[Congressional Record Volume 149, Number 153 (Tuesday, October 28, 2003)]
[Senate]
[Page S13381]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DOMENICI (for himself and Mr. Bingaman):
  S. 1791. A bill to amend the Lease Lot Conveyance Act of 2002 to 
provide that the amounts received by the United States under that Act 
shall be deposited in the reclamation fund, and for other purposes; to 
the Committee on Energy and Natural Resources.
  Mr. DOMENICI. Mr. President, I rise today to introduce a bill that 
would greatly benefit one of the largest irrigation districts in 
Southern New Mexico. Last Congress, H.R. 706, the Elephant Butte Lease 
Lott Conveyance Act, passed the House and Senate unanimously. The 
purpose of the original bill was to provide security to 403 lease lot 
holders who were interested in purchasing property currently being 
leased to them by the Bureau of Reclamation. Many of the lease holders 
had, at the urging of the Federal Government, invested time and money 
into improving these lots, including the addition in many cases of 
permanent fixtures. The bill I bring today would amend that Act by 
clarifying where the proceeds from the sale of these lands would be 
deposited.
  With regard to proceeds, the late Honorable Howard Bratton, a former 
Federal District Court judge for the District of New Mexico, ruled in 
1992 and in 1997 that the Elephant Butte Irrigation District was 
entitled to net profits generated from the leasing of grazing and farm 
lands of the Rio Grande Project. I would just mention that while the 
latest in these rulings was handed down almost 6 years ago, the 
District has yet to receive these profits. I understand the Bureau of 
Reclamation, at the urging of the Federal District Court, has told the 
Elephant Butte Irrigations District that it will rectify this situation 
in fiscal year 2004. I intend to closely monitor that situation.
  The Lease Lot Conveyance Act of 2002 is silent with regard to any 
crediting of the proceeds from the sale of the 403 lease lots. 
Reclamation has taken the position that the proceeds should be credited 
to the Reclamation Fund. I would just like to note that the repayment 
obligations of the District were met and title was transferred to the 
District in the early nineties. The District, therefore, believes that 
under current law and the opinions of the Federal District Court in New 
Mexico, they would be entitled to these funds.
  The bill I am introducing today makes it clear that the proceeds of 
the sale should go to the irrigation district instead of to the 
Reclamation fund. With Reclamation expenses continually escalating, I 
have been told by the District that they would utilize these proceeds 
to offset on-going operation and maintenance costs.
  While the appraisal of these lands is still pending I do want to be 
clear that we are only talking about roughly 250 acres out of the total 
78,000 acres compromising the Elephant Butte and Caballo Reservoir 
boundaries. I believe it is reasonable to allow these funds to go to 
the District. I hope the Senate will act expeditiously on this matter, 
so that the process can continue to move forward as we intended it to.
  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:
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. LEASE LOT CONVEYANCE.

       Section 4(b) of the Lease Lot Conveyance Act of 2002 (116 
     Stat. 2879) is amended--
       (1) by striking ``As consideration'' and inserting the 
     following:
       ``(1) In general.--As consideration''; and
       (2) by adding at the end the following:
       ``(2) Use.--Amounts received under paragraph (1) shall be--
       ``(A) deposited by the Secretary, on behalf of the Rio 
     Grande Project, in the reclamation fund established under the 
     first section of the Act of June 17, 1902 (43 U.S.C. 391); 
     and
       ``(B) made immediately available to the Irrigation 
     Districts, to be credited in accordance with section 4(I) of 
     the Act of December 5, 1924 (43 U.S.C. 501).''.
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