[Code of Federal Regulations]
[Title 43, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR2201.7-2]

[Page 72-73]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR
 
PART 2200_EXCHANGES: GENERAL PROCEDURES--Table of Contents
 
              Subpart 2201_Exchanges_Specific Requirements
 
Sec. 2201.7-2  Exchange agreement.

    (a) The parties to a proposed exchange may enter into an exchange 
agreement subsequent to a decision by the authorized officer to approve 
the exchange, pursuant to Sec. 2201.7-1 of this part. Such an agreement 
is required if hazardous substances are present on the non-Federal 
lands. An exchange agreement shall contain the following:
    (1) Identification of the parties, a description of the lands and 
interests to be exchanged, identification of all reserved and 
outstanding interests, the amount of any necessary cash equalization, 
and all other terms and conditions necessary to complete the exchange;
    (2) The terms regarding responsibility for removal, indemnification 
(``hold harmless'' agreement), or other remedial actions concerning any 
hazardous substances on the involved non-Federal lands;
    (3) A description of the goods and services and their corresponding 
costs for which the noncomplying party is

[[Page 73]]

liable in the event of failure to perform or to comply with the terms of 
the exchange agreement; and
    (4) The agreed upon values of the involved lands.
    (b) An exchange agreement, as described in paragraph (a) of this 
section, is legally binding on all parties, subject to the terms and 
conditions thereof, provided:
    (1) Acceptable title can be conveyed;
    (2) No substantial loss or damage occurs to either property from any 
cause;
    (3) No undisclosed hazardous substances are found on the involved 
Federal or non-Federal lands prior to conveyance;
    (4) In the event of a protest, or of an appeal from a protest 
decision under 43 CFR part 4, a decision to approve an exchange pursuant 
to Sec. 2201.7-1 is upheld; and
    (5) The agreement is not terminated by mutual consent or upon such 
terms as may be provided in the agreement.
    (c) Absent an executed legally binding exchange agreement, any 
action taken by one or more of the parties, or a failure of one or more 
of the parties to take any action, prior to consummation of an exchange 
does not create any legal obligation or right enforceable against or 
enjoyed by any party.