[House Report 113-167]
[From the U.S. Government Publishing Office]


113th Congress  }                                           {    Report
                        HOUSE OF REPRESENTATIVES
 1st Session    }                                           {   113-167

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



 
      SOUTHEAST ARIZONA LAND EXCHANGE AND CONSERVATION ACT OF 2013

                                _______
                                

 July 22, 2013.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 687]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 687) to facilitate the efficient extraction of 
mineral resources in southeast Arizona by authorizing and 
directing an exchange of Federal and non-Federal land, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Southeast Arizona 
Land Exchange and Conservation Act of 2013''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. Definitions.
Sec. 4. Land exchange.
Sec. 5. Conveyance and management of non-Federal land.
Sec. 6. Value adjustment payment to United States.
Sec. 7. Withdrawal.
Sec. 8. Apache leap.
Sec. 9. Miscellaneous provisions.

SEC. 2. FINDINGS AND PURPOSE.

  (a) Findings.--Congress finds that--
          (1) the land exchange furthers public objectives referenced 
        in section 206 of the Federal Land Policy and Management Act of 
        1976 (43 U.S.C. 1716) including--
                  (A) promoting significant job and other economic 
                opportunities in a part of the State of Arizona that 
                has a long history of mining, but is currently 
                experiencing high unemployment rates and economic 
                difficulties;
                  (B) facilitating the development of a world-class 
                domestic copper deposit capable of meeting a 
                significant portion of the annual United States demand 
                for this strategic and important mineral, in an area 
                which has already been subject to mining operations;
                  (C) significantly enhancing Federal, State, and local 
                revenue collections in a time of severe governmental 
                budget shortfalls;
                  (D) securing Federal ownership and protection of land 
                with significant fish and wildlife, recreational, 
                scenic, water, riparian, cultural, and other public 
                values;
                  (E) assisting more efficient Federal land management 
                via Federal acquisition of land for addition to the Las 
                Cienegas and San Pedro National Conservation Areas, and 
                to the Tonto and Coconino National Forests;
                  (F) providing opportunity for community expansion and 
                economic diversification adjacent to the towns of 
                Superior, Miami, and Globe, Arizona; and
                  (G) protecting the cultural resources and other 
                values of the Apache Leap escarpment located near 
                Superior, Arizona; and
          (2) the land exchange is, therefore, in the public interest.
  (b) Purpose.--It is the purpose of this Act to authorize, direct, 
facilitate, and expedite the exchange of land between Resolution Copper 
and the United States.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Apache leap.--The term ``Apache Leap'' means the 
        approximately 807 acres of land depicted on the map entitled 
        ``Southeast Arizona Land Exchange and Conservation Act of 2013-
        Apache Leap'' and dated February 2013.
          (2) Federal land.--The term ``Federal land'' means the 
        approximately 2,422 acres of land located in Pinal County, 
        Arizona, depicted on the map entitled ``Southeast Arizona Land 
        Exchange and Conservation Act of 2013-Federal Parcel-Oak Flat'' 
        and dated February 2013.
          (3) Indian tribe.--The term ``Indian tribe'' has the meaning 
        given the term in section 4 of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 450b).
          (4) Non-federal land.--The term ``non-Federal land'' means 
        the parcels of land owned by Resolution Copper that are 
        described in section 5(a) and, if necessary to equalize the 
        land exchange under section 4, section 4(e)(2)(A)(i).
          (5) Oak flat campground.--The term ``Oak Flat Campground'' 
        means the approximately 50 acres of land comprising 
        approximately 16 developed campsites depicted on the map 
        entitled ``Southeast Arizona Land Exchange and Conservation Act 
        of 2013-Oak Flat Campground'' and dated February 2013.
          (6) Oak flat withdrawal area.--The term ``Oak Flat Withdrawal 
        Area'' means the approximately 760 acres of land depicted on 
        the map entitled ``Southeast Arizona Land Exchange and 
        Conservation Act of 2013-Oak Flat Withdrawal Area'' and dated 
        February 2013.
          (7) Resolution copper.--The term ``Resolution Copper'' means 
        Resolution Copper Mining, LLC, a Delaware limited liability 
        company, including any successor, assign, affiliate, member, or 
        joint venturer of Resolution Copper Mining, LLC.
          (8) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.
          (9) State.--The term ``State'' means the State of Arizona.
          (10) Town.--The term ``Town'' means the incorporated town of 
        Superior, Arizona.

SEC. 4. LAND EXCHANGE.

  (a) In General.--Subject to the provisions of this Act, if Resolution 
Copper offers to convey to the United States all right, title, and 
interest of Resolution Copper in and to the non-Federal land, the 
Secretary is authorized and directed to convey to Resolution Copper, 
all right, title, and interest of the United States in and to the 
Federal land.
  (b) Conditions on Acceptance.--Title to any non-Federal land conveyed 
by Resolution Copper to the United States under this Act shall be in a 
form that--
          (1) is acceptable to the Secretary, for land to be 
        administered by the Forest Service and the Secretary of the 
        Interior, for land to be administered by the Bureau of Land 
        Management; and
          (2) conforms to the title approval standards of the Attorney 
        General of the United States applicable to land acquisitions by 
        the Federal Government.
  (c) Consultation With Indian Tribes.--If not undertaken prior to 
enactment of this Act, within 30 days of the date of enactment of this 
Act, the Secretary shall engage in government-to-government 
consultation with affected Indian tribes concerning issues related to 
the land exchange, in accordance with applicable laws (including 
regulations).
  (d) Appraisals.--
          (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary and Resolution Copper 
        shall select an appraiser to conduct appraisals of the Federal 
        land and non-Federal land in compliance with the requirements 
        of section 254.9 of title 36, Code of Federal Regulations.
          (2) Requirements.--
                  (A) In general.--Except as provided in subparagraph 
                (B), an appraisal prepared under this subsection shall 
                be conducted in accordance with nationally recognized 
                appraisal standards, including--
                          (i) the Uniform Appraisal Standards for 
                        Federal Land Acquisitions; and
                          (ii) the Uniform Standards of Professional 
                        Appraisal Practice.
                  (B) Final appraised value.--After the final appraised 
                values of the Federal land and non-Federal land are 
                determined and approved by the Secretary, the Secretary 
                shall not be required to reappraise or update the final 
                appraised value--
                          (i) for a period of 3 years beginning on the 
                        date of the approval by the Secretary of the 
                        final appraised value; or
                          (ii) at all, in accordance with section 
                        254.14 of title 36, Code of Federal Regulations 
                        (or a successor regulation), after an exchange 
                        agreement is entered into by Resolution Copper 
                        and the Secretary.
                  (C) Improvements.--Any improvements made by 
                Resolution Copper prior to entering into an exchange 
                agreement shall not be included in the appraised value 
                of the Federal land.
                  (D) Public review.--Before consummating the land 
                exchange under this Act, the Secretary shall make the 
                appraisals of the land to be exchanged (or a summary 
                thereof) available for public review.
          (3) Appraisal information.--The appraisal prepared under this 
        subsection shall include a detailed income capitalization 
        approach analysis of the market value of the Federal land which 
        may be utilized, as appropriate, to determine the value of the 
        Federal land, and shall be the basis for calculation of any 
        payment under section 6.
  (e) Equal Value Land Exchange.--
          (1) In general.--The value of the Federal land and non-
        Federal land to be exchanged under this Act shall be equal or 
        shall be equalized in accordance with this subsection.
          (2) Surplus of federal land value.--
                  (A) In general.--If the final appraised value of the 
                Federal land exceeds the value of the non-Federal land, 
                Resolution Copper shall--
                          (i) convey additional non-Federal land in the 
                        State to the Secretary or the Secretary of the 
                        Interior, consistent with the requirements of 
                        this Act and subject to the approval of the 
                        applicable Secretary;
                          (ii) make a cash payment to the United 
                        States; or
                          (iii) use a combination of the methods 
                        described in clauses (i) and (ii), as agreed to 
                        by Resolution Copper, the Secretary, and the 
                        Secretary of the Interior.
                  (B) Amount of payment.--The Secretary may accept a 
                payment in excess of 25 percent of the total value of 
                the land or interests conveyed, notwithstanding section 
                206(b) of the Federal Land Policy and Management Act of 
                1976 (43 U.S.C. 1716(b)).
                  (C) Disposition and use of proceeds.--Any amounts 
                received by the United States under this subparagraph 
                shall be deposited in the fund established under Public 
                Law 90-171 (commonly known as the ``Sisk Act''; 16 
                U.S.C. 484a) and shall be made available, in such 
                amounts as are provided in advance in appropriation 
                Acts, to the Secretary for the acquisition of land for 
                addition to the National Forest System.
          (3) Surplus of non-federal land.--If the final appraised 
        value of the non-Federal land exceeds the value of the Federal 
        land--
                  (A) the United States shall not make a payment to 
                Resolution Copper to equalize the value; and
                  (B) the surplus value of the non-Federal land shall 
                be considered to be a donation by Resolution Copper to 
                the United States.
  (f) Oak Flat Withdrawal Area.--
          (1) Permits.--Subject to the provisions of this subsection 
        and notwithstanding any withdrawal of the Oak Flat Withdrawal 
        Area from the mining, mineral leasing, or public land laws, the 
        Secretary, upon enactment of this Act, shall issue to 
        Resolution Copper--
                  (A) if so requested by Resolution Copper, within 30 
                days of such request, a special use permit to carry out 
                mineral exploration activities under the Oak Flat 
                Withdrawal Area from existing drill pads located 
                outside the Area, if the activities would not disturb 
                the surface of the Area; and
                  (B) if so requested by Resolution Copper, within 90 
                days of such request, a special use permit to carry out 
                mineral exploration activities within the Oak Flat 
                Withdrawal Area (but not within the Oak Flat 
                Campground), if the activities are conducted from a 
                single exploratory drill pad which is located to 
                reasonably minimize visual and noise impacts on the 
                Campground.
          (2) Conditions.--Any activities undertaken in accordance with 
        this subsection shall be subject to such reasonable terms and 
        conditions as the Secretary may require.
          (3) Termination.--The authorization for Resolution Copper to 
        undertake mineral exploration activities under this subsection 
        shall remain in effect until the Oak Flat Withdrawal Area land 
        is conveyed to Resolution Copper in accordance with this Act.
  (g) Costs.--As a condition of the land exchange under this Act, 
Resolution Copper shall agree to pay, without compensation, all costs 
that are--
          (1) associated with the land exchange and any environmental 
        review document under subsection (j); and
          (2) agreed to by the Secretary.
  (h) Use of Federal Land.--The Federal land to be conveyed to 
Resolution Copper under this Act shall be available to Resolution 
Copper for mining and related activities subject to and in accordance 
with applicable Federal, State, and local laws pertaining to mining and 
related activities on land in private ownership.
  (i) Intent of Congress.--It is the intent of Congress that the land 
exchange directed by this Act shall be consummated not later than one 
year after the date of enactment of this Act.
  (j) Environmental Compliance.--Compliance with the requirements of 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
under this Act shall be as follows:
          (1) Prior to commencing production in commercial quantities 
        of any valuable mineral from the Federal land conveyed to 
        Resolution Copper under this Act (except for any production 
        from exploration and mine development shafts, adits, and 
        tunnels needed to determine feasibility and pilot plant testing 
        of commercial production or to access the ore body and tailing 
        deposition areas), Resolution Copper shall submit to the 
        Secretary a proposed mine plan of operations.
          (2) The Secretary shall, within 3 years of such submission, 
        complete preparation of an environmental review document in 
        accordance with section 102(2) of the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4322(2)) which shall be used as 
        the basis for all decisions under applicable Federal laws, 
        rules and regulations regarding any Federal actions or 
        authorizations related to the proposed mine and mine plan of 
        operations of Resolution Copper, including the construction of 
        associated power, water, transportation, processing, tailings, 
        waste dump, and other ancillary facilities.

SEC. 5. CONVEYANCE AND MANAGEMENT OF NON-FEDERAL LAND.

  (a) Conveyance.--On receipt of title to the Federal land, Resolution 
Copper shall simultaneously convey--
          (1) to the Secretary, all right, title, and interest that the 
        Secretary determines to be acceptable in and to--
                  (A) the approximately 147 acres of land located in 
                Gila County, Arizona, depicted on the map entitled 
                ``Southeast Arizona Land Exchange and Conservation Act 
                of 2013-Non-Federal Parcel-Turkey Creek'' and dated 
                February 2013;
                  (B) the approximately 148 acres of land located in 
                Yavapai County, Arizona, depicted on the map entitled 
                ``Southeast Arizona Land Exchange and Conservation Act 
                of 2013-Non-Federal Parcel-Tangle Creek'' and dated 
                February 2013;
                  (C) the approximately 149 acres of land located in 
                Maricopa County, Arizona, depicted on the map entitled 
                ``Southeast Arizona Land Exchange and Conservation Act 
                of 2013-Non-Federal Parcel-Cave Creek'' and dated 
                February 2013;
                  (D) the approximately 640 acres of land located in 
                Coconino County, Arizona, depicted on the map entitled 
                ``Southeast Arizona Land Exchange and Conservation Act 
                of 2013-Non-Federal Parcel-East Clear Creek'' and dated 
                February 2013; and
                  (E) the approximately 110 acres of land located in 
                Pinal County, Arizona, depicted on the map entitled 
                ``Southeast Arizona Land Exchange and Conservation Act 
                of 2013-Apache Leap South End'' and dated February 
                2013; and
          (2) to the Secretary of the Interior, all right, title, and 
        interest that the Secretary of the Interior determines to be 
        acceptable in and to--
                  (A) the approximately 3,050 acres of land located in 
                Pinal County, Arizona, identified as ``Lands to DOI'' 
                as generally depicted on the map entitled ``Southeast 
                Arizona Land Exchange and Conservation Act of 2013-Non-
                Federal Parcel-Lower San Pedro River'' and dated 
                February 2013;
                  (B) the approximately 160 acres of land located in 
                Gila and Pinal Counties, Arizona, identified as ``Lands 
                to DOI'' as generally depicted on the map entitled 
                ``Southeast Arizona Land Exchange and Conservation Act 
                of 2013-Non-Federal Parcel-Dripping Springs'' and dated 
                February 2013; and
                  (C) the approximately 940 acres of land located in 
                Santa Cruz County, Arizona, identified as ``Lands to 
                DOI'' as generally depicted on the map entitled 
                ``Southeast Arizona Land Exchange and Conservation Act 
                of 2013-Non-Federal Parcel-Appleton Ranch'' and dated 
                February 2013.
  (b) Management of Acquired Land.--
          (1) Land acquired by the secretary.--
                  (A) In general.--Land acquired by the Secretary under 
                this Act shall--
                          (i) become part of the national forest in 
                        which the land is located; and
                          (ii) be administered in accordance with the 
                        laws applicable to the National Forest System.
                  (B) Boundary revision.--On the acquisition of land by 
                the Secretary under this Act, the boundaries of the 
                national forest shall be modified to reflect the 
                inclusion of the acquired land.
                  (C) Land and water conservation fund.--For purposes 
                of section 7 of the Land and Water Conservation Fund 
                Act of 1965 (16 U.S.C. 4601-9), the boundaries of a 
                national forest in which land acquired by the Secretary 
                is located shall be deemed to be the boundaries of that 
                forest as in existence on January 1, 1965.
          (2) Land acquired by the secretary of the interior.--
                  (A) San pedro national conservation area.--
                          (i) In general.--The land acquired by the 
                        Secretary of the Interior under subsection 
                        (a)(2)(A) shall be added to, and administered 
                        as part of, the San Pedro National Conservation 
                        Area in accordance with the laws (including 
                        regulations) applicable to the Conservation 
                        Area.
                          (ii) Management plan.--Not later than 2 years 
                        after the date on which the land is acquired, 
                        the Secretary of the Interior shall update the 
                        management plan for the San Pedro National 
                        Conservation Area to reflect the management 
                        requirements of the acquired land.
                  (B) Dripping springs.--Land acquired by the Secretary 
                of the Interior under subsection (a)(2)(B) shall be 
                managed in accordance with the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1701 et seq.) and 
                applicable land use plans.
                  (C) Las cienegas national conservation area.--Land 
                acquired by the Secretary of the Interior under 
                subsection (a)(2)(C) shall be added to, and 
                administered as part of, the Las Cienegas National 
                Conservation Area in accordance with the laws 
                (including regulations) applicable to the Conservation 
                Area.
  (c) Surrender of Rights.--In addition to the conveyance of the non-
Federal land to the United States under this Act, and as a condition of 
the land exchange, Resolution Copper shall surrender to the United 
States, without compensation, the rights held by Resolution Copper 
under the mining laws and other laws of the United States to 
commercially extract minerals under Apache Leap.

SEC. 6. VALUE ADJUSTMENT PAYMENT TO UNITED STATES.

  (a) Annual Production Reporting.--
          (1) Report required.--As a condition of the land exchange 
        under this Act, Resolution Copper shall submit to the Secretary 
        of the Interior an annual report indicating the quantity of 
        locatable minerals produced during the preceding calendar year 
        in commercial quantities from the Federal land conveyed to 
        Resolution Copper under section 4. The first report is required 
        to be submitted not later than February 15 of the first 
        calendar year beginning after the date of commencement of 
        production of valuable locatable minerals in commercial 
        quantities from such Federal land. The reports shall be 
        submitted February 15 of each calendar year thereafter.
          (2) Sharing reports with state.--The Secretary shall make 
        each report received under paragraph (1) available to the 
        State.
          (3) Report contents.--The reports under paragraph (1) shall 
        comply with any recordkeeping and reporting requirements 
        prescribed by the Secretary or required by applicable Federal 
        laws in effect at the time of production.
  (b) Payment on Production.--If the cumulative production of valuable 
locatable minerals produced in commercial quantities from the Federal 
land conveyed to Resolution Copper under section 4 exceeds the quantity 
of production of locatable minerals from the Federal land used in the 
income capitalization approach analysis prepared under section 4(d), 
Resolution Copper shall pay to the United States, by not later than 
March 15 of each applicable calendar year, a value adjustment payment 
for the quantity of excess production at the same rate assumed for the 
income capitalization approach analysis prepared under section 4(d).
  (c) State Law Unaffected.--Nothing in this section modifies, expands, 
diminishes, amends, or otherwise affects any State law relating to the 
imposition, application, timing, or collection of a State excise or 
severance tax.
  (d) Use of Funds.--
          (1) Separate fund.--All funds paid to the United States under 
        this section shall be deposited in a special fund established 
        in the Treasury and shall be available, in such amounts as are 
        provided in advance in appropriation Acts, to the Secretary and 
        the Secretary of the Interior only for the purposes authorized 
        by paragraph (2).
          (2) Authorized use.--Amounts in the special fund established 
        pursuant to paragraph (1) shall be used for maintenance, 
        repair, and rehabilitation projects for Forest Service and 
        Bureau of Land Management assets.

SEC. 7. WITHDRAWAL.

  Subject to valid existing rights, Apache Leap and any land acquired 
by the United States under this Act are withdrawn from all forms of--
          (1) entry, appropriation, or disposal under the public land 
        laws;
          (2) location, entry, and patent under the mining laws; and
          (3) disposition under the mineral leasing, mineral materials, 
        and geothermal leasing laws.

SEC. 8. APACHE LEAP.

  (a) Management.--
          (1) In general.--The Secretary shall manage Apache Leap to 
        preserve the natural character of Apache Leap and to protect 
        archeological and cultural resources located on Apache Leap.
          (2) Special use permits.--The Secretary may issue to 
        Resolution Copper special use permits allowing Resolution 
        Copper to carry out underground activities (other than the 
        commercial extraction of minerals) under the surface of Apache 
        Leap that the Secretary determines would not disturb the 
        surface of the land, subject to any terms and conditions that 
        the Secretary may require.
          (3) Fences; signage.--The Secretary may allow use of the 
        surface of Apache Leap for installation of fences, signs, 
        monitoring devices, or other measures necessary to protect the 
        health and safety of the public, protect resources located on 
        Apache Leap, or to ensure that activities conducted under 
        paragraph (2) do not affect the surface of Apache Leap.
  (b) Plan.--
          (1) In general.--Not later than 3 years after the date of 
        enactment of this Act, the Secretary, in consultation with 
        affected Indian tribes, the Town, Resolution Copper, and other 
        interested members of the public, shall prepare a management 
        plan for Apache Leap.
          (2) Considerations.--In preparing the plan under paragraph 
        (1), the Secretary shall consider whether additional measures 
        are necessary to--
                  (A) protect the cultural, archaeological, or 
                historical resources of Apache Leap, including 
                permanent or seasonal closures of all or a portion of 
                Apache Leap; and
                  (B) provide access for recreation.
  (c) Mining Activities.--The provisions of this section shall not 
impose additional restrictions on mining activities carried out by 
Resolution Copper adjacent to, or outside of, the Apache Leap area 
beyond those otherwise applicable to mining activities on privately 
owned land under Federal, State, and local laws, rules and regulations.

SEC. 9. MISCELLANEOUS PROVISIONS.

  (a) Revocation of Orders; Withdrawal.--
          (1) Revocation of orders.--Any public land order that 
        withdraws the Federal land from appropriation or disposal under 
        a public land law shall be revoked to the extent necessary to 
        permit disposal of the land.
          (2) Withdrawal.--On the date of enactment of this Act, if the 
        Federal land or any Federal interest in the non-Federal land to 
        be exchanged under section 4 is not withdrawn or segregated 
        from entry and appropriation under a public land law (including 
        mining and mineral leasing laws and the Geothermal Steam Act of 
        1970 (30 U.S.C. 1001 et seq.)), the land or interest shall be 
        withdrawn, without further action required by the Secretary 
        concerned, from entry and appropriation. The withdrawal shall 
        be terminated--
                  (A) on the date of consummation of the land exchange; 
                or
                  (B) if Resolution Copper notifies the Secretary in 
                writing that it has elected to withdraw from the land 
                exchange pursuant to section 206(d) of the Federal Land 
                Policy and Management Act of 1976, as amended (43 
                U.S.C. 1716(d)).
          (3) Rights of resolution copper.--Nothing in this Act shall 
        interfere with, limit, or otherwise impair, the unpatented 
        mining claims or rights currently held by Resolution Copper on 
        the Federal land, nor in any way change, diminish, qualify, or 
        otherwise impact Resolution Copper's rights and ability to 
        conduct activities on the Federal land under such unpatented 
        mining claims and the general mining laws of the United States, 
        including the permitting or authorization of such activities.
  (b) Maps, Estimates, and Descriptions.--
          (1) Minor errors.--The Secretary concerned and Resolution 
        Copper may correct, by mutual agreement, any minor errors in 
        any map, acreage estimate, or description of any land conveyed 
        or exchanged under this Act.
          (2) Conflict.--If there is a conflict between a map, an 
        acreage estimate, or a description of land in this Act, the map 
        shall control unless the Secretary concerned and Resolution 
        Copper mutually agree otherwise.
          (3) Availability.--On the date of enactment of this Act, the 
        Secretary shall file and make available for public inspection 
        in the Office of the Supervisor, Tonto National Forest, each 
        map referred to in this Act.

                          PURPOSE OF THE BILL

    The purpose of H.R. 687 is to facilitate the efficient 
extraction of mineral resources in southeast Arizona by 
authorizing and directing an exchange of Federal and non-
Federal land.

                  BACKGROUND AND NEED FOR LEGISLATION

    Resolution Copper Mining LLC (Resolution Copper) owns land 
and holds mining claims near the Town of Superior, in 
southeastern Arizona. In the late 1990s, Resolution Copper's 
exploratory activities revealed the existence of a very large 
copper deposit on its claims, located between 4,500 to 7,000 
feet below the surface. Resolution Copper is interested in 
developing a large underground mine where the ore would be 
extracted and removed.
    The Oak Flat Campground, part of the Tonto National Forest, 
is located in the center of Resolution Copper's land holdings 
and mining claims. Approximately 760 acres of National Forest 
lands in and around the Oak Flat Campground were withdrawn from 
entry under the mining laws in 1955 along with numerous other 
tracks of land for the purpose of establishing several 
campgrounds on the public lands. See Public Land Order 1229 
(Sept. 27, 1955); 20 Fed. Reg. 7336-37 (Oct. 1, 1955).
    Members of the Arizona Delegation have proposed a land 
exchange allowing Resolution Copper to acquire the campground 
and adjacent withdrawn National Forest lands so the company can 
proceed with development of the mine. The Secretary of 
Agriculture would convey to Resolution Copper certain lands and 
interests in the Tonto National Forest, Arizona, in exchange 
for private lands of environmental and archeological 
significance in the State of Arizona for management by the U.S. 
Forest Service and the Bureau of Land Management (BLM). 
Legislation is required for the proposed land exchange because 
it includes National Forest System lands.
    The three-part land exchange would occur under H.R. 687, as 
follows:
    U.S. Forest Service acquisition of land from Resolution 
Copper: The Forest Service would acquire a total of 1,194 acres 
from five different locations. These include Resolution Copper 
lands located within Coconino (640 acres), Gila (147 acres), 
Maricopa (149 acres), Pinal (110 acres) and Yavapai (148 acres) 
Counties. These lands contain riparian habitats and sensitive 
cultural areas, in addition to the several hundred acres that 
contain habitat for endangered species, and archeological 
sites.
    BLM acquisition of land from Resolution Copper: BLM would 
acquire a total of 4,150 acres from three separate locations. 
Three thousand fifty acres would be acquired from the lower San 
Pedro River area, which includes one of the largest mesquite 
bosques (dense forest) left in Arizona, critical habitat for 
several endangered species, and critical bird habitat. This 
would be an important addition to the San Pedro Conservation 
Area. BLM would also acquire 160 acres in Gila County and 940 
acres in Santa Cruz County.
    Resolution Copper acquisition of land from Forest Service: 
Resolution Copper will acquire the 2,422 acre ``Oak Flat'' 
parcel, which is checker-boarded within Resolution Copper's 
lands. Resolution Copper already has unpatented mining claims 
that cover about 75% of the parcel, including the culturally 
sensitive Apache Leap area. This exchange will provide more 
protection for Apache Leap since the conveyance will prohibit 
any type of extraction activity and transfer this land to the 
federal government indefinitely. If the land received by 
Resolution Copper exceeds the value of the lands received by 
the federal government, Resolution Copper may provide 
additional lands to equal the exchange or provide a monetary 
payment. Any cash payment will be deposited in a fund 
established under the Sisk Act and the proceeds used to buy 
additional forest land for the National Forest System 
nationally and maintain existing federal facilities.
    Enactment of this land exchange would allow for development 
of the mine while adding other important lands for Federal 
management. The mine could provide up to one-quarter of the 
nation's estimated annual copper needs. Resolution Copper 
estimates that the total economic impact of the mine will 
exceed $60 billion and support 3,700 jobs annually.

                            COMMITTEE ACTION

    H.R. 687 was introduced on February 14, 2013, by 
Congressman Paul Gosar (R-AZ). The bill was referred to the 
Committee on Natural Resources, and within the Committee to the 
Subcommittees on Energy and Mineral Resources and Public Lands 
and Environmental Regulation. On March 21, 2013, the 
Subcommittee on Energy and Mineral Resources held a hearing on 
the bill. On May 15, 2013, the Full Natural Resources Committee 
met to consider the bill. The Subcommittees on Energy and 
Mineral Resources and Public Lands and Environmental Regulation 
were discharged by unanimous consent. Congressman Gosar offered 
an amendment designated #1 to the bill; the amendment was 
adopted by voice vote. Congressman Peter DeFazio (D-OR) offered 
an amendment designated .001 to the bill; the amendment was not 
adopted by a bipartisan roll call vote of 16 to 24, as follows:


    Congressman Tony Cardenas (D-CA) offered an amendment 
designated .003 to the bill; the amendment was not adopted by a 
roll call vote of 18 to 22, as follows:


    Congressman Raul Grijalva (D-AZ) offered an amendment 
designated .036 to the bill; the amendment was not adopted by a 
roll call vote of 18 to 22, as follows:


    Congressman Raul Grijalva (D-AZ) offered an amendment 
designated .037 to the bill; the amendment was not adopted by 
voice vote. Congressman Raul Grijalva (D-AZ) offered an 
amendment designated .040 to the bill; the amendment was not 
adopted by a roll call vote of 17 to 23, as follows:


    Congresswoman Grace Napolitano (D-CA) offered an amendment 
designated .002 to the bill; the amendment was not adopted by a 
roll call vote of 18 to 23, as follows:


    No further amendments were offered and the bill, as 
amended, was then adopted and ordered favorably reported to the 
House of Representatives by a bipartisan roll call vote of 23 
to 19, as follows:


            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(2)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
403 of the Congressional Budget Act of 1974, the Committee has 
received the following cost estimate for this bill from the 
Director of the Congressional Budget Office:

H.R. 687--Southeast Arizona Land Exchange and Conservation Act of 2013

    H.R. 687 would authorize a land exchange in Arizona between 
the federal government and a mining company. Based on 
information provided by the affected agencies, CBO estimates 
that implementing the bill would cost less than $500,000 
annually, assuming the availability of appropriated funds. 
Those costs would include preparing management plans and 
administering private lands received in exchange for federal 
land.
    Enacting the legislation could increase offsetting 
receipts, which are treated as reductions in direct spending; 
however, CBO has insufficient information to estimate whether 
any receipts would be collected under the bill. Because 
enacting the bill could affect direct spending, pay-as-you-go 
procedures apply.
    Under H.R. 687, the Forest Service would convey about 2,400 
acres of land in southeast Arizona to Resolution Copper Mining 
LLC in exchange for about 5,400 acres of company-owned land. Of 
the company land, about 1,200 acres would become part of the 
National Forest System, and about 4,200 acres would be 
administered as conservation areas by the Bureau of Land 
Management.
    If the property sought by Resolution Copper is appraised at 
more than the appraised value of the property that the company 
offers for exchange, the company could donate additional land 
or make a cash payment to the United States to make the final 
exchange of equal value. If the company's property is appraised 
for more than the federal acreage, the difference in the value 
would be considered a donation to the federal government. Any 
cash payment received by the Forest Service would be deposited 
in the U.S. Treasury as an offsetting receipt. In addition, 
after completion of the exchange, Resolution Copper would have 
to pay the federal government a portion of any future income 
earned on the former federal property if the company determines 
that the actual cumulative production of minerals located on 
that property exceeds the value of the estimated production 
used in the original appraisal process.
    The bill's effect on offsetting receipts would depend on 
the outcome of formal appraisals of the federal and private 
properties that would be conducted after enactment. Those 
appraisals would determine the relative values of the 
properties affected by the exchange, including the value of 
mineral deposits that underlie the federal land. If the value 
of the federal land were to exceed the value of the company 
land, Resolution Copper could pay the government a lump sum 
equal to the difference in property values in the year or two 
following enactment. That payment might be significant; 
however, because there are no publicly available estimates 
regarding the quantity of copper underlying the federal land, 
CBO has no basis for estimating the value of that land relative 
to the value of the company land. Therefore, we cannot 
determine whether the company would make a payment or estimate 
the size of any such payment.
    In addition, if the company extracts more mineral resources 
than assumed in the original appraisal, Resolution Copper would 
make annual payments to the federal government. Such payments 
might be significant; however, based on information provided by 
Resolution Copper, CBO expects that those lands would not be 
mined within 10 years of the enactment of H.R. 687. Therefore, 
no payments would be made over the next 10 years.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Jeff LaFave. The 
estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.
    2. Section 308(a) of Congressional Budget Act. As required 
by clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives and section 308(a) of the Congressional Budget 
Act of 1974, this bill does not contain any new budget 
authority, spending authority, credit authority, or an increase 
or decrease in revenues or tax expenditures. Based on 
information provided by the affected agencies, CBO estimates 
that implementing the bill would cost less than $500,000 
annually, assuming the availability of appropriated funds.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to facilitate the efficient 
extraction of mineral resources in southeast Arizona by 
authorizing and directing an exchange of Federal and non-
Federal land.

                           EARMARK STATEMENT

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                       COMPLIANCE WITH H. RES. 5

    Directed Rule Making. The Chairman does not believe that 
this bill directs any executive branch official to conduct any 
specific rule-making proceedings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                            DISSENTING VIEWS

    H.R. 687 will rob Native People of their heritage, local 
people of their water and the American people of valuable 
natural resources, all to benefit two large, foreign-owned 
mining corporations. This legislation is an abdication of our 
responsibilities as stewards of the public lands and the public 
trust and it should be rejected by the House.
    Resolution Copper Mining, LLC (Resolution Copper) is a 
subsidiary of Rio Tinto and BHP-Billiton. Resolution Copper 
owns land and holds mining claims on the Tonto National Forest 
in Southeastern Arizona. The company believes the area is home 
to a significant copper deposit and is seeking to develop a 
lucrative copper mining operation. However, approximately 760 
acres of national forest land in the area was withdrawn from 
mining by President Eisenhower in 1955. Resolution Copper is 
seeking H.R. 687 to require the federal government to exchange 
the withdrawn forest land for land owned by the Company so that 
the mining operation can proceed.
    Evaluating the merits of land exchanges is difficult under 
the best of circumstances; H.R. 687 would require this land 
exchange to proceed under the worst of circumstances. By 
waiving timely Tribal consultation, standard appraisal 
requirements and meaningful compliance with the National 
Environmental Policy Act (NEPA) (42 U.S.C. Sec. 4321 et seq.), 
H.R. 687 would require that the exchange go forward without 
mitigation or even analysis of its potentially devastating 
impacts.
    Testimony received by the Committee indicates that the 
mining operation planned by Resolution Copper would require 
40,000 acre-feet of water per year; roughly the amount used by 
the city of Tempe (population 160,000). The company has been 
less than transparent regarding where they would find this 
massive quantity of water in Southeastern Arizona. Past 
practice for mining companies has been to simply sink deeper 
wells and take the water they need, leaving their neighbors 
literally high and dry.
    Securing a fair return to taxpayers on this exchange is 
difficult given that the most valuable aspect of the exchange 
by far is the copper, the value of which is speculative but 
estimated to be worth billions of dollars. Rather than 
clarifying the valuation issue, H.R. 687 further muddies the 
waters by requiring highly unusual appraisal procedures which 
fail to guarantee that Resolution Copper will pay a fair price 
for the copper it stands to receive from the American people.
    The principal justification for this land exchange is the 
creation of jobs in Southeastern Arizona. These claims are 
highly suspect, however, given that Rio Tinto and BHP-Billiton 
are pioneers in the automation and remote control of mining 
operations.
    Finally, H.R. 687 trades away several sites that are sacred 
to Native People. The hearing record includes desperate pleas 
from the San Carlos Apache Tribe, White Mountain Apache Tribe, 
Yavapai-Apache Nation, Tonto Apache Tribe, Fort McDowell 
Yavapai Nation, Hualapai Tribe, Jicarilla Apache Nation, 
Mescalero Apache Tribe, the Pueblo of Zuni and other Native 
Nations to respect their religious and cultural traditions.
    Instead, the bill waives compliance with NEPA, the Native 
American Graves Protection Act, and all other statutes that 
might give Tribes a voice. The final insult comes when the bill 
requires consultation with Native People--after the land 
exchange has occurred.
    The majority rejected an amendment from Representative 
DeFazio (D-OR) that would have imposed a royalty rate of 12.5 
percent on minerals produced from the conveyed federal land, 
required Resolution Copper to annually report to the Secretary 
of the Interior the amount of minerals produced from the 
conveyed federal land, and required that the funds received 
from the royalty payments be used for abandoned hardrock mine 
lands reclamation.
    The Majority also rejected an amendment from Water and 
Power Subcommittee Ranking Member Napolitano (D-CA) that would 
have prevented adverse impacts on water quantity and quality in 
the development of this project.
    The Majority rejected three amendments from Public Lands 
and Environmental Regulation Subcommittee Ranking Member 
Grijalva (D-AZ). The first would have excluded any Native 
American sacred or cultural sites, including Apache Leap, from 
the federal land conveyance.
    The second Grijalva amendment would have required the 
mining plan for the conveyed federal land to support the local 
workforce, while the third would have made the conveyance of 
federal land contingent on the Secretary of the Interior 
completing an environmental review document regarding the land 
exchange, proposed mine, and mine plan of operations in 
accordance with NEPA.
    In one fell swoop, H.R. 687 would gather up hundreds of 
acres of sacred land, thousands of acre-feet of precious water, 
and millions of tons of valuable copper, and hand it all over 
to Resolution Copper and its owners, Rio Tinto and BHP-
Billiton. Such a move would be a disservice to local residents, 
Tribes and taxpayers. The House should reject this 
irresponsible and unwise proposal.

                                   Peter DeFazio.
                                   Grace F. Napolitano.
                                   Rush Holt.
                                   Raul M. Grijalva.

                                  
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