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108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-379
======================================================================

 
       NORTHERN ARIZONA NATIONAL FOREST LAND EXCHANGE ACT OF 2003

                                _______
                                

 November 18, 2003.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Pombo, from the Committee on Resources, submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2907]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2907) to provide for a land exchange in the State of 
Arizona between the Secretary of Agriculture and Yavapai Ranch 
Limited Partnership, 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 ``Northern Arizona National Forest Land 
Exchange Act of 2003''.

SEC. 2. FINDINGS AND PURPOSES.

  (a) Findings.--Congress finds that--
          (1) certain parcels of private land in the approximately 170 
        square miles of land commonly known as the ``Yavapai Ranch'' 
        and located in Yavapai County, Arizona, are intermingled with 
        National Forest System land owned by the United States and 
        administered by the Secretary of Agriculture as part of 
        Prescott National Forest;
          (2) the private land is owned by the Yavapai Ranch Limited 
        Partnership and the Northern Yavapai, L.L.C., in an 
        intermingled checkerboard pattern, with the United States or 
        Yavapai Ranch Limited Partnership and the Northern Yavapai, 
        L.L.C., owning alternate square mile sections of land or 
        fractions of square mile sections;
          (3) a significant portion of the private land within the 
        checkerboard area (including the land located in or near the 
        Pine Creek watershed, Juniper Mesa Wilderness Area, Haystack 
        Peak, and the Luis Maria Baca Float No. 5) is located in 
        environmentally valuable areas that possess attributes for 
        public management, use, and enjoyment, including--
                  (A) outdoor recreation;
                  (B) preservation of stands of old growth forest;
                  (C) largely unfragmented habitat for antelope, deer, 
                elk, mountain lion, wild turkey, and other wildlife 
                species;
                  (D) scientific research;
                  (E) rangeland;
                  (F) cultural and archaeological resources; and
                  (G) scenic vistas;
          (4) the checkerboard ownership pattern of private and public 
        land within Prescott National Forest impedes sound and 
        efficient management of the intermingled National Forest System 
        land;
          (5) if the private land in the checkerboard area is 
        subdivided or developed, the intermingled National Forest 
        System land will become highly fragmented and lose much of the 
        value of the land for wildlife habitat and future public 
        access, use, and enjoyment;
          (6) acquisition by the United States of certain parcels of 
        land that have been offered by Yavapai Ranch Limited 
        Partnership and the Northern Yavapai, L.L.C., for addition to 
        Prescott National Forest will serve important public 
        objectives, including--
                  (A) acquiring private land that meets the criteria 
                for inclusion in the National Forest System in exchange 
                for land with lower public, environmental, and 
                ecological values;
                  (B) consolidating a large area of National Forest 
                System land to preserve--
                          (i) permanent public access, use, and 
                        enjoyment of the land; and
                          (ii) efficient management of the land;
                  (C) minimizing cash outlays by the United States to 
                achieve the objectives described in subparagraphs (A) 
                and (B); and
                  (D) reducing administrative costs to the United 
                States through--
                          (i) consolidation of Federal land holdings 
                        for more efficient land management and 
                        planning;
                          (ii) elimination of approximately 350 miles 
                        of boundary between private land and the 
                        Federal parcels; and
                          (iii) reduction of right-of-way, special use, 
                        and other permit processing and issuance for 
                        roads and other facilities on National Forest 
                        System land;
          (7) parcels of National Forest System land have been 
        identified for conveyance to Yavapai Ranch Limited Partnership 
        or the Northern Yavapai, L.L.C., through a land exchange 
        because the parcels--
                  (A) have significantly lower recreational, wildlife, 
                ecological, and other public purpose values than the 
                land to be acquired by the United States; and
                  (B) are encumbered by special use permits and rights-
                of-way for a variety of purposes (including summer 
                youth camps, municipal water treatment facilities, 
                sewage treatment facilities, city parks, and airport-
                related facilities) that--
                          (i) limit the usefulness of the parcels for 
                        general National Forest System purposes; but
                          (ii) are logical for pass-through conveyances 
                        from Yavapai Ranch Limited Partnership and the 
                        Northern Yavapai, L.L.C., to the permit or 
                        right-of-way holders; and
          (8) because there are limited water resources on the National 
        Forest System land available for future water users and the 
        unlimited use of the water resources would have adverse long-
        term impacts on existing and future water users and State water 
        right holders and the Verde River and National Forest System 
        land conveyed by the United States, limits on water use should 
        be established on the National Forest System land that--
                  (A) is located near the communities of Camp Verde, 
                Cottonwood, and Clarkdale; and
                  (B) is to be conveyed by the United States to Yavapai 
                Ranch Limited Partnership or the Northern Yavapai, 
                L.L.C.
  (b) Purpose.--The purpose of this Act is to authorize, direct, and 
facilitate the exchange of Federal land and non-Federal land between 
the United States, Yavapai Ranch Limited Partnership, and the Northern 
Yavapai, L.L.C.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Camp.--The term ``camp'' means Camp Pearlstein, Friendly 
        Pines, Patterdale Pines, Pine Summit, Sky Y, and YoungLife Lost 
        Canyon camps in the State of Arizona.
          (2) Federal land.--The term ``Federal land'' means the land 
        described in section 4(a)(2).
          (3) Management plan.--The term ``Management Plan'' means the 
        land and resource management plan for Prescott National Forest.
          (4) Non-federal land.--The term ``non-Federal land'' means 
        the approximately 35,000 acres of non-Federal land located 
        within the boundaries of Prescott National Forest, as generally 
        depicted on the map entitled ``Yavapai Ranch Land Exchange Non-
        Federal Lands'', dated April 2002.
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.
          (6) Yavapai ranch.--The term ``Yavapai Ranch'' means--
                  (A) the Yavapai Ranch Limited Partnership, an Arizona 
                Limited Partnership; and
                  (B) the Northern Yavapai, L.L.C., an Arizona Limited 
                Liability Company.

SEC. 4. LAND EXCHANGE.

  (a) Conveyance of Federal Land by the United States.--
          (1) In general.--On receipt of an offer from Yavapai Ranch to 
        convey the non-Federal land, the Secretary shall convey to 
        Yavapai Ranch by deed acceptable to Yavapai Ranch, subject to 
        easements, rights-of-way, utility lines, and any other valid 
        encumbrances on the Federal land in existence on the date of 
        enactment of this Act and any other reservations that may be 
        agreed to by the Secretary and Yavapai Ranch, all right, title, 
        and interest of the United States in and to the Federal land 
        described in paragraph (2).
          (2) Description of federal land.--The Federal land referred 
        to in paragraph (1) shall consist of the following:
                  (A) Certain land comprising approximately 15,300 
                acres located in Yavapai County, Arizona, as generally 
                depicted on the map entitled ``Yavapai Ranch Land 
                Exchange Area Federal Lands'', dated April 2002.
                  (B) Certain land in the Coconino National Forest, 
                Coconino County Arizona--
                          (i) comprising approximately 1,500 acres 
                        located in Coconino National Forest, Coconino 
                        County, Arizona, as generally depicted on the 
                        map entitled ``Yavapai Ranch Land Exchange 
                        Flagstaff Federal Lands-Airport Parcel'', dated 
                        April 2002; and
                          (ii) comprising approximately 28.26 acres in 
                        2 separate parcels, as generally depicted on 
                        the map entitled ``Yavapai Ranch Land Exchange 
                        Flagstaff Federal Lands--Wetzel School and Mt. 
                        Elden Parcels'', dated September 2002.
                  (C) Certain land referred to as Williams Airport, 
                Williams golf course, Williams Sewer, Buckskinner Park, 
                Williams Railroad, and Well parcels numbers 2, 3, and 
                4, comprising approximately 950 acres, located in 
                Kaibab National Forest, Coconino County, Arizona, as 
                generally depicted on the map entitled ``Yavapai Ranch 
                Land Exchange Williams Federal Lands'', dated April 
                2002.
                  (D) Certain land comprising approximately 2,200 acres 
                located in Prescott National Forest, Yavapai County, 
                Arizona, as generally depicted on the map entitled 
                ``Yavapai Ranch Land Exchange Camp Verde Federal Land--
                General Crook Parcel'', dated April 2002.
                  (E) Certain land comprising approximately 820 acres 
                located in Prescott National Forest in Yavapai County, 
                Arizona, as generally depicted on the map entitled 
                ``Yavapai Ranch Land Exchange Camp Verde Federal 
                Lands--Cottonwood/Clarkdale Parcel'', dated April 2002.
                  (F) Certain land comprising approximately 237.5 acres 
                located in Kaibab National Forest, Coconino County, 
                Arizona, as generally depicted on the map entitled 
                ``Yavapai Ranch Land Exchange Younglife/Lost Canyon'', 
                dated April 2002.
                  (G) Certain land comprising approximately 200 acres 
                located in Prescott National Forest, Yavapai County, 
                Arizona, and including Friendly Pines, Patterdale 
                Pines, Camp Pearlstein, Pine Summit, and Sky Y, as 
                generally depicted on the map entitled ``Yavapai Ranch 
                Land Exchange Prescott Federal Lands--Summer Youth Camp 
                Parcels'', dated April 2002.
                  (H) Perpetual, unrestricted, and nonexclusive 
                easements that--
                          (i) run with and benefit land owned by or 
                        conveyed to Yavapai Ranch across certain land 
                        of the United States;
                          (ii) are for the purposes of--
                                  (I) operating, maintaining, 
                                repairing, improving, and replacing 
                                electric power lines or water pipelines 
                                (including related storage tanks, 
                                valves, pumps, and hardware); and
                                  (II) providing rights of reasonable 
                                ingress and egress necessary for the 
                                activities described in subclause (I);
                          (iii) are 20 feet in width; and
                          (iv) are located 10 feet on either side of 
                        each line depicted on the map entitled 
                        ``Yavapai Ranch Land Exchange YRLP Acquired 
                        Easements for Water Lines'', dated April 2002.
          (3) Conditions.--
                  (A) Permits.--Permits or other legal occupancies of 
                the Federal land by third parties in existence on the 
                date of transfer of the Federal land to Yavapai Ranch 
                shall be addressed in accordance with--
                          (i) part 254.15 of title 36, Code of Federal 
                        Regulations (or any successor regulation); and
                          (ii) other applicable laws (including 
                        regulations).
                  (B) Establishment of conservation easements on 
                certain parcels.--
                          (i) In general.--To conserve water in the 
                        Verde Valley, Arizona, and to minimize the 
                        adverse impacts from future development of the 
                        parcels described in subparagraphs (D) and (E) 
                        of paragraph (2) on current and future users of 
                        water and holders of water rights in existence 
                        on the date of enactment of this Act and the 
                        Verde River and National Forest System land 
                        retained by the United States, the United 
                        States shall limit in perpetuity the use of 
                        water on the parcels by establishing 
                        conservation easements that--
                                  (I) prohibit golf course development 
                                on the parcels;
                                  (II) require that public parks and 
                                greenbelts on the parcels be watered 
                                with treated effluent;
                                  (III)(aa) with respect to the parcel 
                                described in paragraph (2)(D), limit 
                                total post-exchange water use to not 
                                more than 700 acre-feet of water per 
                                year; and
                                  (bb) with respect to the parcel 
                                described in paragraph (2)(E), limit 
                                total post-exchange water use to not 
                                more than 150 acre-feet of water per 
                                year; and
                                  (IV) require that any water used for 
                                the parcels not be withdrawn from wells 
                                perforated in the Holocene alluvium of 
                                the Verde River unless supplied by 
                                municipalities or private water 
                                companies; however any water supplied 
                                by municipalities or private water 
                                companies shall count toward the water 
                                use limitations set out in the 
                                preceding subclauses (III)(aa) and 
                                (III)(bb).
                          (ii) Recordation.--The conservation easements 
                        described in clause (i) shall be recorded in 
                        the title to parcels described in subparagraphs 
                        (D) and (E) of paragraph (2) that are conveyed 
                        by the Secretary to Yavapai Ranch.
                          (iii) Subsequent conveyance.--
                                  (I) In general.--On acquisition of 
                                title to the parcels described in 
                                subparagraphs (D) and (E) of paragraph 
                                (2), Yavapai Ranch may convey all or a 
                                portion of the parcels to 1 or more 
                                successors-in-interest.
                                  (II) Water use apportionment.--A 
                                conveyance under subclause (I) shall, 
                                in accordance with the terms described 
                                in clause (i), include a recorded and 
                                binding agreement on the amount of 
                                water available for use on the parcel 
                                or portion of the parcel conveyed, as 
                                determined by the Yavapai Ranch.
                          (iv) Enforcement.--The Secretary shall enter 
                        into an assignment with a political subdivision 
                        of the State of Arizona authorizing the 
                        political subdivision to enforce the terms 
                        described in clause (i) in any manner provided 
                        by law. Until such time as the Secretary 
                        executes the assignment, the Secretary shall 
                        hold the conservation easements.
                          (v) Liability.--
                                  (I) In general.--Any action for a 
                                breach of the terms of the conservation 
                                easements described in clause (i) shall 
                                be against the owner or owners of the 
                                parcel or portion of the parcel, at the 
                                time of the breach, whose action or 
                                failure to act has resulted in the 
                                breach.
                                  (II) Hold harmless.--To the extent 
                                that the United States or a successor-
                                in-interest to the United States no 
                                longer holds title to the parcels or 
                                any portion of the parcels described in 
                                subparagraph (D) or (E) of paragraph 
                                (2), the United States or such 
                                successor-in-interest shall be held 
                                harmless from damages or injuries 
                                attributable to any breach of the terms 
                                of the conservation easements described 
                                in clause (i) by a subsequent 
                                successor-in-interest.
  (b) Conveyance of Non-Federal Land by Yavapai Ranch.--
          (1) In general.--On receipt of title to the Federal land, 
        Yavapai Ranch shall simultaneously convey to the United States, 
        by deed acceptable to Secretary and subject to any 
        encumbrances, all right, title, and interest of Yavapai Ranch 
        in and to the non-Federal land.
          (2) Easements.--
                  (A) In general.--The conveyance of non-Federal land 
                to the United States under paragraph (1) shall be 
                subject to the reservation of--
                          (i) perpetual and unrestricted easements and 
                        water rights that run with and benefit the land 
                        retained by Yavapai Ranch for--
                                  (I) the operation, maintenance, 
                                repair, improvement, development, and 
                                replacement of not more than 3 wells in 
                                existence on the date of enactment of 
                                this Act;
                                  (II) related storage tanks, valves, 
                                pumps, and hardware; and
                                  (III) pipelines to points of use; and
                          (ii) easements for reasonable ingress and 
                        egress to accomplish the purposes of the 
                        easements described in clause (i).
                  (B) Existing wells.--
                          (i) In general.--Each easement for an 
                        existing well shall be--
                                  (I) 40 acres in area; and
                                  (II) to the maximum extent 
                                practicable--
                                          (aa) centered on the existing 
                                        well; and
                                          (bb) located in the same 
                                        square mile section of land.
                          (ii) Limitation.--Within a 40-acre easement 
                        described in clause (i), the United States and 
                        any permitees or licensees of the United States 
                        shall be prohibited from undertaking any 
                        activity that interferes with the use of the 
                        wells by Yavapai Ranch, without the written 
                        consent of Yavapai Ranch.
                          (iii) Reservation of water for the united 
                        states.--The United States shall be entitled to 
                        \1/2\ the production of each existing or 
                        replacement well, not to exceed a total of 
                        3,100,000 gallons of water annually, for 
                        watering wildlife and stock and for other 
                        National Forest System purposes from the 3 
                        wells.
                  (C) Reasonable access.--Each easement for ingress and 
                egress shall be at least 20 feet in width.
                  (D) Location.--The locations of the easements and 
                wells shall be the locations generally depicted on a 
                map entitled ``Yavapai Ranch Land Exchange YRLP 
                Reserved Easements for Waterlines and Wells'', dated 
                April 2002.
  (c) Land Transfer Problems.--
          (1) Federal land.--If a parcel of Federal land (or a portion 
        of the parcel) cannot be conveyed to Yavapai Ranch because of 
        the presence of hazardous materials or if the proposed title to 
        a parcel of Federal land (or a portion of the parcel) is 
        unacceptable to Yavapai Ranch because of the presence of 
        threatened or endangered species, cultural or historic 
        resources, unpatented mining claims, or other third party 
        rights under public land laws--
                  (A) the parcel of Federal land or portion of the 
                parcel shall be excluded from the exchange; and
                  (B) the non-Federal land shall be adjusted in 
                accordance with section 5(c).
          (2) Non-federal land.--If 1 or more of the parcels of non-
        Federal land or a portion of such a parcel cannot be conveyed 
        to the United States because of the presence of hazardous 
        materials or if the proposed title to a parcel or a portion of 
        the parcel is unacceptable to the Secretary--
                  (A) the parcel of non-Federal land or portion of the 
                parcel shall be excluded from the exchange; and
                  (B) the Federal land shall be adjusted in accordance 
                with section 5(c).
  (d) Conveyance of Federal Land to Cities and Camps.--
          (1) In general.--Following the acquisition of the Federal 
        land, Yavapai Ranch shall convey to the cities of Flagstaff, 
        Williams, and Camp Verde and the camps the parcels of Federal 
        land or portions of parcels located in or near the cities or 
        camps under any terms agreed to by Yavapai Ranch, the cities, 
        and camps before the date on which the exchange is completed.
          (2) Deletion from exchange.--If Yavapai Ranch and the cities 
        or camps referred to in paragraph (1) have not agreed to the 
        terms and conditions of a subsequent conveyance of a parcel or 
        portion of a parcel of Federal land before the completion of 
        the exchange, the Secretary, on notification by Yavapai Ranch, 
        the cities, or camps, shall delete the parcel or any portion of 
        the parcel from the exchange. Any parcel or portion of a parcel 
        to be deleted may be configured by the Secretary to leave the 
        United States with manageable post-exchange land and 
        boundaries.
          (3) Easements.--In accordance with section 120(h) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9620(h)), the United States 
        shall reserve easements in any land transferred to Yavapai 
        Ranch.

SEC. 5. EXCHANGE VALUATION, APPRAISALS, AND EQUALIZATION.

  (a) Equal Value Exchange.--The values of the non-Federal and Federal 
land to be exchanged under this Act--
          (1) shall be equal, as determined by the Secretary; or
          (2) if the values are not equal, shall be equalized in 
        accordance with subsection (c).
  (b) Appraisals.--
          (1) In general.--The values of the Federal land and non-
        Federal land shall be determined by appraisals using the 
        appraisal standards in--
                  (A) the Uniform Appraisal Standards for Federal Land 
                Acquisitions, fifth edition (December 20, 2000); and
                  (B) the Uniform Standards of Professional Appraisal 
                Practice.
          (2) Approval.--In accordance with part 254.9(a)(1) of title 
        36, Code of Federal Regulations (or any successor regulation), 
        the appraiser shall be--
                  (A) acceptable to the Secretary and Yavapai Ranch; 
                and
                  (B) a contractor, the clients of which shall be the 
                Secretary and Yavapai Ranch.
          (3) Requirements.--During the appraisal process the appraiser 
        shall--
                  (A) consider the effect on value of the Federal land 
                or non-Federal land because of the existence of 
                encumbrances on each parcel, including--
                          (i) permitted uses on Federal land that 
                        cannot be reasonably terminated before the 
                        appraisal; and
                          (ii) facilities on Federal land that cannot 
                        be reasonably removed before the appraisal; and
                  (B) determine the value of each parcel of Federal 
                land and non-Federal land (including the value of each 
                individual section of the intermingled Federal and non-
                Federal land of the Yavapai Ranch) as an assembled 
                transaction consistent with the applicable provisions 
                of parts 254.5 and 254.9(b)(1)(v) of title 36, Code of 
                Federal Regulations (or any successor regulation).
          (4) Dispute resolution.--A dispute relating to the appraised 
        values of the Federal land or non-Federal land following 
        completion of the appraisal shall be processed in accordance 
        with--
                  (A) section 206(d) of the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1716(d)); and
                  (B) part 254.10 of title 36, Code of Federal 
                Regulations (or any successor regulation).
          (5) Appraisal period.--After the final appraised values of 
        the Federal land and non-Federal land have been reviewed and 
        approved by the Secretary or otherwise determined in accordance 
        with the requirements of paragraph (4), the final appraised 
        values--
                  (A) shall not be reappraised or updated by the 
                Secretary before the completion of the land exchange; 
                and
                  (B) shall be considered to be the values of the 
                Federal land and non-Federal land on the date of the 
                transfer of title.
          (6) Availability.--In accordance with the policy of the 
        Forest Service, and to ensure the timely and full disclosure of 
        the appraisals to the public, the appraisals approved by the 
        Secretary shall be made available for public inspection in the 
        Offices of the Supervisors for Prescott, Coconino, and Kaibab 
        National Forests.
  (c) Equalization of Values.--
          (1) Surplus of non-federal land.--
                  (A) In general.--If, after any adjustments are made 
                to the non-Federal land or Federal land under 
                subsection (c) or (d) of section 4, the final appraised 
                value of the non-Federal land exceeds the final 
                appraised value of the Federal land, the Federal land 
                and non-Federal land shall be adjusted in accordance 
                with subparagraph (B) until the values are 
                approximately equal.
                  (B) Adjustments.--An adjustment referred to in 
                subparagraph (A) shall be accomplished by beginning at 
                the east boundary of section 30, T. 20 N., R. 6 W., 
                Gila and Salt River Base and Meridian, Yavapai County, 
                Arizona, and adding to the Federal land in \1/8\ 
                section increments (N-S 64th line) and lot lines across 
                the section, while deleting in the same increments 
                portions of sections 19 and 31, T. 20 N., R. 6 W., Gila 
                and Salt River Base and Meridian, Yavapai County, 
                Arizona, to establish a linear and continuous boundary 
                that runs north to south across the sections.
          (2) Surplus of federal land.--
                  (A) In general.--If, after any adjustments are made 
                to the non-Federal land or Federal land under 
                subsection (c) or (d) of section 4, the final appraised 
                value of the Federal land exceeds the final appraised 
                value of the non-Federal land, the Federal land and 
                non-Federal land shall be adjusted in accordance with 
                subparagraph (B) until the values are approximately 
                equal.
                  (B) Adjustments.--Adjustments under subparagraph (A) 
                shall be made in the following order:
                          (i) Beginning at the south boundary of 
                        section 31, T. 20 N., R. 5 W., Gila and Salt 
                        River Base and Meridian, Yavapai County, 
                        Arizona, and sections 33 and 35, T. 20 N., R. 6 
                        W., Gila and Salt River Base and Meridian, 
                        Yavapai County, by adding to the non-Federal 
                        land to be conveyed to the United States in \1/
                        8\ section increments (E-W 64th line) while 
                        deleting from the conveyance to Yavapai Ranch 
                        Federal land in the same incremental portions 
                        of section 32, T. 20 N., R. 5 W., Gila and Salt 
                        River Base and Meridian, Yavapai County, 
                        Arizona, and sections 32, 34, and 36, in T. 20 
                        N., R. 6 W., Gila and Salt River Base and 
                        Meridian, Yavapai County, Arizona, to establish 
                        a linear and continuous boundary that runs east 
                        to west across the sections.
                          (ii) By deleting the following parcels:
                                  (I) The Wetzel School parcel 
                                identified on the map described in 
                                section 4(a)(2)(B)(ii).
                                  (II) The Williams Sewer parcel 
                                identified on the map described in 
                                section 4(a)(2)(C).
                                  (III) That part of the Williams 
                                Railroad parcel identified on the map 
                                described in section 4(a)(2)(C) that 
                                lies south of Business I-40.
                                  (IV) A portion of the Cottonwood/
                                Clarkdale Federal Lands identified on 
                                the map described in Section 4(a)(2)(E) 
                                and further described as the S\1/2\S\1/
                                2\ of Section 8, Township 15 North, 
                                Range 3 East, Gila and Salt River Base 
                                and Meridian, Yavapai County, Arizona.
                                  (V) The Buckskinner Park parcel 
                                identified on the map described in 
                                section 4(a)(2)(C).
                                  (VI) Approximately 316 acres of the 
                                Camp Verde Federal Land-General Crook 
                                Parcel identified on the map described 
                                in Section 4(a)(2)(D) and further 
                                described as Lots 1, 5, and 6 and the 
                                NE\1/4\NE\1/4\ of Section 26, and the 
                                N\1/2\N\1/2\ of Section 27, Township 14 
                                North, Range 4 East, Gila and Salt 
                                River Base and Meridian, Yavapai 
                                County, Arizona.
                                  (VII) A portion of the Cottonwood/
                                Clarkdale Federal Lands identified on 
                                the map described in section 4(a)(2)(E) 
                                and further described as the N\1/2\S\1/
                                2\ of Section 8, Township 15 North, 
                                Range 3 East, Gila and Salt River Base 
                                and Meridian, Yavapai County, Arizona.
                                  (VIII) Approximately 314 acres of the 
                                Camp Verde Federal Land-General Crook 
                                Parcel identified on the map described 
                                in section 4(a)(2)(D) and further 
                                described as Lots 2, 7, 8 and 9 and the 
                                SE\1/4\NE\1/4\ of Section 26, and the 
                                S\1/2\N\1/2\ of Section 27, Township 14 
                                North, Range 4 East, Gila and Salt 
                                River Base and Meridian, Yavapai 
                                County, Arizona.
                                  (IX) The Mt. Elden parcel identified 
                                on the map described in section 
                                4(a)(2)(B)(ii).
                  (C) Modifications.--By mutual agreement by the 
                Secretary and the Yavapai Ranch, the land and acreage 
                in subclauses (I) through (IX) may be modified to 
                conform with a survey approved by the Bureau of Land 
                Management or to leave the United States with 
                manageable post-exchange land and boundaries.
          (3) Additional equalization of values.--If, after the values 
        are adjusted in accordance with paragraph (1) or (2), the 
        values of the Federal land and non-Federal land are not equal, 
        then the Secretary and Yavapai Ranch may by agreement adjust 
        the acreage of the Federal land and non-Federal land until the 
        values of that land are equal.
  (d) Cash Equalization.--
          (1) In general.--After the values of the non-Federal and 
        Federal land are equalized to the maximum extent practicable 
        under subsection (c), any balance due the Secretary or Yavapai 
        Ranch shall be paid--
                  (A) through cash equalization payments under section 
                206(b) of the Federal Land Policy and Management Act of 
                1976 (43 U.S.C. 1716(b)); or
                  (B) in accordance with standards established by the 
                Secretary and Yavapai Ranch.
          (2) Limitation.--
                  (A) Adjustments.--If the value of the Federal land 
                exceeds the value of the non-Federal land by more than 
                $50,000, the Secretary and Yavapai Ranch shall, by 
                agreement, delete additional Federal land from the 
                exchange until the values of the Federal land and non-
                Federal land are equal.
                  (B) Deposit.--Any amounts received by the United 
                States under this Act--
                          (i) shall be deposited in a fund established 
                        under Public Law 90-171 (16 U.S.C. 484a) 
                        (commonly known as the ``Sisk Act''); and
                          (ii) shall be available, without further 
                        appropriation, for the acquisition of land or 
                        interests in land for National Forest System 
                        purposes in the State of Arizona.

SEC. 6. MISCELLANEOUS PROVISIONS.

  (a) Revocation of Orders.--Any public orders withdrawing any of the 
Federal land from appropriation or disposal under the public land laws 
are revoked to the extent necessary to permit disposal of the Federal 
land.
  (b) Withdrawal of Federal Land.--The Federal land is withdrawn from 
all forms of entry and appropriation under the public land laws, 
including the mining and mineral leasing laws and the Geothermal Steam 
Act of 1970 (30 U.S.C. 1001 et seq.), until the date on which the 
exchange of Federal land and non-Federal land is completed.
  (c) Surveys, Inventories, and Clearances.--Before completing the 
exchange of Federal land and non-Federal land under this Act, the 
Secretary shall carry out land surveys and preexchange inventories, 
clearances, reviews, and approvals relating to hazardous materials, 
threatened and endangered species, cultural and historic resources, and 
wetlands and floodplains.
  (d) Costs of Implementing the Exchange.--
          (1) In general.--
                  (A) The United States shall bear the costs or other 
                responsibilities or requirements associated with land 
                surveys, title searches, archeological and cultural 
                surveys and salvage, removal of encumbrances and curing 
                title deficiencies necessary to bring the Federal land 
                into a condition where it is acceptable for exchange 
                purposes.
                  (B) Yavapai Ranch shall bear the costs or other 
                responsibilities or requirements associated with land 
                surveys, title searches, archeological and cultural 
                surveys and salvage, removal of encumbrances and curing 
                title deficiencies necessary to bring the non-Federal 
                land into a condition where it is acceptable for 
                exchange purposes.
          (2) Ineligible reimbursements.--No amount paid by Yavapai 
        Ranch under this subsection shall be eligible for reimbursement 
        under section 206(f) of the Federal Land Policy and Management 
        Act of 1976 (43 U.S.C. 1716(f)).
  (e) Timing.--It is the intent of Congress that the exchange of 
Federal land and non-Federal land directed by this Act be completed not 
later than 18 months after the date of enactment of this Act.
  (f) Contractors.--
          (1) In general.--If the Secretary lacks adequate staff or 
        resources to complete the exchange by the date specified in 
        subsection (e), the Yavapai Ranch may contract with independent 
        third-party contractors to carry out any work necessary to 
        complete the exchange by that date, subject to the mutual 
        agreement of the Secretary and the Yavapai Ranch on the 
        contractor or contractors, scope of work, estimated cost of 
        work, and approval of any such work by the Secretary.
          (2) Reimbursement.--In the event that Yavapai Ranch contracts 
        with independent third party contractors to carry out or 
        complete any responsibilities or requirements that would be 
        performed by the Secretary but for the lack of adequate staff 
        or resources, then the Secretary shall reimburse Yavapai Ranch 
        for Yavapai Ranch's costs or expenses for such contractors in 
        accordance with section 206(f) of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1716(f)).

SEC. 7. STATUS AND MANAGEMENT OF LAND AFTER EXCHANGE.

  (a) In General.--Non-Federal land acquired by the United States under 
this Act--
          (1) shall become part of the Prescott National Forest; and
          (2) shall be administered by the Secretary in accordance 
        with--
                  (A) this Act;
                  (B) the laws (including regulations) applicable to 
                the National Forest System; and
                  (C) other authorized uses of the National Forest 
                System.
  (b) Management Plan.--
          (1) In general.--Acquisition of the non-Federal land under 
        this Act shall not require a revision or amendment to the 
        Management Plan.
          (2) Amendment or revision.--If the Management Plan is amended 
        or revised after the date of acquisition of non-Federal land 
        under this Act, the Management Plan shall be amended to reflect 
        the acquisition of the non-Federal land.
  (c) Post-Exchange Management of Certain Land.--
          (1) In general.--On acquisition by the United States, the 
        non-Federal land acquired by the United States and any 
        adjoining National Forest System land shall be managed in 
        accordance with--
                  (A) paragraphs (2) through (6); and
                  (B) the laws (including regulations) generally 
                applicable to National Forest System land.
          (2) Protection of natural resources.--The non-Federal land 
        shall be managed in a manner that maintains the species, 
        character, and natural values of the land, including--
                  (A) deer, pronghorn antelope, wild turkey, mountain 
                lion, and other resident wildlife and native plant 
                species;
                  (B) suitability for livestock grazing; and
                  (C) aesthetic values.
          (3) Grazing.--Each area located in the Yavapai Ranch grazing 
        allotment as of the date of enactment of this Act shall--
                  (A) remain in the Yavapai Ranch grazing allotment; 
                and
                  (B) continue to be subject to grazing in accordance 
                with the laws (including regulations) generally 
                applicable to domestic livestock grazing on National 
                Forest System land.
          (4) Roads.--
                  (A) Improvement and maintenance.--The Secretary shall 
                maintain or improve a system of roads and trails on the 
                non-Federal land to provide opportunities for hunting, 
                motorized and nonmotorized recreation, and other uses 
                of the land by the public.
                  (B) Public access road.--
                          (i) Construction.--The Secretary shall 
                        improve or construct a public access road 
                        linking Forest Road 7 (Pine Creek Road) to 
                        Forest Road 1 (Turkey Canyon Road) through 
                        portions of sections 33, 32, 31, and 30, T. 19 
                        N., R. 6 W., Gila and Salt River Base and 
                        Meridian.
                          (ii) Existing road.--The existing road 
                        linking Pine Creek and Gobbler Knob shall--
                                  (I) until the date on which the new 
                                public access road is completed, remain 
                                open; and
                                  (II) after the date on which the new 
                                public access road is completed, be 
                                obliterated.
                  (C) Easements.--
                          (i) In general.--On completion of the land 
                        exchange under this Act, the Secretary and 
                        Yavapai Ranch shall grant each other at no 
                        charge reciprocal easements for ingress, 
                        egress, and utilities across, over, and 
                        through--
                                  (I)(aa) the routes depicted on the 
                                map entitled ``Yavapai Ranch Land 
                                Exchange Road and Trail Easements--
                                Yavapai Ranch Area'' dated April 2002; 
                                and
                                  (bb) any other inholdings retained by 
                                the United States or Yavapai Ranch; or
                                  (II) any relocated routes that are 
                                agreed to by the Secretary and Yavapai 
                                Ranch.
                          (ii) Requirements.--An easement described in 
                        clause (i)--
                                  (I) shall be unlimited, perpetual, 
                                and nonexclusive in nature; and
                                  (II) shall run with and benefit the 
                                land of the grantee.
                          (iii) Rights of grantee.--The rights of the 
                        grantee shall extend to--
                                  (I) any successors-in-interest, 
                                assigns, and transferees of Yavapai 
                                Ranch; and
                                  (II) in the case of the Secretary, 
                                members of the general public, as 
                                determined to be appropriate by the 
                                Secretary.
          (5) Timber harvesting.--
                  (A) In general.--Except as provided in subparagraph 
                (B), timber harvesting for commodity production shall 
                be prohibited on the non-Federal land.
                  (B) Exceptions.--Timber harvesting may be conducted 
                on the non-Federal land if the Secretary determines 
                that timber harvesting is necessary--
                          (i) to prevent or control fires, insects, and 
                        disease through forest thinning or other forest 
                        management techniques;
                          (ii) to protect or enhance grassland habitat, 
                        watershed values, native plants, trees, and 
                        wildlife species; or
                          (iii) to improve forest health.
          (6) Water improvements.--Nothing in this Act prohibits the 
        Secretary from authorizing or constructing new water 
        improvements in accordance with the laws (including 
        regulations) applicable to water improvements on National 
        Forest System land for--
                  (A) the benefit of domestic livestock or wildlife 
                management;
                  (B) the improvement of forest health or forest 
                restoration; or
                  (C) other National Forest purposes.
  (d) Maps.--
          (1) In general.--The Secretary and Yavapai Ranch may correct 
        any minor errors in the maps of, legal descriptions of, or 
        encumbrances on the Federal land or non-Federal land.
          (2) Discrepancy.--In the event of any discrepancy between a 
        map and legal description, the map shall prevail unless the 
        Secretary and Yavapai Ranch agree otherwise.
          (3) Availability.--All maps referred to in this Act shall be 
        on file and available for inspection in the Office of the 
        Supervisor, Prescott National Forest, Prescott, Arizona.
  (e) Effect.--Nothing in this Act precludes, prohibits, or otherwise 
restricts Yavapai Ranch from subsequently granting, conveying, or 
otherwise transferring title to the Federal land after its acquisition 
of the Federal land.

SEC. 8. CONVEYANCE OF ADDITIONAL LAND.

  (a) In General.--The Secretary shall convey to an individual or 
entity that represents the majority of landowners with encroachments on 
the lot by quitclaim deed the parcel of land described in subsection 
(b).
  (b) Description of Land.--The parcel of land referred to in 
subsection (a) is lot 8 in section 11, T. 21 N., R. 7 E., Gila and Salt 
River Base and Meridian, Coconino County, Arizona.
  (c) Amount of Consideration.--In exchange for the land described in 
subsection (b), the individual or entity acquiring the land shall pay 
to the Secretary consideration in the amount of--
          (1) $2500; plus
          (2) any costs of re-monumenting the boundary of land.
  (d) Timing.--
          (1) In general.--Not later than 90 days after the date on 
        which the Secretary receives a power of attorney executed by 
        the individual or entity acquiring the land, the Secretary 
        shall convey to the individual or entity the land described in 
        subsection (b).
          (2) Limitation.--If, by the date that is 270 days after the 
        date of enactment of this Act, the Secretary does not receive 
        the power of attorney described in paragraph (1)--
                  (A) the authority provided under this subsection 
                shall terminate; and
                  (B) any conveyance of the land shall be made under 
                Public Law 97-465 (16 U.S.C. 521c et seq.).

SEC. 9. COMPENSATION FOR PERSONS HOLDING GRAZING PERMITS.

  Persons holding grazing permits for land transferred into private 
ownership under this Act shall be compensated in accordance with 
section 402(g) of the Federal Land Policy and Management Act of 1976 
(43 U.S.C. 1752(g)).

                          PURPOSE OF THE BILL

    The purpose of H.R. 2907 is to provide for a land exchange 
in the State of Arizona between the Secretary of Agriculture 
and Yavapai Ranch Limited Partnership.

                  BACKGROUND AND NEED FOR LEGISLATION

    Located at the north end of the Prescott National Forest, 
the ``Yavapai Ranch'' is approximately 170 square miles in area 
in north central Arizona. The U.S. Forest Service of the 
Department of Agriculture and Yavapai Ranch Limited Partnership 
(``YRLP'') currently own alternate square mile sections of the 
ranch in an almost exact ``checkerboard'' land ownership 
pattern, the last large mixed ownership pattern in Arizona.
    The land exchange authorized in H.R. 2907 would consolidate 
the checkerboard so that both the Forest Service and YRLP would 
have more manageable lands in the future. In the exchange, YRLP 
will convey approximately 35,000 acres (approximately 55 square 
miles) to the Forest Service. This will enable the Forest 
Service to block up approximately 110 square miles of land 
(totaling over 70,000 acres) into Forest Service ownership for 
permanent public use and enjoyment. The lands being acquired by 
the Forest Service include significant stands of old growth 
ponderosa pine and alligator juniper trees, important 
undeveloped habitat for pronghorn antelope and other wildlife 
species, and a portion of the upper watershed of the Verde 
River. Additionally, the land being consolidated into Forest 
Service ownership lies adjacent to the Juniper Mesa Wilderness 
area, and comprises largely undeveloped and open space. H.R. 
2907 also addresses future water use. The exchange will reduce 
the subdividable and developable land base in the upper Verde 
River watershed (Big Cheno aquifer) by roughly 20,000 acres and 
thereby protect water resources and flows. The Committee notes 
that the Arizona Department of Game and Fish has reviewed the 
lands to be exchanged, and believes the land exchange is 
beneficial from a wildlife standpoint.
    In return for receiving the 35,000 acres of the Yavapai 
Ranch's holdings, the Forest Service will convey to the Yavapai 
Ranch: (1) approximately 15,300 acres of land on the ranch 
checkerboard which is generally of lesser value than that 
acquired by the Forest Service; and (2) approximately 5,900 
acres in or near the communities of Flagstaff, Williams, Camp 
Verde, Clarkdale, Cottonwood, and Prescott. Many of the lands 
being conveyed to the Yavapai Ranch in those communities are 
currently encumbered by Forest Service special use permits for 
municipal airports, water and sewage treatment facilities, 
parks, a golf course and other municipal or summer camp uses. 
Those lands will be ``passed through'' to the municipalities 
and summer camps so that they can own and use the lands they 
currently lease for the Forest Service.
    For the reasons outlined above, the Committee believes it 
is in the public interest to authorize and direct the land 
exchange set forth in the bill. Congress is legislating this 
land exchange because the Forest Service has indicated it is 
too complex, and involves too many parcels of land (located in 
three national forests) to process administratively in any 
reasonable time frame. More precisely, the Forest Service 
testified at the Committee's hearing on October 21, 2003, that 
it could take seven to eight years, or longer, to process the 
exchange through administrative means. In addition, the 
Administration testified that legislating the exchange will 
result in considerable cost savings to taxpayers, including 
savings from reduced boundary administration in the future, 
elimination of special use permits and administration, avoided 
road and other access costs (if the current checkerboard were 
developed), and a fifty percent or greater reduction in 
exchange processing costs if the exchange is legislated.
    In terms of the exchange process, the land exchange 
directed by H.R. 2907 requires: (1) fair market value appraisal 
standards (The Uniform Standards of Appraisal for Federal Land 
Acquisitions and The Uniform Standards of Professional 
Appraisal Practice); (2) formal review and approval of all 
appraisals by the Secretary of Agriculture; (3) completion of 
standard surveys, inventories, clearances and approvals 
relating to threatened and endangered species, cultural and 
historic resources, hazardous materials, and wetlands and 
floodplains; and (4) traditional title reviews and analyses, 
which must be approved by the Forest Service. These 
requirements are all preconditions to consummation of the 
exchange.
    Finally, H.R. 2907 requires that the lands ultimately 
exchanged will be of exact equal value, either by making 
adjustments in the federal and non-federal lands exchanged, or 
through cash equalization.

                            COMMITTEE ACTION

    H.R. 2907 was introduced on July 25, 2003, by Congressman 
Rick Renzi (R-AZ). The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
Forests and Forest Health. On October 21, 2003, the 
Subcommittee held a hearing on the bill. On October 29, 2003, 
the Full Resources Committee met to consider the bill. The bill 
was discharged from the Subcommittee by unanimous consent. 
Congressman Renzi offered an amendment in the nature of a 
substitute making minor changes. The amendment was adopted by 
voice vote. The bill, as amended, by then 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 Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 and Article IV, section 3 of the 
Constitution of the United States grant Congress the authority 
to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. According to the Congressional Budget Office, 
enactment of this bill ``could affect direct spending, but by 
insignificant amounts.''
    3. General Performance Goals and Objectives. This bill does 
not authorize funding and therefore, clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives does not 
apply.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressoinal Budget Office,
                                 Washington, DC, November 17, 2003.
Hon. Richard W. Pombo,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2907, the Northern 
Arizona National Forest Land Exchange Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 2907--Northern Arizona National Forest Land Exchange Act of 2003

    CBO estimates that implementing H.R. 2907 would cost about 
$1 million over the 2004-2005 period, assuming the availability 
of appropriated funds. The bill could affect direct spending, 
but by insignificant amounts. H.R. 2907 would not affect 
revenues. H.R. 2907 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
and would impose no significant costs on State, local, or 
tribal governments. Enacting this legislation would benefit 
several local governments that would receive federal land as a 
result of this exchange.
    H.R. 2907 would authorize the Secretary of Agriculture to 
exchange approximately 21,000 acres of federal lands in Arizona 
for roughly 35,000 acres of privately owned land in that state. 
If the values of those lands are not the same, the parties 
could exchange cash equalization payments of up to $50,000. The 
Secretary could spend any amounts received from such payments 
to acquire other lands and interests in Arizona. H.R. 2907 
would direct the Secretary to reimburse holders of grazing 
permits for certain costs if their grazing rights are affected 
by the proposed exchange. Finally, H.R. 2907 would direct the 
Secretary to convey a small parcel of land in Arizona to 
landowners who have encroached upon that land. In exchange, 
those landowners would pay $2,500 plus certain other costs.
    Based on information from the Forest Service, CBO estimates 
that the agency would spend about $1 million over the 2004-2005 
period for appraisals and other administrative costs associated 
with the proposed land exchange, assuming the availability of 
appropriated funds. According to the Forest Service, the 
federal lands to be exchanged and conveyed currently generate 
no significant receipts and are not expected to do so over the 
next 10 years. Hence, we estimate that completing the proposed 
transactions would not significantly affect offsetting receipts 
(a credit against direct spending). Finally, based on 
information from the agency, we estimate that the cost of 
reimbursing grazing permit holders as authorized under the bill 
would be negligible.
    The CBO staff contact for this estimate is Deborah Reis. 
This estimate was approved by Peter H. Fontaine, Deputy 
Assistant Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                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 in existing 
law.

                            DISSENTING VIEWS

    I oppose H.R. 2907 in its present form.
    This trade will adversely affect towns and communities in 
the arid Southwest, where water is a scarce resource. Putting 
more property into private hands in an area where there in an 
inadequate supply of water will harm current residents and 
businesses.
    While certain aspects of the trade are acceptable, others 
are not. I support the provisions that would trade certain 
scattered parcels held by the Yavapai Ranch Company for land 
near an existing airport in Flagstaff, Arizona. These aspects 
of the trade are reasonable and necessary.
    This trade goes awry in my view with the inclusion of 
several parcels, one near Cottonwood and Clarkdale and another 
near Camp Verde, Arizona. These parcels are currently held by 
federal land management agencies who manage the land for 
grazing and other uses, such as recreation and wildlife 
habitat.
    The communities of Cottonwood, Clarkdale and Camp Verde are 
already suffering from a lack of water and this situation has 
no foreseeable end in sight. Moreover, the communities already 
contain more private land than can possibly be reasonably 
developed, given the paucity of water. There is already plenty 
of private land available for development in Camp Verde and 
Clarkdale/Cottonwood. It is a lack of water, not land, that is 
the main hindrance to increased development in the area.
    While the bill seeks to place a limit on water withdrawals 
on these parcels, I do not believe it goes far enough. The 
amount the bill will allow to be pumped is still an enormous 
amount when compared with the total amount the area's water 
company is able to deliver to area residents.
    These properties lie uphill in the watershed from the 
communities mentioned above. Any pumping above them in the 
watershed will further inhibit their ability to find water for 
current area residents and businesses.
    I am concerned that there is an inherent unfairness present 
in this land exchange. While one rancher, Mr. Ruskin, will be 
greatly financially enriched by this trade, another rancher, 
Mr. Tony Groseta, will lose his livelihood. He grazes cattle on 
one of the federal parcels to be turned over to private hands. 
He is not being adequately compensated for the loss of his 
livelihood in my view. Although a grazing permit is not a 
``right,'' and have not required compensation when taken away, 
grazing permits do have value. They are recognized by financial 
institutions and the IRS to have value, thus enabling ranchers 
to receive loans based on their value. It is unfair to provide 
an opportunity for one party to make millions of dollars while 
another will lose his business entirely.
    The Cottonwood/Clarkdale parcel of federal land is grossly 
undervalued. Lack of access on this parcel lowers the value of 
the land, thus lowering the amount the taxpayers will receive 
in trade for them. The value of these lands will skyrocket as 
soon as the federal lands become private, but the public will 
not benefit from the increase in price. The only party who will 
benefit will be Mr. Ruskin. Because the land is so devalued by 
the lack of currently available access, the federal government 
will basically be giving this parcel away.
    The majority of the conflict in this land exchange comes 
from the inclusion of the Cottonwood/Clarkdale and Camp Verde 
parcels. Because of this, I oppose the inclusion of these two 
parcels in the trade.
    Part of the fundamental problem with legislated land 
exchanges is that we are put into a position where we must 
judge whether a public benefit exists, without the benefit of a 
public process. People in our districts feel disconnected from 
the process in Washington on legislated land exchanges. How can 
we determine that these trades are in the public interest, if 
we have not heard from the affected public? If the testimony of 
land management agency officials is to be believed, the 
administrative process takes too long and costs too much money. 
Therefore, I call on my colleagues to initiate hearings on the 
administrative land trade issue. We need many questions 
answered about this process: How long does the administrative 
process really take? How much does the administrative process 
cost? Are agencies making administrative land trades a 
priority? Are they too controversial? If so, why? Can 
controversial issues be worked out through the administrative 
process? Do agencies lack financial resources to carry out 
administrative trades?
    At a minimum, if we are going to legislate land trades, 
certain things must be done to ensure a fair and open process. 
I call on my colleagues to conduct public hearings in the 
impacted area prior to or immediately after introducing land 
exchange legislation. The testimony of these public hearings 
should be made available to other Members of Congress, such 
that we may be well-informed as to the public interest being 
served by legislating such trades.
    To sum up: There are problems with certain aspects of the 
Northern Land Exchange Act such that I must oppose the bill. In 
addition, I urge Members to hold hearings in affected areas and 
submit findings prior to land trade legislation hearings in 
Committee, so we may determine the public interest of any land 
exchange.
    Lastly, hearings should be held in the Resources Committee 
to determine what problems, whether real or only perceived, 
exist with the administrative land exchange process.

                                                  Raul M. Grijalva.