A bill to provide further protections for the watershed of the Little Sandy River as part of the Bull Run Watershed Management Unit, and for other purposes.

Amends Federal law to reestablish and add acreage to the Bull Run Watershed Management Unit in Oregon.

Directs the Secretary of Agriculture or the Interior, as applicable, to prohibit the cutting of trees on Federal land in the entire unit.

Repeals a provision of the: (1) Oregon Resource Conservation Act of 1996 which requires certain Unit lands that are not contained in the Bull Run River Drainage to be managed in accordance with the law establishing the Unit; and (2) Omnibus Parks and Public Lands Management Act of 1996 regarding the Unit.

Requires the Secretary of Agriculture: (1) upon application by the city of Portland, Oregon, to enter into negotiations with the city for the transfer of National Forest System land underlying the city's Bull Run water supply facilities to the city in exchange for city- owned land lying within the boundaries of any unit of the National Forest System in Oregon or Washington; and (2) to expedite the negotiations and complete such land exchange not later than September 30, 2001.