal Account
shall be expended in accordance with this subsection.
(2) Fund allocation.--
(A) Purchase of land.--Except as authorized under
subparagraph (C), funds shall be used to purchase lands
or interests therein that are otherwise authorized by
law to be acquired, and that are--
(i) inholdings; and
(ii) adjacent to federally designated areas
and contain exceptional resources.
(B) Inholdings.--Not less than 80 percent of the
funds allocated for the purchase of land within each
State shall be used to acquire inholdings identified
under section 204.
(C) Administrative and other expenses.--An amount not
to exceed 20 percent of the funds deposited in the
Federal Land Disposal Account may be used by the
Secretary for administrative and other expenses
necessary to carry out the land disposal program under
section 205.
(D) Same state purchases.--Of the amounts not used
under subparagraph (C), not less than 80 percent shall
be expended within the State in which the funds were
generated. Any remaining funds may be expended in any
other State.
(3) Priority.--The Secretary and the Secretary of Agriculture
shall develop a procedure for prioritizing the acquisition of
inholdings and non-Federal lands with exceptional resources as
provided in paragraph (2). Such procedure shall consider--
(A) the date the inholding was established (as
provided in section 204(c));
(B) the extent to which acquisition of the land or
interest therein will facilitate management efficiency;
and
(C) such other criteria as the Secretary and the
Secretary of Agriculture deem appropriate.
(4) Basis of sale.--Any land acquired under this section
shall be--
(A) from a willing seller;
(B) contingent on the conveyance of title acceptable
to the Secretary, or the Secretary of Agriculture in
the case of an acquisition of National Forest System
land, using title standards of the Attorney General;
(C) at a price not to exceed fair market value
consistent with applicable provisions of the Uniform
Appraisal Standards for Federal Land Acquisitions; and
(D) managed as part of the unit within which it is
contained.
(d) Contaminated Sites and Sites Difficult and Uneconomic To
Manage.--Funds in the Federal Land Disposal Account shall not be used
to purchase land or an interest in land that, as determined by the
Secretary or the Secretary of Agriculture--
(1) contains a hazardous substances or is otherwise
contaminated; or
(2) because of the location or other characteristics of the
land, would be difficult or uneconomic to manage as Federal
land.
(e) Land and Water Conservation Fund Act.--Funds made available under
this section shall be supplemental to any funds appropriated under the
Land and Water Conservation Fund Act (16 U.S.C. 460l-4 et seq.).
(f) Termination.--On termination of activities under section 205--
(1) the Federal Land Disposal Account shall be terminated;
and
(2) any remaining balance in the account shall become
available for appropriation under section 3 of the Land and
Water Conservation Fund Act (16 U.S.C. 460l-6).
SEC. 207. SPECIAL PROVISIONS.
(a) In General.--Nothing in this title provides an exemption from any
limitation on the acquisition of land or interest in land under any
Federal Law in effect on the date of enactment of this Act.
(b) Other Law.--This title shall not apply to land eligible for sale
under--
(1) Public Law 96-568 (commonly known as the ``Santini-Burton
Act'') (94 Stat. 3381); or
(2) the Southern Nevada Public Land Management Act of 1998
(112 Stat. 2343).
(c) Exchanges.--Nothing in this title precludes, preempts, or limits
the authority to exchange land under authorities providing for the
exchange of Federal lands, including but not limited to--
(1) the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1701 et seq.); or
(2) the Federal Land Exchange Facilitation Act of 1988 (102
Stat. 1086) or the amendments made by that Act.
(d) No New Right or Benefit.--Nothing in this Act creates a right or
benefit, substantive or procedural, enforceable at law or in equity by
a party against the United States, its agencies, its officers, or any
other person.
purpose of the measure
The purpose of S. 1892 is to authorize the acquisition of
the Valles Caldera, to provide for an effective land and
wildlife management program for this resource within the
Department of Agriculture, and for other purposes.
background and need
Title I of S. 1892 authorizes the Secretary of Agriculture
to acquire the Baca Ranch in New Mexico from its present
owners. The bill also designates the property as the Valles
Caldera National Preserve, and sets up an experimental
management regime for its administration.
The Baca Ranch, historically referred to as the Baca
Location No. 1, is based on an 1860 Congressional land grant.
It comprises approximately 95,000 acres lying in the heart of
the Jemez Mountains in northern New Mexico. Located near Los
Alamos and within an hour's drive of Albuquerque and Santa Fe,
the property is accessible to the large population centers in
New Mexico.
The Baca Ranch exhibits remarkable scenic beauty and
contains exceptional wildlife and fisheries resources. The
headwaters of the Jemez Wild and Scenic River originate on the
Baca Ranch, as well as San Antonio Creek, both of which have
outstanding fishery resources. Wildlife abounds on the Baca
Ranch including the largest elk herd in the southwest. The
ranch is large enough and exhibits such a wide variety of land
forms that it can provide opportunities for both recreation and
solitude. Portions of the Baca Ranch have special religious and
cultural significance for Native Americans residing in the
region.
The land has a unique geological past. Over 1.2 million
years ago, two major volcanic eruptions occurred, ejecting
cubic miles of material into the atmosphere and creating the
Valles Caldera, approximately 15 miles in diameter. The
mountains surrounding the Valles Caldera rise to a height of
3,000 feet above the valley floor. Hot springs, gas vents and
volcanic domes are present day evidence of this volcanic
activity.
The Baca Ranch is one of the most significant privately
owned inholdings within the National Forest System. It is
surrounded by Federal land including the Santa Fe National
Forest, the Jemez National Recreation Area, and the Bandelier
National Monument. The Baca ties these lands together in a
common ecosystem, and the management of the Ranch will directly
impact the public resources on adjacent lands.
In 1993, with the Dunigan family's cooperation, the Forest
Service conducted a study of the Ranch pursuant to the
Congressional direction in Public Law 101-556. The 1993 study
extensively examined the scenic, natural, recreational, and
multiple use resources of the Baca Ranch, and provided the
impetus for acquisition efforts when it became available for
purchase in 1998. Congress authorized the expenditure of $101
million in the FY 2000 Appropriations Act for the purchase of
the Baca Ranch subject to specific authorizing legislation and
completion of an appraisal.
Once acquired, the Baca Ranch will be administered as the
Valles Caldera National Preserve. The Preserve will have many
of the attributes of other Congressionally designated areas
designed to assure the protection of important scenic and
natural values. More uniquely, S. 1892 requires management of
the property by trust, and requires the acquired Baca Ranch to
continue to be managed as an operating ranch. The trust
management concept is intended to protect the unique values of
the property and demonstrate sustainable land use including
recreation, grazing, forest management, hunting, and fishing
while maintaining scenic, wildlife and species diversify. While
the goal of the Trust will be to make the Ranch self-
sufficient, the legislation prohibits unreasonable diminishment
of scenic and natural values of the property.
Title II authorizes the Bureau of Land Management to
improve land management activities and consolidate federal
ownerships by selling parcels of Federal land identified
through the agency'sland use planning process as suitable for
disposal. Title II requires that eighty percent of the proceeds from
the sales be used to acquire inholdings from willing sellers and other
non-Federal lands adjacent to designated areas in order to improve the
resources management ability of the Federal land management agencies. A
portion of the proceeds generated from the sales will become available
to the Bureau of Land Management to carry out the land disposal
program.
legislative history
S. 1892 was introduced on November 9, 1999 by Senators
Domenici and Bingaman. The Subcommittee on Forests and Public
Land Management held a hearing on S. 1892 on March 10, 2000. At
the business meeting on April 5, 2000, the Committee on Energy
and Natural Resources ordered S. 1892 reported favorably with
an amendment in the nature of a substitute.
committee recommendation and tabulation of votes
The Senate Committee on Energy and Natural Resources, in
open business session on April 5, 2000, by a majority voice
vote of a quorum present with a majority of those present
voting in favor recommends that the Senate pass S. 1892 if
amended as described herein.
committee amendments
During the consideration of S. 1892, the Committee adopted
an amendment in the nature of a substitute. In addition to
making numerous technical and clarifying changes, the amendment
includes the following substantive provisions:
(1) Land acquired by the Santa Clara Pueblo pursuant to
section 104(g) will be placed into trust status and development
of the underlying mineral estate (if acquired by the United
States) will be prohibited unless agreed to by the Pueblo and
the Secretary.
(2) In order to protect significant Native American
cultural sites, the construction of new roads, structures, or
facilities above 10,000 feet in elevation on Redondo Peak is
prohibited (section 105(g)).
(3) The Trust is provided with exclusive right to use the
words ``Valles Caldera Trust'' and any seal, emblem, or other
insignia adopted by the Board of Trustees, similar to authority
recently granted to the Presidio Trust.
section-by-section analysis
Title I
Section 101 contains the short title.
Section 102 presents findings.
Section 103 defines terms used in the Act.
Section 104(a) authorizes the Secretary to acquire the Baca
Location No. 1 in New Mexico using funds appropriated from the
Land and Water Conservation Fund. The subsection also requires
that the acquisition be based on an appraisal done in
conformity with the Uniform Appraisal Standards for Federal
Land Acquisitions.
Subsection (b) requires that lands acquired within the
boundary of the Bandelier National Monument (approximately 823
acres) will be administered by the Secretary of the Interior as
part of the Monument.
Subsection (c) requires the preparation of maps of the
Preserve and of the modified boundary of the Bandelier National
Monument.
Subsection (d) requires that watershed and elk management
reports be prepared by the Secretaries of Agriculture and
Interior. This subsection states that the report be submitted
to Congress within 120 days after enactment.
Subsection (e) states that acquisition of the Baca Ranch is
subject to outstanding mineral interests. In addition,
subsection (e) directs the Secretary of Agriculture to
negotiate with the owners of the minority mineral interests in
order to acquire those interests for an amount not to exceed
fair market value.
The Committee expects that the Forest Service will engage
in timely good-faith negotiations with the owners of the
minority mineral interests with the intent of acquiring those
interests for their fair market value. The Committee notes that
as of March 2000, the Forest Service initiated contacts with
some of the minority mineral owners to begin an appraisal of
the outstanding minerals. In addition, the Forest Service has
agreed to review and consider any and all data and information
provided by the mineral owners regarding mineralization and
geothermal resources on the Baca Ranch.
It is the Committee's expectation that the Forest Service
and the minority mineral owners will proceed with the appraisal
of the outstanding mineral rights and that the Forest Service
will offer their owners the appraised fair market value. The
Committee requests quarterly reports from the Forest Service on
the progress of the appraisal and status of any negotiations.
Subsection (f) defines the boundaries of the Baca Location
No. 1 for purposes of section 7 of the Land and Water
Conservation Fund Act.
Subsection (g) authorizes the Secretary of Agriculture to
assign the right to purchase a portion of the Baca Ranch to the
Pueblo of Santa Clara. The Committee understands that the Santa
Clara and the Secretary of Agriculture have entered into an
assignment contract dated February 7, 2000. The subsection also
requires that lands and interests therein acquired by the
Pueblo be transferred into trust in the name of the United
States to be managed as part of the Santa Clara Indian
Reservation. The subsection also states that any mineral estate
acquired by the United States in the area shall not be
developed without the consent of the Secretary of the Interior
and the Pueblo of Santa Clara. Finally, the subsection requires
that any access and conservation easements contained in the
assignment contract will continue to exist after the
acquisition of the Baca Ranch by the United States, the
assumption of management by the Trust, and the transfer of the
Pueblo lands into trust.
Section 105(a) establishes, upon acquisition of the Baca
Ranch, the Valles Caldera National Preserve as a unit of the
National Forest System.
Subsection (b) identifies the purposes for which the
Preserve is established.
Subsection (c) requires the Preserve to be managed by the
Valles Caldera Trust except for specified authorities of the
Secretary.
Subsection (d) states that the lands acquired by the United
States pursuant to section 104(a) shall constitute entitlement
lands for purposes of the Payment in Lieu of Taxes Act.
Subsection (e) requires that upon acquisition of all
interests in the minerals within the boundaries of the
Preserve, the lands will be withdrawn from disposition under
all laws pertaining to mineral leasing, including geothermal
leasing. This subsection authorizes the Secretary and the Trust
to use common varieties of mineral materials such as sand,
stone, and graved for the construction and maintenance of roads
and facilities within the Preserve.
Subsection (f) provides for continuing authority of the
State of New Mexico to regulate hunting,fishing, and trapping
within the Preserve, except that the Trust may set aside times and
places where such activities are prohibited for reasons of public
safety, administration, species protection, and public use.
Subsection (g) severely restricts, for Native American
religious purposes, construction of roads, structures, and
facilities, on approximately 2,500 acres of land on Redondo
Peak.
Section 106(a) establishes the Valles Caldera Trust, as a
government corporation and separate legal entity, to manage the
Preserve.
Subsection (b) and (c) specifies the purposes of the Trust
and provides them with such powers as are necessary to exercise
their authorities.
Subsection (d) authorizes the Trust to hire exemployees, as
they deem necessary, sets limits on compensation, and states
that those hired by the Trust shall be Federal employees except
as otherwise provided in this Title. This subsection also
authorizes Federal agencies to detail employees to the Trust.
Subsection (e) requires the Trust to prepare financial
statements and reports on activities and accomplishments for
the prior year. The subsection also requires that annual
budgets be prepared with the goal of achieving a financially
self-sustaining operation within 15 full fiscal years after the
date of acquisition of the Baca Ranch.
Subsection (f) exempts the Trust from all taxes and
assessments by the State of New Mexico and its political
subdivisions.
Subsection (g) allows the Trust and the Secretary to
receive donations of funds, property, supplies, and services.
Subsection (h) provides that all monies, received from
donations or from the management of the Preserve, be retained
by the Trust and available for expenditure without further
appropriation, for the management of the Preserve.
Subsection (i) exempts receipts generated through
management of the Preserve from certain revenue-sharing laws.
Subsection (j) provides that the Trust can sue and be sued
in its own name. This subsection also states that the Attorney
General of the United States will represent the Trust in
litigation; however, the Trust may retain private attorneys for
advice and counsel.
Subsection (k) authorizes the Trust to adopt necessary
bylaws to govern its activities.
Subsection (l) requires the Trust to ensure that all
holders of leases, and those contracting with the Trust for the
occupancy and use of the Preserve, be insured against any loss
in connection with such activities.
Section 107(a) provides that the Trust be governed by a
nine member Board of Trustees, seven of whom must have specific
expertise and be appointed by the President. Two other members
of the Board, the Supervisor of the Santa Fe National Forest
and Superintendent of the Bandelier National Monument, are ex-
officio.
Subsection (b) requires the President to make initial
appointments to the Board within 90 days after acquisition of
the Baca Ranch.
Subsection (c) requires that appointments to the Board be
staggered so that there will be a partial turnover of
membership every two years. This subsection also specifies that
no Trustee may serve for more than 8 years in consecutive
terms.
Subsection (d) provides that a majority of the Trustees
shall constitute quorum of the Board in order to conduct
business.
Subsection (e) provides that the Board can organize itself
in whatever manner it deems appropriate for the conduct of
business, including the selection of its own chair. This
subsection also states that Trustees serve with no pay, but may
be reimbursed for expenses.
Subsection (f) provides that, with identified exceptions,
Trustees are not Federal employees.
Subsection (g) requires members of the Board to meet in
public session at least three times per year in New Mexico,
gives them the authority to enter into executive session except
for specified purposes, and requires them to establish
procedures for providing appropriate public information and
opportunities for public comment.
Subsection 108(a) provides that the Trust will assume
management authority over the Preserve upon a determination by
the Secretary that the Board is duly appointed and that
provision has been made for essential management services.
Subsection (b) directs the Trust to manage the land and
resources of the Preserve. Natural resource management
practices should consider standards and guidelines prescribed
in existing legislation as it relates to grazing, forestry, and
wildlife management practices.
Subsection (c) requires the Trust to develop programs and
activities at the Preserve. In addition, this subsection
provides that the Trust has the authority to enter into
agreements, leases, contracts and other arrangements (such as
setting fees, terms and conditions) for matters relating to the
management of the Preserve. Finally, this subsection prohibits
the Trust from disposing of real property or conveying water
rights, or entering into contracts for a term greater than ten
years.
Subsection (d) requires the Trust, within two years of
assuming management responsibility for the Preserve, to develop
a comprehensive program for the management of the Preserve.
This subsection requires that the program meet the multiple
objectives of a working ranch, preserve the values of the
Preserve, allow public occupancy and use, multiple use
management, and resource utilization that is compatible with
local communities and the adjacent Federal lands.
The Committee expects that economic self-sufficiency is a
goal of the Trust, and while optimizing the generation of
income, it shall not interfere with good management principles
or unreasonably diminish scenic and natural values of the area.
The Trust should generate revenue while considering local
needs. Reasonable and customary grazing fees, grass banking,
and hunting fees are among the options the Trust may pursue
within its management program.
Subsection (e) directs the Trust to give thorough
consideration to public use and recreation that is consistent
with the other purposes of the Preserve. This subsection also
authorizes the Trust to build and maintain the infrastructure
necessary to allow for public use and to charge reasonable fees
for public admission and use.
Subsection (f) requires that the Trust administer the
Preserve in accordance with all laws pertaining to the National
Forest System, except the Forest and Rangeland Renewable
Resources Planning Act of 1974, as amended by the National
Forest Management Act of 1976.
Paragraph (f)(2) deems the Trust to be a Federal agency for
the purpose of complying with Federal environmental laws.
Paragraph (f)(3) specifies that criminal laws relating to
Federal property shall apply to the Preserve to the same extent
as on adjacent units of the National Forest System.
Paragraph (f)(4) provides that the Trust may submit to the
Secretary and the appropriate committees of Congress, a
compilation of applicable rules and regulations that the Trust
views as inappropriate, incompatible or unduly burdensome.
Paragraph (f)(5) directs the Trust to consult with Indian
tribes and pueblos on management practices that affect them and
allows the use of lands within the Preserve for religious and
cultural uses consistent with the American Indian Religious
Freedom Act.
Paragraph (f)(6) provides that no administrative appeal
regulations of the Secretary will apply to activities of the
Trust or decisions of the Board.
Subsection (g) requires the Secretary to provide law
enforcement services pursuant to a cooperative agreement with
the Trust. This subsection also authorizes the Secretary to use
employees of the Trust for law enforcement if they have the
requisite training. Finally, this subsection authorizes the
Secretary to provide fire protection on a reimbursable basis.
Section 109(a) authorizes the Secretary to conduct the
following activities with respect to the Preserve: issue rights
of way over 10 years in duration; issue orders and enforce
prohibitions generally applicable on other units of the
National Forest Service in cooperation with the Trust; exercise
authorities under the Wild and Scenic Rivers Act and the
Federal Power Act; acquire mineral rights as authorized under
section 104(e); provide law enforcement and fire management at
the request of the Trust; exchange land within the Preserve at
the request of the Trust; dispose of land pursuant to the Small
Tracts Act; refer civil and criminal cases to the Department of
Justice; retain fossils and archaeological artifacts; construct
and operate a visitors' center; and assess the Trusts'
performance.
Subsection (b) directs the Secretary to manage the Preserve
during that time between the acquisition of the Baca Ranch and
the time the Trust assumes management.
Subsection (c) authorizes the Secretary to suspend any
decision of the Board with respect to management of the
Preserve if the Secretary finds that an action or decision is
clearly inconsistent with the Act. This subsection also
prohibits the Secretary from delegating this authority.
Finally, this subsection requires the Secretary to notify the
Board and the appropriate Committees of Congress if such an
action is taken.
Subsection (d) gives the Secretary access to the Preserve
at all times.
Section 110(a) provides that the Valles Caldera Trust will
terminate at the end of the twentieth full fiscal year
following the acquisition of the Baca Ranch by the Federal
Government.
Subsection (b) provides for various opportunities to review
the management of the Board and to make recommendations for
additional improvements and appropriations. At the end of the
eighteenth full fiscal year, this subsection requires the Board
to submit recommendations to the Secretary on whether the Trust
should be extended or terminated. In addition, this subsection
states that the Secretary will have the opportunity to comment
on the recommendations.
Subsection (c) provides that, in the event the Trust
terminates, the Secretary shall assume all management and
administration of the Preserve and that it is to be managed as
part of the Santa Fe National Forest.
Subsection (d) provides that, in the event of termination
of the Trust, the assets of the Trust shall be transferred to
the Secretary to be available, without further appropriation,
for the management of the Preserve.
Subsection (e) states that, in the event of termination of
the Trust, the Secretary shall assume responsibility for monies
in the Valles Caldera Fund.
Section 111(a) authorizes to be appropriated such funds as
are necessary to carry out the purposes of this Title for 15
full fiscal years after the date of acquisition of the Baca
Ranch.
Subsection (b) requires the Trust to submit a plan to
Congress which includes a schedule of annual decreasing
appropriated funds that will achieve the financially self
sustaining operation of the Trust.
Section 112(a) requires the General Accounting Office (GAO)
to submit an interim report to Congress three years after
assumption of management by the Trust.
Subsection (b) directs GAO to complete a second report
seven years after the assumption of management by the Trust.
Title II
Section 201 contains the short title.
Section 202 presents the findings.
Section 203 defines terms used in the title.
Section 204 directs the Secretaries of the Interior and
Agriculture to establish a procedure for the identification and
prioritization of inholdings within specified Federal
conservation units for which landowners have indicated a
willingness to sell.
Subsection (a) directs the Secretary of the Interior to
establish a program, using funds made available under this
Title, to complete administrative requirements for the sale and
exchange of lands identified for disposal under approved land
use plans in existence on the date of enactment of this Act.
It is the Committee's intent that the Bureau of Land
Management will ensure that existing rights of access to either
public or private land across tracts of public land are not
diminished when any such land is conveyed out of Federal
ownership.
Subsection (b) defines the procedures to be used in the
sale of surplus lands and exemptions.
Subsection (c) & (d) directs the Secretary of the Interior
to report on activities pursuant to this Title and specifies
that authorities under Section 205 expire 10 years after date
of enactment.
Section 206(a) directs that the funds collected pursuant to
this title from sale of land, except that which is paid to
state's under existing law, be deposited in a special account
in the Treasury of the United States.
Subsection (b) specifies that funds in the special account
will be available to the Secretaries without further
appropriation.
Subsection (c) requires that funds generated pursuant to
this title be allocated in the following manner: eighty percent
must be spent to purchase inholdings or non-Federal land
containing exceptional resources that are adjacent to Federally
designated areas; and not more than twenty percent can be spent
for administrative purposes. In addition, this subsection
requires that not less than eighty percent of the funds, in
excess of the amount used for administrative purposes, be spent
within the State in which the funds were generated. Finally,
this subsection authorizes the Secretaries to develop a
procedure for prioritizing acquisitions pursuant to this title
and identifies a list of requirements that must be met for such
acquisitions.
Subsection (d) prohibits acquisition of lands containing
hazardous waste or which would pose difficulties in management.
Subsection (e) specifies that funds collected under this
title shall supplement funds appropriated pursuant to the Land
and Water Conservation Fund Act.
Subsection (f) states that the upon termination fund shall
be closed and any proceeds be transferred into the Land and
Water Conservation Fund.
Section 207 specifies that this title shall not effect
other Federal authorities to acquire land, the Santini-Burton
Act, the Southern Nevada Public Land Management Act of 1998, or
existing authorities to execute exchanges.
cost and budgetary considerations
The Congressional Budget Office (CBO) estimate of the costs
of this measure follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 11, 2000.
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. 1892, a bill to
authorize the acquisition of the Valles Caldera, to provide for
an effective land and wildlife management program for this
resource within the Department of Agriculture, and of other
purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Megan
Carroll (for federal costs), and Victoria Heid Hall (for the
state and local impact).
Sincerely,
Dan L. Crippen.
Enclosure.
S. 1892--A bill to authorize the acquisition of the Valles Caldera, to
provide for an effective land and wildlife management program
for this resource within the Department of Agriculture, and for
other purposes
Summary: Assuming appropriation of the necessary amounts,
CBO estimates that implementing S. 1892 would cost the federal
government between $6 million and $10 million over the next
five years. S. 1892 would also affect direct spending;
therefore pay-as-you-go procedures would apply. CBO estimates
that enacting this bill would reduce net direct spending by
about $1 million over the 2001-2005 period, but would increase
net direct spending by about $15 million over the 2001-2010
period.
S. 1892 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no significant costs on state, local, or
tribal governments. The bill could benefit states and the
Pueblo of Santa Clara.
Major provisions of the bill: Title I would authorize the
acquisition of the Baca Ranch, a 94,761-acre property in New
Mexico. This title also would:
Establish, upon acquisition of the ranch,
the Valles Caldera National Preserve as a unit of the
National Forest System;
Establish the Valles Caldera trust, board of
trustees, and fund for administration of the preserve;
Allow the Forest Service and the Valles
Caldera trust (a federal government entity) to collect
and spend donations, recreation fees and other charges
for use of the ranch; and
Authorize the appropriation of whatever sums
are necessary to operate the ranch over the next 15
years.
Title II would authorize a 10-year program to allow the
Secretary of the Interior and the Secretary of Agriculture to
sell certain federal lands identified for disposal and use the
net proceeds to acquire nonfederal lands.
Estimated cost to the Federal Government: The estimated
impact of S. 1892 on direct spending is shown in the following
table. In addition, CBO estimates that implementing S. 1892
would cost $6 million to $10 million over the 2001-2005 period,
subject to appropriation of the necessary funds, to operate the
ranch and build a visitors' center. The costs of this
legislation fall within budget function 300 (natural resources
and environment).
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
----------------------------------
2001 2002 2003 2004 2005
------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Additional Receipts From Sale of
Federal Lands:
Estimated Budget Authority....... -2 -3 -5 -8 -9
Estimated Outlays................ -2 -3 -5 -8 -9
Increase in Direct Spending:
Estimated Budget Authority....... 1 1 6 8 10
Estimated Outlays................ 1 1 6 8 10
Net Change in Direct Spending:
Estimated Budget Authority....... -1 -2 1 0 1
Estimated Outlays................ -1 -2 1 0 1
------------------------------------------------------------------------
Basis of Estimate: For purposes of this estimate, CBO
assumes that S. 1892 will be enacted before the end of fiscal
year 2000. Estimates for the cost of title I are based on
information provided by the Forest Service and the current
manager of the Baca Ranch. Estimates for the cost of title II
are based on information from the Bureau of Land Management
(BLM).
Direct spending
Title I would authorize the forest Service and the Valles
Caldera trust to collect and spend donations and fees from the
use of the ranch. CBO estimates that net direct spending in
each fiscal year as a result of this provision would not be
significant. Most of this spending would be to manage grazing,
hunting, and other public uses of the land, which we estimate
would cost about $2 million annually. This amount would be
offset by grazing, hunting, and recreation fees, most of which
the Forest Service or the trust would begin collecting
immediately.
Under current law, net receipts of about $1.5 million
annually from the sale of certain public land administered by
the Departments of Agriculture and the Interior are deposited
in the Treasury and are unavailable for spending without
appropriation. Title II would authorize BLM and the Forest
Service to retain those net proceeds and spend them to acquire
nonfederal lands within or adjacent to federal property over
the next 10 years. Based on information from BLM, CBO expects
that BLM land sales would increase under this legislation,
generating about $27 million in additional offsetting receipts
over the 2001-2005 period. Those sales receipts would be
largely offset by a corresponding increase in direct spending
of $26 million over the same period to purchase new lands. Over
the next 10 years, CBO estimates that this provision would
result in additional net direct spending of about $15 million
because it would allow spending of land sale receipts expected
under current law.
Spending subject to appropriation
CBO estimates that the Forest Service would operate the new
preserve at a cost of about $1 million annually including
payments to local governments in lieu of property taxes. We
expect that the agency also would purchase the subsurface
rights to this property, construct visitor facilities, and
upgrade some roads. We estimate that these costs would be
between $1 million and $5 million over the next few years,
depending on the level of visitor facilities provided and the
final appraisal of subsurface interests. We estimate that
purchase of the ranch would not have any additional cost beyond
the $101 million already appropriated for that purpose in 1999.
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. The net
changes in outlays that are subject to pay-as-you-go procedures
are shown in the following table. For the purposes of enforcing
pay-as-you-go procedures, only the effects in the current year,
the budget year, and the succeeding four years are counted.
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------------------------
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
----------------------------------------------------------------------------------------------------------------
Changes in outlays............... 0 -01 -2 1 0 1 2 3 3 4 4
Changes in receipts.............. Not applicable
----------------------------------------------------------------------------------------------------------------
Estimated impact on state, local, and tribal governments:
S. 1892 contains no intergovernmental mandates as defined in
UMRA and would impose no costs on state, local, or tribal
governments.
Title I would authorize the Secretary of Agriculture to
assign to the Pueblo of Santa Clara rights to purchase a
portion of the Baca Ranch from the current owners. The portions
of the ranch assigned would be by the annual agreement of the
Secretary and the Pueblo. Lands acquired by the Pueblo would be
deemed transferred into trust in the name of the United States
for the benefit of the Pueblo and declared part of the existing
Santa Clara Indian Reservation. Any acquisitions by the Pueblo
of Santa Clara would be voluntary.
CBO estimates that enacting title II would increase federal
payments to states by a total of about $1 million over the
2001-2005 period. Under current law, states receive a
percentage of the proceeds from certain land sold within their
boundaries. Enacting title II would likely increase the amount
of federal land sold, thereby benefitting the states receiving
a portion of the proceeds.
Estimated impact on the private sector: This bill contains
no new private-sector mandates as defined in UMRA.
Estimate prepared by: Federal Costs: Deborah Reis and Megan
Carroll. Impact on State, Local, and Tribal Governments:
Victoria Heid Hall. Impact on the Private Sector: Keith
Mattrick.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
regulatory impact evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 1892.
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. 1892, as ordered reported.
executive communications
On March 10, 2000 the Committee on Energy and Natural
Resources requested legislative reports from the Department of
Interior, Department of Agriculture and the Office of
Management and Budget setting forth Executive agency
recommendations on S. 1892. These reports had not been received
at the time the report on S. 1892 was filed. When the reports
become available, the Chairman will request that they be
printed in the Congressional Record for the advice of the
Senate. The testimony provided by the Forest Service and Bureau
of Land Management at the Subcommittee hearing follows:
Statement of Jack Craven, Director of Lands, Forest Service, Department
of Agriculture
Mr. Chairman and members of the subcommittee: Thank you for
inviting us here today to discuss the valuation of the Baca
Ranch in New Mexico. I am Jack Craven, Director of Lands for
the Forest Service, and I am accompanied today by Paul Tittman,
Chief Appraiser for the Forest Service.
In our testimony today, we will describe for you the
Federal land appraisal process, including the laws and
standards that we apply, and then show how that process was
applied to our valuation of the Baca Ranch. We will show you
the factors considered in the valuation of the Baca Ranch, and
why the purchase price of $101 million is the fair market value
of the land. Finally, we will address some of the issues raised
by the General Accounting Office audit of the appraisal. At the
conclusion of our testimony, we will be happy to respond to any
questions that you may have.
legal requirements for appraisals
In the market place, land is valued using appraisals. This
is true whether land is being valued by the Federal Government,
by commercial banks, or potential buyers and sellers of
property. An appraisal is a document, prepared in accordance
with accepted standards, which examines the attributes of
property affecting its value in order to determine its ``fair
market value.'' Simply stated, the fair market value of land is
the amount of cash that a willing buyer would pay a willing
seller in the open market.\1\
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\1\ ``Fair market value'' is defined in the Uniform Appraisal
Standards for Federal Land Acquisitions (herein ``Federal Standards'')
as, ``the amount in cash, or on terms reasonably equivalent to cash,
for which in all probability the property would be sold by a
knowledgeable owner willing but not obligated to sell to a
knowledgeable purchaser who desired but is not obligated to buy.''
Federal Standards, p. 4.
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Over 19 Federal agencies acquire land as part of their
programs and they all use the same appraisal techniques.
Federal agencies acquire land for many purposes, including the
construction of dams and reservoirs, highways, airports,
government buildings and facilities, as well as land
conservation. When the Federal Government appraises land, there
are substantive and procedural requirements of Federal law, as
well as accepted professional appraisal standards, which apply
in establishing fair market value for all Federal land
acquisitions.
In 1970, Congress enacted the Uniform Relocation Assistance
and Real Property Acquisition Polices Act,\2\ better known as
Public Law 91-646, to assure that all Federal real estate
acquisitions follow consistent and fair policies and
procedures. This statute requires that Federal agencies offer
to pay landowners the appraised fair market value of land. Not
only do appraisals benefit the Federal buyer and the American
taxpayer by assuring that the government does not pay too much
for a property, they also benefit the seller by assuming the
payment of fair and just compensation.
---------------------------------------------------------------------------
\2\ 42 U.S.C. Sec. Sec. 4601, et seq.
---------------------------------------------------------------------------
The Federal Government actually adopted appraisal standards
in 1963 when the Attorney General convened the Interagency Land
Acquisition Conference composed of representatives of Federal
land purchasing agencies. Under the auspices of the Conference,
the Uniform Appraisal Standards for Federal Land Acquisitions
were first published in 1972 (hereafter referred to as
``Federal Standards''). These Federal Standards, which have
twice been revised and updated, are well accepted in the
professional appraisal community as well as the Federal courts.
By regulations, the Federal Standards have been adopted by all
Federal land acquiring agencies. Often, Federal legislation
requires appraisals to be performed in conformity with the
Federal Standards, such as the pending legislation, S. 1892,
which would authorize the acquisition of the Baca Ranch.\3\
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\3\ S. 1892, (106th Cong., 1st Sess) at section 104(a) states:
``The acquisition . . . [of the Baca Ranch] shall be based on an
appraisal done in conformity with the Uniform Appraisal Standards for
Federal Land Acquisitions . . . and such purchase shall be on a willing
seller basis . . .''
---------------------------------------------------------------------------
appraisal requirements
There are some fundamental requirements for any appraisal.
First, it has to be prepared by a qualified appraiser who is
impartial and experienced at valuing the kind of properties
being appraised. Good judgment based on experience and personal
knowledge of the properties being appraised are essential
because the appraisal process has subjective elements, such as
comparing two or more distinct properties and attempting to
ascertain the elements by which they would differ in value.\4\
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\4\ The Federal Standards state: ``[An appraiser] must exercise
sound judgment based on known pertinent facts and circumstances and it
is their responsibility to obtain knowledge of all pertinent facts and
circumstances which can be acquired with diligent inquiry and search.
They must weigh and consider the relevant facts with good judgment and
make their decision, entirely on their own, in a sound professional
manner, completely unbiased by any consideration favoring either the
owner or the government. The appraisal report should be documented and
supported so as to convince an impartial reader of the soundness of the
appraiser's estimates, within the limits of integrity, judgment and
ethics.'' Federal Standards at section C-2, p. 89.
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A second requirement of a proper appraisal is that it must
assess fair market value utilizing one or more accepted
methodologies. Without getting into the various valuation
approaches,\5\ most agree that the appropriate methodology for
appraising the Baca Ranch is the comparable sales approach. A
comparable sales looks at arm's length transactions in lands in
the vicinity of and comparable to the land being appraised. The
Federal Standards note that elements for determining comparable
sales include property rights conveyed,\6\ financing terms,
conditions of sale, market conditions, location and physical
characteristics.\7\ We will have more to say about comparable
sales in a moment.
---------------------------------------------------------------------------
\5\ There are basically three accepted valuation approaches: the
comparative sales approach, which estimates a property's value by
comparing it with comparable properties that have been recently sold;
the income approach, which estimates a property's value by applying a
capitalization rate to its potential net income; and the cost approach,
which estimates a property's value by adding the estimated value of the
land to the current cost of constructing replacements for any
improvements (such as buildings) less depreciation on those
improvements.
\6\ Property rights refer to the various interests in land which
may include rights of access, water rights, minerals, and other
elements that constitute title to land. When comparing sales of real
property, the appraiser must examine what interests in land were
conveyed. For example, two properties may not be comparable if one
includes mineral rights and the other does not.
\7\ Federal Standards, pp. 11-12.
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the appraisers chosen to appraise the baca ranch
From the outset of negotiations with the owners of the Baca
Ranch, the Dunigan Family, the Forest Service made it clear
that it was required by law to offer the appraised fair market
value for the property. There are three means by which a
property can be appraised for acquisition by a Federal Agency.
The first option is for the agency to prepare an in-house
appraisal using its own staff appraiser. The second option is
for the agency to contract with an independent appraiser. The
third option is for the property owner to contract with an
independent appraiser. All three options are frequently used by
Federal Agencies. However, no matter which option is utilized,
the resulting appraisal must be prepared in conformity with the
Federal Standards, and must ultimately be approved for agency
use by a qualified government review appraiser.
In the case of the Baca Ranch, the Dunigans had concerns
over proprietary and confidential business information.
Therefore, they elected to contract for their own appraisal to
be done by the appraisal firm of Van Court and Co. of Denver,
Colorado. The Van Courts are very experienced appraisers and
hold prominent offices in national appraisal organizations, and
are qualified and licensed to appraise properties in New
Mexico.
Prior to the commencement of the appraisal work, the
appraisers for both the Dunigans and the Forest Service met and
agreed on the application of the Federal Standards and the
appraisal methodology to be used. When the Van Courts completed
their appraisal, it was submitted to the Forest Service for
review by two Forest Service review appraisers, Paul Tittman,
Chief Appraiser, and Gerald Sanchez, Regional Appraiser. As
noted herein the Forest Service review found that the Van
Courts' appraisal met the Federal Standards, and the appraisal
was approved for Forest Service use. The appraised fair market
value of the Baca Ranch was established at $101 million.
the van court appraisal of the baca ranch
In order for their appraisal to meet the Federal Standards,
the Van Courts had to make various analyses and determinations
which must be clearly documented. We will highlight the more
significant issues which were addressed in the appraisal, and
provide a summary of the findings and conclusions.
1. Determination of the highest and best use
In order to ascertain what a buyer would be willing to pay
for a property, the appraiser first consider its ``highest and
best use''. A property's ``highest and best use'' is the use
that is physically possible, legally permissible, financially
feasible and, under current market conditions, would offer the
maximum profitability for a likely buyer.\8\ Ordinarily, the
highest and best use is what the property is being used for at
the time of the appraisal. In the case of the Baca Ranch, the
appraiser, determined that the highest and best use would be
its existing multi-use regime for ranching, private
accommodation, and outfitting (a ``trophy ranch'').
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\8\ Federal Standards, Part A-3, p. 8, et seq.
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A trophy ranch is a premium property available to only the
wealthiest of buyers who can afford to enjoy the amenities of a
property without necessarily deriving sufficient income from it
to offset their investment or operating costs. These ranch
properties appeal to an affluent segment of society who have
exceptional buyer power and a desire for exclusivity and
seclusion with a ranch having a high degree of ``ambiance''.
Trophy ranches come in a wide variety of sizes, and
generally stand out as unusually attractive high quality
properties within a given market area. Prices for this class of
property are generally at the top of the market reflecting the
relative quality of this category of property, and
aesthetically they are far superior to the common ranch
typically found in rural America.
The Van Courts determined the highest and best use of the
Baca Ranch to be a trophy ranch based on sales and uses of
similar large ranch properties in the west. Typically, the
utilization of the timber and other resources of these kinds of
properties does not justify their high price as a buyer would
never be able to recoup his investment. Unlike the Baca Ranch,
some of these properties do not readily lend themselves to
subdivision and development due to their isolation, lack of
infrastructure, and the costs and time of marketing. The value
of a trophy ranch is in its natural amenities--in a word,
``uniqueness.''
2. The comparable sale approach to valuation
The Van Courts used the comparable sales approach to
valuing the Baca Ranch because that approach is most
appropriate for a ``trophy ranch'' used primarily for
recreation and which produces relatively little income and has
relatively few improvements.\9\ Comparable sales is also the
preferred approach under the Federal Standards because of its
proven reliability when there are sufficient market data
available. A comparable sale for purposes of this appraisal is
not just the sale of any large ranch, but it is rather among
those arms-length transactions involving other ranches with
large acreages having similarities to the Baca. Since all such
ranch properties are unique, they may have similarities in some
aspects and not others. The professional judgment of a
qualified appraiser is necessary to assess these similarities.
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\9\ The appraiser also considered the income approach in assessing
the value of the Baca, but chose not to rely upon it because it would
not be a valid approach under Federal Standards for a trophy ranch.
While the income potential for a property is often an essential element
to ascertaining its value, with a trophy ranch like the Baca, reliance
on such an analysis can severely distort the value and produce an
unreliable result. The value of a trophy ranch is in its uniqueness and
other values important to the buyer such as scenic qualities, wildlife,
and isolated location, not in its income potential from minerals,
timber, grazing, or similar uses.
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The comparable sales approach is procedurally
complicated,\10\ but conceptually simple. If you are valuing a
single family home in a community, you look to sales of homes
with similarities to the property you are valuing. Thus,
comparable sales would be other single family homes, of
equivalent size and construction, located in similar
residential neighborhoods. The job of the appraiser is to
examine, in person, those properties which are most similar and
ascertain the factors by which the subject property might bring
a higher or lower price on the open market.
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\10\ Federal appraisal standards require, among other things, that
appraisers collect, verify, analyze, and reconcile available data;
identify and consider appropriate market information; use all pertinent
information in developing the appraised value; and report their
analyses, opinions, and conclusions clearly and accurately in a manner
that is not misleading and that contains sufficient information to
allow users of the report to understand it properly. One of the jobs of
an appraiser is to use his professional judgment to ascertain how the
differences in properties might affect their respective values. This is
determined by site visits to the subject property and those of
comparability.
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3. Criteria for comparability
To appraise a trophy ranch like the Baca, the Van Courts
looked at the sales of large acreage ranch properties in New
Mexico and neighboring states. Among the various factors
considered were the changes in price of these properties over a
given period of time. Older sales have to be adjusted to
account for market fluctuations over time. Other considerations
include the relationship of size to price, the availability of
water sufficient to support the highest and best use of the
properties, the quality of the vegetative cover, and the
contribution of any structural or resource related
improvements. Also considered were the properties' aesthetics
and viewsheds and last, but not least, the quality of access to
and within the properties.
The Federal Standards require that six criteria have to be
analyzed in a comparable sale analysis:
Property rights: The property rights conveyed in a
transaction must be similar to the interest being appraised
(e.g. fee simple title compared with fee simple title).
Financial terms: The financial terms of a
transaction must be similar. For example, a cash sale might not
be treated as completely comparable to a sale where by the
seller finances the sale with a mortgage.
Conditions of Sale: The term and conditions under
which a property is sold affects comparability. A sale where
the seller is free not to sell would compare differently with a
distress sale where the owner was compelled to sell.
Market conditions: The demand and competition
surrounding sales needs to be similar.
Location: The physical location of properties
within a particular market area reflects similar market
conditions. With the Baca, the location of other sale
properties within northern New Mexico would be more comparable
than sales located in far removed states.
Physical characteristics: Properties have to be
compared on the basis of physical characteristics such as
vegetative cover, topography, waters, and access.
4. Examination of properties for possible comparability
In the course of appraising the Baca Ranch, the Van Courts
visited not only the Baca Ranch, but also made aerial and on-
the-ground visits to all of the recent large ranch sales within
the immediate competitive market area (northern New Mexico and
southern Colorado), as well as Montana, central Colorado, and
eastern Utah. Such visits are essential for an appraiser to
determine whether other sales are, in fact, actually
comparable. As a part of this process, value issues were
discussed with known buyers and sellers, as well as other
knowledgeable appraisers who have been active in valuing
similar properties.
5. The price/size relationship
The ``price/size'' relationship does not apply in
determining the value of the Baca Ranch. The size-price issue
relates to the price paid per acre, and is based on a
presumption that the values on a per-acre basis decrease with
the increased size of properties. For example, the per-acre
value of a five-acre tract is generally much higher than that
of a hundred-acre tract.
In comparing rural and relatively undeveloped properties,
the appraiser may adjust the relative sales prices between
properties of unequal size. Thus, when appraising a large
property, the appraiser may tend to discount the per acre sale
price of an otherwise comparable smaller property to account
for the price size ratio. However, the price size ratio is less
important in comparing larger sized properties and is generally
irrelevant in properties exceeding 10,000 acres. Thus, in the
case of the Baca, ``bigger'' did not result in a lower price
per acre when compared to the sale of other large tracts even
if those other large tracts were many thousands of acres
smaller.
In New Mexico, the price/size relationship has been
extensively studied. For example. the New Mexico State
University study entitled, New Mexico Ranch Values: Ranval
2000'', by L. Allen Torell, Ira Pearson and Scott Bailey,
correlates the relationship of size to price in the sales of
large ranch properties in New Mexico. The findings show that,
for properties of approximately 10,000 acres and more, size has
no measurable influence on the price per acre.
6. Analysis of sales for comparability
Determining comparability among properties is a process of
winnowing down many properties being considered to those few
which share attributes of the property being appraised based on
the six criteria referenced above.
The Van Courts initially considered 50 sales within the
Intermountain West. The initial 50 sales were then narrowed to
16, constituting the most similar sales that occurred within
the past 5 years. The Van Courts then analyzed and compared
these 16 sales directly to the Baca Ranch and finally focused
on the 5 sales determined to be the most comparable to the Baca
Ranch. Four of these sales are located in northern New Mexico,
and one was immediately north of the New Mexico Colorado
border. These 5 sales were then narrowed down to two sales as
having the greatest similarity, and hence comparability, to the
Baca Ranch. These two sales are the China Ranch and the Spirit
Bull Ranch.\11\
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\11\ The Chama Ranch sold in June, 1995, for $25,000,000 or $779
acre for 32,076 acres. Adjusted for time at 4% year, the price is $880/
acre as of September 1, 1998.
The Spirit Bull Ranch sold in March, 1998, 1998, for $15,300,000 or
$1,368 acre for 11,184 acres. Adjusted for time at 4% year, the price
is $1,395/acre as of September 1, 1998.
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Considering the six factors of comparability, it is clear
how the Chama Ranch and Spirit Bull Ranch properties are the
most comparable to the Baca Ranch.
Property rights: Both the Chama and Spirit Bull
ranches were fee simple transactions including water rights.
Financial terms: Both the Chama and Spirit Bull
transactions took place on terms equivalent to cash.
Conditions of Sale: The Chama and Spirit Bull
transactions were exposed to the competitive marketplace.
Market conditions: Both the Chama and Spirit Bull
transactions took place under similar market conditions where a
competitive interest in trophy ranch class properties was
demonstrated.
Location: Both Chama and Spirit Bull are located
in northern New Mexico, with similar access, and with exposure
to the same market conditions.
Physical characteristics: Both the Chama and
Spirit Bull properties have excellent viewsheds, water,
forests, and recreational opportunities.
The Van Courts determined that, among the sales they
examined, the Chama and Spirit Bull Ranches compared most
closely and favorably to the Baca Ranch on these factors.
Nonetheless, while the Chama and Spirit Bull Ranches share many
similar characteristics with the Baca, they are similar and do
not have its ecological and geological diversity.
The other sales were not deemed as sufficiently comparable
to the Baca Ranch due to their locations, their having
characteristics affecting value (such as title encumbrances).
their not being in the vicinity of the Baca, or their being
predominately agricultural in character and without the
recreational attributes found on the Baca.
Among the 16 sales considered, one that was dismissed was
the well-known 580,000-acre Vermejo Ranch. In that case, the
price and terms of the transaction could not be verified by any
reliable source that was a party to the transaction. This kind
of verification is required by the Federal Standards. Further,
the Vermejo Ranch is subject to significant outstanding mineral
leases which would have made comparison to the Baca Ranch very
difficult.
Another example of a non-comparable sale is the 90,000 acre
tract in southern Colorado cited by the GAO as having sold
recently for $196 per acre. Although this property was similar
in size to the Baca Ranch in New Mexico, it was not comparable
because it did not include any of the mineral rights of the
property. Without these rights, the property was not
financially viable for development and, as a result, its sale
was under distress. This illustrates why the appraiser has to
look beyond mere size to the other major factors affecting
price.
The Van Courts found the Chama Ranch and Spirit Bull Ranch
as the most comparable to the Baca Ranch. The other three sales
were not given further consideration because they were of
largely agricultural properties.
Chama Ranch sold in June, 1995, for $25,000,000 (or $779
per acre) for 32.076 acres. Adjusted for time at 4% per year,
the adjusted price of the Chama Ranch was approximately $880
per acre as of September 1, 1998.
The Spirit Bull Ranch sold in March, 1998, for $15,300,000
or $1,368 per acre) for 11,184 acres. Adjusted for time at 4%
per year, the adjusted price for Spirit Bull Ranch was $1,395
per acre as of September 1, 1998.
The Van Courts deemed the Chama Ranch and Spirit Bull Ranch
to ``bracket'' the market of properties comparable to the Baca
Ranch, that is, the Baca would fall somewhere between the
values of these two comparable sales. The Van Courts' analysis
concluded that the value of the Baca was more than the $880 per
acre ascribed to the Chama Ranch, but less than the $1,395 per
acre ascribed to the Spirit Bull Ranch. After various
quantifications of variables, the appraiser found the Baca to
be valued at $1,061 per acre, which was multiplied and rounded
to $101 million for the entire property.
The Committee may be interested to know that Spirit Bull
Ranch is under contract of sale. Since the completion of the
appraisal, a buyer has contracted to purchase the Spirit Bull
Ranch for $25,500,000 which is $2,280 per acre. This represents
an annual appreciation rate of over 29% per annum or 2.43% per
month! This rapid increase in value illustrates two important
factors. First, it corroborates the fact that the price/size
relationship is not a factor for this large acreage property.
Second, it shows a continuing upward climb in the price of
trophy ranch properties. While members of the Committee may
draw their own conclusions from this sale, it certainly
suggests an accelerating market for this class of property.
federal review of the baca ranch appraisal
The appraisal by Van Court and Company was completed and
submitted to the Forest Service for review in August, 1999. For
several weeks, the Forest Service review appraisers analyzed
its contents, often challenging points and requiring that the
appraisers justify their data and analysis. This process
necessitated revisions and refinements to the appraisal, as
well as downward adjustments to the valuation.
To provide its review appraisers with a clear understanding
of the general market for properties such as the Baca, the
Forest Service had previously contracted for its own market
survey. This survey provided an objective array of verified
market data by which to review the appraisal. It defined the
nature of recent ranch sales in the Intermountain West, and
provided the overall range of sale prices for ranch properties.
The survey did not differentiate between ranch properties
purchased for their agricultural income and those purchased for
recreational amenities.
The survey was not an appraisal and did not determine
comparability among the properties evaluated. Rather, it simply
provided a ``snapshot'' of the market for large rural property
sales in the western United States. Thus, when the appraisal
was submitted, the survey gave the Forest Service review
appraisers a factual basis for review of the appraisal's
analysis and conclusions.
When the appraisal was finally approved by the Forest
Service review appraisers, it approved a fair market valuation
of the Baca Ranch at $101 million, which is significantly less
than the value originally submitted by the Van Courts.
responses to the report of the general accounting office
As the Committee is well aware, the Forest Service strongly
disagrees with the analysis and conclusions of the GAO report
dated March, 2000.\12\ Nonetheless, GAO and the Forest Service
appear to agree on many points.
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\12\ ``Federal Land Management: Land Acquisition Issues Related to
the Baca Ranch Appraisal'', GAO/RCED-00-76.
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The appraisal prepared by Van Court & Company of
Denver, Colorado, dated September 10, 1998, was prepared by
qualified appraisers who are licensed to appraise property in
the State of New Mexico.
The Van Court appraisal satisfies all the
requirements of the Uniform Appraisal Standards for Federal
Land Acquisitions, and meets the requirements of Public Law 91-
646.
The Van Courts' determination that the highest and
best use of the Baca Ranch is as a multi-use regime for
ranching, private accommodation, and outfitting (a ``trophy
ranch'') was agreed to by the Forest Service and not challenged
by the GAO.
The most appropriate and reliable approach to
appraising the Baca Ranch is that of assessing comparable
sales.
The GAO auditors are not appraisers, and the
Office did not appraise the Baca Ranch. Therefore, the GAO's
report was not an appraisal and it was not intended to be such.
However, we must emphasize that the only way to properly
value land is through a complete appraisal. The GAO
acknowledges that its consulting appraiser did not prepare an
appraisal himself, nor did he visit the property or any
comparable properties as is required for any valuation analysis
compatible with the Federal Standards.\13\ Therefore, GAO's
conclusion that the Baca Ranch is worth less than the appraised
value is not a conclusion upon which anyone can rely to
determine value.
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\13\ The Federal Standards require that the appraiser make a
personal inspection of the property appraised. Federal Standards at
section B-1, p. 65.
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To substitute the GAO report for the federally approved
appraisal, would call the entire, well-established federal
appraisal process into question. However, it is clear you
cannot use a report that is not an appraisal to overturn a
Federally approved appraisal done by a qualified appraiser.
This is particularly the case where both the GAO and its
contract appraiser state that they have not appraised, or even
seen, the subject property.
We will not here debate anew each of the contentions of the
GAO. However, we will highlight what we believe to be the
essential errors of its analysis.
1. Comparability
Simply stated, GAO misapplies the concept of comparable
sales as used in appraisals. You cannot array sixteen property
sales based on a time adjusted sales price and use that as a
basis for comparison. Nor does the price/size relationship
apply to properties over 10,000 acres in size, yet GAO
continues to assert its relevance notwithstanding expert
analyses to the contrary.
The 16 sales that GAO analyzes on a size/price scale are
simply not comparable. Each may have some elements of
comparability with the Baca Ranch, but there is certainly no
basis to compare them solely on the basis of acreage and a time
adjusted sale price. Each of the 16 sales had different
attributes such as timber, water, pasture, and similar resource
values. They also differed on location, access to roads, and on
the interests in land being conveyed, all being critical
factors in determining comparability.
For example, GAO refers to the sale of a 90,000 acre tract
in Colorado for $196 per acre as a comparable sale to the Baca
owing to its similar size.\14\ However, that sale was examined
by the appraiser and found to be a conveyance of surface rights
only, and the sale was under duress since the landowner was
unable to consolidate the various outstanding rights needed to
develop the property. Therefore, it did not qualify as a
comparable sale.
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\14\ GAO Report, p. 5.
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2. The uniqueness of the Baca Ranch
GAO fails to accord the Baca Ranch any special value
considerations based on uniqueness. Disregarding all accepted
appraisal standards, but utilizing its ``one size fits all''
approach to valuation, it was necessary for GAO to discount the
uniqueness of the Baca Ranch.
Unique means ``one of a kind.'' It is a factor that
profoundly affects the value of anything, particularly real
estate. Yet uniqueness is hard to demonstrate on paper; that is
why all appraisers are required to inspect the property they
are appraising and to apply professional judgments based on
those inspections. Had the GAO reviewer taken the offered
opportunity to visit the Baca Ranch, he would have witnessed a
sight compared favorably with Yellowstone National Park and
similar national treasures.
The 95,000 acre Baca Ranch in northern New Mexico is a
unique land area. No one in this room or in GAO can seriously
doubt the significant scientific, cultural, historic,
recreational, ecological, and scenic values. It is permanently
protected from adverse development of the surrounding land
since it is bounded by the Bandelier National Monument, the
Jemez National Recreation Area, and the Santa Fe National
Forest. All these resource values have been extensively studied
and documented by the Forest Service.\15\ Had GAO or its review
appraiser evaluated these factors, the uniqueness of the Baca
Ranch would be self evident.
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\15\ The Forest Service has extensive knowledge of the Baca Ranch.
In 1993, acting pursuant to Congressional direction in Public Law 101-
556, the Forest Service prepared its Report on the Study of the Baca
Location No. 1, which extensively analyzed the Ranch's resources.
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3. Premium value versus premium price
As we noted in our responses to GAO, uniqueness contributes
to the premium value of the Baca Ranch. GAO confuses a premium
price with a premium value. It concludes that the Government
would be paying a ``premium price'' to acquire the Baca for
$101 million.
The Department of Agriculture takes a different view. When
we pay $101 million, we are paying the fair market value of a
property that is special and which cannot be duplicated
elsewhere in the market place. In other words, we are buying a
property having premium value. Thus, the difference between a
``premium price'' and a ``premium value'' is much than
semantic, it goes to the very heart of the opposite views of
fair market value by this Department and the GAO.
conclusion
All agree, even GAO, that the appraisal for the Baca Ranch
meets Federal Standards. We want to assure you that the review
done by the Forest Service Chief and Regional Appraisals was
fair, objective, and in conformance with federal standards.
Clearly different people, even different appraisers, can reach
differing conclusions of value as to any property. The Federal
system for conducting and reviewing appraisals was intended to
provide a uniform approach and standards so that we all--the
Forest Service, the Congress, and the American people--would
have confidence that we are both paying fairly to sellers of
property and yet not overpaying with taxpayer dollars.
We believe that the appraisal's valuation of $101 million
represents the fair market value. In purchasing the Baca Ranch
for this amount, the United States would be paying a fair
market value price for a premium property, a property so unique
that it is widely considered one of the most spectacular
natural and scenic areas of the nation still in private
ownership.
------
Statement of Larry Finfer, Assistant Director, Bureau of Land
Management
Mr. Chairman and members of the subcommittee, I appreciate
the opportunity to appear before you today to testify on S.
1892, the Valles Caldera Preservation Act. S. 1892 contains two
distinct Titles. Title I focuses primarily on the federal
acquisition and subsequent management of the Vales Caldera,
also referred to as the Baca Ranch. Title II, entitled
``Federal Land Transaction Facilitation,'' describes a
procedure for the sale of public lands which have been
identified for disposal by the managing agency, the Bureau of
Land Management (BLM). Title II also describes a process for
the use of the receipts of those land sales, which are to be
primarily directed to the purchase of private inholdings within
certain federally designated areas. The BLM will defer to the
testimony of the U.S. Forest Service in regard to Title I, as
the majority of the land to be acquired will be managed by the
Forest Service. Our comments today are directed toward Title
II, which has direct impact on the Bureau of Land Management.
Title II is very similar to S. 1129, the Federal Land
Transaction Facilitation Act, on which I testified before this
committee on July 21, 1999. At that time, I stated that the BLM
strongly supported the objective of the legislation. This
continues to be the case. But as stated in July 1999, I will
recommend some relatively minor amendments to assure effective
implementation and to help meet land management objectives
established under the Federal Land Policy and Management Act
(FLPMA), often referred to as ``BLM's Organic Act.''
Throughout the west, the BLM manages a great deal of
federal land that is intermingled with private lands. As a
result of the scattered and checkerboard ownership, the
management of some of these federal lands is difficult and
uneconomical. Through the land use planning process required
under the FLPMA, (P.L. 94-579), the Bureau has identified some
of these lands as potentially available for disposal. However,
the sale authority granted the BLM pursuant to FLPMA has not
been widely used for a number of reasons, including staffing
and disposition of sales receipts. As a result, much of this
land is still under federal management. Despite a relatively
small history of land sales, the BLM has made progress toward
improving management efficiency by consolidating land ownership
through exchanges, purchases, and negotiating agreements with
other land management agencies. Title II of S. 1892 will
provide another significant tool to assist us in this
consolidation, where appropriate.
The BLM is rapidly gaining invaluable experience in the
disposal of public lands. The Southern Nevada Public Land
Management Act of 1998 (PL 105-263), has helped to refine and
improve our land sales process. Similar to Title II, the
Southern Nevada Act provided for the sale of public land, but
the implementation was limited to the Las Vegas valley.
As noted in my previous testimony on S. 1129, one of our
most serious concerns with this proposed legislation is the
extent of its emphasis on acquisition of inholdings. Although
acquisition of inholdings is a legitimate and desirable goal,
dedicating 80% of the funds available for acquisition to
``inholdings'' is undesirable and could limit one of the
potentially valuable uses of the funds.
The FLPMA contains criteria for determining which public
lands are suitable for disposal and directs that these lands be
identified through the land use planning process. Title II is
consistent with this direction. However, section 205 (a) would
limit the scope of land sales to those lands identified for
disposal as of the date of enactment. Congress, through Report
language accompanying the FY 2000 Interior and Related Agencies
Appropriations bill, acknowledged BLM's position that many of
our current land use plans need to be updated. The President's
Budget request for FY 2001 contains significant funding for
this updating. For example, in New Mexico, an anticipated
update of the 1988 Farmington Resource Management Plan (RMP)
could identify up to 20,000 acres of land for disposal adjacent
to Aztec, Bloomfield, and Farmington. The 1988 RMP also
identified lands for disposal which would now be recommended
for retention based on new environmental considerations. We
would recommend that Section 205 be amended to allow for the
use of any updated BLM Resource Management Plan. We believe
this amendment would help us better assist communities as they
consider both growth opportunities and the preservation of open
spaces that are basic to the Western lifestyle.
Our testimony on S. 1129 stated our strong opposition to
any efforts to establish a yearly quota or acreage goal for
disposal. We are pleased that Title II of S. 1892 reflects this
position. Past testimony also supported the dedication of land
sales receipts to acquisition within a special fund not subject
to further appropriation. We are pleased that title II supports
this position as well.
Other recommendations for specific amendments to Title II
language, many of which were included in our testimony on S.
1129, include:
Section 203 (2) Federally Designated Area: For
clarification, the cross reference to section 103 of the FLPMA
should be changed to section 103(o). Similarly, the definition
of ``Exceptional Resource'' contained in Title II should be
expanded to consider a wider variety of values for the use of
sale receipts, including fish and wildlife resources or other
natural systems and processes. Such language is consistent with
the idea of special emphasis areas identified in Section 103 of
the FLPMA.
Section 203 (3) Inholding: This special designation
definition should be expanded to include ``inholdings'' within
large tracts of public land administered by the BLM that do not
have special designation. This might be done by identifying
lands within BLM resource management plan boundaries as
federally designated areas. In our testimony on S. 1129 we
provided examples of how local communities throughout the West
are looking to Federal lands to be used in concert with local
and regional habitat conservation planning. One example
provided was in San Diego County, where consolidation of a
large block of Federal lands--with the support of local
officials--will allow the county to approve continued economic
development on other private lands. This legislation should
facilitate such collaborative efforts. The definition should
also be expanded to include inholdings within BLM Wilderness
Study Areas, as these are areas which have been proposed for
special consideration through a public land use planning
process.
Section 204 (a)(1) In General: The identification procedure
for inholdings is unclear and need to be clarified. The primary
focus of land acquisition should continue to be on the
importance of resource values to be acquired by the public. If
it is expected that agencies will identify all ``inholdings,''
as defined, and also whether the owner is a willing seller, the
task would be immense and costly. Further, it would be
difficult to manage given that many sellers will reassess their
willingness to sell over the life of the program. Accordingly
the information could be outdated a soon as it is gathered. We
would prefer to carry a flexible, visible and public process
whereby we could identify willing sellers and determine how
acquisition may resolve management issues.
Section 204(a)(2) In General and Section 206(c)(3)
Priority: It could be difficult to establish the date on which
the land became an ``inholding'' and the date the ``willing
seller'' acquired the property. The research to document
thousands of individual private parcels that qualify under this
bill will be arduous. Each seller would be required to provide
documentation to justify the purchase date, and many of them
would not willingly provide this information. The BLM
recommends instead that a public forum be conducted to
determine interest in this program. Each interested owner could
request placement on a list, however, the individual agencies
would continue to decide on the highest priority areas for
acquisition.
Sections 206(b) Availability and 206(c) Priority We believe
it would be prudent to designate a lead agency for management
of the Federal Land Disposal Account to avoid redundant
accounting and tracking procedures. The BLM is the logical
choice for designation as the lead because the lands to be sold
are currently under BLM management. Similar direction was
included in the Southern Nevada Lands Act as the law also
provides a special account which is available for use by a
number of Federal Agencies. The BLM, in coordination with the
other Federal agencies, is currently finalizing the process for
the management of the Southern Nevada Fund, and this process
can be easily adapted to the management of the Federal Land
Disposal Account.
Section 206(c) Federal Land Disposal Account: As discussed
earlier, we believe the definition of ``exceptional resources''
should be expanded. We also believe the inclusion of ``adjacent
to federally designated areas'' may not be the most effective
means to ensure protection of such exceptionally sensitive
lands. Title II already contains a prohibition on the purchase
of lands which would be uneconomical to manage. Given this
safeguard, expanded authority for purchase of exceptional
resource lands not adjacent to federally designated areas, with
emphasis on inholdings, would be willing to discuss a cap on
the amount of money which could be spent annually on the
purchase of lands other than inholdings.
Section 206(c)(2)(C) Administrative and Other Expenses:
Based on our experience with the Southern Nevada Public Land
Management Act, we suggest the inclusion of this statement:
``The reimbursement of costs incurred by BLM in implementation
of this Act shall include not only the direct costs for sales
or exchanges but also other BLM administrative costs. Other
administrative costs include those expenditures for
establishing and administering the Federal Lands Disposal
Account under the Act, developing implementation procedures,
and consultation with legal counsel.'' Such clarifying
language, applicable to the Southern Nevada Act, was contained
in Report language accompanying the FY 2000 Interior and
Related Agencies Appropriations bill.
Section 206(f) Termination, contains a cross reference to
section 5. This reference should be changed to section 205.
We appreciate the cooperative working relationship that we
have had with the Committee and Senator Domenici on this
legislation. We look forward to continuing that relationships
to accomplish our common goals.
That concludes my testimony. I would be glad to respond to
any questions.
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. 1892 as
reported.