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                                                      Calendar No. 58
115th Congress       }                         {             Report
 1st Session         }                         {               115-45




                  May 9, 2017.--Ordered to be printed


        Ms. Murkowski, from the Committee on Energy and Natural 
                   Resources, submitted the following

                              R E P O R T

                         [To accompany S. 280]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 280) to authorize, direct, expedite, and 
facilitate a land exchange in El Paso and Teller Counties, 
Colorado, and for other purposes, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.


    The purpose of S. 280 is to authorize, direct, expedite, 
and facilitate a land exchange in El Paso and Teller Counties, 

                          BACKGROUND AND NEED

    Emerald Valley Ranch has a colorful history, with 
improvements at the site dating back nearly 100 years. Spencer 
Penrose developed many of the existing buildings at Emerald 
Valley after he acquired the original cabin in 1923. After 
Penrose's death, the buildings were operated as a camp by the 
YMCA, Boys Scouts, and other non-profit groups. Starting in the 
1970s, the buildings were operated by the Turley Family as the 
Emerald Valley Guest Ranch. Broadmoor Hotel, Inc., acquired the 
buildings from the Turley Family in 2012. In October 2012, the 
U.S. Forest Service (USFS) issued a 20-year special use permit 
to operate and maintain Emerald Valley Ranch as a guest ranch. 
Since issuance of the special use permit, Broadmoor Hotel, 
Inc., has invested in significant upgrades and improvements 
throughout the resort.
    The Broadmoor Hotel, Inc., has proposed a land exchange to 
own the USFS land encumbered by the ranch in order to guarantee 
its ability to operate, maintain, and continue to invest in the 
resort, rather than continuing to renew its special use permit. 
These USFS lands have lost their national forest character. In 
exchange, the Broadmoor Hotel, Inc., has acquired the 320-acre 
Crags property and a perpetual public access easement for the 
lower portion of the Barr Trail that it would convey to the 
    The land to be acquired by the USFS is a high value 
inholding in the Pike National Forest with views of the Pikes 
Peak Massif. The property provides several opportunities to 
connect USFS trails emanating from the Crags Campground with 
trails in the Horsethief Park/Putney Gulch area. The property 
has been the top acquisition priority for the Pikes Peak Ranger 
District for several years.
    The trailhead for the Barr Trail is located on property 
owned by the City of Manitou Springs. After climbing a series 
of switchbacks, the trail enters property owned by the Manitou 
and Pikes Peak (M&PP;) Railway Company, a sister company of 
Broadmoor Hotel, Inc. Historically, the M&PP; Railway Company 
granted term easements to the USFS to provide legal public 
access along the segment of the Barr Trail. Although there is 
currently no easement in place on this segment, the M&PP; 
Railway Company is presently allowing public access on the 
    S. 280 facilitates an equal value land exchange. If the 
value of the non-Federal parcel exceeds the value of the 
Federal parcel and perpetual access easement, Broadmoor Hotel, 
Inc., would donate the excess value to the United States. This 
land exchange would provide increased recreational 
opportunities for the public on the Pike National Forest, 
secure perpetual legal access to the Barr Trail, eliminate 
permanent encumbrances on USFS lands and liability to the 
United States associated with buildings, a water supply system, 
and two dams at Emerald Valley Ranch, and streamline USFS 
management responsibilities by eliminating the need to oversee 
the resort special use permit at Emerald Valley Ranch.

                          LEGISLATIVE HISTORY

    Senators Gardner and Bennet introduced S. 280 on February 
2, 2017.
    An identical bill, H.R. 618, was introduced in the House of 
Representatives by Representative Lamborn on January 24, 2017 
and was referred to the House Natural Resources Committee. The 
House of Representatives passed H.R. 618 under suspension of 
the rules by a voice vote on February 6, 2017. H.R. 618 was 
received in the Senate and referred to the Committee on Energy 
and Natural Resources on February 7, 2017.
    During the 114th Congress a similar measure, S. 1941, was 
introduced by Senators Gardner and Bennet on August 5, 2015. 
The Subcommittee on Public Lands, Forests, and Mining held a 
hearing on both S. 1941 and its House companion, H.R. 2223, on 
October 8, 2015. On November 19, 2015, the Committee on Energy 
and Natural Resources met in open business session and ordered 
both S. 1941 and H.R. 2223 favorably reported without 
    The measure was included in S. Amendment 3234, which the 
Senate agreed to on April 19, 2016, as an amendment to S. 2012, 
the Energy Policy Modernization Act of 2016, which the Senate 
passed, as amended, on April 20, 2016.
    H.R. 2223 was introduced in the House of Representatives by 
Representatives Lamborn and Polis on May 1, 2015. On June 16, 
2015, the House Natural Resources' Subcommittee on Federal 
Lands held a hearing on H.R. 2223, and the Natural Resources 
Committee ordered the bill reported on July 9, 2015. The House 
of Representatives passed H.R. 2223 on September 16, 2015. H.R. 
2223 was received in the Senate and referred to the Committee 
on Energy and Natural Resources on September 17, 2015.
    On March 30, 2017, the Committee on Energy and Natural 
Resources met in open business session and ordered both S. 280 
and H.R. 618 favorably reported without amendment.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on March 30, 2017, by a majority voice 
vote of a quorum present, recommends that the Senate pass S. 

                      SECTION-BY-SECTION ANALYSIS

    Section 1 contains the short title, the ``Crags, Colorado 
Land Exchange Act.''
    Section 2 states that the purpose of the bill is to 
authorize, direct, expedite, and facilitate the land exchange 
and to promote enhanced public outdoor recreational and natural 
resource conservation opportunities in Pike National Forest.
    Section 3 contains definitions.
    Section 4(a) directs the Secretary of Agriculture 
(Secretary) to accept the parcel of non-Federal land if 
Broadmoor Hotel, Inc., offers to convey it to the U.S. 
Government and in return, to simultaneously convey the Federal 
land at the Emerald Valley Ranch to Broadmoor Hotel, Inc.
    Subsection (b) requires that the title to the conveyed non-
Federal land must be acceptable to the Secretary and meet 
applicable title approval standards.
    Subsection (c) grants Broadmoor Hotel, Inc., a 
nonexclusive, perpetual access easement; requires Forest 
Service Road 371 be maintained by Broadmoor Hotel, Inc., and 
allow public use in accordance with the Forest Service travel 
management plan.
    Subsection (d) provides that Forest Service Road 371 may be 
improved, relocated, or otherwise altered if the Secretary and 
Broadmoor Hotel, Inc., mutually agree.
    Subsection (e) requires Broadmoor Hotel, Inc., to pay for 
all land survey, appraisal, and other costs associated with the 
    Section 5(a) requires the Secretary to conduct appraisals 
of the parcels of land.
    Subsection (b) requires the land exchange to be of equal 
value. If the value of the Federal land exceeds the value of 
the non-Federal land, Broadmoor Hotel, Inc., must make a cash 
equalization payment to be deposited into the fund established 
under Public Law 90-171 (16 U.S.C. 484a). Any cash equalization 
payments received by the Secretary are to be used to acquire 
land or interests in land in Region 2 of the USFS. If the value 
of the non-Federal land exceeds the value of the Federal land, 
the surplus value of the non-Federal land will be considered a 
donation by Broadmoor Hotel, Inc. to the U.S. Government.
    Subsection (c) directs that the appraisals should not take 
into account the special use permit at Emerald Valley Ranch or 
the Barr Trail easement when determining the value of the 
    Section 6(a) permanently withdraws all the lands acquired 
by the Secretary under this Act from all forms of appropriation 
and disposal under the public land laws, including the mining 
and mineral leasing laws and the Geothermal Steam Act of 1930 
(30 U.S.C. 1001 et seq.). If there are any public land orders 
that withdraw the Federal land from appropriation or disposal, 
they are revoked to the extent necessary to permit disposal of 
the Federal land to Broadmoor Hotel, Inc. All Federal land 
authorized to be exchanged under this Act, if not already 
withdrawn from appropriation or disposal under public land laws 
upon enactment of this Act, are withdrawn, subject to valid 
existing rights, until the date of conveyance of the Federal 
land to Broadmoor Hotel, Inc.
    Subsection (b) specifies that the land acquired by the 
Secretary under this Act will become part of the Pike-San 
Isabel National Forest.
    Subsection (c) states that it is the intent of Congress 
that the land exchange be completed within one year.
    Subsection (d) allows the Secretary and Broadmoor Hotel, 
Inc., to make minor adjustments to the maps, descriptions, or 
acreage if both parties agree.


    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office:

S. 280--Crags, Colorado Land Exchange Act

    S. 280 would require the Forest Service to exchange, at the 
request of a private entity, 82 acres of federal lands in the 
Pike National Forest for 320 acres of private lands in that 
forest. Because CBO expects that the parcels would have a 
similar value per acre, we estimate that the total value of the 
private lands would exceed the value of the affected federal 
lands. Under the legislation, the federal government would not 
be required to compensate the private entity to make up for 
that difference. However, CBO expects that the Forest Service 
will receive annual payments of a little more than $30,000 for 
a special use permit on the affected federal parcel.
    On that basis, CBO estimates that enacting S. 280 would 
reduce offsetting receipts, which are treated as reductions in 
direct spending, by about $350,000 over the 2017-2027 period; 
therefore, pay-as-you-go procedures apply. Enacting S. 280 
would not affect revenues.
    Because S. 280 would require the private entity to pay any 
administrative costs associated with the land exchange and CBO 
expects that any updates to maps or signage would be completed 
in conjunction with scheduled reprinting and routine 
maintenance, we estimate that implementing S. 280 would not 
affect discretionary spending.
    CBO estimates that enacting the legislation would not 
increase net direct spending or on-budget deficits by more than 
$5 billion in any of the four consecutive 10-year periods 
beginning in 2028.
    S. 280 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The bill would authorize a land exchange between the federal 
government and a private business, which would have a small 
incidental effect on property taxes collected by local 
governments in Colorado. That effect, however, would not result 
from an intergovernmental mandate as defined in UMRA.
    On April 7, 2017, CBO transmitted a cost estimate for H.R. 
618, the Crags, Colorado Land Exchange Act of 2017, as ordered 
reported by the Senate Committee on Energy and Natural 
Resources on March 30, 2017. S. 280 and H.R. 618 are similar 
and CBO's cost estimate for each piece of legislation is the 
    The CBO staff contacts for this estimate are Jeff LaFave 
(for federal costs) and Jon Sperl (for intergovernmental 
mandates). This estimate was approved by H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.


    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 280. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
    Little, if any, additional paperwork would result from the 
enactment of S. 280, as ordered reported.


    S. 280, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        EXECUTIVE COMMUNICATIONS

    Because S. 280 is similar to legislation considered by the 
Committee in the 114th Congress, the Committee did not request 
Executive Agency views. The testimony provided by the U.S. 
Forest Service at the hearing before the Subcommittee on Public 
Lands, Forests, and Mining on October 8, 2015, follows:

 Statement of Glen Casamassa, Associate Deputy Chief, National Forest 
      System, U.S. Forest Service, U.S. Department of Agriculture

    S. 1941 would require a land exchange between the United 
States and Broadmoor Hotel, Inc. (BHI). The United States would 
convey an 83 acre tract of National Forest System Land and a 
non-exclusive perpetual easement for access in exchange for a 
320-acre parcel and a permanent trail easement for a section of 
the Barr trail owned by BHI. Both exchange parcels are located 
within the Pike National Forest.
    The Department generally supports S. 1941 but would like to 
work with the committee on concerns with the bill. For example, 
we would like to help develop language that would ensure the 
northern boundary of the land conveyed is located to provide 
adequate space for Forest Service road maintenance and 
    The National Forest parcel that would be conveyed in the 
exchange has long been encumbered with significant resort 
improvements managed under special use authorization. In return 
for this parcel, the United States would receive an isolated 
inholding that the Forest Service has placed a high priority on 
acquiring. The inholding has significant recreational values 
and provides additional access for the public to the National 
    As a result, the exchange will eliminate potentially 
significant development in a sensitive area in exchange for 
conveying Federal land where development impacts have already 
occurred. In addition, The United States would secure legal 
access on a segment of the very popular Barr trail. This trail 
provides an important recreational access to the Pike National 

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill as ordered