SEC. 2. DEFINITIONS.
For purposes of this Act:
(1) The term ‘‘District’’ means the Carlsbad Ir-
rigation District, a quasimunicipal corporation
formed under the laws of the State of New Mexico
that has its principal place of business in the city of
Carlsbad, Eddy County, New Mexico.
(2) The term ‘‘Secretary’’ means the Secretary
of the Interior.
(3) The term ‘‘Project’’ means all right, title,
and interest in and to the lands (including the sub-
surface and mineral estate) in Eddy County, New
Mexico, described as the acquired lands in section
(7) of the Status of Lands and Title Report: Carls-
bad Project as reported by the Bureau of Reclama-
tion in 1978 and all interests the United States
holds in the irrigation and drainage system of the
Carlsbad Project and all related ditch rider houses,
maintenance shop and buildings, and Pecos River
Flume.
SEC. 3. CONVEYANCE OF PROJECT.
(a) IN GENERAL.—Except as provided in subsection
(b), in consideration of the District accepting the obliga-
tions of the Federal Government for the Project, and sub-
ject to the completion of payments by the District required
under subsection (c)(3), the Secretary shall convey the
Project to the District.
(b) RETAINED TITLE.—The Secretary shall retain
title to the surface estate (but not the mineral estate) of
such Project lands which are located under the footprint
of Brantley and Avalon dams or any other Project dam
or reservoir diversion structure. The Secretary shall retain
storage and flow easements for any tracts located under
the maximum spillway elevations of Avalon and Brantley
Reservoirs.
(c) DEADLINE.—
(1) IN GENERAL.—If no changes in Project op-
erations are expected following the conveyance under
subsection (a), the Secretary shall complete the con-
veyance expeditiously, but not later than 180 days
after the date of the enactment of this Act.
(2) DEADLINE IF CHANGES IN OPERATIONS IN-
TENDED.—If the District intends to change Project
operations as a result of the conveyance under sub-
section (a), the Secretary—
(A) shall take into account those potential
changes for the purpose of completing any re-
quired environmental evaluation associated with
the conveyance; and
(B) shall complete the conveyance by not
later than 2 years after the date of the enact-
ment of this Act.
(3) 
ADMINISTRATIVE
COSTS
OF
CONVEY-
ANCE.—If the Secretary fails to complete the con-
veyance under this Act before the applicable deadline
under paragraph (1) or (2), the full cost of adminis-
trative action and environmental compliance for the
conveyance shall be borne by the Secretary. If the
Secretary completes the conveyance before that
deadline, 1⁄2 of such cost shall be paid by the Dis-
trict.
SEC. 4. RELATIONSHIP TO EXISTING OPERATIONS.
(a) IN GENERAL.—Nothing in this Act shall be con-
strued as significantly expanding or otherwise changing
the use and operation of the Project from its current use.
The Project shall continue to be managed and used by
the District for the purposes for which the Project was
authorized, based on historic operations, and consistent
with the management of other adjacent project lands.
(b) FUTURE ALTERATIONS.—If the District alters
the operations or uses of the Project, it shall comply with
all applicable laws or regulations governing such changes
at that time (subject to section 5).
SEC. 5. RELATIONSHIP TO CERTAIN CONTRACT OBLIGA-
TIONS.
(a) IN GENERAL.—Except as provided in subsection
(b), upon conveyance of the Project under this Act the
District shall assume all rights and obligations of the
United States under the agreement dated July 28, 1994,
between the United States and the Director, New Mexico
Department of Game and Fish (Document No. 2–LM–40–
00640), relating to management of certain lands near
Brantley Reservoir for fish and wildlife purposes and the
agreement dated March 9, 1977, between the United
States and the New Mexico Department of Energy, Min-
erals, and Natural Resources (Contract No. 7–07–57–
X0888) for the management and operation of Brantley
Lake State Park.
(b) LIMITATION.—The District shall not be obligated
for any financial support agreed to by the Secretary, or
the Secretary’s designee, in either agreement and the Dis-
trict shall not be entitled to any receipts or revenues gen-
erated as a result of either agreement.
SEC. 6. LEASE MANAGEMENT AND PAST REVENUES COL-
LECTED FROM THE ACQUIRED LANDS.
(a) NOTIFICATION OF LEASEHOLDERS.—Within 120
days after the date of enactment of this Act, the Secretary
shall provide to the District a written identification of all
mineral and grazing leases in effect on Project lands on
the date of enactment of this Act and notify all lease-
holders of the conveyance authorized by this Act.
(b) MANAGEMENT OF LEASES, LICENSES, AND PER-
MITS.—The District shall assume all rights and obliga-
tions of the United States for all mineral and grazing
leases, licenses, and permits existing on the Project lands
conveyed under section 3, and shall be entitled to any re-
ceipts from such leases, licenses, and permits accruing
after the date of conveyance. All such receipts shall be
used for purposes for which the Project was authorized
and for financing the portion of operations, maintenance,
and replacement at the Sumner Dam that, prior to convey-
ance, was the responsibility of the Bureau of Reclamation,
with the exception of major maintenance programs in
progress prior to conveyance. The District shall continue
to adhere to the current Bureau of Reclamation mineral
leasing stipulations for the Project.
(c) AVAILABILITY OF AMOUNTS PAID INTO THE REC-
LAMATION FUND.—
(1) AMOUNTS IN FUND ON DATE OF ENACT-
MENT.—Amounts in the reclamation fund on the
date of enactment of this Act which exist as con-
struction credits to the Carlsbad Project under the
terms of the Mineral Leasing Act for Acquired
Lands (30 U.S.C. 351–359) shall be deposited into
the general fund of the Treasury and credited to
deficit reduction or retirement of the Federal debt.
(2) RECEIPTS AFTER DATE OF ENACTMENT.—
Of the receipts from mineral and grazing leases, li-
censes, and permits on Project lands to be conveyed
under section 3 that are received by the United
States after the date of enactment of this Act and
before the date of conveyance, up to $200,000 shall
be applied to pay the cost referred to in section
3(c)(3) and the remainder shall be deposited into the
general fund of the Treasury of the United States
and credited to deficit reduction or retirement of the
Federal debt.
SEC. 7. WATER CONSERVATION PRACTICES.
Nothing in this Act shall be construed to limit the
ability of the District to voluntarily implement water con-
servation practices.
SEC. 8. LIABILITY.
Except as otherwise provided by law, effective on the
date of conveyance of the Project under this Act, the
United States shall not be liable for damages of any kind
arising out of any act, omission, or occurrence based on
its prior ownership or operation of the conveyed property.
SEC. 9. FUTURE RECLAMATION BENEFITS.
After completion of the conveyance under this Act,
the District shall not be eligible for any emergency loan
from the Bureau of Reclamation for maintenance or re-
placement of any facility conveyed under this Act.