[Senate Report 113-94]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 172
113th Congress                                                   Report
                                 SENATE
 1st Session                                                     113-94

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           LYON COUNTY ECONOMIC DEVELOPMENT AND CONSERVATION

                                _______
                                

               September 10, 2013.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 159]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 159) to designate the Wovoka Wilderness 
and provide for certain land conveyances in Lyon County, 
Nevada, and for other purposes, having considered the same, 
reports favorably thereon with amendments and recommends that 
the bill, as amended, do pass.
    The amendments are as follows:
    1. On page 2, line 19, after ``valid existing rights'' 
insert ``and to such terms and conditions as the Secretary 
determines to be necessary''.
    2. On page 9, strike lines 8 through 17 and insert the 
following:

          (5) Overflights.--
                  (A) Military overflights.--Nothing in this 
                Act restricts or precludes--
                          (i) low-level overflights of military 
                        aircraft over the Wilderness, including 
                        military overflights that can been seen 
                        or heard within the Wilderness;
                          (ii) flight testing and evaluation; 
                        or
                          (iii) the designation or creation of 
                        new units of special airspace, or the 
                        establishment of military flight 
                        training routes, over the Wilderness.
                  (B) Existing airstrips.--Nothing in this Act 
                restricts or precludes low-level overflights by 
                aircraft originating from airstrips in 
                existence on the date of enactment of this Act 
                that are located within 5 miles of the proposed 
                boundary of the Wilderness.

                                PURPOSE

    The purposes of S. 159 are to direct the Secretary of the 
Interior to convey for fair market value approximately 11,500 
acres of land administered by the Bureau of Land Management to 
the City of Yerington, Nevada, and to designate approximately 
48,981 acres of land in the Humboldt-Toiyabe National Forest as 
wilderness, to be administered by the Secretary of Agriculture.

                          BACKGROUND AND NEED

    In November, 2012, the Nevada Copper Corporation began 
exploratory operations on its Pumpkin Hollow mine site, located 
near the town of Yerington, in Lyon County, Nevada. The 
proposed mine site is located on private and public lands 
administered by the Bureau of Land Management. Yerington plans 
to annex the mine site and adjacent lands and the conveyance of 
the federal land authorized by this bill will help facilitate 
the development of the mine and provide Yerington with 
additional tax revenue.
    For over 4 years, Yerington and Lyon County have been 
working with private business partners to develop a sustainable 
development plan that would enable all parties to benefit from 
the use of private land adjacent to Yerington for potential 
commercial and industrial development, mining activities, 
recreation opportunities, and the expansion of community and 
cultural events. The plan requires the conveyance of certain 
federal land administered by the Bureau of Land Management 
(BLM) to the City for fair market value.
    The federal land is adjacent to the City and would be used 
to enhance recreational, cultural, commercial, and industrial 
development opportunities. The commercial and industrial 
development of the federal land will enable the community to 
benefit from the transportation, power, and water 
infrastructure that would be put in place with the concurrent 
development of commercial and industrial operations.
    The approximately 49,000-acre proposed Wovoka Wilderness 
Area is the largest remaining tract of wild country in Lyon 
County, Nevada, and encompasses the southern portion of the 
Pine Grove Hills in western Nevada. The core of the proposed 
wilderness is the Forest Service's South Pine Grove Hills 
Inventoried Roadless Area. The Forest Service categorized this 
roadless area as having a high capacity for wilderness during 
its Forest Plan Revision initial assessment in 2006.
    The Wovoka Wilderness Area comprises at least 13 miles of 
the East Walker River. It is also home to a diversity of 
landscapes and experiences, from world-class fly fishing to 
rugged, multi-colored canyons, pinon-juniper forests, seasonal 
lakes, critical habitat for the bi-state sage-grouse, rich 
archeological resources, and wonderful views of the Sweetwater 
Mountains and Mount Grant.
    The wilderness area's name honors Wovoka, the Paiute 
spiritual leader and father of the Ghost Dance, who prophesized 
a message of hope to Native Americans in the 1890s. Born in the 
region, Wovoka worked and found inspiration in these hills.
    Elevations range from 5,200 feet along the East Walker 
River to over 9,400 feet at the summit of Bald Mountain.
    The proposed Wovoka Wilderness contains critical habitat 
for the bi-state sage grouse population including summer, 
winter, and nesting habitat.

                          LEGISLATIVE HISTORY

    S. 159 was introduced by Senators Heller and Reid on 
January 28, 2013. A hearing was held on the bill by the 
Subcommittee on Public Lands, Forests and Mining on April 25, 
2013. At a business meeting on June 18, 2013, the bill was 
reported favorably with amendments. An identical bill, H.R. 
696, was introduced in the House of Representatives by 
Representative Horsford.
    In the 112th Congress a similar bill, S. 3701, was 
introduced by Senators Heller and Reid.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on June 18, 2013 by a voice vote of a 
quorum present, recommends that the Senate pass S. 159, if 
amended as described herein.

                          COMMITTEE AMENDMENTS

    During its consideration of S. 159, the Committee adopted 
two amendments. The first amendment requires that the land 
conveyance be subject to such terms and conditions as the 
Secretary deems necessary. The second amendment includes 
standard language relating to military overflights, and further 
specifies that nothing in this Act precludes low-level 
overflights from airstrips within 5 miles of the wilderness 
boundary.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 contains the short title, the ``Lyon County 
Economic Development and Conservation Act'', and the table of 
contents.
    Section 2(a) defines key terms in the bill.
    Subsection (b)(1) directs the Secretary of the Interior to 
convey to the City of Yerington, Nevada, all right, title, and 
interest of the United States in and to land identified on the 
map entitled ``Yerington Land Conveyance'' dated December 19, 
2012.
    Paragraph (2) directs the Secretary to conduct an appraisal 
to determine the fair market value of the land to be conveyed 
in accordance with the Federal Land Policy and Management Act 
of 1976 (43 U.S.C. 1701 et seq.), the Uniform Appraisal 
Standards for Federal Land Acquisition, and the Uniform 
Standards of Professional Appraisal Practice.
    Paragraph (3) requires the map to be on file and available 
for public inspection at the Bureau of Land Management.
    Paragraph (4) clarifies that development and conduct of 
activities of the Federal land conveyed to the city shall be 
subject to all Federal laws and regulations.
    Paragraph (5) requires the City of Yerington to pay an 
amount equal to the appraised value for the conveyed Federal 
lands, and all costs related to the conveyance. These costs 
include surveys, appraisals, and other administrative costs 
associated with the conveyance.
    Section 3(a) provides Congressional findings.
    Subsection (b) provides definitions for the section.
    Subsection (c)(1) designates the Federal land depicted on 
the map as the ``Wovoka Wilderness''.
    Paragraph (2) requires boundaries of the Wilderness that 
are bordered by a road must be set 150 feet from the centerline 
of the road.
    Paragraph (3) directs the Secretary to prepare a map and 
legal description of the Wilderness.
    Paragraph (4) clarifies that the Wilderness is withdrawn 
from: (A) all forms of entry, appropriation, or disposal under 
the public land laws; (B) location, entry, and patent under the 
mining laws; and (C) disposition under all laws relating to 
mineral and geothermal leasing or mineral materials.
    Subsection (d)(1) establishes that the Wilderness shall be 
administered by the Secretary in accordance with the Wilderness 
Act (16 U.S.C. 1131 et seq.).
    Paragraph (2) provides that any grazing activities 
established before the date of enactment of the Act, shall be 
allowed to continue, subject to reasonable restrictions, in 
accordance with section 4(d)(4) of the Wilderness Act (16 
U.S.C. 1133(d)(4)), and (B) the guidelines set forth in 
Appendix A of the report of the Committee on Interior and 
Insular Affairs of the House of Representatives accompanying 
H.R. 2570 of the 101st Congress (H. Rept. 101-405).
    Paragraph (3) incorporates any land or interest in land 
that is acquired within the boundary of the Wilderness into the 
Wilderness.
    Paragraph (4) clarifies that Congress does not intend to 
create a protective buffer zone around the Wilderness, and non-
wilderness activities outside the Wilderness boundary will be 
allowed to continue.
    Paragraph (5) clarifies low-level overflights of military 
aircraft, flight testing and evaluation, the designation or 
creation of special airspace or military flight training 
routes, and low-level overflights by aircraft and originating 
from airstrips in existence on the date of enactment of the Act 
that are located within 5 miles of the proposed boundary will 
not be restricted over the Wilderness.
    Paragraph (6) authorizes the Secretary, in accordance with 
4(d)(1) of the Wilderness Act (16 U.S.C. 1133(d)(1)), to take 
any measures necessary to control fire, insects, and diseases.
    Paragraph (7) clarifies that nothing in paragraph (6) 
constitutes an express or implied reservation by the United 
States of any water or water rights within the Wilderness, or 
infringes on State water rights. Subparagraph (E) prohibits the 
United States from funding, assisting, authorizing, or issuing 
a license or permit for the development of any new water 
resource facility within the Wilderness. It also provides an 
exception to this restriction for the Bald Mountain grazing 
allotment for the purpose of livestock watering if an 
application is filed within 10 years after the enactment of 
this Act.
    Paragraph (8) clarifies that nothing in this section 
changes State jurisdiction with respect to fish and wildlife 
management including regulation of hunting, fishing, and 
trapping. The Secretary may conduct any management activities 
in the Wilderness that are necessary to maintain or restore 
fish and wildlife populations and their habitats.
    Subsection (f) authorizes the Secretary to construct 
facilities for water development projects to enhance wildlife 
populations in the Wilderness.
    Section 4 defines the withdrawal area and withdraws it from 
the public land laws, mining laws, and mineral leasing and 
geothermal laws.
    Section 5 clarifies that nothing in this act alters or 
diminishes the treaty rights of any Indian Tribe.

                   COST AND BUDGETARY CONSIDERATIONS

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

S. 159--Lyon County Economic Development and Conservation Act

    S. 159 would require the Secretary of the Interior to sell, 
at fair market value, roughly 10,000 acres of federal lands to 
the city of Yerington, Nevada. The bill also would designate 
about 47,500 acres in Nevada as wilderness. Based on 
information provided by the Bureau of Land Management (BLM) and 
the Forest Service, CBO estimates that implementing the 
legislation would have no significant impact on discretionary 
spending. Enacting S. 159 would increase offsetting receipts, 
which are treated as reductions in direct spending; therefore, 
pay-as-you-go procedures apply. Enacting the bill would not 
affect revenues.
    Under the bill, the city of Yerington would be required to 
pay fair market value for the federal lands it acquires. Based 
on information provided by BLM regarding the appraised value of 
the affected lands, CBO estimates that proceeds from the sale 
would total $2 million in 2014. Those amounts would be 
deposited in the U.S. Treasury as offsetting receipts. Because 
the bill would require the city to pay any administrative costs 
associated with the sale, CBO estimates that completing the 
land sale would not affect discretionary spending.
    S. 159 also would add 47,500 acres to the National 
Wilderness Preservation System and withdraw those lands from 
programs to develop mineral and geothermal resources. Because 
the affected lands are already protected for conservation and 
wilderness values, CBO estimates that implementing the bill 
would have no significant impact on the cost of administering 
those lands. We also expect that any costs to modify existing 
maps and other materials would be minimal. Finally, because the 
affected lands currently produce no income (and are not 
expected to do so in the future), we estimate that enacting 
this provision would not affect offsetting receipts.
    S. 159 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs in 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.

                      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. 159.
    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. 159, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    S. 159, as reported, does not contain any congressionally 
directed spending items, limited tax benefits, or limited 
tariff benefits as defined in rule XLIV of the Standing Rules 
of the Senate.

                        EXECUTIVE COMMUNICATIONS

    The testimony provided by the National Park Service and the 
Forest Service at the April 23, 2013, Subcommittee on Public 
Lands, Forests, and Mining hearing on S. 159 follows:

  Statement of Jamie Connell, Acting Deputy Director, Bureau of Land 
                 Management, Department of the Interior

    Thank you for the opportunity to testify today on S. 159, 
the Lyon County Economic Development and Conservation Act, 
which presents economic development opportunities for the 
western Nevada city of Yerington. This bill would allow the 
city to purchase, at fair market value, over 10,000 acres of 
surface land and the subsurface mineral estate managed by the 
Bureau of Land Management (BLM) that surround a copper mine 
development located on approximately 1,500 acres of private 
land. The BLM has a few concerns with the legislation and 
proposes some modifications and amendments, including 
provisions related to timing of the conveyance that would 
ensure that the Federal government receives full value for the 
lands and associated mineral interests. In addition, Sections 3 
and 4 of S. 159 designate an addition to the National 
Wilderness Preservation System--the Wovoka Wilderness Area--on 
National Forest System lands managed by the U.S. Forest 
Service. The Department of the Interior defers to the U.S. 
Department of Agriculture on provisions that apply to lands and 
programs under its management.


                               background


    Yerington is a small community located southeast of Carson 
City in Lyon County, Nevada. The BLM manages approximately 
570,000 acres of public land in the county. Historically, 
mining and agriculture have been significant contributors to 
the local economy, but today, Yerington has an unemployment 
rate that is higher than the national average.
    In February 2012, Nevada Copper Corp. broke ground on an 
exploratory operation at its Pumpkin Hollow mine site on 
private lands that are at the center of the proposed conveyance 
area. The city plans to annex the mine as well as the 
conveyance area, which will increase the tax base of both the 
city and Lyon County. Nevada Copper will fund the land 
acquisition costs for the city as well as land surveys, 
appraisals and cultural and natural resource evaluations 
required for the conveyance. In return, the city will either 
lease or sell certain lands that Nevada Copper requires for the 
development of its mine complex. Nevada Copper will also work 
with the city to extend water and sewer services beyond those 
needed for the Pumpkin Hollow mine. The city's plans envision 
an area where transportation, power, and water infrastructure 
installed for the mine will benefit other industrial and 
commercial users and facilitate the development of cultural and 
recreational areas for the benefit of Yerington.


                                 s. 159


    S. 159 (Section 2) requires the Secretary of the Interior 
to convey to the city of Yerington for fair market value over 
10,000 acres of BLM-managed land and the underlying mineral 
estate--if the city agrees to the conveyance. Under the bill, 
the Secretary would establish the value of the land and the 
mineral estate in accordance with the Federal Land Policy and 
Management Act and uniform appraisal standards. The city will 
pay the fair market value for the property and all costs 
related to the conveyance, including surveys, appraisals, and 
other administrative expenses.
    The bill's 180-day time period for conveyance does not 
allow sufficient time to complete reviews and consultation with 
parties under the National Environmental Policy Act and the 
National Historic Preservation Act or conduct appraisals to 
establish the fair market value of the surface and mineral 
estates. To its credit, the city has moved ahead and already 
sought and been granted permission to perform cultural survey 
work on the area. The preliminary findings of this survey 
indicate that there are sites in the conveyance area that may 
be eligible for inclusion in the National Register of Historic 
Properties. Resolution of adverse effects, or an agreement for 
the resolution or preservation, should be addressed before the 
sites pass from Federal ownership. The BLM recommends a one-
year time period to complete all the necessary work associated 
with the conveyance.
    The area's longstanding relationship to mining poses two 
other challenges not taken into account in the bill. Although 
originally there were a number of mining claims held by parties 
other than Nevada Copper, the BLM understands Nevada Copper has 
purchased many of these mining claims. According to the BLM's 
mining claim database, there are 11 other outstanding mining 
claims. We understand that Nevada Copper is making arrangements 
that may resolve this issue. The BLM generally does not convey 
lands with mining claims. If left unresolved, S. 159 leaves 
open the question of who would administer these other mining 
claims, which by default leaves the responsibility to the BLM 
to conduct validity exams and resolve other issues such as site 
remediation. According to the city, one of the stated goals of 
this bill is to ``expedite near term and long term development 
of mining facilities.'' If the BLM manages these claims but not 
the surrounding surface rights, conflicts may occur that would 
hobble this goal of expedited development.
    The area's mining legacy poses a second and potentially 
dangerous situation. The Nevada Division of Minerals has 
identified abandoned mine features on the public lands to be 
conveyed to the city, a few of which may present potential 
hazards to the public. We would like to work with the 
proponents of this bill to resolve this issue. For example, the 
United States government should be indemnified from any future 
liabilities arising from any hazardous features. In addition, 
there are a few technical changes the BLM suggests for the bill 
on matters such as the conveyance parcel boundary.


                               conclusion


    Thank you again for the opportunity to testify on S. 159. 
This legislation is important to the people of this area, and 
the BLM looks forward to working with the sponsor and the 
committee. I would be glad to answer your questions.
                              ----------                              


  Statement of James M. Pena, Associate Deputy Chief, National Forest 
                   System, Department of Agriculture

    Mr. Chairman, Ranking Member Barrasso, and members of the 
Committee, thank you for inviting me here today to testify 
regarding S. 159, the Lyon County Economic Development and 
Conservation Act.
    Section 2 of the bill pertains to public lands managed by 
the Bureau of Land Management. This testimony will address 
Sections 3 and 4 in my comments as they pertain to the 
management of the Toiyabe National Forest.
    Section 3 of S. 159 would add the Wovoka Wilderness to the 
National Wilderness Preservation System. These 47,449 acres are 
the largest remaining tract of wild country in Lyon County, 
Nevada, encompassing the southern portion of the Pine Grove 
Hills south of Yerington, Nevada. The core of this proposed 
wilderness is the Forest Service South Pine Grove Hill 
Inventoried Roadless Area. The Forest Service categorized this 
roadless area as having a high capacity for wilderness during 
its Forest Plan Revision wilderness evaluation in 2006.
    Designation of the Wovoka Wilderness would preserve sage-
grouse habitat, protect prehistoric cultural resources, ensure 
the availability of primitive recreational resources, and 
maintain high air and water quality in the area, while ensuring 
the conservation of ecologically diverse and important 
habitats. Further, the bill encourages the collaboration 
between the Department and the Lyon County Commission on local 
wildfire and forest management planning. The Department 
supports these worthy goals and would support S. 159, if the 
bill is amended to address the following concerns.
    S. 159 would provide for several standard provisions for 
the management of wilderness area within the National 
Wilderness Preservation System. However, it introduces several 
new provisions that raise concerns.
    Section 3(c)(2) would require that the wilderness boundary 
be placed 150 feet from the centerline of adjacent roads when 
they border the boundary. While this is generally a good 
policy, we are concerned that the term ``roads'' is open to 
interpretation. We would prefer the use of the term ``forest 
roads'' or ``public roads'' which reflects those roads 
designated by the Forest Service during our travel planning 
process or by other jurisdictions. This will avoid any 
confusion about the intent of the provision during creation of 
the legal description.
    The Department objects to Section 3(d)(7), relating to 
water rights. Specifically, Section 3(d)(7)(E)(ii)(I) would 
prohibit the Forest Service from developing for its own 
purposes any water resource facility other than a wildlife 
guzzler. Additionally, Section 3(d)(7)(E)(ii)(II) would require 
the Forest Service to approve applications for the development 
of water resource facilities for livestock purposes within the 
Bald Mountain grazing allotment submitted by Bald Mountain 
grazing allotment permittees within 10 years of designation of 
the wilderness. The President's discretion under the Wilderness 
Act to review and approve any potential water development 
structure or facility that is deemed in the national interest 
should not be limited by these provisions.
    Section 3(e), relating to wildlife management, also 
presents concerns. Section 3(e)(3) would give the State 
authority to use helicopters and other aircraft for specified 
wildlife management purposes without specific permission from 
the Forest Service. Section 3(e)(4) would constrict the Forest 
Service's authority to restrict hunting or fishing, and section 
3(e)(5) would perpetuate in perpetuity the application of a 
1984 Memorandum of Understanding between the Forest Service and 
the State to State wildlife management activities in this 
wilderness area.
    The Department objects to Section 3(f) Wildlife Water 
Development Projects, which would require the Secretary to 
authorize structures and facilities for wildlife water 
development where the Secretary determines that the development 
will enhance wilderness values by providing more naturally 
distributed wildlife populations and the visual impacts of the 
structures and facilities can be visually minimized. This 
language, while it provides some flexibility, still removes 
Secretarial discretion to consider the impact of wildlife water 
developments on other wilderness values. The Department already 
has the discretion to consider the placement of wildlife water 
developments consistent with the Wilderness Act and House 
Report 101-405. This section is an unnecessary abridgement of 
the Secretary's discretion.
    Section 4 of the bill would withdraw an area of National 
Forest from (1) entry, appropriation, or disposal under public 
land laws, (2) location, entry and patent under the mining 
laws, and (3) operation of the mineral laws, geothermal leasing 
laws and mineral materials laws. The use of motorized and 
mechanical vehicles within the withdrawn area would be limited.
    The Department would like to work with the committee and 
the sponsor of the bill to ensure all valid existing rights may 
continue in the future.
    This concludes my testimony and I would be happy 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, the Committee notes that no 
changes in existing law are made by S. 159, as ordered 
reported.

                                  
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