[Senate Report 115-69]
[From the U.S. Government Publishing Office]
Calendar No. 87
115th Congress} { Report
SENATE
1st Session } { 115-69
======================================================================
ELKHORN RANCH AND WHITE RIVER NATIONAL FOREST CONVEYANCE ACT OF 2017
_______
May 16, 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. 698]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Natural Resources, to which was
referred the bill (H.R. 698) to require a land conveyance
involving the Elkhorn Ranch and the White River National Forest
in the State of Colorado, and for other purposes, having
considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
PURPOSE
The purpose of H.R. 698 is to require a land conveyance by
the Secretary of Agriculture involving the Elkhorn Ranch and
the White River National Forest in the State of Colorado.
BACKGROUND AND NEED
Beginning in 1908, three families homesteaded near present-
day Rifle, Colorado, and for decades legally owned portions of
the 148 acres identified in this bill. Shortly before the
acreage was originally patented into private ownership, the
General Land Office placed the homesteads in Section 18 with
east-west fence lines, which conform to the present-day fence
lines. In 1949, a new government survey was completed for the
area that placed the boundary line at an angle rather than on a
true east-west line. This resurvey led to the inclusion of 148
acres in the White River National Forest rather than in private
ownership. The landowners were never contacted concerning the
resurvey and were unaware that their title to the land had been
called into question. Since that time, the property, commonly
called ``Elkhorn Ranch'' has changed hands several times, most
recently in 1998 when the Gordman-Leverich Partnership
purchased the ranch.
In 2002, the boundary and title discrepancy came to light.
The Surveyor of the White River National Forest began to
examine the conflicting surveys and issued a report in 2014,
``Short Summary of Boundary Status--Beaver Creek; Sections 18
and 19, T. 7 S. R. 93 W., 6th PM.,'' confirming that the
original patents were based on a proper survey. The report
recommended a legislative boundary adjustment to correct the
survey discrepancy and return the acreage to the rightful
private landowner.
The Bureau of Land Management issued Federal oil and gas
lease COC-75070 in 2011. This lease includes part of Elkhorn
Ranch. H.R. 698 recognizes the lease as a valid existing right
and reserves to the United States the right to collect rent and
royalty payments from this lease.
Since 1909, the law has guaranteed that resurveys are not
to ``impair the bona fide rights or claims of any claimant,
entryman, or owner of lands affected by such resurvey or
retracement'' (43 U.S.C. 772). The U.S. Forest Service (USFS)
has never managed the 148-acre parcel as national forest system
land. For decades, the landowners have paid property taxes on
the land, made improvements to it, and used it for agricultural
and ranching purposes. The parcel is currently fenced as part
of the ranch and is occupied by stock ponds, roads, and other
improvements.
By transferring the 148-acre parcel to Gordman-Leverich
Partnership, H.R. 698 would correct a long-standing survey
discrepancy and provide a free and clear title to the land
subject to valid, existing rights, including the existing
Federal oil and gas lease.
LEGISLATIVE HISTORY
H.R. 698 was introduced by Representative Tipton on January
24, 2017. H.R. 698 passed the House by voice vote on February
6, 2017, and was referred to the Senate Committee on Energy and
Natural Resources on February 7, 2017.
A companion measure, S. 286, was introduced by Senators
Gardner and Bennet on February 2, 2017.
In the 114th Congress, similar legislation, H.R. 1554, was
introduced by Representatives Tipton and Polis on March 23,
2015. On June 16, 2015, the House Natural Resources
Subcommittee on Federal Lands held a hearing on H.R. 1554, and
the Natural Resources Committee ordered the bill reported on
July 9, 2015 (H. Rept. 114-251). The House of Representatives
passed H.R. 1554 by a voice vote on September 16, 2015.
In the Senate, an identical companion bill, S. 1942, was
introduced by Senator Gardner on August 5, 2015. Senator Bennet
was a cosponsor. The Subcommittee on Public Lands, Forests, and
Mining held a hearing on H.R. 1554 and S. 1942 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.
1554 and S. 1942 favorably reported without amendment (S. Rept.
114-195).
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 and Modernization Act of 2016, which the
Senate passed, as amended, on April 20, 2016.
The Committee on Energy and Natural Resources met in open
business session on March 30, 2017, and ordered H.R. 698 and S.
289 favorably reported.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on March 30, 2017, by a voice vote of a
quorum present, recommends that the Senate pass H.R. 698.
SECTION-BY-SECTION ANALYSIS
Section 1 contains the short title, ``Elkhorn Ranch and
White River National Forest Conveyance Act of 2017.''
Section 2(a) conveys approximately 148 acres of Federal
land to the Gordman-Leverich Partnership.
Subsection (b) subjects the conveyance to valid existing
rights, including oil and gas lease COC-75070, and reserves for
the United States the right to collect rent and royalty
payments on existing oil and gas leases.
Subsection (c) makes clear that the conveyance does not
modify the existing boundaries of the White River National
Forest or Sections 18 and 19 of Township 7 South.
Subsection (d) specifies that the conveyance should be
completed within 180 days following enactment of the Act, and
that all costs related to surveying, platting, or other
activities to process the conveyance shall be paid by the
Gordman-Leverich Partnership.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
H.R. 698 would require the Forest Service to convey 148
acres of federal lands in Colorado to a private entity. Under
the act, the federal government would retain the right to
collect rent and royalty payments from an existing oil and gas
lease on those lands; however, if that lease expires, the
Bureau of Land Management (BLM) would not be allowed to offer
the parcel for lease. Because CBO expects that enacting the
legislation could reduce offsetting receipts, which are treated
as reductions in direct spending, from bonus bids over the next
10 years, pay-as-you-go procedures apply. However, we estimate
that net bonus bids from the affected parcel would total less
than $500,000 over that period. Enacting the legislation would
not affect revenues.
CBO estimates that enacting the legislation would not
increase net direct spending or on-budget deficits in any of
the four consecutive 10-year periods beginning in 2028.
In 2012, BLM issued a federal oil and gas lease on a
portion of the affected lands. If the firm holding that lease
takes certain steps to begin producing oil and gas before the
lease is set to expire in 2022, the firm would retain the lease
until production ended. Under current law and under the act,
the federal government would collect rent and any royalties
generated from oil and gas produced on that lease, and 49
percent of those proceeds would be paid to the state of
Colorado. In that case, enacting the legislation would have no
effect on direct spending.
If the lease expires in 2022, BLM could offer the parcel
for lease after that date under current law. However, the
agency could not offer the affected parcel for lease under the
act. Because CBO has no basis for determining how the relevant
parties would respond if the lease were allowed to expire, our
estimate reflects a point within a range of possible outcomes.
Based on the amount paid for the lease in 2012 ($335,000), CBO
estimates that enacting the legislation would reduce receipts
by less than $500,000 over the 2022-2027 period.
H.R. 698 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
On April 7, 2017, CBO transmitted a cost estimate for S.
286, the Elkhorn Ranch and White River National Forest
Conveyance Act of 2017, as ordered reported by the Senate
Committee on Energy and Natural Resources on March 30, 2017.
H.R. 698 and S. 286 are similar and CBO's cost estimate for
each piece of legislation is the same.
The CBO staff contact for this estimate is Jeff LaFave. The
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. 698. 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. 698, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
H.R. 698, 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. 698 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
USFS at the hearing before the Subcommittee on Public Lands,
Forests, and Mining on October 8, 2015, follows:
Statement of Glenn Casamassa, Associate Deputy Chief, National Forest
System, U.S. Forest Service, U.S. Department of Agriculture
Mr. Chairman and members of the Subcommittee, thank you for
the opportunity to present the views of the U.S. Department of
Agriculture (USDA) regarding S. 1295, S. 1448, S. 1941, and S.
1942.
s. 1942, the ``elkhorn ranch and white river national forest conveyance
act land exchange act of 2015''
S. 1942 would direct the conveyance of a 148 acre parcel of
National Forest System land to the Gordman-Leverich
Partnership. The parcel is located within the White River
National Forest.
While the Administration has serious reservations about the
use of Federal lands to compensate a private landowner,
acknowledging the unusual circumstances in this specific case,
the Department does not oppose S. 1942. The bill would resolve
a long standing title issue associated with the property.
A dependent resurvey, which is a survey dependent upon
prior surveys of record, was completed in 1949, and established
a property monument approximately 2,100 feet from the corner,
relied upon by the original homesteaders. This meant that this
parcel of national forest land had been managed as private
land. 43 U.S.C. 772, enacted in 1909, provided for such
resurveys and guaranteed that the bona fide rights of
landowners would be protected.
Because this land survey discrepancy only came to light
within the past 15 years, and because the parcel has never been
managed as National Forest, protection of the bona fide rights
of the landowners is appropriate. Resolution of this title
issue will end a long-standing title claim in an efficient,
fair manner.
This concludes my remarks. I would be happy to answer any
questions. Thank you for the opportunity to testify.
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.
[all]