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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1028 Reported in Senate (RS)]

                                                       Calendar No. 570
107th CONGRESS
  2d Session
                                S. 1028

                          [Report No. 107-253]

 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.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 13, 2001

  Mr. Daschle (for himself and Mr. Johnson) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

                           September 9, 2002

              Reported by Mr. Bingaman, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Blunt Reservoir and Pierre 
Canal Land Conveyance Act of 2001''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds that--</DELETED>
        <DELETED>    (1) under the Act of December 22, 1944 (commonly 
        known as the ``Flood Control Act of 1944'') (58 Stat. 887, 
        chapter 665; 33 U.S.C. 701-1 et seq.), Congress approved the 
        Pick-Sloan Missouri River Basin Program--</DELETED>
                <DELETED>    (A) to promote the general economic 
                development of the United States;</DELETED>
                <DELETED>    (B) to provide for irrigation above Sioux 
                City, Iowa;</DELETED>
                <DELETED>    (C) to provide for municipal and 
                industrial water supply, fish and wildlife, and 
                recreation;</DELETED>
                <DELETED>    (D) to protect urban and rural areas from 
                devastating floods of the Missouri River; and</DELETED>
                <DELETED>    (E) for other purposes;</DELETED>
        <DELETED>    (2) the purpose of the Oahe Unit, James Division, 
        of the Oahe Irrigation Project was to meet the requirements of 
        that Act by providing irrigation above Sioux City, 
        Iowa;</DELETED>
        <DELETED>    (3) the principal features of the initial stage of 
        the Oahe Unit, James Division, of the Oahe Irrigation Project 
        included--</DELETED>
                <DELETED>    (A) a system of main canals, including the 
                Pierre Canal, running east from the Oahe Reservoir; 
                and</DELETED>
                <DELETED>    (B) the establishment of regulating 
                reservoirs, including the Blunt Dam and Reservoir, 
                located approximately 35 miles east of Pierre, South 
                Dakota;</DELETED>
        <DELETED>    (4) land to establish the Pierre Canal and Blunt 
        Reservoir was purchased between 1972 and 1977, when 
        construction on the initial stage of the Oahe Unit, James 
        Division, was halted;</DELETED>
        <DELETED>    (5) since 1978, the Commissioner of Reclamation 
        has administered the land--</DELETED>
                <DELETED>    (A) on a preferential lease basis to 
                original landowners or their descendants; and</DELETED>
                <DELETED>    (B) on a nonpreferential lease basis to 
                other persons;</DELETED>
        <DELETED>    (6) the 2 largest reservoirs created by the Pick-
        Sloan Missouri River Basin Program, Lake Oahe and Lake Sharpe, 
        caused the loss of approximately 221,000 acres of fertile, 
        wooded bottomland in South Dakota that constituted some of the 
        most productive, unique, and irreplaceable wildlife habitat in 
        the State;</DELETED>
        <DELETED>    (7) the State has developed a plan to meet the 
        Federal obligation under the Fish and Wildlife Coordination Act 
        (16 U.S.C. 661 et seq.) to mitigate the loss of wildlife 
        habitat, the implementation of which is authorized by section 
        602 of title VI of Public Law 105-277 (112 Stat. 2681-660); 
        and</DELETED>
        <DELETED>    (8) it is in the interests of the United States 
        and the State to--</DELETED>
                <DELETED>    (A) provide original landowners or their 
                descendants with an opportunity to purchase back their 
                land; and</DELETED>
                <DELETED>    (B) transfer the remaining land to the 
                State to allow implementation of its habitat mitigation 
                plan.</DELETED>

<DELETED>SEC. 3. BLUNT RESERVOIR AND PIERRE CANAL.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Commission.--The term ``Commission'' means the 
        Commission of Schools and Public Lands of the State.</DELETED>
        <DELETED>    (3) Nonpreferential lease parcel.--The term 
        ``nonpreferential lease parcel'' means a parcel of land that--
        </DELETED>
                <DELETED>    (A) was purchased by the Secretary for use 
                in connection with the Blunt Reservoir feature or the 
                Pierre Canal feature; and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (6) Preferential lease parcel.--The term 
        ``preferential lease parcel'' means a parcel of land that--
        </DELETED>
                <DELETED>    (A) was purchased by the Secretary for use 
                in connection with the Blunt Reservoir feature or the 
                Pierre Canal feature; and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (7) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior, acting through the Commissioner of 
        Reclamation.</DELETED>
        <DELETED>    (8) State.--</DELETED>
                <DELETED>    (A) In general.--The term ``State'' means 
                the State of South Dakota.</DELETED>
                <DELETED>    (B) Inclusion.--The term ``State'' 
                includes a successor in interest of the 
                State.</DELETED>
        <DELETED>    (9) Unleased parcel.--The term ``unleased parcel'' 
        means a parcel of land that--</DELETED>
                <DELETED>    (A) was purchased by the Secretary for use 
                in connection with the Blunt Reservoir feature or the 
                Pierre Canal feature; and</DELETED>
                <DELETED>    (B) is not under lease as of the date of 
                enactment of this Act.</DELETED>
<DELETED>    (b) Deauthorization.--The Blunt Reservoir feature is 
deauthorized.</DELETED>
<DELETED>    (c) Conveyance.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall convey all of the 
preferential lease parcels to the Commission, without consideration, on 
the condition that the Commission honor the purchase option provided to 
preferential leaseholders under subsection (e).</DELETED>
<DELETED>    (d) Acceptance of Land and Obligations.--</DELETED>
        <DELETED>    (1) In general.--As a condition of each conveyance 
        under subsections (c) and (f), respectively, the State shall 
        agree to accept--</DELETED>
                <DELETED>    (A) in ``as is'' condition, the Blunt 
                Reservoir Feature and the Pierre Canal Feature; 
                and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Oil, gas, mineral, and other outstanding 
        rights.--A conveyance under subsection (c) or (f) shall be made 
        subject to--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (e) Purchase Option.--</DELETED>
        <DELETED>    (1) In general.--A preferential leaseholder shall 
        have an option to purchase from the Commission the preferential 
        lease parcel that is the subject of the lease.</DELETED>
        <DELETED>    (2) Terms.--</DELETED>
                <DELETED>    (A) In general.--Except as provided in 
                subparagraph (B), a preferential leaseholder may elect 
                to purchase a parcel on 1 of the following 
                terms:</DELETED>
                        <DELETED>    (i) Cash purchase for the amount 
                        that is equal to--</DELETED>
                                <DELETED>    (I) the value of the 
                                parcel determined under paragraph (4); 
                                minus</DELETED>
                                <DELETED>    (II) 10 percent of that 
                                value.</DELETED>
                        <DELETED>    (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.</DELETED>
                <DELETED>    (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).</DELETED>
        <DELETED>    (3) Option exercise period.--</DELETED>
                <DELETED>    (A) In general.--A preferential 
                leaseholder shall have until the date that is 5 years 
                after the date of the conveyance under subsection (c) 
                to exercise the option under paragraph (1).</DELETED>
                <DELETED>    (B) Continuation of leases.--Until the 
                date specified in subparagraph (A), a preferential 
                leaseholder shall be entitled to continue to lease from 
                the Commission 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 
                conveyance.</DELETED>
        <DELETED>    (4) Valuation.--</DELETED>
                <DELETED>    (A) In general.--The value of a 
                preferential lease parcel shall be determined to be, at 
                the election of the preferential leaseholder--
                </DELETED>
                        <DELETED>    (i) the amount that is equal to--
                        </DELETED>
                                <DELETED>    (I) the number of acres of 
                                the preferential lease parcel; 
                                multiplied by</DELETED>
                                <DELETED>    (II) the amount of the 
                                per-acre assessment of adjacent parcels 
                                made by the Director of Equalization of 
                                the county in which the preferential 
                                lease parcel is situated; or</DELETED>
                        <DELETED>    (ii) the amount of a valuation of 
                        the preferential lease parcel for agricultural 
                        use made by an independent appraiser.</DELETED>
                <DELETED>    (B) Cost of appraisal.--If a preferential 
                leaseholder elects to use the method of valuation 
                described in subparagraph (A)(ii), the cost of the 
                valuation shall be paid by the preferential 
                leaseholder.</DELETED>
        <DELETED>    (5) Conveyance to the state.--</DELETED>
                <DELETED>    (A) In general.--If a preferential 
                leaseholder fails to purchase a parcel within the 
                period specified in paragraph (3)(A), the Commission 
                shall convey the parcel to the State of South Dakota 
Department of Game, Fish, and Parks.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (6) Use of proceeds.--Of the proceeds of sales of 
        land under this subsection--</DELETED>
                <DELETED>    (A) not more than $750,000 shall be used 
                to reimburse the Secretary for expenses incurred in 
                implementing this Act;</DELETED>
                <DELETED>    (B) an amount not exceeding 10 percent of 
                the cost of each transaction conducted under this Act 
                shall be used to reimburse the Commission for expenses 
                incurred implementing this Act;</DELETED>
                <DELETED>    (C) $3,095,000 shall be deposited in the 
                South Dakota Wildlife Habitat Mitigation Trust Fund 
                established by section 603 of the Water Resources 
                Development Act of 1999 (113 Stat. 389) for the purpose 
                of paying property taxes on land transferred to the 
                State;</DELETED>
                <DELETED>    (D) $185,400 shall be transferred to Sully 
                County, South Dakota;</DELETED>
                <DELETED>    (E) $14,600 shall be transferred to Hughes 
                County, South Dakota; and</DELETED>
                <DELETED>    (F) the remainder shall be used by the 
                Commission to support public schools in the 
                State.</DELETED>
<DELETED>    (f) Conveyance of Nonpreferential Lease Parcels and 
Unleased Parcels.--</DELETED>
        <DELETED>    (1) Conveyance by secretary to state.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (2) Land exchanges for nonpreferential lease 
        parcels and unleased parcels.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (B) Priority.--The right to exchange 
                nonpreferential lease parcels or unleased parcels shall 
                be granted in the following order of 
                priority:</DELETED>
                        <DELETED>    (i) Exchanges with current lessees 
                        for nonpreferential lease parcels.</DELETED>
                        <DELETED>    (ii) Exchanges with adjoining and 
                        adjacent landowners for unleased parcels and 
                        nonpreferential lease parcels not exchanged by 
                        current lessees.</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (g) Release From Liability.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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'').</DELETED>
<DELETED>    (h) Requirements Concerning Conveyance of Lease Parcels.--
</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (i) Funding of the South Dakota Terrestrial Wildlife 
Habitat Restoration Trust Fund.--Section 603(b) of the Water Resources 
Development Act of 1999 (113 Stat. 388) is amended by striking 
``$108,000,000'' and inserting ``$111,095,000''.</DELETED>
<DELETED>    (j) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this Act $750,000.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Blunt Reservoir and Pierre Canal 
Land Conveyance Act of 2002''.

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.--
            (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 1 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) 10 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.

                                                       Calendar No. 570

107th CONGRESS

  2d Session

                                S. 1028

                          [Report No. 107-253]

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                                 A BILL

 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.

_______________________________________________________________________

                           September 9, 2002

                       Reported with an amendment
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