96 acres, as generally depicted on a map entitled
‘‘Lake Gulch Selected Lands’’, dated July 1994; and
(C) certain unsurveyed lands located in Gilpin
County, Colorado, Township 3 South, Range 73 West,
Sixth Principal Meridian, Section 13, which com-
prise approximately 11 acres, and are generally de-
picted as parcels 302–304, 306 and 308–326 on a
map entitled ‘‘Lake Gulch Selected Lands’’, dated
July 1994: Provided, however, That a parcel or par-
cels of land in section 13 shall not be transferred to
Lake Gulch if at the time of the proposed transfer the
parcel or parcels are under formal application for
transfer to a qualified unit of local government. Due
to the small and unsurveyed nature of such parcels
proposed for transfer to Lake Gulch in section 13,
and the high cost of surveying such small parcels, the
Secretary is authorized to transfer such section 13
lands to Lake Gulch without survey based on such
legal or other description as the Secretary determines
appropriate to carry out the basic intent of the map
cited in this subparagraph.
(2) If the Secretary and Lake Gulch mutually agree,
and the Secretary determines it is in the public interest,
the Secretary may utilize the authority and direction of this
Act to transfer to Lake Gulch lands in sections 17 and 13
that are in addition to those precise selected lands shown
on the map cited herein, and which are not under formal
application for transfer to a qualified unit of local govern-
ment, upon transfer to the Secretary of additional offered
lands acceptable to the Secretary or upon payment to the
Secretary by Lake Gulch of cash equalization money
amounting to the full appraised fair market value of any
such additional lands. If any such additional lands are lo-
cated in section 13 they may be transferred to Lake Gulch
without survey based on such legal or other description as
the Secretary determines appropriate as long as the Sec-
retary determines that the boundaries of any adjacent lands
not owned by Lake Gulch can be properly identified so as
to avoid possible future boundary conflicts or disputes. If
the Secretary determines surveys are necessary to convey
any such additional lands to Lake Gulch, the costs of such
surveys shall be paid by Lake Gulch but shall not be eligible
for any adjustment in the value of such additional lands
pursuant to section 206(f)(2) of the Federal Land Policy
and Management Act of 1976 (as amended by the Federal
Land Exchange Facilitation Act of 1988) (43 U.S.C.
1716(f)(2)).
(3) Prior to transferring out of public ownership pur-
suant to this Act or other authority of law any lands which
are contiguous to North Clear Creek southeast of the City
of Black Hawk, Colorado in the County of Gilpin, Colorado,
the Secretary shall notify and consult with the County and
City and afford such units of local government an oppor-
tunity to acquire or reserve pursuant to the Federal Land
Policy and Management Act of 1976 or other applicable
law, such easements or rights-of-way parallel to North Clear
Creek as may be necessary to serve public utility line or
recreation path needs: Provided, however, That any survey
or other costs associated with the acquisition or reservation
of such easements or rights-of-way shall be paid for by the
unit or units of local government concerned.
SEC. 3. TERMS AND CONDITIONS OF EXCHANGE.
(a) EQUALIZATION OF VALUES.—(1) The values of the
lands to be exchanged pursuant to this Act shall be equal
as determined by the Secretary of the Interior utilizing
comparable sales of surface and subsurface property and
nationally recognized appraisal standards, including, to the
extent appropriate, the Uniform Standards for Federal
Land Acquisition, the Uniform Standards of Professional
Appraisal Practice, the provisions of section 206(d) of the
Federal Land Policy and Management Act of 1976 (43
U.S.C. 1716(d)), and other applicable law.
(2) In the event any cash equalization or land sale
moneys are received by the United States pursuant to this
Act, any such moneys shall be retained by the Secretary
of the Interior and may be utilized by the Secretary until
fully expended to purchase from willing sellers land or
water rights, or a combination thereof, to augment wildlife
habitat and protect and restore wetlands in the Bureau of
Land Management’s Blanca Wetlands, Alamosa County,
Colorado.
(3) Any water rights acquired by the United States
pursuant to this section shall be obtained by the Secretary
of the Interior in accordance with all applicable provisions
of Colorado law, including the requirement to change the
time, place, and type of use of said water rights through
the appropriate State legal proceedings and to comply with
any terms, conditions, or other provisions contained in an
applicable decree of the Colorado Water Court. The use of
any water rights acquired pursuant to this section shall be
limited to water that can be used or exchanged for water
that can be used on the Blanca Wetlands. Any requirement
or proposal to utilize facilities of the San Luis Valley
Project, Closed Basin Diversion, in order to effectuate the
use of any such water rights shall be subject to prior ap-
proval of the Rio Grande Water Conservation District.
(b) RESTRICTIONS ON SELECTED LANDS.—(1) Con-
veyance of the selected lands to Lake Gulch pursuant to this
Act shall be contingent upon Lake Gulch executing an
agreement with the United States prior to such conveyance,
the terms of which are acceptable to the Secretary of the
Interior, and which—
(A) grant the United States a covenant that none
of the selected lands (which currently lie outside the
legally approved gaming area) shall ever be used for
purposes of gaming should the current legal gaming
area ever be expanded by the State of Colorado; and
(B) permanently hold the United States harmless
for liability and indemnify the United States against
all costs arising from any activities, operations (in-
cluding the storing, handling, and dumping of haz-
ardous materials or substances) or other acts con-
ducted by Lake Gulch or its employees, agents, succes-
sors or assigns on the selected lands after their trans-
fer to Lake Gulch: Provided, however, That nothing in
this Act shall be construed as either diminishing or
increasing any responsibility or liability of the
United States based on the condition of the selected
lands prior to or on the date of their transfer to Lake
Gulch.
(2) Conveyance of the selected lands to Lake Gulch
pursuant to this Act shall be subject to the existing easement
for Gilpin County Road 6.
(3) The above terms and restrictions of this subsection
shall not be considered in determining, or result in any
diminution in, the fair market value of the selected land
for purposes of the appraisals of the selected land required
pursuant to section 3 of this Act.
(c) REVOCATION OF WITHDRAWAL.—The Public Water
Reserve established by Executive order dated April 17, 1926
(Public Water Reserve 107), Serial Number Colorado
17321, is hereby revoked insofar as it affects the NW1⁄4
SW1⁄4 of Section 17, Township 3 South, Range 72 West,
Sixth Principal Meridian, which covers a portion of the se-
lected lands identified in this Act.
SEC. 4. MISCELLANEOUS PROVISIONS.
(a) DEFINITIONS.—As used in this Act:
(1) The term ‘‘Secretary’’ means the Secretary of
the Interior.
(2) The term ‘‘Lake Gulch’’ means Lake Gulch,
Inc., a Colorado corporation, or its successors, heirs
or assigns.
(3) The term ‘‘offered land’’ means lands to be
conveyed to the United States pursuant to this Act.
(4) The term ‘‘selected land’’ means lands to be
transferred to Lake Gulch, Inc., or its successors, heirs
or assigns pursuant to this Act.
(5) The term ‘‘Blanca Wetlands’’ means an area
of land comprising approximately 9,290 acres, as
generally depicted on a map entitled ‘‘Blanca Wet-
lands’’, dated August 1994, or such land as the Sec-
retary may add thereto by purchase from willing sell-
ers after the date of enactment of this Act utilizing
funds provided by this Act or such other moneys as
Congress may appropriate.
(b) TIME REQUIREMENT FOR COMPLETING TRANS-
FER.—It is the intent of Congress that unless the Secretary
and Lake Gulch mutually agree otherwise the exchange of
lands authorized and directed by this Act shall be completed
not later than 6 months after the date of enactment of this
Act. In the event the exchange cannot be consummated with-
in such 6-month-time period, the Secretary, upon applica-
tion by Lake Gulch, is directed to sell to Lake Gulch at
appraised fair market value any or all of the parcels (com-
prising a total of approximately 11 acres) identified in sec-
tion 2(d)(1)(C) of this Act as long as the parcel or parcels
applied for are not under formal application for transfer
to a qualified unit of local government.
(c) ADMINISTRATION OF LANDS ACQUIRED BY UNITED
STATES.—In accordance with the provisions of section
206(c) of the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1716(c)), all lands acquired by the United
States pursuant to this Act shall upon acceptance of title
by the United States and without further action by the Sec-
retary concerned become part of and be managed as part
of the administrative unit or area within which they are
located.