SEC. 403. WITHDRAWAL OF CERTAIN FEDERAL LAND AND INTERESTS 
IN CERTAIN FEDERAL LAND FROM LOCATION, ENTRY, 
AND PATENT UNDER THE MINING LAWS AND DISPOSITION 
UNDER THE MINERAL AND GEOTHERMAL LEASING 
LAWS. 
(a) DEFINITIONS.—In this section: 
(1) BUREAU OF LAND MANAGEMENT LAND.—The term 
‘‘Bureau of Land Management land’’ means the Bureau of Land 
Management land and any federally-owned minerals located 
south of the Blackfeet Indian Reservation and east of the Lewis 
and Clark National Forest to the eastern edge of R. 8 W., 
beginning in T. 29 N. down to and including T. 19 N. and 
all of T. 18 N., R. 7 W. 
(2) ELIGIBLE FEDERAL LAND.—The term ‘‘eligible Federal 
land’’ means the Bureau of Land Management land and the 
Forest Service land, as generally depicted on the map. 
(3) FOREST SERVICE LAND.—The term ‘‘Forest Service land’’ 
means— 
(A) the Forest Service land and any federally-owned 
minerals located in the Rocky Mountain Division of the 
Lewis and Clark National Forest, including the approximately 
356,111 acres of land made unavailable for leasing 
by the August 28, 1997, Record of Decision for the Lewis 
and Clark National Forest Oil and Gas Leasing Environmental 
Impact Statement and that is located from T. 31 
N. to T. 16 N. and R. 13 W. to R. 7 W.; and 
(B) the Forest Service land and any federally-owned 
minerals located within the Badger Two Medicine area 
of the Flathead National Forest, including— 
(i) the land located in T. 29 N. from the western 
edge of R. 16 W. to the eastern edge of R. 13 W.; 
and 
19 USC 1681 
note. 
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PUBLIC LAW 109–432—DEC. 20, 2006 120 STAT. 3051 
(ii) the land located in T. 28 N., Rs. 13 and 14 
W. 
(4) MAP.—The term ‘‘map’’ means the map entitled ‘‘Rocky 
Mountain Front Mineral Withdrawal Area’’ and dated 
December 31, 2006. 
(b) WITHDRAWAL.— 
(1) IN GENERAL.—Subject to valid existing rights, the 
eligible Federal land (including any interest in the eligible 
Federal land) is withdrawn from— 
(A) all forms of location, entry, and patent under the 
mining laws; and 
(B) disposition under all laws relating to mineral and 
geothermal leasing. 
(2) AVAILABILITY OF MAP.—The map shall be on file and 
available for inspection in the Office of the Chief of the Forest 
Service. 
(c) TAX INCENTIVE FOR SALE OF EXISTING MINERAL AND GEOTHERMAL 
RIGHTS TO TAX-EXEMPT ENTITIES.— 
(1) EXCLUSION.—For purposes of the Internal Revenue Code 
of 1986, gross income shall not include 25 percent of the qualifying 
gain from a conservation sale of a qualifying mineral 
or geothermal interest. 
(2) QUALIFYING GAIN.—For purposes of this subsection, the 
term ‘‘qualifying gain’’ means any gain which would be recognized 
as long-term capital gain under such Code. 
(3) CONSERVATION SALE.—For purposes of this subsection, 
the term ‘‘conservation sale’’ means a sale which meets the 
following requirements: 
(A) TRANSFEREE IS AN ELIGIBLE ENTITY.—The transferee 
of the qualifying mineral or geothermal interest is 
an eligible entity. 
(B) QUALIFYING LETTER OF INTENT REQUIRED.—At the 
time of the sale, such transferee provides the taxpayer 
with a qualifying letter of intent. 
(C) NONAPPLICATION TO CERTAIN SALES.—The sale is 
not made pursuant to an order of condemnation or eminent 
domain. 
(4) QUALIFYING MINERAL OR GEOTHERMAL INTEREST.—For 
purposes of this subsection— 
(A) IN GENERAL.—The term ‘‘qualifying mineral or geothermal 
interest’’ means an interest in any mineral or 
geothermal deposit located on eligible Federal land which 
constitutes a taxpayer’s entire interest in such deposit. 
(B) ENTIRE INTEREST.—For purposes of subparagraph 
(A)— 
(i) an interest in any mineral or geothermal deposit 
is not a taxpayer’s entire interest if such interest in 
such mineral or geothermal deposit was divided in 
order to avoid the requirements of such subparagraph 
or section 170(f)(3)(A) of such Code, and 
(ii) a taxpayer’s entire interest in such deposit 
does not fail to satisfy such subparagraph solely 
because the taxpayer has retained an interest in other 
deposits, even if the other deposits are contiguous with 
such certain deposit and were acquired by the taxpayer 
along with such certain deposit in a single conveyance. 
(5) OTHER DEFINITIONS.—For purposes of this subsection— 
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120 STAT. 3052 PUBLIC LAW 109–432—DEC. 20, 2006 
(A) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ 
means— 
(i) a governmental unit referred to in section 
170(c)(1) of such Code, or an agency or department 
thereof operated primarily for 1 or more of the conservation 
purposes specified in clause (i), (ii), or (iii) 
of section 170(h)(4)(A) of such Code, or 
(ii) an entity which is— 
(I) described in section 170(b)(1)(A)(vi) or section 
170(h)(3)(B) of such Code, and 
(II) organized and at all times operated primarily 
for 1 or more of the conservation purposes 
specified in clause (i), (ii), or (iii) of section 
170(h)(4)(A) of such Code. 
(B) QUALIFYING LETTER OF INTENT.—The term ‘‘qualifying 
letter of intent’’ means a written letter of intent 
which includes the following statement: ‘‘The transferee’s 
intent is that this acquisition will serve 1 or more of 
the conservation purposes specified in clause (i), (ii), or 
(iii) of section 170(h)(4)(A) of the Internal Revenue Code 
of 1986, that the transferee’s use of the deposits so acquired 
will be consistent with section 170(h)(5) of such Code, and 
that the use of the deposits will continue to be consistent 
with such section, even if ownership or possession of such 
deposits is subsequently transferred to another person.’’. 
(6) TAX ON SUBSEQUENT TRANSFERS.— 
(A) IN GENERAL.—A tax is hereby imposed on any 
subsequent transfer by an eligible entity of ownership or 
possession, whether by sale, exchange, or lease, of an 
interest acquired directly or indirectly in— 
(i) a conservation sale described in paragraph (1), 
or 
(ii) a transfer described in clause (i), (ii), or (iii) 
of subparagraph (D). 
(B) AMOUNT OF TAX.—The amount of tax imposed by 
subparagraph (A) on any transfer shall be equal to the 
sum of— 
(i) 20 percent of the fair market value (determined 
at the time of the transfer) of the interest the ownership 
or possession of which is transferred, plus 
(ii) the product of— 
(I) the highest rate of tax specified in section 
11 of such Code, times 
(II) any gain or income realized by the transferor 
as a result of the transfer. 
(C) LIABILITY.—The tax imposed by subparagraph (A) 
shall be paid by the transferor. 
(D) RELIEF FROM LIABILITY.—The person (otherwise 
liable for any tax imposed by subparagraph (A)) shall be 
relieved of liability for the tax imposed by subparagraph 
(A) with respect to any transfer if— 
(i) the transferee is an eligible entity which provides 
such person, at the time of transfer, a qualifying 
letter of intent, 
(ii) in any case where the transferee is not an 
eligible entity, it is established to the satisfaction of 
the Secretary of the Treasury, that the transfer of 
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PUBLIC LAW 109–432—DEC. 20, 2006 120 STAT. 3053 
ownership or possession, as the case may be, will be 
consistent with section 170(h)(5) of such Code, and 
the transferee provides such person, at the time of 
transfer, a qualifying letter of intent, or 
(iii) tax has previously been paid under this paragraph 
as a result of a prior transfer of ownership 
or possession of the same interest. 
(E) ADMINISTRATIVE PROVISIONS.—For purposes of subtitle 
F of such Code, the taxes imposed by this paragraph 
shall be treated as excise taxes with respect to which 
the deficiency procedures of such subtitle apply. 
(7) REPORTING.—The Secretary of the Treasury may require 
such reporting as may be necessary or appropriate to further 
the purpose under this subsection that any conservation use 
be in perpetuity. 
(d) EFFECTIVE DATES.— 
(1) MORATORIUM.—Subsection (b) shall take effect on the 
date of the enactment of this Act. 
(2) TAX INCENTIVE.—Subsection (c) shall apply to sales 
occurring on or after the date of the enactment