IIB
107TH CONGRESS
2D SESSION
H. R. 706
IN THE SENATE OF THE UNITED STATES
MARCH 20, 2002
Received; read twice and referred to the Committee on Energy and Natural
Resources
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 Representa-
tives of the United States of America in Congress assembled,
HR 706 RFS
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 Prop-
erties to the Lessees for fair market value would have the
beneficial results of—
(1) eliminating Federal payments in lieu of
taxes and associated 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 Properties 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 surrounding 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:
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(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 con-
structed by the Lessee of the property;
(B) by an appraisal in accordance with the
Uniform Standards for Federal Land Acquisi-
tions; and
(C) by an appraiser approved by the Sec-
retary and the purchaser.
(2) IRRIGATION DISTRICTS.—The term ‘‘Irriga-
tion Districts’’ means the Elephant Butte Irrigation
District and the El Paso County Water Improve-
ment District No. 1.
(3) LESSEE.—The term ‘‘Lessee’’ means the
leaseholder of a Property on the date of enactment
of this Act, and any 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 Bu-
reau of Reclamation that are located along the west-
ern portion of the reservoirs in Elephant Butte State
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Park and Caballo State Park, New Mexico, including
easements, 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 Elephant Butte/Caballo Leaseholders As-
sociation, Inc., a nonprofit corporation established
under the laws of New Mexico.
(7) 
RESERVOIRS.—The 
term 
‘‘reservoirs’’
means the Elephant 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 ex-
isting 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
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provided under the leases that apply to the Prop-
erties as of the date of the enactment of this Act.
(b) CONSIDERATION.—As consideration for any con-
veyance 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 mar-
ket 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 inci-
dent to the conveyance under section 6 shall be re-
imbursed by the Purchaser.
(b) RESTRICTIVE USE COVENANT.—
(1) IN
GENERAL.—To maintain the unique
character of the area in the vicinity of the Res-
ervoirs, the Secretary shall establish, by the terms of
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(ii) damages resulting from any modi-
fications 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 ac-
cordance with all applicable law.
(2) REPORT.—If the Secretary has not com-
pleted 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 convey-
ance 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 re-
quire each Lessee to reimburse the Purchaser for a pro-
portionate share of the costs incurred by the Purchaser
in completing the transactions pursuant to this Act, in-
cluding 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 Pur-
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chaser or any of its officers, directors, or members arising
from the Properties, the Lessee shall promptly give writ-
ten notice of the dispute or claim to the Purchaser. If such
notice is not provided to the Purchaser 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 1093), and Acts supplemental to and amend-
atory of that Act (43 U.S.C. 371 et seq.).
Passed the House of Representatives March 19,
2002.
Attest:
JEFF TRANDAHL,
Clerk.