S. 2205

One Hundred Ninth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the third day of January, two thousand and six

An Act

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,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Blunt Reservoir and Pierre

Canal Land Conveyance Act of 2006’’.

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—
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(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 term of each conveyance under

subsections (d)(5) and (e), respectively, the State may 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 rightof-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),
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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 Secretary or 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 one 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) ten 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 less 25 percent, 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 offer to 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
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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 offer to 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’’).
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(g) REQUIREMENTS CONCERNING CONVEYANCE OF LEASE PAR- CELS.— (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 the enactment of this Act, the

Secretary, in consultation with the Commission, 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) CURATION OF ARCHEOLOGICAL COLLECTIONS.—The Secretary, in consultation with the State, shall transfer, without cost

to the State, all archeological and cultural resource items collected

from the Blunt Reservoir feature and Pierre Canal feature to the

South Dakota State Historical Society.

(i) 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 and

the State Department of Game, Fish, and Parks for expenses

incurred implementing this Act, not to exceed 10 percent of the

cost of each transaction conducted under this Act.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.