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B-164613 1 (1974-03-27)

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         OC A        COMPTROLLER GENERAL OF THE UNITED STATES
             y                 WASHINGTON.DC 25C...




   B-164613                                   March 27, 1974


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   The Honorable Charles A. Vea-a                               LM095940
   House df Rpresentatlves

Dear ki. Vanik:

        Your letter of March 6, 1974, requests our response to several
   questions concerning an agreement between the Secretary of the Interior
 wt ad officials of the State of Utah signed on February 22, 1974.

        As part of its Federal Prototype Oil Shale Leasing Program, the
   Department of the Interior is preparing to sell oil shale leases for two
   tracts of land in the State of Utah. Bids for the first Utah tract were
   opened on March 12, and bids on the second tract are scheduled to be
   opened on April 9.

        - These two tracts of land, among other tracts, are subject t indemnity
   selections by the State of Utah pursuant to 43 U.S.C. 851-852, which are
   now pending before the Interior Department. 43 U.S.C. 851-852 provides
   for selections by certain States of public lands in order to indemify
   such States for the loss of other specified public land sections origi-
   nally granted to them for school purposes upon their admission to the
   Union.                      N

        Utah's selections, including the two tracts here involved, ware sub-
   mitted to the Interior Department over a period of time from 1965 t6 1971.
   While the lands to be selected have been withdrawn from appropriation by
   past Executive orders, the Secretary of the Interior is authorized under
   section 7 of the Taylor Grazing Act, 43 U.S.C. 315f, to classify such
   lands for indemnity grants and to effect their transfer to the State.
   The Secretary has not yet acted upon Utah's selections. We understand
   that the Interior Department is presently considering aether the se-
   lections can or should be approved in view of the fact that the lands
   selected are considerably more valuable than the lost school sections
   upon which the State's Indemnity entitlements are based.

        The instant agreement between the Secretary of the Interior and the
   State of Utah states in paragraphs (1) and (2) that the Department may


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