99–010 

Calendar No. 145 

112TH CONGRESS REPORT " ! SENATE 1st Session 112–65 

EAST BENCH IRRIGATION DISTRICT WATER CONTRACT 

EXTENSION ACT 

AUGUST 30 (legislative day, AUGUST 2), 2011.—Ordered to be printed 

Filed under authority of the order of the Senate of August 2, 2011 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 997] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 997) to authorize the Secretary of the Interior 

to extend a water contract between the United States and the East 

Bench Irrigation District, having considered the same, reports favorably thereon without amendment and recommends that the bill 

do pass. 

PURPOSE

The purpose of S. 997 is to authorize the Secretary of the Interior 

to extend a water contract between the United States and the East 

Bench Irrigation District in Montana. 

BACKGROUND AND NEED

The East Bench Unit of the Pick-Sloan Missouri Basin Program 

is located in southwestern Montana, along the Beaverhead River 

and was originally authorized in 1944. The unit provides irrigation 

service to approximately 28,000 acres. 

The water supply contract between the East Bench Irrigation 

District and the Bureau of Reclamation expired on December 31, 

2009. Reclamation is not able to extend the contract deadline administratively; therefore Congressional approval is necessary. Extensions were granted during the 108th and 109th Congresses. The 

Montana Water Court is in the process of adjudicating the water 

rights to the system, including the water subject to the contract. 


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National Environmental Policy Act requirements relating to the 

contract extension have been completed and the only outstanding 

requirement is for the Montana courts to confirm the contract 

terms. 

LEGISLATIVE HISTORY

Senator Tester introduced S. 997 on May 12, 2011. The Subcommittee on Water and Power of the Committee on Energy and 

Natural Resources held a hearing on S. 997 on June 23, 2011, and 

considered the bill at its business meeting on July 14, 2011. The 

Committee ordered S. 997 favorably reported without amendment 

at its business meeting on July 14, 2011. 

COMMITTEE RECOMMENDATION

The Senate Committee on Energy and Natural Resources, in 

open business session on July 14, 2011, by voice vote of a quorum 

present, recommends that the Senate pass S. 997. 

SECTION-BY-SECTION ANALYSIS

Section 1 includes the short title for the bill. 

Section 2 authorizes the Secretary of the Interior to extend the 

contract for water services for the East Bench Irrigation District, 

numbered 14–06–600–3593, until the earlier of either the date that 

is four years after the date on which the contract would have expired if this Act is not enacted, or the date on which a new longterm contract is executed by the parties to the contract. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office: 

S. 997—A bill to authorize the Secretary of the Interior to extend a 

water contract between the United States and the East Bench 

Irrigation District 

S. 997 would authorize the Secretary of the Interior, acting 

through the Bureau of Reclamation, to extend the water contract 

between the United States and the East Bench Irrigation District 

for four years or until a new long-term contract is executed, whichever is earlier. Based on information from the Bureau of Reclamation, CBO estimates that enacting the bill would have no impact 

on the federal budget. Enacting S. 997 would not affect revenues 

or direct spending; therefore, pay-as-you-go procedures do not 

apply. 

The Bureau of Reclamation supplies irrigation water from the 

Clark Canyon Dam and Reservoir project to the East Bench Irrigation District under an interim contract negotiated in 2006 after the 

original contract expired. When confirmed by a Montana district 

court, the 2006 contract will become the long-term contract. Payments to the federal government under the 2006 contract are about 

$115,000 annually, including reimbursement for operations and 

maintenance costs. Enacting S. 997 would not affect those annual 

payments. 


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S. 997 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Aurora Swanson. The 

estimate was approved by Theresa Gullo, Deputy Assistant Director for Budget Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 997. 

The bill is not a regulatory measure in the sense of imposing 

Government-established standards or significant economic responsibilities on private individuals and businesses. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would result from the enactment of S. 997, as ordered reported. 

CONGRESSIONALLY DIRECTED SPENDING

S. 997, as ordered reported, does not contain any congressionally 

directed spending items, limited tax benefits, or limited tariff benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

The testimony provided by the Bureau of Reclamation at the 

June 23, 2011, Subcommittee hearing on S. 997 follows: 

STATEMENT OF GRAYFORD F. PAYNE, DEPUTY COMMISSIONER FOR POLICY, ADMINISTRATION AND BUDGET, BUREAU OF RECLAMATION, DEPARTMENT OF THE INTERIOR

Madam Chairman and Members of the Subcommittee, I 

am Grayford Payne, Deputy Commissioner for Policy, Administration and Budget at the Bureau of Reclamation 

(Reclamation). I am pleased to provide the views of the Department of the Interior (Department) on S. 997, the East 

Bench Irrigation District Water Contract Extension Act. 

The Department supports S. 997. 

Reclamation’s Clark Canyon Dam and Reservoir are located in southwest Montana and supply irrigation water 

under contract to the East Bench Irrigation District 

(EBID). EBID’s water service contract with Reclamation 

was first executed in October 1958 and expired on December 31, 2005. Pursuant to Section 1 of the Act of May 15, 

1922 (42 Stat. 541), Section 46 of the Omnibus Adjustment 

Act of 1926 (44 Stat. 649), and Section 85–7–1957, Montana Code Annotated, execution of a new contract between 

the United States and any irrigation district requires a 

Montana 5th District Court decree. 

In 2006, EBID filed a petition with the court seeking 

court confirmation of the execution of their new proposed 

renewed contract with Reclamation. A hearing was convened on December 14, 2006, in Dillon, MT. One party apVerDate Mar 15 2010 03:52 Sep 01, 2011 Jkt 099010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6969 E:\HR\OC\SR065.XXX SR065

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peared and filed an objection to the confirmation proceedings. The parties involved in this court confirmation 

case have filed various petitions and motions with the 

court. The court issued an order on April 26, 2007, in response to EBID’s petition to dismiss the objection, dismissing some of the counterclaims filed by the objectors, 

but continuing with other counterclaims. No trial date has 

been set for this case and as a result, no court decree confirming the 2006 contract has been issued. 

Additionally, prior year appropriations bills have extended the contracts for terms of up to two years. EBID remains concerned about losing their right to renew their 

1958 contract if it is allowed to expire prior to securing a 

court decree of the renewed 2006 Contract. For this reason 

they are pursuing extension of the 1958 contract versus relying on a temporary water service contract. 

Under current law, the 2006 contract is not binding on 

the United States until court confirmation is secured. A 

final decree from the court confirming the 2006 contract 

has not occurred. Therefore, EBID is seeking authority 

under S. 997 to extend the 1958 contract. S. 997 would extend the contract for four years (to December 31, 2013) or 

until a new contract is executed, and still defer to the 

court to take up the issue again at a time of its choosing. 

The Department supports this legislation because it would 

allow water service to the EBID to continue and protects 

the right for contract renewal while the court confirmation 

process is given time to be completed. 

This concludes my statement. I am pleased to answer 

any questions the Subcommittee may have. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee notes that no changes in existing law are made by S. 997, as ordered reported. 

Æ 


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