HomeMy WebLinkAbout2010-01-12 - AGENDA REPORTS - FED LEGISLATION HR 4332 (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
January 12, 2010
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Michael P. Murphy
FEDERAL LEGISLATION: H.R. 4332
City Manager's Office
RECOMMENDED ACTION
City Council adopt "support" position for H.R. 4332 and transmit position statements to
Representative Howard P. "Buck" McKeon, Senator Barbara Boxer, Senator Dianne Feinstein,
Members of Congress, congressional staff, administration representatives and other individuals
and organizations, as appropriate.
BACKGROUND
On December 16, 2009, Representative Howard P. "Buck" McKeon introduced H.R. 4332, the
Soledad Canyon High Desert, California Public Lands Conservation and Management Act of
2009. This bill is a collaborative effort between the City of Santa Clarita, CEMEX, City of
Victorville, the County of San Bernardino and Representative McKeon to resolve the decade old
dispute between the City of Santa Clarita and CEMEX. .
The United States Bureau of Land Management (BLM) has issued two, ten-year consecutive
contracts to CEMEX, USA for purposes of mining 56,000,000 tons of sand and gravel in the
Soledad Canyon area, immediately east of the City of Santa Clarita. The proposed mining site
involves surface estate owned by the City of Santa Clarita, with the sub -surface mineral rights
owned by the Bureau of Land Management.
In January 2007, the City of Santa Clarita and CEMEX entered into a "truce" agreement with the
specific purpose of both entities focusing their efforts on seeking a mutually agreeable solution to
their dispute. The most recent renewal of the agreement covers the period of January 1, 2010,
through December 31, 2010. Over the past three years, the City and CEMEX have worked
ENMMI
closely with each other and Representative McKeon in developing federal legislation to resolve
the dispute. During the 110th Congress, Representative McKeon introduced H.R. 5887. While
that bill was not enacted by Congress prior the end of the session, discussions with Members of
Congress, committee staff, environmental organizations and other interested parties, yielded
valuable information, which enabled the parties, under Representative McKeon's leadership, to
revise some of H.R. 5887's provisions, resulting in.a stronger bill.
H.R. 4332 provides the Secretary of the Interior with a mechanism to cancel the two contracts
between BLM and CEMEX, while providing fair compensation to CEMEX in recognition of the
value of the contracts. Upon enactment of the bill, the Secretary of the Interior is directed to
cancel the two contracts between BLM and CEMEX. The bill further directs that the Secretary
withdraw the areas that were the subject of the contracts from mineral entry, meaning that the
lands may not be made available for mining. The bill prescribes the methodology for the
Secretary to value the contracts, as well as a dispute resolution process, should the Secretary of
the Interior and CEMEX be unable to reach a mutually agreeable value for the contracts.
Once CEMEX receives a final valuation of the contracts, the Secretary shall, within three years
after the enactment of the legislation, provide full compensation to CEMEX. The compensation
will come from a Special Account to be created in the Treasury. The sale of lands currently
owned by BLM in San Bernardino County, that have already been identified for disposal in the
2006 Bureau of Land Management's West Mojave Land Management Plan, will provide the
revenue stream for the Special Account. H.R. 4332 accelerates the time frame in which the lands
identified for disposal will be sold. The bill provides a pre-emptive right for purchase of the
lands made available for sale for either the City of Victorville or the County of San Bernardino,
depending upon the specific properties made available for sale. Once the government agencies
have made their land acquisitions, or chosen not to, the lands will be made available to any
purchaser .wishing to acquire them. Proceeds from the land sales_ will be placed into the Special
Account, from which the Secretary can then draw upon to compensate CEMEX.
Once CEMEX is fully compensated, remaining funds in the Special Account may be used to
acquire in -fill holdings in the Mojave National Preserve, acquire lands in the Conceptual Area
Protection Plan as identified in the East Santa Clarita Land Conservation Concept Plan and
Implementation Strategy, or acquire other environmentally sensitive lands in California. The bill
also provides protections against the proposed mine in Santa Clarita being exchanged for one in
San Bernardino County. H.R. 4332 directs that lands in San Bernardino County be sold as split
estate, with the surface estate being offered for sale, while the mineral rights are retained by the
Bureau of Land Management and then withdrawn from mineral entry, so that no future mining
may take place on those lands.
H.R. 4332 relies on established legislative precedents. Furthermore, it provides significant
environmental protections and opportunities. Finally, it resolves a long standing dispute between
the residents of Santa Clarita and CEMEX.
�1_
ALTERNATIVE ACTIONS
1. Adopt an "oppose" position on H.R. 4332
2. Adopt a "neutral" position on H.R. 4332
3. Other direction as determined by the City Council
FISCAL IMPACT
Adoption of the recommended action does not require any additional resources beyond those
already contained within the the adopted 2009/10 budget.
ATTACHMENTS
H.R. 4332
Map of Victorville Disposal Area - December 2009
3
AUTHENTICATED
IN -R
U.RNMENT
INFORMATION
CPO
I
]11Th CONGRESS
1sT SH. R. 4332
r�ssro.�
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.
IN TIIE IIOUSE OF REPRESENTATIVES
DECEMBER 16, 2009.
Mr. MCKLoN introduced the folloiaring bill; which was referred to the Com-
mittee on Natural Resources, and in addition to the Committee on Ways
and Means, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
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.
1 Be it enacted by the Senate and Flouse of Representa-
2 tives of'the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the "Soledad Canyon IIigh
5 Desert, California Public Lands Conservation and Man -
6 agement Act of 2009".
7 SEC. 2. FINDING AND PURPOSES.
8 (a) FINDINGS. The Congress finds the following:
y
1
(1) SOLEDAD CANYON AREA. -
2
(A) Two valid Federal contracts, privately
3
held, numbered CA -20139 and CA -22901, and
4
issued under the Materials Act of 1947, author -
5
ize extraction of approximately 56,000,000 tons
6
of sand and gravel from the Federal mineral es -
7
tate in lands located in Soledad Canyon adja-
8
cent to the City of Santa Clarita, California.
9
(B) It is in the best interest of the citizens
10
of California and the Federal Government to
11
cancel the Contracts and prohibit future mining
12
in the area that was subject to the two Federal
13
Contracts in the Soledad Canyon area of. Cali -
14
fornia.
15
(C) The holder of the Conti -acts should re -
16
ceive, as compensation for such cancellation, the
17
fair market value of the Contracts and all costs,
18
fees, and covered liabilities incurred by the Con -
19
tract Holder in good faith in its efforts to de -
20
velop the Contracts.
21
(D) A site-specific solution that is fair to
22
the Contract Holder and that seeks to protect
23
the environment and minimize impacts on local
24
transportation systems is in the best interest of
25
the Nation.
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3
1
(E) Considerable sums of money have been
2
expended by the Contract Holder and the City
J
3
of Santa Clarita on legal and other services in
4
trying to ensure their interests are protected
5
with respect to the Contracts CA -20139 and
6
CA -22901.
7
(F) Facilitation of an open -space corridor
8
between the two arms of the Angeles National
9
Forest that enhances environmental and wildlife
10
values is in the national interest.
.11
(2) VlC ORVILLE AREA.—
12
(A) The Bureau of Land Management has
13
extensive land ownership in small and large
14
parcels interspersed with or adjacent to private
15
land in and around Victorville, California, mak-
16
ing many of these parcels difficult to manage
17
and appropriate for disposal.
18
(B) Certain public lands near Victorville,
19
California, have been previously identified for
20
disposal as a result of the Bureau of Land
21
Management's West Mojave Land Management
22
Plan which was approved in 2006 with public
23
involvement and participation.
24
(C) In order to promote responsible and
25
orderly economic development, certain 'public
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1 lands should be sold at fair market value to the
2 City of. Vietorville or the County of San
3 Bernardino; both located in California.
4 (b) PURPOSES.—The purposes of this Act are the fol -
5 lowing:
6 (1) To provide to the Bureau of Land Manage -
7 ment the authority to cancel Contracts CA -20139
8 and CA -22901 and prohibit future mining in the
9 area that was subject to the two hederal Contracts
10 in the Soledad Canyon area of California.
11 (2) To provide a means for the Contract Holder
12 to recover for the cancellation of the Contracts, the
13 fair market value of 'the Contracts and the Contract
14 Holder's expenditures and covered liabilities incurred
15 pursuing the development of the Contracts.
16 (3) To provide the Bureau of Land Manage -
17 ment tools to verify expenses incurred by the Con -
18 tract Holder and provide relief.
19 (4) To provide timelines for the verification of
20 costs incurred by the Contract Holder and the deter -
21 mination of compensation and to provide a dispute
22 resolution process.
23 (5) To provide for the orderly disposal of eer-
24 Iain Federal lands in San Bernardino County, Cali-
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5
1 fornia, and to provide for the acquisition of environ -
2 mentally sensitive lands in the State of California.
3 SEC. 3. DEFINITIONS.
4 In this Act:
5 (1) CITY OF SANTA CLARITA.—The term "City
6 of Santa Clarita" means the City of Santa Clarita,
7 California.
8 (2) CITY OF VIC ORVILLE.—The term "City of
9 Victor -Ville" means the City of Victory ille, California.
10 (3) COUNTY OF SAN BERNARDINO.—The term
11 "County of San Bernardino" means the County of
12 San Bernardino, California.
13 (4) CONTRACTS.—The term "Contracts" means
14 the Bureau of. Land Management mineral contracts
15 numbered CA -20139 and CA -22901.
16 (5) CONTRACT I1OLDER.—The term "Contract
17 IIolder" means the private party to the Contracts
18 CA -20139 and CA -22901, and its successors that
19 hold legal interests in such Contracts.
20 (6) COVERED LIABILITIES.—The term "covered
21 liabilities" includes any court-ordered or court-ap-
22 proved payment, settlement, or other liability on the
23 part of the Contract IIolder for damages, costs,
24 compensation, or reimbursement to any third party
25 for agreements entered into by the Contract IIolder
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1 in good faith prior to January 1, 2008, in order to
2 exercise rights under the Contracts.
3 (7) ENVIRONMENTALLY SENSITIVE LAND.—The
4 term "environmentally sensitive land" means land or
5 an interest in land, the acquisition of which by the
6 United States would, in the judgment of the See -
7 rotary or the Secretary of Agriculture -
8 (A) promote the preservation of. natural,
9 scientific, aesthetic, historical, cultural, water -
10 shed, wildlife, and other values contributing to
11 public enjoyment and biological diversity;
12 (B) enhance recreational opportunities and
13 public access;
14 (C) provide the opportunity to achieve bet -
15 ter management of public land through eonsoli-
16 dation of Federal ownership; or
17 (D) otherwise serve the public interest.
18 (S) MATERIALS ACT OF 1947.—The term "Ma -
19 terials Act of 1947" means the Act of July 31, 1947
20 (chapter 406; 61 Stat. 651; 30 U.S.C. 601-604).
21 (9)' SECRETARY.—The term "Secretary" means
22 the Secretary of the Interior.
23 (10) SPECIAL ACCOUNT.—The term "special ac -
24 count" means the account in the Treasury of the
25 United States established under subsection 5(1).
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1 SEC. 4. CANCELLATION OF THE CONTRACTS; COMPENSA-
2 TION TO CONTRACT HOLDER.
3 (a) CONTRACT CANCELLATIONS.—The Secretary
4 shall cancel Bureau of Land Management mineral Con -
5 tracts CA -20139 and CA -22901 and �,vithdraw those
6 areas that were subject to the Contracts from further min -
7 oral entry under all mineral leasing and sales authorities
8 available to the Secretary, effective on the date of the en -
9 actment of this Act.
10 (b) COMPENSATION. As compensation for the can -
11 cellation of the Contracts, the Contract Holder shall re -
12 ceive the following amounts, whether determined by
13 agreed negotiated value or awarded by judgment of the
14 United States Court of Federal Claims in accordance with
15 the referral provisions of subsection (g)-
16 (1) the fair market value of the cancelled Con -
17 tracts, determined in accordance with subsection (e);
18 (2) the Contract IIolder's expenditures in trying
19 to bring the Contracts into commercial production,
20 as described in subsection (f);
21 (3) interest on the compensation provided for in
22 paragraphs (1), (2), and (4) from the date of the en -
23 actment of this Act until the last day of the month
24 preceding the date on which payment is made, coin -
25 pounded quarterly and computed at the rate applica-
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I ble to marketable obligations of the United States of
2 three year maturity for the period involved; and
3 (4) covered liabilities incurred in trying to bring
4 the Contracts into commercial production, as de -
5 scribed in subsection (f); provided, however, that
6 compensation for covered liabilities may be paid to
7 Contract Holder under this section for up to 15
8 years following the effective date of this Act.
9 (C MEANS of PAYMENT; ASSURANCES of PAY -
10 MENT.—
II (1) FULL FAITII AND CREDIT.—The full frith
12 and credit of the United States is hereby pledged to
13 the payment of the compensation provided for in
14 subsection (b).
15 (2) MEANS OF PAYMENT.—Compensation paid
16 to Contract Holder under this Act shall be paid by
17 means of disbursement of funds from the special ac -
18 count created in the Treasury of the United States
19 pursuant to section 5(i) except as otherwise provided
20 in paragraph (3),-
21
3);21 (3) PAYMENT BY I)E.i�nLINE.—Notwithstanding;
22 paragraph (2) or any other provision of this Act, in
23 the event that the Contract IIolder has not received
24 all of the compensation provided for in this section
25 on or before the third anniversary of the enactment
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1 of this Act, all compensation then remaining to be
2 paid to Contract Holder shall be paid from the per -
3 manent judgment appropriation established pur;su-
4 ant to section 1304 of title 31, United States Code.
5 (4) NEGOTIATED AGREEMENT.—Any negotiated
6 agreement between the Secretary and the Contract
7 Holder as to the amount of compensation described
8 in subsection (b) shall be deemed to be a com-
9 promise settlement of imminent litigation A ithin the
10 meaning of section 1304 of title 31, United States
11 Code, and section 2414 of title 28, United States
12 Code, and, notwithstanding anything to the contrary
13 contained in any other provision of law, including
14 section 251.7 of title 28, United States Code,any
15 final judgment by the United States Court of Fed -
16 era] Claims determining the fair market value of
17 Contracts CA -20139 and CA -22901 in accordance
18 with the referral provisions of subsection (g) shall be
19 deemed to be a final judgment and award within the
20 meaning of section 1304 of title 31, United States
21 Code.
22 (d) INCREASE IN ADJUSTED BASIS OF CONTRACT
23' UPON CANCELLATION.—For purposes of the Internal
24 Revenue Code of 1986, the adjusted basis of any Contract
25 to which subsection (a) applies shall be increased (imme-
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1 diately before the cancellation of such Contract under such
2 section) by the excess (if any) of -
3 (1) the fair market value of such Contract (de -
4 termined immediately before such cancellation), over
5 (2) the adjusted basis of such Contract (as de -
6 termined immediately before the application of this
7 section).
8 (e) DETERMINATION oro, FAIR MARKET VALUIE.—The
9 Secretary shall, within six months after the date of enact -
10 ment of this Act, determine by mineral appraisal, utilizing
11 the discounted cash flow method of appraisal (in accord -
12 anee with the appraisal guidelines for appraisals of large
13 quantities of mineral materials contained in section IV(E)
14 of BLAI Mineral Material Appraisal Handbook H-3630),
15 the fair market value of the Contracts and notify the Con -
16 tract Holder of those determinations. In determining the
17 fair market value of the Contracts, the Secretary shall as -
18 sume that -
19 (1) the Contract Holder has obtained all the
20 permits and entitlements necessary to mine,
21 produce, and sell sand and gravel under the Con -
22 tract; and
23 (2) mining operations under the Contract have
24 commenced at the time of the determination, with
25 maximum annual production volumes that—
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1 (A) are based on the projected supply and
2 demand outlook at the time of determination;
3 and
4 (B) reflect depletion of the reserves that
5 are subject to the Contract. within the effective
6 periods of the Contract.
7 (f) EXPENDITURES AND COVERED LIABILITIES DE -
8 SCRIBED.—The compensation provided for in subsection
9 (b)(2) is equal to the sum of the follo-,ving:
10 (1) All amounts paid to the United States by
11 Contract Holder Filth respect to the cancelled Con -
12 tract as bonus bids or other prepayments.
13 (2) Interest on amounts referred to in para. -
14 graph (1), from the date of payment of such
15 amounts to the United States, at a rate determined
16 by the Secretary.
17 (3) Amounts expended by the Contract Holder
18 in securing the Contract and trying; to bring it into
19 production, including
20 (A) all actual costs, including fees, associ-
21 ated with the engineering and environmental
22 studies and permitting proceedings that were
23 incurred in good faith in the Contract Holder's
24 efforts to exercise rights granted under the
25 Contract terms; and
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1 (B) all actual legal costs, including fees
2 and covered liabilities, incurred in good faith in
3 the Contract Holder's efforts to exercise rights
4 granted in the Contract including all fees and
5 costs associated with securing permits and enti-
6 tlements, litigation to compel, secure, or defend
7 permits or entitlements, and litigation in con -
8 nection with disputes relating to mineral and
9 surface estate rights to the property that is the
10 subject of the Contract.
11 (g) REFERRAL TO THE UNITED STATES COURT OF
12 FEDE13AL CLAIMS. -
13 (1) REFERRAL.—If Aq'thirr 12 months after the
14 date of enactment of this Act, the Secretary and the
15 Contract Holder do not reach agreed negotiated
16 value under subsection (b) regarding the fair market
17 value of Contracts CA -20139 and CA -22901, the
18 Contract IIolder shall have 3 months thereafter to
19 notify the Secretary that it disagrees with the Sec -
20 retary's determination of such value. In the event of
21 such notification, the Secretary shall refer the issue
22 of fair market value to the United States Court of
23 Federal Claims for determination.
24 (2) RESOLUTION BY COURT.—In any referral
25 under this subsection, the court shall determine de
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1 novo the fair market value of. Contracts CA -20139
2 and CA -22901:
3 (h) SUBMISSION OF EXPENSES INCURRED. -
4 (1) IN GENERAL.—To assist in the verification
5 of the amounts expended referred to in subsection
6 (f)(3), the Contract Holder shall submit to the See -
7 retary within 60 days after the date of enactment of
8 this Act an itemized list of such amounts, with
9 enough detail and supporting documentation so the
10 Secretary can determine that the expenses are asso-
11 ciated -,vith the Contracts.
12 (2) ARBITRATION.—The Secretary shall issue
13 the determination of the amounts expended referred
14 to in paragraph (f)(3) within 60 days after receipt
15 of the .itemized list required under paragraph (1). If
16 the Secretary disapproves such list, the Secretary
17 shall, upon the request of the. Contract Holder, de -
18 termine such amounts through arbitration in accord -
19 ance with subchapter N of chapter 5 of title 5,
20 United States Code.
21 (i) ASSIGNMENT.—The Contract Holder may at any
22 time assign its rights or entitlement under this Act to all
23 or any part of the compensation provided for in para -
24 graphs (1) and (2) of subsection (b).
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1 SEC. 5. SALE OF LANDS NEAR. VICTORVILLE, CALIFORNIA.
2 (a) IST GENERAL.—Not,"rithstanding• the land use
3 planning requirements of sections 202 and 203 and the
4 other provisions of section 203 of the Federal Land Policy
5 and Management Act of 1976 (43 U.S.C. 1712 and 1713),
6 and subject to subsections (b), (c), and (d), the Secretary
7 shall offer for sale by competitive bidding, for a. minimum
8 price not less than fair market value as determined by ap-
9 praisal by the Secretary under subsection (h), all right,
10 title and interest of the United States in and to those
11 lands identified for disposition on the map entitled
12 "Victorville disposal area, California" dated December
13 2009. The Secretary shall keep such map on file and avail -
14 able for public inspection in the offices of the Director of
15 the Bureau of Land Management and in the district office
16 of the Bureau located in Barstow, California.
17 (b) PRE-EMPTr« DIGHT OF THE CITY OF
18 VICTORVILLE To PURCHASE AREA A .LANDS.—Prior to
19 any sale of any of the right, title, and interest of the
20 United States as provided in subsection (a), the Secretary
21 shall provide the City of Victorville, California, urith the
22 primary pre-emptive right to purchase some or all of such
23 right, title, and interest in and to the lands identified as
24 Area A on the map referred to in subsection (a). The
25 terms of such pre-emptive right shall afford the City of
26 Victorville a, period of 30 days prior to any phased sale
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1 to be conducted under subsection (g) in which the City
2 may purchase some or all of the right, title, and interest
3 of the United States, as provided in subsection (a), then
4 to be offered for sale at its fair market value as deter -
5 mined by appraisal by the Secretary under subsection (h),
6 by paying to the Secretary in immediately available funds
7 the entire purchase price of the right, title, and interest
8 so purchased by the City. Such period shall commence on
9 the 60th day prior to any phased sale to be conducted
10 under subsection (g), and shall -end on the 31st day prior
11 to any such sale. Failure by the City of Victorville to pur-
12 chase and pay for such right, title, and interest, and to
13 comply Nvith such other terms and conditions of purchase
14 as the Secretary shall prescribe, within such period shall
15 terminate the pre-emptive right of the City of Vietorville
16 with respect to the right, title, and interest then offered,
17 but shall not terminate such pre-emptive right Nvith re -
18 spect to subsequent phased offers of the remaining right,
19 title, and interest identified on the map referred to in sub -
20 section (a).
21 (c) . PRE-EMPTivE RIGHTS OF TITh: COUNTY OF SAN
22 BERNARDINO To PURCHASE AREA A LANDS ,vm) AREA
23 B LANDS.—Prior to any sale of any of the right, title,
24 and interest of the United States as provided in subsection
25 (a), and after providing the City of Victorville the right
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1 to purchase under subsection (b), the Secretary shall pro -
2 vide the County of San Bernardino with the secondary
3 pre-emptive right to purchase some or all of such right,
4 title, and interest in and to the lands identified as Area
5 A on the map referred to in subsection (a), and the exclu-
6 sive preemptive right to purchase all such right, title, and
7 interest in and to the lands identified as Area B on the
8 map referred to in subsection (a). The terms of such pre -
9 emptive rights shall afford the County of San Bernardino
10 rights -,with respect to such lands identified as Area A and
11 lands identified as Area B that are substantially similar
12 to the pre-emptive right afforded under subsection (b).
13 (d) RIGHT or LOCAL LAINID USE AUTIIORITY To
14 PURCHASE AREA C LANDS.—Prior to any sale of any of
15 the right, title, and interest of the United States as pro -
16 vided in subsection (a), the Secretary shall provide the
17 local land use authority with respect to the lands identified
18 as Area C on the map referred to in subsection (a), as
19 determined under the statutes of the State of California,
20 the exclusive pre-emptive right to purchase some or all of
21 such right, title, and interest in and to� such lands. The
22 terms of such pre-emptive right shall afford the local land
23 use authority rights with respect to such lands identified
24 as Area C that are substantially similar to the pre-emptive
25 rights afforded under subsections (b) and (c).
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1 (e) WITHDRAWAL AND RESERVATION. -Subject to
2 valid existing rights, the minerals in all Federal lands
3 identified in subsection (a) for disposal are withdrawn
4 from settlement, sale, location, or entry under the public
5 land laws, including the mining laws codified at chapter
6 2 of title 30, United States Code, Froin leasing under the
7 mineral leasing laws including those codified at chapter
8 3A of title 30, United States Code, and disposals under
9 the Materials Act of 1947 (30 U.S.C. 601 et seq.). Any
10 sale or other disposal of such lands shall reserve to the
11 United States all minerals in such lands, together with
12 the right to prospect for, mine, and remove such minerals.
13 (f) CONSULTATION. -Before initiating efforts to dis-
14 pose of land under this section, the Secretary shall consult
15 with the City of Victorville, the County of San Bernardino,
16 and surface owners in the jurisdiction where the lands are
17 located, on the potential impact and other appropriate as -
18 pects of the disposal. Consultation under this subsection
19 is in addition to any other consultation required by law.
20 (g) PHASING OF SALES. -
21 (1) AREA A LANDS.—The Secretary shall, not
22 later than 12 months following the enactment of this
23 Act, offer for sale under subsection (a), subject to
24 the primary pre-emptive right of the City of
25 Victorville under subsection (b) and the secondary
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1 pre-emptive right of the County of San Bernardino
2 under subsection (c), those lands depicted as Area A
3 on the map referred to in subsection (a).
4 (2) AREA B LANDS.—The Secretary shall, not
5 later than 24 months following the enactment of this
6 Act, offer for sale under subsection (a), subject to
7 the exclusive pre-emptive right of the County of San
8 Bernardino, those lands depicted as Area B on the
9 map referred to in subsection (a).
10 (3) AREA C LIVNDs.—The Secretary shall, not
11 later than 24 months follo-" ing the enactment of this
12 Act, offer for sale under subsection (a), sul jeet to
13 the pre-emptive right of the local land use authority
14 under subsection (d), those lands depicted as Area
15 C on the map referred to in subsection (a).
16 (4) REAWNI`TG LANDS.—The Secretary, after
17 consultations with the City of Victorville, may within
18 20 years following the enactment of this Act, offer
19 for sale under subsection (a) all the remaining lands
20 identified for disposal in West Mojave Land Man -
21 agement Plan of 2006, except those lands depicted
22 as "Area of Critical Environmental Concern" in the
23 map referred to in subsection (a).
24 (5) COMPLIAlNCE WITH ENVIRONIMENTAL RE -
25 QUIRE �Ir��TTs.—Land disposal activities of the See -
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1 rotary under this subsection shall be consistent with
2 all applicable environmental requirements.
3 (h) DETERMINATION OF FAIR AIARKET VALUE. -
4 The fair market value of the lands referred to in sub -
5 section (g)(1.) shall be based on an appraisal of the fair
6 market value thereof as of the date of the enactment of
7 this Act which shall be completed not later than 6 months
8 after the date of the enactment of this Act. The fair mar -
9 ket value of the lands referred to in subsection (g)(2) shall
10 be based on an appraisal of the fair market value thereof
11 as of that date that is approximately 6 months prior to
12 the related date of. offer as set forth in subsection (g)(2)
13 and shall be completed not later than 6 months prior to
14 the related offer. The fair market value of the lands de -
15 scribed in subsection (g)(3) shall be based on an appraisal
16 of each parcel offered for sale as of the date of such offer
17 and such appraisal shall be completed not less than 6
18 months prior to the related offer.
19 (i) SPECIAL ACCOUNT.
20 (1) DEPOSIT; AVAILABILITY.—The gross pro -
21 ceeds of sales of land under subsection (a) shall be
22 deposited in a special account in the Treasury for
23 use under paragraph (2). Amounts in the special ac -
24 count shall be available to the Secretary for purposes
25 of subparagraphs (A) through (E) of paragraph (2)
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1 and to the Secretary of Agriculture for purposes of
2 subparagraphs (B) and (C) of paragraph (2) without
3 further appropriation and shall remain available
4 until disbursed.
5 (2) DISPOSITION OF PROCEEDS.—Proceeds
6 from sales of lands described in subsection (a.) shall
7 be disbursed by the Secretary in the following order
8 of priority:
9 (A) As compensation to the Contract Hold -
10 er under section 4(b) for cancellation of the
11 Contracts by the Secretary.
12 (B) For the acquisition of private in hold -
13 ings and land interests in the Mojave National
14 Preserve.
15 (C) For the acquisition of holdings and
16 land interests from willing sellers contained
17 within the Conceptual Area Protection Plan as
18 identified in the East Santa Clarita Land Con -
19 servation Concept Plan and Implementation
20 Strategy.
21 (D) For the acquisition of environmentally
22 sensitive land in the State of California in ac -
23 cordance with section 6.
24 (E) For the reimbursement of costs in -
25 Burred by the California State Office and the
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1 Barstow Field Office of the Bureau of Land
2 Management for preparing for the conveyance
3 of land described in subsection (a) including
4 surveys and appraisals, compliance with the Na -
5 tional Environmental Policy Act of 1969 (42
6 U.S.C. 4321), and, except as otherwise provided
7 in subsection (a), compliance with sections 201
8 and 203 of the Federal Land Policy and Man -
9 agement Act of 1976 (43 U.S.C. 1711., 1712).
10 (3) LIMITATION ON USI. OTHER THAN FOR
11 COMPENSATION.—No funds may be expended under
12 this subsection for purposes of subparagraphs (B)
13 through (E) of paragraph (2) until the date all com-
14 pensation has been paid to the Contract IIolder for
15 cancellation of the Contracts by the Secretary.
16 (4) SPECIAL ACCOUNT RESERVE FOR CONTRACT
17 HOLDER. -
18 (A) LIMITATION ON DISBURSEMENTS. -
19 Notwithstanding paragraphs (2) and (3), funds
20 in the special account referred to in 'paragraph
21 (1) may be expended for purposes set forth in
22 subparagraphs (B) through (E) of paragraph
23 (2) after compensation has been paid to Con -
24 tract IIolder as provided in paragraphs (1), (2),
25 and (3) of section 4(b), but prior to the date
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1 compensation required finder section 4(b)(4)
2 has been paid to Contract Holder, if the agreed -
3 upon amount referred to in subparagraph (B)
4 of this paragraph is held as a reserve for pay -
5 ment to Contract Holder under section 4(b)(4).
6 (B) DETERMINATION OF RESERNTP.—Por
7 purposes of calculating the reserve provided for
8 in this paragraph, the value of the compensa-
9 tion provided for in section 4(b) (4) is deemed to
10 be such amount as is agreed upon by the Sec -
11 retary and the Contract IIolder: Provided, That
12 such agreed-upon amount shall in no event be
13 less than 15 percent of the sum of the value of
14 the elements of compensation described in para -
15 graphs (1) through (3) of section 4(b): Provided
16 further, That such agreement shall be made
17 prior to the disbursement of any funds from the
18 special account for any matter other than com-
0
19 pensation ' to the Contract IIolder. Nothing in
20 this paragraph shall be construed to reduce the
21 amount of the compensation payable to the
22 Contract IIolder pursuant to section 4(b)(4).
23 (5) INVESTMENT OF SPECIAL ACCOUNT.—Any
24 amounts deposited in the special account shall earn
25 interest in an amount determined by the Secretary
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1 of the Treasury on the basis of the current average
2 market yield on outstanding marketable obligations
3 of. the United States with a maturity of three years
4 and shall be expended according to the provisions of
5 this section.
6 (6) PROCEDMIES.—Except
with respect
to the
7 disbursement of funds
as compensation to the
Con -
8 tract Holder for cancellation of the Contracts, the
9 Secretary shall coordinate the use of the special ac -
10 count with the Secretary of Agriculture, the State of
11. California, local governments, and. other interested
12 persons, to ensure accountability and demonstrated
13 results.
14 SEC. 6. ACQUISITIONS.
15 (a) IST GENERAL.—After the consultation process has
16 been completed in accordance with subsection (b), the See -
17 rotary may acquire with the proceeds of the special ac -
18 count referred to in section 5(a) envIronmentally sensitive
19 land and interests in environmentally sensitive land.
20 Lands may not be acquired under this' section ivithout the
21 consent of the owner thereof. Funds made available from
22 the special account may be used for this purpose with any
23 other funds made available under any other provision of
24 law.
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1 (b) CONSULTATION. -Before initiating efforts to ac -
2 quire land under this section, the Secretary or the Sec -
3 retary of Agriculture shall consult with the State of Cali -
4 fornia and with counties and cities affected by such acqui-
5 sition, including appropriate planning and regulatory
6 agencies, and with other interested persons, concerning
7 the necessity of making the acquisition, the potential im-
8 pacts on State and local government, and other appro-
9 priate aspects of the acquisition. Consultation under this
10 subsection is in addition to any other consultation required
11 by law.
12. (c) ADMINISTRATION.—On acceptance of title by the
13 United States, land and interests in land acquired under
14 this section that is within the boundaries of a unit of the
15 National Forest System, National Park System, National
16 Wildlife Refuge System, National Wild and Scenic Rivers
17 System, Ndtional Trails System, National Wilderness
18 Preservation System, or any other system established by
19 Act of Congress, or any national conservation or national
20 recreation area, established by Act of Congress -
21 (1) shall, notwithstanding any other provision
22 of law, become part of the unit or area without fur -
23 then action by the Secretary or Secretary of. Agri -
24 culture; and
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1 (2) shall be managed in accordance with all
2 laws and regulations and land use plans applicable
3 to the unit or area.
4 (d)
DETERMINATION OF
FAIR MARKET
VALUE. -
5 The fair
market value of land
or an interest
in land to
6 be acquired by the Secretary or the Secretary of Ag7•i-
7 culture under this section shall be determined under see -
8 tion 206 of the Federal Land Policy and Management Act
9 of 1976 (16 U.S.C. 1716) and shall be consistent with
10 other applicable requirements and standards.
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