[Federal Register Volume 63, Number 148 (Monday, August 3, 1998)]
[Notices]
[Pages 41303-41304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20571]


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OFFICE OF MANAGEMENT AND BUDGET


Budget Rescissions and Deferrals

    TO THE CONGRESS OF THE UNITED STATES:

    In accordance with the Congressional Budget and Impoundment 
Control Act of 1974, I herewith report one proposed rescission of 
budgetary resources, totaling $5.2 million.
    The proposed rescission affects programs of the Department of 
the Interior.
William J. Clinton
THE WHITE HOUSE,
    July 24, 1998.

Rescission Proposal No. R98-25

PROPOSED RESCISSION OF BUDGET AUTHORITY

Report Pursuant to Section 1012 of P.L. 93-344
Agency: DEPARTMENT OF THE INTERIOR
Bureau: Bureau of Land Management
Account: Mineral leasing and associated payments

New budget authority: $5,200,000
Other budgetary resources:----
Total budgetary resources: 5,200,000

Amount proposed for rescission: 5,200,000

    Proposed appropriations language:
    The budget authority provided by section 503 of Public Law 105-83 
is hereby rescinded.
    Justification: The proposal would rescind $5,200 thousand for a 
conveyance to the State of Montana of Federal mineral rights. This 
amount was canceled under the Line Item Veto Act, which the Supreme 
Court ruled unconstitutional on June 25, 1998.
    In connection with the Crown Butte/New World Mine acquisition 
(addressed in section 502 of P. L. 105-83), section 503 provides for 
the uncompensated conveyance to the State of Montana of either $10 
million in Federal mineral rights in Montana or the Federal mineral 
rights in Otter Creek Tracts 1, 2, and 3 (in Montana).
    Section 503 would cause Federal taxpayers to lose their share of 
royalties from Federally-owned lands, which would normally be split 
between the State where the Federally-owned lands are located and the 
U.S. Treasury upon development of Federal mineral rights. The Federal 
share would be $5.2 million. The section would set a costly, 
unnecessary precedent by requiring the Federal Government to 
``compensate'' a State for a purchase or exchange of lands between the 
Federal Government and a willing seller. This precedent could, 
therefore, discourage innovative, cost-effective land protection 
solutions in the future.
    This proposed rescission applies to the budget authority under each 
of the alternative conveyances under sections 503(a)(1) and 503(a)(2).
    This action is taken pursuant to the Antideficiency Act (31 U.S.C. 
1512).
    Estimated programmatic effect: As a result of the proposed 
rescission, net Federal outlays will decrease, as specified below.

    (Note: The amount of the effect depends on whether mineral 
rights would have been conveyed under section 503(a)(1) or under 
section 503(a)(2). As discussed below, the Administration estimates 
that mineral rights would more likely have been conveyed under 
section 503(a)(1).) This will have a commensurate effect on the 
Federal budget deficit.

[[Page 41304]]



                              Outlay Changes Under Rescission of Section 503(a)(1)                              
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                                   Effect on outlays (in thousands of dollars)                                  
-----------------------------------------------------------------------------------------------------------------
     FY 1998            FY 1999            FY 2000            FY 2001            FY 2003             Total      
----------------------------------------------------------------------------------------------------------------
-1,300...........          -1,300             -1,300             -1,300     .................          -5,200   
----------------------------------------------------------------------------------------------------------------


                              Outlay Changes Under Rescission of Section 503(a)(2)                              
----------------------------------------------------------------------------------------------------------------
                                   Effect on outlays (in thousands of dollars)                                  
-----------------------------------------------------------------------------------------------------------------
     FY 1998            FY 1999            FY 2000            FY 2001            FY 2003             Total      
----------------------------------------------------------------------------------------------------------------
.................                                                                                               
 ................                                                                                               
 ................  .................  .................  .................          -1,352             -1,352   
----------------------------------------------------------------------------------------------------------------

    The negotiations requirement in section 503(b), and the legislative 
history of section 503, make clear that the intent of the section was 
that the Secretary of the Interior would convey $10 million in Federal 
mineral rights in the State of Montana under section 503(a)(1), rather 
than all Federal mineral rights in Otter Creek Tracts 1, 2, and 3 under 
section 503(a)(2), and it is most likely that this is what the 
Secretary would have done.
    The discretionary budget authority in both section 503(a)(1) and 
section 503(a)(2) is proposed to be rescinded, but because the 
Secretary could not have made both conveyances, and the dollar amount 
of discretionary budget authority for the intended and most likely 
conveyance under section 503(a)(1) exceeds the dollar amount of 
discretionary budget authority for the alternative conveyance under 
section 503(a)(2) through FY 2003, the dollar amount of discretionary 
budget authority proposed for rescission above of $5,200,000 is based 
upon the most likely conveyance under section 503(a)(1).

[FR Doc. 98-20571 Filed 7-31-98; 8:45 am]
BILLING CODE 3110-01-P