[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR2201.7-2]



[Page 68-69]

 

                    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 69]]



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.