The Bureau of Land Management NEWS
News Menu (Graphics) News Menu (Text) Home Page

Last updated: 04/04/03

Questions and Answers

FEDERAL LAND TRANSACTION FACILITATION ACT

Title II, of The Valles Caldera Preservation Act (Baca Ranch, NM)

July 25, 2000

The Bureau of Land Management (BLM) already has authority under the Federal Land Management and Policy Act (FLPMA) to sell land. How does the agency's authority change under the Federal Land Transaction Facilitation Act (FLTFA)?

Though land sales were already authorized by FLPMA, the BLM rarely sold land because receipts could not be retained to cover costs, yet the agency incurred significant costs, "closing costs" as would any seller of real estate. The Federal Land Transaction Facilitation Act (FLTFA) will allow the BLM to retain receipts from land sales, which would be used to cover administrative costs and to acquire properties that would improve the nation's land management pattern. At present, receipts from FLPMA land sales go direct to the Treasury. The purpose of FLTFA is to provide for the orderly disposal of certain Federal lands, and to fund the acquisition by the BLM and other Federal agencies of inholdings and other lands containing exceptional resources. The new legislation does not change the strict criteria of the FLPMA by which lands are designated for disposal, nor the rigorous process for doing so, which requires land use planning, public involvement, and consultation with interested parties.

Why is it important for the BLM to have land disposal authority?

Much of the public land occurs in a "checkerboard" land pattern, consisting of square sections of Federal holdings interspersed with private property. This means that some small, scattered parcels or blocks of public land are inaccessible or of little public value, making them uneconomical for the BLM to manage. Through its land use planning process, the agency decides which parcels of land it is best suited to manage and which parcels it should sell.

Will this land disposal authority eliminate the need for land exchanges?

No. The BLM manages 264 million acres of public land, nearly one-eighth of the land in the U.S. Because the BLM's land base is highly fractured and fragmented, making management difficult for the Bureau and its neighbors, some public lands are intermingled with State and privately owned lands. Land exchanges will continue to be the major tool for the BLM to change the checkerboard pattern of land ownership in the West - particularly where State Land Department lands are involved - into consolidated areas that are more efficiently managed and valuable to the public.

What are the benefits of the Act?

The Act will create a more efficient, streamlined process for land sales, and revenues from these sales will directly benefit the nation's public lands. The BLM will be able to keep revenues raised from land sales, which go directly to benefit public land management. In addition, the legislation will enhance cooperation among Federal, State, Tribal, and local interests.

How will the BLM determine which lands to sell? What criteria will the Bureau use? Will it allow for public input?

The BLM will identify lands for disposal using the criteria outlined in Section 203 of FLPMA. The agency will do this in a very public way following its current practices for land sales, including compliance with the National Environmental Policy Act and the Endangered Species Act, and will complete a site-specific analysis before deciding to offer lands for sale and transfer out of Federal management. The agency will also continue to consult extensively with its stakeholders, including State governments, State land commissioners, local officials, tribes, adjoining landowners and other interested parties. The BLM will also publish notice of all proposed sales and provide opportunity for public comment prior to any sales.

Which lands can the BLM dispose of under the Act?

The BLM will sell lands identified for disposal through its land use planning process. Section 203 of FLPMA requires that these lands meet certain criteria:

• the tract is difficult and uneconomic to manage because of its location or other factors, and is not suitable for management by another Federal department or agency;

• the BLM acquired the land for a specific purpose that has been met, and the land is no longer required for any Federal purpose; or
  
• disposal will serve important public policy goals, such as the expansion of communities and economic development.

The BLM has identified through its land use plans more than 3.3 million acres as potentially available for sale or disposal. Will the BLM sell all this land in the 10-year period established by the bill?

Even when lands are designated for disposal, sales are discretionary, not mandatory. This, plus the fact that only a small portion of BLM lands - slightly more than one percent - are identified for disposal, means that the sales program will be modest.

FLTFA will not establish any quota or requirement for sale of land. In fact, it is unlikely that the Bureau will dispose of all 3.3 million acres, which would mean that the agency would be selling 300,000 acres annually. Historically, the BLM has sold between 4,000 and 5,000 acres of public land each year, bringing revenues to the Treasury of between $2 and $3 million. The agency anticipates that under FLTFA, it would likely set a goal of selling between 30,000 and 50,000 acres annually. It is not yet known how much revenue these sales would generate.

Several factors affect the BLM's ability to sell land under FLTFA. For example, many of these lands contain valid existing rights. It would also take time for the BLM to finalize the sale process and to prepare its workforce to implement the Act.

Will FLTFA enable other agencies to acquire land?

While the BLM will implement the Act, other land management agencies in the Departments of the Interior and Agriculture might also benefit because the Bureau can use revenue generated by the Act to acquire inholdings within areas administered by these agencies. In order to implement the Act effectively, the Bureau will need to coordinate closely with these and other agencies.

Will BLM lands be sold to buy lands for other agency programs?

Yes, but proceeds from these types of land sales currently go directly to the general Treasury Fund, providing no direct benefit to the BLM to manage these public lands. The BLM administers a variety of Federally designated areas containing inholdings; these areas will undoubtedly benefit from the funding generated by the Act, as will areas managed by other agencies.

What will happen to proceeds from BLM land sales?

Under Section 206 of FLTFA, the BLM will place the gross proceeds from sale or exchange in a Federal Land Disposal Account. The agency can then use these funds without further Act of Appropriation to buy land. The BLM can use up to 20 percent of these funds in the account for administrative and other expenses. The Act also requires the BLM to spend:

Eighty percent of the non-administrative portion of the fund in the State where the funds were generated. The BLM could use the remaining funds for purchases in other States.

Eighty percent of the non-administrative portion of the fund to acquire "inholdings." The BLM could use the remaining funds to acquire lands adjacent to "Federally designated areas" containing "exceptional resources."

What is an "inholding"?

An inholding occurs when a non-Federal entity holds any right, title, or interest in or to a tract of land that lies within the boundary of a Federally designated area.

What is a "Federally designated area"?

A "Federally designated area" is any land in Alaska or the 11 contiguous Western States that falls within a special designation managed by the BLM. These areas include National Monuments, National Conservation Areas, Areas of Critical Environmental Concern, National Riparian Conservation Areas, and National Recreation Areas. "Federally designated areas" also include units of the National Parks, National Wildlife Refuge, and areas of the National Forest System designated by Congress for special management, as well as Wild and Scenic Rivers, the National Trail Systems, Wilderness, and Wilderness Study Areas.

What does this mean for owners of private inholdings who may or may not wish to sell?

The act will not compel any private landowner to sell property unwillingly. In order to offer an inholding for sale, the owner will be required to notify either the Secretary of Interior or the Secretary of Agriculture.

Is FLTFA similar to the Southern Nevada Public Land Management Act?

FLTFA will bring many of the benefits of the Southern Nevada Public Land Management Act (SNPLA), which allows monies received from the sale of BLM lands near Las Vegas to be used to purchase private lands needed, to public land management nationally. As stated earlier, the BLM will be able to keep revenues raised from land sales, which will go directly to benefit public land management. Since1999 BLM has raised more than $25 million through land sales in Las Vegas under the SNPLA.

How will this law affect State Land agencies?

The BLM will continue to exchange land with State governments. In fact, FLTFA will give the agency greater flexibility to meet the needs of some State Land Departments because they will be considered inholders.

Does the Act require new regulations governing land sales?

No. The Act does not require any new regulations. The BLM will continue to use existing regulations found at 43 CFR 2700.

How can prospective buyers find out about lands for sale or sign up to become a bidder?

The BLM will publicize sales well in advance using a variety of tools, including notices in the press, Federal Register, direct mailings, and via local real estate offices and the Internet www.blm.gov. Prospective buyers should not submit bids to the BLM at this time.

APPENDIX

In March 1997, the BLM reviewed its land disposal plans to identify the number of acres available for sale or exchange. These figures have not changed since that time.

*California: Lands are committed to ongoing land exchanges and acquisition of inholdings as required by the California Desert Protection Act.
**Montana: Only a limited amount of land is available due to existing legal mandates of the Crow Boundary Settlement Act and the Gallatin National Forest exchange.

This page was created by the U.S. Bureau of Land Management, Office of Public Affairs 1849 C Street, Room 406-LS Washington, DC 20240 Phone: (202) 452-5125 Fax: (202) 452-5124

Please contact us with any questions relating to accessibility of documents. Download Adobe Acrobat Reader

This is a U.S. Government Computer System. Before continuing, please read this disclaimer and privacy statement. Accessibility