109th CONGRESS2d Session
H. R. 5471
To provide to the Bureau of Land Management a mechanism to
cancel certain mining leases for lands in the leases CA-20139 and
CA-22901 and provide new leasing opportunities in the Soledad Canyon
adjacent to the City of Santa Clarita, California, that reflect the
historical mining levels, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
May 24, 2006
Mr. MCKEON introduced the following bill; which was referred to the
Committee on Resources
A BILL
To provide to the Bureau of Land Management a mechanism to
cancel certain mining leases for lands in the leases CA-20139 and
CA-22901 and provide new leasing opportunities in the Soledad Canyon
adjacent to the City of Santa Clarita, California, that reflect the
historical mining levels, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Soledad Canyon Mine Leases Adjustment
Act'.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings- The Congress finds the following:
(1) Transit Mixed Concrete Corporation holds two valid Federal
leases for the extraction of sand and gravel from the Federal
mineral estate in lands located in Soledad Canyon adjacent to
the City of Santa Clarita, California, numbered CA-20139 and
CA-22901. Such lands contain approximately 56 million tons of
sand and gravel.
(2) Mining 56 million tons of sand and gravel under the terms of
the leases would produce harm to the environment and cause major
transportation problems for the City of Santa Clarita,
surrounding areas, and other users of the transportation systems
in the vicinity.
(3) It is in the best interest of the citizens of California and
the Federal Government to cancel those leases and make available
new leases for those resources that reflect the level of mining
that has historically occurred in the Soledad Canyon area of
California.
(4) TMC should be offered resources extraction opportunities of
similar economic value in other areas of California that would
not impact the environment and transportation systems to the
degree that they would have been impacted in the Soledad Canyon.
(5) TMC should receive credit for reasonable and customary costs
associated with their efforts to develop leases CA-20139 and
CA-22901.
(6) A site-specific solution that is fair to TMC, protects the
environment, and has minimal impact on local transportation
system is in the best interest of the Nation.
(7) Considerable sums of money have been expended by all parties
trying to insure their interests are protected with respect to
leases CA-20139 and CA-22901, with no conclusion foreseen at
this time.
(b) Purposes- The purposes of this Act are the following:
(1) To provide to the Bureau of Land Management a mechanism that
is not available under existing law to cancel leases CA-20139
and CA-22901 and provide new leasing opportunities in the
Soledad Canyon that reflect the historical production levels.
(2) To provide a means for TMC to recover and transfer to other
Federal resources the amounts expended trying to develop leases
CA-20139 and CA-22901.
(3) To provide the Bureau of Land Management tools to evaluate
expenses incurred by TMC and provide relief.
SEC. 3. DEFINITIONS.
In this Act:
(1) SECRETARY- The term `Secretary' means the Secretary of the
Interior.
(2) TMC- The term `TMC' means the Transit Mixed Concrete
Corporation.
(3) The term `historical production levels' means production of
300,000 tons of aggregate produced for sale per calendar year.
SEC. 4. TMC LEASE CANCELLATIONS AND EXCHANGE OF VALUES EXPENDED.
(a) Leases Cancellations- The Secretary shall cancel Bureau of Land
Management leases CA-20139 and CA-22901 effective on the date of the
enactment of this Act.(b) Exchange for Economic Values-
(1) IN GENERAL- In exchange for the economic value invested in
trying to bring leases CA-20139 and CA-22901 into commercial
production the Secretary shall provide to TMC other financial
and mineral production opportunities in accordance with
subsection (d).
(2) VALUES ASSIGNED TO LEASES- For purposes of paragraph (1),
the economic value invested is an amount equal to the sum of the
following:
(A) All amounts paid to the United States with respect to
the leases as bonus bids or other prepayments.
(B) Interest on amounts referred to in subparagraph (A),
from the date of payment of such amounts to the United
States, at a rate determined by the Secretary.
(C) Amounts expended by TMC in securing the leases and
trying to bring them into production, including--
(i) reasonable costs associated with the engineering and
environmental studies associated with the leases; and
(ii) reasonable legal costs associated with efforts to
exercise the rights granted in the leases.
(c) Submission of Expenses Incurred-
(1) IN GENERAL- To assist in the determination of the amounts
expended referred to in subsection (b)(2)(C), TMC shall submit
to the Secretary within 90 days after the date of the enactment
of this Act an itemized list of such amounts, with enough detail
and supporting documentation so the Secretary can determine that
the expenses are associated with the leases and are reasonable.
(2) ARBITRATION- The Secretary's determination of the amounts
expended referred to in subsection (b)(2)(C) shall be issued
within 90 days of receipt of the itemized list required under
paragraph (1). If the Secretary disapproves such list, the
Secretary shall, upon request of TMC, determine the economic
value invested for purposes of subsection (b)(2) through
arbitration in accordance with subchapter IV of chapter 5 of
title 5, United States Code.
(d) Return of Value Opportunities for TMC- Financial and mineral
production opportunities provided under subsection (b)(1) may be in
the form of one or a combination of any of the following that is
mutually agreed to by the Secretary and TMC:
(1) Interests in the mineral estate in Federal lands in the
State of California that are available for leasing under the
Mineral Leasing Act (30 U.S.C. 181 et seq.).
(2) Interests in the surface estate in Federal lands in the
State of California that are under the administrative
jurisdiction of the Secretary and that are available for
disposal.
(e) Referral to Court of Claims-
(1) REFERRAL- If the Secretary and TMC do not reach agreement
under subsection (b) regarding the financial and mineral
production opportunities to be provided by the Secretary under
subsection (b)(1) within 24 months after date of the enactment
of this Act, the Secretary shall refer the issue to the United
States Court of Federal Claims for resolution.
(2) RESOLUTION BY COURT- In any referral under this subsection,
the court shall--
(A) determine the economic value invested for purposes of
subsection (b)(2); and
(B) determine and order the Secretary to provide financial
and mineral production opportunities for purposes of
subsection (b)(1) and subsection (d).
SEC. 5. LIMITATIONS ON FUTURE LEASING FOR SAND AND GRAVEL IN SOLEDAD
CANYON AREA OF CALIFORNIA.
(a) Limitation on Rate of Mining- The Secretary may not issue any
lease for mining sand and gravel in the Soledad Canyon area of
California as described on the map titled XXX and dated
XXX on file with the Secretary of Interior that in aggregate
exceeds the historical production level.(b) Consultation and
Considerations- Before issuing any lease authorizing the mining of
sand or gravel in the Soledad Canyon area of California, the
Secretary shall--
(1) consult with the City of Santa Clarita, California, Los
Angeles County, California, and surface owners in that area; and
(2) take into consideration the environmental and transportation
concerns of such mining in that area.
