[Senate Report 115-56]
[From the U.S. Government Publishing Office]
Calendar No. 69
115th Congress } { Report
SENATE
1st Session } { 115-56
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CRAGS, COLORADO LAND EXCHANGE ACT OF 2017
_______
May 9, 2017.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 618]
[Including cost estimate from Congressional Budget Office]
The Committee on Energy and Natural Resources, to which was
referred the bill (H.R. 618) to authorize, direct, expedite,
and facilitate a land exchange in El Paso and Teller Counties,
Colorado, and for other purposes, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
PURPOSE
To authorize, direct, expedite, and facilitate a land
exchange in El Paso and Teller Counties, Colorado.
BACKGROUND AND NEED
Emerald Valley Ranch has a colorful history, with
improvements at the site dating back nearly 100 years. Spencer
Penrose developed many of the existing buildings at Emerald
Valley after he acquired the original cabin in 1923. After
Penrose's death, the buildings were operated as a camp by the
YMCA, Boys Scouts, and other non-profit groups. Starting in the
1970s, the buildings were operated by the Turley Family as the
Emerald Valley Guest Ranch. Broadmoor Hotel, Inc., acquired the
buildings from the Turley Family in 2012. In October 2012, the
U.S. Forest Service (USFS) issued a 20-year special use permit
to operate and maintain Emerald Valley Ranch as a guest ranch.
Since issuance of the special use permit, Broadmoor Hotel,
Inc., has invested in significant upgrades and improvements
throughout the resort.
The Broadmoor Hotel, Inc., has proposed a land exchange to
own the USFS land encumbered by the ranch in order to guarantee
its ability to operate, maintain, and continue to invest in the
resort, rather than continuing to renew its special use permit.
These USFS lands have lost their national forest character. In
exchange, the Broadmoor Hotel, Inc., has acquired the 320-acre
Crags property and a perpetual public access easement for the
lower portion of the Barr Trail that it would convey to the
USFS.
The land to be acquired by the USFS is a high value
inholding in the Pike National Forest with views of the Pikes
Peak Massif. The property provides several opportunities to
connect USFS trails emanating from the Crags Campground with
trails in the Horsethief Park/Putney Gulch area. The property
has been the top acquisition priority for the Pikes Peak Ranger
District for several years.
The trailhead for the Barr Trail is located on property
owned by the City of Manitou Springs. After climbing a series
of switchbacks, the trail enters property owned by the Manitou
and Pikes Peak (M&PP) Railway Company, a sister company of
Broadmoor Hotel, Inc. Historically, the M&PP Railway Company
granted term easements to the USFS to provide legal public
access along the segment of the Barr Trail. Although there is
currently no easement in place on this segment, the M&PP
Railway Company is presently allowing public access on the
trail.
H.R. 618 facilitates an equal value land exchange. If the
value of the non-Federal parcel exceeds the value of the
Federal parcel and perpetual access easement, Broadmoor Hotel,
Inc., would donate the excess value to the United States. This
land exchange would provide increased recreational
opportunities for the public on the Pike National Forest,
secure perpetual legal access to the Barr Trail, eliminate
permanent encumbrances on USFS lands and liability to the
United States associated with buildings, a water supply system,
and two dams at Emerald Valley Ranch, and streamline USFS
management responsibilities by eliminating the need to oversee
the resort special use permit at Emerald Valley Ranch.
LEGISLATIVE HISTORY
H.R. 618 was introduced in the House of Representatives by
Representative Lamborn on January 24, 2017 and was referred to
the House Natural Resources Committee. The House of
Representatives passed H.R. 618 under suspension of the rules
by a voice vote on February 6, 2017. H.R. 618 was received in
the Senate and referred to the Committee on Energy and Natural
Resources on February 7, 2017.
An identical bill, S. 280, was introduced by Senators
Gardner and Bennet on February 2, 2017 and referred to the
Committee on Energy and Natural Resources.
During the 114th Congress, a similar measure, H.R. 2223,
was introduced in the House of Representatives by
Representatives Lamborn and Polis on May 1, 2015. On June 16,
2015, the House Natural Resources Subcommittee on Federal Lands
held a hearing on H.R. 2223, and the Natural Resources
Committee ordered the bill reported on July 9, 2015. The House
of Representatives passed H.R. 2223 under suspension of the
rules by a voice vote on September 16, 2015. H.R. 2223 was
received in the Senate and referred to the Committee on Energy
and Natural Resources on September 17, 2015.
An identical companion bill to H.R. 2223, S. 1941, was
introduced by Senators Gardner and Bennet on August 5, 2015.
The Subcommittee on Public Lands, Forests, and Mining held a
hearing on both H.R. 2223 and S. 1941 on October 8, 2015. On
November 19, 2015, the Committee on Energy and Natural
Resources met in open business session and ordered both H.R.
2223 and S. 1941 favorably reported without amendment.
The measure was included in S. Amendment 3234, which the
Senate agreed to on April 19, 2016, as an amendment to S. 2012,
the Energy Policy Modernization Act of 2016, which the Senate
passed, as amended, on April 20, 2016.
The Senate Committee on Energy and Natural Resources met in
open business session on March 30, 2017, and ordered both H.R.
618 and S. 280 favorably reported without amendment.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on March 30, 2017, by a majority voice
vote of a quorum present, recommends that the Senate pass H.R.
618.
SECTION-BY-SECTION ANALYSIS
Section 1 contains the short title, the ``Crags, Colorado
Land Exchange Act of 2017.''
Section 2 states that the purpose of the bill, to
authorize, direct, expedite, and facilitate the land exchange
and to promote enhanced public outdoor recreational and natural
resource conservation opportunities in Pike National Forest.
Section 3 contains definitions.
Section 4(a) directs the Secretary of Agriculture
(Secretary) to accept the parcel of non-Federal land if
Broadmoor Hotel, Inc., offers to convey it to the U.S.
Government and in return, to simultaneously convey the Federal
land at the Emerald Valley Ranch to Broadmoor Hotel, Inc.
Subsection (b) requires that the title to the conveyed non-
Federal land must be acceptable to the Secretary and meet
applicable title approval standards.
Subsection (c) grants Broadmoor Hotel, Inc., a
nonexclusive, perpetual access easement, requires Forest
Service Road 371 be maintained by Broadmoor Hotel, Inc., and
allow public use in accordance with the Forest Service travel
management plan.
Subsection (d) provides that USFS Road 371 may be improved,
relocated, or otherwise altered if the Secretary and Broadmoor
Hotel, Inc., mutually agree.
Subsection (e) requires Broadmoor Hotel, Inc., to pay for
all land survey, appraisal, and other costs associated with the
exchange.
Section 5(a) requires the Secretary to conduct appraisals
of the parcels of land.
Subsection (b) requires the land exchange to be of equal
value. If the value of the Federal land exceeds the value of
the non-Federal land, Broadmoor Hotel, Inc., must make a cash
equalization payment to be deposited into the fund established
under Public Law 90-171 (16 U.S.C. 484a). Any cash equalization
payments received by the Secretary are to be used to acquire
land or interests in land in Region 2 of the USFS. If the value
of the non-Federal land exceeds the value of the Federal land,
the surplus value of the non-Federal land will be considered a
donation by Broadmoor Hotel, Inc., to the U.S. Government.
Subsection (c) directs that the appraisals should not take
into account the special use permit at Emerald Valley Ranch or
the Barr Trail easement when determining the value of the
parcels.
Section 6(a) permanently withdraws all the lands acquired
by the Secretary under this Act from all forms of appropriation
and disposal under the public land laws, including the mining
and mineral leasing laws and the Geothermal Steam Act of 1930
(30 U.S.C. 1001 et seq.). If there are any public land orders
that withdraw the Federal land from appropriation or disposal,
they are revoked to the extent necessary to permit disposal of
the Federal land to Broadmoor Hotel, Inc. All Federal land
authorized to be exchanged under this Act, if not already
withdrawn from appropriation or disposal under public land laws
upon enactment of this Act, are withdrawn, subject to valid
existing rights, until the date of conveyance of the Federal
land to Broadmoor Hotel, Inc.
Subsection (b) specifies that the land acquired by the
Secretary under this Act will become part of the Pike-San
Isabel National Forest.
Subsection (c) states that it is the intent of Congress
that the land exchange be completed within one year.
Subsection (d) allows the Secretary and Broadmoor Hotel,
Inc., to make minor adjustments to the maps, descriptions, or
acreage if both parties agree.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of the costs of this measure has
been provided by the Congressional Budget Office:
Crags, Colorado Land Exchange Act of 2017
H.R. 618 would require the Forest Service to exchange, at
the request of a private entity, 82 acres of federal lands in
the Pike National Forest for 320 acres of private lands in that
forest. Because CBO expects that the parcels would have a
similar value per acre, we estimate that the total value of the
private lands would exceed the value of the affected federal
lands. Under the act, the federal government would not be
required to compensate the private entity to make up for that
difference. However, CBO expects that the Forest Service will
receive annual payments of a little more than $30,000 for a
special use permit on the affected federal parcel.
On that basis, CBO estimates that enacting H.R. 618 would
reduce offsetting receipts, which are treated as reductions in
direct spending, by about $350,000 over the 2017-2027 period;
therefore, pay-as-you-go procedures apply. Enacting H.R. 618
would not affect revenues.
Because H.R. 618 would require the private entity to pay
any administrative costs associated with the land exchange and
CBO expects that any updates to maps or signage would be
completed in conjunction with scheduled reprinting and routine
maintenance, we estimate that implementing the act would not
affect discretionary spending.
CBO estimates that enacting the legislation would not
increase net direct spending or on-budget deficits by more than
$5 billion in any of the four consecutive 10-year periods
beginning in 2028.
H.R. 618 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
The act would authorize a land exchange between the federal
government and a private business, which would have a small
incidental effect on property taxes collected by local
governments in Colorado. That effect, however, would not result
from an intergovernmental mandate as defined in UMRA.
On April 7, 2017, CBO transmitted a cost estimate for S.
280, the Crags, Colorado Land Exchange Act, as ordered reported
by the Senate Committee on Energy and Natural Resources on
March 30, 2017. H.R. 618 and S. 280 are similar and CBO's cost
estimate for each piece of legislation is the same.
The CBO staff contacts for this estimate are Jeff LaFave
(for federal costs) and Jon Sperl (for intergovernmental
mandates). This estimate was approved by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out H.R. 618. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of H.R. 618, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
H.R. 618, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
EXECUTIVE COMMUNICATIONS
Because H.R. 618 is similar to legislation considered by
the Committee in the 114th Congress, the Committee did not
request Executive Agency views. The testimony provided by the
U.S. Forest Service at the hearing before the Subcommittee on
Public Lands, Forests, and Mining on October 8, 2015, follows:
Statement of Glen Casamassa, Associate Deputy Chief, National Forest
System, U.S. Forest Service, U.S. Department of Agriculture
S. 1941 would require a land exchange between the United
States and Broadmoor Hotel, Inc. (BHI). The United States would
convey an 83 acre tract of National Forest System Land and a
non-exclusive perpetual easement for access in exchange for a
320 acre parcel and a permanent trail easement for a section of
the Barr trail owned by BHI. Both exchange parcels are located
within the Pike National Forest.
The Department generally supports S. 1941 but would like to
work with the committee on concerns with the bill. For example,
we would like to help develop language that would ensure the
northern boundary of the land conveyed is located to provide
adequate space for Forest Service road maintenance and
administration.
The National Forest parcel that would be conveyed in the
exchange has long been encumbered with significant resort
improvements managed under special use authorization. In return
for this parcel, the United States would receive an isolated
inholding that the Forest Service has placed a high priority on
acquiring. The inholding has significant recreational values
and provides additional access for the public to the National
Forest.
As a result, the exchange will eliminate potentially
significant development in a sensitive area in exchange for
conveying Federal land where development impacts have already
occurred. In addition, The United States would secure legal
access on a segment of the very popular Barr trail. This trail
provides an important recreational access to the Pike National
Forest.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the bill as ordered
reported.