[Senate Report 108-271]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 526
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-271
======================================================================


 
                   CRAIG RECREATION LAND PURCHASE ACT

                                _______
                                

                  May 20, 2004.--Ordered to be printed

                                _______
                                

   Mr. Domenici, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1778]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1778) to authorize a land conveyance 
between the United States and the City of Craig, Alaska, 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:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Craig Recreation Land Purchase Act''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) City.--The term ``City'' means the City of Craig, Alaska.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.

SEC. 3. CONVEYANCE TO SECRETARY OF AGRICULTURE.

  (a) In General.--If, not later than 180 days after the date on which 
the City receives a copy of the appraisal conducted under subsection 
(c), the City offers to convey to the Secretary all right, title, and 
interest of the City in and to the parcels of non-Federal land 
described in subsection (b), the Secretary, subject to the availability 
of appropriations, shall--
          (1) accept the offer; and
          (2) on conveyance of the land to the Secretary, pay to the 
        City an amount equal to the appraised value of the land, as 
        determined under subsection (c).
  (b) Description of Land.--The non-Federal land referred to in 
subsection (a) consists of--
          (1) the municipal land identified on the map entitled 
        ``Informational Map, Sunnahae Trail and Recreation Parcel and 
        Craig Cannery Property'' and dated August 2003;
          (2) lots 1 and 1A, Block 11-A, as identified on the City of 
        Craig Subdivision Plat, Craig Tideland Addition, Patent # 155 
        (Inst. 69-982, Ketchikan Recording Office), dated April 21, 
        2004, consisting of approximately 22,353 square feet of land; 
        and
          (3) the portion of Beach Road eastward of a projected line 
        between the southwest corner of lot 1, Block 11, USS 1430 and 
        the northwest corner of lot 1, Block 11-A, as identified on the 
        City of Craig Subdivision Plat, Craig Tideland Addition, Patent 
        # 155 (Inst. 69-982, Ketchikan Recording Office), dated April 
        21, 2004, consisting of approximately 4,700 square feet of 
        land.
  (c) Appraisals.--
          (1) In general.--Before conveying the land under subsection 
        (a), the Secretary shall--
                  (A) conduct an appraisal of the land, in accordance 
                with--
                          (i) the Uniform Appraisal Standards for 
                        Federal Land Acquisitions;
                          (ii) the Uniform Standards of Professional 
                        Appraisal Practice; and
                          (iii) Forest Service Appraisal Directives; 
                        and
                  (B) submit to the City a copy of the appraisal.
          (2) Payment of costs.--
                  (A) City.--The City shall pay the costs of appraising 
                the land described in subsection (b)(1).
                  (B) Secretary.--The Secretary shall pay the costs of 
                appraising the land described in paragraphs (2) and (3) 
                of subsection (b).
  (d) Management.--Any land acquired under subsection (a) shall be--
          (1) included in the Tongass National Forest; and
          (2) administered by the Secretary in accordance with the laws 
        (including regulations) and forest plan applicable to the 
        Tongass National Forest.

SEC. 4. ACQUISITION OF LAND BY THE CITY OF CRAIG.

  The amount received by the City under section 3(a)(2) shall be used 
by the City to acquire the Craig cannery property, as depicted on the 
map entitled ``Informational Map, Sunnahae Trail and Recreation Parcel 
and Craig Cannery Property'' and dated August 2003.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated--
          (1) to the Forest Service for the reconstruction of the 
        Sunnahae Trail, $250,000; and
          (2) such sums as are necessary to carry out this Act.

                         PURPOSE OF THE MEASURE

    The purpose of S. 1778 is to authorize a land conveyance 
between the United States and the City of Craig, Alaska.

                          BACKGROUND AND NEED

    S. 1778 authorizes the Secretary of Agriculture to acquire 
approximately 350 acres of land from the City of Craig, Alaska 
for addition to the Tongass National Forest. It further 
authorizes the Secretary to pay to the City of Craig, subject 
to the availability of appropriated funds, the appraised value 
of the land, which the Committee believes will be around $2 
million. The land in question is known as the ``Sunnahae Trail 
and Recreation Parcel'' and consists of a recreational trail, 
trailhead, and mountaintop property.
    The will use the proceeds from the sale of the Sunnahae 
Trail and Recreation Parcel to acquire approximately 10 acres 
in downtown Craig, known as the ``Craig Cannery Property'' from 
the Wards Cove Packing Company. The plans to use the Cannery 
Property to expand its harbor and for commercial development.
    The City of Craig is located on Prince of Wales Island in 
southeastern Alaska. The economy of Prince of Wales Island has 
suffered in recent years with the loss of jobs in the timber 
industry. Unemployment in the area has reached seasonal highs 
of between 19 and 25 percent in the past decade.
    Enactment of S. 1778 will enable the U.S. Forest Service to 
acquire a recreational trail and two lots adjacent to their 
administrative site in Craig and, at the same time, help the 
City of Craig acquire a valuable industrial site for commercial 
redevelopment. The entire transaction will be subject to 
Federal appraisal standards, will take place only on a willing-
seller basis, and will be subject to the availability of 
appropriated funds. The Committee believes the transaction is 
in the public interest.

                          LEGISLATIVE HISTORY

    S. 1778 was introduced by Senator Lisa Murkowski on October 
23, 2003. Senator Stevens is a cosponsor. The Subcommittee on 
Public Lands and Forests held a hearing on March 10, 2004. At 
its business meeting on April 28, 2004, the Committee ordered 
S. 1778 favorably reported, with an amendment in the nature of 
a substitute.
    In the 107th Congress, a similar measure (S. 3003) was 
introduced by Senators Frank Murkowski and Stevens on September 
25, 2002, and was favorably reported by the Committee on 
October 8, 2002, without amendment. It was placed on the Senate 
Legislative Calendar, but no further action occurred in the 
107th Congress.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in an 
open business session on April 27, 2004, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
1778, if amended as described herein.

                          COMMITTEE AMENDMENT

    The joint staff amendment in the nature of a substitute 
added lots currently owned by the City of Craig, Alaska, that 
the City of Craig will convey to the Tongass National Forest 
and clarifies which parties will pay for the surveys and 
appraisals of each parcel of land involved in the conveyance. 
Further, it makes technical corrections to map references.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 entitles the measure the ``Craig Recreation Land 
Purchase Act''.
    Section 2 defines terms used in the bill.
    Section 3 directs the Secretary of Agriculture to accept 
title and all rights to the Sunnahae Trail and Recreation 
Parcel if offered within 180 days after the date the City of 
Craig receives the appraisal conducted pursuant to section 
3(c), and if appropriated funds are made available.
    Subsection (c) directs the Secretary of Agriculture to 
conduct an appraisal of the Sunnahae Trail and Recreation 
Parcel that conforms with the Uniform Appraisal Standards for 
Federal Land Acquisitions, among other things.
    Subsection (d) directs that lands received by the Secretary 
shall be included in the Tongass National Forest and managed in 
accordance with the laws, regulations, and forest plan 
applicable to the Tongass National Forest.
    Section 4 requires the City of Craig to use the funds 
received for the Sunnahae Trail and Recreation Parcel to 
purchase the Craig Cannery property.
    Section 5 authorizes appropriations, including $250,000 for 
the reconstruction of the Sunnahae Trail.

                   COST AND BUDGETARY CONSIDERATIONS

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      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. 1778.
    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. 1778.

                        EXECUTIVE COMMUNICATIONS

    On March 10, 2004, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
Agriculture and the Office of Management and Budget setting 
forth executive views on S. 1778. These reports had not been 
received at the time the report on S. 1778 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 (agency) at the Subcommittee 
hearing follows:

     Statement of Mark Rey, Under Secretary, Natural Resources and 
          Environment, United States Department of Agriculture

    Mr. Chairman:

           *       *       *       *       *       *       *

S. 1778--Craig Recreation Land Purchase Act
    The Department would have no objection to the enactment of 
S. 1778 if all the following concerns are addressed.
    S. 1778 would require the Secretary of Agriculture to 
purchase, at appraised value, the ``Sunnahae Trail and 
Recreation Parcel'' described in Sec. 2, as an addition to the 
Tongass National Forest. The funds received by the City of 
Craig under S. 1778 would be used by the to purchase the 
``Wards Cove Property'' described in Sec. 3, for local economic 
development.
    We support the City of Craig's interest in economic 
development opportunities. The City of Craig is surrounded by 
ANCSA corporate land, and has a limited taxable land base. 
Craig anchors the nine smaller towns and villages on Prince of 
Wales Island, and the economic stability of Craig is critical 
to the economy of the island as a whole.
    We do note that acquisition of the ``Sunnahae Trail'' 
parcel will present significant challenges for its 
administration as a component of the National Forest System. 
The parcel is small, isolated from other federal lands, and 
encumbered by outstanding mineral rights. We would like to work 
with the Committee and the City of Craig to investigate other 
options that address mutual interests. For example, the City of 
Craig holds beach lots adjacent to the Craig Ranger District 
compound, which might be more appropriate for sale to the 
United States.
    The ``Sunnahae Trail'' parcel includes about 350 acres of 
trail, trailhead, and mountaintop property surrounded by 
private land. Much of the parcel is a narrow strip on either 
side of a trail in need of extensive reconstruction. 
Surrounding lands are owned by Shan Seet, an ANCSA Corporation, 
and have been extensively logged. The City of Craig owns only 
the surface estate; the subsurface estate is owned by Sealaska 
Corporation.
    S. 1778 would directly authorize appropriation of $250,000 
to the Forest Service for reconstruction of the Sunnahae Trail. 
Reconstruction of the trail would cost far more. Section 2 
would require the Secretary to purchase the Sunnahae Trail 
parcel, at appraised value. Without a current appraisal, we do 
not know how much this would cost, but a total cost to the 
government of more than one million dollars is possible. This 
purchase and reconstruction would limit the flexibility of the 
Forest Service to address other priority needs throughout the 
full length of the trails under its administration. This 
flexibility is essential to protecting and enhancing the 
Nation's comprehensive interstate network of trails that 
provide a wide variety of experiences, resources, and services 
for all types of trail users.
    We also note that proper reconstruction of the Sunnahae 
Trail to avoid steep slopes and minimize environmental impacts 
would follow a different alignment. The parcel to be conveyed 
under S. 1778 follows the existing alignment.

           *       *       *       *       *       *       *


                        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. 1778, as 
ordered reported.

                                  
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