[Senate Report 106-267]
[From the U.S. Government Publishing Office]





                                                       Calendar No. 497

106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-267

=======================================================================



 
                    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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'').
---------------------------------------------------------------------------
    \8\ Federal Standards, Part A-3, p. 8, et seq.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \12\ ``Federal Land Management: Land Acquisition Issues Related to 
the Baca Ranch Appraisal'', GAO/RCED-00-76.
---------------------------------------------------------------------------
     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.
---------------------------------------------------------------------------
    \13\ The Federal Standards require that the appraiser make a 
personal inspection of the property appraised. Federal Standards at 
section B-1, p. 65.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \14\ GAO Report, p. 5.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
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.

                                

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