[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1028 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1028

 To direct the Secretary of the Interior to convey certain parcels of 
land acquired for the Blunt Reservoir and Pierre Canal features of the 
 initial stage of the Oahe Unit, James Division, South Dakota, to the 
  Commission of Schools and Public Lands and the Department of Game, 
    Fish, and Parks of the State of South Dakota for the purpose of 
  mitigating lost wildlife habitat, on the condition that the current 
preferential leaseholders shall have an option to purchase the parcels 
              from the Commission, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 13, 2001

  Mr. Daschle (for himself and Mr. Johnson) 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 parcels of 
land acquired for the Blunt Reservoir and Pierre Canal features of the 
 initial stage of the Oahe Unit, James Division, South Dakota, to the 
  Commission of Schools and Public Lands and the Department of Game, 
    Fish, and Parks of the State of South Dakota for the purpose of 
  mitigating lost wildlife habitat, on the condition that the current 
preferential leaseholders shall have an option to purchase the parcels 
              from the Commission, and for other purposes.

    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 ``Blunt Reservoir and Pierre Canal 
Land Conveyance Act of 2001''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) under the Act of December 22, 1944 (commonly known as 
        the ``Flood Control Act of 1944'') (58 Stat. 887, chapter 665; 
        33 U.S.C. 701-1 et seq.), Congress approved the Pick-Sloan 
        Missouri River Basin Program--
                    (A) to promote the general economic development of 
                the United States;
                    (B) to provide for irrigation above Sioux City, 
                Iowa;
                    (C) to provide for municipal and industrial water 
                supply, fish and wildlife, and recreation;
                    (D) to protect urban and rural areas from 
                devastating floods of the Missouri River; and
                    (E) for other purposes;
            (2) the purpose of the Oahe Unit, James Division, of the 
        Oahe Irrigation Project was to meet the requirements of that 
        Act by providing irrigation above Sioux City, Iowa;
            (3) the principal features of the initial stage of the Oahe 
        Unit, James Division, of the Oahe Irrigation Project included--
                    (A) a system of main canals, including the Pierre 
                Canal, running east from the Oahe Reservoir; and
                    (B) the establishment of regulating reservoirs, 
                including the Blunt Dam and Reservoir, located 
                approximately 35 miles east of Pierre, South Dakota;
            (4) land to establish the Pierre Canal and Blunt Reservoir 
        was purchased between 1972 and 1977, when construction on the 
        initial stage of the Oahe Unit, James Division, was halted;
            (5) since 1978, the Commissioner of Reclamation has 
        administered the land--
                    (A) on a preferential lease basis to original 
                landowners or their descendants; and
                    (B) on a nonpreferential lease basis to other 
                persons;
            (6) the 2 largest reservoirs created by the Pick-Sloan 
        Missouri River Basin Program, Lake Oahe and Lake Sharpe, caused 
        the loss of approximately 221,000 acres of fertile, wooded 
        bottomland in South Dakota that constituted some of the most 
        productive, unique, and irreplaceable wildlife habitat in the 
        State;
            (7) the State has developed a plan to meet the Federal 
        obligation under the Fish and Wildlife Coordination Act (16 
        U.S.C. 661 et seq.) to mitigate the loss of wildlife habitat, 
        the implementation of which is authorized by section 602 of 
        title VI of Public Law 105-277 (112 Stat. 2681-660); and
            (8) it is in the interests of the United States and the 
        State to--
                    (A) provide original landowners or their 
                descendants with an opportunity to purchase back their 
                land; and
                    (B) transfer the remaining land to the State to 
                allow implementation of its habitat mitigation plan.

SEC. 3. BLUNT RESERVOIR AND PIERRE CANAL.

    (a) Definitions.--In this section:
            (1) Blunt reservoir feature.--The term ``Blunt Reservoir 
        feature'' means the Blunt Reservoir feature of the Oahe Unit, 
        James Division, authorized by the Act of August 3, 1968 (82 
        Stat. 624), as part of the Pick-Sloan Missouri River Basin 
        Program.
            (2) Commission.--The term ``Commission'' means the 
        Commission of Schools and Public Lands of the State.
            (3) Nonpreferential lease parcel.--The term 
        ``nonpreferential lease parcel'' means a parcel of land that--
                    (A) was purchased by the Secretary for use in 
                connection with the Blunt Reservoir feature or the 
                Pierre Canal feature; and
                    (B) was considered to be a nonpreferential lease 
                parcel by the Secretary as of January 1, 2001, and is 
                reflected as such on the roster of leases of the Bureau 
                of Reclamation for 2001.
            (4) Pierre canal feature.--The term ``Pierre Canal 
        feature'' means the Pierre Canal feature of the Oahe Unit, 
        James Division, authorized by the Act of August 3, 1968 (82 
        Stat. 624), as part of the Pick-Sloan Missouri River Basin 
        Program.
            (5) Preferential leaseholder.--The term ``preferential 
        leaseholder'' means a person or descendant of a person that 
        held a lease on a preferential lease parcel as of January 1, 
        2001, and is reflected as such on the roster of leases of the 
        Bureau of Reclamation for 2001.
            (6) Preferential lease parcel.--The term ``preferential 
        lease parcel'' means a parcel of land that--
                    (A) was purchased by the Secretary for use in 
                connection with the Blunt Reservoir feature or the 
                Pierre Canal feature; and
                    (B) was considered to be a preferential lease 
                parcel by the Secretary as of January 1, 2001, and is 
                reflected as such on the roster of leases of the Bureau 
                of Reclamation for 2001.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Commissioner of 
        Reclamation.
            (8) State.--
                    (A) In general.--The term ``State'' means the State 
                of South Dakota.
                    (B) Inclusion.--The term ``State'' includes a 
                successor in interest of the State.
            (9) Unleased parcel.--The term ``unleased parcel'' means a 
        parcel of land that--
                    (A) was purchased by the Secretary for use in 
                connection with the Blunt Reservoir feature or the 
                Pierre Canal feature; and
                    (B) is not under lease as of the date of enactment 
                of this Act.
    (b) Deauthorization.--The Blunt Reservoir feature is deauthorized.
    (c) Conveyance.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall convey all of the preferential lease 
parcels to the Commission, without consideration, on the condition that 
the Commission honor the purchase option provided to preferential 
leaseholders under subsection (e).
    (d) Acceptance of Land and Obligations.--
            (1) In general.--As a condition of each conveyance under 
        subsections (c) and (f), respectively, the State shall agree to 
        accept--
                    (A) in ``as is'' condition, the Blunt Reservoir 
                Feature and the Pierre Canal Feature; and
                    (B) any liability accruing after the date of 
                conveyance as a result of the ownership, operation, or 
                maintenance of the features referred to in subparagraph 
                (A), including liability associated with certain 
                outstanding obligations associated with expired 
                easements, or any other right granted in, on, over, or 
                across either feature.
            (2) Responsibilities of the state.--An outstanding 
        obligation described in paragraph (1)(B) shall inure to the 
        benefit of, and be binding upon, the State.
            (3) Oil, gas, mineral, and other outstanding rights.--A 
        conveyance under subsection (c) or (f) shall be made subject 
        to--
                    (A) oil, gas, and other mineral rights reserved of 
                record, as of the date of enactment of this Act, by or 
                in favor of a third party; and
                    (B) any permit, license, lease, right-of-use, or 
                right-of-way of record in, on, over, or across a 
                feature referred to in paragraph (1)(A) that is 
                outstanding as to a third party as of the date of 
                enactment of this Act.
    (e) Purchase Option.--
            (1) In general.--A preferential leaseholder shall have an 
        option to purchase from the Commission the preferential lease 
        parcel that is the subject of the lease.
            (2) Terms.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a preferential leaseholder may elect to purchase a 
                parcel on 1 of the following terms:
                            (i) Cash purchase for the amount that is 
                        equal to--
                                    (I) the value of the parcel 
                                determined under paragraph (4); minus
                                    (II) 10 percent of that value.
                            (ii) Installment purchase, with 10 percent 
                        of the value of the parcel determined under 
                        paragraph (4) to be paid on the date of 
                        purchase and the remainder to be paid over not 
                        more than 30 years at 3 percent annual 
                        interest.
                    (B) Value under $10,000.--If the value of the 
                parcel is under $10,000, the purchase shall be made on 
                a cash basis in accordance with subparagraph (A)(i).
            (3) Option exercise period.--
                    (A) In general.--A preferential leaseholder shall 
                have until the date that is 5 years after the date of 
                the conveyance under subsection (c) to exercise the 
                option under paragraph (1).
                    (B) Continuation of leases.--Until the date 
                specified in subparagraph (A), a preferential 
                leaseholder shall be entitled to continue to lease from 
                the Commission the parcel leased by the preferential 
                leaseholder under the same terms and conditions as 
                under the lease, as in effect as of the date of 
                conveyance.
            (4) Valuation.--
                    (A) In general.--The value of a preferential lease 
                parcel shall be determined to be, at the election of 
                the preferential leaseholder--
                            (i) the amount that is equal to--
                                    (I) the number of acres of the 
                                preferential lease parcel; multiplied 
                                by
                                    (II) the amount of the per-acre 
                                assessment of adjacent parcels made by 
                                the Director of Equalization of the 
                                county in which the preferential lease 
                                parcel is situated; or
                            (ii) the amount of a valuation of the 
                        preferential lease parcel for agricultural use 
                        made by an independent appraiser.
                    (B) Cost of appraisal.--If a preferential 
                leaseholder elects to use the method of valuation 
                described in subparagraph (A)(ii), the cost of the 
                valuation shall be paid by the preferential 
                leaseholder.
            (5) Conveyance to the state.--
                    (A) In general.--If a preferential leaseholder 
                fails to purchase a parcel within the period specified 
                in paragraph (3)(A), the Commission shall convey the 
                parcel to the State of South Dakota Department of Game, 
Fish, and Parks.
                    (B) Wildlife habitat mitigation.--Land conveyed 
                under subparagraph (A) shall be used by the South 
                Dakota Department of Game, Fish, and Parks for the 
                purpose of mitigating the wildlife habitat that was 
                lost as a result of the development of the Pick-Sloan 
                project.
            (6) Use of proceeds.--Of the proceeds of sales of land 
        under this subsection--
                    (A) not more than $750,000 shall be used to 
                reimburse the Secretary for expenses incurred in 
                implementing this Act;
                    (B) an amount not exceeding 10 percent of the cost 
                of each transaction conducted under this Act shall be 
                used to reimburse the Commission for expenses incurred 
                implementing this Act;
                    (C) $3,095,000 shall be deposited in the South 
                Dakota Wildlife Habitat Mitigation Trust Fund 
                established by section 603 of the Water Resources 
                Development Act of 1999 (113 Stat. 389) for the purpose 
                of paying property taxes on land transferred to the 
                State;
                    (D) $185,400 shall be transferred to Sully County, 
                South Dakota;
                    (E) $14,600 shall be transferred to Hughes County, 
                South Dakota; and
                    (F) the remainder shall be used by the Commission 
                to support public schools in the State.
    (f) Conveyance of Nonpreferential Lease Parcels and Unleased 
Parcels.--
            (1) Conveyance by secretary to state.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Secretary shall 
                convey to the South Dakota Department of Game, Fish, 
                and Parks the nonpreferential lease parcels and 
                unleased parcels of the Blunt Reservoir and Pierre 
                Canal.
                    (B) Wildlife habitat mitigation.--Land conveyed 
                under subparagraph (A) shall be used by the South 
                Dakota Department of Game, Fish, and Parks for the 
                purpose of mitigating the wildlife habitat that was 
                lost as a result of the development of the Pick-Sloan 
                project.
            (2) Land exchanges for nonpreferential lease parcels and 
        unleased parcels.--
                    (A) In general.--With the concurrence of the South 
                Dakota Department of Game, Fish, and Parks, the South 
                Dakota Commission of Schools and Public Lands may allow 
                a person to exchange land that the person owns 
                elsewhere in the State for a nonpreferential lease 
                parcel or unleased parcel at Blunt Reservoir or Pierre 
                Canal, as the case may be.
                    (B) Priority.--The right to exchange 
                nonpreferential lease parcels or unleased parcels shall 
                be granted in the following order of priority:
                            (i) Exchanges with current lessees for 
                        nonpreferential lease parcels.
                            (ii) Exchanges with adjoining and adjacent 
                        landowners for unleased parcels and 
                        nonpreferential lease parcels not exchanged by 
                        current lessees.
                    (C) Easement for water conveyance structure.--As a 
                condition of the exchange of land of the Pierre Canal 
                Feature under this paragraph, the United States 
                reserves a perpetual easement to the land to allow for 
                the right to design, construct, operate, maintain, 
                repair, and replace a pipeline or other water 
                conveyance structure over, under, across, or through 
                the Pierre Canal Feature.
    (g) Release From Liability.--
            (1) In general.--Effective on the date of conveyance of any 
        parcel under this Act, the United States shall not be held 
        liable by any court for damages of any kind arising out of any 
        act, omission, or occurrence relating to the parcel, except for 
        damages for acts of negligence committed by the United States 
        or by an employee, agent, or contractor of the United States, 
        before the date of conveyance.
            (2) No additional liability.--Nothing in this section adds 
        to any liability that the United States may have under chapter 
        171 of title 28, United States Code (commonly known as the 
        ``Federal Tort Claims Act'').
    (h) Requirements Concerning Conveyance of Lease Parcels.--
            (1) Interim requirements.--During the period beginning on 
        the date of enactment of this Act and ending on the date of 
        conveyance of the parcel, the Secretary shall continue to lease 
        each preferential lease parcel or nonpreferential lease parcel 
        to be conveyed under this section under the terms and 
        conditions applicable to the parcel on the date of enactment of 
        this Act.
            (2) Provision of parcel descriptions.--Not later than 180 
        days after the date of enactment of this Act, the Secretary 
        shall provide the State a full legal description of all 
        preferential lease parcels and nonpreferential lease parcels 
        that may be conveyed under this section.
    (i) Funding of the South Dakota Terrestrial Wildlife Habitat 
Restoration Trust Fund.--Section 603(b) of the Water Resources 
Development Act of 1999 (113 Stat. 388) is amended by striking 
``$108,000,000'' and inserting ``$111,095,000''.
    (j) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this Act $750,000.
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