IB
Union Calendar No. 490
106TH CONGRESS
2D SESSION
H. R. 2674
[Report No. 106–832]
Providing for conveyance of the Palmetto Bend project to the State of Texas.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 1999
Mr. PAUL introduced the following bill; which was referred to the Committee
on Resources
SEPTEMBER 7, 2000
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on August 2, 1999]
A BILL
Providing for conveyance of the Palmetto Bend project to
the State of Texas.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Palmetto Bend Convey-
ance 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 Texas
Water Development Board and Lavaca-Navidad
River Authority jointly, unless Lavaca-Navidad River
Authority has acquired the interests of the Texas
Water Development Board prior to the time of title
transfer, in which case ‘‘State’’ shall mean Lavaca-
Navidad River Authority.
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 condi-
tions 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 Representa-
tives 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 convey-
ance; 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, cal-
culated 30 days prior to closing using a discount rate equal
to the average interest rate on 30-year United States Treas-
ury notes during the preceding calendar month, which fol-
lowing application of the State’s August 1, 1999, payment,
is currently calculated to be $45,082,675 using a discount
rate of 6.070 percent. The State shall also pay interest on
the adjusted net present value of current repayment obliga-
tions from the date of 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 Rec-
lamation 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 mu-
nicipal and industrial water supply, to conserve and de-
velop fish and wildlife resources, and to enhance rec-
reational opportunities. The State’s agreement shall be re-
flected in the management agreement required by subsection
(b) of this section.
(b) FISH, WILDLIFE, AND RECREATION MANAGE-
MENT.—As a condition of conveyance under section 3, man-
agement decisions and actions affecting the public aspects
of the Project (namely, fish, wildlife, and recreation re-