B-124045, JUN. 22, 1955

B-124045: Jun 22, 1955

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO YOUR LETTER OF MAY 17. DEPOSITED IN THE TREASURY OF THE UNITED STATES SHOULD BE PAID TO THE STATE OF ARKANSAS FOR THE BENEFIT OF PUBLIC SCHOOLS AND PUBLIC ROADS OF THE COUNTIES IN WHICH THE PROPERTY IS LOCATED. IT IS REPORTED THAT THE LAND IN QUESTION COMPRISES APPROXIMATELY 320 ACRES IN PERRY COUNTY. WHICH WAS FORMERLY LAND ACQUIRED BY THE DEPARTMENT OF AGRICULTURE FOR NATIONAL FOREST DEVELOPMENT AS PART OF THE GUACHITA NATIONAL FOREST. THIS LAND WAS TRANSFERRED TO THE SECRETARY OF THE ARMY ON DECEMBER 4. YOU REPORT THAT A HOMESITE AREA AT THE NIMROD RESERVOIR IS TO BE LOCATED ON THE LAND ACQUIRED BY THE DEPARTMENT OF THE ARMY FROM THE DEPARTMENT OF AGRICULTURE AND A QUESTION HAS ARISEN AS TO WHICH OF TWO STATUTES.

B-124045, JUN. 22, 1955

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO YOUR LETTER OF MAY 17, 1955, IN WHICH YOU REQUEST A DECISION AS TO WHAT PERCENTAGE OF RENTALS DERIVED FROM LEASING OF CERTAIN LAND AT THE NIMROD RESERVOIR PROJECT, ARKANSAS, A FLOOD CONTROL PROJECT, AND DEPOSITED IN THE TREASURY OF THE UNITED STATES SHOULD BE PAID TO THE STATE OF ARKANSAS FOR THE BENEFIT OF PUBLIC SCHOOLS AND PUBLIC ROADS OF THE COUNTIES IN WHICH THE PROPERTY IS LOCATED.

IT IS REPORTED THAT THE LAND IN QUESTION COMPRISES APPROXIMATELY 320 ACRES IN PERRY COUNTY, ARKANSAS, WHICH WAS FORMERLY LAND ACQUIRED BY THE DEPARTMENT OF AGRICULTURE FOR NATIONAL FOREST DEVELOPMENT AS PART OF THE GUACHITA NATIONAL FOREST, ARKANSAS. PURSUANT TO THE AUTHORITY CONTAINED IN PUBLIC LAW 558, 81ST CONGRESS, APPROVED JUNE 16, 1950, 64 STAT. 229, THIS LAND WAS TRANSFERRED TO THE SECRETARY OF THE ARMY ON DECEMBER 4, 1950, IN EXCHANGE FOR APPROXIMATELY 306 ACRES OF LAND WHICH HAD BEEN ACQUIRED BY THE DEPARTMENT OF THE ARMY FOR CONSTRUCTION, OPERATION, AND MAINTENANCE OF THE NIMROD RESERVOIR, ARKANSAS, A CIVIL WORKS PROJECT UNDER THE JURISDICTION OF THE CHIEF OF ENGINEERS, DEPARTMENT OF THE ARMY. YOU REPORT THAT A HOMESITE AREA AT THE NIMROD RESERVOIR IS TO BE LOCATED ON THE LAND ACQUIRED BY THE DEPARTMENT OF THE ARMY FROM THE DEPARTMENT OF AGRICULTURE AND A QUESTION HAS ARISEN AS TO WHICH OF TWO STATUTES--- PROVIDING DIFFERENT PERCENTAGE RATES TO BE PAID TO STATES CONCERNING RECEIPTS FROM THE LAND--- WILL APPLY TO THE MONEYS REALIZED FROM THE LEASES OF SAID LAND AS A HOMESTEAD AREA.

TITLE 33, SECTION 701C-3, U.S.C. PROVIDES AS FOLLOWS:

"75 PERCENTUM OF ALL MONEYS RECEIVED AND DEPOSITED IN THE TREASURY OF THE UNITED STATES DURING ANY FISCAL YEAR ON ACCOUNT OF THE LEASING OF LANDS ACQUIRED BY THE UNITED STATES FOR FLOOD-CONTROL PURPOSES SHALL BE PAID AT THE END OF SUCH YEAR BY THE SECRETARY OF THE TREASURY TO THE STATE IN WHICH SUCH PROPERTY IS SITUATED, TO BE EXPENDED AS THE STATE LEGISLATURE MAY PRESCRIBE FOR THE BENEFIT OF PUBLIC SCHOOLS AND PUBLIC ROADS OF THE COUNTY, OR COUNTIES, IN WHICH SUCH PROPERTY IS SITUATED: PROVIDED, THAT WHEN SUCH PROPERTY IS SITUATED IN MORE THAN ONE STATE OR COUNTY, THE DISTRIBUTIVE SHARE TO EACH FROM THE PROCEEDS OF SUCH PROPERTY SHALL BE PROPORTIONAL TO ITS AREA THEREIN.'

WITH RESPECT TO RECEIPTS DERIVED FROM LAND LOCATED IN A NATIONAL FOREST, THE PROVISIONS OF TITLE 16, SECTION 500, U.S.C. PROVIDE THAT:

"TWENTY-FIVE PERCENTUM OF ALL MONEYS RECEIVED DURING ANY FISCAL YEAR FROM EACH NATIONAL FOREST SHALL BE PAID, AT THE END OF SUCH YEAR, BY THE SECRETARY OF THE TREASURY TO THE STATE IN WHICH SUCH NATIONAL FOREST IS SITUATED, TO BE EXPENDED AS THE STATE LEGISLATURE MAY PRESCRIBE FOR THE BENEFIT OF PUBLIC SCHOOLS AND PUBLIC ROADS OF THE COUNTY OR COUNTIES IN WHICH SUCH NATIONAL FOREST IS SITUATED: PROVIDED, THAT WHEN ANY NATIONAL FOREST IS IN MORE THAN ONE STATE OR COUNTY THE DISTRIBUTIVE SHARE TO EACH FROM THE PROCEEDS OF SUCH FOREST SHALL BE PROPORTIONAL TO ITS AREA THEREIN.'

IN ORDER TO DETERMINE WHICH OF THE ABOVE-QUOTED PROVISIONS CONCERNING THE DISPOSITION OF REVENUE REALIZED FROM THE LANDS ACQUIRED BY THE DEPARTMENT OF THE ARMY IS APPLICABLE, IT IS NECESSARY TO EXAMINE THE PROVISIONS OF PUBLIC LAW 558, SUPRA, AND TO DETERMINE THE EFFECT THEREOF ON THE LAND IN QUESTION. SECTION 1 OF THAT ACT DIRECTS THE SECRETARY OF AGRICULTURE TO CONVEY THE LAND DESCRIBED THEREIN, COMPRISING APPROXIMATELY 320 ACRES, TO THE SECRETARY OF THE ARMY "FOR THE PURPOSE OF FACILITATING MAINTENANCE AND OPERATION OF THE DAM AND PRESERVATION AND CONTROL OF THE RESERVOIR AREA IN THE VICINITY OF THE DAM AND TO PERMIT DEVELOPMENT OF A PORTION OF THE AREA FOR ITS HIGHEST AND BEST PUBLIC USE CONSISTENT WITH THE PRIMARY PURPOSES OF THE NIMROD RESERVOIR PROJECT, ARKANSAS, UNDER THE ADMINISTRATION OF THE CHIEF, CORPS OF ENGINEERS.'

IT SEEMS CLEAR THAT THE TRANSFER AND CONVEYANCE OF THE LAND FROM THE DEPARTMENT OF AGRICULTURE TO THE DEPARTMENT OF THE ARMY UNDER THE ABOVE PROVISION, BEING FOR THE PURPOSE OF OBTAINING THE LAND FOR USE BY THE DEPARTMENT OF THE ARMY IN CONNECTION WITH THE NIMROD RESERVOIR PROJECT, ARKANSAS, A FLOOD CONTROL PROJECT, MAY BE REGARDED AS AN ACQUISITION OF LAND FOR FLOOD CONTROL PURPOSES SIMILAR TO ANY OTHER ACQUISITION FOR THIS PURPOSE BY THE UNITED STATES. THIS WOULD BE SO NOTWITHSTANDING THE ORIGINAL ACQUISITION OF THE LAND BY THE GOVERNMENT WAS FOR NATIONAL FOREST PURPOSES. HENCE, YOU ARE ADVISED THAT THE DISPOSITION OF THE RENTALS DERIVED FROM SUCH LAND NOW UNDER THE CONTROL OF THE DEPARTMENT OF THE ARMY SHOULD BE MADE IN ACCORDANCE WITH THE PROVISIONS OF TITLE 33, SECTION 701C -3, U.S.C. SUPRA. ..END :