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B-317292 1 (2008-10-10)

handle is hein.gao/gaobadapi0001 and id is 1 raw text is: I Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 B-317292 October 10, 2008 The Honorable Jeff Bingaman Chairman Committee on Energy and Natural Resources United States Senate The Honorable Jon Tester United States Senate Subject: Proposed Easement Amendment Agreement between the Department of Agriculture and Plum Creek Timber Co. In your request letter of June 24, 2008, you asked GAO to examine a proposed transaction between the Department of Agriculture (USDA) and Plum Creek Timber Co. (Plum Creek), under which the parties would enter into an agreement amending a large but undetermined number of easements Plum Creek holds on certain lands managed by USDA's Forest Service. In your request you asked GAO to examine a number of issues associated with this proposed transaction. This letter addresses some of these issues, as discussed below. The draft agreement's stated purpose is to clarify that Plum Creek may use these easements to access its own lands for any purposes, including specifically to provide access to residential subdivisions that may come to be located on these lands. These easements-conveyed to Plum Creek or its predecessors under the National Forest Roads and Trails Act of 1964 (FRTA), 16 U.S.C. §§ 532-538-are located in western Montana, where Plum Creek owns a substantial amount of land. While USDA and Plum Creek officials state that the agreement simply clarifies rights that Plum Creek already has, county officials and others in Montana have raised concerns that the agreement grants Plum Creek new access rights, and therefore, should be developed using a public process, particularly since in their view the agreement could lead to increased development in sensitive forest areas. There is general agreement that many of Plum Creek's lands in western Montana would have a substantially higher value if the amendment is carried out, because the clear provision for residential access would enhance these lands' value for residential development purposes. The draft agreement has not yet been executed. However, because the transaction may occur soon, and as agreed with your staff, we have prepared this letter in order to (1) describe the proposed transaction; (2) identify the key laws potentially affecting USDA's authority to proceed with the transaction; and (3) identify key

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