To authorize the Secretary of the Interior to acquire Fern Lake and the surrounding watershed in the States of Kentucky and Tennessee for addition to Cumberland Gap National Historical Park, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fern Lake Conservation and 
Recreation Act of 2001''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) Fern Lake and its surrounding watershed in Bell County, 
        Kentucky, and Claiborne County, Tennessee, is within the 
        potential boundaries of Cumberland Gap National Historical Park 
        as originally authorized by the Act of June 11, 1940 (54 Stat. 
        262; 16 U.S.C. 261 et seq.).
            (2) The acquisition of Fern Lake and its surrounding 
        watershed and its inclusion in Cumberland Gap National 
        Historical Park would protect the vista from Pinnacle Overlook, 
        which is one of the park's most valuable scenic resources and 
        most popular attractions, and enhance recreational 
        opportunities at the park.
            (3) Fern Lake is the water supply source for the city of 
        Middlesboro, Kentucky, and environs.
            (4) The 4500-acre Fern Lake watershed is privately owned, 
        and the 150-acre lake and part of the watershed are currently 
        for sale, but the Secretary of the Interior is precluded by the 
        first section of the Act of June 11, 1940 (16 U.S.C. 261), from 
        using appropriated funds to acquire the lands.
    (b) Purposes.--The purposes of the Act are--
            (1) to authorize the Secretary of the Interior to use 
        appropriated funds if necessary, in addition to other 
        acquisition methods, to acquire from willing sellers Fern Lake 
        and its surrounding watershed, in order to protect scenic and 
        natural resources and enhance recreational opportunities at 
        Cumberland Gap National Historical Park; and
            (2) to allow the continued supply of water from Fern Lake 
        to the city of Middlesboro, Kentucky, and environs.

SEC. 3. LAND ACQUISITION, FERN LAKE, CUMBERLAND GAP NATIONAL HISTORICAL 
              PARK.

    (a) Definitions.--In this section:
            (1) Fern lake.--The term ``Fern Lake'' means Fern Lake 
        located in Bell County, Kentucky, and Claiborne County, 
        Tennessee.
            (2) Land.--The term ``land'' means land, water, interests 
        in land, and any improvements on the land.
            (3) Park.--The term ``park'' means Cumberland Gap National 
        Historical Park, as authorized and established by the Act of 
        June 11, 1940 (54 Stat. 262; 16 U.S.C. 261 et seq.).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of the National 
        Park Service.
    (b) Acquisition Authorized.--The Secretary may acquire for addition 
to the park lands consisting of approximately 4,500 acres and 
containing Fern Lake and its surrounding watershed, as generally 
depicted on the map entitled ``Cumberland Gap National Historical Park, 
Fern Lake Watershed'', numbered 380/80,004, and dated May 2001. The map 
shall be on file in the appropriate offices of the National Park 
Service.
    (c) Authorized Acquisition Methods.--
            (1) In general.--Notwithstanding the Act of June 11, 1940 
        (16 U.S.C. 261 et seq.), the Secretary may acquire lands 
        described in subsection (b) by donation, purchase with donated 
        or appropriated funds, or exchange. However, the lands may be 
        acquired only with the consent of the owner.
            (2) Easements.--At the discretion of the Secretary, the 
        Secretary may acquire land described in subsection (b) that is 
        subject to an easement for water supply facilities and 
        equipment associated with the withdrawal and delivery of water 
        by a utility from Fern Lake to the city of Middlesboro, 
        Kentucky, and environs.
    (d) Boundary Adjustment and Administration.--Upon the acquisition 
of land under this section, the Secretary shall revise the boundaries 
of the park to include the land in the park. Subject to subsection (e), 
the Secretary shall administer the acquired lands as part of the park 
in accordance with the laws and regulations applicable to the park.
    (e) Special Issues Related to Fern Lake.--
            (1) Protection of water supply.--The Secretary shall manage 
        public recreational use of Fern Lake, if acquired by the 
        Secretary, in a manner that is consistent with the protection 
        of the lake as a source of untreated water for the city of 
        Middlesboro, Kentucky, and environs.
            (2) Sale of water.--
                    (A) Contract with utility.--Upon the Secretary's 
                acquisition of land that includes Fern Lake, the 
                Secretary shall enter into a contract to sell untreated 
                water from the lake to a utility that delivers and 
                distributes water to the city of Middlesboro, Kentucky, 
                and environs. The Secretary shall ensure that the terms 
                and conditions of the contract are equitable, ensuring 
                a balance between the protection of park resources and 
                the delivery and distribution of sufficient water to 
                continue meeting the water demands of the city of 
                Middlesboro, Kentucky, and environs.
                    (B) Proceeds from water.--The Secretary shall 
                negotiate a reasonable return to the United States for 
                the sale of the water, which the Secretary may receive 
                in the form of reduced charges for water service. 
                Proceeds from the sale of the water, reduced by any 
                offsets for water service to the park, shall be 
                available for expenditure by the Secretary at the park 
                without further appropriation.
    (f) Consultation Requirements.--In order to better manage Fern Lake 
and its surrounding watershed, if acquired by the Secretary, in a 
manner that will facilitate the provision of water for municipal needs 
as well as the establishment and promotion of new recreational 
opportunities made possible by the addition of Fern Lake to the park, 
the Secretary shall consult with--
            (1) appropriate officials in the States of Kentucky, 
        Tennessee, and Virginia, and political subdivisions of these 
        States;
            (2) organizations involved in promoting tourism in these 
        States; and
            (3) other interested parties.

            Passed the House of Representatives December 5, 2001.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

Summary: Fern Lake Conservation and Recreation Act of 2001 - Authorizes the Secretary of the Interior, acting through the Director of the National Park Service, to acquire by donation, purchase, or exchange , specified lands which contain Fern Lake and its surrounding watershed located in Bell County, Kentucky, and Claiborne County, Tennessee. Authorizes the Secretary to acquire any such land subject to an easement for water supply facilities and equipment associated with the withdrawal and delivery of water by a utility from Fern Lake to Middlesboro, Kentucky, and environs. Directs the Secretary to: (1) revise the boundaries of the Cumberland Gap National Historical Park to include such acquired land, (2) protect the lake as a source of untreated water. (3) contract to sell the untreated water to a utility that delivers water to Middlesboro, Kentucky, and environs. And (4) use water sale proceeds for expenditure at the park, without further appropriation. Requires the utility contract to ensure an equitable balance between protecting the park and providing sufficient water. Requires the Secretary to consult with the appropriate State officials and tourism organizations.