H. R. 706
One Hundred Seventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the twenty-third day of January, two thousand and two
An Act
To direct the Secretary of the Interior to convey certain properties in the vicinity
of the Elephant Butte Reservoir and the Caballo Reservoir, New Mexico.
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 ‘‘Lease Lot Conveyance Act of
2002’’.
SEC. 2. FINDINGS.
The Congress finds that the conveyance of the Properties to
the Lessees for fair market value would have the beneficial results
of—
(1) eliminating Federal payments in lieu of taxes and asso-
ciated management expenditures in connection with the
Government’s ownership of the Properties, while increasing
local tax revenues from the new owners;
(2) sustaining existing economic conditions in the vicinity
of the Properties, while providing the new owners of the Prop-
erties the security to invest in permanent structures and
improvements; and
(3) adding needed jobs to the county in which the Properties
are located and increasing revenue to the county and sur-
rounding communities through property and gross receipt taxes,
thereby increasing economic stability and a sustainable
economy in one of the poorest counties in New Mexico.
SEC. 3. DEFINITIONS.
In this Act:
(1) FAIR MARKET VALUE.—The term ‘‘fair market value’’
means, with respect to a parcel of property, the value of the
property determined—
(A) without regard to improvements constructed by
the Lessee of the property;
(B) by an appraisal in accordance with the Uniform
Standards for Federal Land Acquisitions; and
(C) by an appraiser approved by the Secretary and
the purchaser.
(2) IRRIGATION DISTRICTS.—The term ‘‘Irrigation Districts’’
means the Elephant Butte Irrigation District and the El Paso
County Water Improvement District No. 1.
(3) LESSEE.—The term ‘‘Lessee’’ means the leaseholder of
a Property on the date of enactment of this Act, and any
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heir, executor, or assign of the leaseholder with respect to
that leasehold interest.
(4) PROPERTY.—The term ‘‘Property’’ means any of the cabin
sites comprising the Properties.
(5) PROPERTIES.—The term ‘‘Properties’’ means all the real
property comprising 403 cabin sites under the administrative
jurisdiction of the Bureau of Reclamation that are located along
the western portion of the reservoirs in Elephant Butte State
Park and Caballo State Park, New Mexico, including ease-
ments, roads, and other appurtenances. The exact acreage and
legal description of such real property shall be determined
by the Secretary after consulting with the Purchaser.
(6) PURCHASER.—The term ‘‘Purchaser’’ means the Ele-
phant Butte/Caballo Leaseholders Association, Inc., a nonprofit
corporation established under the laws of New Mexico.
(7) RESERVOIRS.—The term ‘‘reservoirs’’ means the Ele-
phant Butte Reservoir and the Caballo Reservoir in the State
of New Mexico.
(8) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior.
SEC. 4. CONVEYANCE OF PROPERTIES.
(a) IN GENERAL.—The Secretary shall convey to the Purchaser
in accordance with this Act, subject to valid existing rights, all
right, title, and interest of the United States in and to the Properties
and all appurtenances thereto, including specifically easements
for—
(1) vehicular access to each Property;
(2) drainage; and
(3) access to and the use of all ramps, retaining walls,
and other improvements for which access is provided under
the leases that apply to the Properties as of the date of the
enactment of this Act.
(b) CONSIDERATION.—As consideration for any conveyance
under this section, the Secretary shall require the Purchaser to
pay to the United States fair market value of the Properties.
SEC. 5. TERMS OF CONVEYANCE.
(a) SPECIFIC CONDITIONS.—As conditions of any conveyance
to the Purchaser under this Act, the Secretary shall require the
following:
(1) LEASEHOLDERS’ OPTION.—The Purchaser shall grant to
each Lessee of a Property an option—
(A) to purchase the Property at fair market value;
or
(B) to continue leasing the Property on terms to be
negotiated with the Purchaser.
(2) ADMINISTRATIVE COSTS.—Any reasonable administrative
cost incurred by the Secretary incident to the conveyance under
section 6 shall be reimbursed by the Purchaser.
(b) RESTRICTIVE USE COVENANT.—
(1) IN GENERAL.—To maintain the unique character of the
area in the vicinity of the Reservoirs, the Secretary shall estab-
lish, by the terms of conveyance, use restrictions to carry out
paragraph (2) that—
(A) are appurtenant to, and run with, each Property;
and
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(B) are binding upon each subsequent owner of each
Property.
(2) ACCESS TO RESERVOIRS.—The use restrictions required
by paragraph (1) shall ensure that—
(A) public access to and along the shoreline of the
Reservoirs in existence on the date of enactment of this
Act is not obstructed;
(B) adequate public access to and along the shoreline
of the Reservoirs is maintained; and
(C) the operation of the Reservoirs by the Secretary
or the Irrigation Districts shall not result in liability of
the United States or the Irrigation Districts for damages
incurred, as a direct or indirect result of such operation,
by the owner of any Property conveyed under this Act,
including—
(i) damages for any loss of use or enjoyment of
a Property; and
(ii) damages resulting from any modifications or
construction of any reservoir dam.
(c) TIMING.—
(1) IN GENERAL.—The Secretary shall convey the Properties
under this Act as soon as practicable after the date of enactment
of this Act and in accordance with all applicable law.
(2) REPORT.—If the Secretary has not completed conveyance
of the Properties to the Purchaser by the end of the 1-year
period beginning on the date of the enactment of this Act,
the Secretary shall, before the end of that period, submit a
report to the Congress explaining the reasons that conveyance
has not been completed and stating the date by which the
conveyance will be completed.
(d) REIMBURSEMENT
OF PURCHASER’S COSTS.—The terms of
conveyance shall authorize the Purchaser to require each Lessee
to reimburse the Purchaser for a proportionate share of the costs
incurred by the Purchaser in completing the transactions pursuant
to this Act, including any interest charges.
SEC. 6. RESOLUTION OF CLAIMS AND DISPUTES.
After conveyance of the Properties to the Purchaser, if any
Lessee has a dispute with or claim against the Purchaser or any
of its officers, directors, or members arising from the Properties,
the Lessee shall promptly give written notice of the dispute or
claim to the Purchaser. If such notice is not provided to the Pur-
chaser within 20 days after the date the Lessee knew or should
have known of such dispute or claim, then any right of the Lessee
for relief based on such dispute or claim shall be waived. If the
Lessee and the Purchaser are unable to resolve the dispute or
claim by mediation, the dispute or claim shall be resolved by binding
arbitration.
SEC. 7. FEDERAL RECLAMATION LAW.
No conveyance under this Act shall restrict or limit the
authority or ability of the Secretary to fulfill the duties of the
Secretary under the Act of June 17, 1902 (32 Stat. 388, chapter
H. R. 706—4
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.