Rep. Buck McKeon

Rep. Howard “Buck” McKeon’s bill to cancel gravel mining contracts in Soledad Canyon cleared the House of Representatives Thursday morning.

Cosponsored by Rep. Brad Sherman, D-Sherman Oaks, the bill, HR 5742, passed on the floor of the House as standalone bill after less than 20 minutes of testimony, said Santa Clarita Councilwoman Laurene Weste.

She said the bill made it through on the House’s suspension calendar. Rep. Doc Hastings (R-Wash.), chairman of the House Natural Resources Committee, explained in floor testimony that McKeon had been working on the legislation for a long time, she said. McKeon first introduced legislation to block the mining project in 2003.

HR 5742, the Soledad Canyon Settlement Act, seeks to end a long-running feud between the city of Santa Clarita and cement maker Cemex by requiring the federal Bureau of Land Management to cancel the company’s mining contracts in Soledad Canyon and prohibit the BLM from re-letting contracts there. In return, Cemex would compensated through the sale of government land in Victorville.

According to the Congressional Budget Office, the deal would bear no net cost to taxpayers.

Cemex inherited rights from a predecessor to remove 78 million tons of material to produce 56 million tons of concrete aggregates over 20 years but has not started doing so.

Both Cemex and the city support the McKeon bill. Identical legislation is being carried in the U.S. Senate by Barbara Boxer, D-Calif.

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Statement from Rep. Howard “Buck” McKeon:

[Dec. 11, 2014] – Today I am honored to announce the passage of my bill, H.R. 5742, the Soledad Canyon Settlement Act.

This tremendous achievement is the result of more than two decades of tireless work to develop a practicable solution that would take the Soledad Canyon Mine out of commission and lift this burden off of the backs of my constituents.

Over the years I have engaged with civic leaders, residents of my district, environmental leaders, the County of Los Angeles, CEMEX, BLM, and the Department of Interior. In repeated efforts to bring all parties together to craft a deal that would be mutually beneficial, I have introduced eight bills on this issue, each of which took a different approach in dealing with the mine.

The tug and pull of all parties has influenced the legislative process, with each contributing ideas to further perfect a bill that would finally solve this vexing issue that affects the residents of my district.

In the 113^th Congress, I have redoubled my efforts to identify an avenue through which I could finally bring this bill to fruition. The NDAA has never been the proper legislative vehicle to attach the Soledad Canyon Mine legislation to, and neither was today’s Omnibus spending bill.

This day has been a long time coming, and I could not be more grateful to everyone who has devoted their time and energy to get the Soledad Canyon Settlement Act over the finish line. I would like to extend a special thank you to Speaker John Boehner, Majority Leader Kevin McCarthy and Chairman Doc Hastings for their steadfast support of my bill. They have been invaluable allies in this fight.

I would also like to thank Congressman Brad Sherman and Senator Barbara Boxer for reaching across the aisle to achieve such a resounding and bipartisan victory.

I am looking forward to Senator Boxer leading the charge for swift Senate consideration and passage.

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City of Santa Clarita press release, Dec. 11, 2014:

Santa Clarita received an early Christmas present today from Congress when Rep. Howard “Buck” McKeon’s HR 5742 unanimously passed on the floor of the House of Representatives as a stand-alone bill after less than 20 minutes of testimony.

McKeon’s bill to cancel gravel mining contracts in Soledad Canyon made it through on the House’s suspension calendar. Rep. Doc Hastings (R-Wash.), chairman of the House Natural Resources Committee, explained in floor testimony that McKeon had been working on the legislation for a long time. McKeon first introduced legislation to block the mining project in 2003.

Representative Brad Sherman brought bi-partisan support for HR 5742 by speaking on the House floor in favor of the bill today.

“We are thrilled that our Congressman of 22 years, through his skill and years of experience, found a way to conclude this monumentally important piece of legislation in his district as a capstone to his career.  This is a tremendous victory for our community, protecting us from large-scale mining and is as important to the protection of the Santa Clara River and the President of the United States newly declared San Gabriel Mountains National Monument.  Now we look forward to working with U.S Senators Boxer and Feinstein who have been stalwart in their dedication and commitment in resolving this issue,” commented Councilmember Laurene Weste, City CEMEX sub-committee member.

“In my 15 years on the City Council this is by far the best day.  Enough cannot be said for the huge effort put forth by so many to bring us to this point.  We are particularly appreciative of our Congressman, Howard P. “Buck” McKeon for his hard work over the years.  It is so nice that his bill was successful while he was still in office,” said Mayor Pro Tem Bob Kellar, City CEMEX sub-committee member.

HR 5742, the Soledad Canyon Settlement Act, seeks to end a long-running dispute between the City of Santa Clarita and the Mexico-based, international CEMEX Corporation by requiring the Federal Bureau of Land Management to cancel the company’s mining contracts in Soledad Canyon and prohibit the Bureau of Land Management from re-letting contracts there. In return, CEMEX will be compensated for the fair market value of the contracts through the sale of 10,000 acres of government land in Victorville.

According to the Congressional Budget Office, the deal would bear no net cost to taxpayers, which is called a “zero score.”

CEMEX purchased the rights from a previous company to remove 78-million tons of material to produce 56-million tons of concrete aggregates over 20 years but has not started doing so.

Both CEMEX and the City have been working in tandem for several years with the community and our legislators in support of McKeon’s legislation. Identical legislation S. 2938 was introduced in the Senate on November 18, 2014, as the Soledad Canyon Settlement Act, sponsored by Senators Boxer and Feinstein.

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Version of story by Hometownstation.com:

The House passed a Cemex bill Thursday authored by U.S. Rep. Howard “Buck” McKeon, R-Santa Clarita.

McKeon contacted KHTS AM-1220 on Thursday and confirmed the bill’s passage. “It’s passed, and now it’s up to the Senate,” McKeon said Thursday morning.

The move came as a surprise to many who assumed hope for the bill this congressional session was lost after the bill was not included in a legislative package tacked on to the National Defense Authorization Act.

“It has passed in the House, it ‘s a done deal for us,” said Morris Thomas, a spokesman for McKeon, regarding H.R. 5742.

The bill still must get approved in the Senate, he added.

“Cemex fully supports this legislation and is opptimistic of its passage in the Senate,” said Sara Engdahl, director of communications for the mining company. “We will continue to keep the lines of communication open with the city of Santa Clarita as we move closer to a resolution.”

The congressman took grief in the last week from city officials, however, his office had been working on the plan to get the bill to a vote for a while, he said.

“(H.R. 5742) was never an appropriate bill for the NDAA and the omnibus,” Thomas said. “We’ve been working on an alternative for some time, but any prior disclosure of this particular option would have jeopardized it.”

A representative from Sen. Barbara Boxer, who authored the bill in the Senate, was not immediately available for comment. She introduced the bill last month in the Senate, after learning it achieved a zero score from the Congressional Budget Office.

The zero score means it would have no cost for taxpayers, and thus be immune from a House ban on earmarks.

City Councilwoman Laurene Weste praised the move Thursday in a statement:

“We are thrilled that our Congressman of 22 years, through his skill and years of experience, found a way to conclude this monumentally important piece of legislation in his district as a capstone to his career. This is a tremendous victory for our community, protecting us from large-scale mining and is as important to the protection of the Santa Clara River and the President of the United States newly declared San Gabriel Mountains National Monument.  Now. we look forward to working with U.S Senators Boxer and Feinstein who have been stalwart in their dedication and commitment in resolving this issue.

“We’re very proud of our partnership to bring this to conclusion,” Weste added, “and to reach an amicable resolution for this situation. We’re very proud of the effort.”

The congressman used the suspension calendar, and introduced it as a separate stand-alone, he said, followed by a voice vote that was unanimous, Thomas added.

The city of Santa Clarita and Cemex, an international mining company, have been working cooperatively for more than a decade to compensate Cemex for its Soledad Canyon mining contracts while avoiding a large-scale, multi-decade mining operation near the city’s eastern border.

City officials estimate they’ve spent more than $12 million lobbying for the bill.

The bill calls for the cancellation of two mining contracts that Cemex, a Mexico-based, international building materials company, owns on land just east of the city of Santa Clarita.

In exchange, the Bureau of Land Management would be called upon to sell about 10,000 acres in San Bernardino County, the value of which would be used to compensate Cemex for the value of their land.

Legislation to keep a massive gravel mining project out of the Santa Clarita Valley was in danger of not making to the House floor for a vote, city officials said last Wednesday.

Here’s a statement from McKeon:

“Today I am honored to announce the passage of my bill, H.R. 5742, the Soledad Canyon Settlement Act.

This tremendous achievement is the result of more than two decades of tireless work to develop a practicable solution that would take the Soledad Canyon Mine out of commission and lift this burden off of the backs of my constituents.

Over the years I have engaged with civic leaders, residents of my district, environmental leaders, the County of Los Angeles, CEMEX, BLM, and the Department of Interior. In repeated efforts to bring all parties together to craft a deal that would be mutually beneficial, I have introduced eight bills on this issue, each of which took a different approach in dealing with the mine.

The tug and pull of all parties has influenced the legislative process, with each contributing ideas to further perfect a bill that would finally solve this vexing issue that affects the residents of my district.

In the 113th Congress, I have redoubled my efforts to identify an avenue through which I could finally bring this bill to fruition. The NDAA has never been the proper legislative vehicle to attach the Soledad Canyon Mine legislation to, and neither was today’s Omnibus spending bill.

This day has been a long time coming, and I could not be more grateful to everyone who has devoted their time and energy to get the Soledad Canyon Settlement Act over the finish line. I would like to extend a special thank you to Speaker John Boehner, Majority Leader Kevin McCarthy and Chairman Doc Hastings for their steadfast support of my bill. They have been invaluable allies in this fight.

I would also like to thank Congressman Brad Sherman and Senator Barbara Boxer for reaching across the aisle to achieve such a resounding and bipartisan victory.

I am looking forward to Senator Boxer leading the charge for swift Senate consideration and passage.”

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Boxer press release, Nov. 18, 2014:

U.S. Senator Barbara Boxer (D-CA) today reintroduced the Soledad Canyon Settlement Act, legislation that would resolve a 15-year-long mining dispute between the City of Santa Clarita and CEMEX USA by requiring the Bureau of Land Management (BLM) to cancel current mining contracts in Soledad Canyon and prohibit future mining at this site. The legislation was updated to make clear that it will have no cost to the federal government or taxpayers.

“By ensuring that this bill will have no cost to the government or taxpayers, I believe we have increased our chances of passing it,” Senator Boxer said. “This legislation has the support of the City of Santa Clarita and CEMEX USA, and I am hopeful that we can work with both Republicans and Democrats in Congress to resolve this decades-long dispute and protect the people of the Santa Clarita Valley from pollution and traffic congestion.”

Senator Boxer is also sending a letter to Interior Appropriations Subcommittee Chairman Jack Reed (D-RI) and Ranking Member Lisa Murkowski (R-AK), requesting that the provisions of her bill be included in the Interior Appropriations bill if it is passed in this Congress. In addition, she sent a letter to Environment and Natural Resources Chairman Mary Landrieu and Ranking Member Murkowski (R-AK) asking for their support for the legislation as well.

In 2007, the City of Santa Clarita and CEMEX USA announced that they would seek a compromise agreement that would avoid mining in Soledad Canyon while compensating CEMEX USA for the value of the mining contracts.

Boxer’s bill, which has the strong support of Santa Clarita officials, would implement a balanced solution. The bill directs the BLM to cancel CEMEX USA’s sand and gravel mining leases at Soledad Canyon and withdraw this site from future mining. The bill calls for the BLM to sell lands near Victorville, California that have already been identified for disposal and use the proceeds to compensate CEMEX USA for the canceled contracts.

The Congressional Budget Office (CBO) has reviewed the revised language in the bill and concluded that it has a zero score. The measure would ensure that no cost would be incurred by the taxpayers to complete the agreement to cancel CEMEX USA’s mining leases – either before or after the sale of the BLM lands.

Santa Clarita officials recently sent a letter to the Administration expressing their interest in donating the mine property to the federal government to serve as a gateway point for the recently designated San Gabriel Mountains National Monument, as the mine sits directly on the new monument’s northwestern boundary. However, the mining dispute would first need to be resolved before the city could donate the property.

In November 2013, Boxer and Santa Clarita then-Mayor Bob Kellar testified in support of the measure before the Senate Energy and National Resources Subcommittee on Public Lands. Senator Boxer previously introduced similar legislation in the 111th and 112th Congresses.

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Congratulatory statement from Assemblyman Scott Wilk, R-Santa Clarita, 12-11-2014:

Today Assemblyman Scott Wilk, R-Santa Clarita, commended Rep. Howard P.  “Buck” McKeon’s for his final efforts on his bill HR 5742, the Soledad Canyon Settlement Act.

HR 5742 mirrors Senator Boxer’s Soledad Canyon Settlement Act and will require the Bureau of Land Management to cancel the mining contracts held by CEMEX and to not allow mining in the area moving forward. A specified mechanism to cancel the contracts and use the proceeds of selling land already identified for disposal to compensate CEMEX for the canceled contracts will earn the bill a “zero cost” score from the Congressional Budget Office and will not constitute an earmark.

“Without this measure, our local economy will be threatened economically and environmentally so I thank Congressman McKeon for his efforts in getting his bill off the floor and for putting our community first,” Wilk said. “I know it’s the waning days of the legislative session, but I encourage Senator Barbara Boxer to pull out all stops to get this measure to the President’s desk.”

HR 5742 passed the floor of the House of Representative and now heads to the United States Senate for presentation.

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BILL TEXT (HR 5742, McKeon):

[Congressional Bills 113th Congress]
[From the U.S. Government Printing Office]
[H.R. 5742 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5742

   To provide to the Secretary of the Interior a mechanism to cancel 
  contracts for the sale of materials CA-20139 and CA-22901, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2014

  Mr. McKeon introduced the following bill; which was referred to the 
                     Committee on Natural Resources

_______________________________________________________________________

                                 A BILL


 
   To provide to the Secretary of the Interior a mechanism to cancel 
  contracts for the sale of materials CA-20139 and CA-22901, 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 Settlement Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) City of santa clarita.--The term ``City of Santa 
        Clarita'' means the City of Santa Clarita, California.
            (2) City of victorville.--The term ``City of Victorville'' 
        means the City of Victorville, California.
            (3) Contracts.--The term ``contracts'' means the Bureau of 
        Land Management mineral contracts numbered CA-20139 and CA-
        22901.
            (4) Contract holder.--The term ``contract holder'' means 
        the private party to the contracts, and any successors that 
        hold legal interests in the contracts.
            (5) County of san bernardino.--The term ``County of San 
        Bernardino'' means the County of San Bernardino, California.
            (6) Map.--The term ``Map'' means the map entitled 
        ``Victorville disposal area, California'' and dated March 2011.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (8) Victorville disposal area.--The term ``Victorville 
        disposal area'' means the 10,206.05 acres of land identified 
        for disposal in the West Mojave Land Management Plan (2006) of 
        the Bureau of Land Management and depicted on the Map.

SEC. 3. APPRAISAL; COMPENSATION TO CONTRACT HOLDER.

    (a) Appraisals.--
            (1) Contract appraisal.--
                    (A) In general.--Not later than 90 days after the 
                date of enactment of this Act, the Secretary shall 
                determine by mineral appraisal, using the discounted 
                cash flow method of appraisal (in accordance with the 
                appraisal guidelines for appraisals of large quantities 
                of mineral materials contained in section IV(E) of BLM 
                Mineral Material Appraisal Handbook H-3630)--
                            (i) the fair market value of the contracts; 
                        and
                            (ii) the amount of royalties the Federal 
                        Government would receive under the contracts 
                        over the 10-year period beginning on the date 
                        of enactment of this Act.
                    (B) Considerations.--In making the determination 
                under subparagraph (A), the Secretary shall assume 
                that--
                            (i) the contract holder has obtained all 
                        the permits and entitlements necessary to mine, 
                        produce, and sell sand and gravel under the 
                        contract; and
                            (ii) mining operations under the contract 
                        have commenced at the time of the 
                        determination, with maximum annual production 
                        volumes that--
                                    (I) are based on the projected 
                                supply and demand outlook at the time 
                                of determination; and
                                    (II) reflect depletion of the 
                                reserves that are subject to the 
                                contract within the effective periods 
                                of the contract.
                    (C) Donation.--The Secretary shall provide to the 
                contract holder and the City of Santa Clarita a list of 
                approved appraisers from which the parties shall select 
                and provide the funding to cover the costs of the 
                appraisal under subparagraph (A).
            (2) Land appraisal.--
                    (A) In general.--Not later than 90 days after the 
                date of enactment of this Act, the Secretary shall 
                determine by appraisal standards under existing laws 
                and regulations, the fair market value of the 
                Victorville disposal area on a net present value basis.
                    (B) Donation.--The Secretary shall provide to the 
                contract holder and the City of Santa Clarita a list of 
                approved appraisers from which the parties shall select 
                and provide the funding to cover the costs of the 
                appraisal under subparagraph (A).
    (b) Compensation.--
            (1) In general.--Subject to paragraph (2), not later than 
        30 days after completion of the appraisals under subsection 
        (a), the Secretary shall offer the contract holder compensation 
        for the cancellation of the contracts.
            (2) Conditions on offer.--An offer made by the Secretary 
        under paragraph (1) shall be subject to the following 
        conditions:
                    (A) The cancellation of the contracts and the 
                provision of compensation shall be contingent on the 
                availability of funds from the sale of the Victorville 
                disposal area under section 4, and any additional 
                compensation provided under subparagraph (D), as 
                determined necessary by the Secretary.
                    (B) The amount of compensation offered by the 
                Secretary under this subsection shall be equal to or 
                less than the fair market value of the contracts, as 
                determined under subsection (a)(1)(A)(i).
                    (C) The amount of compensation offered by the 
                Secretary under this subsection shall be equal to or 
                less than the projected revenues generated by the sale 
                of the Victorville disposal area under section 4, less 
                the projected lost royalties to the Federal Government 
                over the 10-year period beginning on the date of 
                enactment of this Act, as determined under subsection 
                (a)(1)(A)(ii).
                    (D) If the amount of projected revenues described 
                in subparagraph (C) is less than the fair market value 
                determined under subsection (a)(1)(A)(i), the Secretary 
                shall, not later than 60 days after the date on which 
                the Director of the Bureau of Land Management 
                determines the projected revenues under subparagraph 
                (C), negotiate an agreement with the contract holder 
                and the City of Santa Clarita to provide to the 
                Secretary amounts equal to the difference, in the form 
                of--
                            (i) compensation to be received by the 
                        contract holder; and
                            (ii) compensation in a form acceptable to 
                        the Secretary to be provided by the City of 
                        Santa Clarita.
            (3) Acceptance of offer.--
                    (A) In general.--The contract holder shall have 60 
                days from the later of the date on which the Secretary 
                makes the offer under paragraph (1) or an agreement is 
                negotiated under paragraph (2)(D) to accept the offer 
                or agreement.
                    (B) Failure to accept offer.--If the contract 
                holder does not accept the offer under paragraph (1) or 
                if an agreement is not negotiated under paragraph 
                (2)(D) within the time period described in subparagraph 
                (A), the contracts shall remain in effect and no 
                further actions shall taken be taken pursuant to this 
                Act.

SEC. 4. SALE OF LAND NEAR VICTORVILLE, CALIFORNIA.

    (a) In General.--Notwithstanding sections 202 and 203 of the 
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712, 1713) 
and subject to subsections (b) through (f), not later than 2 years 
after the date of enactment of this Act, the Secretary shall place on 
the market and offer for sale by competitive bidding and in a manner 
designed to obtain the highest price possible, all right, title, and 
interest of the United States in and to the Victorville disposal area.
    (b) Availability of Map.--The Secretary shall keep the Map on file 
and available for public inspection in--
            (1) the office of the Director of the Bureau of Land 
        Management; and
            (2) the district office of the Bureau of Land Management 
        located in Barstow, California.
    (c) Right of Local Land Use Authority To Purchase Certain Land.--
            (1) In general.--Before a sale of land under subsection 
        (a), the Secretary shall provide to the applicable local land 
        use authority an exclusive preemptive right, as determined 
        under State law, to purchase any right, title, or interest of 
        the United States in and to any portion of the parcels of land 
        identified as ``Area A'' and ``Area B'' on the Map that is 
        located within the jurisdiction of the local land use 
        authority.
            (2) Timing.--A preemptive right under paragraph (1) shall 
        be in effect for a period of 30 days before the land is sold 
        under subsection (a).
            (3) Authority.--During the period described in paragraph 
        (2), the local land use authority may purchase some or all of 
        the right, title, and interest of the United States, as 
        provided in subsection (a), in and to the land to be offered 
        for sale at fair market value, as determined by an appraisal 
        conducted by the Secretary.
            (4) Exercising right.--If the local land use authority 
        exercises the preemptive right under paragraph (1), the 
        Secretary shall convey the land to the local land use authority 
        immediately on payment by the local land use authority of the 
        entire purchase price of the applicable parcel of land.
            (5) Failure to pay.--Failure by the local land use 
        authority to purchase and pay for the right, title, and 
        interest of the United States in and to the land described in 
        paragraph (1) within the time period described in paragraph (2) 
        and to comply with any other terms and conditions as the 
        Secretary may require shall terminate the preemptive right of 
        the local land use authority with respect to the right, title, 
        and interest offered for sale.
    (d) Withdrawal and Reservation.--
            (1) Withdrawal.--Subject to valid existing rights, the land 
        described in subsection (a) is withdrawn from--
                    (A) entry, appropriation, or disposal under the 
                public land laws;
                    (B) location, entry, and patent under the mining 
                laws; and
                    (C) operation of the mineral leasing, mineral 
                materials, and geothermal leasing laws.
            (2) Reservation.--In any sale or other disposal of land 
        under this section, there shall be reserved by the United 
        States the right of the United States to prospect for, mine, 
        and remove minerals from the conveyed land.
    (e) Consultation.--In addition to any consultation otherwise 
required by law, before initiating efforts to dispose of land under 
this section, the Secretary shall consult with the City of Victorville, 
the County of San Bernardino, and surface owners in the jurisdiction in 
which the land is located regarding the potential impact of the 
disposal and other appropriate aspects of the disposal.
    (f) Account.--The gross proceeds of a sale of land under subsection 
(a) shall be deposited in an account acceptable to the Secretary and 
available only for the purposes of carrying out this Act.

SEC. 5. CANCELLATION OF CONTRACTS.

    (a) In General.--On completion of the compensation to the contract 
holder for the value of each contract in accordance with subsection 
(b), the Secretary shall cancel the contracts and withdraw those areas 
that were subject to the contracts from further mineral entry under all 
mineral leasing and sales authorities available to the Secretary.
    (b) Compensation; Cancellation; Retention of Funds.--
            (1) In general.--Subject to paragraph (3), the Secretary 
        shall provide to the contract holder the compensation agreed to 
        under section 3(b) by disbursement of amounts from the account, 
        in 4 equal payments, as funds are available;
            (2) Cancellation.--
                    (A) Contract ca-20139.--On completion of the first 
                2 payments to the contract holder under paragraph (1), 
                the Secretary shall cancel contract CA-20139.
                    (B) Contract ca-22901.--On completion of the 
                remaining 2 payments to the contract holder under 
                paragraph (1), the Secretary shall cancel contract CA-
                22901.
            (3) Retention of funds.--The Secretary shall retain 
        sufficient funds to cover the projected lost royalties 
        determined under section 3(a)(1)(A)(ii).
    (c) Release and Waiver.--Upon acceptance and receipt of 
compensation under subsection (b), the contract holder shall waive all 
claims against the United States arising out of, or relating to, the 
cancellation of the contracts.
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