[Congressional Record (Bound Edition), Volume 148 (2002), Part 3]
[House]
[Pages 3480-3481]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    LEASE LOT CONVEYANCE ACT OF 2002

  Mr. HAYWORTH. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 706) to direct the Secretary of the Interior to convey 
certain properties in the vicinity of the Elephant Butte Reservoir and 
the Caballo Reservoir, New Mexico, as amended.
  The Clerk read as follows:

                                H.R. 706

       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 ``Lease Lot Conveyance Act of 
     2002''.

     SEC. 2. FINDINGS.

       The Congress finds that the conveyance of the Properties to 
     the Lessees for fair market value would have the beneficial 
     results of--
       (1) eliminating Federal payments in lieu of taxes and 
     associated management expenditures in connection with the 
     Government's ownership of the Properties, while increasing 
     local tax revenues from the new owners;
       (2) sustaining existing economic conditions in the vicinity 
     of the Properties, while providing the new owners of the 
     Properties the security to invest in permanent structures and 
     improvements; and
       (3) adding needed jobs to the county in which the 
     Properties are located and increasing revenue to the county 
     and surrounding communities through property and gross 
     receipt taxes, thereby increasing economic stability and a 
     sustainable economy in one of the poorest counties in New 
     Mexico.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Fair market value.--The term ``fair market value'' 
     means, with respect to a parcel of property, the value of the 
     property determined--
       (A) without regard to improvements constructed by the 
     Lessee of the property;
       (B) by an appraisal in accordance with the Uniform 
     Standards for Federal Land Acquisitions; and
       (C) by an appraiser approved by the Secretary and the 
     purchaser.
       (2) Irrigation districts.--The term ``Irrigation 
     Districts'' means the Elephant Butte Irrigation District and 
     the El Paso County Water Improvement District No. 1.
       (3) Lessee.--The term ``Lessee'' means the leaseholder of a 
     Property on the date of enactment of this Act, and any heir, 
     executor, or assign of the leaseholder with respect to that 
     leasehold interest.
       (4) Property.--The term ``Property'' means any of the cabin 
     sites comprising the Properties.
       (5) Properties.--The term ``Properties'' means all the real 
     property comprising 403 cabin sites under the administrative 
     jurisdiction of the Bureau of Reclamation that are located 
     along the western portion of the reservoirs in Elephant Butte 
     State Park and Caballo State Park, New Mexico, including 
     easements, roads, and other appurtenances. The exact acreage 
     and legal description of such real property shall be 
     determined by the Secretary after consulting with the 
     Purchaser.
       (6) Purchaser.--The term ``Purchaser'' means the Elephant 
     Butte/Caballo Leaseholders Association, Inc., a nonprofit 
     corporation established under the laws of New Mexico.
       (7) Reservoirs.--The term ``reservoirs'' means the Elephant 
     Butte Reservoir and the Caballo Reservoir in the State of New 
     Mexico.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 4. CONVEYANCE OF PROPERTIES.

       (a) In General.--The Secretary shall convey to the 
     Purchaser in accordance with this Act, subject to valid 
     existing rights, all right, title, and interest of the United 
     States in and to the Properties and all appurtenances 
     thereto, including specifically easements for--
       (1) vehicular access to each Property;
       (2) drainage; and
       (3) access to and the use of all ramps, retaining walls, 
     and other improvements for which access is provided under the 
     leases that apply to the Properties as of the date of the 
     enactment of this Act.
       (b) Consideration.--As consideration for any conveyance 
     under this section, the Secretary shall require the Purchaser 
     to pay to the United States fair market value of the 
     Properties.

     SEC. 5. TERMS OF CONVEYANCE.

       (a) Specific Conditions.--As conditions of any conveyance 
     to the Purchaser under this Act, the Secretary shall require 
     the following:
       (1) Leaseholders' option.--The Purchaser shall grant to 
     each Lessee of a Property an option--
       (A) to purchase the Property at fair market value; or
       (B) to continue leasing the Property on terms to be 
     negotiated with the Purchaser.
       (2) Administrative costs.--Any reasonable administrative 
     cost incurred by the Secretary incident to the conveyance 
     under section 6 shall be reimbursed by the Purchaser.
       (b) Restrictive Use Covenant.--
       (1) In general.--To maintain the unique character of the 
     area in the vicinity of the Reservoirs, the Secretary shall 
     establish, by the terms of conveyance, use restrictions to 
     carry out paragraph (2) that--
       (A) are appurtenant to, and run with, each Property; and
       (B) are binding upon each subsequent owner of each 
     Property.
       (2) Access to reservoirs.--The use restrictions required by 
     paragraph (1) shall ensure that--
       (A) public access to and along the shoreline of the 
     Reservoirs in existence on the date of enactment of this Act 
     is not obstructed;
       (B) adequate public access to and along the shoreline of 
     the Reservoirs is maintained; and
       (C) the operation of the Reservoirs by the Secretary or the 
     Irrigation Districts shall not result in liability of the 
     United States or the Irrigation Districts for damages 
     incurred, as a direct or indirect result of such operation, 
     by the owner of any Property conveyed under this Act, 
     including--
       (i) damages for any loss of use or enjoyment of a Property; 
     and
       (ii) damages resulting from any modifications or 
     construction of any reservoir dam.
       (c) Timing.--
       (1) In general.--The Secretary shall convey the Properties 
     under this Act as soon as practicable after the date of 
     enactment of this Act and in accordance with all applicable 
     law.
       (2) Report.--If the Secretary has not completed conveyance 
     of the Properties to the Purchaser by the end of the 1-year 
     period beginning on the date of the enactment of this Act, 
     the Secretary shall, before the end of that period, submit a 
     report to the Congress explaining the reasons that conveyance 
     has not been completed and stating the date by which the 
     conveyance will be completed.
       (d) Reimbursement of Purchaser's Costs.--The terms of 
     conveyance shall authorize the Purchaser to require each 
     Lessee to reimburse the Purchaser for a proportionate share 
     of the costs incurred by the Purchaser in completing the 
     transactions pursuant to this Act, including any interest 
     charges.

     SEC. 6. RESOLUTION OF CLAIMS AND DISPUTES.

       After conveyance of the Properties to the Purchaser, if any 
     Lessee has a dispute with or claim against the Purchaser or 
     any of its officers, directors, or members arising from the 
     Properties, the Lessee shall promptly give written notice of 
     the dispute or claim to the Purchaser. If such notice is not 
     provided to the Purchaser within 20 days after the date the 
     Lessee knew or should have known of such dispute or claim, 
     then any right of the Lessee for relief based on such dispute 
     or claim shall be waived. If the Lessee and the Purchaser are 
     unable to resolve the dispute or claim by mediation, the 
     dispute or claim shall be resolved by binding arbitration.

     SEC. 7. FEDERAL RECLAMATION LAW.

       No conveyance under this Act shall restrict or limit the 
     authority or ability of the Secretary to fulfill the duties 
     of the Secretary under 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 
Arizona (Mr. Hayworth) and the gentleman from American Samoa (Mr. 
Faleomavaega) each will control 20 minutes.
  The Chair recognizes the gentleman from Arizona (Mr. Hayworth).
  Mr. HAYWORTH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, H.R. 706, sponsored by the gentleman from New Mexico 
(Mr. Skeen), directs the Secretary of the Interior to convey certain 
properties in the vicinity of the Elephant Butte Reservoir and the 
Caballo Reservoir in New Mexico, to transfer 403 recreational lots on 
the two reservoirs to private ownership. This transaction will be done 
at fair market value. Congress expects that the cost of the appraisal 
and surveys will be included as reimbursable costs to the purchaser. 
The manager's amendment clarifies several technical issues regarding 
the transfer of the properties.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from New Mexico (Mr. Skeen), the bill's sponsor, to offer further 
information on this legislation.
  Mr. SKEEN. Mr. Speaker, I rise today to ask the House of 
Representatives to support passage of H.R. 706, legislation that will 
allow citizens to purchase the lands on which their homes were built 
near a Bureau of Reclamation project in southern New Mexico.

[[Page 3481]]

  The Elephant Butte Reservoir story begins in the 1930s as the 
government offered people the opportunity to build recreational homes 
on the land leased from the U.S. Bureau of Reclamation. The covenants 
in the lease agreements required leaseholders to make substantial 
investments on the 400-plus sites under this program. It was every 
leaseholder's hope that the government would someday privatize the 
leased land and offer it for sale through a purchase option.
  The Bureau throughout most of the 20th century apparently felt that 
some day they might need this land if the dams were ever enlarged. We 
now believe that the modification or enlargement will never occur.
  While legislation enacted by Congress in 1984 allowed the 
leaseholders of Lake Sumner in New Mexico, where recreational homes 
also existed, the opportunity to purchase their lots, the residents of 
Elephant Butte remained in a lease-only situation.
  Despite my previous efforts, including the introduction of prior-year 
legislation, and established patterns of government transfers, the 
project remained lease-only and lease lot holders remained in limbo.
  There are two issues that had to be resolved with the Bureau of 
Reclamation in order to facilitate a successful transfer. These 
included property appraisal and the number of lots that would be sold.
  My bill, H.R. 706, addresses each of these issues in a fair and 
equitable manner. In effect, all current leaseholders would have the 
opportunity to purchase the land on which their homes currently exist 
as an unapproved, lakefront appraised value.
  Finally, the bill guarantees continued public access to the water. I 
do want to thank the House Committee on Resources for their assistance 
and especially the Subcommittee on Water and Power chairman, the 
gentleman from California (Mr. Calvert), and his talented staff for 
their assistance and patience in working with me on this important 
bill.
  This legislation is carefully crafted to resolve these issues, and we 
must not lose the sight of the fact that this is really a story about 
people, their lives, and the role of the government in the settling of 
the West.
  In closing, Mr. Speaker, I ask Members to do what is right by passing 
this legislation. It is time that we offer these fine people the 
opportunity to purchase the land that many have leased for over 60 
years.
  I thank the gentleman from Arizona (Mr. Hayworth) for his kindness.
  Mr. HAYWORTH. Mr. Speaker, I reserve the balance of my time.
  Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I would like to commend the distinguished chairman of 
the Subcommittee on Interior of the Committee on Appropriations, the 
gentleman from New Mexico (Mr. Skeen) as the principal author of this 
legislation.
  Mr. Speaker, the amendment would transfer title to 43 lakefront lots 
and improvements within the Bureau of Reclamation's Rio Grande Project 
in New Mexico and Texas to the Elephant Butte/Caballo Leaseholders 
Association.

                              {time}  1430

  In the late 1940s, reclamation leased one-half acre lakefront sites 
to visitors using tents, campers or other temporary structures. Over 
time, permanent structures and other improvements replaced the 
temporary structures, and many are now used on a full-time basis.
  The amendment reflects changes recommended by the Interior and 
Justice Departments. It requires the leaseholders to pay market value, 
without regard to improvements made by the lessees.
  Certainly there is no question that this legislation is necessary as 
a relief for these lakefront property owners; and again, I commend the 
gentleman from New Mexico (Mr. Skeen), the chairman of our Committee on 
Appropriations' Subcommittee on Interior. I urge my colleagues to 
support this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HAYWORTH. Mr. Speaker, I yield myself such time as I may consume.
  Though this oft times is far from the roar of the grease paint and 
the smell of the crowd, this is another commonsense piece of 
legislation that we will move on today to reaffirm what is really, we 
call it bipartisan but basically nonpartisan, focusing on results for 
real people.
  The gentleman from New Mexico (Mr. Skeen), the dean of that State's 
delegation, put it quite succinctly, and I think very poignantly, when 
he said this legislation ultimately is about people and doing what is 
right; and it is in that spirit that I would commend this legislation 
to the full body. I congratulate the gentleman from New Mexico (Mr. 
Skeen) on a commonsense piece of legislation.
  I thank, once again, the gentleman from American Samoa (Mr. 
Faleomavaega) for his help on this and the help of all the members of 
the committee to expedite this process to do the right thing.
  Mr. Speaker, I urge passage of this legislation, and I yield back the 
balance of my time.
  Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may 
consume.
  I want to remind my colleagues, this piece of legislation had the 
full, bipartisan support of the Committee on Resources. It also has the 
support of the administration, and I urge my colleagues to support this 
bill.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Culberson). The question is on the 
motion offered by the gentleman from Arizona (Mr. Hayworth) that the 
House suspend the rules and pass the bill, H.R. 706, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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