[107th Congress Public Law 335]
[From the U.S. Government Printing Office]


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[DOCID: f:publ335.107]


[[Page 2877]]

                    LEASE LOT CONVEYANCE ACT OF 2002

[[Page 116 STAT. 2878]]

Public Law 107-335
107th Congress

                                 An Act


 
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. <<NOTE: Dec. 16, 2002 -  [H.R. 706]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Lease Lot Conveyance Act of 
2002.>>  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


[[Page 116 STAT. 2879]]

        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

[[Page 116 STAT. 2880]]

                    (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) <<NOTE: Deadline.>>  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 <<NOTE: Notification.>>  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


[[Page 116 STAT. 2881]]

1093), and Acts supplemental to and amendatory of that Act (43 U.S.C. 
371 et seq.).

    Approved December 16, 2002.

LEGISLATIVE HISTORY--H.R. 706:
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HOUSE REPORTS: No. 107-368 (Comm. on Resources).
SENATE REPORTS: No. 107-287 (Comm. on Energy and Natural Resources).
CONGRESSIONAL RECORD, Vol. 148 (2002):
            Mar. 19, considered and passed House.
            Nov. 19, considered and passed Senate.

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