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[Senate Report 107-253]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 570
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-253

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          BLUNT RESERVOIR AND PIERRE CANAL LAND CONVEYANCE ACT

                                _______
                                

               September 9, 2002.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1028]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1028) 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, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill, as amended, do 
pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

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);
                                  (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 aproperty 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 of 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.

                                PURPOSE

    The purpose of S. 1028 is to authorize the conveyance of 
approximately 17,000 acres of Federal land in South Dakota 
administered by the Bureau of Reclamation that were never used 
for the proposed Blunt Reservoir. The lands would be conveyed 
back to the original land owners or their descendants, or to 
the State of South Dakota for the mitigation of lost wildlife 
habitat.

                          BACKGROUND AND NEED

    S. 1028 is the product of more than three years of 
discussion with local landowners, the South Dakota Water 
Congress, the Bureau of Reclamation, local legislators, 
representatives of South Dakota sportsmen groups, and other 
affected citizens.
    The Oahe Unit was originally approved as part of an overall 
plan or water development in the Missouri River Basin that was 
incorporated in the Floor Control Act of 1944. The initial 
stage of the project included a system of main canals, such as 
the Pierre Canal, running east from the Oahe Reservoir, and the 
establishment of regulating reservoirs, including the Blunt Dam 
and Reservoir, located approximately 35 miles east of Pierre, 
South Dakota.
    A total of 17,878 acres of land was acquired from willing 
sellers for the proposed Blunt Reservoir feature during the 
1970's. Additional land was acquired for the Pierre Canal 
feature.
    After the growth of opposition to the project, construction 
on the Oahe unit was halted on September 30, 1977. Congress did 
not provide funds for the project in the fiscal year 1978.
    In response to this situation, the Bureau of Reclamation 
gave to those persons who had willingly sold their lands to the 
project, and their descendants, the right to lease those lands 
and use them as they had in the past until they were needed by 
the Federal Government for project purposes. Since 1978, the 
Bureau of Reclamation has administered these lands on a 
preference lease basis for original landowners or their 
descendants and on a non-preferential basis for lands under 
lease to persons who had not previously owned or controlled the 
land.
    Currently, the Bureau of Reclamation administers 
approximately 13,000 acres as preferential leases and 
approximately 4,300 acres as non-preferential leases in Blunt 
Reservoir. The Bureau also administers approximately 1,100 
acres of preferential leases and additional acreage of non-
preferential leases in the Pierre Canal feature. The lands are 
not in their original condition. Various stockpiled materials, 
fences, access roads, road detours, and other items left by the 
Bureau remain on the land.
    The Oahe project was a part of the overall Pick-Sloan 
Missouri Basin program, which included four major dams across 
the Missouri River that caused the loss of approximately 
221,000 acres of fertile, wooded bottomland that was productive 
wildlife habitat.
    Under the provisions of the Wildlife Coordination Act of 
1958, the State of South Dakota has developed a plan to 
mitigate a part of this lost wildlife habitat. The transfer of 
the 4,304 acres of non-preferential lease lands in the Blunt 
Reservoir feature to the South Dakota Department of Game, Fish 
and Parks would satisfy, in part, this habitat mitigation 
obligation.

                          LEGISLATIVE HISTORY

    S. 1028 was introduced by Senators Daschle and Johnson on 
June 13, 2001. The Subcommittee on Public Lands and Forests 
held a hearing on S. 1028 on November 27, 2001. At the business 
meeting on July 31, 2002, the Committee on Energy and Natural 
Resources ordered S.1028, as amended, favorably reported.

                        COMMITTEE RECOMMENDATION

    The Committee on Energy and Natural Resources, in open 
business session on July 31, 2002, by a voice vote of a quorum 
present, recommends that the Senate pass S. 1028, if amended as 
described herein.

                          COMMITTEE AMENDMENT

    During its consideration of S. 1028, the Committee adopted 
an amendment in the nature of a substitute which changes the 
structure of land conveyances in S. 1028 and removes direct 
spending provisions. As introduced, S. 1028 conveyed Federally 
owned land to the State of South Dakota for no consideration, 
on the condition that the State offer the land to preferential 
leaseholders. The State would have kept the proceeds from any 
such sales.
    Under the substitute amendment, the Federal Government will 
keep the lands leased to preferential leaseholders while the 
State Schools Commission attempts to sell them as an agent for 
the Federal Government. If the lands are sold, the money will 
return to the U.S. Treasury. The amendment authorizes the State 
of South Dakota to establish a trust fund to pay the county 
taxes on the lands received by the State Department of Game, 
Fish and Parks under the bill, subject to appropriation.
    The amendment does not substantially change the provisions 
concerning lands leased to nonpreferential leaseholders, with 
one exception. The conveyance of these lands to the State shall 
be subject to the conditions specified in section 667b of title 
16, United States Code, for transfer of property to state 
agencies for wildlife conservation purposes.
    The substitute amendment also makes a number of other 
changes, including removing the findings and ensuring that the 
land subject to sale is appraised at fair market value for 
agricultural purposes.
    The amendment is explained in detail in the section-by-
section analysis, below.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 entitles the Act the ``Blunt Reservoir and Pierre 
Canal Land Conveyance Act of 2002.''
    Section 2 (a) defines key terms used in the Act.
    Subsection (b) deauthorizes the Blunt Reservoir feature of 
the Oahe Irrigation Project.
    Subsection (c) requires the State of South Dakota to accept 
land conveyed to it under the bill in ``as in'' condition, 
assume responsibility for any outstanding liabilities, and 
recognize any outstanding rights of third parties. The 
conveyances to the State shall also be subject to the 
reservations by the United States and the conditions specified 
in section 667b of title 16, United States Code, for transfer 
of property to State agencies for wildlife conservation 
purposes. The conveyances shall be subject to the reservation 
by the United States of all oil, gas, and mineral rights, to 
the condition that the property continue to be used for 
wildlife conservation and in the event it is no longer used for 
such purposes or in the event it is needed for national defense 
purposes title shall revert to the United States.
    Subsection (d) allows the preferential leaseholders 
(original landowners or descendants, oroperators of the land at 
the time of purchase) an option to purchase the land they lease within 
5 years of enactment. Any purchases shall be from the South Dakota 
Commission of Schools and Public Lands (``Commission''), acting as an 
agent for the Secretary of the Interior. The leaseholders would have 
the option of paying cash and receiving a 10 percent discount on the 
land's value, or receiving a 30-year mortgage at 3 percent annual 
interest.
    The value of a preferential lease parcel shall be its fair 
market value for agricultural purposes, as 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. If the preferential leaseholder fails to 
purchase a parcel within the 5-year period, that parcel would 
be conveyed to the South Dakota Department of Game, Fish, and 
Parks to assist in the implementation of the wildlife habitat 
mitigation plan.
    Proceeds of the sales shall be deposited as miscellaneous 
funds in the Treasury and made available, subject to 
appropriation, 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.
    Subsection (e) directs the Secretary of the Interior to 
convey to the South Dakota Department of Game, Fish, and Parks 
the nonpreferential leased parcels and unleased parcels of the 
Blunt Reservoir and Pierre Canal to be used for mitigating the 
wildlife habitat that was lost as a result of the development 
of the Pick-Sloan project. The Commission would also be 
authorized, with the Department's concurrence, to allow a 
person to exchange other land in South Dakota for a 
nonpreferential lease parcel or unleased parcel at Blunt 
Reservoir or Pierre Canal. This subsection also reserves to the 
United States a perpetual easement to the land to allow for a 
pipeline or other water conveyance structure over, under, 
across, or through the Pierre Canal Feature.
    Subsection (f) releases the United States from liability, 
except for damages from certain acts of negligence committed 
prior to the date of conveyance.
    Subsection (g) provides that, during the interim period 
prior to the expiration of their purchase option after five 
years, the preferential leaseholders would be entitled to 
continue to lease from the Secretary of the Interior under the 
same terms and conditions applicable on the date of enactment. 
Within 180 days of enactment, 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.
    Subsection (h) authorizes $750,000 to be appropriated 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.

                   COST AND BUDGETARY CONSIDERATIONS

    The Congressional Budget Office cost estimate report had 
not been received at the time the report was filed. When the 
report becomes available, the Chairman will request that it be 
printed in the Congressional Record for the advice of the 
Senate.

                      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. 1028. 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. 1028, as ordered reported.

                        EXECUTIVE COMMUNICATIONS

    The pertinent legislative report received by the Committee 
from the Department of the Interior setting forth Executive 
agency recommendations relating to S. 1028 is set forth below:

                   U.S. Department of the Interior,
                                   Office of the Secretary,
                                    Washington, DC, August 8, 2002.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: This letter responds to your request for 
the views of the Department of the Interior on S. 1028, the 
``Blunt Reservoir and Pierre Canal Land Conveyance Act of 
2001.'' This confirms testimony of Larry Todd, Director of 
Operations for the U.S. Bureau of Reclamation, on November 27, 
2001 before the Subcommittee on Forests and Public Lands 
Management.
    S. 1028 directs the Secretary of the Interior (Secretary) 
to convey certain parcels of land acquired for the Blunt 
Reservoir and Pierre Canal--features of the Oahe Irrigation 
Project in South Dakota--to the Commission of Schools and 
Public Lands of the State of South Dakota (Commission) for the 
purpose of mitigating lost wildlife habitat, on the condition 
that current preferential leaseholders (the original owners of 
the acquired lands or their descendants) have the option to 
purchase the parcels from the Commission.
    The basic concept of S. 1028, to allow original landowners 
to regain title to lands that Reclamation purchased in 
anticipation of a project that was never built, is 
straightforward and equitable. Further, the sponsors of S. 1028 
have addressed a number of the technical issues, related to 
liability, land descriptions, and reimbursement of Federal 
implementation costs, that were raised in the past. However, 
the Department has concerns with the bill, in particular that 
it fails to adequately protect taxpayers' interests, as it 
directs Reclamation to convey the lands to the State without 
any consideration of the initial taxpayer investment they 
represent, and cannot support the bill in its current form.

Background

    In preparation for building the Blunt Reservoir and the 
Pierre Canal, Reclamation purchased approximately 19,200 acres 
of land between 1972 and 1977. In many cases, Reclamation 
leased the land back to the seller. Currently, Reclamation is 
leasing some 13,000 acres of Blunt Reservoir lands to 19 
preferential leaseholders and about 1,100 acres of Pierre Canal 
lands to 29 preferential leaseholders. Although not reflected 
in title documents, the sellers expected they would be able to 
purchase their lands back if they were not needed for the 
project.
    Nearly three decades later, construction has not commenced 
for the Blunt Reservoir, although some earth-moving has been 
done for the Pierre Canal. Reclamation supports the conclusion 
that it is unlikely this project will be built, and, therefore, 
Reclamation no longer needs to hold title to the acquired 
lands. Under S. 1028, Reclamation's interest in the more than 
14,000 acres currently leased by preferential leaseholders (the 
original landowners or their descendants) would be conveyed to 
the South Dakota Commission of Schools and Public Lands, on 
condition that the original landowners have the option to 
purchase it back. If a preferential leaseholder declines to 
purchase the land, the Commission is to convey the parcel to 
the South Dakota Department of Game, Fish, and Parks for 
wildlife habitat mitigation. Reclamation's interest in the 
5,000 acres currently unleased or leased to other parties would 
be conveyed to the State of South Dakota Department of Game, 
Fish, and Parks to be used in mitigation of wildlife habitat 
lost as a result of Pick-Sloan development.

Valuation and payment

    S. 1028, as introduced, directs Reclamation to transfer 
land holdings worth up to $4-$6 million to the South Dakota 
State Commission of Schools and Public Lands without any 
payment from the State. The Administration opposes such 
transfers of significant Reclamation Project assets to non-
Federal entities without compensation. In general, such 
transfers should be for fair market value of the property. S. 
1028 would be subject to the Pay-As-You-Go requirements of the 
Omnibus Budget Act of 1990.
    We would like to express our appreciation for the work done 
by the sponsors to address a number of technical issues that 
have been raised in the past. We are aware that an amended bill 
was presented to the Committee for mark up and we are 
optimistic that our concerns are being met.
    The Office of Management and Budget advises that there is 
no objection to the presentation of this report from the 
standpoint of the Administration's program.
            Sincerely,
                                          John W. Keys III,
                               Commissioner, Bureau of Reclamation.

                        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 the bill S. 1028, as 
ordered reported.

                                
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