[Congressional Record Volume 145, Number 78 (Thursday, May 27, 1999)]
[Senate]
[Pages S6325-S6328]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE:
  S. 1178. 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 Oahe Irrigation Project, South Dakota, to the 
Commission of Schools and Public Lands 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; to the 
Committee on Energy and Natural Resources.


    THE BLUNT RESERVOIR AND PIERRE CANAL LAND CONVEYANCE ACT OF 1999

  Mr. DASCHLE. Mr. President, I am today introducing the Blunt 
Reservoir and Pierre Canal Land Conveyance Act

[[Page S6326]]

of 1999. This proposal is the culmination of more than 2 years of 
discussion with local landowners, the South Dakota Water Congress, the 
U.S. Bureau of Reclamation, local legislators, representatives of South 
Dakota sportsmen groups and affected citizens. It lays out a plan to 
convey certain parcels of land acquired for the Blunt Reservoir and 
Pierre Canal features of the Oahe Irrigation Project in South Dakota to 
the Commission of School and Public Lands of the State of South Dakota 
for the purpose of mitigating lost wildlife habitat, and provides the 
option to preferential leaseholders to purchase their original parcels 
from the Commission.
  In order to more fully understand the issues addressed by the 
legislation, it is necessary to review some of the history related to 
the Oahe Unit of the Missouri River Basin project in South Dakota.
  The Oahe Unit was originally approved as part of the overall plan for 
water development in the Missouri River Basin that was incorporated in 
the Flood Control Act of 1944. Subsequently, Public Law 90-453 
authorized construction and operation of the initial stage. The 
purposes of the Oahe Unit as authorized were to provide for the 
irrigation of 190,000 acres of farmland, conserve and enhance fish and 
wildlife habitat, promote recreation and meet other important goals.
  The project came to be known as the Oahe Irrigation Project, and the 
principal features of the initial stage of the project contained the 
Oahe pumping plant located near Oahe Dam to pump water from the Oahe 
Reservoir, a system of main canals, including the Pierre Canal, running 
east from the Oahe Reservoir, and the establishment of regulating 
reservoirs, including the Blunt Dam and Reservoir located approximately 
35 miles east of Pierre, South Dakota.
  Under the authorizing legislation, 42,155 acres were to be acquired 
by the Federal government in order to construct and operate the Blunt 
Reservoir feature of the Oahe Irrigation Project. Land acquisition for 
the proposed Blunt Reservoir feature began in 1972 and continued 
through 1977. A total of 17,878 acres actually were acquired from 
willing sellers.
  The first land for the Pierre Canal feature was purchased in July 
1975 and included the 1.3 miles of Reach lB. An additional 21-mile 
reach was acquired from 1976 through 1977, also from willing sellers.
  Organized opposition to the Oahe Irrigation Project surfaced in 1973 
and continued to build until a series of public meetings were held in 
1977 to determine if the project should continue. In late 1977, the 
Oahe project was made a part of President Carter's Federal Water 
Project review process.
  The Oahe project construction was then halted on September 30, 1977, 
when Congress did not include funding in the FY1978 appropriations.
  Thus, all major construction contract activities ceased and land 
acquisition was halted. The Oahe Project remained an authorized water 
project with a bleak future and minimal chances of being completed as 
authorized. Consequently, the Department of Interior, through the 
Bureau of Reclamation, gave to those persons who willingly had sold 
their lands to the project the right for them and their descendants to 
lease those lands and use them as they had in the past until needed by 
the Federal government for project purposes.
  During the period from 1978 until the present, the Bureau of 
Reclamation has administered these lands on a preference lease basis 
for those original landowners or their descendants and on a non-
preferential basis for lands under lease to persons who were not 
preferential leaseholders. Currently, the Bureau of Reclamation 
administers 12,978 acres as preferential leases and 4,304 acres as non-
preferential leases in the Blunt Reservoir.
  As I noted previously, the Oahe Irrigation Project is related 
directly to the overall project purposes of the Pick-Sloan Missouri 
Basin program authorized under the Flood Control Act of 1944. Under 
this program, the U.S. Army Corps of Engineers constructed four major 
dams across the Missouri River in South Dakota. The two largest 
reservoirs formed by these dams, Oahe Reservoir and Sharpe Reservoir, 
caused the loss of approximately 221,000 acres of fertile, wooded 
bottomland which constituted some of the most productive, unique and 
irreplaceable wildlife habitat in the State of South Dakota. This 
included habitat for both game and non-game species, including several 
species which are now listed as threatened or endangered. Merriweather 
Lewis, while traveling up the Missouri River in 1804 on his famous 
expedition, wrote in his diary, ``Song birds, game species and 
furbearing animals abound here in numbers like none of the party has 
ever seen. The bottomlands and cottonwood trees provide a shelter and 
food for a great variety of species, all laying their claim to the 
river bottom.''
  Under the provisions of the Wildlife Coordination Act of 1958, the 
State of South Dakota has developed a plan to mitigate a part of this 
lost wildlife habitat as authorized by Section 602 of Title VI of 
Public Law 105-277, October 21, 1998, known as the Cheyenne River Sioux 
Tribe, Lower Brule Sioux Tribe, and State of South Dakota Terrestrial 
Wildlife Habitat Restoration Act.
  The State's habitat mitigation plan has received the necessary 
approval and interim funding authorizations under Sections 602 and 609 
of Title VI.
  The State's habitat mitigation plan requires the development of 
approximately 27,000 acres of wildlife habitat in South Dakota. 
Transferring the 4,304 acres of non-preferential lease lands in the 
Blunt Reservoir feature to the South Dakota Department of Game, Fish 
and Parks would constitute a significant step toward satisfying the 
habitat mitigation obligation owed to the state by the Federal 
government and as agreed upon by the U.S. Army Corps of Engineers, the 
U.S. Fish and Wildlife Service, and the South Dakota Department of 
Game, Fish and Parks.
  As we developed this legislation, many meetings occurred among the 
local landowners, South Dakota Department of Game, Fish and Parks, 
business owners, local legislators, the Bureau of Reclamation, as well 
as representatives of sportsmen groups. It became apparent that the 
best solution for the local economy, tax base and wildlife mitigation 
issues would be to allow the preferential leaseholders (original 
landowner or descendant or operator of the land at the time of 
purchase) to have an option to purchase the land from the Commission of 
School and Public Lands after the preferential lease parcels are 
conveyed to the Commission. This option will be available for a period 
of 10 years after the date of conveyance to the Commission. During the 
interim period, the preferential leaseholders shall be entitled to 
continue to lease from the Commissioner under the same terms and 
conditions they have enjoyed with the Bureau of Reclamation. If the 
preferential leaseholder fails to purchase a parcel within the 10-year 
period, that parcel will be conveyed to the South Dakota Department of 
Game, Fish and Parks to be used to implement the 27,000-acre habitat 
mitigation plan.
  The proceeds from these sales will be used to finance the 
administration of this bill, support public education in the state of 
South Dakota, and will be added to the South Dakota Wildlife Habitat 
Mitigation Trust Fund to assist in the payment of local property taxes 
on lands transferred from the Federal government to the state of South 
Dakota.
  In summary, Mr. President, the State of South Dakota, the Federal 
government, the original landowners, the sportsmen and wildlife will 
benefit from this bill. It provides for a fair and just resolution to 
the private property and environmental problems caused by the Oahe 
Irrigation Project some 25 years ago. We have waited long enough to 
right some of the wrongs suffered by our landowners and South Dakota's 
wildlife resources.
  I am hopeful that the Senate will act quickly on this legislation. 
Our goal is to enact a bill that will allow meaningful wildlife habitat 
mitigation to begin, give certainty to local landowners who sacrificed 
their lands for a defunct federal project they once supported, ensure 
the viability of the local land base and tax base, and provide well 
maintained and managed recreation areas for sportsmen. I ask unanimous 
consent that the bill appear in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

[[Page S6327]]

       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 1999''.

     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 protect urban and rural areas from devastating 
     floods of the Missouri River; and
       (D) for other purposes;
       (2) the purpose of the Oahe Irrigation Project was to meet 
     the requirements of that Act by providing irrigation above 
     Sioux City, Iowa;
       (3) the principle features 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 from willing sellers between 1972 and 1977, 
     when construction on the Oahe Irrigation Project 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 of South Dakota 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 of South Dakota 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 of South 
     Dakota 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 
     Irrigation Project authorized by section 9 of the Act of 
     December 22, 1944 (58 Stat. 891, chapter 665), 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 of South 
     Dakota.
       (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) is under lease to a person other than a preferential 
     leaseholder as of the date of enactment of this Act.
       (4) Pierre canal feature.--The term ``Pierre Canal 
     feature'' means the Pierre Canal feature of the Oahe 
     Irrigation Project authorized by section 9 of the Act of 
     December 22, 1944 (58 Stat. 891, chapter 665), as part of the 
     Pick-Sloan Missouri River Basin Program.
       (5) Preferential leaseholder.--The term ``preferential 
     leaseholder'' means a leaseholder of a parcel of land who 
     is--
       (A) the person from whom the Secretary purchased the parcel 
     for use in connection with the Blunt Reservoir feature or the 
     Pierre Canal feature;
       (B) the original operator of the parcel at the time of 
     acquisition; or
       (C) a descendant of a person described in subparagraph (A) 
     or (B).
       (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) is under lease to a preferential leaseholder as of the 
     date of enactment of this Act.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Commissioner of 
     Reclamation.
       (8) 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.--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 (d).
       (d) 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 20 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 10 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 of south dakota.--
       (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 $500,000 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 division C of Public Law 105-277 (112 Stat. 2681-663) 
     for the purpose of paying property taxes on land transferred 
     to the State of South Dakota;
       (D) $100,000 shall be provided to Hughes County, South 
     Dakota, for the purpose of supporting public education;
       (E) $100,000 shall be provided to Sully County, South 
     Dakota, for the purpose of supporting public education; and
       (F) the remainder shall be used by the Commission to 
     support public schools in the State of South Dakota.
       (e) Conveyance of Nonpreferential Lease Parcels and 
     Unleased Parcels.--
       (1) In general.--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.
       (2) Wildlife habitat mitigation.--Land conveyed under 
     paragraph (1) 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.
       (f) Land Exchanges for Nonpreferential Lease Parcels and 
     Unleased Parcels.--
       (1) 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 of 
     South Dakota for a nonpreferential lease parcel or unleased 
     parcel at Blunt Reservoir or Pierre Canal, as the case may 
     be.
       (2) Priority.--The right to exchange nonpreferential lease 
     parcels or unleased parcels

[[Page S6328]]

     shall be granted in the following order of priority:
       (A) Exchanges with current lessees for nonpreferential 
     lease parcels.
       (B) Exchanges with adjoining and adjacent landowners for 
     unleased parcels and nonpreferential lease parcels not 
     exchanged by current lessees.
       (g) Easement for Irrigation Pipe.--A preferential 
     leaseholder that purchases land at Pierre Canal or exchanges 
     land for land at Pierre Canal shall to allow the State of 
     South Dakota to retain an easement on the land for an 
     irrigation pipe.
       (h) Funding of the South Dakota Terrestrial Wildlife 
     Habitat Restoration Trust Fund.--Section 603(b) of title VI 
     of Public Law 105-277 (112 Stat. 2681-663) is amended by 
     striking ``$108,000,000'' and inserting ``$111,095,000''.
                                 ______