5509.11,21-21.84 Page 1 of 30 FSH 5509.11 - TITLE CLAIMS, SALES, AND GRANTS HANDBOOK WO AMENDMENT 5509.11-92-4 EFFECTIVE 8/3/92 CHAPTER 20 - SALES 21 - SMALL TRACTS ADJUSTMENTS. 21.01 - Authority. The Secretary of Agriculture, upon precedent determination that it is in the public interest, is authorized to sell, exchange, or interchange all right, title, or interest, including the mineral estate of the United States in National Forest System land, to resolve certain land ownership disputes associated with encroachments and land management problems associated with mineral survey fractions and road rights-of-way. (FSM 5570.11 and 36 CFR 254, subpart C.) 21.02 - Objectives. (FSM 5502). 21.03 - Policy. (FSM 5503). 1. Use these standards and procedures to make the prerequisite public interest determinations and carry out an effective and efficient program for resolving title claims and conveying qualified unmanageable tracts in response to applications or under initiated sales procedures. 2. Use applicable Small Tracts Act sale, exchange, or interchange authority to negotiate settlement of encroachment- type title claim cases or the equitable distribution of mineral survey fractions and certain road rights-of-way among or with abutting landowners. For this purpose the documented negotiations are deemed to be the same as an application under the Small Tracts Act. 3. Apply the public interest criteria, 36 CFR 245.36 (c)(6), to determine if negotiated sale, exchange, or interchange should be made to or with the occupants of mineral survey fractions who do not qualify as applicants (sec. 21.81a). 4. Provide opportunity for other agency input when making the public interest determination relative to conveying United States title, rights, or interest in National Forest System lands withdrawn for other agency purposes. 21.04 - Responsibilities. (FSM 5504). 21.05 - Definitions. (Sec. 05 of this Handbook and 36 CFR 254.31). 21.1 - Land Subject to Conveyance. The Small Tracts Act is not a general disposal authority. It is a relief authority designed to resolve specific title claim, encroachment, and other problems and to effect efficiency in administration and management of National Forest System land. All right, title, or interest, including the mineral estate, of the United States in National Forest System lands may be sold, exchanged, or interchanged under this Act if the sale or exchange may not be practicable under other authority of the Secretary and if all the following apply: 1. It meets the qualifying requirements for encroachment (36 CFR 254.32), road rights-of-way (36 CFR 254.33), or mineral survey fractions (36 CFR 254.34). 2. The conveyance of the land is in the public interest (36 CFR 254.36). 3. It is not affected by the limitations under 36 CFR 254.35. 21.11 - Initiating Transaction. Small Tracts transactions may be initiated by: 1. An application from or the negotiated settlement with any person who occupies or uses improvements encroaching on National Forest System land under claim or color of title, or any person who owns land abutting or underlying a road right-of-way, or who owns land interspersed with or adjacent to mineral survey fraction(s) inextricably connected to such land (sec. 21.2); or 2. In response to a Forest Service initiated sale, exchange, or interchange, based on a Land Adjustment Plan recommendations for conveyance of mineral survey fractions. Certain unsold road rights-of-way may fall under this section (sec. 21.8). 21.12 - General Procedures. The regulations, under 36 CFR 254.30, were designed to provide for accepting applications from persons encroaching on National Forest land and also from persons who own land that was inextricably connected with mineral survey fractions or connected with road rights-of-way without receiving a rash of unrelated applications from the general public. The term "applicant" also applies to a person involved in a documented encroachment, mineral survey fraction, or road right- of-way case found by a Forest Service Official to be amenable to a negotiated settlement under the Small Tracts Act. The regulations also provide a means for processing discretionary conveyances of certain mineral survey fractions under public sale procedures that would provide for protection of both the United States and other private interest or rights thereto. Use the specific guidelines in this section relative to encroachments, road rights-of-way, and mineral survey fractions, and either the direction under: 1. Section 21.2 for processing applications for encroachments and Forest Service negotiated title claim cases or 2. Section 21.8 for Forest Service initiated sale, exchange, or interchange of certain mineral survey fractions and road rights-of-way in the absence of an application, and 3. The general direction applicable to all transactions under sections 21.3 through 21.7, 21.9, and section 13.11. 21.12a - Encroachments. Process all encroachment applications and Forest Service negotiated title claim cases as applications under section 21.2. 21.12b - Road Rights-of-way. Process most road right-of-way applications under section 21.2. Process certain road rights-of- way for which no applications have been received and which need to be conveyed in the public interest under section 21.8. 21.12c - Mineral Survey Fractions. Process mineral survey fraction transactions in response to applications or pursuant to the direction provided in the Land Adjustment Plan. Use the following as a general guide for processing transactions involving mineral survey fractions: 1. Applications. Process applications received for mineral survey fraction(s), which have distinguishable occupancy and use bounds related to the private estate of adjacent landowner(s), under section 21.2. Hold applications received in complex mineral survey fractions areas, which will require land adjustment planning to make prerequisite public interest determinations, until conveyances can be accomplished according to the plan. Use section 21.2 to process cases identified as falling under the above type criteria and use section 21.8 to process the conveyance of tracts found suitable for competitive or restricted sale. See section 21.81a for more detailed information on mineral survey fraction criteria. 2. Forest Service Initiated Transaction. Use section 21.8 for processing mineral survey fraction and certain road right-of- way cases identified as being in the public interest pursuant to land adjustment planning and for which no application has been received. 21.2 - Applicant Initiated or Negotiated Transaction. An application for conveyance of National Forest System lands must be in writing (36 CFR 254.40). An applicant may use the format in exhibit 01 for submitting a written request. The format may be modified and used to document a proposed settlement. Documented encroachment, mineral survey fraction, or road right- of-way cases amenable to negotiated settlement under the Small Tracts Act shall be deemed to be under written application for the purposes of this chapter. The term applicant when used in this section applies also to any person involved in a negotiated settlement. 21.2 - Exhibit 01 UNITED STATES DEPARTMENT OF AGRICULTURE FOREST SERVICE SMALL TRACT APPLICATION Applicant wishes to acquire title to National Forest System lands under provisions of the act of January 12, 1983 (96 Stat. 2535; 16 U.S.C. 521C). 1. Name of applicant(s): John and Jane Doe 2. Address: Apartment #10 349 Placer Drive Tintic, Colorado 39478 3. Telephone Number: (123) 456-7890 4. Applicant's proposal (attach sketch map): Purchase 1.5 acres to cover my improvements as shown on the map or interchange a 2 acre parcel on my south boundary for the road right-of-way strip across my land. 5. Attached is a copy of applicant's title document(s) to the claimed property. 6. (If applicable) To the best of applicant's knowledge and belief, (the encroachment occurred as the result of erroneous survey, title search, or deed description, and so forth.) or (my survey plat indicates that my property boundaries include parts of these mineral survey fractions.) 7. (If applicable) Applicant or predecessor in title first became aware of the encroachment on National Forest System land on (state circumstances putting applicant on notice). 8. (If applicable) State date encroaching improvements were constructed. 9. Applicant understands that if this case is determined to be eligible for processing by the United States, the applicant shall bear all reasonable costs of administration, survey, and appraisal incidental to the conveyance. 21.2 - Exhibit 01--Continued 10. Applicant further understands that in consideration for a conveyance of lands the United States may accept land, interest in land or cash, or any combination thereof, as payment for the lands conveyed. Signed this 10th day of January, 1984. Signed: John and Jane Doe Filed this 10th day of January, 1984, at 10:30 a.m. in the office of the Big Tree Ranger District, Evergreen National Forest by Signed: Jeff Doe (Signature) Jeff Doe (typed) Title District Ranger (or other official) 21.21 - Attendant Facts. 1. When possible an applicant should provide pertinent title documents such as deeds, title insurance documents, affidavits, surveys, and existing documents describing the lands involved in an encroachment or evidence of title to adjacent lands or the right of occupancy and use of the tract involving road rights-of- way or mineral survey fractions. 2. The applicant may include copies of affidavits, letters, or statements explaining circumstances, such as any efforts by the original locator or a successor to survey and locate the property boundaries. Also to verify occupancy and use of the tract in conjunction with the owners lands or as the result of other right of occupancy or use. 3. Use the pertinent parts of sections 12, 13, and 21.4 as guidelines to identify and assemble the facts necessary to support the application or negotiated settlement. A copy of these guidelines may be provided to the applicant in a convenient format when needed or requested. 21.22 - Special Considerations Applicable to Encroachment Cases. 21.22a - Predecessor(s) In Title. In certain cases the factors for consideration under 36 CFR 254.32(b) may apply to predecessor(s) in title who constructed the improvements now owned by the applicant or to both. 21.22b - Developed Subdivisions. 1. Apply the degree of development factor, 36 CFR 254.32(b)(4), to the entire subdivision encroachment area as a unit. The resulting unit determination applies equally to each individual lot owner within the encroaching subdivision unit. 2. Treat an individual lot owner totally within the subdivision encroachment unit as an abutting landowner under 36 CFR 254.35f. 21.22c - Boundary Location. In determining property boundary status, consider evidence of surveys conducted to locate property boundaries in accordance with time related local customs and practices and the historic location, acceptance, and maintenance of the boundaries so located. 21.22d - Evaluation of Facts. Use normal title assurance procedures along with FSH 5509.11, section 12 and section 13, as the guide for developing and evaluating the facts and evidence relative to encroachment situations (36 CFR 254.32). 21.23 - Action on Proposal. Upon receipt of a application for transfer of lands or when a title claim settlement is proposed (sec. 13.72), the authorized Forest official must: 1. Assign the case a number for reporting purposes (sec. 21.9). 2. Review the factual evidence submitted with the application or included in a title claim case. 3. Determine if the evidence and attendant facts meet the applicable requirements of 36 CFR 254.32, 254.33, 254.34, 254.35, and section 21.2. 4. Determine outstanding rights, interests, claims, withdrawal, reservations, special-use permits, and other elements of land status which affect the lands. Revocation of withdrawals is not required under the Small Tracts Act. The holding agency must be consulted in determining if the conveyance would serve the public interest. 5. Determine if the transfer of lands is in the public interest. 6. Whenever necessary negotiate a modification of the proposal or attach conditions to the conveyance if such a change will yield an acceptable transfer of lands. 7. Deny or accept the proposal within 30 days of application or advise applicant that a longer period will be necessary. 8. Report the final case disposition under section 21.9. 21.23a - Denial. When denying an application the Forest official shall explain in writing, the reasons the proposal is not acceptable and shall inform the applicant of appeal rights. 21.23b - Acceptance. When accepting an application or proposing a title claim settlement, the Forest official shall notify the applicant or claimant and provide written instructions (use of a conveyance agreement (sec. 21.32) is optional) for processing the transaction such as: 1. Description and estimate of reasonable costs of conveyance services to be borne by the applicant. 2. Conditions required in the deed to protect encumbrances such as existing easements or permits and/or Federal occupancy and use. 3. Procurement instructions and standards for needed: a. Title evidence (sec. 21.41). b. Property valuation (36 CFR 254.42, and sec. 21.5). c. Survey and property description (36 CFR 254.43, and sec. 21.6). 4. Closing instructions regarding: a. Conveyance document(s) (sec. 21.7). b. Payment procedures (FSM 1584, FSH 1509.11 and sec. 21.31). c. Recording requirements (sec. 21.74). 21.3 - Conveyance Costs. The recipient of a conveyance shall bear all reasonable costs of administration, survey, and appraisal incidental to the conveyance as determined by the authorized Forest Service Official. Exclude indirect overhead, administrative, or other costs or services associated with internal Forest Service processing of conveyances or other costs or services principally benefiting the United States instead of the applicant. The Regional Forester may in limited circumstances waive conveyance costs. A waiver may be appropriate, for example, where evidence is clear that the Federal Government made a mistake in a survey, title search, or other conveyance procedure which resulted in an encroachment. 21.31 - Method of Bearing Costs. Determine for each case the extent of reasonable conveyance costs and the appropriate method that will be required of the recipient of a conveyance to bear those costs. Consider the following when choosing the appropriate method(s) for the recipient to bear the costs of a conveyance: 1. Recipient performs the required conveyance services under instructions provided by the Forest Service. 2. Recipient voluntarily requests that the Forest Service perform certain services that can in certain cases be mutually agreed to under collection agreement (FSM 1584, and FSH 1509.11). Use this procedure to collected funds or to cover services rendered, only upon approval of the Regional Fiscal Agent. 3. Forest Service performs certain work or services and collect the cost of those services from the recipient. Collected funds must be deposited in the miscellaneous receipts of the Treasury. 4. Any combination of the above. 21.32 - Optional Conveyance Agreements. Use a conveyance (sale, exchange, or interchange) agreement as needed to document the terms of a proposed conveyance, such as: financing a survey, appraisal, and/or administrative expenses; compensation for the land conveyed; conditions required in the deed to protect existing or future interest; procurement instructions; and so forth. The use of and contents of agreements are dependent on the individual circumstances of each case. If used, they may include but are not limited to provisions for: 1. Non-Federal party requesting Forest Service accomplish the surveys and/or appraisals under collection agreement. 2. Non-Federal party providing appraisals or surveys in compliance with written instructions and standards provided by the Forest Service. 3. Forest Service providing a Statement of Approximate Equal Value. 4. Non-Federal party providing title insurance for non- federal lands. 5. Non-Federal party executing road and utility easements. 6. Non-Federal party obtaining or executing waivers for special-use permits, grazing permits, and/or mining claims. 7. Non-Federal party providing the required consideration for the lands sold, exchanged, or interchanged. 21.32a - Applicant or Negotiated Transactions. Exhibit 01 provides guidelines for preparing conveyance agreements for cases processed under applications and for Forest Service negotiated public sale, exchange or interchange cases. Exhibit 02 contains additional provisions that may be used. Modification of these provisions, if used, or drafting of new provisions may be necessary to address specific circumstances. Structure each conveyance agreement for the individual case at hand. 21.32a - Exhibit 01 SMALL TRACT CONVEYANCE AGREEMENT THIS SALE AGREEMENT, made and entered into this 10th day of July 1986, by and between John Doe hereinafter referred to as the Applicant; and the United States of America, acting by and through the Forest Service, U.S. Department of Agriculture, hereinafter referred to as the Forest Service: WITNESSETH: WHEREAS, This agreement is executed pursuant to the provisions of the Small Tracts Act of January 12, 1983 (96 Stat. 2535; 16 U.S.C. 521c), and WHEREAS, The public interest will be served by transfer of a tract of land in the Aquarius National Forest. NOW, THEREFORE, in consideration of the terms and conditions of this agreement, the parties hereto agree as follows: A. The Applicant shall: (Note: The following are examples. Add, delete, or modify to meet your specific needs or requirements.) 1. Provide an accurate legal description and acreage for each of the two tracts of Federal land to be conveyed. 2. Provide an appraisal of fair market value for each of the two tracts of Federal land to be conveyed. Said appraisals must conform to existing appraisal standards for Federal Land Acquisitions. Said appraisals must also conform to any special instructions provided in written form by the Forest Service. 3. Execute a waiver of the Special Use Pasture Permit issued to the depositor on January 12, 1984. 4. Execute an easement for powerline purposes covering the location of the existing powerline located on the two tracts of Federal land to be conveyed. Said easements are to be executed in favor of Black Hills Power Company. 5. Accept and pay the estimated value of the subject land as indicated by the approved appraisal of said land. B. The Forest Service shall: 1. Prepare and execute a quitclaim deed to the subject land upon approval of all required documents and upon receipt of a consideration at least equal to the appraised land value. 21.32a - Exhibit 01--Continued C. Other terms and conditions: 1. The United States of America shall not be liable for any damage incident to the performance of work under this agreement to any depositors or landowners who are parties to the agreement, and all such depositors or landowners hereby expressly waive any and all claims against the United States of America for compensation for any loss, damage, personal injury, or death occurring on consequence of the performance of this agreement. 2. This agreement shall be effective upon execution by both parties hereto. 3. This agreement will remain in full force and effect until conveyance of the subject land or unless mutually terminated by both parties. 4. In case of termination of this agreement, any Funds on deposit shall be available for expenses incidental to closing out the work beyond the period of written notice. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date written below. July 2, 1986 (Applicant's signature) Date Applicant July 2, 1986 (Forest Supervisor's signature) Date Forest Supervisor, Aquarius National Forest 21.32a - Exhibit 02 OPTIONAL PROVISIONS FOR CONVEYANCE AGREEMENTS A. The Applicant agrees to: 1. (Survey). Provide funding of $546.00, in accordance with the terms of the Collection Agreement dated June 22, 1986 to cover the cost of a metes and bounds survey and preparation of a survey plat. (Use the same general wording to cover collection agreements for other services as applicable.) Provide a metes and bounds survey and survey plat. Said survey and survey plat shall conform with existing State standards and to the special instructions provided in written form by the Forest Service. 2. (Mark and post). Mark and post the boundary of the Federal land to be conveyed. Said marking and posting shall conform to written instructions provided by the Forest Service. 3. (Mineral Exam). Provide mineral examination and report for the Federal land to be conveyed. Said mineral examination and report shall conform to standards outlined in the BLM Mineral Examiner's Handbook. 4. (Appraisals). Provide an appraisal of equal value for the Federal land to be conveyed. Said appraisal shall conform to existing appraisal standards as contained in the 1973 Interagency Land Acquisition Conference booklet entitled "Uniform Appraisal Standards for Federal Land Acquisitions" and to special instructions provided in written form by the Forest Service. Provide an appraisal of fair market value for the Federal land to be conveyed. Said appraisal will conform to existing appraisal standards as contained in the 1973 Interagency Land Acquisition Conference booklet entitled "Uniform Appraisal Standards for Federal Land Acquisitions" and to any special instructions provided in written form by the Forest Service. 5. (Waiver). Provide a waiver of the Special-Use Authorization issued to (Holder's Name) on (Date) for the purposes of (Description of authorized use) . 21.32a - Exhibit 02--Continued Provide a waiver of (Number) Animal Unit Months of authorized grazing use on the (Name) Grazing Allotment. Said waiver is to be executed by (Name) , the authorized permittee. 6. (Execute Easement). Execute an easement for (For example road, powerline and so forth.) purposes covering the location of the existing (List facilities) located on the Federal land to be conveyed. Said easement is to be executed in favor of (Existing holder) . 7. (Payment). Accept and pay the value of $1,490.00, for the subject land as indicated by the approved appraisal of said land. Accept and pay the value of $34,490.00, for the subject land as indicated by the approved appraisal of said land in six equal installments as herein provided. (Provide agreement language here.) Accept the value of $34,490.00, for the subject land as indicated by the approved appraisal of said land and make payment for that amount in (land, interest in land, or any combination thereof) as herein provided. (Provide agreement language here.) 8. (Title evidence). Provide title evidence in conformance with written instructions provided by the Forest Service for non-Federal lands to be conveyed to the United States and described as follows: (Legal Description) The non-Federal party shall: Execute a deed to be provided by the Forest Service conveying the offered non-Federal land to the United States. 21.32b - Public Sale Transactions. Exhibit 01 provides guidelines for preparing sale agreements for cases resulting from public sales. May be used with cases processed under 21.8. 21.32b - Exhibit 01 SMALL TRACT CONVEYANCE AGREEMENT THIS SALE AGREEMENT, made and entered into this 3rd day of January, 1986, by and between Joan Doe , hereinafter referred to as the Purchaser, and the United States of America, acting by and through the Forest Service, U.S. Department of Agriculture, hereinafter referred to as the Forest Service. This agreement is hereby executed pursuant to provisions of the Small Tracts Act of January 12, 1983 (96 Stat. 2535; 16 U.S.C. 521c); WITNESSETH: WHEREAS, a tract of land, described as Small Tract Sale Offer Number R3-45-99-86, was offered for sale to the public at a minimum bid price of $1,500.00 ; and WHEREAS, the Purchaser offered the highest cash price of $1,640.00 for said tract, and WHEREAS, the Purchaser has deposited $410.00 , 25% of the total bid price, and WHEREAS, the General Sale Terms and Conditions of the Offer require the Purchaser to bear the cost of certain work and services required to convey the Tract. NOW THEREFORE, in consideration of the terms and conditions of this Agreement, the parties agree as follows: A. The Purchaser shall: 1. Make payment in the amount of $1,230.00 on or before October 10, 1988. Said payment along with the amount now held in deposit shall constitute full payment of the bid price for the following described property: (Insert Property Description) 2. Make payment in the amount of $350.00 into special account number_ , to reimburse the Forest Service for performance of the following work or services; a. The administrative cost of $50.00 for (Title search and preparation of curative documents). b. The cost of $200.00 , for a metes and bounds survey. c. The cost of $100.00 , for an appraisal of the tract to be conveyed. 21.32b - Exhibit 01--Continued 3. If the tract(s) cannot be located and are being sold on basis of existing mineral surveys, for example, add the following or similar statement: Acquires and accepts these unsurveyed tract(s) from the United States without warranty, expressed or implied, as to quantity, kind, character, quality, size, description, or fitness for any use or purpose of any of the tract(s). B. The Forest Service shall, upon receipt of payment from the Purchaser, execute and deliver a quitclaim deed conveying the herein described property to the Purchaser. C. Other terms and conditions: 1. This agreement shall be effective upon execution by both parties. 2. This agreement shall remain in full force and effect until October 10, 1986, or until the herein required payments are made and a quitclaim deed is issued, whichever comes first. 3. If the Purchaser does not make the required payments by the date shown in the preceding paragraph, this agreement shall terminate of its own accord and the bid deposit of $410.00 shall be retained by the United States of America as liquidated damages. IN WITNESS WHEREOF, the parties hereto have executed this agreement. /s/ Purchaser /s/ Forest Official 21.4 - Title Approval for Acquired Lands. To implement the Small Tracts Act, the Office of the General Counsel has established the following title standards for acquired lands: 1. Lands Valued Under $50,000. a. A last-owner's search that discloses the last owner of record and any encumbrances against the title since last owner of record, may be accepted as satisfactory title evidence. b. Conveyances to the United States may be by quitclaim deed when approved by the responsible Office of the General Counsel field office. 2. Lands Valued Over $50,000. a. A title insurance policy is mandatory. b. Conveyances to the United States must be by warranty or grant deed. 3. All conveyances from the United States must be by quitclaim deed, regardless of the value of the land involved. 21.41 - Title Evidence. 1. For last-owner's search, any acceptable title document may provide evidence of title in accordance with State bar standards. These include title insurance, certificates of title, attorney certificates or abstracts that either abstract or ensure the last title instrument of record, and any subsequent conveyances or encumbrances affecting title. 2. Title evidence must show all reservations, exceptions, restrictions, limitations or other rights, interests, conditions or liens affecting title before the period of search, but disclosed by instruments recorded within the period of search. 21.42 - Standards. 1. Observe State and local law otherwise required for marketability of title. 2. Follow the title standards promulgated by the Department of Justice in the pamphlet entitled, "Standards for the Preparation of Title Evidence in Land Acquisition by the United States" in all acquisitions over $50,000 except those expressly waived. 3. The applicant shall either secure or arrange for the title evidence required by the Office of the General Counsel. 4. The Forest Service shall handle the actual closing or direct the closing through escrow instructions. Request legal assistance from the Office of the General Counsel as needed. 21.5 - Property Valuation. 1. The consideration accepted for conveyed lands may be in the form of lands, interest in lands, cash, or any combination thereof. 2. The value of the consideration accepted in the case of interchange shall be approximately equal in value or in the case of a sale or exchange, at least of equal value to the land or interest conveyed (36 CFR 254.42). 21.51 - Approximate Equal Value. The direction in 36 CFR 254.42a provides the simplified procedure for determining values for interchanges. Use Approximate Equal Value only for inter-change cases. Prepare a statement of Approximate Equal Value by comparing and evaluating the elements of value on the lands to be interchanged. Elements of value to consider are size, shape, location, physical attributes, functional utility, proximity of other similar sites, and amenities in the immediate environs of the tracts. The authorized officer must approve the Statement of Approximate Equal Value before the applicant signs it. Exhibits 01 and 02 provide a sample Statement of Approximate Equal Value. 21.51 - Exhibit 01 SMALL TRACTS ACT (ACT OF JANUARY 12, 1983) Region 9 Applicant John Doe Forest Aquarius Address 309 Elm District White Cloud Birchville, NY 39047 Case No. 392486 STATEMENT OF APPROXIMATE EQUAL VALUE This interchange with John Doe proposes to interchange a 3.03 acre tract of National Forest land to eliminate an encroachment, for a tract of approximately equal value off the south side of the private tract, as shown on the attached plat. The National Forest land encroached upon is a 100-foot strip along the south side of the SENE Section 6, T. 38 N., R 18 W., 6th P.M., consisting of approximately 3.03 acres. The tract to be acquired is 100-foot strip along the south side of the NESE of the same section. Terrain, soils, timber cover, and access are virtually the same on both parcels, and as they are equal in area, they are considered approximately equal in value. Jill Durango Forest Supervisor 3/13/86 Accepted: Date John Doe Applicant 3/13/86 Date SMALL TRACTS ACT (ACT OF JANUARY 12, 1983) Region 9 Applicant John Doe Forest Aquarius Address 309 Elm District White Cloud Birchville, NY 39047 Case No. 392486 Legal Description: T.38., R. 18 W., 6th P.M., Section 6 Federal Land South 100 feet of the SENE Non-Federal Land South 100 feet of the NESE INTERCHANGE PLAT (Insert interchange survey plat.) Scale: 1 inch = 50 feet By: DMB Date: July 9, 1986 21.51 - Exhibit 02 SMALL TRACTS ACT (ACT OF JANUARY 12, 1983) Region 9 Applicant Joe Doe Forest Aquarius Address 319 Elm Street District White Cloud Birchville, NY 34907 Case No. 394786 STATEMENT OF APPROXIMATE EQUAL VALUE This interchange with Joe Doe proposes to interchange 0.8-acre mineral fraction of National Forest land for a 1.6-acre parcel of private land, as shown on the attached plat. The 0.8-acre Federal mineral fraction is level to gently rolling terrain, with good access. The 1.6-acre private parcel is a strip along the west edge of Mr. Doe's 12-acre lot, with fairly steep, rocky terrain. Because of the terrain it has lesser utility; therefore, both parcels are considered approximately equal in value. Approved: Jill Durango Forest Supervisor 3/13/86 Date Accepted: John Doe Applicant 3/13/86 Date SMALL TRACTS ACT (ACT OF JANUARY 12, 1983) Region 9 Applicant Joe Doe Forest Aquarius Address 319 Elm District White Cloud Birchville, NY 34790 Case No. 394786 Legal Description: T. 9N, R. 10W, Section 10 Subdiv. NENW (or survey descriptions attached) INTERCHANGE PLAT (Insert copy of interchange survey plat). Scale: 1 inch = 50 feet By: DMA Date: July 9, 1986 21.52 - Equal Value. 1. In addition to the direction in 36 CFR 254.42b, the following items apply in determining the sale of parcels when an encroachment area is part of a larger parcel of National Forest System land: a. Use short form appraisal or statement of value, as appropriate. The limitation is the value of the lands encroached upon. b. Appraise the National Forest land adjoining and including the area of encroachment. c. Use the size of sales available in the market to determine the size of the larger parcel. d. Limit the size of the parcel appraised to not less than 40 acres nor more than 320 acres unless the size of the parcel to be conveyed plus all adjoining National Forest land is less than 40 acres. In this situation, identify the entire parcel of National Forest land as the larger parcel. e. Estimate the value the encroachment area contributes to the larger parcel. 2. The "Limiting Conditions and Assumptions" section of appraisal reports for encroachments shall include the following statements: a. The valuation process does not include applicant- owned and/or applicant-controlled improvements on the encroached area. b. The subject property is assumed to be (size of larger parcel - see item d, sec. 21.52) acres in size as determined by market sales and characteristics of National Forest land adjacent to and including the encroachment area. 3. Equal value for mineral survey fractions and road rights- of-way must be determined by an appraisal of fair market value. 21.6 - Survey and Property Description. All new surveys, whether metes and bounds surveys or aliquot parts surveys, shall be conducted in compliance with 36 CFR 254.43, and shall be performed and recorded as specified by either Federal regulations or State laws. Monumentation, marking, and posting are required for all new National Forest boundaries resulting from a conveyance including cases where conveyances are based on existing surveys. 21.61 - Standards. Conduct new surveys to standards required by State law. Monument mark and post accomplished to appropriate Forest Service standards. Appropriate instructions, including standards, must be supplied to private surveyors contracted by applicants. 21.62 - Description Using Existing Surveys. Use existing surveys to describe tracts to be conveyed, whenever possible, as follows: 1. By reference to, or by descriptions derived from, adjoining patented land surveys, such as mineral surveys. 2. By tracts or lots depicted on a survey plat; such as: a. Lots 3-6, section 16. b. Tract C, Homestead Entry Survey No. 495, section 18 and 19. 3. By description used to acquire road rights-of-way. 21.63 - Description by Exception In Conveyance Document. Certain rights-of-way and mineral fractions may be described by the language used in a former patent or deed issued by the United States. 21.64 - Description of Fractions Within Aliquot Parts. Certain parcels of National Forest System lands within an aliquot parts description may be described as, for example, ". . . all those mineral survey fractions owned by the United States within the NE 1/4, SW 1/4, section 10 . . . ." 21.7 - Conveyance Document 21.71 - Type of Document. Make conveyances to or from the United States by following the direction and examples in exhibit 01. 21.71 - Exhibit 01 (QUITCLAIM 1/) DEED THIS DEED, made this 3rd day of October, 1986, between the United States of America, acting by and through the Forest Service, Department of Agriculture, hereinafter called Grantor, and Jane Doe, (Marital Status) , hereinafter called Grantee. WITNESSETH: The Grantor is authorized to convey certain National Forest System lands by the act of January 12, l983 (96 Stat. 2535; 16 U.S.C. 521c). NOW THEREFORE, the Grantor, for and in consideration of (Insert Consideration 2/), the receipt whereof is hereby duly acknowledged, does hereby remise, release, and quitclaim unto the Grantee, its successors and assigns (Insert type of property 3/), in and to the real property situated in the County of Brunswick, State of New York, described as follows: (Insert Legal description of land or interest in land to be conveyed. 4/) (Insert appropriate reservations, conditions, terms, or covenants) (Insert outstanding rights.) IN WITNESS WHEREOF, the Grantor, by its duly authorized representative has executed this deed pursuant to the delegation of authority promulgated in Title 7 CFR 2.42 and 49 F.R. 34283, August 29, 1984. UNITED STATES OF AMERICA By: (Signature of authorized executor) (Type in the name of the authorized executor) (Type in title of executor; Regional Forester or Forest Supervisor, for instance.) (Type in name of National Forest or Region) Forest Service United States Department of Agriculture ACKNOWLEDGMENT (The form and content of the acknowledgement to conform to State laws.) UNITED STATE OF AMERICA ) ) ) ) SS DISTRICT OF COLUMBIA 21.71 - Exhibit 01--Continued Before me, the undersigned , on this day personally appeared , , Forest Service, United States Department of Agriculture, known to me to be the person whose name is subscribed to and who executed the foregoing instrument, and acknowledged to me that execution of the same was for the purpose and consideration therein expressed as the act and deed of the United States of America. Given under my hand and seal on this day of , 19 . 1/ Insert QUITCLAIM DEED in all cases when United States is disposing of land or interest in land. 2/ Insert the proper consideration such as: a. ". . . the sum of dollars ($ ). . ." for cash sales. b. ". . . the conveyance to it by the Grantee of (1), (2), or (3). . . ." (1) Lands in the county or counties and State as stated in the deed to the United States. (2) The specific interest in land in the county or counties and State as stated in the deed to the United States. (3) Include the cash equalization payment where appropriate with (1) and/or (2). Use ". . . and the sum of dollars ($ ). . . ." 3/ Insert type of property, for instance: a. When land is to be conveyed insert ". . . all its right, title, interest, and claim. . . ." b. When interest is to be conveyed insert ". . . interest. . . ." 4/ Insert the legal description of the land or interest in land to be conveyed. a. For descriptions not requiring a survey, use standard area clause at the end of the description. b. For metes and bounds descriptions and others requiring surveys insert "Containing acres, more or less, according to the plat entitled (name plat) , dated attached hereto and made a part hereof." 21.72 - State and Local Requirements. Adapt the proposed form to conform with State and local legal requirements. 21.73 - Delivery. Deliver executed deeds to the applicant upon receipt of acceptable payment for the lands in cash, land or interest in lands, or any combination. 21.74 - Recording. Deeds to the United States must be recorded prior to being accepted as payment. 21.75 - Filing and Posting. File a copy of the recorded deed(s) and other title documents in a permanent title file (FSM 5591.2) and post the landownership status record (FSM 5590). 21.76 - Notice to the Bureau of Land Management. Submit a copy of the recorded deed and survey plat to the Bureau of Land Management State Office as needed. 21.8 - Forest Service Initiated Transaction. Use this section as the guide to process the conveyance of mineral survey fractions and certain road rights-of-way identified in the land adjustment plan for conveyance under the Small Tracts Act (36 CFR 254.41). 21.81 - Type of Transaction. In the absence of applications from abutting landowners and after public notice, dispose of qualifying mineral survey fractions or road rights-of-way as needed to resolve management problems through (1) negotiated sale, exchange, or interchange or (2) competitive sale (36 CFR 254.41). 21.81a - Negotiated Sale, Exchange or Interchange. Use a negotiated sale, exchange, or interchange or any combination thereof when in the opinion of the authorized Forest Official, the public and private interest and resolution of management problems would be best served by such method. For example, consider the following types of tracts for negotiated sale, exchange, or interchange: 1. Tracts identified as being needed by State, local, or other government entities or nonprofit organizations or for other public purposes. 2. Tracts needed by an authorized user to protect the user's interests. 3. Certain tracts, surrounded by non-Federal lands without public access, which because of size shape and location are not amenable to viable ownership or occupancy and use separate from the abutting non-Federal lands. 4. Tracts with similar or a combination of the preceding type situations that create public and private interests requiring protection from competitive sale exposure. For example, a developed subdivision with mixed private and local government ownerships, or a ski area complex built on the adjoining private lands. 21.81b - Competitive Public Sale. Use either competitive or restricted competitive sale based on the following guidelines: 1. Use competitive sales when competition is likely and there is no overriding need to restrict the competition or make a negotiated sale, exchange, or interchange. 2. Where equitable and fair to existing user(s) or adjoining landowner(s), use a restricted sale as needed to permit them to match, if so desired, high public bid or, if appropriate, limit the number of bidders to affected user(s) or adjoining landowner(s). 21.82 - Analyses. Conduct studies of tracts, individually or within logical project areas, to determine eligibility of the tracts for conveyance under 36 CFR 254.41 and to verify that the conveyance(s) would meet the limitation and public interest requirements of 36 CFR 254.35 and 254.36. Incorporate findings on project areas in the landownership adjustment plan. Examine all lands eligible for conveyance to identify potential conflicts; such as, mining claims or mineral leases, special uses, Forest Service administrative facilities, cultural resources, threatened and endangered species of plants and animals, or floodplains or wetlands, and so forth. Identify measures needed to eliminate, resolve, or mitigate adverse impacts such as: 1. Conflicts with mining claims and/or mineral leases. 2. Conflicts with special uses, easements, reservations, and other encumbrances. 3. Continued use or occupancy or suitable alternative location for sites occupied or used by the United States. 4. Impacts on cultural resources in compliance with the National Historic Preservation Act, 36 CFR 800, and the Programmatic Memorandum of Agreement, regarding implementation of the Small Tracts Act approved by the Advisory Council on Historic Preservation November 2, 1985. 5. Conflicts with the requirements of Executive Order 11988 (floodplains) and Executive Order 11990 (wetlands). 6. Conflicts with Endangered Species Act and 50 CFR 402. 7. Environmental effects of the proposed conveyance and alternatives required by the National Environmental Policy Act (NEPA) of 1969 (P.L. 91-190). For categorical exclusions from documentation see FSM 1952.2. Apply the above listing to assess the factors necessary to determine the appropriate conveyance method(s) for, and the tract(s) to be included in, each case. Provide the necessary supportive background information for negotiating and processing each case by negotiated sale, exchange, or interchange, or by a competitive sale. 21.83 - Reports. Assemble all relevant data for each transaction into a report including: 1. An accurate description of the tract(s) and tract survey(s) if needed. 2. Appraisal of fair market value or documentation of approximately equal value for interchange. 3. Tract administrative information pursuant to section 21.82. 4. Measures needed to eliminate, resolve, or mitigate adverse impacts and encumbrances. 5. Environmental assessment or categorical exclusion finding (FSM 1952.2). 6. Incidental costs of conveyance: a. Conveyance documents b. Boundary survey c. Appraisal 7. Recommendations and supporting information for the type of transaction to be conducted. 21.84 - Procedure. Based on the preceding criteria, analyses and reports formalize and process the conveyance transaction beginning with the public notice pursuant to section 21.85. After the public notice, convey the land to: (a) the successful party involved in a negotiated sale, exchange, or interchange or (b) the successful bidder(s) in a competitive sale proposal (21.86). In either case: 1. Assign the case a number for reporting purposes (sec. 21.9). 2. Provide procurement instructions and standards for needed: a. Title evidence (sec. 21.41). b. Property valuation (36 CFR 254.42 and sec. 21.5). c. Survey and property description (36 CFR 254.43 and sec. 21.6). 3. Include closing instructions regarding: a. Conveyance document(s) (sec. 21.7). b. Payment procedures for the reasonable costs associated with the conveyance and for the consideration made for the estate conveyed (FSM 6531 and sec. 21.3). c. Recording requirements (sec. 21.7). 4. Report the final case disposition (sec. 21.9).