[Congressional Record Volume 142, Number 117 (Friday, August 2, 1996)]
[Senate]
[Page S9555]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GORTON:
  S. 2018. A bill to approve a settlement agreement between the Bureau 
of Reclamation and the Oroville-Tonasket Irrigation District; to the 
Committee on Energy and Natural Resources.


                         settlement legislation

  Mr. GORTON. Mr. President, today I introduce legislation that will 
authorize settlement between the Bureau of Reclamation and the 
Oroville-Tonasket Irrigation District in Washington state. Congressman 
Doc Hastings has introduced identical legislation on this subject in 
the House of Representatives.
  This legislation will authorize a carefully negotiated settlement 
between the BOR and the Oroville-Tonasketi Irrigation District. If 
enacted, this legislation will save the BOR, and therefore the Nation's 
taxpayers, money that would otherwise be spent fighting with the 
irrigation district in court. Briefly, the legislation directs the 
irrigation district to release and discharge all past and future claims 
against the United States associated with the project--such claims are 
estimated at $4.5 million. The irrigation district will assume full 
responsibility to indemnify and defend the United States against any 
third-party claims associated with the project. The irrigation district 
will make a cash payment of $350,000 to the United States--a condition 
that has already been met. The irrigation district will release the 
United States from its obligation to remove existing dilapidated 
facilities--cost estimated at $150,000 in 1978. The district will also 
be solely responsible for the operations and maintenance of the 
project, and will agree to continue to deliver water to and provide for 
O&M of the wildlife Mitigation facilities at its own expense.
  The legislation directs the BOR to release and discharge the 
irrigation district's construction charge obligation under the 1979 
repayment contract--present value estimated at $4.2 million. Within 180 
days of the date of enactment, the BOR will transfer the title of the 
irrigation works to district at no additional cost to the district. The 
BOR will continue to provide power and energy for water pumping for the 
project for a period of 50 years--starting October 1990--as provided 
for in the irrigation discount provision in the Northwest Power Act. At 
the end of that 50 year period, the irrigation district will have to 
purchase its power at nonirrigation discount rates.
  Mr. President, this legislation will resolve a long standing dispute 
between the irrigation district and the Bureau of Reclamation that will 
save the taxpayers the expense of financing a long, drawn out court 
fight. I will work with my colleagues on the Energy and Natural 
Resources Committee to see that this legislation is enacted this year.
                                 ______