[House Report 119-581]
[From the U.S. Government Publishing Office]


119th Congress }                                              { Report
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                              { 119-581

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



 
            NORTH DAKOTA TRUST LANDS COMPLETION ACT OF 2026

                            ----------------
                                
 April 2, 2026.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                            ----------------
                                
        Mr. Westerman, from the Committee on Natural Resources, 
                        submitted the following


                              R E P O R T

                        [To accompany H.R. 2252]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 2252) 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 and recommends 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.

  This Act may be cited as the ``North Dakota Trust Lands Completion 
Act of 2026''.

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) Selection.--
                  (A) In general.--Subject to a mutual agreement 
                between the State and the Secretary, the land exchange 
                authorized under paragraph (1) may be carried out in a 
                single phase or multiple phases.
                  (B) List.--For each phase of the land exchange, the 
                State shall provide to the Secretary a selection list 
                in accordance with this Act, including all selected 
                parcels of unappropriated Federal land of substantially 
                equivalent value.
                  (C) Adjustments.--Adjustments to parcels included in 
                the selection list for each phase may be made as 
                necessary, not later than 120 days of delivery of the 
                list to the Secretary, to equalize the value of State 
                land grant parcels and the overall value of the parcels 
                of unappropriated Federal land selected.
          (3) Approval.--Not later than 180 days after the date on 
        which the State makes a selection for each phase under 
        paragraph (2), the Secretary shall approve or reject, in whole 
        or in part, the selection for that phase.
          (4) 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)(3), 
                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 
        for such Federal land 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)(3); 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.
          (6) Public inspection and notice.--
                  (A) Public inspection.--Not later than 30 days before 
                the date of any exchange of Federal land and non-
                Federal land under this act, all final appraisals and 
                appraisal reviews for the land to be exchanged shall be 
                available for public review at the office of the State 
                Director of the Bureau of Land Management in the 
                Montana-Dakotas State Office.
                  (B) Notice.--The Secretary shall make available on 
                the public website of the Secretary, and the Secretary 
                or the State, as applicable, shall publish in a 
                newspaper of general circulation in North Dakota, a 
                notice that the appraisals conducted under subsection 
                (b) are available for public inspection.

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 OF THE LEGISLATION

    The purpose of H.R. 2252 is 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.

                  BACKGROUND AND NEED FOR LEGISLATION

    In 1889, Congress passed legislation to ``provide for the 
division of Dakota into two states, and to enable the people of 
North Dakota, South Dakota, Montana, and Washington to form 
constitutions and state governments, and to be admitted into 
the union on an equal footing with the original states, and to 
make donations of public lands to such states.''\1\ This 
enabling statute granted approximately 2.6 million acres of 
individual parcels to North Dakota to generate revenue to 
``support common schools.''\2\ Today, North Dakota manages 
approximately 706,600 acres of surface estate and 2.6 million 
acres of mineral estate.\3\ To generate revenue, the state 
manages roughly 8,300 oil and gas leases and approximately 
4,400 agriculture leases on these lands.\4\ The revenue from 
these leases is deposited into 13 permanent trust funds and 
invested to provide long-term financing for education and other 
public benefits the state provides.\5\
---------------------------------------------------------------------------
    \1\25 U.S. Statutes at Large, c 180 p 676.
    \2\``Mission, Vision & History,'' North Dakota Department of Trust 
Lands, https://www.land.nd.gov/mission-vision-history.
    \3\Id.
    \4\Joseph Heringer, North Dakota Commissioner of University and 
School Lands, Testimony before the Senate Committee on Natural 
Resources, July 12, 2023, https://www.energy.senate.gov/services/files/
406A4831-28DD-4778-951F-F9C4314254F4.
    \5\Id.
---------------------------------------------------------------------------
    As a provision of the enabling statute, if promised land 
parcels in townships had been sold before North Dakota became a 
state, the law permitted the state government to receive 
separate, unreserved federal lands ``in lieu'' of the 
unavailable lands.\6\ The law did not permit in-lieu-of 
selections to be located within Indian Reservations. However, 
subsequent establishments of Tribal Reservations trapped more 
than 31,000 surface acres and 130,000 acres of mineral estate 
previously selected by the State of North Dakota within these 
boundaries.\7\ According to the North Dakota Commissioner of 
University and Lands, Joseph Heringer, the lands within Tribal 
Reservations are ``unable to be developed pursuant to the 
[s]tate's mandate to generate income for schools, universities, 
and other public purposes.''\8\
---------------------------------------------------------------------------
    \6\Id.
    \7\``Legislation would improve access to state-owned minerals,'' 
Minot Daily News, November 6, 2021, https://www.minotdailynews.com/
news/local-news/2021/11/legislation-would-improve-
access-to-state-owned-minerals/.
    \8\Joseph Heringer, North Dakota Commissioner of University and 
School Lands, Testimony before the Senate Committee on Natural 
Resources, July 12, 2023, https://www.energy.senate.gov/services/files/
406A4831-28DD-4778-951F-F9C4314254F4.
---------------------------------------------------------------------------
    H.R. 2252 remedies this limitation by allowing North Dakota 
to relinquish trapped state lands within Tribal Reservations to 
the federal government and select ``in-lieu'' federal lands 
elsewhere in the state. The bill requires the exchanges to be 
equal-value transactions. North Dakota could access and develop 
these lands to generate income for education and other public 
purposes while providing greater land ownership for Tribes 
within Reservation boundaries.

                            COMMITTEE ACTION

    H.R. 2252 was introduced on March 21, 2025, by 
Representative Julie Fedorchak (R-ND). The bill was referred to 
the Committee on Natural Resources. On March 5, 2026, the 
Committee on Natural Resources met to consider the bill. 
Chairman Bruce Westerman (R-AR) offered an Amendment in the 
Nature of a Substitute designated Westerman_063 ANS. The 
Amendment in the Nature of a Substitute was agreed to by 
unanimous consent. The bill, as amended, was ordered favorably 
reported to the House of Representatives by unanimous consent.

                                HEARINGS

    For the purposes of clause 3(c)(6) of House rule XIII, the 
following hearing was used to develop or consider this measure: 
hearing in the 118th Congress by the Subcommittee on Federal 
Lands held on July 24, 2024.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 names the legislation the ``North Dakota Trust 
Lands Completion Act of 2026.''

Section 2. Definitions

    Section 2 defines key terms used in the legislation.

Section 3. Relinquishment and selection; Conveyance

    Section 3 authorizes the Secretary of the Interior 
(Secretary) to allow the State of North Dakota (State) to 
select one or more parcels of unappropriated federal land of a 
substantially equivalent value if the State elects to 
relinquish all right, title, and interest in a State land grant 
parcel located wholly or partially within the boundaries of a 
Tribal Reservation. The selection process is subject to mutual 
agreement between the Secretary and State and may be carried 
out in one or more phases. For each phase, the State must 
submit a selection list identifying the parcels of 
unappropriated federal land proposed for conveyance. 
Adjustments to the selection list may be made within 120 days 
of submission to equalize the value of the State land grant 
parcels and the selected federal lands. The Secretary must 
approve or reject each selection, in whole or in part, within 
180 days. Section 3 also clarifies that the Secretary may 
conduct environmental review of any parcel proposed for 
relinquishment if the Secretary determines such review is 
appropriate.
    Section 3 also directs the Secretary to initiate the 
conveyance of selected unappropriated federal land within 60 
days after the State's selections are approved. The conveyance 
must be subject to valid existing rights, occur by patent or 
deed in a form acceptable to both the State and the Secretary, 
and will not be considered a sale, exchange, or conveyance for 
purposes of Sections 203, 205, 206, or 209 of the Federal Land 
Policy and Management Act of 1976 (FLPMA).\9\ On the same date 
that the unappropriated federal land is conveyed to the State, 
the State must concurrently relinquish and convey to the 
Secretary all right, title, and interest in the identified 
State land grant parcel. The State must convey the parcel free 
of any financial claims, liabilities, or encumbrances, and the 
relinquishment shall not be considered an exchange or 
acquisition under Sections 203, 205, or 206 of FLPMA.\10\ 
Section 3 further provides that each party receiving land under 
this legislation succeeds 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, to the fullest extent allowable under federal and 
state law.
---------------------------------------------------------------------------
    \9\43 U.S.C. 1713, 1715, 1716, 1719.
    \10\43 U.S.C. 1715, 1716.
---------------------------------------------------------------------------
    Additionally, Section 3 stipulates that if a State land 
grant parcel relinquished by the State is located wholly or 
partially within the boundaries of a Tribal Reservation, the 
applicable Indian Tribe may request that any portion of the 
parcel located within the Reservation's boundaries be taken 
into trust by the Secretary on behalf of the Tribe and 
considered part of the Reservation. Prior to any such 
conveyance, the Secretary and State must consult with the 
affected Indian Tribe in accordance with Executive Order 13175 
and other relevant laws.\11\
---------------------------------------------------------------------------
    \11\25 U.S.C. 5301 note; relating to consultation and coordination 
with Indian tribal governments.
---------------------------------------------------------------------------
    Finally, Section 3 provides that any federal land selected 
by the State for conveyance will be withdrawn from entry, 
appropriation, or disposal under the public land laws; from 
location, entry, and patent under the mining laws; and from 
disposition under laws governing mineral and geothermal leasing 
or mineral materials. Section 3 also clarifies that these 
withdrawals take effect on the date the State makes the 
selection and remain in place until the land is conveyed to the 
State, the Secretary rejects the selection, or the State 
withdraws the selection.

Section 4. Valuation

    Section 4 requires that the overall value of a State land 
grant parcel conveyed to the Secretary and the value of 
unappropriated federal land selected by the State be 
substantially equal. If the parcels are not of equal value, the 
party conveying the parcel of lesser value must either equalize 
the difference through a payment or record the value imbalance 
in a ledger account for reconciliation in a later transaction. 
Section 4 requires that the value of land to be conveyed be 
determined through appraisals conducted by one or more 
independent appraisers jointly selected by the Secretary and 
the State and in accordance with standard appraisal 
regulations.
    Section 4 further clarifies that, in instances where the 
State conveys a parcel that is of lesser value than the federal 
land it receives, the total equalization payment or ledger 
adjustment may not exceed 25 percent of the value of the 
federal parcel. For parcels of relatively low value (i.e., less 
than $500,000 per parcel or $500 per acre), the Secretary, with 
the consent of the State, may rely on a mass appraisal, summary 
appraisal, or statement of value prepared by a qualified 
appraiser. Parcels may not be artificially divided to qualify 
for this streamlined appraisal process. Additionally, Section 4 
allows the Secretary and State to use a ledger account, which 
reflects imbalances in value between conveyed parcels, to allow 
for imbalances to be reconciled in a subsequent transaction. 
Under Section 4, ledger accounts must be balanced within three 
years of being established and closed within 5 years after the 
final conveyance.
    Furthermore, Section 4 establishes that the Secretary or 
the State may assume costs or responsibilities associated with 
conveying land that would normally fall to the other party, and 
that the value of the conveyed land may be adjusted accordingly 
to compensate for those costs. Section 4 also stipulates that, 
in instances where the State selects federal land because of 
the presence of leased minerals under the Mineral Leasing Act, 
the value of such land be reduced by the amount of future 
federal revenue sharing obligations the federal government 
would have otherwise received.\12\ Such adjustment may not be 
interpreted as establishing property rights of the State.
---------------------------------------------------------------------------
    \12\30 U.S.C. 181 et seq.
---------------------------------------------------------------------------
    Finally, Section 4 requires that final appraisals and 
appraisal reviews be made available for public inspection at 
least 30 days prior to any land conveyance. Section 4 also 
clarifies that the Secretary must make the appraisals available 
at the Bureau of Land Management's Montana-Dakotas State 
Office, publish notice on the Department of the Interior's 
website, and provide notice in a newspaper of general 
circulation in the State.

Section 5. Miscellaneous

    Section 5 stipulates that any land or minerals conveyed 
under the legislation remain subject to applicable federal, 
state, and Tribal laws. Section 5 further clarifies that 
nothing in the bill modifies, limits, expands, or affects any 
rights of Indian Tribes. Additionally, Section 5 clarifies that 
nothing in the bill affects any current land or minerals held 
in trust by the United States on behalf of, or for the benefit 
of, any Indian Tribe or individual Indian allotment. Section 5 
further requires the Secretary and State to conduct an 
inspection and complete a hazardous materials certification for 
their respective lands prior to conveyance and to make those 
records available for review and inspection.
    Section 5 also protects active grazing operations by 
stipulating that if conveyed land is subject to a lease, 
permit, or contract for the grazing of domestic livestock, the 
Secretary and the State must allow such grazing to continue for 
the remainder of the agreement, subject to existing terms and 
conditions including stocking rates, grazing fees, access, and 
range improvements. However, nothing in the legislation 
prevents the Secretary or the State from canceling or modifying 
a grazing permit, lease, or contract if the land is sold, 
conveyed, transferred, or leased for non-grazing purposes. If 
land conveyed by the State is used by a grazing permittee or 
lessee to meet the base property requirements for a federal 
grazing permit or lease, the land will continue to qualify as a 
base property for the remaining term of the lease or permit and 
any renewal or extension of that agreement. Finally, Section 5 
clarifies that nothing in the bill prevents a grazing permit 
holder from being compensated for range improvements in 
accordance with the terms of the lease, permit, or contract 
under existing federal and state laws.

Section 6. Savings clause

    Section 6 clarifies that nothing in the legislation applies 
to or affects litigation pending on the date of enactment of 
the bill regarding the ownership of any land or mineral 
resources located within the State.

            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 AND CONGRESSIONAL 
                               BUDGET ACT

    1. Cost of Legislation and the Congressional Budget Act. 
Pursuant to clause 3(c)(2) of House rule XIII and section 
308(a) of the Congressional Budget Act of 1974, and pursuant to 
clause 3(c)(3) of House rule XIII and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received from the Director of the Congressional Budget 
Office a budgetary analysis and a cost estimate of this bill.
    2. 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 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.

                           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.

                 UNFUNDED MANDATES REFORM ACT STATEMENT

    An estimate of federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chair of 
the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee, if such 
estimate is not publicly available on the Congressional Budget 
Office website.

                           EXISTING PROGRAMS

    Directed Rule Making. This bill does not contain any 
directed rule makings.
    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.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

                        CHANGES IN EXISTING LAW

    As ordered reported by the Committee on Natural Resources, 
H.R. 2252 would make no changes in existing law.

                                  [all]