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B-203504 1 (1981-07-22)

handle is hein.gao/gaobadajn0001 and id is 1 raw text is: 'NO -.MR- o 30 dam CONG.) COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C. 2548 In Reply Refer To: B-203504 July 22, 1931 The Honorable John Paul Ha-nerschmidt House of Representatives Dear Mr. Hammerschmidt: You requested our opinion concerning whether local governments are entitled to a share of the moneys derived from mineral leasing at nearby military installations. You refer to recent oil and gas leasing at Fort Chaffee, Arkansas, conducted by the Bureau of Land Management of the De- partment of the Interior. This was done with the consent of the Department of the Army in accord with a recent statutory change which permits such leasing on acquired lands of the United States used for military purposes. You indicate that the proceeds of approximately $43 million are to be de- posited as miscellaneous receipts in the General Fund of the U.S. Treasury. Apparently, this is the first of a number of similar leases to be awarded at military installations and may constitute an important precedent for future leases. Additionally, you refer to legislation introduced by you in the House of Representatives (H.R. 2990) and by Senators Bumpers and Pryor in the Senate (S. 859) which would distribute the proceeds of leases on acquired lands in the same manner as is now done for lands in the United States' public domain. The question of distribution of the proceeds of the Fort Chaffee lease relating to acquired lands is the subject of an action brought in the U.S. District Court for the Western District of Arkansas (C.A. 81-2097) by Fort Smith School District No. 100 and Greenwood School District No. 25 against the Secretaries of the Interior, Treasury and Defense. On June 26, 1981, the plaintiffs' motion for a preliminary injunction was denied. Although we understand that the court indicated doubt as to its eventual success, the suit was not dismissed. Ordinarily our Office declines to consider questions which are the subject of pending litigation. In this case, however, the necessity for legislation allowing distribution of a portion of lease proceeds from acquired lands used for military or naval purposes to state and local gov- ernments depends on whether such distribution is allowed under present law. Therefore, to assist the Congress in its consideration of H.R. 2990 and S. 859, we will consider the question presented in your submission. How- ever, a contrary decision on the merits in the pending litigation on Lie Fort Chaffee lease which is not appealed, would be controlling with respect to this case.

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