[Congressional Record (Bound Edition), Volume 149 (2003), Part 6]
[Senate]
[Pages 8431-8432]
[From the U.S. Government Publishing Office, www.gpo.gov]




      BLUNT RESERVOIR AND PIERRE CANAL LAND CONVEYANCE ACT OF 2003

  The bill (S. 426) 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 State 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, was 
considered, ordered to be engrossed for a third reading, read the third 
time, and passed, 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.--

[[Page 8432]]

       (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 
     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.

  Mr. REID. Mr. President, I wish to state how much I appreciate the 
cooperation of the ranking member and the chairman of the Energy and 
Natural Resources Committee. It took a few minutes to do this, but it 
has taken weeks to get to this point. I express my appreciation to all 
Senators involved. It was very hard to do.

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