; (5) in paragraph (4)— (A) by striking parcels and inserting Parcels ; and (B) by striking the semicolon at the end and inserting a period; (6) in paragraph (5)— (A) by striking parcels and inserting Parcels ; and (B) by striking ; or and inserting a period; (7) in paragraph (6), by striking parcels and inserting Parcels ; and (8) by adding at the end the following new paragraphs: (7) Parcels of 40 acres or less which are determined by the Secretary to be physically isolated, to be inaccessible, or to have lost their National Forest character. (8) Parcels of 10 acres or less which are not eligible for conveyance under paragraph (2), but which are encroached upon by permanent habitable improvements for which there is no evidence that the encroachment was intentional or negligent. (9) Parcels used as a cemetery, a landfill, or a sewage treatment plant under a special use authorization issued by the Secretary. In the case of a cemetery expected to reach capacity within 10 years, the sale, exchange, or interchange may include, in the sole discretion of the Secretary, up to 1 additional acre abutting the permit area to facilitate expansion of the cemetery. . (c) Disposition of proceeds Section 2 of Public Law 97–465 ( 16 U.S.C. 521d ) is amended— (1) by striking The Secretary is authorized and inserting the following: (a) Conveyance authority; consideration The Secretary is authorized ; (2) by striking The Secretary shall insert and inserting the following: (b) Inclusion of terms, covenants, conditions, and reservations The Secretary shall insert ; (3) by striking convenants and inserting covenants ; and (4) by adding at the end the following new subsection: (c) Disposition of proceeds (1) Deposit in sisk fund The net proceeds derived from any sale or exchange conducted under the authority of paragraph (4), (5), or (6) of section 3 shall be deposited in the fund established by Public Law 90–171 (commonly known as the Sisk Act