[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2219 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2219

 To direct the Secretary of the Interior to convey certain irrigation 
   project property to certain irrigation districts in the State of 
                               Nebraska.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 25, 1998

  Mr. Kerrey introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To direct the Secretary of the Interior to convey certain irrigation 
   project property to certain irrigation districts in the State of 
                               Nebraska.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Missouri River Basin, Middle Loup 
Division Project Facilities Conveyance Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Project.--The term ``project'' means each of the 
        irrigation projects constructed by the United States under the 
        Act of December 22, 1944 (commonly known as the ``Flood Control 
        Act of 1944'') (58 Stat. 887, chapter 665), described as the 
        ``Missouri River Basin, Middle Loup Division Project'' and 
        locally known as the ``Farwell Irrigation Project'' and the 
        ``Sargent Irrigation Project''.
            (2) Project beneficiary.--The term ``project beneficiary'' 
        means--
                    (A) the Farwell Irrigation District, Sargent 
                Irrigation District, and Loup Basin Reclamation 
                District, each of which is organized as a subdivision 
                of government under the law of the State of Nebraska;
                    (B) a combination of the irrigation districts or 
                reclamation district; and
                    (C) an organization established by 1 or more of the 
                irrigation districts or reclamation district under the 
                law of the State of Nebraska as an interlocal 
                cooperation agency.
            (3) Project property.--The term ``project property'' 
        means--
                    (A) all contracts in effect on the date of 
                enactment of this Act between the United States and a 
                project beneficiary or other person that relate to a 
                project or project facility, including any written or 
                unwritten contract to provide power from a Federal 
                power facility under the Act of December 22, 1944 (58 
                Stat. 887, chapter 665);
                    (B) all project distribution and drainage 
                facilities, all reservoir and related diversion 
                facilities, and all related land owned by the United 
                States as of the date of enactment of this Act that the 
                Secretary determines to be related to a project;
                    (C) all acquired land (including the surface estate 
                and the subsurface estate) within a project;
                    (D) all water rights held by the United States 
                relating to the project facilities;
                    (E) all right, title, and interest in all 
                outstanding contracts, leases, licenses, outgrants, or 
                permits on or relating to land associated with a 
                project; and
                    (F) all personal property (including operating 
                equipment, tools, materials, and other tangible 
                personal property) owned by the United States that is 
                used for the purpose of operating the project or 
                serving the project facility.
            (4) Project purpose.--The term ``project purpose'' means 
        use of the project property and the water supply of the project 
        (consistent with the recent use and experience with the project 
        and not limited to the use envisioned when the project was 
        originally authorized, and consistent with section 8) to--
                    (A) provide irrigation water for project land to 
                which the project water rights are assigned;
                    (B) enhance the agricultural economy of the area 
                served by the project;
                    (C) stabilize the water supply from surface and 
                ground water sources in the area served by the project;
                    (D) develop and protect fish and wildlife resources 
                native to the area served by the project; and
                    (E) develop and manage water- and land-based 
                recreation facilities in the area that are related to 
                the project property.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. CONVEYANCE.

    (a) Conveyance.--
            (1) In general.--On January 1, 2000 (or on any earlier date 
        that is agreeable to the Secretary and the project 
beneficiaries), the Secretary may, on terms in accordance with this 
Act, convey by quitclaim deed, patent, or other appropriate instrument, 
all right, title, and interest of the United States in and to the 
project property to the project beneficiaries, in the name or names of 
project beneficiaries as the project beneficiaries may determine.
            (2) Contaminated property.--
                    (A) Remedial action.--Notwithstanding section 
                120(h)(3) of the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 
                9620(h)(3)) or any other law, the Secretary shall make 
                the conveyance under paragraph (1) not later than 
                January 1, 2000, without regard to whether all 
                necessary remedial action required under that Act on 
                any part of the project property has been completed by 
                that date.
                    (B) Effect.--Subparagraph (A) does not--
                            (i) relieve the United States of the 
                        obligation to complete any required remedial 
                        action expeditiously; or
                            (ii) place any obligation on the project 
                        beneficiaries to conduct or contribute to 
                        payment of the costs of any remedial action.
            (3) Completion of nepa studies and reports.--The Secretary 
        shall cause all studies and reports required on the project 
        property under the National Environmental Policy Act of 1964 
        (42 U.S.C. 4321 et seq.) relating to the conveyance under 
        paragraph (1) to be completed as far in advance of January 1, 
        2000, as practicable.
    (b) Consideration.--The conveyance of the project property under 
subsection (a) shall be for consideration totaling $5,030,000, to be 
paid to the United States for credit against the Reclamation Projects 
Funds for the Missouri River Basin Project, as follows:
            (1) Payment by project beneficiaries.--
                    (A) In general.--On the date of conveyance, the 
                project beneficiaries shall pay the Secretary 
                $3,530,000.
                    (B) Crediting of contract payments.--There shall be 
                credited against the amount specified in subparagraph 
                (A) the amount of any payments made by the project 
                beneficiaries between July 1, 1998, and December 31, 
                1999, under contracts between the project beneficiaries 
                and the United States.
            (2) Payment by power producers.--
                    (A) In general.--On the date of conveyance, the 
                power producers under the Pick-Sloan Missouri Basin 
                Program shall pay the Secretary $1,500,000.
                    (B) Payment source.--As a source of funds for the 
                payment under subparagraph (A), the power producers may 
                use power sale revenues received in fiscal year 1998 or 
                any subsequent fiscal year in which the amount of power 
                sale revenues received exceeds the amount of interest 
                and operation and maintenance obligations.
    (c) Satisfaction of Outstanding Obligations.--
            (1) In general.--The payment of the sums provided for in 
        subsection (b) shall be in full and complete satisfaction of 
        all obligations against the project property, the project 
        beneficiaries, and Missouri River Basin power producers 
        existing before the date of conveyance of the project property 
        under any contracts entered into between the United States, the 
        project beneficiaries, or the Missouri River Basin power 
        producers or under any obligations that may have been required 
        by the Act of December 22, 1944 (58 Stat. 887, chapter 665) or 
        other related Federal law.
            (2) Satisfaction of obligations.--The completion of the 
        conveyance of all project facilities under this Act and the 
        payment of the consideration specified for the projects shall 
        constitute full satisfaction of any and all obligations for 
        further payments or repayments by the respective project 
        beneficiaries or by the Missouri River Basin power producers 
        for irrigation benefits of the project property and for any 
        other benefits conveyed to the project beneficiaries.
    (d) Conveyance Documents.--
            (1) In general.--With the assistance of the project 
        beneficiaries, the Secretary--
                    (A) shall execute and deliver to the project 
                beneficiaries all necessary conveyance documents 
                (including quitclaim land deeds, court proceedings, 
                decrees, bills of sale, certificates of title, lease 
                contract transfers, water rights certificates and 
                amendment documents, and notice filings) and make all 
                such filings as may be required of the transferor; and
                    (B) take all such actions as may be required to 
                consummate the conveyance of project property.
            (2) Filing costs.--The cost of any required filing of 
        documents shall be paid by the project beneficiaries.
    (e) Assumptions of Obligations.--On the date of the conveyance 
under subsection (a), the project beneficiaries shall--
            (1) assume the rights and responsibilities under the 
        contracts, leases, licenses, outgrants, and permits referred to 
        in section 2(3)(E); and
            (2) during the continued term of each contract, lease, 
        license, outgrant, and permit, carry out all responsibilities 
        of the United States under the contract, lease, license, 
        outgrant, or permit unless released by the holder of the 
        contract, lease, license, outgrant, or permit.
    (f) No Diminishment of Estate.--The Secretary shall not transfer, 
modify, or restrict the interest of the United States in any part of 
the project property after the date of enactment of this Act and before 
the date of the conveyance under subsection (a).
    (g) Effect of Agreement by Project Beneficiaries.--
            (1) In general.--By accepting the conveyance under 
        subsection (a), the project beneficiaries agree--
                    (A) to operate, maintain, repair, replace, and 
                rehabilitate the project in a manner designed to carry 
                out the project purposes; and
                    (B) to cooperate with each person holding a 
                contract, lease, license, outgrant, or permit referred 
                to in section 2(3)(E) so as to ensure that the rights 
                of the person under the contract, lease, license, 
                outgrant, or permit are preserved after the conveyance.
            (2) Notifications.--The project beneficiaries shall be 
        responsible for notifying all State, regional, and local 
        authorities (including authorities responsible for dam safety, 
        monitoring, and inspections, water quality monitoring, and 
        inspections and administration of water rights) regarding the 
        conveyance of project property and the assumption of ownership 
        of the project.
    (h) Payment of NEPA Study Costs.--All costs incurred by the United 
States in preparation of studies and reports required under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
relating to the conveyance under subsection (a)--
            (1) up to the sum of $170,000, shall be paid equally by the 
        United States and the project beneficiaries; and
            (2) in excess of $170,000, shall be paid solely by the 
        United States.

SEC. 4. MIDDLE LOUP DRAINAGE FACILITIES AND LAND.

    (a) Responsibility for Drainage Work.--
            (1) In general.--Except for any drainage work that is made 
        necessary by acts or omissions of project beneficiaries in 
        connection with project operations, any repair or modification 
        of drainage work in existence on the date of enactment of this 
        Act or any development of new additional drainage work that the 
        project beneficiaries, in cooperation with Loup City, Nebraska, 
        and the landowners on whose land drainage works exist at any 
        time, determine is necessary to satisfactorily limit or reduce 
        ground water encroachment on the land described in subsection 
        (b), shall be the financial responsibility of the United States 
        to the extent provided in paragraph (2).
            (2) Racheting down of financial responsibility of the 
        united states.--For drainage work performed in the following 
        fiscal years, the United States shall have financial 
        responsibility for the following percentages of the cost of the 
        drainage work, and the project beneficiaries shall have 
        financial responsibility for the remainder:

Fiscal year:                                                Percentage:
    2000..........................................                 100 
    2001..........................................                  95 
    2002..........................................                  90 
    2003..........................................                  85 
    2004..........................................                  80 
    2005..........................................                  75 
    2006..........................................                  70 
    2007..........................................                  65 
    2008..........................................                  60 
    2009..........................................                  55 
    2010..........................................                  50 
    2011..........................................                  45 
    2012..........................................                  40 
    2013..........................................                  35 
    2014..........................................                  30 
    2015..........................................                  25 
    2016..........................................                  20 
    2017..........................................                  15 
    2018..........................................                  10 
    2019..........................................                   5 
    2020 and thereafter...........................                   0.
    (b) Description of Land.--The land described in this subsection is 
all land--
            (1) in which the United States has any interest in the 
        valley of the Middle Loup River in and around Loup City, 
        Nebraska;
            (2) that was developed or acquired by the United States for 
        the purposes of collecting and draining excess ground water; 
        and
            (3) that is entirely outside the political subdivision 
        boundaries of the project beneficiaries.

SEC. 5. LIABILITY.

    Beginning on the date of the conveyance of the project property 
under section 3(a), the United States shall not be liable for damages 
arising out of any act, omission, or occurrence relating to the project 
property or a project except for damages caused by an act or omission 
of the United States or an employee, agent, or contractor of the United 
States before that date.

SEC. 6. MAINTENANCE OF PROJECT PURPOSES AND BENEFITS AND CREATION OF 
              TRUST FUND.

    (a) Continuation of Project Purposes.--
            (1) In general.--All project property conveyed under 
        section 3 shall, to the extent practicable, be operated and 
        maintained to achieve the project purposes.
            (2) Applicability of laws.--Operations of all project 
        property conveyed under section 3 shall be subject to Federal 
        and State laws under which the irrigation districts and 
        reclamation district were established and the irrigation 
        districts and reclamation district conduct operations.
            (3) Other uses of project facilities.--All other uses of 
        project facilities consistent with those laws and the operation 
        of irrigation facilities, including fish, wildlife, and 
        recreation uses, shall be preserved, protected, and enhanced to 
        the extent practicable by the project beneficiaries.
    (b) Nebraska-Middle Loup River Community Environmental Trust 
Fund.--
            (1) Establishment.--As a condition to the conveyance under 
        section 3, the project beneficiaries shall establish a fund, to 
        be known as ``Nebraska-Middle Loup River Community 
        Environmental Trust Fund''.
            (2) Administration.--The fund shall be administered by an 
        interlocal cooperation agency, organized under State law by the 
        project beneficiaries, that includes at least--
                    (A) 1 member selected by the Loup Basin Reclamation 
                District;
                    (B) 1 member each selected by the Farwell 
                Irrigation District and the Sargent Irrigation 
                District;
                    (C) 1 member from the Nebraska Game and Parks 
                Commission, to be selected by the Commission;
                    (D) 1 member from the Nebraska Natural Resources 
                Commission, to be selected by the Commission;
                    (E) 1 member of the Lower Loup Natural Resources 
                District, selected by the District; and
                    (F) 1 member from the Nebraska Department of Water 
                Resources, to be selected by the Governor of the State 
                of Nebraska.
            (3) Deposit.--On receipt of payment of consideration under 
        section 3(b), the Secretary shall deposit the payment in the 
        fund.
            (4) Use of fund.--
                    (A) In general.--Amounts in the fund shall be used 
                to preserve, protect, enhance, and manage project 
                property in a manner that the interlocal cooperation 
                agency determines is necessary to achieve the project 
                purposes, including actions to--
                            (i) stabilize water supplies;
                            (ii) conserve water and land resources;
                            (iii) improve and enhance fisheries and 
                        recreational opportunities; and
                            (iv) expand knowledge of water and land 
                        sources for enhancing project operations to 
                        improve the service of project purposes.
                    (B) Prohibition.--Amounts in the fund shall not be 
                used for any routine operation and maintenance work by 
                the project beneficiaries or any cooperator, lessee, 
                licensee, or permittee of the project beneficiaries.

SEC. 7. ARCHAEOLOGICAL PRESERVATION RESPONSIBILITIES.

    (a) In General.--The Secretary shall complete all investigation and 
preservation activities required under the National Historic 
Preservation Act (16 U.S.C. 470 et seq.) at archaeological sites on 
project property that, before the date of the conveyance under section 
3(a), have been identified as being subject to the requirements of that 
Act.
    (b) Easement.--At the time of the conveyance of the project 
property, the project beneficiaries shall convey to the Secretary an 
easement to each archaeological site described in subsection (a) for 
the purpose of retaining access to and full use of the site for the 
purposes of concluding any required archaeological activity at the 
site.
    (c) Effect on Project Operation.--The Secretary shall--
            (1) ensure that archaeological activity at an 
        archaeological site described in subsection (a) does not 
        adversely affect the integrity of the operation any project 
        property; or
            (2) to the extent that it is not practicable for the 
        Secretary to avoid any adverse effect, provide such alternative 
        facilities as are necessary to maintain project integrity.

SEC. 8. MODIFICATION OF PROJECT PURPOSES.

    The purposes of the project are modified to exclude flood control.
                                 <all>