[Congressional Record Volume 147, Number 82 (Wednesday, June 13, 2001)]
[Senate]
[Pages S6219-S6221]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for himself and Mr. Johnson):
  S. 1028. 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 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; to the Committee 
on Energy and Natural Resources.
  Mr. DASCHLE. Mr. President, I am today introducing the Blunt 
Reservoir and Pierre Canal Land Conveyance Act of 2001. This proposal 
is the culmination of more than 3 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.
  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 of this 
unit. 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 included 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 FY 1978 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, and their descendants, the right to lease those lands 
and use them as they had in the past until they were 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

[[Page S6220]]

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 that 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 now listed as threatened or 
endangered. Meriwhether 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 5 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 5-year 
period, that parcel will be conveyed to the South Dakota Department of 
Game, Fish and Parks to be use 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, 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 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 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. 1028

       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.

[[Page S6221]]

       (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.
                                 ______