S. 1474

One Hundred Sixth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Monday,

the twenty-fourth day of January, two thousand

An Act

Providing for conveyance of the Palmetto Bend project to the State of Texas.

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 ‘‘Palmetto Bend Conveyance

Act’’.

SEC. 2. DEFINITIONS.

In this Act:

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

Reclamation Project in the State of Texas authorized under

Public Law 90–562 (82 Stat. 999).

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

of the Interior.

(3) STATE.—The term ‘‘State’’ means the State of Texas,

acting through the Texas Water Development Board or the

Lavaca-Navidad River Authority or both.

SEC. 3. CONVEYANCE.

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

after the date of enactment of this Act and in accordance with

all applicable law, and subject to the conditions set forth in sections

4 and 5, convey to the State all right, title and interest (excluding

the mineral estate) in and to the Project held by the United States.

(b) REPORT.—If the conveyance under section 3 has not been

completed within 1 year and 180 days after the date of enactment

of this Act, the Secretary shall submit to the Committee on

Resources of the House of Representatives and the Committee on

Energy and Natural Resources of the Senate a report that

describes—

(1) the status of the conveyance;

(2) any obstacles to completion of the conveyance; and

(3) the anticipated date for completion of the conveyance.

SEC. 4. PAYMENT.

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

shall pay the Secretary the adjusted net present value of current

repayment obligations on the Project, calculated 30 days prior to

closing using a discount rate equal to the average interest rate

on 30-year United States Treasury notes during the preceding calendar month, which following application of the State’s August

1, 1999 payment, was, as of October 1999, calculated to be

$45,082,675 using a discount rate of 6.070 percent. The State shall
S. 1474—2

also pay interest on the adjusted net present value of current

repayment obligations from the date of the State’s most recent

annual payment until closing at the interest rate for constant

maturity United States Treasury notes of an equivalent term.

(b) OBLIGATION EXTINGUISHED.—Upon payment by the State

under subsection (a), the obligation of the State and the Bureau

of Reclamation under the Bureau of Reclamation Contract No.

14–06–500–1880, as amended shall be extinguished. After completion of conveyance provided for in section 3, the State shall assume

full responsibility for all aspects of operation, maintenance and

replacement of the Project.

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

boundary surveys, title searches, appraisals, and other transaction

costs for the conveyance.

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

Secretary under this section shall be credited to the Reclamation

Fund in the Treasury of the United States.

SEC. 5. FUTURE MANAGEMENT.

(a) IN GENERAL.—As a condition of the conveyance under section 3, the State shall agree that the lands, water, and facilities

of the Project shall continue to be managed and operated for the

purposes for which the Project was originally authorized; that is,

to provide a dependable municipal and industrial water supply,

to conserve and develop fish and wildlife resources, and to enhance

recreational opportunities. In future management of the Project,

the State shall, consistent with other project purposes and the

provision of dependable municipal and industrial water supply—

(1) provide full public access to the Project’s lands, subject

to reasonable restrictions for purposes of Project security, public

safety, and natural resource protection;

(2) not sell or otherwise dispose of the lands conveyed

under section 3;

(3) prohibit private or exclusive uses of lands conveyed

under section 3;

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

resource and habitat for the benefit and enhancement of those

resources;

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

facilities and assets, including open space, for the benefit of

the general public;

(6) not charge the public recreational use fees that are

more than is customary and reasonable.

(b) FISH, WILDLIFE, AND RECREATION MANAGEMENT.—As a

condition of conveyance under section 3, management decisions

and actions affecting the public aspects of the Project (namely,

fish, wildlife, and recreation resources) shall be conducted according

to a management agreement between all recipients of title to the

Project and the Texas Parks and Wildlife Department that has

been approved by the Secretary and shall extend for the useful

life of the Project.

(c) EXISTING OBLIGATIONS.—The United States shall assign to

the State and the State shall accept all surface use obligations

of the United States associated with the Project existing on the

date of the conveyance including contracts, easements, and any

permits or license agreements.
S. 1474—3

SEC. 6. MANAGEMENT OF MINERAL ESTATE.

All mineral interests in the Project retained by the United

States shall be managed consistent with Federal law and in a

manner that will not interfere with the purposes for which the

Project was authorized.

SEC. 7. LIABILITY.

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

Project, the United States shall not be liable for damages of any

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

the Project, except for damages caused by acts of negligence committed prior to the date of conveyance by—

(1) the United States; or

(2) an employee, agent, or contractor of the United States.

(b) NO INCREASE IN LIABILITY.—Nothing in this Act increases

the liability of the United States beyond that provided for in the

Federal Tort Claims Act (28 U.S.C. 2671 et seq.).

SEC. 8. FUTURE BENEFITS.

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

the Project, the Project conveyed under this Act shall be deauthorized.

(b) NO RECLAMATION BENEFITS.—After deauthorization of the

Project under subsection (a), the State shall not be entitled to

receive any benefits for the Project under Federal reclamation law

(the Act of June 17, 1902 (32 Stat. 388, chapter 1093)), and Acts

supplemental to and amendatory of that Act (43 U.S.C. 371 et

seq.).

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.