[Senate Report 118-132]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 276
                                                       
                                                       
118th Congress }                                              {    Report
                                 SENATE
 1st Session   }                                              {   118-132

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            NORTH DAKOTA TRUST LANDS COMPLETION ACT OF 2023

                                _______
                                

               December 12, 2023.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1088]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1088) to authorize the relinquishment and 
in lieu selection of land and minerals in the State of North 
Dakota, to restore land and minerals to Indian Tribes within 
the State of North Dakota, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment, in the nature of a substitute, and recommends that 
the bill, as amended, do pass.

                               AMENDMENT

    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``North Dakota Trust Lands Completion 
Act of 2023''.

SEC. 2. DEFINITIONS.

    In this Act:
          (1) North dakota enabling act.--The term ``North Dakota 
        Enabling Act'' means the Act of February 22, 1889 (25 Stat. 
        676, chapter 180).
          (2) Reservation.--The term ``reservation'' means any Indian 
        reservation located wholly or partially within the State of 
        North Dakota and recognized under United States treaty, 
        Executive order, or Act of Congress.
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (4) State.--The term ``State'' means the State of North 
        Dakota, acting through the North Dakota Board of University and 
        School Lands and its agent, the Department of Trust Lands.
          (5) State land grant parcel.--The term ``State land grant 
        parcel'' means--
                  (A) a parcel of land granted to the State of North 
                Dakota by Congress--
                          (i) on statehood; or
                          (ii) through a grant pursuant to the North 
                        Dakota Enabling Act;
                  (B) a section of land numbered 16 or 36 granted to 
                the State of North Dakota by Congress for school 
                purposes;
                  (C) a parcel of land selected by the State of North 
                Dakota as indemnity for any section of land numbered 16 
                or 36; and
                  (D) a parcel of land other than a parcel of land 
                described in subparagraph (A), (B), or (C) obtained by 
                the State after statehood.
          (6) Unappropriated federal land.--
                  (A) In general.--The term ``unappropriated Federal 
                land'' means public land administered by the Bureau of 
                Land Management located within the State of North 
                Dakota, including public land that is mineral in 
                character.
                  (B) Exclusions.--The term ``unappropriated Federal 
                land'' does not include--
                          (i) land (including an interest in land) 
                        acquired by the Bureau of Land Management;
                          (ii) any area of critical environmental 
                        concern established pursuant to section 
                        202(c)(3) of the Federal Land Policy and 
                        Management Act of 1976 (43 U.S.C. 1712(c)(3)); 
                        or
                          (iii) land that is--
                                  (I) withdrawn from--
                                          (aa) entry, appropriation, or 
                                        disposal under the public land 
                                        laws;
                                          (bb) location, entry, and 
                                        patent under the mining laws; 
                                        or
                                          (cc) disposition under all 
                                        laws pertaining to mineral and 
                                        geothermal leasing or mineral 
                                        materials;
                                  (II) located within a component of 
                                the National Landscape Conservation 
                                System;
                                  (III) designated as a Research 
                                Natural Area;
                                  (IV) located within any reservation;
                                  (V) located within--
                                          (aa) T. 147 N., R. 95 W.;
                                          (bb) T. 148 N., R. 95 W.;
                                          (cc) T. 148 N., R. 96 W.; or
                                          (dd) T. 149 N., R. 95 W.;
                                  (VI) located within a United States 
                                military reservation; or
                                  (VII) designated by Congress or the 
                                President for conservation purposes.

SEC. 3. RELINQUISHMENT AND SELECTION; CONVEYANCE.

    (a) Relinquishment and Selection.--
          (1) In general.--Subject to valid existing rights, if the 
        State elects to relinquish all right, title, and interest of 
        the State in and to a State land grant parcel located wholly or 
        partially within the boundaries of any reservation, the 
        Secretary shall authorize the State to select in accordance 
        with this Act 1 or more parcels of unappropriated Federal land 
        of substantially equivalent value.
          (2) Approval.--Not later than 180 days after the date on 
        which the State makes a selection under paragraph (1), the 
        Secretary shall approve or reject, in whole or in part, the 
        selection.
          (3) Review.--Nothing in this subsection precludes the 
        Secretary from conducting an environmental review of any parcel 
        proposed for relinquishment under paragraph (1) if the 
        Secretary determines that an environmental review is 
        appropriate.
    (b) Conveyance.--
          (1) Conveyance by secretary.--
                  (A) In general.--Not later than 60 days after the 
                date on which the Secretary approves a State selection 
                of unappropriated Federal land under subsection (a)(2), 
                the Secretary shall initiate the actions necessary to 
                convey to the State the unappropriated Federal land.
                  (B) Requirements.--Conveyance of unappropriated 
                Federal land by the Secretary under this Act--
                          (i) shall be by patent or deed in a form 
                        acceptable to the State and the Secretary; and
                          (ii) shall not be considered a sale, 
                        exchange, or conveyance for purposes of section 
                        203, 205, 206, or 209 of the Federal Land 
                        Policy and Management Act of 1976 (43 U.S.C. 
                        1713, 1715, 1716, 1719).
          (2) Relinquishment and conveyance by state.--
                  (A) In general.--As consideration for the conveyance 
                of unappropriated Federal land under paragraph (1), on 
                the date on which the unappropriated Federal land is 
                conveyed to the State, the State shall concurrently 
                relinquish and convey to the Secretary all right, 
                title, and interest of the State in and to the State 
                land grant parcel identified for relinquishment under 
                subsection (a)(1).
                  (B) Title.--The State shall convey to the Secretary 
                title, free of any financial claims, liabilities, or 
                other financial encumbrances, to all parcels 
                relinquished under subparagraph (A).
                  (C) Limitation.--Relinquishment and conveyance by the 
                State of a State land grant parcel under this Act shall 
                not be considered an exchange or acquisition for 
                purposes of section 205 or 206 of the Federal Land 
                Policy and Management Act of 1976 (43 U.S.C. 1715, 
                1716).
    (c) Succession to Rights and Obligations.--Each party to which land 
is conveyed under this Act shall, to the fullest extent allowable under 
Federal and State law, succeed to the rights and obligations of the 
conveying party with respect to any lease, right-of-way, permit, or 
other valid existing right to which the land is subject.
    (d) Management After Relinquishment.--
          (1) Reservation.--If a State land grant parcel relinquished 
        by the State and conveyed to the Secretary under this Act is 
        located wholly or partially within the boundaries of any 
        reservation, on request of the applicable Indian Tribe, the 
        portion of the State land grant parcel located within the 
        boundaries of the reservation shall be--
                  (A) taken into trust by the Secretary on behalf of, 
                and for the benefit of, the Indian Tribe on the date of 
                the conveyance; and
                  (B) considered to be a part of the reservation of the 
                Indian Tribe.
          (2) Consultation required.--Prior to the conveyance of a 
        State land grant parcel located wholly or partially within the 
        boundaries of any reservation, the State and the Secretary 
        shall consult with affected Indian Tribes, including the Indian 
        Tribe the land of which is subject to conveyance in accordance 
        with Executive Order 13175 (25 U.S.C. 5301 note; relating to 
        consultation and coordination with Indian tribal governments) 
        and other applicable laws.
    (e) Withdrawal.--
          (1) In general.--Subject to valid rights in existence on the 
        date of enactment of this Act, all unappropriated Federal land 
        selected by the State for conveyance under this Act, effective 
        beginning on the date on which the State makes the selection 
        and ending on the date described in paragraph (2), is withdrawn 
        from all forms of--
                  (A) entry, appropriation, or disposal under the 
                public land laws;
                  (B) location, entry, and patent under the mining 
                laws; and
                  (C) disposition under all laws pertaining to mineral 
                and geothermal leasing or mineral materials.
          (2) Date described.--The date referred to in paragraph (1) is 
        the date on which, as applicable--
                  (A) the unappropriated Federal land is conveyed by 
                the Secretary to the State;
                  (B) the Secretary rejects the selection under 
                subsection (a)(2); or
                  (C) the State withdraws the selection.

SEC. 4. VALUATION.

    (a) Equal Value.--With respect to a State land grant parcel 
conveyed under this Act in consideration for a parcel of unappropriated 
Federal land selected in accordance with this Act--
          (1) the overall value of the State land grant parcel and the 
        overall value of the parcel of unappropriated Federal land 
        shall be substantially equal; or
          (2) subject to subsection (c), if the overall value of the 
        parcels is not equal, the party conveying the parcel of lesser 
        value shall--
                  (A) equalize the value by the payment of funds to the 
                other party; or
                  (B) enter the imbalance in value on a ledger account 
                in accordance with subsection (e).
    (b) Appraisal Required.--
          (1) In general.--Except as provided in subsection (d), the 
        value of the unappropriated Federal land selected in accordance 
        with this Act and the value of a State land grant parcel 
        conveyed under this Act shall be determined by appraisals 
        conducted by 1 or more independent appraisers selected jointly 
        by the Secretary and the State.
          (2) Requirements.--An appraisal under paragraph (1) shall be 
        completed in accordance with--
                  (A) the Uniform Appraisal Standards for Federal Land 
                Acquisitions; or
                  (B) subject to subsection (d)(1), the Uniform 
                Standards for Professional Appraisal Practice.
    (c) Equalization.--With respect to a conveyance to the Secretary of 
a State land grant parcel of lesser value than the parcel of 
unappropriated Federal land to be conveyed to the State under this Act, 
the total value of the equalization payment described in subsection 
(a)(2)(A) or the ledger entry described in subsection (e), as 
applicable, may not exceed 25 percent of the total value of the parcel 
of unappropriated Federal land.
    (d) Low Value Parcels.--
          (1) In general.--The Secretary, with the consent of the 
        State, may use mass appraisals, a summary appraisal, or a 
        statement of value made by a qualified appraiser carried out in 
        accordance with the Uniform Standards for Professional 
        Appraisal Practice to determine the value of a State land grant 
        parcel or a parcel of unappropriated Federal land to be 
        conveyed under this Act instead of an appraisal that complies 
        with the Uniform Appraisal Standards for Federal Land 
        Acquisitions if the State and the Secretary agree that market 
        value of the State land grant parcel or parcel of 
        unappropriated Federal land, as applicable, is--
                  (A) less than $500,000; and
                  (B) less than $500 per acre.
          (2) Division.--A State land grant parcel or a parcel of 
        unappropriated Federal land may not be artificially divided in 
        order to qualify for a summary appraisal, mass appraisal, or 
        statement of value under paragraph (1).
    (e) Ledger Accounts.--
          (1) In general.--With respect to a State land grant parcel 
        conveyed under this Act in consideration for a parcel of 
        unappropriated Federal land, if the overall value of the 
        parcels is not equal, the Secretary and the State may agree to 
        use a ledger account to make equal the value.
          (2) Imbalances.--A ledger account described in paragraph (1) 
        shall reflect imbalances in value to be reconciled in a 
        subsequent transaction.
          (3) Account balancing.--Each ledger account described in 
        paragraph (1) shall be--
                  (A) balanced not later than 3 years after the date on 
                which the ledger account is established; and
                  (B) closed not later than 5 years after the date of 
                the last conveyance of land under this Act.
          (4) Costs.--
                  (A) In general.--The Secretary or the State may 
                assume costs or other responsibilities or requirements 
                for conveying land under this Act that ordinarily are 
                borne by the other party.
                  (B) Adjustment.--If the Secretary or the State assume 
                costs or other responsibilities under subparagraph (A), 
                the Secretary or the State shall make adjustments to 
                the value of the unappropriated Federal land conveyed 
                to the State to compensate the Secretary or the State, 
                as applicable, for assuming the costs or other 
                responsibilities.
          (5) Mineral land.--If value is attributed to any parcel of 
        unappropriated Federal land that has been selected by the State 
        because of the presence of minerals under a lease entered into 
        under the Mineral Leasing Act (30 U.S.C. 181 et seq.) that is 
        in a producing or producible status, and the lease is to be 
        conveyed under this Act, the value of the parcel shall be 
        reduced by the amount that represents the likely Federal 
        revenue sharing obligation under the Mineral Leasing Act (30 
        U.S.C. 181 et seq.) with the State, but the adjustment shall 
        not be considered as reflecting a property right of the State.

SEC. 5. MISCELLANEOUS.

    (a) In General.--Land or minerals conveyed under this Act shall be 
subject to all applicable Federal, State, and Tribal law.
    (b) Protection of Indian Rights.--
          (1) Treaty rights.--Nothing in this Act modifies, limits, 
        expands, or otherwise affects any treaty-reserved right or 
        other right of any Indian Tribe recognized by any other means, 
        including treaties or agreements with the United States, 
        Executive orders, statutes, regulations, or case law.
          (2) Land or minerals held in trust.--Nothing in this Act 
        affects--
                  (A) land or minerals held in trust by the United 
                States as of the date of enactment of this Act on 
                behalf of, and for the benefit of, any Indian Tribe; or
                  (B) any individual Indian allotment.
    (c) Hazardous Materials.--
          (1) In general.--The Secretary and the State shall make 
        available for review and inspection any record relating to 
        hazardous materials on land to be conveyed under this Act.
          (2) Certification.--
                  (A) In general.--Prior to completing a conveyance of 
                unappropriated Federal land under this Act, the 
                Secretary shall complete an inspection and a hazardous 
                materials certification of the land to be conveyed.
                  (B) State land grant parcels.--Prior to completing a 
                conveyance of a State land grant parcel under this Act, 
                the State shall complete an inspection and a hazardous 
                materials certification of the land to be conveyed.
    (d) Grazing Permits.--
          (1) In general.--If land conveyed under this Act is subject 
        to a lease, permit, or contract for the grazing of domestic 
        livestock in effect on the date of the conveyance, the 
        Secretary or the State, as applicable, shall allow the grazing 
        to continue for the remainder of the term of the lease, permit, 
        or contract, subject to the related terms and conditions of the 
        user agreements, including permitted stocking rates, grazing 
        fee levels, access, and ownership and use of range 
        improvements.
          (2) Cancellation.--
                  (A) In general.--Nothing in this Act prevents the 
                Secretary or the State from canceling or modifying a 
                grazing permit, lease, or contract if the land subject 
                to the permit, lease, or contract is sold, conveyed, 
                transferred, or leased for nongrazing purposes.
                  (B) Base properties.--If land conveyed by the State 
                under this Act is used by a grazing permittee or lessee 
                to meet the base property requirements for a Federal 
                grazing permit or lease, the land shall continue to 
                qualify as a base property for the remaining term of 
                the lease or permit and the term of any renewal or 
                extension of the lease or permit.
                  (C) Range improvements.--Nothing in this Act 
                prohibits a holder of a grazing lease, permit, or 
                contract from being compensated for range improvements 
                pursuant to the terms of the lease, permit, or contract 
                under existing Federal or State laws.

SEC. 6. SAVINGS CLAUSE.

    Nothing in this Act applies to or affects litigation or disputes 
pending on the date of enactment of this Act regarding the ownership of 
any land or mineral resources located within the State of North Dakota.

                                PURPOSE

    The purpose of S. 1088 is to authorize the State of North 
Dakota to relinquish State lands and minerals located within 
Indian Reservations in the State of North Dakota and make in 
lieu selections from other unappropriated Federal lands in the 
State, and to restore the relinquished land and minerals to the 
Tribes in whose reservations the relinquished State lands are 
located.

                          BACKGROUND AND NEED

    When North Dakota became a state in 1889, the enabling 
legislation (25 Stat. 676) provided two sections of land 
(generally sections 16 and 36) in each township to be used 
``for the support of the common schools'' (often referred to as 
State trust lands).
    In cases where these sections had been sold or granted 
prior to statehood, the Federal government granted North Dakota 
other unreserved federal lands in lieu of the non-available 
sections. Today, the State manages approximately 2.6 million 
acres of subsurface mineral rights and 706,000 acres of trust 
surface lands in North Dakota. Although the Enabling Act 
prohibited the granting of State trust lands or in lieu 
selections within Indian reservations, following the passage of 
the General Allotment Act of 1887, commonly known as the Dawes 
Act (24 Stat. 388), and the subsequent allotment of the 
reservations, the State eventually acquired approximately 
130,000 acres of subsurface mineral rights and 31,000 acres of 
surface estate within Indian Reservations. The State contends 
that the inclusion of these lands within the tribal reservation 
boundaries limits the ability of the State to develop the land 
and subsequently generate revenue for public schools and other 
programs.
    S. 1088 authorizes the State to relinquish State-owned 
lands and minerals within the exterior boundaries of Indian 
Reservations in the State, and to make in lieu selections from 
other unappropriated Federal lands in the State. Any 
relinquished lands would be held in Trust for the Tribe in 
whose reservations the relinquished State lands are located.

                          LEGISLATIVE HISTORY

    S. 1088 was introduced by Senators Hoeven and Cramer on 
March 30, 2023. The Subcommittee on Public Lands, Forests, and 
Mining held a hearing on S. 1088 on July 12, 2023.
    Companion legislation, H.R. 2405, was introduced by 
Representative Armstrong in the House of Representatives on 
March 30, 2023. Similar legislation, S. 3200, was introduced in 
the 117th Congress by Senators Hoeven and Cramer on November 4, 
2021.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on September 21, 2023, by a voice vote of 
a quorum present, recommends that the Senate pass S. 1088, if 
amended as described herein.

                          COMMITTEE AMENDMENT

    During its consideration of S. 1088, the committee adopted 
an amendment in the nature of a substitute. The amendment 
removes the findings section and makes clarifying changes to 
the definitions. It also makes other conforming changes to the 
bill. The amendment is explained in detail in the section-by-
section analysis below.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 provides the short title of the bill, the ``North 
Dakota Trust Lands Completion Act of 2023.''

Section 2. Definitions

    Section 2 defines key terms used in the bill.

Section 3. Relinquishment and selection; Conveyance

    Subsection (a) states that the Secretary of the Interior 
(Secretary) may authorize the State of North Dakota (State) to 
relinquish certain State land grant parcels located wholly or 
partially within the boundaries of any Indian Reservation in 
the State, and in lieu of the relinquished land select one or 
more parcels of unappropriated Federal land of substantially 
equal value, not later than 180 days on the date in which the 
State makes a selection. The subsection clarifies that nothing 
in this subsection precludes the Secretary from conducting an 
environmental review of any proposed parcel relinquishment.
    Subsection (b) requires the Secretary to initiate the 
conveyance of unappropriated Federal land selected by the State 
within 60 days after the date the Secretary approves the 
selection, by patent or deed in a form acceptable to the 
Secretary and the State. The subsection also requires the State 
to concurrently relinquish and convey title to the State land 
grant parcels, free and clear of any financial claims, 
liabilities, or other financial encumbrances.
    Subsection (c) states that each party to which land is 
conveyed under this Act shall succeed to the rights and 
obligations of the conveying party with respect to any lease, 
right-of-way, permit, or other valid existing right to which 
the land is subject.
    Subsection (d) states that, on request from the applicable 
Tribe, any parcel relinquished by the State that is located 
wholly or partially within the boundary of an Indian 
reservation, shall be taken into trust by the Secretary on 
behalf of the Tribe and be considered to be part of the 
reservation. The subsection also requires that prior to any 
land conveyance, the State and the Secretary consult with the 
affected Indian Tribe.
    Subsection (e) withdraws, subject to valid existing rights, 
all unappropriated Federal land selected by the State for 
conveyance from public land laws, mining laws, and mineral, 
material, and geothermal leasing laws.

Section 4. Valuation

    Subsection (a) requires that any State and Federal land 
parcel subject to conveyance be of substantially equal value 
and if not equal, the party conveying the less valued parcel 
equalize the value by payment and record the imbalance on a 
ledger account.
    Subsection (b) requires an appraisal of the land parcels 
subject to conveyance to be conducted by one or more 
independent appraisers selected jointly by the Secretary and 
the State, and that such appraisals shall be subject to the 
Uniform Appraisal Standards for Federal Land Acquisitions or 
the Uniform Standards for Professional Appraisal Practice.
    Subsection (c) requires that any cash equalization payments 
may not exceed 25 percent of the total value of the parcel of 
unappropriated Federal land.
    Subsection (d) authorizes the Secretary to use mass 
appraisals, a summary appraisal, or a statement of value by a 
qualified appraiser carried out in accordance with the Uniform 
Standards for Professional Appraisal Practice, rather than 
appraisal practices of Federal Land Acquisitions if the parcel 
of Federal land is less than $500,000 and less than $500 per 
acre.
    Subsection (e) authorizes the Secretary and the State, if 
land parcels are not of equal value, to agree to use a ledger 
account to equalize the overall value of land. The subsection 
also authorizes the State and the Secretary to assume costs or 
other requirements for conveying land that could be borne by 
the other party and is authorized to adjust the value of 
unappropriated Federal land parcels to properly compensate each 
party. Lastly, the subsection requires that if any parcel's 
value is selected due to the presence of minerals, that the 
value of the parcel be reduced by applicable revenue sharing 
obligations under the Mineral Leasing Act.

Section 5. Miscellaneous

    Subsection (a) clarifies that any land or minerals conveyed 
under this Act be subject to all applicable Federal, State, and 
Tribal law.
    Subsection (b) provides that nothing contained in the bill 
affects any treaty-reserved rights or other rights of any 
Indian Tribe. It also states that nothing contained in the bill 
will affect land or minerals held in trust by the United 
States, or any individual Indian allotment.
    Subsection (c) requires the Secretary and the State to make 
available any record relating to hazardous materials on land to 
be conveyed. It also requires that a hazardous materials 
inspection and certification be conducted on Federal and State 
land prior to completing any conveyance.
    Subsection (d) authorizes the continuance of any grazing 
permit or lease on conveyed land for the remainder of its term. 
The subsection clarifies that nothing in this Act prevents the 
Secretary or the State from canceling or modifying a grazing 
permit if the land is conveyed.

Section 6. Saving clause

    Section 6 provides a savings clause that states that 
nothing in this Act applies to or affects litigation or 
disputes on the date of enactment regarding ownership of any 
land or mineral resources located in the State.

                   COST AND BUDGETARY CONSIDERATIONS

    The Committee has requested, but has not yet received, the 
Congressional Budget Office's estimate of the cost of S. 1088 
as ordered reported. When the Congressional Budget Office 
completes its cost estimate, it will be posted on the Internet 
at www.cbo.gov.

                      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. 1088. 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. 1088, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    S. 1088, as ordered 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 Bureau of Land Management at 
the Subcommittee on Public Lands, Forests, and Mining July 12, 
2023, hearing on S. 1088, follows:

     Statement of Thomas Heinlein Assistant Director for National 
Conservation Lands & Community Partnerships, Bureau of Land Management, 
                    U.S. Department of the Interior


            s. 1088, north dakota trust lands completion act


    S. 1088 would authorize the State of North Dakota to 
relinquish to the Secretary of the Interior certain lands and 
mineral estates that are located partially or wholly within the 
boundaries of four Tribal reservations in the state, to the 
extent such lands or mineral estates were conveyed to the state 
at statehood. The bill would apply to up to approximately 
37,000 surface acres and 186,000 total mineral acres. If the 
State elects to relinquish a parcel, the bill authorizes the 
State to select one or more parcels of BLM-managed public land 
or mineral estate of substantially equivalent value within the 
State of North Dakota. The bill further directs the Secretary 
to, upon request of a Tribe, take into trust relinquished lands 
or mineral estates within the boundaries of a reservation.
    The BLM generally supports the conveyance of public lands 
when such conveyances are in the public interest and consistent 
with publicly approved land use plans. In addition, the BLM is 
committed to managing public lands and minerals in a manner 
that seeks to protect the treaty, religious, subsistence, and 
cultural interests of Federally recognized Tribes, consistent 
with the BLM's mission and applicable law. By placing lands 
into trust status through the Department, Tribes are able to 
reacquire lands within or near their reservations, establish a 
land base for Tribal communities, and clarify jurisdiction over 
their lands.
    The BLM supports the Sponsor's goal of addressing the 
patchwork of inholdings within existing reservation boundaries. 
The BLM would like to work with the Sponsor to clarify the 
intent of several of the bill's provisions and the mechanisms 
outlined in the bill for effectuating the proposed conveyances.
Analysis
    The North Dakota Enabling Act, enacted in 1889, provided 
for the division of what was then known as Dakota into two 
states--North Dakota and South Dakota. It also enabled the 
people of North Dakota and South Dakota, as well as the states 
of Montana and Washington, to form constitutions and state 
governments. The Act granted, with certain exceptions, sections 
16 and 36 in every township to the new states to support 
schools. Under the Act, the State of North Dakota was granted 
lands and minerals totaling more than 2.5 million acres.
    Many of the land grant parcels are located within Tribal 
reservation boundaries. Specifically, 3,612 surface acres and 
74,888 total subsurface acres are located within the Fort 
Berthold Indian Reservation; 24,179 surface acres and 74,717 
total subsurface acres are located within the Standing Rock 
Indian Reservation; 9,379 surface acres and 36,338 total 
subsurface acres are located within the Fort Totten Indian 
Reservation; and 72 surface acres and 639 total subsurface 
acres are located within the Sisseton-Wahpeton Indian 
Reservation. There are no state land grant parcels located 
within the Turtle Mountain Indian Reservation. In total, there 
are approximately 37,000 surface acres and 186,000 total 
mineral acres located within the boundaries of the five Tribal 
reservations in the state.
    The BLM notes that it manages only approximately 58,000 
surface acres in North Dakota, which would constrain the BLM's 
ability under the bill to convey surface acres should the State 
select surface acres in exchange for relinquishing state land 
grant parcels. Should the State focus on obtaining Federal 
minerals via selection of subsurface lands, the BLM notes that 
a large majority of the Federal oil and gas minerals in North 
Dakota are leased, and thus are encumbered by valid existing 
rights. We would like to work with the Sponsor to clarify which 
Federal mineral estate would be eligible for transfer and 
whether any additional exclusions should be included in the 
bill. We also recommend further coordination with the U.S. 
Department of Agriculture (USDA) particularly if surface 
management of the National Forest System lands might be 
affected.
Parcel Selection Process
    S. 1088 authorizes the State of North Dakota to select one 
or more parcels of BLM-managed public land of substantially 
equivalent value within the State in exchange for relinquishing 
to the Department all right, title, and interest of a state 
land grant parcel located wholly or partially within the 
boundaries of any Tribal reservation. Under the bill, the 
Secretary must approve or reject the State's selection within 
90 days, and if approved, must initiate the process of 
conveying the selected parcel to the State within 60 days. The 
bill stipulates that the conveyance shall not be considered a 
sale, exchange, or conveyance under section 203, 205, 206, or 
209 of FLPMA.
    After selection and approval, the bill requires that 
relinquished state land grant parcels located within the 
boundaries of a Tribal reservation be taken into trust by the 
Secretary for the benefit of that Tribe, upon the request of 
the Tribe. Prior to the conveyance of such a parcel, the State 
and the Secretary are required to consult with the Tribe that 
has the subject land grant parcel within its reservation 
boundaries.
    The BLM notes that although the bill stipulates that the 
conveyances would not be considered a sale, exchange, or 
conveyance under FLPMA, there are necessary procedures and 
compliance actions required to convey ownership. While the BLM 
recognizes the Sponsor's intent to simplify the conveyance 
process for the purposes of the bill, the BLM would like to 
work with the Sponsor to ensure any lands selected by North 
Dakota go through an appropriate review process. In addition, 
the BLM would like to work with the Sponsor to include all 
affected Tribes in the Tribal consultation process, and not 
limit consultation to only the Tribe with the state land grant 
inholding to be conveyed, as Tribal consultation is an 
important process that should involve Tribes impacted by a 
Federal action, consistent with applicable law and regulation.
Existing Uses
    The bill permits the State to select, and the Secretary to 
convey, BLM-managed public lands that are subject to a mineral 
lease or permit issued under the Mineral Leasing Act or in a 
producing or producible status during the 10-year period 
following enactment. The State would also be authorized to 
select BLM-managed land that is ``mineral in character,'' on 
the condition that, if subject to an existing lease or permit, 
the Secretary shall reserve an overriding interest in the 
portion of the mineral estate that is subject to a mineral 
lease, and such a selection shall not include any portion of 
the mineral lease or permit. The bill allows the conveyance of 
the Federal surface interest of land subject to a mineral lease 
but requires all Federal mining claims to be converted to State 
leases and provides that the State will assume all authority 
over any authorizations or obligations applicable to a 
relinquished Federal mining claim. Under the bill, all BLM-
managed parcels selected by the State for conveyance would be 
withdrawn from operation of the public land laws, mining laws, 
and mineral leasing laws, with the withdrawal ending on the 
date the land is conveyed to the State or the date that the 
selection is rejected.
    Regarding all existing uses, section 4(c) of the bill 
states that each party to an exchange shall, to the fullest 
extent allowable under Federal and state law, assume the rights 
and obligations of the conveying party with respect to any 
lease, right-of-way, permit, or other valid existing rights. 
The bill specifically provides for continuance of Federal 
grazing permits by requiring the Secretary and the State to 
allow the grazing to continue for the remainder of the permit 
or lease term. Further, the bill stipulates that if a parcel 
conveyed by the State is used to meet the base property 
requirements for a Federal grazing permit or lease, the land 
shall continue to qualify as a base property for the remainder 
of the term of the permit or lease, as well as for the term of 
any renewal or extension.
    The BLM notes that while several of the bill's provisions 
refer to ``Federal mining claims,'' there are currently no 
Federal locatable mining claims in North Dakota. The BLM 
recommends the Sponsor clarify the intent of these provisions. 
In addition, it is unclear what would constitute the 
``overriding interest'' reserved by the Secretary in mineral 
estate subject to a lease. The BLM recommends that the Sponsor 
further define what is considered an overriding interest, as 
well as the mechanism for its reservation. Further, the BLM 
recommends the Sponsor clarify whether the overriding interest 
reserved by the Secretary would supersede the bill's direction 
that each party is to succeed to the rights and obligations of 
the conveying party with respect to any lease, right-of-way, 
permit, or other valid existing right to which the land is 
subject--particularly given other provisions directing 
conversion of all Federal mining claims to state leases.
    The BLM appreciates the Sponsor's attention to the 
disposition of existing grazing operations in the bill. The BLM 
notes that it may still be required to comply with regulations 
requiring two years notice of lease cancellation, and 
cooperative range improvements may also require refunds based 
on valuation and depreciation schedules. The Department also 
recommends that the Sponsor work with the Bureau of Indian 
Affairs to clarify future management of state grazing leases on 
the lands to be held in trust for the benefit of a Tribe.
    Lastly, the BLM notes that the savings clause in section 7 
of the bill states that ``nothing in this Act applies to or 
impacts the ownership of any land or mineral resources.'' The 
BLM recommends that the Sponsor clarify the intent of the 
savings clause, given the conveyances of ownership of land and 
mineral resources directed by the bill.
Valuation of Parcels
    Under the bill, state land grant parcels conveyed for a 
parcel of Federal land must be ``substantially equal in 
value.'' The bill requires the Secretary to determine the 
values of both the state land grant parcel and the BLM-managed 
parcel to be conveyed through an appraisal completed in 
accordance with the Uniform Appraisal Standards for Federal 
Land Acquisitions.
    The bill further authorizes the Secretary, with the consent 
of the State, to use mass appraisals, a summary appraisal, or a 
statement of value made by a qualified appraiser to determine 
the value of a parcel using the Uniform Standards for 
Professional Appraisal Practice, if both parties agree that the 
market value of the parcel is less than $500,000 and less than 
$500 per acre.
    For the value of a Federal parcel that is attributed to the 
existence of a mineral lease and the lease is to be conveyed, 
the bill requires that the value of the parcel be reduced by 
the amount that represents the likely Federal revenue sharing 
obligation under the Mineral Leasing Act. The bill stipulates 
that such an adjustment is not to be considered as a property 
right of the State.
    If the overall value of the parcels to be conveyed is not 
equal, the bill requires the party conveying the parcel of 
lesser value to equalize the value by payment of funds to the 
other party. The bill also allows the party conveying the 
parcel of lesser value to enter the imbalance in value in a 
ledger account established by the bill. The ledger account must 
reflect imbalances in value to be reconciled in a subsequent 
transaction, balanced not later than three years after the date 
on which the ledger account is established, and closed not 
later than five years after the date of the last conveyance of 
land under the bill. Regarding costs and other requirements of 
conveyance, the bill authorizes the State or the Secretary to 
assume costs, responsibilities, or requirements for conveying 
land under the bill that are ordinarily borne by the other 
party. The parties are directed to make adjustments to the 
value of the Federal parcel to be conveyed to compensate the 
State or the Secretary, as applicable.
    The BLM notes that the bill does not include any mechanism 
for protesting or appealing land valuations by any party. The 
BLM recommends that the Sponsor consider their intent to as to 
how such protests or appeals would be addressed. In addition, 
the BLM notes that it is typical for the party requesting the 
purchase to cover the costs of conveyance outright and 
recommends amending the provisions requiring adjustments to the 
value of the Federal land to be conveyed to the State 
accordingly.

                        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. 1088 as ordered 
reported.