[Senate Report 109-10]
[From the U.S. Government Publishing Office]



                                                        Calendar No. 21
109th Congress                                                   Report
                                 SENATE
 1st Session                                                     109-10

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



 
                VALLES CALDERA PRESERVATION ACT OF 2005

                                _______
                                

               February 23, 2005.--Ordered to be printed

 Filed, under authority of the order of the Senate of February 17, 2005

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 212]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 212) to amend the Vlles Caldera 
Preservation Act to improve the preservation of the Valles 
Caldera, and for other purposes, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                         Purpose of the Measure

    The purpose of S. 212 is to amend the Valles Caldera 
Preservation Act to improve the preservation of the Valles 
Caldera, and for other purposes.

                          Background and Need

    The Valles Caldera National Preserve (Preserve) is a 
94,000-acre parcel of land in northern New Mexico that was 
acquired by the Federal Government and is managed by a special 
trust. The Valles Caldera Preservation Act directed the 
Secretary of Agriculture (Secretary) to acquire the Baca Ranch 
and to manage it as a preserve. Further, the law established 
the Valles Caldera Trust (Trust), a governmental corporation to 
manage the Preserve.
    Since passage of the Valles Caldera Preservation Act in 
2000, the Trust has experienced some growing pains. Some of the 
Federal policies on management and personnel do not meet the 
needs of the Trust and some of the policy simply needs to be 
clarified so the Trust and the Forest Service can more 
effectively address the issues faced by the Trust.
    S. 212 addresses issues that have arisen to help facilitate 
and ensure that the Trust can operate in a cost efficient and 
effective manner.

                          Legislative History

    S. 212 was introduced by Senators Domenici and Bingaman on 
January 31, 2005. A similar bill (S. 1582) was introduced by 
Senators Domenici and Bingaman in the 108th Congress. The 
Subcommittee on Public Lands and Forests held a hearing on 
September 11, 2003 (S. Hrg. 108-196). At its business meeting 
on April 28, 2004, the Committee ordered the bill favorably 
reported with an amendment in the nature of a substitute (S. 
Rept. 108-269). The Senate passed S. 1582, as amended, by 
unanimous consent on September 15, 2004.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in an 
open business session on February 9, 2005, by unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
212.

                      Section-by-Section Analysis

    Section 1 entitles the bill the ``Valles Caldera 
Preservation Act of 2005''.
    Section 2(a) amends section 104(e) of the Valles Caldera 
Preservation Act (16 U.S.C. 698v-2(e)) by removing the willing 
seller limitation from the original law and by directing the 
Secretary to acquire the minority mineral interests at the 
Preserve. It requires these interests to be acquired with 
available funds or through a declaration of taking if 
negotiations are unsuccessful by the date 60 days after 
enactment of the Act. Further, any difference between the 
estimated just compensation by the Secretary and the amount 
awarded shall be paid from the permanent judgment appropriation 
authorized by section 1304 of title 31, United States Code.
    Subsection (b) amends section 106(e) of the Valles Caldera 
Preservation Act (16 U.S.C. 698v-4(e)) by clarifying that the 
Trust shall determine the character of, and necessity for, any 
obligations and expenditures of the Trust and the manner in 
which obligations and expenditures shall be incurred and paid.
    Subsection (c) amends section 106(g) of the Valles Caldera 
Preservation Act (16 U.S.C. 698v-4(g)) to allow the members of 
the Board of Trustees, the executive director and one 
additional employee of the Trust to solicit donations to the 
Trust.
    Subsection (d) amends section 106(h)(1) of the Valles 
Caldera Preservation Act (16 U.S.C. 698v-4(h)(1) to allow the 
Trust to retain monies received from claims, judgments, or 
settlements arising from activities occurring on the Baca Ranch 
or the Preserve after October 27, 1999.
    Section 3 amends section 107(e) of the Valles Caldera 
Preservation Act (16 U.S.C. 698v-5(e)) to allow the chairman of 
the Board of Trustees to be compensated for each day the chair 
is engaged in the performance of duties for the Board of 
Trustees. Compensation will not exceed 25 percent of the annual 
rate of pay for level IV of the Executive Schedule.
    Section 4a amends section 108(c)(3) of the Valles Caldera 
Preservation Act (16 U.S.C. 698v-6(c)(3)) to clarify that the 
Trust may not dispose of real property, but may dispose of and 
sell forage, forest products, or marketable renewable 
resources.
    Subsection (b) amends section 108(g) of the Valles Caldera 
Preservation Act (16 U.S.C. 698v-6(g)) to direct the Secretary, 
in consultation with the Trust, to develop a fire preparedness, 
suppression, and emergency rehabilitation services plan for the 
Preserve that is consistent with the management plan developed 
by the Trust and to provide those services on a non-
reimbursable basis. The Secretary may also provide 
presuppression and nonemergency rehabilitation and restoration 
services on a reimbursable basis.

                   Cost and Budgetary Considerations

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

                                                 February 15, 2005.
Hon. Pete V. Domenici,
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. 212, the Valles 
Caldera Preservation Act of 2005.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Megan 
Carroll and Deborah Reis.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 212--Valles Caldera Preservation Act of 2005

    Summary: S. 212 would amend Public Law 106-248, which 
established the Valles Caldera Preserve in New Mexico and 
created the Valles Caldera Trust, a government-owned 
corporation, to manage the preserve. The amendments to the 
existing law would enable the Secretary of Agriculture to 
acquire, by condemnation, certain subsurface rights to the 
preserve's Baca Ranch area if the Secretary cannot negotiate a 
voluntary sale with the current owners. If condemnation is 
necessary, the owners would be entitled to just compensation as 
determined by a court. The bill would specify that any 
difference between the Secretary's estimate of the value of the 
subsurface rights and the amount awarded by the court would be 
paid from the permanent claims and judgments fund.
    Assuming that the Baca Ranch subsurface rights would be 
acquired by a government declaration of taking (a method of 
condemnation), CBO estimates that enacting S. 212 would 
increase direct spending by about $3 million over the 2005-2008 
period. Enacting the bill would not affect revenues.
    S. 212 contains no intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA) and would have no 
significant impact on the budgets of State, local, or tribal 
governments. In the event that the Secretary of Agriculture 
uses a declaration of taking to acquire certain mineral 
interests of the Baca Ranch, such an acquisition would 
constitute a private-sector mandate as defined by UMRA. The 
cost of the mandate would be the fair market value of the 
mineral interests and expenses incurred by the private-sector 
owners in transferring those interests to the Federal 
Government. Based on information from Government resources, CBO 
estimates that the direct cost of the mandate would fall well 
below the annual threshold established by UMRA for private-
sector mandates ($123 million in 2005, adjusted annually for 
inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 212 is shown in the following table. The 
costs of this legislation falls within budget function 300 
(natural resources and environment) and 800 (general 
government).

----------------------------------------------------------------------------------------------------------------
                                                       By fiscal year, in millions of dollars--
                                    ----------------------------------------------------------------------------
                                      2005   2006   2007   2008   2009   2010   2011   2012   2013   2014   2015
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Estimated Budget Authority.........      0      0      0      1      0      0      0      0      0      0      0
Estimated Outlays..................      2      0      0      1      0      0      0      0      0      0      0
----------------------------------------------------------------------------------------------------------------

    Basis of Estimate: For this estimate, CBO assumes that S. 
212 will be enacted during fiscal year 2005 and that the 
federal government will assume ownership of the Baca Ranch 
subsurface rights soon thereafter. Based on information 
provided by land management agencies regarding the value of 
mineral rights, the historical ``premiums'' paid for property 
acquired by litigation, and the length of time typically 
required to resolve similar takings proceedings, we assume that 
a court would award a total of $3 million in compensation to 
the owners of the subsurface rights over the 2005-2008 period.
    As provided by the bill, $2 million of the expected 
judgment award (equal to the government appraisal of the 
subsurface value) would be derived from existing appropriations 
for land acquisition, and $1 million (the estimated excess of 
the award over the appraised value) would be paid from the 
permanent claims and judgments account. Because we expect that 
the $2 million of previously appropriated funds would not have 
been spent in the next several years in the absence of the 
legislation, using that amount to pay a portion of the judgment 
would increase mandatory outlays. We expect that the $2 million 
would be paid to the property owners or deposited with the 
court when the agency takes possession of the subsurface rights 
in 2005. Using the permanent claims and judgments account to 
pay the difference between the total award and the appraised 
value would increase both budget authority and outlays by $1 
million.
    Estimated impact on state, local, and tribal governments: 
S. 212 contains no intergovernmental mandates as defined in 
UMRA and would have no significant impact on the budgets of 
state, local, or tribal governments.
    Estimated impact on the private sector: In the event that 
the Secretary of Agriculture uses a declaration of taking to 
acquire certain mineral interests of the Baca Ranch, such an 
acquisition would constitute a private-sector mandate as 
defined by UMRA. The cost of the mandate would be the fair 
market value of the mineral interests and expenses incurred by 
the private-sector owners in transferring those interests to 
the federal government. Based on information from government 
sources, CBO estimates that the direct cost of the mandate 
would fall well below the annual threshold established by UMRA 
for private-sector mandates ($123 million in 2005, adjusted 
annually for inflation).
    The bill would direct the Secretary of Agriculture to 
acquire the mineral interests without the sellers' consent 
should negotiations for a sale fail after 60 days. Should those 
negotiations fail, the Secretary of Agriculture would be 
required to file a declaration of taking with the court. The 
declaration of taking would force the owners of the geothermal 
and mineral interests to give up ownership in exchange for a 
sum equal to the fair market value as determined by the court. 
According to an appraisal done by the Forest Service in 2001, 
the mineral and geothermal interests on the Baca Ranch that are 
privately held have a fair market value of almost $2 million. 
In December 2001, the Forest Service's offer for purchase of 
the interests based on this appraisal was rejected.
    Estimate prepared by: Federal Costs: Megan Carroll and 
Deborah Reis; Impact on State, Local, and Tribal Governments: 
Marjorie Millier; and Impact on the Private Sector: Selena 
Caldera.
    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. 212.
    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. 212.

                        Executive Communications

    The views of the Administration were included in testimony 
received by the Committee at a hearing on September 11, 2003.

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

    Mr. Chairman and Members of the Subcommittee:

           *       *       *       *       *       *       *

S. 1582--Valles Caldera Preservation Act of 2003
    S. 1582, introduced by Senators Domenici and Bingaman, 
would make modifications to Public Law 106-248, the Valles 
Caldera Preservation Act. The Administration would have no 
objection to S. 1582, if amended, to address concerns regarding 
the Federal competitive service, firefighting expenditures and 
the permanent Judgment Fund.
    The Valles Caldera National Preserve located in central New 
Mexico is a unique landmass, with nationally important 
scientific, cultural, historic, recreational, ecological, 
wildlife, and fisheries values. In passing the Valles Caldera 
Preservation Act in 2000, Congress recognized those values and 
established the National Preserve as an experiment in public 
land administration that incorporates elements of public and 
private administration so as to promote long-term financial 
stability consistent with the protection of the natural 
resources and the sustained yield for timber production, and 
domesticated livestock grazing. Under the terms and conditions 
of the 2000 Act, Secretary of Agriculture Ann Veneman 
authorized the Valles Caldera Trust to assume management of the 
National Preserve in August 2002. The Trust, comprised of 9 
members appointed by the President, now oversees the management 
of the Preserve.
    S. 1582 would:
          Direct Federal agencies to classify rates of 
        compensation and classification of Trust employees so 
        that these employees are not precluded from 
        consideration for Federal competitive service based on 
        their current employment;
          Allow the Board of Trustees to designate any Trust 
        employee to solicit donations (under current law, only 
        the Trustees may solicit donations);
          Allow the Board of Trustees to set the compensation 
        of the chair, subject to certain limitations;
          Clarify that the prohibition against the disposal of 
        real property by the Trust does not include the sale or 
        other disposal of forage, forest products or marketable 
        renewable resources;
          Allow the Trust, subject to the laws applicable to 
        Government corporations, to determine the character and 
        necessity for any obligations and expenditures of the 
        Trust and the manner in which expenditures and 
        obligations shall be incurred, allowed, and paid;
          Authorize the Trust to utilize the permanent judgment 
        appropriation provided under section 1304 of title 31, 
        U.S.C., for a claim, judgment, or settlement against 
        the Trust; and
          Direct the Secretary to provide, to the extent 
        generally authorized at other units of the National 
        Forest System, fire suppression and rehabilitation 
        services and wildland fire severity funding for 
        extraordinary preparedness. (The Secretary of 
        Agriculture currently may provide pre-suppression, 
        suppression and rehabilitation services at the request 
        of the Trust, subject to reimbursement.)
    The Administration has several concerns with S. 1582.
    First, it should limit the number of Trust employees that 
may accept gifts in order to minimize the potential for fraud, 
conflicts of interest, or other ethical concerns.
    Second, we have been advised that the Department of Justice 
opposes section 2(e) of the bill, regarding the eligibility of 
the Trust to pay claims, judgments, and settlements from the 
permanent judgment appropriation at 31 U.S.C. Sec. 1304 (the 
``Judgment Fund''). In general, government corporations like 
the Trust should pay judgments and settlements out of their own 
funds. Because the Trust is an autonomous corporation with its 
own funds and an entity whose liabilities are properly charged 
to corporate funds, it is appropriate for the Trust to continue 
to satisfy judgments and settlements against it out of Trust 
funds.
    Third, OPM advises that Section 2(a) of the bill would 
extend to excepted service employees of the Trust a 
preferential opportunity to apply for competitive service 
positions elsewhere that are not open to Federal employees 
generally, thereby creating an inequity between Trust employees 
and excepted service employees throughout Government who have 
no such opportunity.
    Fourth, complex or large fires can require the expenditure 
of extensive fire fighting and emergency stabilization and 
rehabilitation resources. However, the bill provides no 
limitation, by time or amount, to the funds that could be 
provided to the Trust under these proposed authorities. The 
original act provides an expectation that the Trust should work 
toward the goal of financial sustainability. We assume S. 1582 
continues that expectation with regard to fire suppression. The 
measure could be improved with the inclusion of language to 
establish limits of duration and funding for expenditures 
associated with firefighting together with appropriate levels 
of reimbursement.
    In addition, the intent of Sec. 4(b)(2) for the Secretary 
to provide ``rehabilitation'' needs to be clarified as to 
whether the intent is for the Secretary to provide emergency 
stabilization or rehabilitation. These are two different 
programs. Emergency stabilization funds come from the wildland 
fire emergency operations account and are meant to protect 
persons, property and resources immediately after a large and 
damaging wildfire. Rehabilitation activities are longer term 
and are conducted through other ongoing management activities 
funded under different program appropriations. We believe that 
the bill should focus solely upon emergency stabilization 
activities on the Preserve, subject to the same time and amount 
limitations discussed earlier related to firefighting.
    In addition, section 4(b)(2) would delete the current 
authority for the Secretary to provide the Trust presuppression 
activities subject to reimbursement. We believe it is 
appropriate for presuppression and rehabilitation activities to 
be provided by the Forest Service, under a cooperative 
agreement, with reimbursement by the Trust.
    This concludes my statement. I would be pleased to answer 
any questions that you may have.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, S. 212, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed in shown in roman):

               VALLES CALDERA NATIONAL PRESERVE AND TRUST


              Public Law 106-248 (16 U.S.C. 698V Et Seq.)


          TITLE I--VALLES CALDERA NATIONAL PRESERVE AND TRUST

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Valles Caldera 
Preservation Act''.

           *       *       *       *       *       *       *


SEC. 104. ACQUISITION OF LANDS.

           *       *       *       *       *       *       *


    (e) Outstanding Mineral Interests.--[The acquisition]
          (1) In general.--The acquisition of the Baca Ranch by 
        the Secretary shall be subject to all outstanding valid 
        existing mineral interests. [The Secretary]
          (2) Acquisition.--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]
          (3) Administration.--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.
          (4) Available funds.--Any such interests shall be 
        acquired with available funds.
          (5) Declaration of taking.--
                  (A) In general.--If negotiations to acquire 
                the interests are unsuccessful by the date that 
                is 60 days after the date of enactment of this 
                paragraph, the Secretary shall acquire the 
                interests pursuant to section 3114 of title 40, 
                United States Code.
                  (B) Source of funds.--Any difference between 
                the sum of money estimated to be just 
                compensation by the Secretary and the amount 
                awarded shall be paid from the permanent 
                judgment appropriation under section 1304 of 
                title 31, United States Code.

           *       *       *       *       *       *       *


SEC. 106. THE VALLES CALDERA TRUST.

           *       *       *       *       *       *       *


      (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.
          (4) Obligations and expenditures.--Subject to the 
        laws applicable to Government corporations, the Trust 
        shall determine--
                  (A) the character of, and the necessity for, 
                any obligations and expenditures of the Trust; 
                and
                  (B) the manner in which obligations and 
                expenditures shall be incurred, allowed, and 
                paid.
    (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] The members of the 
Board of Trustees, the executive director, and 1 additional 
employee of the Trust in an executive position designated by 
the Board of Trustees or the executive director 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)] 
        subsection (g), from claims, judgments, or settlements 
        arising from activities occurring on the Baca Ranch or 
        the Preserve after October 27, 1999, 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.

           *       *       *       *       *       *       *


SEC. 107. BOARD OF TRUSTEES.

           *       *       *       *       *       *       *


    (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] Except as 
        provided in paragraph (3), 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]
                  (A) Selection.--Trustees shall select a chair 
                from the membership of the Board.
                  (B) Compensation.--On request of the chair, 
                the chair may be compensated at a rate 
                determined by the Board of Trustees, but not to 
                exceed the daily equivalent of the annual rate 
                of pay for level IV of the Executive Schedule 
                under section 5315 of title 5, United States 
                Code, for each day (including travel time) in 
                which the chair is engaged in the performance 
                of duties of the Board of Trustees.
                  (C) Maximum rate of pay.--The total amount of 
                compensation paid to the chair for a fiscal 
                year under subparagraph (B) shall not exceed 25 
                percent of the annual rate of pay for level IV 
                of the Executive Schedule under section 5315 of 
                title 5, United States Code.

           *       *       *       *       *       *       *


SEC. 108. RESOURCE MANAGEMENT.

           *       *       *       *       *       *       *


    (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]
                  (A) In general.--The Trust may not dispose of 
                any real property in, or convey any water 
                rights appurtenant to the Preserve. [The Trust]
                  (B) Maximum duration.--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]
                  (C) Termination.--The easement, contract, 
                lease, or other agreement shall provide that, 
                upon termination of the Trust, such easement, 
                contract, lease or agreement is terminated.
                  (D) Exclusions.--For the purposes of this 
                paragraph, the disposal of real property does 
                not include the sale or other disposal of 
                forage, forest products, or marketable 
                renewable resources.

           *       *       *       *       *       *       *

    (g) Law Enforcement and Fire Management.--[The Secretary]
          (1) Law enforcement.--
                  (A) In general.--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]
                  (B) Federal agency.--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.]
          (2) Fire management.--
                  (A) Non-reimbursable services.--
                          (i) Development of plan.--The 
                        Secretary shall, in consultation with 
                        the Trust, develop a plan to carry out 
                        fire preparedness, suppression, and 
                        emergency rehabilitation services on 
                        the Preserve.
                          (ii) Consistency with management 
                        program.--The plan shall be consistent 
                        with the management program developed 
                        pursuant to subsection (d).
                          (iii) Cooperative agreement.--To the 
                        extent generally authorized at other 
                        units of the National Forest System, 
                        the Secretary shall provide the 
                        services to be carried out pursuant to 
                        the plan under a cooperative agreement 
                        entered into between the Secretary and 
                        the Trust.
                  (B) Reimbursable services.--To the extent 
                generally authorized at other units of the 
                National Forest System, the Secretary may 
                provide presuppression and nonemergency 
                rehabilitation and restoration services for the 
                Trust at any time on a reimbursable basis.

                                  
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