HomeMy WebLinkAbout2011-05-10 - AGENDA REPORTS - FED LEGISLATION S 759 (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item: 4/
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
May 10, 2011
FEDERAL LEGISLATION: S. 759
City Manager's Office
RECOMMENDED ACTION
Michael P. Murphy /;
The City Council support S. 759, as recommended by the City Council Legislative Committee,
and transmit position statements to Senator Barbara Boxer, Senator Dianne Feinstein,
Representative Howard P. "Buck" McKeon, Members of Congress, congressional staff,
Department of Interior, administration representatives, and other individuals and organizations,
as appropriate.
BACKGROUND
On April 7, 2011, United States Senator Barbara Boxer (D -CA) introduced S. 759, the Soledad
Canyon High Desert, California Public Lands Conservation and Management Act of 2011. This
bill has resulted from a collaborative effort between the City of Santa Clarita, CEMEX, City of
Victorville, County of San Bernardino and Senator Boxer to resolve the 12 -year-old dispute
between the City of Santa Clarita and CEMEX regarding sand and gravel mining in Soledad
Canyon.
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 net 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 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. Over the past four years, the City and CEMEX have worked cooperatively with
each other in developing legislation to resolve the dispute. During the past few months, both
parties have been working closely with Senator Boxer's staff in developing bill language and a
strategy designed to secure passage of the legislation during the 112th Congress.
This session's S. 759 is similar to Senator Boxer's prior legislation, S. 3057, which the Senator
introduced during the 111th session of Congress. The bill provides the Secretary of Interior with
a mechanism to cancel the two contracts between BLM and CEMEX in Soledad Canyon, while
providing fair compensation to CEMEX, in recognition of the value of the contracts. Upon
enactment of the bill, the Secretary of Interior is directed to immediately 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. S. 759 prescribes the methodology for the Secretary to value the contracts,
as well as a dispute resolution process, should the Secretary of 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 through
the 2006 Bureau of Land Management's West Mojave Land Management Plan, will provide the
revenue stream for the Special Account.
S. 759 accelerates the time frame in which lands already identified for disposal shall be sold.
Under existing law, the time frame for sale of the parcels identified for disposal is at the
discretion of the Secretary of Interior. The bill prescribes specific timetables for the sale of
certain parcels.. In a minor change from earlier versions of the bill, S. 759 outlines a pre-emptive
right of purchase for lands made available for sale to the land use approval jurisdiction in which
the parcels are located. The City of Victorville or County of San Bernardino shall have first right
to purchase those lands within its jurisdiction made available for sale by the Secretary of Interior.
Once the government agencies have made their land purchases, or chosen not to, the lands will
be made available to any purchaser wishing to acquire them at fair market value. Proceeds from
the land sales will be placed into the Special Account, from which the Secretary can then draw
upon to compensate CEMEX.
After CEMEX is fully compensated, remaining funds in the Special Account may be used to
acquire infill 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. S. 759 directs that the 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.
S. 759 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.. In the absence of the legislation being enacted
during the 112th session of Congress, it is likely that CEMEX will move forward with securing
the remaining state and regional permits necessary to enable the mine to become operative.
The City Council Legislative Committee met on April 18, 2011, and recommends that the full
City Council support S. 759.
ALTERNATIVE ACTIONS
1. Adopt an "oppose" position on S. 759
2. Adopt a "neutral" position on S. 759
3. Other direction as determined by the City Council
FISCAL IMPACT
Adoption of the recommended action does not require any additional resources beyond those
contained within the adopted City budget.
ATTACHMENTS
5.759
Map of Victorville Disposal Area - March 2011
J
AUTHENTI .....2"'
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U.S. GOVERNMENT
INFORMnTION
cro
II
112TH CONGRESS S*759
IST SESSION
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 THE SENATE OF THE UNITED STATES
APRIL 7 (legislative (lay, APRIL 5), 2011
Mrs. BONER 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.
1 Be it enacted by the Senate and I-Iouse of Representa-
2 tines of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the "Soledad Canyon High
5 Desert, California Public Lands Conservation and Man -
6 agement Act of 2011".
7 SEC. 2. FINDING AND PURPOSES.
8 (a) FINDINGS.—The Congress finds the following:
9 (1) SOLEDAD CANYON ARE,
I
(A) Two valid Federal contracts, privately
2
held, numbered CA -20139 and. CA -22901, and
3
issued under the Materials Act of 1947, author -
4
ize extraction of approximately 56,000,000 tons
5
of sand and gravel from the Federal mineral es -
6
tate in lands located in Soledad Canyon adja-
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cent to the City of Santa Clarita, California.
8
(B) It is in the best interest of the citizens
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of California and the Federal Government to
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cancel the Contracts and prohibit future mining
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in the area that was subject to the two Federal
12
Contracts in the Soledad Canyon area, of Cali -
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forma.
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(C) The holder of the Contracts should re -
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ceive, as compensation for such cancellation, the
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fair market value of the Contracts and all costs,
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fees, and covered liabilities incurred by the Con -
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tract Holder in good faith in its efforts to de -
19
velop the Contracts.
20
(D) A site-specific solution that is fair to
21
the Contract Holder and that seeks to protect
22
the environment and minimize impacts on local
23
transportation systems is in the best interest of
24
the Nation.
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(E) Considerable sums of money have been
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expended by the Contract Bolder and the City
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of Santa Clarita on legal and other services in
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trying to ensure their interests are protected
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with respect to the Contracts CA -20139 and
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CA -22901.
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(F) Facilitation of an open -space corridor
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between the two arms of the Angeles National
9
Forest that enhances environmental and wildlife
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values is in the national interest.
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(2) VICTORVILLE AREA. -
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(A) The Bureau of' Land Management has
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extensive land ownership in small and large
14
parcels interspersed with or adjacent to private
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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 Victor -611e,
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California, have been previously identified for
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disposal as a result of the Bureau of Land
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Management's West Mojave Land Management
22
Plan which was approved in 2006 with public
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involvement and participation.
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(C) In order to promote responsible and
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orderly economic development, certain public
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1 lands should be sold at fair market value to the
2 City of Victorville 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 Federal Contracts
10 in the Soledad Canyon area of California.
11 (2) To provide a means for the Contract IIolder
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 IIolder and provide relief.
19 (4) To provide timelines for the verification of
20 costs incurred by the Contract IIolder and the deter-
21 mination of compensation and to provide a, dispute
22 resolution process.
23 (5) To provide for the orderly disposal of cer-
24 tain Federal lands in San Bernardino County, Ca,li-
•S 759 IS
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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 VTCTOR.VILLE.—The term "City of
9 Victorville" means the City of Victorville, 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 HOLDER.—The term "Contract
17 Holder" 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 Holder for damages, costs,
24 compensation, or reimbursement to any third party
25 for agreements entered into by the Contract Holder
-S 759 IS
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I in good faith prior to January 1, 2008, in order to
2 exercise rights under the Contracts.
3 (7) ENVIRONMENTALLY SENSITWE 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 Sec -
7 retary 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 consoli-
16 dation of Federal ownership; or
17 (D) otherwise serve the public interest.
18 (8) MATERIALS ACT of 1.947.—The term "Ma -
19 terials Act of 1947" means the Act of July 31, 1947
20 (chapter 406; 61 Stat. 6S1; 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 section 5(h).
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1 SEC. 4. CANCELLATION OF THE CONTRACTS; COMPENSA-
2 TION TO CONTRACT HOLDER.
3 (a) CONTRACT CANCELLATIONS.—'rhe Secretary
4 shall cancel Bureau of Land Management mineral Con -
5 tracts CA -20139 and CA -22901 and withdraw those
6 areas that were subject to the Contracts from further min -
7 eral 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 Holder's exTenditures 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, com-
25 pounded quarterly and computed at the rate applica-
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1 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-
s 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.-
11 (1) FULL FAITH AND CREDIT.—The full faith
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 Treasure of the United States
19 pursuant to section 5(h) except as otheiiNrise pro -
20 vided in paragraph (3) .
21 (3) PAYMENT- BY DEADLINE.—Notwithstanding
22 paragraph (2) or any other provision of this Act, in
23 the event that the Contract Holder 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 pursu-
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 within 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 2517 of title 28, United States Code, any
15 final judgment by the United States Court of Fed -
16 eral 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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Iff
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-
b termined immediately before the application of this
7 section).
8 (e) DETERRMINATION of FAIR 1VLARI ET VALUE.—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 ance with the appraisal guidelines for appraisals of large
13 quantities of mineral materials contained in section IV(E)
14 of BLM 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 following:
10 (1) All amounts paid to the United States by
11 Contract Holder with 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 tlements7 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 STAPES COURT OF
12 FEDERAL CLAIIIIS.-
13 (1) REFERRAL.—If within 12 months after the
14 date of enactment of this Act, the Secretar.NT 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 Holder 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 Secretar�T 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 E_X'ENSES-INCURRED.-
4 (1) IN GENERAIL.—To assist in the verification
5 of the amounts expended referred to in subsection
6 (f)(3), the Contract Holder shall submit to the Sec -
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 with 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 IIolder, 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 LAND NEAR VICTORVILLE, CALIFORNIA.
2 (a) IN GENERAL.—Notwithstanding sections 202 and
3 203 of the Federal Land Policy and Management Act of
4 1976 (43 U.S.C. 17127 1713) and subject to subsections
5 (c), (d), and (e), the Secretary shall offer for sale by com-
6 petitive bidding and for a minimum price of not less than
7 fair market value, as determined by an appraisal con -
8 ducted under subsection (g), all right, title, and interest
9 of the United States in and to the land identified for dis-
10 position on the map entitled "Victorville disposal area,
11 California" and dated March 2011.
12 (b) AVAILABILITY of MAP.—The Secretary shall
13 keep the map described in subsection (a) on file and avail -
14 able for public inspection in -
15 (1) the office of the Director of the Bureau of
16 Land Management; and
17 (2) the district office of the Bureau of Land
18 Management located in Barstow, California.
19 (c) RIGHT OF LOCAL LAND USE AUTHORITY To
20 PURCHASE CERTAIN LAND. -
21 (1) IN GENERAL.—Before a sale of land under
22 subsection (a), the Secretary shall provide the appli-
23 cable local land use authority an exclusive preemp-
24 tive right, as determined under State law, to pur-
25 chase any right, title, or interest of the United
26 States in and to any portion of the parcels of land
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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.
(2) TIDIING.—A preemptive right under para-
graph (1) shall be in effect for a period of 30 days
before any phased sale of the land described in para-
graph (1) is to be conducted under subsection (f).
(3) 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 mar-
ket value, as determined by an appraisal conducted
by the Secretary.
(4) EXERCISING RIGHT.—The preemptive right
under paragraph (1) shall be exercised on the imme-
diate payment by the local land use authority of the
entire purchase price of the applicable parcel of
land.
(5) 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 pe-
riod described in paragraph (2) and to comply with
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1 any other terms and conditions as the Secretary may
2 require -
3 (A) shall terminate the preemptive right of
4 the local land use authority with respect to the
5 right, title, and interest offered for sale during
6 that phase; but
7 (B) shall not terminate the preemptive
8 right of the local land use authority with re -
9 spect to subsequent phased offers of the re -
10 maining right, title, and interest in and to the
11 land described in paragraph (1) .
12 (d) WITHDRAWAL AND RESERVATION. -
13 (1) WITHDRAWAL.—Subject to valid existing
14 rights, the land described in subsection (a) is with -
15 drawn from -
16 (A) entry, appropriation, or disposal under
17 the public land laws;
18 (B) location, entry, and patent under the
19 mining laws; and
20 (C) operation of the mineral leasing, min -
21 eral materials, and geothermal leasing laws.
22 (2) RESERVATION.—In any sale or other dis-
23 posal of land under this section, there shall be re -
24 served by the United States the right of the United
•S 759 IS
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1 States to prospect for, mine, and remove minerals
2 from the conveyed land.
3 (e) CONSULTATION.—In addition to any consultation
4 otherwise required by law, before initiating efforts to dis-
5 pose of land under this section, the Secretary shall consult
6 with the City of Victorville, the County of San Bernardino,
7 and surface owners in the jurisdiction in which the land
8 is located regarding the potential impact of the disposal
9 and other appropriate aspects of the disposal.
10 (f) PHASING OF SALES. -
11 (1) AREA A LAND.—Not later than 1 year after
12 the date of enactment of this Act and subject to the
13 preemptive right under subsection (c), the Secretary
14 shall offer for sale under subsection (a) the land de -
15 picted as "Area A" on the map described in sub -
16 section (a).
17 (2) AREA B LAND.—Not later than 2 years
18 after the date of enactment of this Act and subject
19 to the preemptive right under subsection (c), the
20 Secretary shall offer for sale Colder subsection (a)
21 the land depicted as "Area B" on the map described
22 in subsection (a).
23 (3) RuDALUNING LAND.—After consulting with
24 the City of Victorville and the County of San
25 Bernardino, the Secretary may, not later than 20
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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).
(4) COMPLIANCE WITII ENVIRONMENTAL RE-
QUIREMENTS.—Land disposal activities. of the Sec-
retary under this subsection shall be consistent Nvith
all applicable environmental laws (including regula-
tions).
(g) DETERMINATION OF FAIR MARKT VALUE. -
(1) 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 com-
pleted not later than 180 days after the date of en-
actment of this Act.
(2) 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 ac-
cordance with subsection (f)(2), to be completed not
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later than 180 days before the date on which the
land is to be offered for sale.
(h) SPECIAL ACCOUNT. -
(1) 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).
(2) AvAILABILITY . Amounts in the special ac-
count established under paragraph (1) shall be avail-
able, without appropriation and until expended—
(A) to the Secretary for purposes of sub-
paragraphs (A) through (E) of paragraph (3),-
and
3);and
(B) to the Secretary of Agriculture for
purposes of subparagraphs (B) and (C) of para-
graph (3).
(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:
(A) As compensation to the Contract Hold-
er under section 4(b) for cancellation of the
Contracts by the Secretary.
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(B) For the acquisition of private
inholdings and land interests in the Mgjave Na-
tional Preserve.
(C) 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 Con-
servation Concept Plan and Implementation
Strategy.
(D) For the acquisition of environmentally
sensitive land in the State of California in ac-
cordance with section 6.
(E) For the reimbursement of costs in-
curred by the California State Office and the
Barstow Field Office of the Bureau of Land
Management for preparing for the conveyance
of land described Jin subsection (a), including
I
the costs of—
(i) surveys and appraisals;
(ii) complying with the National Envi-
ronmental Policy Act of 1969 (42 U.S.C.
4321); and
(iii) except as otherwise provided in
subsection (a), complying with sections 202
and 203 of the Federal Land Policy and
21
1 Management Act of 1976 (43 U.S.C. 1712,
2 1713).
3 (4) LIMITATION ON USE OTHER THAN FOR
4 COMPENSATION.—No funds may be expended under
5 this subsection for purposes of subparagraphs (B)
6 through (E) of paragraph (3) until the date on
7 which the Secretary has paid to the Contract Holder
8 all compensation provided for under section 4(b) for
9 cancellation of the Contracts by the Secretary.
10 (5) SPECIAL ACCOUNT RESERVE FOR CONTRACT
11 HOLDER. -
12 (A) LIMITATION ON DISBURSEIIENTS.-
13 Notwithstanding paragraphs (3) and (4),
14 amounts in the special account established
15 under paragraph (1) may be expended for the
16 purposes described in subparagraphs (B)
17 through (E) of paragraph (3) after compensa-
18 tion has been paid by the Secretary to the Con -
19 tract Holder as- provided in paragraphs (1), (2),
20 and (3) of section 4(b), but before the date on
21 which the compensation required under section
22 4(b) (4) has been paid to the Contract Holder,
23 if the amount agreed to under subparagraph
24 (B) is held as a reserve for payment to the Con -
25 tract Holder under section 4(b)(4).
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1
(I3) DETERMINATION OF RESERVE. -
2
(i) IN GENERAL.—Por purposes of
3
calculating the reserve amount referred to
4
in subparagraph (A), the value of the com-
5
pensation provided for in section 4(b)(4) is
6
considered to be the amount agreed to by
7
the Secretary and the Contract Holder,
8
subject to the conditions that -
9
(I) the amount shall not be less
10
than 15 percent of the sung of the
11
value of the elements of compensation
12
described in paragraphs (1) through
13
(3) of section 4(b); and
14
-(II) an agreement as to the
15
amount of the reserve in subclause (I)
16
shall be made before the disbursement
17
of any funds from the special account
18
for any matter other than compensa-
19
tion to the Contract Holder.
20
(ii) EFFECT.—Nothing in this para,
21
graph reduces the amount of the com-
22
pensation payable to the Contract Holder
23
under section 4(b)(4).
•S 7591S
23
1 (6) INVESTMENT or, SPECIAL ACCOUNT.—Any
2 amounts deposited in the special account established
3 under paragraph (1) shall -
4 (A) earn interest in an amount determined
5 by the Secretary of the Treasury on the basis
6 of the current average market yield on out -
7 standing marketable obligations of the United
8 States with a maturity of 3 years; and
9 (B) be expended according to the provi-
10 Bions of this section.
11 (7) PROCEDURES. -Except with respect to the
12 disbursement of funds as compensation to the Con -
13 tract Holder for cancellation of the Contracts, the
14 Secretary shall coordinate the use of the special ac -
15 count with the Secretary of Agriculture, the State of
16 California, units of local government, and other in -
17 terested persons, to ensure accountability and dem-
18 onstrated results.
19 SEC. 6. ACQUISITIONS.
20 (a) IN GENERAL.—After the consultation process has
21 been completed in accordance with subsection (b), the Sec -
22 retary may acquire with the proceeds of the special ac -
23 count referred to in section 5(h) environmentally sensitive
24 land and interests in environmentally sensitive land.
25 Lands may not be acquired under this section without the
•S 759 IS
24
1 consent of the owner thereof. Funds made available from
2 the special account may be used for this purpose with any
3 other funds made available under any other provision of
4 law.
5 (b) CONSULTATION.—Before initiating efforts to ac -
6 quire land under this section, the Secretary or the Sec -
7 retary of Agriculture shall consult with the State of Cali -
8 forma and with counties and cities affected by such ' acqui-
9 sition, including appropriate planning and regulatory
10 agencies, and with other interested persons, concerning
11 the necessity of making the acquisition, the potential im-
12 pacts on State and local government, and other appro-
13 priate. aspects of the acquisition. Consultation under this
14 subsection is in addition to any other consultation required
15 by law.
16 (c) AmUINTSTR.ATTON.—On acceptance of title by the
17 United States, land and interests in land acquired under
18 this section that is within the boundaries of a unit of the
19 National Forest System, National Park System, National
20 Wildlife Refuge System, National Wild and Scenic Rivers
21 System, National Trails System, National Wilderness
22 Preservation System, or any other system established by
23 Act of Congress, or any national conservation or national
24 recreation area established by Act of Congress—
•S 759 IS
25
1 (1) shall, notwithstanding any other provision
2 of law, become part of the unit or area without fur -
3 then action by the Secretary or Secretary of Agri -
4 culture; and
5 (2) shall be managed in accordance with all
6 laws and regulations and land use plans applicable
7 to the unit or area.
S (d) DETERMINATION of FAIR MARKET VALUE. -
9 The fair market value of land or an interest in land to
10 be acquired by the Secretary or the Secretary of Agri -
11 culture under this section shall be determined under sec -
12 tion 206 of the Federal Land Policy and Management Act
13 of 1976 (16 U.S.C. 1716) and shall be consistent with
14 other applicable requirements and standards.
N
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