[Code of Federal Regulations]
[Title 36, Volume 2]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 36CFR254.14]

[Page 360-361]
 
              TITLE 36--PARKS, FORESTS, AND PUBLIC PROPERTY
 
          CHAPTER II--FOREST SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 254_LANDOWNERSHIP ADJUSTMENTS--Table of Contents
 
                        Subpart A_Land Exchanges
 
Sec. 254.14  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. 254.13 of this subpart. Such an 
agreement is required if hazardous substances are present on the non-
Federal lands. An exchange agreement must contain the following:
    (1) Identification of the parties, description of the lands and 
interests to be exchanged, identification of all reserved and 
outstanding interests, stipulation of any necessary cash equalization, 
and all other terms and conditions necessary to complete an exchange;

[[Page 361]]

    (2) Inclusion of the terms regarding responsibility for removal, 
indemnification (``hold harmless'' agreement), or other remedial actions 
concerning any hazardous substances on the involved non-Federal lands; 
and
    (3) The agreed upon values of the involved lands, until consummation 
of the land exchange.
    (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) The exchange proposal receives any required Secretarial 
approval;
    (5) No objections are raised during any required congressional 
oversight;
    (6) In the event of an appeal under 36 CFR part 215 or 36 CFR part 
251, subpart C, a decision to approve an exchange proposal pursuant to 
Sec. 254.13 of this subpart is upheld; and
    (7) The agreement is not terminated by mutual consent or upon such 
terms as may be provided in the agreement.
    (c) In the event of a failure to perform or to comply with the terms 
of an exchange agreement, the noncomplying party is liable for all costs 
borne by the other party as a result of the proposed exchange, 
including, but not limited to, land surveys, appraisals, mineral 
examinations, timber cruises, title searches, title curative actions, 
cultural resource surveys and mitigation, hazardous substance surveys 
and controls, removal of encumbrances, arbitration, curing deficiencies 
preventing highest and best use of the land, and any other expenses 
incurred in processing the proposed land exchange.
    (d) Absent an executed exchange agreement, an action taken by the 
parties prior to consummation of an exchange does not create any 
contractual or other binding obligations or rights enforceable against 
any party.

[59 FR 10867, Mar. 8, 1994; 59 FR 15501, Apr. 1, 1994, as amended at 64 
FR 25822, May 13, 1999]