79–010 

Calendar No. 537 

115TH CONGRESS REPORT " ! SENATE 2d Session 115–314 

TO ESTABLISH A PROCEDURE FOR THE CONVEYANCE OF 

CERTAIN FEDERAL PROPERTY AROUND THE JAMESTOWN RESERVOIR 

AUGUST 1, 2018.—Ordered to be printed 

Ms. MURKOWSKI, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 2074] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 2074) to establish a procedure for the conveyance of certain Federal property around the Jamestown Reservoir 

in the State of North Dakota, and for other purposes, having considered the same, reports favorably thereon with an amendment in 

the nature of a substitute and recommends that the bill, as amended, do pass. 

AMENDMENT

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. DEFINITIONS. 

In this Act: 

(1) BOARD.—The term ‘‘Board’’ means the Stutsman County Park Board in 

Jamestown, North Dakota. 

(2) GAME AND FISH HEADQUARTERS.—The term ‘‘game and fish headquarters’’ 

means the land depicted as ‘‘Game and Fish Headquarters’’ on the Map. 

(3) JAMESTOWN RESERVOIR.—The term ‘‘Jamestown Reservoir’’ means the 

Jamestown Reservoir constructed as a unit of the Missouri-Souris Division, 

Pick-Sloan Missouri Basin Program, as authorized by section 9 of the Act of December 22, 1944 (commonly known as the ‘‘Flood Control Act of 1944’’) (58 Stat. 

891, chapter 665). 

(4) MANAGEMENT AGREEMENT.—The term ‘‘Management Agreement’’ means 

the management agreement entitled ‘‘Management Agreement between the 

United States of America and Stutsman County Park Board for the ManageVerDate Sep 11 2014 01:54 Aug 03, 2018 Jkt 079010 PO 00000 Frm 00001 Fmt 6659 Sfmt 6621 E:\HR\OC\SR314.XXX SR314
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ment, Development, Operation and Maintenance of Recreation and Related Improvements and Facilities at Jamestown Reservoir Stutsman County, North Dakota’’, numbered 15–LM–60–2255, and dated February 17, 2015. 

(5) MAP.—The term ‘‘Map’’ means the map prepared by the Bureau of Reclamation, entitled ‘‘Jamestown Reservoir’’, and dated May 2018. 

(6) PERMITTED CABIN LAND.—The term ‘‘permitted cabin land’’ means the land 

depicted as ‘‘Permitted Cabin Lands’’ on the Map. 

(7) PROPERTY.—The term ‘‘property’’ means any cabin site located on permitted cabin land for which a permit is in effect on the date of enactment of 

this Act. 

(8) RECREATION LAND.—The term ‘‘recreation land’’ means the land depicted 

as ‘‘Recreation and Public Purpose Lands’’ on the Map. 

(9) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior, 

acting through the Commissioner of Reclamation. 

(10) STATE.—The term ‘‘State’’ means the State of North Dakota, acting 

through the North Dakota Game and Fish Department. 

SEC. 2. CONVEYANCES TO STUTSMAN COUNTY PARK BOARD.— 

(a) CONVEYANCES TO STUTSMAN COUNTY PARK BOARD.— 

(1) IN GENERAL.—Subject to the management requirements of paragraph (3) 

and the easements and reservations under section 4, not later than 5 years 

after the date of enactment of this Act, the Secretary shall convey to the Board 

all right, title, and interest of the United States in and to— 

(A) the recreation land; and 

(B) the permitted cabin land. 

(2) COSTS.— 

(A) IN GENERAL.—Except as provided in subparagraph (B), the Secretary 

shall convey the land described in paragraph (1) at no cost. 

(B) TITLE TRANSFER; LAND SURVEYS.—As a condition of the conveyances 

under paragraph (1), the Board shall agree to pay all survey and other administrative costs necessary for the preparation and completion of any patents for, and transfers of title to, the land described in paragraph (1). 

(3) MANAGEMENT.— 

(A) RECREATION LAND.—The Board shall manage the recreation land conveyed under paragraph (1)— 

(i) for recreation and public purposes consistent with the Act of June 

14, 1926 (commonly known as the ‘‘Recreation and Public Purposes 

Act’’) (44 Stat. 741, chapter 578; 43 U.S.C. 869 et seq.); 

(ii) for public access; 

(iii) for fish and wildlife habitat; or 

(iv) to preserve the natural character of the recreation land. 

(B) PERMITTED CABIN LAND.—The Board shall manage the permitted 

cabin land conveyed under paragraph (1)— 

(i) for cabins or recreational residences in existence as of the date of 

enactment of this Act; or 

(ii) for any of the recreation land management purposes described in 

subparagraph (A). 

(4) HAYING AND GRAZING.—With respect to recreation land conveyed under 

paragraph (1) that is used for haying or grazing authorized by the Management 

Agreement as of the date of enactment of this Act, the Board may continue to 

permit haying and grazing in a manner that is permissible under the 1 or more 

haying or grazing contracts in effect as of the date of enactment of this Act. 

(b) REVERSION.—If a parcel of land conveyed under subparagraph (A) or (B) of 

subsection (a)(1) is used in a manner that is inconsistent with the requirements described in subparagraph (A) or (B), respectively, of subsection (a)(3), the parcel of 

land shall, at the discretion of the Secretary, revert to the United States. 

(c) SALE OF PERMITTED CABIN LAND BY BOARD.— 

(1) IN GENERAL.—If the Board sells any parcel of permitted cabin land conveyed under subsection (a)(1)(B), the parcel shall be sold at fair market value, 

as determined by a third-party appraiser in accordance with the Uniform 

Standards of Professional Appraisal Practice, subject to paragraph (2). 

(2) IMPROVEMENTS.—For purposes of an appraisal conducted under paragraph 

(1), any improvements on the permitted cabin land made by a permit holder 

shall not be included in the appraised value of the land. 

(3) PROCEEDS FROM THE SALE OF LAND BY THE BOARD.—If the Board sells a 

parcel of permitted cabin land conveyed under subsection (a)(1)(B), the Board 

shall pay to the Secretary the amount of any proceeds of the sale that exceed 

the costs of preparing the sale by the Board. 

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(d) AVAILABILITY OF FUNDS TO THE SECRETARY.—Any amounts paid to the Secretary for land conveyed by the Secretary under this Act shall be made available 

to the Secretary, without further appropriation, for activities relating to the operation of the Jamestown Dam and Reservoir. 

SEC. 3. CONVEYANCE OF GAME AND FISH HEADQUARTERS TO THE STATE. 

(a) CONVEYANCE OF GAME AND FISH HEADQUARTERS.—Not later than 5 years after 

the date of enactment of this Act, the Secretary shall convey to the State all right, 

title, and interest of the United States in and to the game and fish headquarters, 

on the condition that the game and fish headquarters continue to be used as a game 

and fish headquarters or substantially similar purposes. 

(b) REVERSION.—If land conveyed under subsection (a) is used in a manner that 

is inconsistent with the requirements described in that subsection, the land shall, 

at the discretion of the Secretary, revert to the United States. 

SEC. 4. RESERVATIONS, EASEMENTS, AND OTHER OUTSTANDING RIGHTS. 

(a) IN GENERAL.—Each conveyance to the Board or the State pursuant to this Act 

shall be made subject to— 

(1) valid existing rights; 

(2) operational requirements of the Pick-Sloan Missouri River Basin Program, 

as authorized by section 9 of the Act of December 22, 1944 (commonly known 

as the ‘‘Flood Control Act of 1944’’) (58 Stat. 891, chapter 665), including the 

Jamestown Reservoir; 

(3) any flowage easement reserved by the United States to allow full operation of the Jamestown Reservoir for authorized purposes; 

(4) reservations described in the Management Agreement; 

(5) oil, gas, and other mineral rights reserved of record, as of the date of enactment of this Act, by, or in favor of, the United States or a third party; 

(6) any permit, license, lease, right-of-use, flowage easement, or right-of-way 

of record in, on, over, or across the applicable property or Federal land, whether 

owned by the United States or a third party, as of the date of enactment of this 

Act; 

(7) a deed restriction that prohibits building any new permanent structure on 

property below an elevation of 1,454 feet; and 

(8) the granting of applicable easements for— 

(A) vehicular access to the property; and 

(B) access to, and use of, all docks, boathouses, ramps, retaining walls, 

and other improvements for which access is provided in the permit for use 

of the property as of the date of enactment of this Act. 

(b) LIABILITY; TAKING.— 

(1) LIABILITY.—The United States shall not be liable for flood damage to a 

property subject to a permit, the Board, or the State, or for damages arising 

out of any act, omission, or occurrence relating to a permit holder, the Board, 

or the State, other than for damages caused by an act or omission of the United 

States or an employee, agent, or contractor of the United States before the date 

of enactment of this Act. 

(2) TAKING.—Any temporary flooding or flood damage to the property of a permit holder, the Board, or the State, shall not be considered to be a taking by 

the United States. 

SEC. 5. INTERIM REQUIREMENTS. 

During the period beginning on the date of enactment of this Act and ending on 

the date of conveyance of a property or parcel of land under this Act, the provisions 

of the Management Agreement that are applicable to the property or land, or to 

leases between the State and the Secretary, and any applicable permits, shall remain in force and effect. 

PURPOSE

The purpose of S. 2074 is to establish a procedure for the conveyance of certain Federal property around the Jamestown Reservoir 

in the State of North Dakota. 

BACKGROUND AND NEED

Jamestown Dam and Reservoir is a component of the Bureau of 

Reclamation’s (BOR) Garrison Diversion Unit in the State of North 

Dakota and was authorized by the Flood Control Act of 1944 (58 

Stat. 891) for the purposes of irrigation, municipal and industrial 

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water supply, flood control, and recreation. Federal lands were acquired to construct the project. Currently, the Dam and Reservoir 

services one water service contract for irrigation above the reservoir and periodic annual water service contracts. 

BOR lands surrounding Jamestown Reservoir include recreational lands, wildlife habitat, grazing and haying lands, and 71 

lots with permitted cabins. All of these Federal lands are managed 

by the Stutsman County Park (Board) under an agreement with 

the BOR and are not necessary to fulfill authorized project purposes. In addition, the North Dakota Game and Fish Department 

leases approximately six acres for use as a District Headquarters 

directly from the BOR. 

As part of its management of the BOR lands, the Board issues 

permits for the 71 cabin lots. Some of the permitees now use these 

cabins year-round as primary residences and have made improvements to cabin lots at their own expense. In order to have certainty 

about the management of these lands, to secure the ability to obtain financing for home purchases and improvements, and to address increasing permit fees, permittees would like to purchase the 

lots they currently occupy. Additionally, the North Dakota Fish and 

Game Department has expressed interest in assuming ownership of 

the lands they currently lease from BOR. 

LEGISLATIVE HISTORY

S. 2074 was introduced by Senator Hoeven on November 2, 2017. 

The Subcommittee on Water and Power held a hearing on S. 2074 

on February 28, 2018. 

The Committee on Energy and Natural Resources met in open 

business session on May 17, 2018, and ordered S. 2074 favorably 

reported, as amended. 

COMMITTEE RECOMMENDATION

The Senate Committee on Energy and Natural Resources, in 

open business session on May 17, 2018, by a majority voice vote of 

a quorum present recommends that the Senate pass S. 2074, if 

amended as described herein. 

COMMITTEE AMENDMENT

During its consideration of S. 2074, the Committee adopted an 

amendment in the nature of a substitute. The amendment authorizes the Secretary of the Interior (Secretary) to convey recreation 

land and permitted land to the Board, instead of providing the permittee of the property with the first option to purchase. The 

amendment also adds restrictions on the future uses of the property and makes numerous clarifications, technical corrections, and 

conforming changes. The amendment is further described in the 

section-by-section analysis. 

SECTION-BY-SECTION ANALYSIS

Section 1. Definitions 

Section 1 contains definitions applicable to the Act. 

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Section 2. Conveyances to Stutsman County Park Board 

Subsection (a) directs the Secretary to convey recreation and permitted cabin land surrounding the Jamestown Reservoir to the 

Board within five years of the Act’s enactment. The conveyances by 

the Secretary are to be made at no cost, but the Board is required 

to pay for survey and administrative-related costs. The Board is directed to manage conveyed recreation land for recreation and public purposes consistent with the Recreation and Public Purposes 

Act (43 U.S.C. 869 et seq.); public access; fish and wildlife habitat; 

or to preserve the land’s natural character. Additionally, if conveyed recreation land is authorized for haying and grazing by the 

Management Agreement as of the date of the Act’s enactment, the 

Board may continue to permit those activities. The Board is directed to manage conveyed permitted cabin lands for any of the 

specified recreation land management purposes or for cabins or recreational residences in existence as of the date of the Act’s enactment. 

Subsection (b) provides that the conveyed lands will revert to the 

United States, at the discretion of the Secretary, if they are used 

in a manner that is inconsistent with the Act’s authorized uses. 

Subsection (c) requires the Board to charge fair market value for 

the sale of any parcel of permitted cabin land, and specifies improvements made by the permitee shall not be included in the valuation. This subsection also requires the Board to pay the Secretary 

the amount of any sale proceeds that exceed the costs of preparing 

the sale. 

Subsection (d) makes any amount paid to the Secretary for conveyed land available to the Secretary, without further appropriation, for operation of the Jamestown Dam and Reservoir. 

Section 3. Conveyance of game and fish headquarters to the State 

Section 3 directs the Secretary to convey all right, title, and interested in the game and fish headquarters currently leased to the 

North Dakota Game and Fish Department to the State of North 

Dakota for continued use as a headquarters or substantially similar purposes, and provides the Secretary with a reversionary interest in the event the land is used in an inconsistent manner with 

these requirements. 

Section 4. Reservations, easements, and other outstanding rights 

Subsection (a) specifies that conveyances made pursuant to this 

Act are subject to valid existing rights; operational requirements of 

the Pick-Sloan Missouri River Basin Program, including the Jamestown Reservoir; reserved flowage easements; Management Agreement reservations; reserved oil, gas and other mineral rights; any 

existing permit, license, lease, right-of-use, flowage easement, or 

right-of-way; deed restrictions prohibiting any permanent structures below the reservoir elevation of 1,454 feet; and the granting 

of easements for access to the property and associated facilities. 

Subsection (b) shields the United States from liability for property damage, other than damages caused by an act or omission of 

the United States or an employee, agent, or contractor of the 

United States prior to the Act’s enactment. This subsection further 

states that any temporary flooding or flood damage to the property 

shall not be considered a taking by the United States. 

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Section 5. Interim requirements 

Section 5 applies the Management Agreement provisions as interim requirements during the time period starting from the date 

of the Act’s enactment and ending on the date of the land or property conveyance. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of the costs of this measure has been provided by the Congressional Budget Office: 

S. 2074 would direct the Bureau of Reclamation (BOR) to convey 

certain federal land and facilities located near the Jamestown Reservoir in North Dakota to the Stutsman County Park Board. After 

the property is conveyed, the board could sell the property to existing cabin permit holders, and the net proceeds of those transactions would be paid to the federal government. Those proceeds 

would be classified as offsetting receipts, which are treated as reductions in direct spending, and could subsequently be spent by 

BOR without further appropriation. 

Enacting S. 2074 would increase receipts and the associated direct spending; therefore, pay-as-you-go procedures apply. However, 

CBO estimates that the net effect on the budget would be negligible. Enacting S. 2074 would not affect revenues. 

Under S. 2074, BOR would convey specified federal property to 

the Stutsman County Park Board within 5 years after enactment. 

Using information from BOR, CBO estimates that 71 cabin permit 

holders would purchase lots from the board for an estimated 

$100,000 per lot. CBO estimates that the board would transfer the 

net proceeds of about $7 million to the federal government, and 

those offsetting receipts would be spent for annual operations costs 

and deferred maintenance projects at the Jamestown Dam and 

Reservoir in North Dakota. 

CBO estimates that enacting S. 2074 would not increase net direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2029. 

S. 2074 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

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

estimate was reviewed by Leo Lex, 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. 2074. 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. 2074, as ordered reported. 

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CONGRESSIONALLY DIRECTED SPENDING

S. 2074, 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 Department of the Interior at the 

February 28, 2018, hearing on S. 2074 follows: 

STATEMENT OF ALAN MIKKELSEN, SENIOR ADVISOR TO THE

SECRETARY FOR WATER AND WESTERN RESOURCE ISSUES, U.S. DEPARTMENT OF THE INTERIOR

Chairman Flake, Ranking Member King, and Members 

of the Subcommittee, I am Alan Mikkelsen, Senior Advisor 

to the Secretary of Interior for Water and Western Resource Issues, and former Deputy Commissioner of the Bureau of Reclamation (Reclamation). Thank you for the opportunity to provide the views of the Department of the Interior (Department) on S. 2074, a bill to establish a procedure for the conveyance of certain Federal property around 

the Jamestown Reservoir in the State of North Dakota. 

The intent of the legislation is to provide a path for current permitted cabin owners and the Stutsman County 

Park Board to take ownership of certain Federal lands, allowing flexible management of the lands to meet local 

needs and alleviate the Department’s administrative oversight and management of the land. 

Before I discuss the Department’s views on S. 2074, I 

wanted to reiterate that during the Secretary Zinke’s confirmation hearing, he stated to this Committee that he 

does not support the wide-scale sale or transfer of Federal 

lands. Reclamation has technical modifications to recommend to provide additional clarity and protections. We 

look forward to working with the sponsor and the Committee to ensure proposals of this nature preserve access 

and recreation for future generations to come. The Flood 

Control Act of 1944 authorized construction of Jamestown 

Dam and Reservoir (Project) as part of the Garrison Diversion Unit, Missouri-Souris Division, Pick-Sloan Missouri 

Basin Program. Federal lands were acquired for Project 

purposes which include municipal water supply, irrigation 

with flood control, and recreation benefits. The Project provided extensive flood control benefits for Jamestown and 

downstream areas. There are currently two water service 

contracts associated with the project, one with an individual and one with an irrigation district downstream of 

the reservoir. 

The current management agreement between Reclamation and Stutsman County Park Board for operation and 

maintenance of the majority of lands around the reservoir 

includes the area for 71 permitted exclusive use cabins— 

30 occupied year-round, and 41 occupied seasonally (approximately 73 acres), as well as additional lands dediVerDate Sep 11 2014 01:54 Aug 03, 2018 Jkt 079010 PO 00000 Frm 00007 Fmt 6659 Sfmt 6969 E:\HR\OC\SR314.XXX SR314
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cated to recreation and wildlife management (approximately 4,421 acres). In addition to lands managed by 

Stutsman County Park Board, Reclamation leases a 6-acre 

parcel to the North Dakota Game and Fish Department 

(NDG&F) for their Regional Headquarters. In 2013, Reclamation’s Dakotas Area Office (DKAO) requested a fair 

market appraisal of the rates for the exclusive use cabins 

be conducted pursuant to the Code of Federal Regulations 

related to Use of Bureau of Reclamation Land, Facilities, 

and Waterbodies (43 CFR 429). As required by Department policy, the appraisals were conducted by the Department of the Interior’s Office of Valuation Services for all 

reservoirs with exclusive use under the administration of 

DKAO, resulting in the need to raise rates at all areas to 

recover fair market value. The results of the appraisal 

were presented to the respective managing partners in 

2016. 

Title transfer can be an important tool to ensure that 

management of lands and other real property is carried 

out by the entities that are best equipped to most effectively manage such property. The Administration recently 

submitted a legislative proposal which would address this 

issue more comprehensively which would facilitate title 

transfer of certain Reclamation facilities to non-Federal 

entities when such transfers are beneficial. 

Section 1(b)(2)(A) of S. 2074 provides for the fair market 

value of a property to be determined by a local, third party 

appraiser, valuing the property as unimproved residential 

property, excluding all improvements. The Department believes that the property should be valued as-is, inclusive of 

improvements. The Department also recommends clarification of this language to ensure the cost for the third-party 

appraisal shall be the responsibility of the permittee(s). 

The permittees should also be made aware that a thirdparty appraisal would have to comply with federal appraisal standards and procedures as determined by the Office of Valuation Services. 

Section 1(c)(3) provides conveyance subject to reversion 

to the United States of non-recreation lands managed by 

the Board if no longer used for public access or recreation. 

As worded in S. 2074, this language warrants clarification 

to ensure the Department’s interpretation is consistent 

with the author’s intent. We suggest simply revising this 

language to state that the lands conveyed (other than 

those in the cabin permit area and the North Dakota State 

Game and Fish Department headquarters area) are to remain available for public use in the future, and if it is determined that these areas are no longer needed for public 

access or recreation, then the land is subject to reversion 

to the United States. Given the Secretary’s commitment to 

protecting public lands, the Department encourages what 

we believe is a shared intention for Stutsman County Park 

Board to continue to manage the parcels with recreational 

and public interests in mind. 

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Section 1(f) of S. 2074 provides that any revenues from 

a sale of Federal land pursuant to this section shall be 

made available to the Secretary, without further appropriation, for the costs to the Secretary of carrying out this 

section, and to conduct deferred maintenance activities relating to the dam in the Jamestown Reservoir. The Department believes that any such revenues should be remitted to the Reclamation fund. In addition, because revenues 

would not be generated until the properties are transferred 

to the permittee, as proposed in the bill, Reclamation 

would need appropriations to complete the surveys and appraisals and other pre-sale activities. In previous legislation to transfer cabin properties, as well as Reclamation’s 

process for Use Authorization requests, it is the responsibility of the permittees/requestor to pay for the required 

pre-sale work, including all administrative costs to convey 

Federal property to private individuals/beneficiaries rather 

than placing this burden on the United States. As written 

it appears the United States is responsible for the administrative costs and therefore in ‘‘net’’ it receives less than 

market value for the land. In accord with our prior recommendation to clarify that permittees/requestor pay for 

required pre-sale work, we recommend revising this section to clarify that revenues shall be remitted to the Reclamation fund. 

Section 1(d)(1) provides liability protection for flood damage to the property of a permittee, the Board, or the State 

arising out of any act, omission, or occurrence relating to 

a lot to which a permit applies. As worded, this language 

does not cover the liability for all property, depending on 

whether or not it is related to a lot. We suggest replacing 

the language ‘‘a lot to which a permit applies’’ with ‘‘the 

property of a permittee, the Board, or the State’’ in order 

to more clearly cover the liability to the United States. 

The Department would be happy to work with the sponsor and the Committee to revise the language based on 

these recommendations. In addition, we would urge enactment of the Department’s title transfer legislative proposal 

to address Reclamation title transfer. Our title transfer 

legislative proposal will streamline the title transfer process, potentially allowing appropriate transfers to take 

place without subsequent legislation. This concludes my 

written statement. I am pleased to answer questions at the 

appropriate time. 

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 as ordered reported. 

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