H. Rept. 115-287 - SUPERIOR NATIONAL FOREST LAND EXCHANGE ACT OF 2017115th Congress (2017-2018)
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115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-287
======================================================================
SUPERIOR NATIONAL FOREST LAND EXCHANGE ACT OF 2017
_______
September 5, 2017.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Bishop of Utah, from the Committee on Natural Resources, submitted
the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 3115]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 3115) to provide for a land exchange involving
Federal land in the Superior National Forest in Minnesota
acquired by the Secretary of Agriculture through the Weeks Law,
and for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Superior National
Forest Land Exchange Act of 2017''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purpose and need for NorthMet Land Exchange.
Sec. 3. Definitions.
Sec. 4. NorthMet Land Exchange.
Sec. 5. Valuation of NorthMet Land Exchange.
Sec. 6. Maps and legal descriptions.
Sec. 7. Post-exchange land management.
Sec. 8. Miscellaneous provisions.
SEC. 2. PURPOSE AND NEED FOR NORTHMET LAND EXCHANGE.
(a) Purpose.--It is the purpose of this Act to further the public
interest by consummating the NorthMet Land Exchange as specifically set
forth in this Act.
(b) Need.--According to the Final Record of Decision, the NorthMet
Land Exchange is advisable and needed because the NorthMet Land
Exchange will--
(1) result in a 40-acre net gain in National Forest System
lands;
(2) improve the spatial arrangement of National Forest System
lands by reducing the amount of ownership boundaries to be
managed by 33 miles;
(3) improve management effectiveness by exchanging isolated
Federal lands with no public overland access for non-Federal
lands that will have public overland access and be accessible
and open to public use and enjoyment;
(4) result in Federal cost savings by eliminating certain
easements and their associated administration costs;
(5) meet several of the priorities identified in the land and
resource management plan for Superior National Forest to
protect and manage administratively or congressionally
designated, unique, proposed, or recommended areas, including
acquisition of 307 acres of land to the administratively
proposed candidate Research Natural Areas, which are managed by
preserving and maintaining areas for ecological research,
observation, genetic conservation, monitoring, and educational
activities;
(6) promote more effective land management that would meet
specific National Forest needs for management, including
acquisition of over 6,500 acres of land for new public access,
watershed protection, ecologically rare habitats, wetlands,
water frontage, and improved ownership patterns;
(7) convey Federal land generally not needed for other Forest
resource management objectives, because such land is adjacent
to intensively developed private land including ferrous mining
areas, where abundant mining infrastructure and transportation
are already in place, including--
(A) a large, intensively developed open pit mine
lying directly to the north of the Federal land;
(B) a private mine railroad, powerlines, and roads
lying directly to the south of the Federal land; and
(C) already existing ore processing, milling, and
tailings facilities located approximately 5 miles to
the west of the Federal land; and
(8) provide a practical resolution to complex issues
pertaining to the development of private mineral rights
underlying the Federal land surface, and thereby avoid
potential litigation which could adversely impact the status
and management of the Federal land and other National Forest
System land acquired under the authority of section 6 of the
Act of March 1, 1911 (commonly known as the Weeks Law; 16
U.S.C. 515).
SEC. 3. DEFINITIONS.
In this Act:
(1) Collection agreements.--The term ``Collection
Agreements'' means the following agreements between the
Secretary and Poly Met pertaining to the NorthMet Land
Exchange:
(A) The agreement dated August 25, 2015.
(B) The agreement dated January 15, 2016.
(2) Federal land parcel.--The term ``Federal land parcel''
means all right, title, and interest of the United States in
and to approximately 6,650 acres of National Forest System
land, as identified in the Final Record of Decision, within the
Superior National Forest in St. Louis County, Minnesota, as
generally depicted on the map entitled ``Federal Land Parcel-
NorthMet Land Exchange'', and dated June 2017.
(3) Non-federal land.--The term ``non-Federal land'' means
all right, title, and interest of Poly Met in and to
approximately 6,690 acres of land in four separate tracts
(comprising 10 separate land parcels in total) within the
Superior National Forest to be conveyed to the United States by
Poly Met in the land exchange as generally depicted on an
overview map entitled ``Non-Federal Land Parcels-NorthMet Land
Exchange'' and dated June 2017, and further depicted on
separate tract maps as follows:
(A) Tract 1.--Approximately 4,650 acres of land in
St. Louis County, Minnesota, generally depicted on the
map entitled ``Non-Federal Land Parcels-NorthMet Land
Exchange-Hay Lake Tract'', and dated June 2017.
(B) Tract 2.--Approximately 320 acres of land in 4
separate parcels in Lake County, Minnesota, generally
depicted on the map entitled ``Non-Federal Land
Parcels-NorthMet Land Exchange-Lake County Lands'', and
dated June 2017.
(C) Tract 3.--Approximately 1,560 acres of land in 4
separate parcels in Lake County, Minnesota, generally
depicted on the map entitled ``Non-Federal Land
Parcels-NorthMet Land Exchange-Wolf Lands'', and dated
June 2017.
(D) Tract 4.--Approximately 160 acres of land in St.
Louis County, Minnesota, generally depicted on the map
entitled ``Non-Federal Land Parcel-NorthMet Land
Exchange-Hunting Club Lands'', dated June 2017.
(4) Northmet land exchange.--The term ``NorthMet Land
Exchange'' means the land exchange specifically authorized and
directed by section 4 of this Act.
(5) Poly met.--The term ``Poly Met'' means Poly Met Mining
Corporation, Inc., a Minnesota Corporation with executive
offices in St. Paul, Minnesota, and headquarters in Hoyt Lakes,
Minnesota.
(6) Record of decision.--The term ``Record of Decision''
means the Final Record of Decision of the Forest Service issued
on January 9, 2017, approving the NorthMet Land exchange
between the United States and PolyMet Mining, Inc., a Minnesota
Corporation, involving National Forest System land in the
Superior National Forest in Minnesota.
(7) Secretary.--The term ``Secretary'' means the Secretary of
Agriculture.
(8) State.--The term ``State'' means the State of Minnesota.
SEC. 4. NORTHMET LAND EXCHANGE.
(a) Exchange Authorized and Directed.--
(1) In general.--Subject to section 5(c)(1) and other
conditions imposed by this Act, if Poly Met offers to convey to
the United States all right, title, and interest of Poly Met in
and to the non-Federal land, the Secretary shall accept the
offer and convey to Poly Met all right, title, and interest of
the United States in and to the Federal land parcel.
(2) Land exchange expedited.--Subject to the conditions
imposed by this Act, the NorthMet Land Exchange directed by
this Act shall be consummated not later than 90 days after the
date of enactment of this Act.
(b) Form of Conveyance.--
(1) Non-federal land.--Title to the non-Federal land conveyed
by Poly Met to the United States shall be by general warranty
deed subject to existing rights of record, and otherwise
conform to the title approval regulations of the Attorney
General of the United States.
(2) Federal land parcel.--The Federal land parcel shall be
quitclaimed by the Secretary to Poly Met by an exchange deed.
(c) Exchange Costs.--
(1) Reimbursement required.--Poly Met shall pay or reimburse
the Secretary, either directly or through the Collection
Agreements, for all land survey, appraisal, land title, deed
preparation, and other costs incurred by the Secretary in
processing and consummating the NorthMet Land Exchange. The
Collection Agreements, as in effect on the date of the
enactment of this Act, may be modified through the mutual
consent of the parties.
(2) Deposit of funds.--All funds paid or reimbursed to the
Secretary under paragraph (1)--
(A) shall be deposited and credited to the accounts
in accordance with the Collection Agreements;
(B) shall be used for the purposes specified for the
accounts; and
(C) shall remain available to the Secretary until
expended without further appropriation.
(d) Conditions on Land Exchange.--
(1) Reservation of certain mineral rights.--Notwithstanding
subsection (a), the United States shall reserve the mineral
rights on approximately 181 acres of the Federal land parcel as
generally identified on the map entitled ``Federal Land Parcel-
NorthMet Land Exchange'', and dated June 2017.
(2) Third-party authorizations.--As set forth in the Final
Record of Decision, Poly Met shall honor existing road and
transmission line authorizations on the Federal land parcel.
Upon relinquishment of the authorizations by the holders or
upon revocation of the authorizations by the Forest Service,
Poly Met shall offer replacement authorizations to the holders
on at least equivalent terms.
SEC. 5. VALUATION OF NORTHMET LAND EXCHANGE.
(a) Appraisals.--The Congress makes the following new findings:
(1) Appraisals of the Federal and non-Federal lands to be
exchanged in the NorthMet Land Exchange were formally prepared
in accordance with the Uniform Appraisal Standards for Federal
Land Acquisitions, and were approved by the Secretary in
conjunction with preparation of the November 2015 Draft Record
of Decision on the NorthMet Land Exchange.
(2) The appraisals referred to in paragraph (1) determined
that the value of the non-Federal lands exceeded the value of
the Federal land parcel by approximately $425,000.
(3) Based on the appraisals referred to in paragraph (1), the
United States would ordinarily be required to make a $425,000
cash equalization payment to Poly Met to equalize exchange
values under the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1701 et seq.), unless such an equalization payment
is waived by Poly Met.
(b) Values for Consummation of Land Exchange.--The appraised values
of the Federal and non-Federal land determined and approved by the
Secretary in November 2015, and referenced in subsection (a)--
(1) shall be the values utilized to consummate the NorthMet
Land Exchange; and
(2) shall not be subject to reappraisal.
(c) Waiver of Equalization Payment.--
(1) Condition on land exchange.--Notwithstanding section
206(b) of the Federal Land Policy and Management Act (43 U.S.C.
1716(b)), and as part of its offer to exchange the non-Federal
lands as provided in section 4(a)(1) of this Act, Poly Met
shall waive any payment to it of any monies owed by the United
States to equalize land values.
(2) Treatment of waiver.--A waiver of the equalization
payment under paragraph (1) shall be considered as a voluntary
donation to the United States by Poly Met for all purposes of
law.
SEC. 6. MAPS AND LEGAL DESCRIPTIONS.
(a) Minor Adjustments.--By mutual agreement, the Secretary and Poly
Met may correct minor or typographical errors in any map, acreage
estimate, or description of the Federal land parcel or non-Federal land
to be exchanged in the NorthMet Land Exchange.
(b) Conflict.--If there is a conflict between a map, an acreage
estimate, or a description of land under this Act, the map shall
control unless the Secretary and Poly Met mutually agree otherwise.
(c) Exchange Maps.--The maps referred to in section 3 depicting the
Federal and non-Federal lands to be exchanged in the NorthMet Land
Exchange, and dated June 2017, depict the identical lands identified in
the Final Record of Decision, which are on file in the Office of the
Supervisor, Superior National Forest.
SEC. 7. POST-EXCHANGE LAND MANAGEMENT.
(a) Non-federal Land.--Upon conveyance of the non-Federal land to the
United States in the NorthMet Land Exchange, the non-Federal land shall
become part of the Superior National Forest and be managed in
accordance with--
(1) the Act of March 1, 1911 (commonly known as the Weeks
Law; 16 U.S.C. 500 et seq.); and
(2) the laws and regulations applicable to the Superior
National Forest and the National Forest System.
(b) Planning.--Upon acquisition by the United States in the NorthMet
Land Exchange, the non-Federal lands shall be managed in a manner
consistent with the land and resource management plan applicable to
adjacent federally owned lands in the Superior National Forest. An
amendment or supplement to the land and resource management plan shall
not be required solely because of the acquisition of the non-Federal
lands.
(c) Federal Land.--Upon conveyance of the Federal land parcel to Poly
Met in the NorthMet Land Exchange, the Federal land parcel shall become
private land and available for any lawful use in accordance with
applicable Federal, State, and local laws and regulations pertaining to
mining and other uses of land in private ownership.
SEC. 8. MISCELLANEOUS PROVISIONS.
(a) Withdrawal of Acquired Non-Federal Land.--The non-Federal lands
acquired by the United States in the NorthMet Land Exchange shall be
withdrawn, without further action by the Secretary, from appropriation
and disposal under public land laws and under laws relating to mineral
and geothermal leasing.
(b) Withdrawal Revocation.--Any public land order that withdraws the
Federal land parcel from appropriation or disposal under a public land
law shall be revoked without further action by the Secretary to the
extent necessary to permit conveyance of the Federal land parcel to
Poly Met.
(c) Withdrawal of Federal Land Pending Conveyance.--The Federal land
parcel to be conveyed to Poly Met in the NorthMet Land Exchange, if not
already withdrawn or segregated from appropriation or disposal under
the mineral leasing and geothermal or other public land laws upon
enactment of this Act, is hereby so withdrawn, subject to valid
existing rights, until the date of conveyance of the Federal land
parcel to Poly Met.
(d) Act Controls.--In the event any provision of the Record of
Decision conflicts with a provision of this Act, the provision of this
Act shall control.
PURPOSE OF THE BILL
The purpose of H.R. 3115 is to provide for a land exchange
involving Federal land in the Superior National Forest in
Minnesota acquired by the Secretary of Agriculture through the
Weeks Law.
BACKGROUND AND NEED FOR LEGISLATION
In 1935, the United States Forest Service (USFS) purchased
6,650 acres of land under the Weeks Act (36 Stat. 961). The
private owner of the lands reserved its rights to the
subsurface minerals, sometimes referred to as the NorthMet ore
body, underlying those lands when the USFS purchased the
surface rights for National Forest purposes. Today, PolyMet
controls the mineral rights to the NorthMet ore body through
long-term mineral leases. The USFS owns the remainder of the
property rights, including the surface rights on the lands in
question. PolyMet proposes to build a surface mine to develop
its mineral rights.
The USFS took the position that the mineral rights reserved
by the private property owner when the lands were conveyed to
the United States do not include the right to construct a
surface mine. PolyMet disagrees with the USFS position and
argues that the mineral rights retained by the private property
owner provide for access to the minerals by any mining method,
including surface mining. To eliminate this conflict, the Obama
Administration proposed a land exchange. Under the agreed-upon
exchange, PolyMet would receive the 6,650 acres of split estate
USFS lands and in return would convey to the USFS 6,690 acres
of non-federal lands within the Superior National Forest. The
bill waives PolyMet's right to a cash equalization payment that
would otherwise be owed by the United States to PolyMet to
equalize the difference in value between the lands transferred
to PolyMet and to the USFS.
The land exchange facilitated by H.R. 3115 is modeled after
the administrative land exchange proposed by the Obama
Administration that has been under National Environmental
Policy Act of 1969 (NEPA, 42 U.S.C. 4321 et seq.) analysis
since 2010. The analysis involved multiple federal agencies as
well as the State of Minnesota. The results of the NEPA
analysis were documented in a Final Environmental Impact
Statement released in November 2015 as well as in a Record of
Decision issued in January 2017.
Neither H.R. 3115 nor the land exchange described in the
Final Record of Decision would by themselves authorize mining
operations to occur on the lands conveyed to PolyMet. Following
conveyance of the land, permitting responsibilities for mining
activities on the parcel would rest primarily with the State of
Minnesota and the U.S. Army Corps of Engineers.
COMMITTEE ACTION
H.R. 3115 was introduced on June 29, 2017, by Congressman
Richard M. Nolan (D-MN). The bill was referred to the Committee
on Natural Resources, and within the Committee to the
Subcommittee on Federal Lands and the Subcommittee on Energy
and Mineral Resources. On July 14, 2017, the Subcommittee on
Federal Lands held a hearing on the bill. On July 25, 2017, the
Natural Resources Committee met to consider the bill. The two
Subcommittees were discharged by unanimous consent. Congressman
Bruce Westerman (R-AR) offered an amendment designated #1; it
was adopted by voice vote. No further amendments were offered,
and the bill, as amended, was ordered favorably reported to the
House of Representatives by a bipartisan roll call vote of 26
ayes to 10 nays on July 26, 2017, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation and the Congressional Budget Act of
1974. With respect to the requirements of clause 3(c)(2) and
(3) of rule XIII of the Rules of the House of Representatives
and sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the enclosed cost estimate for
the bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 1, 2017.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3115, the Superior
National Forest Land Exchange Act of 2017.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jeff LaFave.
Sincerely,
Keith Hall.
Enclosure.
H.R. 3115--Superior National Forest Land Exchange Act of 2017
H.R. 3115 would require the Forest Service to exchange, at
the request of a private entity, 6,650 acres of federal lands
in the Superior National Forest for 6,690 acres of private
lands in that forest. Based on an analysis of information
provided by the agency, CBO estimates that enacting the
legislation would have no significant effect on the federal
budget.
On January 9, 2017, the Forest Service issued a Final
Record of Decision approving the land exchange required under
the bill. CBO expects that, under current law, the land
exchange would be completing in 2018, the same year we would
expect it would occur under H.R. 3115. Because enacting the
legislation would not affect the timing of the land exchange or
the acreage conveyed, CBO estimates that enacting the bill
would not affect direct spending.
Based on information regarding recent appraisals of the two
parcels, CBO estimates that the value of the nonfederal land
would exceed the value of the federal land by less than
$500,000. If the exchange is consummated under current law, the
Forest Service would be required to use appropriated funds to
make an equalization payment to the private landowner. Under
the bill, that requirement would be waived. Because CBO expects
that the agency would use appropriated funds that would have
been used to make the equalization to carry out other
activities, we estimate that implementing the bill also would
have no significant effect on spending subject to
appropriation.
Enacting the bill would not affect direct pending or
revenues; therefore, pay-as-you-go procedures do not apply. 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.
H.R. 3115 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Jeff LaFave. The
estimate was approved by Theresa Gullo, Assistant Director for
Budget Analysis.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to provide for a land exchange
involving Federal land in the Superior National Forest in
Minnesota acquired by the Secretary of Agriculture through the
Weeks Law.
EARMARK STATEMENT
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
COMPLIANCE WITH H. RES. 5
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes to existing
law.
DISSENTING VIEWS
H.R. 3115 ratifies the Forest Service decision to execute a
land exchange in the Superior National Forest with the PolyMet
Mining Company.
Polymet's plans to develop the first open pit copper mine
in the State of Minnesota are controversial. Open pit copper
mining is a highly toxic procedure that disturbs the surface
and threatens ground water and other critical resources.
Ahead of the hearing on this bill, the committee received
letters from concerned Minnesotans, including the Minnesota
Environmental Partnership, the Minnesota Center for
Environmental Advocacy and the Fon du Lac Band of Lake Superior
Chippewa, a federally-recognized tribe whose reservation is
downstream from the proposed mine. The area to be exchanged is
part of the tribe's ancestral homeland and they have concerns
that the conveyance could impact their retained rights to hunt,
fish and gather. Federal ownership, which is threatened by this
exchange, protects these rights.
Furthermore, since the Forest Service's approval of the
exchange, several lawsuits have been filed to challenge the
decision. We should think twice about rubber stamping this
exchange while there is active litigation. Our system of
government is set up to allow concerned citizens to challenge
government decisions through the judicial branch. Access to
courts is a fundamental right guaranteed by the Constitution.
This bill takes away that right, something that should make us
all more than a little concerned.
The mining company has not secured any of the state or
federal permits necessary to move forward with the mine.
Congress should not expedite a federal land transfer that is
being reviewed by the judicial branch for a mine that has not
secured the necessary permits. For these reasons, we oppose
H.R. 3115.
Raul M. Grijalva,
Ranking Member, Committee on
Natural Resources.
Nanette Diaz Barragan.
Grace F. Napolitano.
[all]