II
112th CONGRESS
1st Session
S. 759
IN THE SENATE OF THE UNITED STATES
April 7 (legislative day, April 5), 2011
Mrs. Boxer introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources
A BILL
To provide to the Secretary of Interior a mechanism to cancel contracts for the sale of materials CA–20139 and CA–22901, and for other purposes.
Short title
This Act may be cited as the
Soledad Canyon High Desert, California
Public Lands Conservation and Management Act of
2011
.
Finding and purposes
Findings
The Congress finds the following:
Soledad Canyon area
Two valid Federal contracts, privately held, numbered CA–20139 and CA–22901, and issued under the Materials Act of 1947, authorize extraction of approximately 56,000,000 tons of sand and gravel from the Federal mineral estate in lands located in Soledad Canyon adjacent to the City of Santa Clarita, California.
It is in the best interest of the citizens of California and the Federal Government to cancel the Contracts and prohibit future mining in the area that was subject to the two Federal Contracts in the Soledad Canyon area of California.
The holder of the Contracts should receive, as compensation for such cancellation, the fair market value of the Contracts and all costs, fees, and covered liabilities incurred by the Contract Holder in good faith in its efforts to develop the Contracts.
A site-specific solution that is fair to the Contract Holder and that seeks to protect the environment and minimize impacts on local transportation systems is in the best interest of the Nation.
Considerable sums of money have been expended by the Contract Holder and the City of Santa Clarita on legal and other services in trying to ensure their interests are protected with respect to the Contracts CA–20139 and CA–22901.
Facilitation of an open-space corridor between the two arms of the Angeles National Forest that enhances environmental and wildlife values is in the national interest.
Victorville area
The Bureau of Land Management has extensive land ownership in small and large parcels interspersed with or adjacent to private land in and around Victorville, California, making many of these parcels difficult to manage and appropriate for disposal.
Certain public lands near Victorville, California, have been previously identified for disposal as a result of the Bureau of Land Management’s West Mojave Land Management Plan which was approved in 2006 with public involvement and participation.
In order to promote responsible and orderly economic development, certain public lands should be sold at fair market value to the City of Victorville or the County of San Bernardino; both located in California.
Purposes
The purposes of this Act are the following:
To provide to the Bureau of Land Management the authority to cancel Contracts CA–20139 and CA–22901 and prohibit future mining in the area that was subject to the two Federal Contracts in the Soledad Canyon area of California.
To provide a means for the Contract Holder to recover for the cancellation of the Contracts, the fair market value of the Contracts and the Contract Holder’s expenditures and covered liabilities incurred pursuing the development of the Contracts.
To provide the Bureau of Land Management tools to verify expenses incurred by the Contract Holder and provide relief.
To provide timelines for the verification of costs incurred by the Contract Holder and the determination of compensation and to provide a dispute resolution process.
To provide for the orderly disposal of certain Federal lands in San Bernardino County, California, and to provide for the acquisition of environmentally sensitive lands in the State of California.
Definitions
In this Act:
City of Santa Clarita
The term City of Santa Clarita means the City of Santa Clarita, California.
City of Victorville
The term City of Victorville means the City of Victorville, California.
County of San Bernardino
The term County of San Bernardino means the County of San Bernardino, California.
Contracts
The term Contracts means the Bureau of Land Management mineral contracts numbered CA–20139 and CA–22901.
Contract Holder
The term Contract Holder means the private party to the Contracts CA–20139 and CA–22901, and its successors that hold legal interests in such Contracts.
Covered liabilities
The term covered liabilities includes any court-ordered or court-approved payment, settlement, or other liability on the part of the Contract Holder for damages, costs, compensation, or reimbursement to any third party for agreements entered into by the Contract Holder in good faith prior to January 1, 2008, in order to exercise rights under the Contracts.
Environmentally sensitive land
The term environmentally sensitive land means land or an interest in land, the acquisition of which by the United States would, in the judgment of the Secretary or the Secretary of Agriculture—
promote the preservation of natural, scientific, aesthetic, historical, cultural, watershed, wildlife, and other values contributing to public enjoyment and biological diversity;
enhance recreational opportunities and public access;
provide the opportunity to achieve better management of public land through consolidation of Federal ownership; or
otherwise serve the public interest.
Materials Act of 1947
The term Materials Act of 1947 means the Act of July 31, 1947 (chapter 406; 61 Stat. 681; 30 U.S.C. 601–604).
Secretary
The term Secretary means the Secretary of the Interior.
Special account
The term special account means the account in the Treasury of the United States established under section 5(h).
Cancellation of the contracts; compensation to contract holder
Contract cancellations
The Secretary shall cancel Bureau of Land Management mineral Contracts CA–20139 and CA–22901 and withdraw those areas that were subject to the Contracts from further mineral entry under all mineral leasing and sales authorities available to the Secretary, effective on the date of the enactment of this Act.
Compensation
As compensation for the cancellation of the Contracts, the Contract Holder shall receive the following amounts, whether determined by agreed negotiated value or awarded by judgment of the United States Court of Federal Claims in accordance with the referral provisions of subsection (g)—
the fair market value of the cancelled Contracts, determined in accordance with subsection (e);
the Contract Holder’s expenditures in trying to bring the Contracts into commercial production, as described in subsection (f);
interest on the compensation provided for in paragraphs (1), (2), and (4) from the date of the enactment of this Act until the last day of the month preceding the date on which payment is made, compounded quarterly and computed at the rate applicable to marketable obligations of the United States of three year maturity for the period involved; and
covered liabilities incurred in trying to bring the Contracts into commercial production, as described in subsection (f); provided, however, that compensation for covered liabilities may be paid to Contract Holder under this section for up to 15 years following the effective date of this Act.
Means of payment; assurances of payment
Full faith and credit
The full faith and credit of the United States is hereby pledged to the payment of the compensation provided for in subsection (b).
Means of payment
Compensation paid to Contract Holder under this Act shall be paid by means of disbursement of funds from the special account created in the Treasury of the United States pursuant to section 5(h) except as otherwise provided in paragraph (3).
Payment by deadline
Notwithstanding paragraph (2) or any other provision of this Act, in the event that the Contract Holder has not received all of the compensation provided for in this section on or before the third anniversary of the enactment of this Act, all compensation then remaining to be paid to Contract Holder shall be paid from the permanent judgment appropriation established pursuant to section 1304 of title 31, United States Code.
Negotiated agreement
Any negotiated agreement between the Secretary and the Contract Holder as to the amount of compensation described in subsection (b) shall be deemed to be a compromise settlement of imminent litigation within the meaning of section 1304 of title 31, United States Code, and section 2414 of title 28, United States Code, and, notwithstanding anything to the contrary contained in any other provision of law, including section 2517 of title 28, United States Code, any final judgment by the United States Court of Federal Claims determining the fair market value of Contracts CA–20139 and CA–22901 in accordance with the referral provisions of subsection (g) shall be deemed to be a final judgment and award within the meaning of section 1304 of title 31, United States Code.
Increase in adjusted basis of contract upon cancellation
For purposes of the Internal Revenue Code of 1986, the adjusted basis of any Contract to which subsection (a) applies shall be increased (immediately before the cancellation of such Contract under such section) by the excess (if any) of—
the fair market value of such Contract (determined immediately before such cancellation), over
the adjusted basis of such Contract (as determined immediately before the application of this section).
Determination of fair market value
The Secretary shall, within six months after the date of enactment of this Act, determine by mineral appraisal, utilizing the discounted cash flow method of appraisal (in accordance with the appraisal guidelines for appraisals of large quantities of mineral materials contained in section IV(E) of BLM Mineral Material Appraisal Handbook H–3630), the fair market value of the Contracts and notify the Contract Holder of those determinations. In determining the fair market value of the Contracts, the Secretary shall assume that—
the Contract Holder has obtained all the permits and entitlements necessary to mine, produce, and sell sand and gravel under the Contract; and
mining operations under the Contract have commenced at the time of the determination, with maximum annual production volumes that—
are based on the projected supply and demand outlook at the time of determination; and
reflect depletion of the reserves that are subject to the Contract within the effective periods of the Contract.
Expenditures and covered liabilities described
The compensation provided for in subsection (b)(2) is equal to the sum of the following:
All amounts paid to the United States by Contract Holder with respect to the cancelled Contract as bonus bids or other prepayments.
Interest on amounts referred to in paragraph (1), from the date of payment of such amounts to the United States, at a rate determined by the Secretary.
Amounts expended by the Contract Holder in securing the Contract and trying to bring it into production, including—
all actual costs, including fees, associated with the engineering and environmental studies and permitting proceedings that were incurred in good faith in the Contract Holder’s efforts to exercise rights granted under the Contract terms; and
all actual legal costs, including fees and covered liabilities, incurred in good faith in the Contract Holder’s efforts to exercise rights granted in the Contract including all fees and costs associated with securing permits and entitlements, litigation to compel, secure, or defend permits or entitlements, and litigation in connection with disputes relating to mineral and surface estate rights to the property that is the subject of the Contract.
Referral to the United States Court of Federal Claims
Referral
If within 12 months after the date of enactment of this Act, the Secretary and the Contract Holder do not reach agreed negotiated value under subsection (b) regarding the fair market value of Contracts CA–20139 and CA–22901, the Contract Holder shall have 3 months thereafter to notify the Secretary that it disagrees with the Secretary’s determination of such value. In the event of such notification, the Secretary shall refer the issue of fair market value to the United States Court of Federal Claims for determination.
Resolution by court
In any referral under this subsection, the court shall determine de novo the fair market value of Contracts CA–20139 and CA–22901.
Submission of expenses incurred
In general
To assist in the verification of the amounts expended referred to in subsection (f)(3), the Contract Holder shall submit to the Secretary within 60 days after the date of enactment of this Act an itemized list of such amounts, with enough detail and supporting documentation so the Secretary can determine that the expenses are associated with the Contracts.
Arbitration
The Secretary shall issue the determination of the amounts expended referred to in paragraph (f)(3) within 60 days after receipt of the itemized list required under paragraph (1). If the Secretary disapproves such list, the Secretary shall, upon the request of the Contract Holder, determine such amounts through arbitration in accordance with subchapter IV of chapter 5 of title 5, United States Code.
Assignment
The Contract Holder may at any time assign its rights or entitlement under this Act to all or any part of the compensation provided for in paragraphs (1) and (2) of subsection (b).
Sale of land near Victorville, California
In general
Notwithstanding
sections 202 and 203 of the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1712, 1713) and subject to subsections (c), (d), and (e), the Secretary
shall offer for sale by competitive bidding and for a minimum price of not less
than fair market value, as determined by an appraisal conducted under
subsection (g), all right, title, and interest of the United States in and to
the land identified for disposition on the map entitled Victorville
disposal area, California
and dated March 2011.
Availability of map
The Secretary shall keep the map described in subsection (a) on file and available for public inspection in—
the office of the Director of the Bureau of Land Management; and
the district office of the Bureau of Land Management located in Barstow, California.
Right of local land use authority To purchase certain land
In general
Before a sale of land
under subsection (a), the Secretary shall provide the applicable local land use
authority an exclusive preemptive right, as determined under State law, to
purchase any right, title, or interest of the United States in and to any
portion of the parcels of land identified as Area A
and
Area B
on the map described in subsection (a) that is located
within the jurisdiction of the local land use authority.
Timing
A preemptive right under paragraph (1) shall be in effect for a period of 30 days before any phased sale of the land described in paragraph (1) is to be conducted under subsection (f).
Authority
During the period described in paragraph (2), the local land use authority may purchase some or all of the right, title, and interest of the United States, as provided in subsection (a), in and to the land to be offered for sale at fair market value, as determined by an appraisal conducted by the Secretary.
Exercising right
The preemptive right under paragraph (1) shall be exercised on the immediate payment by the local land use authority of the entire purchase price of the applicable parcel of land.
Failure to pay
Failure by the local land use authority to purchase and pay for the right, title, and interest of the United States in and to the land described in paragraph (1) within the time period described in paragraph (2) and to comply with any other terms and conditions as the Secretary may require—
shall terminate the preemptive right of the local land use authority with respect to the right, title, and interest offered for sale during that phase; but
shall not terminate the preemptive right of the local land use authority with respect to subsequent phased offers of the remaining right, title, and interest in and to the land described in paragraph (1).
Withdrawal and reservation
Withdrawal
Subject to valid existing rights, the land described in subsection (a) is withdrawn from—
entry, appropriation, or disposal under the public land laws;
location, entry, and patent under the mining laws; and
operation of the mineral leasing, mineral materials, and geothermal leasing laws.
Reservation
In any sale or other disposal of land under this section, there shall be reserved by the United States the right of the United States to prospect for, mine, and remove minerals from the conveyed land.
Consultation
In addition to any consultation otherwise required by law, before initiating efforts to dispose of land under this section, the Secretary shall consult with the City of Victorville, the County of San Bernardino, and surface owners in the jurisdiction in which the land is located regarding the potential impact of the disposal and other appropriate aspects of the disposal.
Phasing of sales
Area A land
Not later than 1 year after the date of enactment of this
Act and subject to the preemptive right under subsection (c), the Secretary
shall offer for sale under subsection (a) the land depicted as Area
A
on the map described in subsection (a).
Area B land
Not later than 2 years after the date of enactment of this
Act and subject to the preemptive right under subsection (c), the Secretary
shall offer for sale under subsection (a) the land depicted as Area
B
on the map described in subsection (a).
Remaining land
After consulting with
the City of Victorville and the County of San Bernardino, the Secretary may,
not later than 20 years after the date of enactment of this Act, offer for sale
under subsection (a) the remaining land identified for disposal in the West
Mojave Land Management Plan of 2006, except the land depicted as an Area
of Critical Environmental Concern
in the map described in subsection
(a).
Compliance with environmental requirements
Land disposal activities of the Secretary under this subsection shall be consistent with all applicable environmental laws (including regulations).
Determination of fair market value
Area A Land
The fair market value of the land described in subsection (f)(1) shall be based on an appraisal of the fair market value of the land as of the date of enactment of this Act, to be completed not later than 180 days after the date of enactment of this Act.
Area B Land
The fair market value of the land described in subsection (f)(2) shall be based on an appraisal of the fair market value of the land as of the date that is approximately 180 days before the date on which the land is offered for sale in accordance with subsection (f)(2), to be completed not later than 180 days before the date on which the land is to be offered for sale.
Special account
Establishment
The gross proceeds of a sale of land under subsection (a) shall be deposited in a special account established in the Treasury, to be used in accordance with paragraph (3).
Availability
Amounts in the special account established under paragraph (1) shall be available, without appropriation and until expended—
to the Secretary for purposes of subparagraphs (A) through (E) of paragraph (3); and
to the Secretary of Agriculture for purposes of subparagraphs (B) and (C) of paragraph (3).
Disposition of proceeds
Proceeds from a sale of land described in subsection (a) shall be disbursed by the Secretary in the following order of priority:
As compensation to the Contract Holder under section 4(b) for cancellation of the Contracts by the Secretary.
For the acquisition of private inholdings and land interests in the Mojave National Preserve.
For the acquisition of holdings and land interests from willing sellers contained within the Conceptual Area Protection Plan as identified in the East Santa Clarita Land Conservation Concept Plan and Implementation Strategy.
For the acquisition of environmentally sensitive land in the State of California in accordance with section 6.
For the reimbursement of costs incurred by the California State Office and the Barstow Field Office of the Bureau of Land Management for preparing for the conveyance of land described in subsection (a), including the costs of—
surveys and appraisals;
complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321); and
except as otherwise provided in subsection (a), complying with sections 202 and 203 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712, 1713).
Limitation on use other than for compensation
No funds may be expended under this subsection for purposes of subparagraphs (B) through (E) of paragraph (3) until the date on which the Secretary has paid to the Contract Holder all compensation provided for under section 4(b) for cancellation of the Contracts by the Secretary.
Special account reserve for contract holder
Limitation on disbursements
Notwithstanding paragraphs (3) and (4), amounts in the special account established under paragraph (1) may be expended for the purposes described in subparagraphs (B) through (E) of paragraph (3) after compensation has been paid by the Secretary to the Contract Holder as provided in paragraphs (1), (2), and (3) of section 4(b), but before the date on which the compensation required under section 4(b)(4) has been paid to the Contract Holder, if the amount agreed to under subparagraph (B) is held as a reserve for payment to the Contract Holder under section 4(b)(4).
Determination of reserve
In general
For purposes of calculating the reserve amount referred to in subparagraph (A), the value of the compensation provided for in section 4(b)(4) is considered to be the amount agreed to by the Secretary and the Contract Holder, subject to the conditions that—
the amount shall not be less than 15 percent of the sum of the value of the elements of compensation described in paragraphs (1) through (3) of section 4(b); and
an agreement as to the amount of the reserve in subclause (I) shall be made before the disbursement of any funds from the special account for any matter other than compensation to the Contract Holder.
Effect
Nothing in this paragraph reduces the amount of the compensation payable to the Contract Holder under section 4(b)(4).
Investment of special account
Any amounts deposited in the special account established under paragraph (1) shall—
earn interest in an amount determined by the Secretary of the Treasury on the basis of the current average market yield on outstanding marketable obligations of the United States with a maturity of 3 years; and
be expended according to the provisions of this section.
Procedures
Except with respect to the disbursement of funds as compensation to the Contract Holder for cancellation of the Contracts, the Secretary shall coordinate the use of the special account with the Secretary of Agriculture, the State of California, units of local government, and other interested persons, to ensure accountability and demonstrated results.
Acquisitions
In general
After the consultation process has been completed in accordance with subsection (b), the Secretary may acquire with the proceeds of the special account referred to in section 5(h) environmentally sensitive land and interests in environmentally sensitive land. Lands may not be acquired under this section without the consent of the owner thereof. Funds made available from the special account may be used for this purpose with any other funds made available under any other provision of law.
Consultation
Before initiating efforts to acquire land under this section, the Secretary or the Secretary of Agriculture shall consult with the State of California and with counties and cities affected by such acquisition, including appropriate planning and regulatory agencies, and with other interested persons, concerning the necessity of making the acquisition, the potential impacts on State and local government, and other appropriate aspects of the acquisition. Consultation under this subsection is in addition to any other consultation required by law.
Administration
On acceptance of title by the United States, land and interests in land acquired under this section that is within the boundaries of a unit of the National Forest System, National Park System, National Wildlife Refuge System, National Wild and Scenic Rivers System, National Trails System, National Wilderness Preservation System, or any other system established by Act of Congress, or any national conservation or national recreation area established by Act of Congress—
shall, notwithstanding any other provision of law, become part of the unit or area without further action by the Secretary or Secretary of Agriculture; and
shall be managed in accordance with all laws and regulations and land use plans applicable to the unit or area.
Determination of fair market value
The fair market value of land or an interest in land to be acquired by the Secretary or the Secretary of Agriculture under this section shall be determined under section 206 of the Federal Land Policy and Management Act of 1976 (16 U.S.C. 1716) and shall be consistent with other applicable requirements and standards.