[Congressional Record (Bound Edition), Volume 146 (2000), Part 16]
[Senate]
[Pages 22733-22734]
[From the U.S. Government Publishing Office, www.gpo.gov]



                      PALMETTO BEND CONVEYANCE ACT

  The Senate proceeded to consider the bill (S. 1474) providing for 
conveyance of the Palmetto Bend project to the State of Texas, which 
had been reported from the Committee on Energy and Natural Resources, 
with an amendment, as follows:
  (Strike out all after the enacting clause and insert the part printed 
in italic.)

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Palmetto Bend Conveyance 
     Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Project.--the term ``Project'' means the Palmetto Bend 
     Reclamation Project in the State of Texas authorized under 
     Public Law 90-562 (82 Stat. 999).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (3) State.--The term ``State'' means the State of Texas, 
     acting through the Texas Water Development Board or the 
     Lavaca-Navidad River Authority or both.

     SEC. 3. CONVEYANCE.

       (a) In General.--The Secretary shall, as soon as 
     practicable after the date of enactment of this Act and in 
     accordance with all applicable law, and subject to the 
     conditions set forth in sections 4 and 5, convey to the State 
     all right, title and interest (excluding the mineral estate) 
     in and to the Project held by the United States.
       (b) Report.--If the conveyance under Section 3 has not been 
     completed within 1 year and 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Resources of the House of Representatives and 
     the Committee on Energy and Natural Resources of the Senate a 
     report that describes--
       (1) the status of the conveyance;
       (2) any obstacles to completion of the conveyance; and
       (3) the anticipated date for completion of the conveyance.

     SEC. 4. PAYMENT.

       (a) In General.--As a condition of the conveyance, the 
     State shall pay the Secretary the adjusted net present value 
     of current repayment obligations on the Project, calculated 
     30 days prior to closing using a discount rate equal to the 
     average interest rate on 30-year U.S. Treasury notes during 
     the proceeding calendar month, which following application of 
     the State's August 1, 1999 payment, is currently calculated 
     to be $45,082,675 using a discount rate of 6.070%. The State 
     shall also pay interest on the adjusted net present value of 
     current repayment obligations from the date of State's most 
     recent annual payment until closing at the interest rate for 
     constant maturity U.S. Treasury notes of an equivalent term.
       (b) Obligation Extinguished.--Upon payment by the State 
     under subsection (a), the obligation of the State and the 
     Bureau of Reclamation under the Bureau of Reclamation 
     Contract No. 14-06-500-1880, as amended shall be 
     extinguished. After completion of conveyance provided for in 
     Section 3, the State shall assume full responsibility for all 
     aspects of operation, maintenance and replacement of the 
     Project.
       (c) Additional Costs.--The State shall bear the cost of all 
     boundary surveys, title searches, appraisals, and other 
     transaction costs for the conveyance.
       (d) Reclamation Fund.--All funds paid by the State to the 
     Secretary under this section shall be credited to the 
     Reclamation Fund in the Treasury of the United States.

     SEC. 5. FUTURE MANAGEMENT.

       (a) In General.--As a condition of the conveyance under 
     section 3, the State shall agree that the lands, water, and 
     facilities of the Project shall continue to be managed and 
     operated for the purposes for which the Project was 
     originally authorized; that is, to provide a dependable 
     municipal and industrial water supply, to conserve and 
     develop fish and wildlife resources, and to enhance 
     recreational opportunities. In future management of the 
     Project, the State shall, consistent with other project 
     purposes and the provision of dependable municipal and 
     industrial water supply:
       (1) provide full public access to the Project's lands, 
     subject to reasonable restrictions for purposes of Project 
     security, public safety, and natural resource protection;
       (2) not sell or otherwise dispose of the lands conveyed 
     under Section 3;
       (3) prohibit private or exclusive uses of lands conveyed 
     under Section 3;
       (4) maintain and manage the Project's fish and wildlife 
     resource and habitat for the benefit and enhancement of those 
     resources;
       (5) maintain and manage the Project's existing recreational 
     facilities and assets, including open space, for the benefit 
     of the general public;
       (6) not charge the public recreational use fees that are 
     more than is customary and reasonable.
       (b) Fish, Wildlife, and Recreation Management.--As a 
     condition of conveyance under Section 3, management decisions 
     and actions affecting the public aspects of the Project 
     (namely, fish, wildlife, and recreation resources) shall be 
     conducted according to a management agreement between all 
     recipients of title to the Project and the Texas Parks and 
     Wildlife Department and shall extend for the useful life of 
     the Project that has been approved by the Secretary.
       (c) Existing Obligations.--The United States shall assign 
     to the State and the State shall accept all surface use 
     obligations of the United States associated with the Project 
     existing on the date of the conveyance including contracts, 
     easements, and any permits or license agreements.

     SEC. 6. MANAGEMENT OF MINERAL ESTATE.

       All mineral interests in the Project retained by the United 
     States shall be managed consistent with Federal Law and in a 
     manner that will not interfere with the purposes for which 
     the Project was authorized.

     SEC. 7. LIABILITY.

       (a) In General.--Effective on the date of conveyance of the 
     Project, the United States shall be liable for damages of any 
     kind arising out of any act, omission, or occurrence relating 
     to the Project, except for damages caused by acts of 
     negligence committed prior to the date of conveyance by--
       (1) the United States; or
       (2) an employee, agent, or contractor of the United States.
       (b) No Increase in Liability.--Nothing in this Act 
     increases the liability of the United States beyond that 
     provided for in the Federal Tort Claims Act, (28 U.S.C. 2671 
     et seq.).

     SEC. 8. FUTURE BENEFITS.

       (a) Deauthorization.--Effective on the date of conveyance 
     of the Project, the Project conveyed under this Act shall be 
     deauthorized.
       (b) No Reclamation Benefits.--After deauthorization of the 
     Project under subsection (a), the State shall not be entitled 
     to receive any benefits for the Project under Federal 
     reclamation law (the Act of June 17, 1902 (32 Stat. 388, 
     chapter 1093), and Acts supplemental to and amendatory of 
     that Act (43 U.S.C. 371 et seq.).

  The amendment (No. 4318) was agreed to, as follows:

       In the Committee amendment:
       In section 4(a), after ``August 1, 1999 payment,'' strike 
     ``is currently'' and insert ``was, as of October, 1999,''.
       In section 5(b), strike ``and shall extend for the useful 
     life of the Project that has been approved by the 
     Secretary.'' and insert ``that has been approved by the 
     Secretary and shall extend for the useful life of the 
     Project.''.


[[Page 22734]]


  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The bill (S. 1474), as amended, was read the third time, and passed, 
as follows:

                                S. 1474

       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 ``Palmetto Bend Conveyance 
     Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Project.--the term ``Project'' means the Palmetto Bend 
     Reclamation Project in the State of Texas authorized under 
     Public Law 90-562 (82 Stat. 999).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (3) State.--The term ``State'' means the State of Texas, 
     acting through the Texas Water Development Board or the 
     Lavaca-Navidad River Authority or both.

     SEC. 3. CONVEYANCE.

       (a) In General.--The Secretary shall, as soon as 
     practicable after the date of enactment of this Act and in 
     accordance with all applicable law, and subject to the 
     conditions set forth in sections 4 and 5, convey to the State 
     all right, title and interest (excluding the mineral estate) 
     in and to the Project held by the United States.
       (b) Report.--If the conveyance under Section 3 has not been 
     completed within 1 year and 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Resources of the House of Representatives and 
     the Committee on Energy and Natural Resources of the Senate a 
     report that describes--
       (1) the status of the conveyance;
       (2) any obstacles to completion of the conveyance; and
       (3) the anticipated date for completion of the conveyance.

     SEC. 4. PAYMENT.

       (a) In General.--As a condition of the conveyance, the 
     State shall pay the Secretary the adjusted net present value 
     of current repayment obligations on the Project, calculated 
     30 days prior to closing using a discount rate equal to the 
     average interest rate on 30-year United States Treasury notes 
     during the proceeding calendar month, which following 
     application of the State's August 1, 1999 payment, was, as of 
     October 1999, calculated to be $45,082,675 using a discount 
     rate of 6.070 percent. The State shall also pay interest on 
     the adjusted net present value of current repayment 
     obligations from the date of the State's most recent annual 
     payment until closing at the interest rate for constant 
     maturity United States Treasury notes of an equivalent term.
       (b) Obligation Extinguished.--Upon payment by the State 
     under subsection (a), the obligation of the State and the 
     Bureau of Reclamation under the Bureau of Reclamation 
     Contract No. 14-06-500-1880, as amended shall be 
     extinguished. After completion of conveyance provided for in 
     Section 3, the State shall assume full responsibility for all 
     aspects of operation, maintenance and replacement of the 
     Project.
       (c) Additional Costs.--The State shall bear the cost of all 
     boundary surveys, title searches, appraisals, and other 
     transaction costs for the conveyance.
       (d) Reclamation Fund.--All funds paid by the State to the 
     Secretary under this section shall be credited to the 
     Reclamation Fund in the Treasury of the United States.

     SEC. 5. FUTURE MANAGEMENT.

       (a) In General.--As a condition of the conveyance under 
     section 3, the State shall agree that the lands, water, and 
     facilities of the Project shall continue to be managed and 
     operated for the purposes for which the Project was 
     originally authorized; that is, to provide a dependable 
     municipal and industrial water supply, to conserve and 
     develop fish and wildlife resources, and to enhance 
     recreational opportunities. In future management of the 
     Project, the State shall, consistent with other project 
     purposes and the provision of dependable municipal and 
     industrial water supply:
       (1) provide full public access to the Project's lands, 
     subject to reasonable restrictions for purposes of Project 
     security, public safety, and natural resource protection;
       (2) not sell or otherwise dispose of the lands conveyed 
     under Section 3;
       (3) prohibit private or exclusive uses of lands conveyed 
     under Section 3;
       (4) maintain and manage the Project's fish and wildlife 
     resource and habitat for the benefit and enhancement of those 
     resources;
       (5) maintain and manage the Project's existing recreational 
     facilities and assets, including open space, for the benefit 
     of the general public;
       (6) not charge the public recreational use fees that are 
     more than is customary and reasonable.
       (b) Fish, Wildlife, and Recreation Management.--As a 
     condition of conveyance under Section 3, management decisions 
     and actions affecting the public aspects of the Project 
     (namely, fish, wildlife, and recreation resources) shall be 
     conducted according to a management agreement between all 
     recipients of title to the Project and the Texas Parks and 
     Wildlife Department that has been approved by the Secretary 
     and shall extend for the useful life of the Project.
       (c) Existing Obligations.--The United States shall assign 
     to the State and the State shall accept all surface use 
     obligations of the United States associated with the Project 
     existing on the date of the conveyance including contracts, 
     easements, and any permits or license agreements.

     SEC. 6. MANAGEMENT OF MINERAL ESTATE.

       All mineral interests in the Project retained by the United 
     States shall be managed consistent with Federal Law and in a 
     manner that will not interfere with the purposes for which 
     the Project was authorized.

     SEC. 7. LIABILITY.

       (a) In General.--Effective on the date of conveyance of the 
     Project, the United States shall be liable for damages of any 
     kind arising out of any act, omission, or occurrence relating 
     to the Project, except for damages caused by acts of 
     negligence committed prior to the date of conveyance by--
       (1) the United States; or
       (2) an employee, agent, or contractor of the United States.
       (b) No Increase in Liability.--Nothing in this Act 
     increases the liability of the United States beyond that 
     provided for in the Federal Tort Claims Act, (28 U.S.C. 2671 
     et seq.).

     SEC. 8. FUTURE BENEFITS.

       (a) Deauthorization.--Effective on the date of conveyance 
     of the Project, the Project conveyed under this Act shall be 
     deauthorized.
       (b) No Reclamation Benefits.--After deauthorization of the 
     Project under subsection (a), the State shall not be entitled 
     to receive any benefits for the Project under Federal 
     reclamation law (the Act of June 17, 1902 (32 Stat. 388, 
     chapter 1093), and Acts supplemental to and amendatory of 
     that Act (43 U.S.C. 371 et seq.).

                          ____________________