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ingress and egress on existing access
routes to and along the Southside Canal,
and
(ii) a nonexclusive easement for the
operation, use, maintenance, repair, and
replacement of the Southside Canal, sub-
ject to the requirement that the districts
shall provide reasonable notice to and the
opportunity for consultation with the des-
ignated representative of the Secretary of
the Interior for nonroutine, nonemergency
activities that occur on such easements.
(2) RESERVATION.—The transfer of rights and
interests pursuant to paragraphs (1) (A), (B), and
(C) shall reserve to the United States all minerals,
including hydrocarbons, and a perpetual right of
public access over, across, under, and to the portions
of the project which on the date of enactment of this
Act were open to public use for fishing, boating,
hunting, and other outdoor recreation purposes and
other public uses such as grazing, mineral develop-
ment, and logging: Provided, That the United States
may allow for continued public use and enjoyment of
such portions of the project for recreational activities
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and other public uses conducted as of the date of en-
actment of this Act.
(3) CONVEYANCE TO STATE OF COLORADO.—
All right, title, and interest in the Vega Recreation
Facilities shall remain in the United States until the
terms of the agreements referred to in paragraph
(6) have been fulfilled by the United States. At such
time, all right, title, and interest in the Vega Recre-
ation Facilities shall be conveyed by the Secretary of
the Interior to the State of Colorado, Division of
Parks and Outdoor Recreation.
(4) PAYMENT.—
(A) IN GENERAL.—At the time of transfer,
the districts shall pay to the United States
$12,900,000 ($12,300,000 of which represents
the net present value of the outstanding repay-
ment obligations for the project), of which—
(i) $12,300,000 shall be deposited in
the general fund of the United States
Treasury; and
(ii) $600,000 shall be deposited in a
special account in the United States Treas-
ury and shall be available to the United
States Fish and Wildlife Service, region 6,
without further appropriation, for use in
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funding Colorado operations and capital
expenditures associated with the Grand
Valley Water Management Project for the
purpose of recovering endangered fish in
the Upper Colorado River Basin, as identi-
fied in the Recovery Implementation Pro-
gram for Endangered Fish Species in the
Upper Colorado River Basin, or such other
component of the Recovery Implementation
Program within Colorado that is selected
with the concurrence of the Governor of
the State of Colorado.
(B) SOURCE OF FUNDS.—Funds for the
payment to the extent of the amount specified
in subparagraph (A) shall not be derived from
the issuance or sale, prior to the conveyance, of
State or local bonds the interest on which is ex-
empt from taxation under section 103 of the In-
ternal Revenue Code of 1986.
(5) OPERATION OF PROJECT.—
(A) IN
GENERAL.—The project was au-
thorized and constructed to place water to bene-
ficial use for authorized purposes within the
State of Colorado. The project shall be operated
and used by the districts for a period of 40
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years after the date of enactment of this Act
for the purposes for which the project was au-
thorized under the Act of July 3, 1952 (66
Stat. 325, chapter 565). The districts shall at-
tempt to the extent practicable, taking into con-
sideration historic project operations, to notify
the State of Colorado of changes in historic
project operations which may adversely affect
State park operations.
(B) REQUIREMENTS.—During the 40-year
period described in subparagraph (A)—
(i) the districts shall annually submit
to the Secretary of Agriculture and the
Colorado Department of Natural Re-
sources a plan for operation of the project,
which plan shall—
(I) report on project operations
for the previous year;
(II) provide a description of the
manner of project operations antici-
pated for the forthcoming year, which
shall be prepared after consultation
with the designated representatives of
the Secretary of Agriculture, the
Board of County Commissioners of
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Mesa County, Colorado, and the Colo-
rado Department of Natural Re-
sources; and
(III) certify that the districts
have operated and will operate and
maintain the project facilities in ac-
cordance with sound engineering prac-
tices; and
(ii) subject to subsection (d), all elec-
tric power generated by operation of the
project shall be made available to and be
marketed by the Western Area Power Ad-
ministration (including its successors or
assigns).
(6) AGREEMENTS.—Conveyance of the project
shall be subject to the agreements between the
United States and the State of Colorado dated Au-
gust 22, 1994, and September 23, 1994, relating to
the construction and operation of recreational facili-
ties at Vega Reservoir, which agreements shall con-
tinue to be performed by the parties thereto accord-
ing to the terms of the agreements.
(d) OPERATION OF THE POWER COMPONENT.—
(1) CONFORMITY TO HISTORIC OPERATIONS.—
The power component and facilities of the project
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shall be operated in substantial conformity with the
historic operations of the power component and fa-
cilities (including recent operations in a peaking
mode).
(2) POWER MARKETING.—
(A) 
EXISTING
MARKETING
ARRANGE-
MENT.—The 
post-1989 
marketing 
criteria,
which provide for the marketing of power gen-
erated by the power component of the project
as part of the output of the Salt Lake City area
integrated projects, shall no longer be binding
on the project upon conveyance of the project
under subsection (c)(1).
(B) AFTER
TERMINATION
OF
EXISTING
MARKETING ARRANGEMENT.—
(i) IN
GENERAL.—After the convey-
ance, the districts shall offer all power pro-
duced by the power component of the
project to the Western Area Power Admin-
istration or its successors or assigns (re-
ferred to in this section as ‘‘Western’’),
which, in consultation with its affected
preference customers, shall have the first
right to purchase such power at the rates
established in accordance with clause (ii).