II 
Calendar No. 606
107TH CONGRESS 
2D SESSION 
H. R. 706
[Report No. 107–287] 
IN THE SENATE OF THE UNITED STATES 
MARCH 20, 2002
Received; read twice and referred to the Committee on Energy and Natural 
Resources 
SEPTEMBER 17, 2002
Reported by Mr. BINGAMAN, without amendment 
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, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Lease Lot Conveyance 
Act of 2002’’. 
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HR 706 RS 
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: 
(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; 
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(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 
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. 
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(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
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. 
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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 
conveyance, use restrictions to carry out paragraph 
(2) that—
(A) are appurtenant to, and run with, each 
Property; and 
(B) are binding upon each subsequent 
owner of each Property. 
(2) ACCESS TO RESERVOIRS.—The use restric-
tions required by paragraph (1) shall ensure that—
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(A) public access to and along the shore-
line of the Reservoirs in existence on the date 
of enactment of this Act is not obstructed; 
(B) adequate public access to and along 
the shoreline of the Reservoirs is maintained; 
and 
(C) the operation of the Reservoirs by the 
Secretary or the Irrigation Districts shall not 
result in liability of the United States or the Ir-
rigation Districts for damages incurred, as a di-
rect or indirect result of such operation, by the 
owner of any Property conveyed under this Act, 
including—
(i) damages for any loss of use or en-
joyment of a Property; and 
(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 
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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-
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. 
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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. 
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Calendar No. 606
107TH CONGRESS 
2D SESSION 
H. R. 706
[Report No. 107–287] 
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. 
SEPTEMBER 17, 2002
Reported without amendment 
VerDate Sep 04 2002 
03:51 Sep 18, 2002
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