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115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-768
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LAKE BISTINEAU LAND TITLE STABILITY ACT
_______
June 20, 2018.--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
ADDITIONAL VIEWS
[To accompany H.R. 3392]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 3392) to provide for stability of title to
certain land in the State of Louisiana, 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.
This Act may be cited as the ``Lake Bistineau Land Title Stability
Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to direct the Secretary of the Interior to
issue a recordable disclaimer of interest of the United States in and
to--
(1) any land described in paragraphs (1) and (2) of
subsection (a) of section 4 that is located outside the record
meander lines of the Original Survey described in that
subsection; and
(2) any omitted land.
SEC. 3. DEFINITIONS.
In this Act:
(1) Omitted land.--The term ``omitted land'' means any land
in S30-T16N-R10W, including adjacent islands and the meander
lines of the water body, that was in place during the Original
Survey, but that was not included in the Original Survey,
regardless of whether the exclusion of the land was due to
gross error in the Original Survey or fraud by any individual
conducting the Original Survey.
(2) Original survey.--The term ``Original Survey'' means the
survey of land in northern Louisiana approved by the Surveyor
General on December 8, 1842.
(3) Resurvey.--The term ``Resurvey'' means the document
entitled ``Dependent Re-Survey, Extension Survey and Survey of
Two Islands, Sections 17, 29, and 30'', which was completed on
November 24, 1967, approved on January 15, 1969, and published
in the Federal Register on February 27, 1969 (34 Fed. Reg.
2677).
(4) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
SEC. 4. MEANDER LINES; RECORDABLE DISCLAIMER OF INTEREST.
(a) Meander Lines.--The meander lines in the Original Survey are
definitive for purposes of determining title to--
(1) the land in S30-T16N-R10W; and
(2) the 2 islands adjacent to the land described in paragraph
(1).
(b) Recordable Disclaimer of Interest.--
(1) In general.--The Secretary shall prepare a recordable
disclaimer of interest in which the United States conveys and
disclaims any right, title, or interest of the United States in
and to--
(A) any land described in paragraphs (1) and (2) of
subsection (a) that is located outside the recorded
meander lines described in that subsection; and
(B) any omitted land.
(2) Filing.--The Secretary shall record the disclaimer of
interest prepared under paragraph (1) in the appropriate local
office in the State of Louisiana in which real property
documents are recorded.
(3) Inclusions.--The disclaimer of interest filed under
paragraph (2) shall include legal descriptions of the land
subject to the disclaimer of interest using the lot or tract
numbers included in the Resurvey.
PURPOSE OF THE BILL
The purpose of H.R. 3392 is to provide for stability of
title to certain land in the State of Louisiana.
BACKGROUND AND NEED FOR LEGISLATION
The U.S. government ordered a survey of lands in Louisiana
that included the area surrounding Lake Bistineau in 1842. In
1901, following the results of the survey, Louisiana delineated
its ownership of lands under the Equal Footing Doctrine and
transferred 7,000 acres of land around Lake Bistineau to the
Commissioners of the Bossier Levee District. Three years later,
the Commissioners conveyed this land to private ownership.
In 1967, the Bureau of Land Management (BLM) re-surveyed
this land and two additional islands in the Lake. The 1967
survey presented a new boundary line which differed from what
the federal government determined was the boundary of Lake
Bistineau over 155 years earlier when Louisiana was admitted to
the Union. Although BLM published a notice of the 1967 survey
in the Federal Register in 1969, the agency did not notify all
affected landowners of the survey's impact on land ownership or
otherwise act to claim title to lands identified as belonging
to the federal government.
Almost 50 years later, in 2013, BLM notified landowners
that their property appeared ``to be still vested in the United
States'' based on the results of the 1967 survey.\1\ Since
then, the federal government and over 50 landowners have been
in a dispute over the ownership of roughly 200 acres of land.
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\1\ U.S. Department of the Interior, Letter to Mr. Davis Powell,
Attorney for local landowners involved in the dispute, September 27,
2013.
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H.R. 3392 would require the Secretary of the Interior to
convey and disclaim any right, title or interest in the
disputed lands. As a result, the bill would resolve current
uncertainty regarding the land titles and ensure that the
federal government has no ownership claims to any of the
disputed land in the future.
Similar legislation, H.R. 3342 (114th Congress) sponsored
by Congressman John Fleming (R-LA) was favorably reported by
the House Committee on Natural Resources on September 6, 2016.
In this Congress, a Senate companion bill, S. 1219, was
introduced by Senator Bill Cassidy (R-LA). The Senate Committee
on Energy and Natural Resources held a hearing on the bill on
February 7, 2018. S. 1219 is supported by Louisiana's Attorney
General and the Louisiana Landowners Association.
COMMITTEE ACTION
H.R. 3392 was introduced on July 25, 2017, by Congressman
Mike Johnson (R-LA). The bill was referred to the Committee on
Natural Resources, and within the Committee to the Subcommittee
on Federal Lands. On April 11, 2018, the Natural Resources
Committee met to consider the bill. The Subcommittee was
discharged by unanimous consent. Congressman Mike Johnson
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 voice vote.
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 AND CONGRESSIONAL BUDGET ACT
1. Cost of Legislation and the Congressional Budget Act.
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 following estimate for the
bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 13, 2018.
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. 3392, the Lake
Bistineau Land Title Stability Act.
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,
Director.
Enclosure.
H.R. 3392--Lake Bistineau Land Title Stability Act
H.R. 3392 would require the Secretary of the Interior to
disclaim interest in roughly 230 acres of land and associated
minerals near Lake Bistineau in northwest Louisiana. Based on
an analysis of information provided by the Bureau of Land
Management (BLM), the Energy Information Administration (EIA),
the oil and gas industry, the State of Louisiana, and other
interested parties, CBO estimates that enacting the bill would
reduce offsetting receipts, which are treated as reductions in
direct spending, by about $1 million over the 2019-2028 period.
Because enacting H.R. 3392 would affect direct spending,
pay-as-you-go procedures apply. Enacting the bill would not
affect revenues.
CBO estimates that enacting H.R. 3392 would not increase
net direct spending by more than $2.5 billion or on-budget
deficits by more than $5 billion in any of the four consecutive
10-year periods beginning in 2029.
H.R. 3392 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
Background
The affected lands were omitted from a federal land survey
in 1842. The State of Louisiana subsequently deeded those lands
to the Bossier Levee District, which transferred them to
private individuals. Following a resurvey of the area published
in 1969, BLM determined that the lands, which were then held
privately, fell under federal jurisdiction. In recent years,
BLM and private titleholders have each claimed ownership of the
affected lands and the subsurface mineral estate; however, the
private titleholders are not currently pursuing any remedy
other than legislation similar to H.R. 3392.
Royalties from ongoing gas production
The affected lands contain one active natural gas well. The
well's operator has suspended royalty payments because of the
perceived uncertainty about ownership of the royalty interest.
Based on information from Louisiana, CBO estimates that the
royalties due to the federal government for gas produced from
that land total less than $500,000. In addition, CBO estimates
that any royalties generated from future production of gas from
the existing well would total less than $10,000 over the next
10 years. Under the Mineral Leasing Act, 49 percent of those
amounts would be paid to Louisiana. Because of the uncertainty
regarding when the lease operator will deem the ownership of
the affected minerals resolved and make royalty payments to the
federal government, CBO estimates that there is a 50 percent
probability that those payments will be made over the next 10
years. Thus, enacting H.R. 3392, which would result in BLM's
disclaiming ownership of the royalty interest, would reduce
expected offsetting receipts by less than $125,000 over the
2019-2028 period.
Royalties from new gas production
The affected lands make up about one-third of a production
unit, which consists of one square mile of land and the
associated minerals. Based on information regarding the average
number of wells drilled on production units in northwest
Louisiana, CBO expects that between three and five additional
wells could be drilled on the unit and that each would produce
about 4 billion cubic feet of gas, nearly all within the first
10 years. That additional production would only occur if gas
prices are high enough to make new production economical.
Using information provided by EIA and individuals working
in the oil and gas industry, CBO expects that new drilling will
not occur on the affected lands unless gas prices at the
wellhead exceed $3.50 per thousand cubic feet (mcf). Under
CBO's April 2018 baseline, gas prices are not expected to
exceed that amount at any point over the next 10 years.
However, CBO's baseline projections of gas prices in each year
represent the midpoint of a range of possible prices. CBO
estimates that the probability that prices will be high enough
to spur new production on the affected lands over the next 10
years ranges from 18 percent to 27 percent in each year and
that the average wellhead price under those scenarios would
range from $5/mcf to $6/mcf.
Because of the perceived uncertainty concerning the
ownership of associated resources, CBO estimates that there is
a 50 percent probability that the federal government will
receive no royalty payments from new wells over the next 10
years, either because operators would choose not to drill new
wells or because they would suspend royalty payments on new
production. After accounting for a range of scenarios with
different prices and production volumes, CBO estimates that the
expected gross federal royalties from new wells on the affected
lands would range from $1 million to $2 million over the next
10 years. Of those amounts, 49 percent would be paid to
Louisiana. On that basis, CBO estimates that, on net, enacting
H.R. 3392 would reduce offsetting receipts from royalties paid
on production from new wells by between $500,000 and $1 million
over the 2019-2028 period.
Uncertainty
CBO aims to produce estimates that generally reflect the
middle of a range of the most likely budgetary outcomes that
would result if the legislation was enacted. In estimating the
effects of H.R. 3392, CBO had to account for two major sources
of uncertainty. CBO cannot predict if or when the leaseholder
on the affected lands will deem the dispute over ownership of
those lands settled, which will determine whether any payments
are made to the federal government. CBO also cannot foresee
future gas prices with certainty. The price of gas will
determine whether additional gas is produced from the affected
lands and when that production may occur, which will affect the
amount and timing of any royalty payments the leaseholder would
make to the federal government. Because of those uncertainties,
the budgetary effects of enacting H.R. 3392 could differ from
those provided in CBO's analysis.
The CBO staff contact for this estimate is Jeff LaFave. The
estimate was reviewed by H. Samuel Papenfuss, Deputy 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 stability of title to
certain land in the State of Louisiana.
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.
ADDITIONAL VIEWS
H.R. 3392 would void the results of a 1967 Bureau of Land
Management (BLM) resurvey of lands in the Bossier Levee
District of Northern Louisiana and restrict future federal
surveys. In effect, this bill transfers public land that
belongs to the American taxpayers to private interests.
The land at issue was originally surveyed in 1842,
transferred to the Bossier Levee District in 1892, and conveyed
to private owners in 1904,. However, BLM conducted a resurvey
in 1967 after realizing that certain lands were omitted from
previous federal surveys. The re-survey put more than 200 acres
of land previously thought to belong to Louisiana and private
interests, back into federal ownership.
Until recently, and despite BLM's outreach efforts to
notify landowners, the results of this re-survey were largely
ignored or forgotten. Today, approximately 50 homes may be
impacted, and BLM is currently working to evaluate ownership
and authorize conveyance, where appropriate, under the Color of
Title Act. The Color of Title Act authorizes the BLM to convey
public lands that have been acquired by peaceful adverse
possession, often caused by historical surveying anomalies,
such as in this case.
However, conveyances authorized under the Color of Title
Act do not necessarily include the subsurface mineral estate.
Pursuant to section 209 of the Federal Land and Policy
Management Act of the 19676 (FLPMA), the United States
generally retains mineral interests when dispensing of land
managed by the BLM.
The FLMPA also states that the federal government reserves
the right to ``prospect for, mine and remove the minerals under
applicable law.''\1\ The Secretary of the Interior is
authorized to forfeit the mineral interests of the subsurface
estate as part of a conveyance if the value of the subsurface
estate is deemed to be negligible or the withholding of the
rights to mineral interests hinder non-mineral development of
the land--neither condition has been met by the purposed
conveyance in H.R. 3392.
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\1\Bureau of Land Management. Washington, D.C. ``Federal Land
Policy Management Act of 1976, as amended.'' Web:
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H.R. 3392 ignores the results of the resurvey, potentially
authorizing the conveyance of the federally owned subsurface
mineral estate with an estimated value of $10 million.
There has not been a hearing H.R. 3392 in the 115th
Congress, through a similar bill--S. 1219--was the subject of a
Senate Committee on energy and Natural Resources hearing on
February 7, 2018 during which Brian Steed, Deputy Directory of
Policy and Programs for the Bureau of Land Management,
expressed his concern that the bill ``transfer Federal lands
and mineral estate out of Federal ownership without equitable
compensation to U.S. taxpayers.''
BLM has the tools to resolve this situation and is
committed to working with the affected landowners; Congress
should not revoke its survey or convey a substantial mineral
estate without fair compensation to the American taxpayers.
Raul M. Grijalva,
Ranking Member,
House Committee on Natural Resources.
[all]
