United States Department of the Interior
BUREAU OF LAND MANAGEMENT
Montana State Office
222 North 32nd Street
P.O. Box 36800
Billings, Montana 59107-6800

2200 (924.1) P

January 20, 1998

EMAIL TRANSMISSION - 1/21/98
Instruction Memorandum No. MT-98-018
Expires: 09/30/99

To:    District Managers

From:    Deputy State Director, Division of Resources

Subject:    Implementation of Land Exchange Approval Processes

The BLM Director has issued new land exchange approval procedures via WO IM No. 98-42 (See Attachment 1). He has categorized exchanges into either routine exchanges or other than routine exchanges. Routine exchanges are described as exchanges: 1) where the value of the public lands is less than $500,000; 2) exchanges required by congressional legislation; or 3) exchanges that are the result of the Justice Department settlement actions.

Non-routine exchanges are any exchanges which are not required by congressional legislation or Justice Department settlement actions where the value of the public lands is $500,000 or more.

The following approval procedures for all land exchanges will be followed until further notice:


Routine Land Exchanges

A feasibility report, approved by the State Director (MT-920) in writing, is required for all new and/or pending exchanges which would be considered routine. This report must be prepared and approved prior to the publication of the Notice of Exchange Proposal (NOEP). Guidance on the preparation of feasibility reports is included in the BLM Land Exchange Handbook (H-2200-1) on pages 15-17. Please include the preliminary values for the public and private lands involved in the exchange in the feasibility report.

Non-Routine Land Exchanges

A feasibility report, issue summary paper, and appraisal summary report are required for all non-routine exchanges which require WO/Departmental approval.

Feasibiility reports will vary in length based upon complexity of issues, size of exchange proposal, numbers of exchange partners, etc. Use the guidance provided in the BLM Land Exchange Handbook to prepare feasibility reports.

Issue summary papers should be one or two pages in length, again based upon the complexity of the exchange. An example of an issue summary paper (Attachment 2) is attached for your use.



2

The appraisal summary will be prepared by the MSO Appraisal staff for submission to the WO.

Should you have questions regarding these requirements, please contact
Gary Leppart at 255-2936.

Signed by: Thomas P. Lonnie, Deputy State Director

Authenticated: Kathy Iszler, Staff Assistant (MT-924)

2 Attachments
1-WO IM No. 98-42 (10 pp in its entirety)
2-Issue Summary Paper (1 p)

Distribution
:
RAs - 1 w/attms.
SOMT - 1 w/o attms.


UNITED STATES DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
WASHINGTON, D.C. 20240

December 23, 1997


In Reply Refer To:
2100 (350/300) P
Ref. HB-2200-1

EMS TRANSMISSION 1/5/98
Instruction Memorandum No. 98-42
Expires: 9/30/99

To:        State Directors

From:        Director

Subject:    Land Exchange Processing

This memorandum replaces the Director's E-Mail of December 23, 1997, on land exchange processing. There are no changes in required procedures.

Several actions are pending regarding the processing of land exchanges within the Bureau. I recently convened a small working group to consider recommendations for improvements in the Bureau's land exchange program, including the possible establishment of a National Exchange Advisory Team. That working group has completed its report and I am currently reviewing its recommendations. In addition, there are other reports by independent parties which are expected shortly and which will probably include findings and recommendations that are critical of the Bureau's process. I expect to complete a full review of these reports and provide comments or changes in a timely manner.

Pending implementation of the BLM working group's recommendations, the following actions are effective immediately:

1. A feasibility analysis report, approved by the State Director, will be required for all land exchanges, in all States, prior to the publication of a Notice of Exchange Proposal (NOEP). If the NOEP has already been published and the feasibility analysis report has not been prepared, then a feasibility analysis report will be required prior to publication of the Notice of Decision (NOD).

2. Subject to paragraph 1 above, all states may proceed with necessary actions for routine exchanges. Routine exchanges are those where the value of public lands to be exchanged is less than $500,000, required by Congressional legislation or the result of Justice Department settlement actions.

Attachment 1

2

3. All States must submit feasibility analysis reports for other than routine exchanges for concurrence by the Assistant Director, Minerals, Realty and Resource Protection (AD-300). Guidance on the preparation of feasibility reports is included in the BLM Land Exchange Handbook (H-2200-1). The feasibility analysis report must be approved by the State Director.

4. Feasibility reports for all land exchanges where the public lands are expected to be valued at more than $2 million will require concurrence of the Director or the Assistant Secretary for Land and Minerals Management.

5. The issuance of any new NOEP or NOD for other than routine land exchanges will require the concurrence of AD-300, until further notice.

6. Pending title transfer actions for other than routine exchanges will require concurrence of the AD-300 prior to State Director approval of title transfer. Request for concurrence requires submittal of an approved feasibility analysis report, summary issue paper and an appraisal summary.

7. The AD-300 concurrence is required prior to the transmittal of any land exchange protest dismissal package from the State Director for Assistant Secretary consideration. Requests for protest dismissals will be closely reviewed by AD-300 prior to the submittal to the W.O. for processing.

These actions are critical to maintaining the credibility of our land exchange program and protecting the public interest. Further refinements and improvements to the land exchange program can be expected as we implement the recommendations from the land exchange working group and consider the results of other internal reviews. Your attention to these issues is significantly important to the future of our land tenure program.

Signed by:          &n bsp;          & nbsp;  Authenticated by:
Pat Shea          & nbsp;              Robert M. Williams
Director         &nb sp;          &n bsp;   Directives and Records
            ;          &nbs p;       Group,WO540


BUREAU OF LAND MANAGEMENT

PENDING LAND EXCHANGE ACTIONS

(December 97 - February 98)

12/23/97 1:00 pm

NAME PROPONENT LOCATION VALUE ROUTINE
(<$500,000)
AD-300 Review DEPARTMENT
REVIEW
Arizona
Saguaro National
Park
Tucson Mtn.
Associates
Tucson &
Phoenix, AZ
$8.2 million
X

Review Protests 1/98
Morenci Phelps Dodge Corp. Morenci, Az. $464,000
X

Protest Decision 12/97
California
California Desert Act State Lands Commission California
Desert
$25 million
X

NOEP 2/98
Cache Creek III CALBLMX & Rocky Mtm.ELK Cache Creek $5 million
X

NOD 2/98
Catellus- Palo Verde Catellus Colorado River $5 million
X

NOD 2/98
Western Riverside Riverside County Riverside County $512,000
X

NOD 2/98
P&V Phase 7 P&V Enterprises West Mojave $939,000
X

Closing 1/98
Catellus I Catellus West Mojave $ 5 million
X

NOD 1/98
Loomis Borax US Borax West Mojave $750,000
X

NOD 1/98
Eagle Mtn. Kaiser Eagle Mtn. Coachella Valley $317,000
X

Protest Decision 1/98
Justenson American Land Conservancy West Mojave $400,000
X

Closing 1/98
Orwick II/III TPL Sacremento
River
$785,000
X

Closing 12/97
Sierra Pacific II Sierra Pacific Redding, CA. $ 3 million
X

NOD 1/98
Aalfs Dan Aalfs Trinity County $800,000
X

NOD 1/98
Fort Sage State Fish & Game Fort Sage OHV area $691,000
X

Closing 1/98
Bertolli Bertolli N. California $400,000
X

NOD 2/98
Imperial County CALBLMX Imperial County $59,000
X

NOD 2/98
Folsom CALBLMX American River $ 2 million
X

Closing 2/98
North Fork
American River
CALBLMX American River $300,000
X

Closing 1/98
South Fork American River CALBLMX American River $580,000
X

Closing 2/98
Beauty Mtn. TPL Beauty Ntn. Wilderness $ 3 million
X

NOEP 1/98
McNoughton I McNaughton Coachella Valley $ 3 million
X

NOEP 1/98
Valley Rock Valley Rock & Sand Mecca Hills Wilderness < $500,000
X

NOEP 2/98
Silva Bob Silva Siskiyou $101,000
X

Closing 1/98
Lake Nacimiento Conservation Partners, Inc. San Luis Obispo County $354,000
X

NOD 12/97
Allen TNC Kern County $10,000
X

Closing 1/98
Sanctuary Forest Kermit Miller Humboldt County $295,000
X

NOD 2/98
Evenson Evenson/Smull N. California $450,000
X

NOD 2/98
South Fork Eel Kahn Eel River $400,000
X

NOD 2/98
Benton TPL Benton California $900,000
X

NOD 1/98
Colorado
Gateway Ranch The Conservation Fund Lake Fork of Gunnison $1.6 million X
Closing 12/97
Jerry Creek Reservoir Ute Water Conservancy Mesa County $350,000 X
Closing 2/98
Denver Water Board Shepherd & Associates Grand County $850,000 X
Closing 2/98
Jacques Dr. Jacques Grand County $4,000 X
Closing 2/98
Idaho
KBOI Radio Pacific Northwest Broadcasting Snake River Birds of Prey NCA $80,000 X
Closing 12/97
Blackfoot Mtn. State of Idaho Snake River $928,000 X
Closing 1/98
Watkins Donald Watkins Snake River Birds of Prey NCA $127,000 X
Closing 12/97
Montana
Two Crow Ranch I Rocky Mtn. Elk Missouri Breaks $486,000 X
Closing 12/97
Blackfoot River I TNC Blackfoot River $12 million X
Closing 1/98
Sacrifice Cliff The Conservation Fund Billings, MT $800,000 X
Agreement to Initiate 1/98
Beaverhead Ranch The Conservation Fund Dillon, MT $1.5 million X
Agreement to Initiate 1/98
Devils Elbow The Conservation Fund Helena, MT $525,000 X
NOD 2/98
Crow Boundary I/II Legislation Crow Reservation $1.8 million X
NOEP 2/98 (Legislation)
Nevada
Big Springs Ranch Big Springs Associates Wendover, NV $1.9 million
X

Review Protest 1/98
Indian Creek Western Resources Management Mary's River $446,000
X

Closing 1/98
Del Webb (Dreyfus) Del Webb Lake Tahoe & Las Vegas $ 12 million
X

NOD 2/98
Perma-Bilt Phase II-A Perma- Bilt (American Land Conservancy) Carson City Las Vegas $1.4 million
X

Review Protest 1/98
X
Protest Dismissal 1/98
Perma-Bilt (Dreyfus) Perma- Bilt (American Land Conservancy) Lake Tahoe & Las Vegas $ 5 million

X

NOD 2/98
RO Ranch Perma- Bilt (American Land Conservancy) Nye County $1.2 million
X

NOEP 12/97
(Dept. of Justice)
Volkmar I Carl Volkmar Red Rock Canyon NCA $ 16 million
X

NOD 2/98
Volkmar II Carl Volkmar Lake Tahoe $24 million
X

NOD 2/98
Falcon Pointe Kurt Goodfellow Ruby Lake NWR $903,000
X

NOD 2/98
Eldorado Canyon John Lawrence Carson City, NV $415,000
X

NOD 3/98
New Mexico
Ball Ranch NM State Lands Petrogliph
National Monument
$ 1 million
X

NOEP 2/98
Oregon
Mt. Hood Longview Fiber Mt. Hood, OR $ 15 million
X

Closing 12/97
(Legislation)
Wildwood Wonderland Preserve Salmon River $ 1.2 million
X

Closing 1/98
Harney County Harney County S.E. Oregon $10,000
X

Closing 2/98
Hancock John Hancock Mutual Life Oregon Coast Range $ 1 million
X

NOD 2/98
Clearwater II B Clearwater Land Exchange Grande Ronde River $4,500
X

Closing 2/98
Cline Falls II Deschutes County & Central Oregon Irrigation Deschutes River
Redmond, OR
$ 1.4 million X
NOD 2/98
Minam Clearwater Land Exchange Ninam River $96,000
X

Protest Decision 1/98
Utah
Zone 5 (Red Cliff) Richard Stowe Washington County $924,000
X

Closing 1/98
Gravel Pit State of Utah Washington County $1.9 million
X

Closing 1/98
Cox (Red Cliff) Waren Cox Washington County $3.5 million
X

Closing 2/98
Silver Reef (Red Cliff) James Doyle Washington County $5.4 million
X

Closing 2/98
Hurricane (Red Cliff) A.R. Spilsbury Washington County $150,000
X

Closing 1/98
Sand Hollow Washington County Water District Washington County $3.2 million
X

Closing 2/98
(Legislation)
Washington
Lincoln County Clearwater Land Exchange Spokane District $8 million
X

Closing 1/98
Hercules Ranch Rex harder Lincoln County $120,000
X

Closing 12/97
Palmer Mountain Palmer Mtm. Inc. Sililkameen River $142,000
X

Closing 2/98
Benton County State of Washington Central Washington State $2.5 million
X

NOEP 2/98
Wyoming
Raymond Mountian State of Wyoming Raymond Mtn. WSA $150,000
X

Closing 2/98
Evelyn Cummings Evelyn Cummings Casper $75,000
X

NOEP 2/98
Joe Collins Joe Collins Casper $120,000
X

NOD 1/98
60 Bar K 60 Bar K Ranch Casper $1.3 million
X

NOEP 2/98
Randall/Myron Jones Randall/Myron Jones Casper $2,500
X

NOEP 1/98
Ledder TNC Casper $246,000
X

Protest Decision 1/98


LAND Exchange Summary

EXAMPLE


December 31, 1997


NAME:          Two Crow Land Exchange, Phase I
            ; (Rocky Mountain Elk Foundation)

SERIAL NO.: MTM 87193(if serialized)
            ; 
Judith Resource Area, Lewistown District

STATUS:        Phase I completed FY98.

BACKGROUND:    The Two Crow Ranch is located 30 miles NE of Winnett, MT, and comprises over 18,000 deeded acres, and is an extremely popular hunting area. Other ranches sold in the area have been subdivided and public access has been eliminated. Rather than see this prime elk habitat area closed to the public, Rocky Mountain Elk Foundation agreed to participate in the exchange by purchasing the Two Crow Ranch for later transfer to BLM utilizing the land exchange pooling process.

BLM ACREAGE/Fair Market Value: 3,795.60 acres, $359,900 FMV

PRIVATE ACREAGE/Fair Market Value:
3600 acres, $360,000 FMV

GEOGRAPHIC AREA:
Offered Lands: Petroleum County, Montana

            ;      Selected Lands: disposal tracts in                  ;      southcentral Montana

PUBLIC BENEFIT:
The purpose of the exchange is to acquire private property adjacent to the Charles M. Russell National Wildlife Refuge in southcentral Montana that contains exceptional wildlife habitat for elk, mule deer, antelope, grouse, and other non-game species. The area contains yearlong elk habitat for both summer and winter ranges and for calving. Federal acquisition of this land will ensure future quality hunting opportunities and other recreational activities and allow for proper management of an exceptional wildlife habitat area.

FIELD CONTACT: Loretta Park

MSO CONTACT: Dee Baxter

Other: This exchange will be completed in two phases.

Attachment 2