[Congressional Record Volume 144, Number 63 (Monday, May 18, 1998)]
[Senate]
[Pages S5019-S5021]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KYL (for himself and Mr. McCain):
  S. 2087. A bill to authorize the Secretary of the Interior to convey 
certain works, facilities, and titles of the Gila Project, and 
designated lands within or adjacent to the Gila Project, to the 
Wellton-Mohawk Irrigation and Drainage District, and for other 
purposes; to the Committee on Energy and Natural Resources.


               WELLTON-MOHAWK TITLE TRANSFER ACT OF 1998

 Mr. KYL. Mr. President, today I introduced a bill to transfer 
title to the Wellton-Mohawk Irrigation and Drainage District in Yuma, 
Arizona from the Federal Government to the project beneficiaries. The 
repayment obligation for construction costs was fully satisfied as of 
May 30, 1987. This bill is the product of intensive negotiations 
between the project beneficiaries and the Bureau of Reclamation and 
will be the subject of a hearing in the Water and Power Subcommittee on 
June 9. At

[[Page S5020]]

that time, I will hear from all interested parties about how to 
successfully complete this project transfer.
  As you may know, Mr. President, numerous project transfers have been 
proposed, both in this session of Congress and the 104th Session. Thus 
far, none have been completed. With this bill, we in Arizona hope to 
reverse that trend. In March of this year, I met with Patty Beneke, 
Assistant Secretary of the Interior for Water and Science, and Bob 
Johnson, Regional Director for the Bureau of Reclamation, and they 
assured me that the Wellton-Mohawk project was a perfect example of the 
kind of project that should transfer under the administration's 1995 
Framework for Transfer. I believe Bob Johnson referred to this project 
as ``low-hanging fruit.'' I assume by that, he meant that it could 
transfer quickly and easily. I hope this is the case.
  The Wellton-Mohawk project is located in Yuma County, Arizona and 
irrigates approximately 63,000 acres of prime agricultural lands. This 
irrigation district is a major contributor to the economy of Yuma 
County--the largest agriculturally developed county in Arizona--and 
posts approximately three-quarters of a billion dollars in annual 
agricultural sales. Transfer of title from the Federal Government will 
affect neither the productivity nor the efficiency of the irrigation 
district. I believe that transfer would only enhance the District's 
productivity.
  Both sides stand to benefit from this title transfer. The District 
looks forward to a reduction in Federal Government involvement; would 
benefit from better land-management opportunities; and would have the 
opportunity to assure increased protection of the environmental values 
of the Gila River riparian habitat. The Federal Government benefits, 
too. A successful title transfer would advance the administration's 
stated goal of reduction in government as well as eliminate the 
responsibility for managing the patchwork of lands that make up the 
District. The Bureau of Reclamation would be relieved of the 
administrative and financial burden of facilities oversight currently 
required due to Federal ownership.
  In negotiations, the Bureau of Reclamation has raised several issues 
that need to be addressed in order to effect a successful transfer. 
These issues include environmental mitigation, administrative costs, 
identification and valuation of lands, and agricultural return flows. 
One of the benefits of my legislation is that it provides a Memorandum 
of Agreement, to be negotiated between the Bureau and the District, 
that will address all of these concerns in an open and mutually 
beneficial process.
  I am pleased thus far by the cooperation of all stakeholders. I look 
forward to continuing the process at the Water and Power subcommittee 
hearing on June 9, 1998. I thank Senator McCain for his cosponsorship 
of this bill, and I look forward to his support, as well as that of the 
rest of my colleagues, on this measure.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2087

       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 ``Wellton-Mohawk Title 
     Transfer Act of 1998''.

     SEC. 2. CONVEYANCE OF TITLE TO WORKS, FACILITIES AND LANDS.

       (a) Definitions.--
       (1) Memorandum of agreement.--The term ``Memorandum of 
     Agreement'' means the agreement between the Secretary and 
     Wellton-Mohawk, relating to the transfer, dated on or before 
     July 1, 1998.
       (2) Reclamation.--The term ``Reclamation'' means the 
     Department of the Interior, Bureau of Reclamation.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (4) Wellton-Mohawk.--The term ``Wellton-Mohawk'' means the 
     Wellton-Mohawk Irrigation and Drainage District, an 
     irrigation and drainage district created, organized, and 
     existing under and by virtue of the Laws of the State of 
     Arizona.
       (5) Western.--The term ``Western'' means the Department of 
     Energy, Western Area Power Administration.
       (b) Implementation. The Secretary shall carry out the 
     provisions of the Memorandum of Agreement. If transfer has 
     not occurred by the date set forth in the Memorandum of 
     Agreement, but review under the National Environmental Policy 
     Act has been completed and fair market value has been 
     established, then upon tender of fair market value to the 
     Secretary by Wellton-Mohawk, all right, title, and interest 
     of the United States in and to the works, facilities, and 
     lands described in the Memorandum of Agreement shall transfer 
     to and vest in Wellton-Mohawk by operation of Law. The 
     Secretary shall provide such evidence of title as may be 
     requested by Wellton-Mohawk. In the event that no Memorandum 
     of Agreement is agreed to by July 1, 1998, this Act shall be 
     considered null and void.
       (c) Water and power delivery.--Notwithstanding the transfer 
     of title to works, facilities, and lands, the Secretary is 
     authorized and shall continue to deliver water to Wellton-
     Mohawk in accordance with the terms of the Amendatory and 
     Supplemental Consolidated Contract with Wellton-Mohawk 
     Irrigation and Drainage District for Delivery of Water, 
     Construction of Works, Repayment, and Project Power Supply 
     (Reclamation's Contract Number 1-07-30-W0021 Amendment No. 1) 
     including any renewals, amendments, supplements, or 
     extensions thereof. Notwithstanding the transfer of title to 
     works, facilities, and lands, the Secretary and Western are 
     authorized and shall continue to provide Wellton-Mohawk with 
     project reserved power from the Parker Reclamation Power 
     Plant and Davis Reclamation Power Plant, in accordance with 
     the terms of the Consolidated Contract and the Power 
     Management Agreement (Reclamation's and Western's contract 
     Numbers 6-CU-30-P1136, 6-CU-30-P1137 and 6-CU-30-P1138) 
     including any renewals, amendments, supplements, or 
     extensions thereof.
       (d) Liability.--Effective on the date of conveyance of the 
     project works, facilities and lands, 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 conveyed works, facilities, and lands, except for damages 
     caused by acts of negligence committed by the United States 
     or by its employees, agents, or contractors as provided in 
     the Federal Tort Claims Act (28 U.S.C. 2671 et seq.).
       (e) Agricultural Return Flows.--As a condition of transfer, 
     Wellton-Mohawk shall agree that: (1) the volume of 
     agricultural return flows from Wellton-Mohawk delivered to 
     Reclamation's Main Outlet Drain at Station 0+00 shall comply 
     with applicable law and contracts and shall not exceed 
     175,000 annual acre feet; and (2) Wellton-Mohawk and 
     Reclamation shall work cooperatively to attempt to limit 
     return flows to the design capacity of the Yuma 
     Desalinization Plant.
       (f) Report.--The Secretary shall provide a report to the 
     Committee on Resources of the United States House of 
     Representatives and to the Committee on Energy and Natural 
     Resources of the United States Senate within eighteen months 
     from the date of enactment of this Act on the status of the 
     transfer, any obstacles to completion of the transfer as 
     provided in this Act, and the anticipated date for such 
     transfer.
       (g) Authorization.--There are authorized to be appropriated 
     such sums as necessary for the purposes of this Act.

  Mr. McCAIN. Mr. President, I rise today in support of legislation to 
authorize the Secretary of the Interior to transfer certain works, 
facilities, and titles of the Gila Project, and designated lands to the 
Wellton-Mohawk Irrigation and Drainage District. This legislation will 
allow the Bureau of Reclamation to carry out a transfer under the terms 
and conditions of a cooperative agreement between the Bureau and the 
District.
  I am pleased that my colleague from Arizona, Senator Jon Kyl, has 
taken the lead in crafting this important proposal. It will enable the 
Bureau of Reclamation to divest its responsibility for the operation, 
maintenance, management, and regulation of Wellton-Mohawk. The Wellton-
Mohawk project includes 375 miles of irrigation/drainage canals and 
laterals, and three major pumping plants, all of which support 63,000 
acres of prime agricultural lands. This transfer will eliminate Federal 
government oversight of Wellton-Mohawk and will empower the District 
management to take over the title.
  Mr. President, the Wellton-Mohawk District is a major contributor to 
the economy of Yuma County, which is the most agriculturally developed 
county in Arizona. The farms in the region provide an estimated 
economic impact of three-quarters of a billion dollars every year. 
Conveyance of the project to the local management would help to sustain 
the economic viability of area agricultural interests.
  The cooperation by the administration and the district over the last 
few years, especially at the regional level, has spurred this 
privatization initiative. This legislation anticipates an aggressive 
time line for the Bureau of Reclamation and the District to lay out the 
terms and conditions of the conveyance under a Memorandum of

[[Page S5021]]

Agreement (MOA), During a hearing before the House Subcommittee on 
Water and Power Resources, the Commissioner of the Bureau of 
Reclamation called the Wellton-Mohawk project a ``good candidate for 
transfer'' and furthermore stated that the administration would endorse 
legislation that allows the District and the Secretary to negotiate the 
terms of a transfer pursuant to a Memorandum of Agreement.
  Under the terms of the legislation, the parties will establish a 
process by which the fair market value of the transfer will be 
assessed. The Memorandum will also lay out a plan for an environmental 
impact analysis in compliance with the National Environmental Policy 
Act (NEPA). The Secretary of the Inferior is expected to carry out the 
transfer if the terms are decided upon in the Memorandum of Agreement 
by a set date, However, the conveyance may not go forward if the 
appraisal or the NEPA process have not been completed.
  I want to make clear that this legislation is not a directed 
transfer, but simply implements the MOA as decided upon between the 
Administration and the District. If consensus cannot be reached in the 
form of an MOA, this legislation to privatize Wellton-Mohawk will have 
no effect and will not require the government to transfer total or 
otherwise divest itself of any assets.
  Mr. President, I laud the considerable efforts of the Wellton Mohawk 
District in forgoing this agreement. I look forward to working with 
Senator Kyl to see this initiative through to smooth and expedient 
completion.
                                 ______