[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2414 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2414

  To establish terms and conditions under which the Secretary of the 
 Interior shall convey leaseholds in certain Properties around Canyon 
                       Ferry Reservoir, Montana.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 31, 1998

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

_______________________________________________________________________

                                 A BILL


 
  To establish terms and conditions under which the Secretary of the 
 Interior shall convey leaseholds in certain Properties around Canyon 
                       Ferry Reservoir, Montana.

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

SECTION 1. FINDINGS.

    Congress finds that the conveyance of the Properties described in 
section 4(b) to the Lessees of those Properties for fair market value 
would have the beneficial results of--
            (1) reducing Pick-Sloan project debt for the Canyon Ferry 
        Unit;
            (2) providing a permanent source of funding for projects 
        that develop and maintain public recreation, and that conserve 
        and enhance fish and wildlife opportunities in the State of 
        Montana;
            (3) eliminating Federal payments in lieu of taxes and 
        associated management expenditures in connection with the 
        Government's ownership of the Properties while increasing local 
        tax revenues from the new owners; and
            (4) eliminating expensive and contentious disputes between 
        the Secretary and leaseholders while ensuring that the Federal 
        Government receives full and fair value for the acquisition of 
        the Properties.

SEC. 2. PURPOSE.

    The purpose of this Act is to establish terms and conditions under 
which the Secretary of the Interior shall, for fair market value, 
convey certain Properties around Canyon Ferry Reservoir, Montana, to 
the Lessees of those Properties.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) CFRA.--The term ``CFRA'' means the Canyon Ferry 
        Recreation Association, Incorporated, a Montana corporation.
            (2) Lessee.--The term ``Lessee'' means the leaseholder of 1 
        of the Properties described in section 4(b) on the date of 
        enactment of this Act and the leaseholder's heirs, executors, 
        and assigns of their leasehold interest.
            (3) Property.--The term ``Property'' means any 1 of the 
        cabin sites described in section 4(b).
            (4) Properties.--The term ``Properties'' means all 265 of 
        the cabin sites (and related parcels) described in section 
        4(b).
            (5) Purchaser.--The term ``Purchaser'' means a person or 
        entity, excluding CFRA, that purchases the 265 Properties under 
        section 4.
            (6) Reservoir.--The term ``Reservoir'' means the Canyon 
        Ferry Reservoir in the State of Montana.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (8) Trust.--The term ``Trust'' means the Canyon Ferry Lake 
        Trust described in section 6.

SEC. 4. SALE OF PROPERTIES.

    (a) In General.--Subject to subsection (c) and notwithstanding any 
other provision of law, the Secretary shall sell at fair market value--
            (1) all right, title, and interest of the United States in 
        and to all (but not fewer than all) of the Properties described 
        in subsection (b), subject to valid existing rights; and
            (2) easements for--
                    (A) vehicular access to each Property;
                    (B) access to and the use of 1 dock per Property; 
and
                    (C) access to and the use of all boathouses, ramps, 
                retaining walls, and other improvements for which 
                access is provided in the leases as of the date of this 
                Act.
    (b) Description of Properties.--
            (1) In general.--The Properties to be conveyed are--
                    (A) the 265 cabin sites of the Bureau of 
                Reclamation located along the northern portion of the 
                Reservoir in portions of sections 2, 11, 12, 13, 15, 
                22, 23, and 26, Township 10 North, Range 1 West; plus
                    (B) any small parcels contiguous to the Properties 
                (not including shoreline land needed to provide public 
                access to the shoreline of the Reservoir) that the 
                Secretary determines should be conveyed in order to 
                eliminate inholdings and facilitate administration of 
                surrounding land remaining in Federal ownership.
            (2) Acreage; legal description.--The acreage and legal 
        description, including any related parcels determined by the 
        Secretary under (b)(1)(B) of this section, of each Property 
        shall be agreed on by the Secretary and CFRA.
    (c) Purchase Process.--
            (1) In general.--The Secretary shall--
                    (A) solicit sealed bids for the Properties;
                    (B) subject to paragraph (2), sell the Properties 
                to the bidder that submits the highest bid above the 
                minimum bid determined under paragraph (2); and
                    (C) no bid shall be accepted for less than all of 
                the Properties in one bundle.
            (2) Minimum bid.--Before accepting bids, the Secretary, in 
        consultation with CFRA, shall establish a minimum bid based on 
        an appraisal of the fair market value of the Properties, 
        exclusive of the value of private improvements made by the 
        leaseholders before the date of the conveyance by means of an 
        appraisal conducted in conformance with the Uniform Standards 
        of Professional Appraisal Practice.
            (3) Right of first refusal.--If the highest bidder is other 
        than CFRA, CFRA shall have the right to match the highest bid 
        and purchase the Properties at a price equal to the amount of 
        that bid.
    (d) Terms of Conveyance.--
            (1) Purchaser to extend option to purchase or to continue 
        leasing.
                    (A) In general.--The Purchaser shall give each 
                leaseholder of record of a Property conveyed under this 
                section an option to purchase the Property at fair 
                market value as determined in subsection (c)(2).
                    (B) Nonpurchasing lessees.--
                            (i) Right to continue lease.--A Lessee that 
                        is unable or unwilling to purchase a Property 
                        shall be permitted to continue to lease the 
                        Property for fair market value rent under the 
                        same terms and conditions as the existing 
                        leases, including the right to renew the term 
of the existing lease for 2 consecutive 5-year terms.
                            (ii) Compensation for improvements.--If a 
                        Lessee declines to purchase a Property, the 
                        Purchaser shall compensate the Lessee for the 
                        fair market value, as determined pursuant to 
                        customary appraisal procedures, of all 
                        improvements made to the Property. The Lessee 
                        may sell the improvements to Purchaser at any 
                        time, but the sale shall be completed by the 
                        final termination of the lease, after all 
                        renewals as provided in clause (i).
            (2) Historical use.--The Purchaser shall honor the existing 
        Property descriptions and historical use restrictions for the 
        leaseholds.
            (3) CFRA purchases.--If CFRA should be the highest bidder, 
        or match the highest bid, it may convey to the Trust in lieu of 
        money, the title to any Property where the Lessee is unable or 
        unwilling to purchase their Property.
                    (A) Continuation of leases.--
                            (i) In general.--A Lessee that is unable or 
                        unwilling to purchase a leasehold shall be 
                        permitted to continue to lease the Property 
                        pursuant to the terms and conditions of the 
                        lease, existing on the date of enactment of 
                        this Act, from the Trust.
                            (ii) Rental payments.--All rents received 
                        during the continuation of a lease under clause 
                        (i) shall be paid to the Trust.
                            (iii) Limitation on right to transfer 
                        lease.--Subject to valid existing rights, a 
                        Lessee may not sell or otherwise assign or 
                        transfer the leasehold without purchasing the 
                        Property from the Trust and conveying the fee 
                        interest in the Property.
                    (B) Conveyances by trust.--All conveyances by the 
                Trust shall be a fair market value as determined by a 
                new appraisal, but in no event may the Trust convey any 
                Property to Lessee for an amount less than the value 
                established for the leasehold by the appraisal 
                conducted pursuant to subparagraph (c)(2).
    (e) Administrative Costs.--Any reasonable administrative cost 
incurred by the Secretary incident to the conveyance under subsection 
(a) shall be reimbursed by the Purchaser or CFRA.
    (f) Timing.--The Secretary shall make every effort to complete the 
conveyance under subsection (a) not later than 1 year after the date of 
enactment of this Act.
    (g) Closing.--Real estate closings to complete the conveyance under 
subsection (a) may be staggered to facilitate the conveyance as agreed 
to by the Secretary and the Purchaser or CFRA.
    (h) Conveyance to Lessee.--Where the Lessee will purchase the 
Property from the Purchaser or CFRA, the Lessee may request the 
Secretary to have the conveyance documents prepared in the Lessee's 
name or names in order to minimize the time and documents required to 
complete the closing for each Property.
    (i) Costs.--The Lessee shall reimburse CFRA for a proportionate 
share of the costs to CFRA in completing the transactions contemplated 
by this Act, including any interest charges.
    (j) Costs.--The Lessee shall reimburse the Trust for a 
proportionate share of the costs to the Trust in completing the 
transactions contemplated by this Act, including any interest charges. 
In addition, the lessee shall reimburse the Trust for all costs, 
including the new appraisal, associated with conveying the Property 
from the Trust to the Lessee.

SEC. 5. AGREEMENT.

    (a) Requirement To Negotiate.--The Secretary, acting through the 
Bureau of Reclamation, shall negotiate an agreement with the Broadwater 
County, Montana, Board of Commissioners to transfer management of the 
Silo's and White Earth recreation areas. The Secretary shall grant an 
easement for an access road to these recreation areas.
    (b) Assessment of Need for Harbor.--Not later than 6 months after 
the date of the enactment of this Act, the Secretary, acting through 
the Bureau of Reclamation, shall assess the need for creating a harbor 
adjacent to the eastern shore of the south half of the Reservoir.

SEC. 6. USE OF PROCEEDS.

    (a) In General.--Proceeds of conveyances under this Act shall be 
available as follows:
            (1) 10 percent of the proceeds shall be applied by the 
        Secretary of the Treasury to reduce the outstanding debt for 
        the Pick-Sloan project at Canyon Ferry Reservoir.
            (2) 45 percent of the proceeds shall be deposited into a 
        separate account in the Treasury and shall be available to the 
        Secretary, subject to appropriations, for purchasing land or 
        conservation easements in the State of Montana.
            (3) 45 percent of the proceeds shall be available without 
        further appropriation to the Canyon Ferry Lake Trust 
        established under subsection (b) for the purposes of enhancing 
        recreation, fisheries, and conservation in and around the 
        Reservoir.
    (b) In lieu of a cash contribution to the Trust under section 
6(a)(3), CFRA may convey to the Trust the fee title for any Property 
not purchased by the Lessee. The value of each Property contribution 
under this paragraph shall be the fair market value of the Property 
under section 4 of this Act.
    (c) Canyon Ferry Lake Trust.--(1) There shall be established an 
entity to be known as the Canyon Ferry Lake Trust, the corpus of which 
shall initially include, at a minimum, the following funds:
            (A) One-third of amounts received by the Trust under 
        (6)(a)(3) shall be made available by the Trust to Broadwater 
        County, Montana, to improve access in the Broadwater County 
        portion of the Reservoir.
            (B) Two-thirds of amounts received by the Trust under 
        (6)(a)(3) shall be deposited into a permanent endowment that 
        may be used in the following manner:
                    (i) Fisheries improvement.
                    (ii) Improvement of campgrounds.
                    (iii) Lakeshore conservation, conservation 
                easements, and public access to Canyon Ferry Reservoir 
                and the watershed of the Missouri River from Canyon 
                Ferry Dam to the confluence of the Madison, Jefferson, 
                and Gallatin Rivers.
    (2) The Canyon Ferry Lake Trust shall be advised by a board 
composed of representatives from the following:
            (A) One appointee for the County Commission of Broadwater 
        County, Montana.
            (B) One appointee for the County Commission of Lewis and 
        Clark County, Montana.
            (C) One local agricultural landowner, as agreed to by Lewis 
        and Clark and Broadwater County Commissions, Montana.
            (D) One representative of a local hunting organization, as 
        agreed to by the Lewis and Clark and Broadwater County 
        Commissions, Montana.
            (E) One representative of a fisheries conservation 
        organization, as agreed to by Lewis and Clark and Broadwater 
        Counties, Montana.
            (F) One representative appointed by the Commissioner of the 
        Bureau of Reclamation or his or her designee.
            (G) One representative appointed by The Director of the 
        Montana Fish, Wildlife and Parks Department or his designee.
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