II 109th CONGRESS 2d Session S. 2205 IN THE SENATE OF THE UNITED STATES January 26, 2006 Mr. Thune 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.

1.

Short title

This Act may be cited as the Blunt Reservoir and Pierre Canal Land Conveyance Act of 2006.

2.

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

The term State means the State of South Dakota, including 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)

Acceptance of land and obligations

(1)

In general

As a condition of each conveyance under subsections (d)(5) and (e), respectively, the State shall agree to accept— (A)in as is condition, the portions of the Blunt Reservoir Feature and the Pierre Canal Feature that pass into State ownership; (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; and (C)the responsibility that the Commission will act as the agent for the Secretary in administering the purchase option extended to preferential leaseholders under subsection (d). (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 to the State under subsection (d)(5) or (e) or a sale to a preferential leaseholder under subsection (d) 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. (4)

Additional conditions of conveyance to State

A conveyance to the State under subsection (d)(5) or (e) shall be subject to the reservations by the United States and the conditions specified in section 1 of the Act of May 19, 1948 (chapter 310; 62 Stat. 240), as amended (16 U.S.C. 667b), for the transfer of property to State agencies for wildlife conservation purposes. (d)

Purchase option

(1)

In general

A preferential leaseholder shall have an option to purchase from the Commission, acting as an agent for the Secretary, 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 one 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)ten 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 enactment of this Act 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 Secretary 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 enactment of this Act. (4)

Valuation

(A)

In general

The value of a preferential lease parcel shall be its fair market value for agricultural purposes determined by an independent appraisal, exclusive of the value of private improvements made by the leaseholders while the land was federally owned before the date of the enactment of this Act, in conformance with the Uniform Appraisal Standards for Federal Land Acquisition. (B)

Fair market value

Any dispute over the fair market value of a property under subparagraph (A) shall be resolved in accordance with section 2201.4 of title 43, Code of Federal Regulations. (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 Secretary 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

Proceeds of sales of land under this Act shall be deposited as miscellaneous funds in the Treasury and such funds shall be made available, subject to appropriations, to the State for the establishment of a trust fund to pay the county taxes on the lands received by the State Department of Game, Fish, and Parks under the bill. (e)

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 or 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. (f)

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). (g)

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. (h)

Authorization of appropriations

There is authorized to be appropriated to carry out this Act $750,000 to reimburse the Secretary for expenses incurred in implementing this Act, and such sums as are necessary to reimburse the Commission for expenses incurred implementing this Act, not to exceed 10 percent of the cost of each transaction conducted under this Act.