To authorize and direct the Secretary of the Interior to convey certain works, facilities, and titles of the Gila Project, and Designated Lands within or adjacent to the Gila Project, to the Wellton-Mohawk Irrigation and Drainage District, and for other purposes.

SECTION 1. CONVEYANCE OF TITLE TO WORKS, FACILITIES, AND LANDS.

    (a) Definitions.--
            (1) Consolidated contract.--The term ``consolidated 
        contract'' means the ``Amendatory and Supplemental Consolidated 
        Contract with Wellton-Mohawk Irrigation and Drainage District 
        for Delivery of Water, Construction of Works, Repayment, and 
        Project Power Supply'' (Reclamation's Contract Number 1-07-30-
        W0021 Amendment No. 1) and any amendments or supplements.
            (2) Designated lands.--The term ``Designated Lands'' means 
        those lands within or adjacent to the Division designated by 
        Wellton-Mohawk, in conjunction with Reclamation, on the 
        Production Re-examination Board maps referenced in the 
        Consolidated Contract. Wellton-Mohawk will acquire the 
        Designated Lands by fair value purchase or exchange as set 
        forth in the Memorandum of Agreement.
            (3) Division.--The term ``Division'' means the Wellton-
        Mohawk Division of the Gila Project, Arizona.
            (4) Memorandum of agreement.--The term ``Memorandum of 
        Agreement'' means the agreement to be made between the 
        Secretary and Wellton-Mohawk setting forth, among other things, 
        the amount of administrative costs to be shared by the United 
        States and Wellton-Mohawk; the fair value price of the 
        Designated Lands to be purchased by Wellton-Mohawk; the date 
        certain by which transfer must be completed to avoid transfer 
        by operation of law; and, addressing salinity control concerns 
        of Reclamation with regards to return flows from Wellton-
        Mohawk.
            (5) Reclamation.--The term ``Reclamation'' means the 
        Department of the Interior, Bureau of Reclamation.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (7) Wellton-mohawk.--The term ``Wellton-Mohawk'' means the 
        Wellton-Mohawk Irrigation and Drainage District, an irrigation 
        and drainage district created, organized and existing under and 
        by virtue of the laws of the State of Arizona. Wellton-Mohawk 
        is a fully paid out single reclamation purpose district and 
        intends to continue to operate as a single reclamation purpose 
        district following transfer of title to its works, facilities, 
        and lands.
            (8) Western.--The term ``Western'' means the Department of 
        Energy, Western Area Power Administration.
    (b) Conveyance.--The Secretary shall, upon payment of such 
consideration as provided in this section and section (d) (requiring 
fair value payment for Designated Lands) and none other, convey to 
Wellton-Mohawk, by quitclaim deed or patent, all right, title, and 
interest of the United States in and to Designated Lands, easements, 
and rights-of-way of or in connection with the Division, together with 
the pumping plants, canals, drains, laterals, roads, pumps, motors, 
checks, headgates, relifts, transformers, buildings, works, including 
Gila River flood protection and control works and related works and 
facilities made a part of the project works by Reclamation Contract 9-
07-30-W0117, and other improvements or appurtenances to the land or 
used for the delivery of water from the headworks (but not the 
headworks themselves) of the Wellton-Mohawk Canal, including all 
facilities used in conjunction with the Division (including the 
Wellton-Mohawk Main Conveyance Channel and drainage facilities of the 
Division and related purposes for which the allocable construction 
costs have been fully repaid by Wellton-Mohawk). Administrative costs, 
including costs associated with compliance with procedural requirements 
of environmental or other statutes, of transfer of title to works, 
facilities, and lands and related activities shall be paid in equal 
shares by the United States and Wellton-Mohawk, pursuant to the 
Memorandum of Agreement. Reclamation is hereby authorized to expend 
funds for the purpose of completing the transfer of title to works, 
facilities, and lands herein authorized and directed.
    (c) Water and Power Delivery.--Notwithstanding the transfer of 
title to works, facilities, and lands, the Secretary shall continue to 
deliver water to Wellton-Mohawk in accordance with the terms of the 
Consolidated Contract. Notwithstanding the transfer of title to works, 
facilities, and lands, the Secretary and Western shall continue to 
provide Wellton-Mohawk with project reserved power from the Parker 
Reclamation Power Plant and Davis Reclamation Power Plant, in 
accordance with the terms of the Consolidated Contract and the ``Power 
Management Agreement'' (Reclamation's and Western's Contract Numbers 6-
CU-30-P1136, 6-CU-30-P1137, and 6-CU-30-P1138).
    (d) Payment.--Consideration for the Designated lands shall be the 
fair value of the Designated Lands as established in the Memorandum of 
Agreement. Fair value shall be paid to the United States by Wellton-
Mohawk, to the United States at the time of transfer.
    (e) Liability.--Effective on the date of conveyance of the project 
works, facilities and lands, described in section 1(b), 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 
conveyed works, facilities, and lands, except for damages caused by 
acts of negligence committed by the United States or by its employees, 
agents, or contractors as provided in the Federal Tort Claims Act (28 
U.S.C. 2671 et seq.).
    (f) Salinity Control.--The Memorandum of Agreement shall resolve 
any salinity control issues resulting from return flows from Wellton-
Mohawk in accordance with Public Law 93-320.
    (g) Report.--The Secretary shall provide a report to the Committee 
on Resources of the United States House of Representatives and to the 
Committee on Energy and Natural Resources of the United States Senate 
within 18 months from the date of enactment of this Act on the status 
of the transfer, any obstacles to completion of the transfer as 
provided in this section, and the anticipated date for such transfer. 
If such transfer has not occurred by the date certain established in 
the Memorandum of Agreement, then upon the tender of fair value, as 
established by Wellton-Mohawk, to the Secretary by Wellton-Mohawk, all 
right, title, and interest of the United States in and to the works, 
facilities, and lands described in section (b) shall transfer to and 
vest in Wellton-Mohawk by operation of law. The Secretary shall provide 
such evidence of title as Wellton-Mohawk may request at no cost to 
Wellton-Mohawk.

Summary: Directs the Secretary of the Interior, after payment to the United States of appropriate consideration, to transfer certain works, facilities, and titles of the Gila Project, Arizona, as well as designated lands within or adjacent to such Project, to the Wellton-Mohawk Irrigation and Drainage District in Arizona. Requires the Secretary to continue to deliver water to the District under the terms of a current consolidated contract. Directs the Secretary to report to specified congressional committees on the status of such transfer, any transfer obstacles, and the anticipated transfer completion date.