[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5742 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5742
To provide to the Secretary of the Interior a mechanism to cancel
contracts for the sale of materials CA-20139 and CA-22901, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 19, 2014
Mr. McKeon introduced the following bill; which was referred to the
Committee on Natural Resources
_______________________________________________________________________
A BILL
To provide to the Secretary of the Interior a mechanism to cancel
contracts for the sale of materials CA-20139 and CA-22901, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Soledad Canyon Settlement Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) City of santa clarita.--The term ``City of Santa
Clarita'' means the City of Santa Clarita, California.
(2) City of victorville.--The term ``City of Victorville''
means the City of Victorville, California.
(3) Contracts.--The term ``contracts'' means the Bureau of
Land Management mineral contracts numbered CA-20139 and CA-
22901.
(4) Contract holder.--The term ``contract holder'' means
the private party to the contracts, and any successors that
hold legal interests in the contracts.
(5) County of san bernardino.--The term ``County of San
Bernardino'' means the County of San Bernardino, California.
(6) Map.--The term ``Map'' means the map entitled
``Victorville disposal area, California'' and dated March 2011.
(7) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(8) Victorville disposal area.--The term ``Victorville
disposal area'' means the 10,206.05 acres of land identified
for disposal in the West Mojave Land Management Plan (2006) of
the Bureau of Land Management and depicted on the Map.
SEC. 3. APPRAISAL; COMPENSATION TO CONTRACT HOLDER.
(a) Appraisals.--
(1) Contract appraisal.--
(A) In general.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall
determine by mineral appraisal, using 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)--
(i) the fair market value of the contracts;
and
(ii) the amount of royalties the Federal
Government would receive under the contracts
over the 10-year period beginning on the date
of enactment of this Act.
(B) Considerations.--In making the determination
under subparagraph (A), the Secretary shall assume
that--
(i) the contract holder has obtained all
the permits and entitlements necessary to mine,
produce, and sell sand and gravel under the
contract; and
(ii) mining operations under the contract
have commenced at the time of the
determination, with maximum annual production
volumes that--
(I) are based on the projected
supply and demand outlook at the time
of determination; and
(II) reflect depletion of the
reserves that are subject to the
contract within the effective periods
of the contract.
(C) Donation.--The Secretary shall provide to the
contract holder and the City of Santa Clarita a list of
approved appraisers from which the parties shall select
and provide the funding to cover the costs of the
appraisal under subparagraph (A).
(2) Land appraisal.--
(A) In general.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall
determine by appraisal standards under existing laws
and regulations, the fair market value of the
Victorville disposal area on a net present value basis.
(B) Donation.--The Secretary shall provide to the
contract holder and the City of Santa Clarita a list of
approved appraisers from which the parties shall select
and provide the funding to cover the costs of the
appraisal under subparagraph (A).
(b) Compensation.--
(1) In general.--Subject to paragraph (2), not later than
30 days after completion of the appraisals under subsection
(a), the Secretary shall offer the contract holder compensation
for the cancellation of the contracts.
(2) Conditions on offer.--An offer made by the Secretary
under paragraph (1) shall be subject to the following
conditions:
(A) The cancellation of the contracts and the
provision of compensation shall be contingent on the
availability of funds from the sale of the Victorville
disposal area under section 4, and any additional
compensation provided under subparagraph (D), as
determined necessary by the Secretary.
(B) The amount of compensation offered by the
Secretary under this subsection shall be equal to or
less than the fair market value of the contracts, as
determined under subsection (a)(1)(A)(i).
(C) The amount of compensation offered by the
Secretary under this subsection shall be equal to or
less than the projected revenues generated by the sale
of the Victorville disposal area under section 4, less
the projected lost royalties to the Federal Government
over the 10-year period beginning on the date of
enactment of this Act, as determined under subsection
(a)(1)(A)(ii).
(D) If the amount of projected revenues described
in subparagraph (C) is less than the fair market value
determined under subsection (a)(1)(A)(i), the Secretary
shall, not later than 60 days after the date on which
the Director of the Bureau of Land Management
determines the projected revenues under subparagraph
(C), negotiate an agreement with the contract holder
and the City of Santa Clarita to provide to the
Secretary amounts equal to the difference, in the form
of--
(i) compensation to be received by the
contract holder; and
(ii) compensation in a form acceptable to
the Secretary to be provided by the City of
Santa Clarita.
(3) Acceptance of offer.--
(A) In general.--The contract holder shall have 60
days from the later of the date on which the Secretary
makes the offer under paragraph (1) or an agreement is
negotiated under paragraph (2)(D) to accept the offer
or agreement.
(B) Failure to accept offer.--If the contract
holder does not accept the offer under paragraph (1) or
if an agreement is not negotiated under paragraph
(2)(D) within the time period described in subparagraph
(A), the contracts shall remain in effect and no
further actions shall taken be taken pursuant to this
Act.
SEC. 4. SALE OF LAND NEAR VICTORVILLE, CALIFORNIA.
(a) 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 (b) through (f), not later than 2 years
after the date of enactment of this Act, the Secretary shall place on
the market and offer for sale by competitive bidding and in a manner
designed to obtain the highest price possible, all right, title, and
interest of the United States in and to the Victorville disposal area.
(b) Availability of Map.--The Secretary shall keep the Map on file
and available for public inspection in--
(1) the office of the Director of the Bureau of Land
Management; and
(2) the district office of the Bureau of Land Management
located in Barstow, California.
(c) Right of Local Land Use Authority To Purchase Certain Land.--
(1) In general.--Before a sale of land under subsection
(a), the Secretary shall provide to 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 that is
located within the jurisdiction of the local land use
authority.
(2) Timing.--A preemptive right under paragraph (1) shall
be in effect for a period of 30 days before the land is sold
under subsection (a).
(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 market value, as determined by an appraisal
conducted by the Secretary.
(4) Exercising right.--If the local land use authority
exercises the preemptive right under paragraph (1), the
Secretary shall convey the land to the local land use authority
immediately on 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 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.
(d) Withdrawal and Reservation.--
(1) Withdrawal.--Subject to valid existing rights, the land
described in subsection (a) is withdrawn from--
(A) entry, appropriation, or disposal under the
public land laws;
(B) location, entry, and patent under the mining
laws; and
(C) operation of the mineral leasing, mineral
materials, and geothermal leasing laws.
(2) 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.
(e) 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.
(f) Account.--The gross proceeds of a sale of land under subsection
(a) shall be deposited in an account acceptable to the Secretary and
available only for the purposes of carrying out this Act.
SEC. 5. CANCELLATION OF CONTRACTS.
(a) In General.--On completion of the compensation to the contract
holder for the value of each contract in accordance with subsection
(b), the Secretary shall cancel the contracts 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.
(b) Compensation; Cancellation; Retention of Funds.--
(1) In general.--Subject to paragraph (3), the Secretary
shall provide to the contract holder the compensation agreed to
under section 3(b) by disbursement of amounts from the account,
in 4 equal payments, as funds are available;
(2) Cancellation.--
(A) Contract ca-20139.--On completion of the first
2 payments to the contract holder under paragraph (1),
the Secretary shall cancel contract CA-20139.
(B) Contract ca-22901.--On completion of the
remaining 2 payments to the contract holder under
paragraph (1), the Secretary shall cancel contract CA-
22901.
(3) Retention of funds.--The Secretary shall retain
sufficient funds to cover the projected lost royalties
determined under section 3(a)(1)(A)(ii).
(c) Release and Waiver.--Upon acceptance and receipt of
compensation under subsection (b), the contract holder shall waive all
claims against the United States arising out of, or relating to, the
cancellation of the contracts.
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