[Congressional Record (Bound Edition), Volume 146 (2000), Part 16]
[House]
[Pages 23958-23959]
[From the U.S. Government Publishing Office, www.gpo.gov]



                      PALMETTO BEND CONVEYANCE ACT

  Mr. HANSEN. Mr. Speaker, I move to suspend the rules and pass the 
Senate bill (S. 1474) providing for conveyance of the Palmetto Bend 
project to the State of Texas.
  The Clerk read 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

[[Page 23959]]

     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.).

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Utah (Mr. Hansen) and the gentlewoman from the Virgin Islands (Mrs. 
Christensen) each will control 20 minutes.
  The Chair recognizes the gentleman from Utah (Mr. Hansen).
  Mr. HANSEN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, for the last 6 years, the Subcommittee on Water and 
Power has pursued legislation to shrink the size and scope of the 
Federal Government through the defederalization of Bureau of 
Reclamation assets.
  S. 1474 continues the defederalization process by directing the 
Secretary of Interior to convey as soon as practicable after the date 
of enactment to the State of Texas, acting through the Texas Water 
Development Board of the Lavaca-Navidad River, the Palmetto Bend 
Reclamation Project.
  Mr. Speaker, I urge my colleagues to vote aye on this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. CHRISTENSEN. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, the purpose of this bill is to provide for the 
conveyance of the Palmetto Bend Project to the State of Texas. This 
legislation includes a list of six specific management measures the 
State of Texas must undertake as a condition of the conveyance. 
Specific conditions relating to fish, wildlife, and recreation 
management and existing obligations are detailed in the bill. These 
provisions in S. 1474 provide an important statutory foundation to 
assure protection of the public aspects of this project.
  We have no objections to the enactment of S. 1474.
  Mr. PAUL. Mr. Speaker, Lake Texana (The Palmetto Bend Project), is 
located in my congressional district near Edna in the Texas Gulf Coast 
area about midway between Corpus Christi and Houston. Lake Texana 
supplies roughly 75,000 acre/feet per year of municipal and industrial 
water to a large multicounty area of Texas. The Lake Texana water is 
directly responsible for creating over 3,000 jobs in the cities of Edna 
and Victoria, Texas and water sales from the project make it 
financially self-sufficient.
  S. 1474 merely facilitates the early payment of the project's 
construction costs (discounted, of course, by the amount of interest no 
longer due as a consequence of early payment) and transfers title of 
the Palmetto Bend Project to the Texas state authorities. Both the 
Lavaca Navidad River Authority and Texas Water Development Board concur 
that an early buy-out and title transfer is extremely beneficial to the 
economic and operational well-being of the project as well as the Lake 
Texana water users. The Texas Legislature and Governor George W. Bush 
have both formally supported the early payment and title transfer.
  This bill will save Lake Texana water users as much as $1 million per 
year as well as provide an immediate infusion of millions of dollars to 
the national treasury. Additionally, all liability associated with this 
water project are, under my legislation, assumed by the state of Texas 
thus further relieving the financial burden of the federal government.
  Texas has already demonstrated sound management of this resource. 
Recreational use of the lake has been well-provided under Texas state 
management to include provision of a marina, pavilion, playground, and 
boating docks, all funded without federal money. A woodland bird 
sanctuary and wildlife viewing area will also be established upon 
transfer with the assistance of the Texas Parks and Wildlife Department 
and several environmental organizations.
  My thanks go to members and staff of both the Resources committee and 
the subcommittee on Energy and Water for their continued assistance 
with this bill as well as Senator Hutchison and her staff for working 
with me to move our bill in the Senate.
  Mr. Speaker, I respectfully request my colleague's support for S. 
1474 as passed by the Senate.
  Mrs. CHRISTENSEN. Mr. Speaker, I yield back the balance of my time.
  Mr. HANSEN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Utah (Mr. Hansen) that the House suspend the rules and 
pass the Senate bill, S. 1474.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mrs. CHRISTENSEN. Mr. Speaker, I object to the vote on the ground 
that a quorum is not present and make the point of order that a quorum 
is not present.
  The SPEAKER pro tempore. Pursuant to clause 8, rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

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