II

Calendar No. 709

106TH CONGRESS

2D SESSION S. 1474

[Report No. 106–358]

Providing for conyenance of the Palmetto Bend project to the State of

Texas.

IN THE SENATE OF THE UNITED STATES

AUGUST 2, 1999

Mrs. HUTCHISON introduced the following bill; which was read twice and

referred to the Committee on Energy and Natural Resources

JULY 24, 2000

Reported by Mr. MURKOWSKI, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

Providing for conyenance of the Palmetto Bend project to

the State of Texas.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Palmetto Bend Con5 veyance Act’’.
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1 SEC. 2. DEFINITIONS.

2 In this Act:

3 (1) PROJECT.—The term ‘‘Project’’ means the

4 Palmetto Bend Reclamation Project in the State of

5 Texas authorized under Public Law 90–562 (82

6 Stat. 999).

7 (2) SECRETARY.—The term ‘‘Secretary’’ means

8 the Secretary of the Interior.

9 (3) STATE.—The term ‘‘State’’ means the State

10 of Texas, acting through the Texas Water Develop11 ment Board and/or the Lavaca-Navidad River Au12 thority, or both.

13 SEC. 3. CONVEYANCE.

14 On receipt of payment in accordance with section

15 5(a), the Secretary shall convey to the State the title and

16 all rights and interests (excluding the mineral estate) in

17 and to the Project held by the United States.

18 SEC. 4. COMPLETION OF CONVEYANCE.

19 (a) IN GENERAL.—The Secretary shall expeditiously

20 complete the conveyance under section 3 including such

21 actions as may be required under the National Environ22 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

23 (b) REPORT.—If the conveyance under section 3 is

24 completed later than 1 year and 180 days after the date

25 of enactment of this Act, the Secretary shall submit to

26 the Committee on Resources of the House of Representa-
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1 tives and the Committee on Energy and Natural Re2 sources of the Senate a report that describes—

3 (1) the status of the conveyance;

4 (2) any obstacles to completion of the convey5 ance; and

6 (3) the anticipated date for completion of the

7 conveyance.

8 SEC. 5. PAYMENT.

9 (a) IN GENERAL.—As a condition of the conveyance

10 under section 3, the State shall pay to the Secretary

11 $48,000,000.

12 (b) OBLIGATION EXTINGUISHED.—On payment by

13 the State under subsection (a), the obligation of the State

14 under the Bureau of Reclamation contract numbered 14–

15 06–500–1880, as amended, shall be extinguished.

16 (c) ADDITIONAL COSTS.—In addition to the payment

17 under subsection (a), as a condition of conveyance, the

18 State shall bear the cost of all boundary surveys, title

19 searches, appraisals, and other transaction costs for the

20 conveyance.

21 (d) FINANCING.—Nothing in this Act shall be con22 strued to affect the right of the State to use a particular

23 type of financing.

24 (e) RECLAMATION FUND.—All funds paid by the

25 State to the Secretary under this section shall be credited
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1 to the Reclamation Fund in the Treasury of the United

2 States.

3 SEC. 6. FUTURE MANAGEMENT.

4 (a) IN GENERAL.—As a condition of the conveyance

5 under section 3, the land, water, facilities, and mineral

6 estate of the Project shall continue to be managed by the

7 State and operated for the purposes for which the Project

8 was originally authorized, based on current use and his9 toric operation, to ensure the implementation of fish, wild10 life, and recreational activities.

11 (b) EXISTING OBLIGATIONS.—As a condition of the

12 conveyance under section 3, the State shall assume all ob13 ligations of the United States associated with the Project

14 existing on the date of the conveyance, including obliga15 tions under contracts, for recreation, fish and wildlife,

16 easements, and any permits or license agreements.

17 SEC. 7. MINERAL DEVELOPMENT.

18 (a) IN GENERAL.—All mineral interests in the

19 Project retained by the United States on completion of

20 the conveyance under section 3 shall be subject to contin21 ued use by the State for the purposes for which the

22 Project was authorized, including—

23 (1) maintenance of the municipal and industrial

24 water supply;

25 (2) recreation; and
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1 (3) fish and wildlife activities.

2 (b) SURFACE ESTATE.—The surface estate of the

3 Project may be used for exploration, development, or pro4 duction of oil, gas, or minerals only on approval by the

5 State.

6 SEC. 8. LIABILITY.

7 (a) IN GENERAL.—Effective on the date of convey8 ance of the Project, except as relates to retained mineral

9 interests, the United States shall not be liable for damages

10 of any kind arising out of any act, omission, or occurrence

11 with respect to the Project, except for damages caused by

12 acts of negligence committed prior to the date of convey13 ance by—

14 (1) the United States; or

15 (2) an employee, agent, or contractor of the

16 United States.

17 (b) NO INCREASE LIABILITY.—Nothing in this sec18 tion increases the liability of the United States beyond

19 that provided for in chapter 171 of title 28, United States

20 Code.

21 SEC. 9. FUTURE BENEFITS.

22 (a) DEAUTHORIZATION.—Effective on the date of

23 conveyance of the Project, the Project conveyance under

24 this Act shall be deauthorized.
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1 (b) NO RECLAMATION BENEFITS.—After deauthor2 ization of the Project under subsection (a), the State shall

3 not be entitled to receive any benefits under Federal rec4 lamation law (the Act of June 17, 1902 (32 Stat. 388,

5 chapter 1093), and Acts supplemental to and amendatory

6 of that Act (43 U.S.C. 371 et seq.)).

7 SECTION 1. SHORT TITLE.

8 This Act may be cited as the ‘‘Palmetto Bend Convey9 ance Act’’.

10 SEC. 2. DEFINITIONS.

11 In this Act:

12 (1) PROJECT.—the term ‘‘Project’’ means the

13 Palmetto Bend Reclamation Project in the State of

14 Texas authorized under Public Law 90–562 (82 Stat.

15 999).

16 (2) SECRETARY.—The term ‘‘Secretary’’ means

17 the Secretary of the Interior.

18 (3) STATE.—The term ‘‘State’’ means the State

19 of Texas, acting through the Texas Water Develop20 ment Board or the Lavaca-Navidad River Authority

21 or both.

22 SEC. 3. CONVEYANCE.

23 (a) IN GENERAL.—The Secretary shall, as soon as

24 practicable after the date of enactment of this Act and in

25 accordance with all applicable law, and subject to the condi-
7

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1 tions set forth in sections 4 and 5, convey to the State all

2 right, title and interest (excluding the mineral estate) in

3 and to the Project held by the United States.

4 (b) REPORT.—If the conveyance under Section 3 has

5 not been completed within 1 year and 180 days after the

6 date of enactment of this Act, the Secretary shall submit

7 to the Committee on Resources of the House of Representa8 tives and the Committee on Energy and Natural Resources

9 of the Senate a report that describes—

10 (1) the status of the conveyance;

11 (2) any obstacles to completion of the convey12 ance; and

13 (3) the anticipated date for completion of the

14 conveyance.

15 SEC. 4. PAYMENT.

16 (a) IN GENERAL.—As a condition of the conveyance,

17 the State shall pay the Secretary the adjusted net present

18 value of current repayment obligations on the Project, cal19 culated 30 days prior to closing using a discount rate equal

20 to the average interest rate on 30-year U.S. Treasury notes

21 during the proceeding calendar month, which following ap22 plication of the State’s August 1, 1999 payment, is cur23 rently calculated to be $45,082,675 using a discount rate

24 of 6.070%. The State shall also pay interest on the adjusted

25 net present value of current repayment obligations from the
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1 date of State’s most recent annual payment until closing

2 at the interest rate for constant maturity U.S. Treasury

3 notes of an equivalent term.

4 (b) OBLIGATION EXTINGUISHED.—Upon payment by

5 the State under subsection (a), the obligation of the State

6 and the Bureau of Reclamation under the Bureau of Rec7 lamation Contract No. 14–06–500–1880, as amended shall

8 be extinguished. After completion of conveyance provided for

9 in Section 3, the State shall assume full responsibility for

10 all aspects of operation, maintenance and replacement of

11 the Project.

12 (c) ADDITIONAL COSTS.—The State shall bear the cost

13 of all boundary surveys, title searches, appraisals, and other

14 transaction costs for the conveyance.

15 (d) RECLAMATION FUND.—All funds paid by the State

16 to the Secretary under this section shall be credited to the

17 Reclamation Fund in the Treasury of the United States.

18 SEC. 5. FUTURE MANAGEMENT.

19 (a) IN GENERAL.—As a condition of the conveyance

20 under section 3, the State shall agree that the lands, water,

21 and facilities of the Project shall continue to be managed

22 and operated for the purposes for which the Project was

23 originally authorized; that is, to provide a dependable mu24 nicipal and industrial water supply, to conserve and de25 velop fish and wildlife resources, and to enhance rec-
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1 reational opportunities. In future management of the

2 Project, the State shall, consistent with other project pur3 poses and the provision of dependable municipal and indus4 trial water supply:

5 (1) provide full public access to the Project’s

6 lands, subject to reasonable restrictions for purposes of

7 Project security, public safety, and natural resource

8 protection;

9 (2) not sell or otherwise dispose of the lands con10 veyed under Section 3;

11 (3) prohibit private or exclusive uses of lands

12 conveyed under Section 3;

13 (4) maintain and manage the Project’s fish and

14 wildlife resource and habitat for the benefit and en15 hancement of those resources;

16 (5) maintain and manage the Project’s existing

17 recreational facilities and assets, including open

18 space, for the benefit of the general public;

19 (6) not charge the public recreational use fees

20 that are more than is customary and reasonable.

21 (b) FISH, WILDLIFE, AND RECREATION MANAGE22 MENT.—As a condition of conveyance under Section 3,

23 management decisions and actions affecting the public as24 pects of the Project (namely, fish, wildlife, and recreation

25 resources) shall be conducted according to a management
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1 agreement between all recipients of title to the Project and

2 the Texas Parks and Wildlife Department and shall extend

3 for the useful life of the Project that has been approved by

4 the Secretary.

5 (c) EXISTING OBLIGATIONS.—The United States shall

6 assign to the State and the State shall accept all surface

7 use obligations of the United States associated with the

8 Project existing on the date of the conveyance including con9 tracts, easements, and any permits or license agreements.

10 SEC. 6. MANAGEMENT OF MINERAL ESTATE.

11 All mineral interests in the Project retained by the

12 United States shall be managed consistent with Federal

13 Law and in a manner that will not interfere with the pur14 poses for which the Project was authorized.

15 SEC. 7. LIABILITY.

16 (a) IN GENERAL.—Effective on the date of conveyance

17 of the Project, the United States shall be liable for damages

18 of any kind arising out of any act, omission, or occurrence

19 relating to the Project, except for damages caused by acts

20 of negligence committed prior to the date of conveyance

21 by—

22 (1) the United States; or

23 (2) an employee, agent, or contractor of the

24 United States.
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1 (b) NO INCREASE IN LIABILITY.—Nothing in this Act

2 increases the liability of the United States beyond that pro3 vided for in the Federal Tort Claims Act, (28 U.S.C. 2671

4 et seq.).

5 SEC. 8. FUTURE BENEFITS.

6 (a) DEAUTHORIZATION.—Effective on the date of con7 veyance of the Project, the Project conveyed under this Act

8 shall be deauthorized.

9 (b) NO RECLAMATION BENEFITS.—Afte deauthoriza10 tion of the Project under subsection (a), the State shall not

11 be entitled to receive any benefits for the Project under Fed12 eral reclamation law (the Act of June 17, 1902 (32 Stat.

13 388, chapter 1093), and Acts supplemental to and amend14 atory of that Act (43 U.S.C. 371 et seq.).
Calendar No. 709

106TH CONGRESS

2D SESSION S. 1474

[Report No. 106–358]

A BILL

Providing for conveyance of the Palmetto Bend

project to the State of Texas.

JULY 24, 2000

Reported with an amendment