[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 706 Enrolled Bill (ENR)]
H.R.706
One Hundred Seventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the twenty-third day of January, two thousand and two
An Act
To direct the Secretary of the Interior to convey certain properties in
the vicinity of the Elephant Butte Reservoir and the Caballo Reservoir,
New Mexico.
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 ``Lease Lot Conveyance Act of 2002''.
SEC. 2. FINDINGS.
The Congress finds that the conveyance of the Properties to the
Lessees for fair market value would have the beneficial results of--
(1) 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;
(2) sustaining existing economic conditions in the vicinity of
the Properties, while providing the new owners of the Properties
the security to invest in permanent structures and improvements;
and
(3) adding needed jobs to the county in which the Properties
are located and increasing revenue to the county and surrounding
communities through property and gross receipt taxes, thereby
increasing economic stability and a sustainable economy in one of
the poorest counties in New Mexico.
SEC. 3. DEFINITIONS.
In this Act:
(1) Fair market value.--The term ``fair market value'' means,
with respect to a parcel of property, the value of the property
determined--
(A) without regard to improvements constructed by the
Lessee of the property;
(B) by an appraisal in accordance with the Uniform
Standards for Federal Land Acquisitions; and
(C) by an appraiser approved by the Secretary and the
purchaser.
(2) Irrigation districts.--The term ``Irrigation Districts''
means the Elephant Butte Irrigation District and the El Paso County
Water Improvement District No. 1.
(3) Lessee.--The term ``Lessee'' means the leaseholder of a
Property on the date of enactment of this Act, and any heir,
executor, or assign of the leaseholder with respect to that
leasehold interest.
(4) Property.--The term ``Property'' means any of the cabin
sites comprising the Properties.
(5) Properties.--The term ``Properties'' means all the real
property comprising 403 cabin sites under the administrative
jurisdiction of the Bureau of Reclamation that are located along
the western portion of the reservoirs in Elephant Butte State Park
and Caballo State Park, New Mexico, including easements, roads, and
other appurtenances. The exact acreage and legal description of
such real property shall be determined by the Secretary after
consulting with the Purchaser.
(6) Purchaser.--The term ``Purchaser'' means the Elephant
Butte/Caballo Leaseholders Association, Inc., a nonprofit
corporation established under the laws of New Mexico.
(7) Reservoirs.--The term ``reservoirs'' means the Elephant
Butte Reservoir and the Caballo Reservoir in the State of New
Mexico.
(8) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
SEC. 4. CONVEYANCE OF PROPERTIES.
(a) In General.--The Secretary shall convey to the Purchaser in
accordance with this Act, subject to valid existing rights, all right,
title, and interest of the United States in and to the Properties and
all appurtenances thereto, including specifically easements for--
(1) vehicular access to each Property;
(2) drainage; and
(3) access to and the use of all ramps, retaining walls, and
other improvements for which access isprovided under the leases
that apply to the Properties as of the date of the enactment of this
Act.
(b) Consideration.--As consideration for any conveyance under this
section, the Secretary shall require the Purchaser to pay to the United
States fair market value of the Properties.
SEC. 5. TERMS OF CONVEYANCE.
(a) Specific Conditions.--As conditions of any conveyance to the
Purchaser under this Act, the Secretary shall require the following:
(1) Leaseholders' option.--The Purchaser shall grant to each
Lessee of a Property an option--
(A) to purchase the Property at fair market value; or
(B) to continue leasing the Property on terms to be
negotiated with the Purchaser.
(2) Administrative costs.--Any reasonable administrative cost
incurred by the Secretary incident to the conveyance under section
6 shall be reimbursed by the Purchaser.
(b) Restrictive Use Covenant.--
(1) In general.--To maintain the unique character of the area
in the vicinity of the Reservoirs, the Secretary shall establish,
by the terms of conveyance, use restrictions to carry out paragraph
(2) that--
(A) are appurtenant to, and run with, each Property; and
(B) are binding upon each subsequent owner of each
Property.
(2) Access to reservoirs.--The use restrictions required by
paragraph (1) shall ensure that--
(A) public access to and along the shoreline of the
Reservoirs in existence on the date of enactment of this Act is
not obstructed;
(B) adequate public access to and along the shoreline of
the Reservoirs is maintained; and
(C) the operation of the Reservoirs by the Secretary or the
Irrigation Districts shall not result in liability of the
United States or the Irrigation Districts for damages incurred,
as a direct or indirect result of such operation, by the owner
of any Property conveyed under this Act, including--
(i) damages for any loss of use or enjoyment of a
Property; and
(ii) damages resulting from any modifications or
construction of any reservoir dam.
(c) Timing.--
(1) In general.--The Secretary shall convey the Properties
under this Act as soon as practicable after the date of enactment
of this Act and in accordance with all applicable law.
(2) Report.--If the Secretary has not completed conveyance of
the Properties to the Purchaser by the end of the 1-year period
beginning on the date of the enactment of this Act, the Secretary
shall, before the end of that period, submit a report to the
Congress explaining the reasons that conveyance has not been
completed and stating the date by which the conveyance will be
completed.
(d) Reimbursement of Purchaser's Costs.--The terms of conveyance
shall authorize the Purchaser to require each Lessee to reimburse the
Purchaser for a proportionate share of the costs incurred by the
Purchaser in completing the transactions pursuant to this Act,
including any interest charges.
SEC. 6. RESOLUTION OF CLAIMS AND DISPUTES.
After conveyance of the Properties to the Purchaser, if any Lessee
has a dispute with or claim against the Purchaser or any of its
officers, directors, or members arising from the Properties, the Lessee
shall promptly give written notice of the dispute or claim to the
Purchaser. If such notice is not provided to the Purchaser within 20
days after the date the Lessee knew or should have known of such
dispute or claim, then any right of the Lessee for relief based on such
dispute or claim shall be waived. If the Lessee and the Purchaser are
unable to resolve the dispute or claim by mediation, the dispute or
claim shall be resolved by binding arbitration.
SEC. 7. FEDERAL RECLAMATION LAW.
No conveyance under this Act shall restrict or limit the authority
or ability of the Secretary to fulfill the duties of the Secretary
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.).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.