[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1612 Reported in Senate (RS)]






                                                       Calendar No. 751
106th CONGRESS
  2d Session
                                S. 1612

                          [Report No. 106-373]

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 22, 1999

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

                            August 25, 2000

 Reported under authority of the order of the Senate of July 26, 2000, 
                  by Mr. Murkowski, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To direct the Secretary of the Interior to convey certain irrigation 
project property to certain irrigation and reclamation 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Missouri River Basin, 
Middle Loup Division Facilities Conveyance Act''.</DELETED>

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Commissioner.--The term ``Commissioner'' means 
        the Commissioner of Reclamation.</DELETED>
        <DELETED>    (2) District.--The term ``District'' means--
        </DELETED>
                <DELETED>    (A) the Farwell Irrigation District, a 
                political subdivision of the State of 
                Nebraska;</DELETED>
                <DELETED>    (B) the Sargent Irrigation District, a 
                political subdivision of the State of Nebraska; 
                and</DELETED>
                <DELETED>    (C) the Loup Basin Reclamation District, a 
                political subdivision of the State of 
                Nebraska.</DELETED>
        <DELETED>    (3) District trust.--The term ``District Trust'' 
        means the Nebraska-Middle Loup River Community Environmental 
        Trust established under section 5(a)(2)(B)(v).</DELETED>
        <DELETED>    (4) Game and parks commission trust.--The term 
        ``Game and Parks Commission Trust'' means the Nebraska-Middle 
        Loup River Game and Parks Commission Trust established under 
        section 5(a)(2)(B)(vi).</DELETED>
        <DELETED>    (5) Project.--The term ``Project'' means Sherman 
        Reservoir, Milburn Diversion Dam, Arcadia Diversion Dam, 
        related canals and other related lands, water rights, acquired 
        land, distribution and diversion facilities, contracts, 
        personal property, and other associated interests owned by the 
        United States and authorized under the Act of June 17, 1902 (32 
        Stat. 388, chapter 1093), the Act of December 22, 1944 
        (commonly known as the ``Flood Control Act of 1944'') (58 Stat. 
        887, chapter 665), and the Act of August 3, 1956 (70 Stat. 975, 
        chapter 917).</DELETED>
        <DELETED>    (6) Repayment and water service contracts.--The 
        term ``Repayment and Water Service Contracts'' means all 
        repayment and water service contracts between the Commissioner 
        and the District relating to the Project.</DELETED>
        <DELETED>    (7) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.</DELETED>
        <DELETED>    (8) Trust.--The term ``Trust'' means--</DELETED>
                <DELETED>    (A) the District Trust; and</DELETED>
                <DELETED>    (B) the Game and Parks Commission 
                Trust.</DELETED>

<DELETED>SEC. 3. CONVEYANCE OF THE PROJECT.</DELETED>

<DELETED>    (a) Conveyance.--</DELETED>
        <DELETED>    (1) In general.--The Secretary shall convey to the 
        Districts, by quitclaim deed, assignment, or patent, the 
        interest of the United States in the Project, in consideration 
        of payment to the Secretary--</DELETED>
                <DELETED>    (A) by the Districts, of an amount not to 
                exceed $3,000,000, determined in accordance with the 
                Bureau of Reclamation document entitled ``Framework for 
                Title Transfer'' and the memorandum of agreement 
                between the Commissioner and the Districts under 
                section 5; and</DELETED>
                <DELETED>    (B) by the Western Area Power 
                Administration, of $2,000,000.</DELETED>
        <DELETED>    (2) Timing.--The conveyance under paragraph (1) 
        shall be made concurrently with the making of the payment under 
        paragraph (1)(A), but the payment under paragraph (1)(B) shall 
        be made from capacity and energy charges at Pick-Sloan Missouri 
        Basin Program firm power rates received in fiscal year 1999 or 
        any subsequent fiscal year in which the amount of power sale 
        revenue received exceeds the amount of interest and operation 
        and maintenance obligations of the Western Area Power 
        Administration by at least $2,000,000, to the extent of the 
        excess.</DELETED>
        <DELETED>    (3) Satisfaction of obligations against the 
        project.--The payment under paragraph (1)(A) shall constitute 
        full and complete satisfaction of all obligations against the 
        Project, the Districts, and the Western Area Power 
        Administration existing before the date of the conveyance or 
        thereafter relating to the Project, including--</DELETED>
                <DELETED>    (A) future obligations for additional 
                drainage under section 5(a)(2)(iv);</DELETED>
                <DELETED>    (B) obligations under any contracts 
                entered into between the United States, the Districts, 
                and the Western Area Power Administration or its 
                predecessors; and</DELETED>
                <DELETED>    (C) any obligation that may have been 
                required by the Act of December 22, 1944 (58 Stat. 887, 
                chapter 665) or other related Federal law.</DELETED>
        <DELETED>    (4) Satisfaction of obligations for irrigation 
        benefits.--The conveyance of the Project and the payment of the 
        consideration under paragraph (1) shall constitute full 
        satisfaction of any and all obligations of the Districts or of 
        the Pick-Sloan Missouri Basin Program firm power users or the 
        Western Area Power Administration for irrigation benefits of 
        the Project or for any other benefits conveyed to the 
        Districts.</DELETED>
<DELETED>    (b) Contaminated Property.--</DELETED>
        <DELETED>    (1) Remedial action.--The Secretary shall convey 
        the Project without regard to whether all necessary remedial 
        action required under section 120(h)(3) of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9620(h)(3)) on any part of the Project has been 
        completed.</DELETED>
        <DELETED>    (2) Continuing obligation to complete remedial 
        action.--Notwithstanding any law to the contrary, the United 
        States shall remain during and subsequent to the conveyance 
        obligated, at the expense of the United States, to complete any 
        required remedial action.</DELETED>
<DELETED>    (c) Extinguishment of Obligations Between the Commissioner 
and the Districts.--Effective on the date of the conveyance, all 
obligations between the Commissioner and the Districts relating to the 
Project and the Repayment and Water Service Contracts are 
extinguished.</DELETED>
<DELETED>    (d) Payment of NEPA Study Costs.--The Commissioner and the 
Districts shall each pay 50 percent of the costs associated with 
compliance with the National Environmental Policy Act (42 U.S.C. 4321 
et seq.).</DELETED>
<DELETED>    (e) Crediting of Certain Items Toward Payment Under 
Subsection (a)(1)(A).--There shall be credited toward the payment under 
subsection (a)(1)(A)--</DELETED>
        <DELETED>    (1) the amount of any payment made by the 
        Districts before the date of the conveyance for compliance with 
        the National Environmental Policy Act (42 U.S.C. 4321 et seq.) 
        in excess of 50 percent of the cost of compliance;</DELETED>
        <DELETED>    (2) the amount of any payments made by the 
        Districts under contracts with the Commissioner between January 
        1, 1999, and the date of the conveyance;</DELETED>
        <DELETED>    (3) the present value of future operation and 
        maintenance costs required for historic preservation on Project 
        land at Sherman Reservoir; and</DELETED>
        <DELETED>    (4) any other amount specified in the memorandum 
        of agreement between the Commissioner and the Districts under 
        section 5.</DELETED>
<DELETED>    (f) Additional Drainage.--</DELETED>
        <DELETED>    (1) In general.--Of the $2,000,000 paid by the 
        Western Area Power Administration under subsection (a), 
        $500,000--</DELETED>
                <DELETED>    (A) shall be deposited in the fund 
                referred to in section 5(a)(3); and</DELETED>
                <DELETED>    (B) shall be available for additional 
                drainage projects.</DELETED>
        <DELETED>    (2) Nonreimbursability.--The amount deposited 
        under paragraph (1) shall be nonreimbursable and 
        nonreturnable.</DELETED>
        <DELETED>    (3) Authorization of appropriations.--There is 
        authorized to be appropriated not more than $500,000 for the 
        additional drainage projects.</DELETED>

<DELETED>SEC. 4. LIABILITY.</DELETED>

<DELETED>    Effective on the date of conveyance of the Project, the 
United States shall not be liable for claims, costs, damages, or 
judgments of any kind arising out of any act, omission, or occurrence 
related to the Project except for such claims, costs, or damages 
arising from acts of negligence committed by the United States or by 
employees, agents, or contractors of the United States before the date 
of conveyance for which the United States is liable under chapter 171 
of title 28, United States Code (commonly known as the ``Federal Tort 
Claims Act'').</DELETED>

<DELETED>SEC. 5. COMPLETION OF CONVEYANCE.</DELETED>

<DELETED>    (a) In General.--The Secretary shall not make the 
conveyance under section 3 until the following events have been 
completed:</DELETED>
        <DELETED>    (1) Compliance with the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 et seq.).</DELETED>
        <DELETED>    (2) Execution of--</DELETED>
                <DELETED>    (A) memoranda of agreement between the 
                Commissioner and the Districts describing the purchase 
                price and other terms and conditions of the conveyance 
                consistent with this Act; and</DELETED>
                <DELETED>    (B) an agreement by the Districts to 
                manage the Project in a manner substantially similar to 
                the manner in which the Project was managed before the 
                conveyance and in accordance with applicable Federal 
                and State laws, including--</DELETED>
                        <DELETED>    (i) preserving on a permanent 
                        basis the right of the State of Nebraska Games 
                        and Parks Commission to develop, provide, and 
                        protect the public interest in Project fish, 
                        wildlife, and recreation facilities related to 
                        the Projects;</DELETED>
                        <DELETED>    (ii) providing for protection of 
                        cultural resources at the Project after the 
                        conveyance consistent with applicable law that 
                        authorizes the Districts or others with 
                        responsibility to protect significant historic 
                        features in situ or otherwise;</DELETED>
                        <DELETED>    (iii) providing that the Districts 
                        shall annually make payments to local 
                        governments in the amounts in which the 
                        Commissioner made payment to the local 
                        governments under chapter 69 of title 31, 
                        United states Code (commonly known as 
                        ``payments in lieu of taxes'') for fiscal year 
                        1999;</DELETED>
                        <DELETED>    (iv) providing for--</DELETED>
                                <DELETED>    (I) a plan for additional 
                                drainage work in the Middle Loup Valley 
                                as specified in the memoranda of 
agreement under paragraph (1); and</DELETED>
                                <DELETED>    (II) the funding of the 
                                additional drainage work;</DELETED>
                        <DELETED>    (v) providing for the 
                        establishment by the Districts of an 
                        organization to be known as the ``Nebraska-
                        Middle Loup River Community Environmental 
                        Trust'' and to be organized under State law to 
                        preserve, protect, enhance, and manage the 
                        Project by--</DELETED>
                                <DELETED>    (I) stabilizing surface 
                                and ground water supplies;</DELETED>
                                <DELETED>    (II) conserving water and 
                                land resources;</DELETED>
                                <DELETED>    (III) carrying out 
                                essential drainage projects using funds 
                                deposited under section 3(f); 
                                and</DELETED>
                                <DELETED>    (IV) expanding knowledge 
                                of water and land resources for 
                                enhancing Project operations and 
                                improving the service of Project 
                                purposes; and</DELETED>
                        <DELETED>    (vi) providing for the 
                        establishment by the Nebraska Game and Parks 
                        Commission of an organization to be known as 
                        the ``Nebraska-Middle Loup River Game and Parks 
                        Trust'' and to be organized under State law 
                        to--</DELETED>
                                <DELETED>    (I) improve and enhance 
                                fisheries and recreational 
                                opportunities; and</DELETED>
                                <DELETED>    (II) expand knowledge of 
                                water and land resources for enhancing 
                                Project operations and improving the 
                                service of Project purposes.</DELETED>
        <DELETED>    (3) Deposits in the district trust.--On receipt of 
        the payments under section 3(a)(1), the Secretary shall deposit 
        in the District trust--</DELETED>
                <DELETED>    (A) $2,000,000 of the amount received 
                under section 3(a)(1); and</DELETED>
                <DELETED>    (B) the entire amount received under 
                section 3(a)(2).</DELETED>
        <DELETED>    (4) No tax; no effect on rates.--No payment under 
        this Act--</DELETED>
                <DELETED>    (A) shall be subject to Federal or State 
                income tax; or</DELETED>
                <DELETED>    (B) shall affect Pick-Sloan Missouri Basin 
                Program firm power rates in any way.</DELETED>
        <DELETED>    (5) Use of funds.--</DELETED>
                <DELETED>    (A) Funds deposited under section 3(f).--
                The Trusts shall by their charters prohibit the use of 
                any funds deposited under section 3(f) for routine 
                operation and maintenance work by the Districts, the 
                Game and Parks Commission, or any of the participating 
                agencies of the Trusts.</DELETED>
                <DELETED>    (B) Other funds.--Funds received by a 
                Trust from a District or any other source may be used 
                for any purpose.</DELETED>
        <DELETED>    (6) Assistance for drainage work.--The Game and 
        Parks Commission Trust shall provide for direct priority 
        assistance to the Districts for drainage work in the Middle 
        Loup River Valley under conditions requiring greater trust fund 
        investments than are available from the Trust.</DELETED>
<DELETED>    (b) Report.--If the conveyance under section 3 is not 
substantially completed on or before December 31, 2000, the Secretary 
and the Districts shall promptly submit to the Committee on Resources 
of the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate a report on the status of the conveyance 
describing the matters remaining to be resolved before completion of 
the conveyance and stating the anticipated date for the completion of 
the conveyance.</DELETED>
<DELETED>    (c) Future Benefits.--</DELETED>
        <DELETED>    (1) In general.--Effective on the date of the 
        conveyance under section 3, the Districts shall not be entitled 
        to receive any further benefits under reclamation law not 
        otherwise available attributable to its status as a reclamation 
        project under the Act of June 17, 1902 (32 Stat. 388, chapter 
        1093), and Acts supplemental to and amendatory of that Act (43 
        U.S.C. 371 et seq.).</DELETED>
        <DELETED>    (2) No flood control component.--After the date of 
        the conveyance under subsection 3, the Project shall no longer 
        have a flood control component.</DELETED>

SECTION 1. SHORT TITLE.

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

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of Reclamation.
            (2) District.--The term ``District'' means--
                    (A) the Farwell Irrigation District, a political 
                subdivision of the State of Nebraska;
                    (B) the Sargent Irrigation District, a political 
                subdivision of the State of Nebraska; and
                    (C) the Loup Basin Reclamation District, a 
                political subdivision of the State of Nebraska.
            (3) Project.--The term ``Project'' means Sherman Reservoir, 
        Milburn Diversion Dam, Arcadia Diversion Dam, related canals 
        and other related lands, water rights, acquired land, 
        distribution and diversion facilities, contracts, personal 
        property, and other associated interests owned by the United 
        States and authorized under the Act of June 17, 1902 (32 Stat. 
        388, chapter 1093), the Act of December 22, 1944 (commonly 
        known as the ``Flood Control Act of 1944'') (58 Stat. 887, 
        chapter 665), and the Act of August 3, 1956 (70 Stat. 975, 
        chapter 917).
            (4) Repayment and water service contracts.--The term 
        ``Repayment and Water Service Contracts'' means all repayment 
        and water service contracts between the Commissioner and the 
        District relating to the Project.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. CONVEYANCE OF THE PROJECT.

    (a) Conveyance.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act and in accordance with all applicable 
        laws, the Secretary shall convey to the Districts, by quitclaim 
        deed, assignment, or patent, the interest of the United States 
        in the Project, in consideration of payment to the Secretary--
                    (A) by the Districts of $2,847,360, which--
                          (i) has been determined in accordance with 
                        the Bureau of Reclamation document entitled 
                        ``Framework for Title Transfer'' and the 
                        memorandum of understanding between the 
                        Commissioner and the Districts under section 5; 
                        and
                            (ii) includes all credits and adjustments 
                        provided for in that document and memorandum of 
                        understanding; and
                    (B) by the Western Area Power Administration, of 
                $2,600,000.
            (2) Cancellation of obligation.--The obligation to make 
        payments due and owing from the Districts to the United States 
        under the repayment and water service contracts are canceled 
        for the year 2000 and thereafter.
            (3) Timing.--The conveyance under paragraph (1) shall be 
        made concurrently with the making of the payment under 
        paragraph (1)(A), but the payment under paragraph (1)(B) shall 
        be made from capacity and energy charges at Pick-Sloan Missouri 
        Basin Program firm power rates received in fiscal year 2000 or 
        the first subsequent fiscal year in which the amount of power 
        sale revenue received exceeds the amount of interest and 
        operation and maintenance obligations of the Western Area Power 
        Administration by at least $2,600,000, to the extent of 
the excess.
            (4) Satisfaction of obligations against the project.--The 
        payment under paragraph (1)(A) shall constitute full and 
        complete satisfaction of all obligations of the Western Area 
        Power Administration against the Project, the United States, 
        and the Districts existing before the date of the conveyance or 
        thereafter relating to the Project, including--
                    (A) future obligations for additional drainage 
                required in the project;
                    (B) obligations under any contracts entered into 
                between the United States, the Districts, and the 
                Western Area Power Administration or its predecessors; 
                and
                    (C) any obligation that may have been required by 
                the Act of December 22, 1944 (58 Stat. 887, chapter 
                665) or other related Federal law.
            (5) Satisfaction of obligations for irrigation benefits.--
        The conveyance of the Project and the payment of the 
        consideration under paragraph (1) shall constitute full 
        satisfaction of any and all obligations of the Districts or of 
        the Pick-Sloan Missouri Basin Program firm power users of the 
        Western Area Power Administration for irrigation benefits of 
        the Project or for any other benefits conveyed to the 
        Districts.
    (b) Contaminated Property.--The Secretary shall convey the Project 
without regard to whether all necessary remedial action required under 
section 120(h)(3) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)(3)) on any 
part of the Project has been completed.
    (c) Extinguishment of Obligations Between the Commissioner and the 
Districts.--Effective on the date of the conveyance, all obligations 
not canceled under the subsection (a)(2) between the Secretary and the 
Districts relating to the Project and the Repayment and Water Service 
Contracts are extinguished.

SEC. 4. LIABILITY.

    Effective on the date of conveyance of the Project, the United 
States shall not be liable for claims, costs, damages, or judgments of 
any kind arising out of any act, omission, or occurrence related to the 
Project except for such claims, costs, or damages arising from acts of 
negligence committed by the United States or by employees or agents of 
the United States before the date of conveyance for which the United 
States is liable under chapter 171 of title 28, United States Code 
(commonly known as the ``Federal Tort Claims Act'').

SEC. 5. COMPLETION OF CONVEYANCE.

    (a) In General.--The Secretary shall not make the conveyance under 
section 3 until the following events have been completed:
            (1) Compliance with the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.).
            (2) Execution of a memorandum of understanding between the 
        Commissioner and the Districts describing the purchase price 
        and other terms and conditions of the conveyance consistent 
        with this Act.
    (b) Distriction Management of Project.--The Districts shall manage 
the Project in a manner substantially similar to the manner in which 
the Project was managed before the conveyance and in accordance with 
applicable Federal and State laws, including--
            (1) entering into an agreement with Nebraska Games and 
        Parks Commission that preserves on a permanent basis the right 
        of the Commission to develop, provide, and protect the public 
        interest in Project fish, wildlife, and recreation facilities 
        related to the Projects; and
            (2) entering into an agreement with the University of 
        Nebraska Lincoln-State Museum that provides for protection of 
        cultural resources at the Project after the conveyance 
        consistent with applicable law that authorizes the Districts or 
        others with responsibility to protect significant historic 
        features in situ or otherwise; and
            (3) providing that the Districts shall annually make 
        payments to local governments in the amounts in which the 
        Commissioner made payment to the local governments under 
        chapter 69 of title 31, United states Code (commonly known as 
        ``payments in lieu of taxes'') for fiscal year 1999;
    (c) Crediting to Reclamation Fund.--All funds paid to the Secretary 
under this Act shall be credited to the Reclamation Fund in the 
Treasury of the United States toward repayment of capital costs of the 
project in an amount equal to the associated undiscounted obligation.
    (d) No Effect on Rates.--No payment under this Act shall affect 
Pick-Sloan Missouri Basin Program firm power rates in any way.
    (e) Report.--If the conveyance under section 3 is not substantially 
completed on or before December 31, 2000, the Secretary and the 
Districts shall promptly submit to the Committee on Resources of the 
House of Representatives and the Committee on Energy and Natural 
Resources of the Senate a report on the status of the conveyance 
describing the matters remaining to be resolved before completion of 
the conveyance and stating the anticipated date for the completion of 
the conveyance.
    (f) Future Benefits.--
            (1) In general.--Effective on the date of the conveyance 
        under section 3, the Middle Loup Division of the Missouri River 
        Basin Project--
                    (A) shall not be treated as a Federal reclamation 
                project; and
                    (B) shall not be subject to the reclamation laws or 
                entitled to receive any reclamation benefits under 
                those laws.
            (2) No flood control component.--After the date of the 
        conveyance under subsection 3, the Project shall no longer have 
        a flood control component.


                                                       Calendar No. 751

106th CONGRESS

  2d Session

                                S. 1612

                          [Report No. 106-373]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                            August 25, 2000

                       Reported with an amendment