[Congressional Record Volume 149, Number 28 (Friday, February 14, 2003)]
[Senate]
[Pages S2545-S2547]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE:
  S. 426. 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 Stat 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, today I am introducing the Blunt 
Reservoir and Pierre Canal Land Conveyance Act of 2003. This proposal 
is the culmination of more than 4 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.
  The bill I'm introducing today is the result of consultations with 
the Energy and Natural Resources Committee when it considered the bill 
last July. The committee incorporated changes to the legislation that 
will ensure a smooth transition of land from federal to private 
ownership, increase county tax revenues, as well as provide the tools 
and future funding necessary to help the state of South Dakota improve 
wildlife habitat and public hunting opportunities. The Senate 
unanimously approved this legislation late last fall, but it was not 
considered by the House of Representatives before Congress adjourned 
for the year. I hope that my colleagues will once again support this 
effort, and that we can see this bill signed into law.
  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 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 immigration 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. 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 Pierre, SD.
  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 usually 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 1B. 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 Presidents 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 fiscal year 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 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 preferential 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, 
cause 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. Meriwether 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,

[[Page S2546]]

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 former Blunt Reservoir and Pierre Canal 
landowners to repurchase their former lands, on which they currently 
hold preferential leases, from the Bureau of Reclamation, BOR. The bill 
also will transfer non-preferentially-leased lands and unleased lands 
to the South Dakota Department of Game, Fish, and Parks, GFP, as part 
of its broader plan to restore wildlife habitat that was lost due to 
the construction of the Missouri River dams. Under the provisions 
agreed to by the Senate Energy and Natural Resources Committee last 
summer, the South Dakota Commission of School and Public Lands would be 
responsible for working out the terms for selling the preferentially-
leased lands to the former landowners.
  The bill will not only rightfully return property to South Dakotans, 
but also ensure the viability of the local land and tax bases. The 
legislation authorizes the creation of a trust fund that would be used 
to create a trust fund to pay the local taxes on those lands 
transferred to State. The trust fund would be through future 
appropriations by Congress.
  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.
  Again, 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 legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 426

       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 2003''.

     SEC. 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

[[Page S2547]]

     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.

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